The proposed legislation seeks to establish a Washington State Public Bank aimed at enhancing public financing capabilities without increasing taxes or state debt. It highlights the limitations of current financing models that rely on bonding, which diverts taxpayer revenues from essential programs. Drawing inspiration from the Bank of North Dakota, the bill proposes a state-owned depository bank that can leverage existing funds to boost financing for infrastructure projects, benefiting local economies and reducing dependence on private financial institutions. Key provisions include the establishment of the bank as a public body corporate, the creation of an operating board, and the requirement for the state treasurer to transfer state funds into the bank.

The bill outlines the governance structure and powers of the public bank, including the ability to sue, adopt bylaws, and enter contracts. It specifies that bonds issued by the bank will not create state debt and will be obligations solely of the bank. Additionally, it allows the public bank to charge for its services related to loan proposals and modifies terms related to bonds and loans. The legislation also expands investment options for local governments in bonds issued by the public bank and ensures the confidentiality of sensitive financial information. Amendments to existing laws clarify the confidentiality of documents related to insurance and health care, while a severability clause ensures the act's provisions remain effective even if parts are found invalid.

Statutes affected:
Original Bill: 39.59.040, 42.56.270, 42.56.400, 48.200.040, 44.28.065