HOUSE BILL REPORT

HB 1623

As Passed Legislature

Title:  An act relating to investments of surplus funds by four‑year institutions of higher education.

Brief Description:  Authorizing four‑year public institutions of higher education to participate with the state in investing surplus funds.

Sponsors:  By Representatives Kenney, Cox, Skinner, Benson, Gombosky, Rockefeller, Edwards and Mulliken.

Brief History:

Committee Activity:

Higher Education:  2/12/01, 2/19/01 [DP].

Floor Activity:

Passed House: 3/9/01, 98-0.

Passed Senate: 4/4/01, 48-0.

Passed Legislature.

Brief Summary of Bill

$Allows the public four-year institutions of higher education to participate in the investment of surplus funds.

HOUSE COMMITTEE ON HIGHER EDUCATION

Majority Report:  Do pass. Signed by 6 members: Representatives Cox, Republican Co‑Chair; Kenney, Democratic Co‑Chair; Gombosky, Democratic Vice Chair; Jarrett, Republican Vice Chair; Fromhold and Lantz.

Staff:  Marsha Reilly (786‑7135).

Background:

Political subdivisions, community and technical college districts, and the State Board for Community and Technical Colleges may participate with the state in providing maximum opportunities for the investment of surplus public funds.  These entities may utilize the resources of the State Treasurer=s office to maximize the potential of surplus funds.

Summary of Bill:

The public four-year institutions of higher education are added to the list of organizations eligible to invest surplus funds and utilize the resources of the State Treasurer=s office for this purpose.  A definition for "financial officer" is added.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Allowing public four-year institutions of higher education to invest surplus funds with the State Treasurer will allow for fiscal growth and may alleviate some budget problems.  To date, investments made through this route have performed well.

Testimony Against:  None.

Testified:  Ann Daley, The Evergreen State College and Council of President; and Doug Extine, Office of the State Treasurer.