WSR 98-21-062

PROPOSED RULES

OFFICE OF THE

STATE TREASURER

[Filed October 20, 1998, 11:09 a.m.]

Original Notice.

Exempt from preproposal statement of inquiry under RCW 34.05.310(4).

Title of Rule: Chapter 210-01 WAC, Local government investment pool (LGIP).

Purpose: To revise the procedures to be followed by participants in the LGIP when making a deposit or a withdrawal and to correct a typographical error.

Statutory Authority for Adoption: RCW 43.250.090.

Statute Being Implemented: Chapter 43.250 RCW.

Summary: Amendment of rules to conform to contemporary practices and to correct a typographical error.

Reasons Supporting Proposal: Makes rules consistent with modern practices and corrects a typographical error.

Name of Agency Personnel Responsible for Drafting: Cristin E. Wilson, P.O. Box 40200, (360) 902-9010; Implementation and Enforcement: Douglas D. Extine, P.O. Box 40200, (360) 902-9012.

Name of Proponent: Washington State Treasurer, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: The rules govern the operation of the local government investment pool (LGIP). The rules specify who can participate in this public funds investment account and sets forth the reporting requirements and operational procedures. The rules give direction to LGIP members and allows the state treasurer to maintain the viability and success of the LGIP's investment program.

Proposal Changes the Following Existing Rules: The changes harmonize the existing rules with adopted operating practices which extend the cutoff time for making same-day deposits and withdrawals.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed rule does not regulate or have an economic impact on any small business. The rule impacts only participants of the LGIP.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The agency does not elect to have section 201, chapter 403, Laws of 1995, apply to this rule adoption.

Hearing Location: Office of the State Treasurer, 416 14th Avenue S.W., Second Floor, Room 240, Olympia, WA 98504, on November 25, 1998, at 1 p.m.

Assistance for Persons with Disabilities: Contact Cristin Wilson by November 18, 1998, TDD (360) 902-8963, or (360) 902-9010.

Submit Written Comments to: Fax (360) 902-9044, by November 18, 1998.

Date of Intended Adoption: November 26, 1998.

October 12, 1998

Douglas D. Extine

Deputy Treasurer

OTS-2591.1

AMENDATORY SECTION (Amending WSR 96-18-029, filed 8/28/96, effective 9/28/96)

WAC 210-01-020  Definitions. Unless the context requires otherwise:

(1) "Local government investment pool" or "pool" means the aggregate of all funds from political subdivisions that are placed in the custody of the state treasurer for investment and reinvestment.

(2) "Pool participant" means any county, city, town, municipal corporation, political subdivision, community and technical college district, the state board for community and technical colleges, or other entities in this state as may be designated by statute.

(3) "Local government official" means any officer or employee of a political subdivision who has been designated by statute or by local charter, ordinance, or resolution as the officer having the authority to invest the funds of the political subdivision.

(4) "Financial officer" means the board-appointed treasurer of a community or technical college district or the state board for community and technical colleges.

(5) "Funds" means public funds under the control of or in the custody of any local government official or local funds, as defined by the ((official)) office of financial management publication "Policies, Regulations and Procedures," under the control of or in the custody of a financial officer by virtue of the official's or financial officer's authority that are not immediately required to meet current demands.

(6) "Financial institution" means a ((qualified)) public depositary as defined in RCW 39.58.010.

[Statutory Authority: RCW 43.250.090, 43.250.010, [43.250].020 and [43.250].040. 96-18-029, § 210-01-020, filed 8/28/96, effective 9/28/96. Statutory Authority: 1986 c 294. 86-14-002 (Resolution No. 639), § 210-01-020, filed 6/19/86.]

AMENDATORY SECTION (Amending Resolution No. 639, filed 6/19/86)

WAC 210-01-080  Deposit procedures. A pool participant, to receive same day credit, must inform the ((state treasurer's office of a deposit by 9:00 a.m. of the day the deposit is to be made)) office of the state treasurer of any deposit over one million dollars no later than 9 a.m. on the same day the deposit is made. Deposits for one million dollars or less can be requested at any time prior to 10 a.m. on the day of deposit. All deposits will be made by electronic funds transfer to an account designated by the state treasurer. It is the responsibility of each pool participant to pay any bank charges associated with such electronic transfers to the office of the state treasurer. Failure to wire funds by a pool participant (after notification to the state treasurer of an intended transfer) will result in a bank overdraft in the state treasurer's bank account. Bank penalties for overdrafts will be assessed to those pool participants responsible for the overdraft.

[Statutory Authority: 1986 c 294. 86-14-002 (Resolution No. 639), § 210-01-080, filed 6/19/86.]

AMENDATORY SECTION (Amending Resolution No. 639, filed 6/19/86)

WAC 210-01-090  Withdrawal procedures. A pool participant, in order to withdraw funds from the pool, must notify the ((state treasurer by 9:00 a.m. of the day on which the withdrawal will take place)) office of state treasurer of any withdrawal over one million dollars no later than 9 a.m. on the same day the withdrawal is made. Withdrawals for one million dollars or less can be requested at any time prior to 10 a.m. on the day of withdrawal. Each local government entity participating in the pool shall file with the state treasurer a letter designating the financial institution at which funds withdrawn from the pool shall be deposited. This letter shall contain the name of the financial institution, location of the financial institution, account number to which funds will be deposited and account name. This letter shall be signed by local officials authorized to receive and disburse funds, as described in WAC 210-01-030. Disbursements from the pool will be by electronic funds transfer. Failure of the state treasurer to wire funds to a pool participant (after proper notification to the state treasurer to disburse funds to a pool participant) may result in a bank overdraft in the pool participant's bank account. The state treasurer will reimburse pool participants for such bank overdraft penalties charged to the pool participant's bank account.

[Statutory Authority: 1986 c 294. 86-14-002 (Resolution No. 639), § 210-01-090, filed 6/19/86.]