SSB 5085

SENATE BILL REPORT
SSB 5085

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Amended by House, April 19, 2007

Title: An act relating to increasing the proportionate share of earnings from surplus balance investments that are deposited in transportation-related accounts.

Brief Description: Providing that transportation accounts receive one hundred percent of their proportionate share of earnings.

Sponsors: Senate Committee on Transportation (originally sponsored by Senators Haugen, Swecker and Murray).

Majority Report: That Substitute Senate Bill No. 5085 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.Signed by Senators Haugen, Chair; Marr, Vice Chair; Murray, Vice Chair; Swecker, Ranking Minority Member; Benton, Berkey, Clements, Delvin, Eide, Holmquist, Jacobsen, Kastama, Kauffman, Kilmer, Pflug, Sheldon and Spanel.

Majority Report: That Substitute Senate Bill No. 5085 as recommended by Committee on Transportation be substituted therefor, and the substitute bill do pass.Signed by Senators Prentice, Chair; Fraser, Vice Chair, Capital Budget Chair; Pridemore, Vice Chair, Operating Budget; Zarelli, Ranking Minority Member; Brandland, Carrell, Fairley, Hatfield, Hewitt, Hobbs, Honeyford, Keiser, Kohl-Welles, Oemig, Parlette, Rasmussen, Regala, Roach, Rockefeller, Schoesler and Tom.

Background: Accounts established in the State Treasury earn interest income based on the average daily balance of the account. Some accounts retain one hundred percent of the interest income they generate and are subject to the State Treasurer's service fee. The State Treasurer's service fee is established by the State Treasurer and allocated uniformly across all subject accounts. Revenue generated by the State Treasurer's service fee funds the operation and administration of the State Treasurer's office. Historically, revenue generated by the State Treasurer's service fee in excess of the amounts necessary to fund the State Treasury's operating costs have been transferred to the General Fund. Certain other accounts retain eighty percent of the interest income they generate with the remaining twenty percent being credited to the state General Fund.

Summary of Substitute Bill: Transportation accounts that currently retain only 80 percent of the interest income they generate will instead retain 100 percent of the interest income they generate and will be subject to the State Treasurer's service fee.

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

House Amendment(s): The effective date of the bill was changed to July 1, 2009.