HOUSE BILL REPORT

SB 5159

As Reported by House Committee On:

Higher Education

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 Senators Winsley, Gardner, Kohl‑Welles, Horn, Prentice and Carlson.

Brief History:

Committee Activity:

Higher Education:  3/21/01, 3/23/01 [DP].

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 8 members: Representatives Cox, Republican Co‑Chair; Kenney, Democratic Co‑Chair; Gombosky, Democratic Vice Chair; Jarrett, Republican Vice Chair; Dunn, Fromhold, Lantz and Skinner.

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:  Available.

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

Testimony For:  This bill allows the four-year institutions to take advantage of the local investment pool to maximize returns on cash flow.  This same opportunity is afforded to other public entities.  Even a small amount of money can make a big difference over 30 days in interest earned.  It makes our public money stretch a bit further.

Testimony Against:  None.

Testified:  Senator Winsley, prime sponsor; and Terry Teale, Council of Presidents.