BILL REQ. #: S-0162.3
State of Washington | 60th Legislature | 2007 Regular Session |
Read first time 01/08/2007. Referred to Committee on Ways & Means.
AN ACT Relating to a rainy day reserve fund; reenacting and amending RCW 43.84.092 and 43.135.045; adding a new section to chapter 43.79 RCW; adding a new section to chapter 82.33 RCW; creating a new section; repealing RCW 43.33A.220 and 43.135.051; and providing a contingent effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 43.79 RCW
to read as follows:
(1) A rainy day reserve fund shall be established and maintained in
the state treasury pursuant to Article VII, section . . . (2007 Senate
Joint Resolution No. . . . ., S-0163/07).
(2) The state investment board has the full power to invest,
reinvest, manage, contract, sell, or exchange investment moneys in the
rainy day reserve fund. All investment and operating costs associated
with the investment of money shall be paid pursuant to RCW 43.33A.160
and 43.84.160. With the exception of these expenses, the earnings from
the investment of the money shall be deposited into the education
legacy trust account, but only to the extent that the investment
earnings exceed any investment losses experienced by the rainy day
reserve fund in previous fiscal periods. All investments made by the
state investment board shall be made with the exercise of that degree
of judgment and care pursuant to RCW 43.33A.140 and the investment
policies established by the state investment board. As deemed
appropriate by the state investment board, moneys in the fund may be
commingled for investment with other funds subject to investment by the
board.
(3) When the balance in the rainy day reserve fund equals more than
ten percent of the estimated general state revenues in the prior fiscal
year, the legislature may, at any time for any fiscal year, by the
favorable of a majority of the members elected to each house, withdraw
and appropriate amounts in the fund to the extent that the balance of
the fund exceeds ten percent. If, as determined by the state actuary,
unfunded liabilities exist in state retirement systems administered by
the department of retirement systems, such appropriations may be made
solely for the purpose of funding the liabilities.
NEW SECTION. Sec. 2 A new section is added to chapter 82.33 RCW
to read as follows:
The economic and revenue forecast council shall perform the state
employment growth and general state revenue forecasts and estimates
required by Article VII, section . . . (2007 Senate Joint Resolution
No. . . . ., S-0163/07).
Sec. 3 RCW 43.84.092 and 2006 c 337 s 11, 2006 c 311 s 23, 2006
c 171 s 10, 2006 c 56 s 10, and 2006 c 6 s 8 are each reenacted and
amended to read as follows:
(1) All earnings of investments of surplus balances in the state
treasury shall be deposited to the treasury income account, which
account is hereby established in the state treasury.
(2) The treasury income account shall be utilized to pay or receive
funds associated with federal programs as required by the federal cash
management improvement act of 1990. The treasury income account is
subject in all respects to chapter 43.88 RCW, but no appropriation is
required for refunds or allocations of interest earnings required by
the cash management improvement act. Refunds of interest to the
federal treasury required under the cash management improvement act
fall under RCW 43.88.180 and shall not require appropriation. The
office of financial management shall determine the amounts due to or
from the federal government pursuant to the cash management improvement
act. The office of financial management may direct transfers of funds
between accounts as deemed necessary to implement the provisions of the
cash management improvement act, and this subsection. Refunds or
allocations shall occur prior to the distributions of earnings set
forth in subsection (4) of this section.
(3) Except for the provisions of RCW 43.84.160, the treasury income
account may be utilized for the payment of purchased banking services
on behalf of treasury funds including, but not limited to, depository,
safekeeping, and disbursement functions for the state treasury and
affected state agencies. The treasury income account is subject in all
respects to chapter 43.88 RCW, but no appropriation is required for
payments to financial institutions. Payments shall occur prior to
distribution of earnings set forth in subsection (4) of this section.
