Senate Bill Report SB 5995
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2020-01-28
- Case
- 2020 01 28 A26427 D211082 Bill Report 5995 Sba Fiet 20
Summary
A Senate Bill Report on SB 5995, an act relating to establishing the Washington investment trust, prepared by non-partisan staff of the Senate Committee on Financial Institutions, Economic Development & Trade, as of January 27, 2020. The bill is sponsored by Senators Hasegawa, Das, Nguyen and others, with committee activity on January 28, 2020. The report summarizes a proposed substitute that would create the Washington Investment Trust as a depository for state monies and federal transportation funds, governed by a commission of five statewide elected officials, with a Trust Transition Board and an 11-member Investment Trust Advisory Board. It states that the commission must present an implementation plan by November 1, 2020, and that deposits would be guaranteed by the state. The three-page report notes a fiscal note requested on January 23, 2020 and an emergency clause.
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Full text
SENATE BILL REPORT
SB 5995
As of January 27, 2020
Title: An act relating to establishing the Washington investment trust.
Brief Description: Establishing the Washington investment trust.
Sponsors: Senators Hasegawa, Das, Nguyen, Van De Wege, Keiser, Conway, Saldaña, Billig,
Darneille, Takko, Liias and Hunt.
Brief History:
Committee Activity: Financial Institutions, Economic Development & Trade: 1/28/20.
Brief Summary of Bill
Establishes the Washington Investment Trust (Trust) to serve as a
depositary for public funds including state funds and federal transportation
funds.
Authorizes the Trust to invest state funds to facilitate financing and
construction of public infrastructure.
SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, ECONOMIC
DEVELOPMENT & TRADE
Staff: Clint McCarthy (786-7319)
Background: The state treasurer (treasurer) is responsible for the management of state funds
including managing cash flows for state funds, issuing and managing state debt, and
producing a detailed annual report on the condition of the State Treasury (Treasury). The
Department of Financial Institutions (DFI) is the agency responsible for monitoring and
regulating financial institutions, including banks, in Washington.
Summary of Bill: The bill as referred to committee not considered.
Summary of Bill (Proposed Substitute): The Trust is created to serve as a depository for
state monies and federal transportation funds and is authorized to manage and invest state
monies in order to facilitate financing and construction of new and existing public
infrastructure systems.
––––––––––––––––––––––
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.
Senate Bill Report -1- SB 5995
The Washington Investment Trust Commission (Commission) is established as the primary
governing authority of the Trust. The Commission is comprised of five statewide elected
officials including the Governor, the lieutenant governor, the attorney general, the treasurer,
and the state auditor. The Commission must begin operations by July 1, 2018, and may
adopt rules regarding the standards and transparency requirements of the Trust. The
Commission may delegate duties and powers necessary to implement the Trust's business to
the Trust president. The Commission may also establish technical and advisory committees
and consult with private sector experts as needed.
The Trust Transition Board (Transition Board) is established and is comprised of two
representatives and two senators, one from each major caucus of the House of
Representatives and the Senate, and seven citizen members. The citizen members are
appointed by the president of the Senate and the speaker of the House, with one of the citizen
members appointed as chair of the Transition Board. The Transition Board shall develop and
make recommendations to the Commission regarding a start-up business plan for the Trust.
The start-up plan must include plans and timelines for functions that are new and functions
transitioning to the Trust that were previously performed by another entity, initial capital
requirements of the Trust, and options for capitalizing the Trust.
The treasurer and local government agencies must deposit state monies and federal
transportation funds into the Trust in accordance with the timeframe and guidelines
determined by the Commission. The Commission must review state accounts that are not
part of the Treasury and make recommendations to the Governor and the Legislature as to
which accounts should be deposited in the Trust. The Trust may accept deposits from any
public source, including federal funds.
All deposits in the Trust are guaranteed by the state rather than insured by the FDI.
Administrative and strategic planning expenses of the Trust are funded from its earnings,
subject to legislative authorization. The Trust must deposit, in the general fund, interest
earnings that exceed required distributions and those necessary for the continued sound
operation of the Trust. The Trust is exempt from the requirements of the Public Deposit
Protection Commission.
The Commission and the Treasurer must jointly determine the amount of funds necessary to
meet the operational needs of state government. The Treasurer retains authority to manage
and invest the amount of funds necessary to meet the operational needs of state government.
The Trust is authorized to manage and invest state monies in order to facilitate financing of
new and existing public infrastructure systems. By November 1, 2020, the Commission must
present an implementation plan and any necessary legislation to the Governor and legislative
committees that:
identify any existing accounts in the Treasury associated with state infrastructure
programs that the Trust recommends be transferred under its umbrella;
describes additional infrastructure funding that the trust recommends; and
demonstrates how the Trust plans to maximize revenues and public benefit.
Senate Bill Report -2- SB 5995
The Trust must maintain capital adequacy and other standard indicators of safety and
soundness monitored by the DFI. The director of DFI must examine the Trust, and the state
auditor must conduct an annual audit of the Trust's accounts and financial transactions. The
Trust must submit quarterly reports to the Commission. By December 1st of each year, the
Commission must make an annual report to the Legislature on the affairs of the Trust.
An Investment Trust Advisory Board (Board) is created consisting of 11 members to review
the Trust's operations and make recommendations regarding trust management and policies.
The Governor shall appoint members with experience in trust activities, with at least six
members with experience in finance. Members serve a three-year term at the pleasure of the
Governor.
The financial and commercial information supplied by businesses or individuals during
application for loans or program services and examination reports and information obtained
by DFI from the Trust are exempt from public disclosure. The Trust may not make a loan to
a board member, the president, or employees. The Trust is exempt from all fees and taxes
levied by the state or its subdivisions.
Appropriation: None.
Fiscal Note: Requested on January 23, 2020.
Creates Committee/Commission/Task Force that includes Legislative members: Yes.
Effective Date: The bill contains an emergency clause and takes effect immediately.
Senate Bill Report -3- SB 5995
File and source
- File
- 2020-01-28_a26427_d211082_bill-report-5995-sba-fiet-20.pdf
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- 90,557 bytes
- SHA-256
- 409a861856b426867b75a4875145b703593390b1c4f423656d81f96ca5dc310c
- Original
- app.leg.wa.gov