H-1505              _______________________________________________

                                                   HOUSE BILL NO. 1071

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Cole, Beck, H. Sommers, Taylor, Appelwick, Nealey, Haugen, Chandler and P. King

Read first time 2/23/87 and referred to Committee on Education.

AN ACT Relating to investment of school district funds; and amending RCW 28A.58.440.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 28A.58.440, chapter 223, Laws of 1969 ex. sess. as amended by section 1, chapter 66, Laws of 1983 and RCW 28A.58.440 are each amended to read as follows:

          The county treasurer, or the trustee, guardian, or any other custodian of any school fund, when authorized to do so by the board of directors of any school district, shall invest or reinvest any school funds of such district in investment deposits in any qualified public depositary, or any obligations, securities, certificates, notes, bonds, or short term securities or obligations, of the United States.  The county treasurer shall have the power to select the particular investment in which said funds may be invested.  All earnings and income from such investments shall inure to the benefit of any school fund designated by the board of directors of the school district which such board may lawfully designate:  PROVIDED, That any interest or earnings being credited to a fund different from that which earned the interest or earnings shall only be expended for instructional supplies, equipment or capital outlay purposes:  PROVIDED FURTHER, That moneys earned from the investment of bond interest and redemption funds shall not inure to the benefit of any other school fund.  This section shall apply to all funds which may be lawfully so invested or reinvested which in the judgment of the school board are not required for the immediate necessities of the district.

          Five percent of the interest or earnings, with an annual minimum of ten dollars or annual maximum of fifty dollars, on any transactions authorized by each resolution of the board of school directors shall be paid as an investment service fee to the office of county treasurer when the interest or earnings becomes available to the school district.