(4) Monthly, the state treasurer shall distribute the earnings
credited to the treasury income account. The state treasurer shall
credit the general fund with all the earnings credited to the treasury
income account except:
(a) The following accounts and funds shall receive their
proportionate share of earnings based upon each account's and fund's
average daily balance for the period: The capitol building
construction account, the Cedar River channel construction and
operation account, the Central Washington University capital projects
account, the charitable, educational, penal and reformatory
institutions account, the Columbia river basin water supply development
account, the common school construction fund, the county criminal
justice assistance account, the county sales and use tax equalization
account, the data processing building construction account, the
deferred compensation administrative account, the deferred compensation
principal account, the department of retirement systems expense
account, the developmental disabilities community trust account, the
drinking water assistance account, the drinking water assistance
administrative account, the drinking water assistance repayment
account, the Eastern Washington University capital projects account,
the education construction fund, the education legacy trust account,
the election account, ((the emergency reserve fund,)) the energy
freedom account, The Evergreen State College capital projects account,
the federal forest revolving account, the freight mobility investment
account, the freight mobility multimodal account, the health services
account, the public health services account, the health system capacity
account, the personal health services account, the state higher
education construction account, the higher education construction
account, the highway infrastructure account, the high-occupancy toll
lanes operations account, the industrial insurance premium refund
account, the judges' retirement account, the judicial retirement
administrative account, the judicial retirement principal account, the
local leasehold excise tax account, the local real estate excise tax
account, the local sales and use tax account, the medical aid account,
the mobile home park relocation fund, the multimodal transportation
account, the municipal criminal justice assistance account, the
municipal sales and use tax equalization account, the natural resources
deposit account, the oyster reserve land account, the pension funding
stabilization account, the perpetual surveillance and maintenance
account, the public employees' retirement system plan 1 account, the
public employees' retirement system combined plan 2 and plan 3 account,
the public facilities construction loan revolving account beginning
July 1, 2004, the public health supplemental account, the public works
assistance account, the Puyallup tribal settlement account, the rainy
day reserve fund, the real estate appraiser commission account, the
regional mobility grant program account, the resource management cost
account, the rural Washington loan fund, the site closure account, the
small city pavement and sidewalk account, the special wildlife account,
the state employees' insurance account, the state employees' insurance
reserve account, the state investment board expense account, the state
investment board commingled trust fund accounts, the supplemental
pension account, the Tacoma Narrows toll bridge account, the teachers'
retirement system plan 1 account, the teachers' retirement system
combined plan 2 and plan 3 account, the tobacco prevention and control
account, the tobacco settlement account, the transportation
infrastructure account, the transportation partnership account, the
tuition recovery trust fund, the University of Washington bond
retirement fund, the University of Washington building account, the
volunteer fire fighters' and reserve officers' relief and pension
principal fund, the volunteer fire fighters' and reserve officers'
administrative fund, the Washington fruit express account, the
Washington judicial retirement system account, the Washington law
enforcement officers' and fire fighters' system plan 1 retirement
account, the Washington law enforcement officers' and fire fighters'
system plan 2 retirement account, the Washington public safety
employees' plan 2 retirement account, the Washington school employees'
retirement system combined plan 2 and 3 account, the Washington state
health insurance pool account, the Washington state patrol retirement
account, the Washington State University building account, the
Washington State University bond retirement fund, the water pollution
control revolving fund, and the Western Washington University capital
projects account. Earnings derived from investing balances of the
agricultural permanent fund, the normal school permanent fund, the
permanent common school fund, the scientific permanent fund, and the
state university permanent fund shall be allocated to their respective
beneficiary accounts. All earnings to be distributed under this
subsection (4)(a) shall first be reduced by the allocation to the state
treasurer's service fund pursuant to RCW 43.08.190.
(b) The following accounts and funds shall receive eighty percent
of their proportionate share of earnings based upon each account's or
fund's average daily balance for the period: The aeronautics account,
the aircraft search and rescue account, the county arterial
preservation account, the department of licensing services account, the
essential rail assistance account, the ferry bond retirement fund, the
grade crossing protective fund, the high capacity transportation
account, the highway bond retirement fund, the highway safety account,
the motor vehicle fund, the motorcycle safety education account, the
pilotage account, the public transportation systems account, the Puget
Sound capital construction account, the Puget Sound ferry operations
account, the recreational vehicle account, the rural arterial trust
account, the safety and education account, the special category C
account, the state patrol highway account, the transportation 2003
account (nickel account), the transportation equipment fund, the
transportation fund, the transportation improvement account, the
transportation improvement board bond retirement account, and the urban
arterial trust account.
(5) In conformance with Article II, section 37 of the state
Constitution, no treasury accounts or funds shall be allocated earnings
without the specific affirmative directive of this section.
Sec. 4 RCW 43.135.045 and 2005 c 518 s 931, 2005 c 314 s 401, and
205 c 72 s 6 are each reenacted and amended to read as follows:
(1) ((The emergency reserve fund is established in the state
treasury. During each fiscal year, the state treasurer shall transfer
an amount from the state general fund to the emergency reserve fund.
The amount transferred shall equal the amount by which total state
revenue for the general fund and related funds exceeds the state
expenditure limit, multiplied by the percentage that general fund
expenditures are of total expenditures from the general fund and
related funds. Transfers shall be made at the end of each fiscal
quarter based on projections of state revenues, expenditures, and the
state expenditure limit. The treasurer shall make transfers between
these accounts as necessary to reconcile actual annual revenues and the
expenditure limit for fiscal year 2000 and thereafter.)) The student achievement fund is
hereby created in the state treasury ((
(2) The legislature may appropriate moneys from the emergency
reserve fund only with approval of at least two-thirds of the members
of each house of the legislature, and then only if the appropriation
does not cause total expenditures to exceed the state expenditure limit
under this chapter.
(3) The emergency reserve fund balance shall not exceed five
percent of annual general fund -- state revenues as projected by the
official state revenue forecast. Any balance in excess of five percent
shall be transferred on a quarterly basis by the state treasurer as
follows: Seventy-five percent toand twenty-five percent to the
general fund balance. The treasurer shall make transfers between these
accounts as necessary to reconcile actual annual revenues for fiscal
year 2000 and thereafter. When per-student state funding for the
maintenance and operation of K-12 education meets a level of no less
than ninety percent of the national average of total funding from all
sources per student as determined by the most recent published data
from the national center for education statistics of the United States
department of education, as calculated by the office of financial
management, further deposits to the student achievement fund shall be
required only to the extent necessary to maintain the ninety-percent
level. Remaining funds are part of the general fund balance and these
funds are subject to the expenditure limits of this chapter)).
(((4))) (2) The education construction fund is hereby created in
the state treasury.
(a) Funds may be appropriated from the education construction fund
exclusively for common school construction or higher education
construction.
(b) Funds may be appropriated for any other purpose only if
approved by a two-thirds vote of each house of the legislature and if
approved by a vote of the people at the next general election. An
appropriation approved by the people under this subsection shall result
in an adjustment to the state expenditure limit only for the fiscal
period for which the appropriation is made and shall not affect any
subsequent fiscal period.
(((5))) (3) Funds from the student achievement fund shall be
appropriated to the superintendent of public instruction strictly for
distribution to school districts to meet the provisions set out in the
student achievement act. Allocations shall be made on an equal per
full-time equivalent student basis to each school district.
NEW SECTION. Sec. 5 On the effective date of this section, all
money remaining in the emergency reserve fund shall be transferred to
the rainy day reserve fund.
NEW SECTION. Sec. 6 The following acts or parts of acts are each
repealed:
(1) RCW 43.33A.220 (Emergency reserve fund -- Board's duties) and
1999 c 288 s 2; and
(2) RCW 43.135.051 (Emergency reserve fund -- State investment board
authority to invest or manage) and 1999 c 288 s 1.
NEW SECTION. Sec. 7 This act takes effect June 1, 2008, if the
proposed amendment to Article VII of the state Constitution (2007
Senate Joint Resolution No. . . . ., S-0163/07) is validly submitted to
and is approved and ratified by the voters at a general election held
in November 2007. If the proposed amendment is not approved and
ratified, this act is void in its entirety.