The proposed legislation seeks to establish a Washington State Public Bank aimed at enhancing public financing capabilities without increasing taxes or state debt. It draws inspiration from the successful model of the Bank of North Dakota, proposing that a state-owned depository bank could utilize existing funds to finance infrastructure projects, thereby benefiting local economies and reducing dependence on private financial institutions. Key provisions include the establishment of the public bank as a corporate entity, the creation of an operating board overseen by the state treasurer, and the requirement for state funds to be transferred into the bank to support its operations. The bill also defines essential terms related to the bank's functions and emphasizes its role as the primary depository for state and local funds.

Additionally, the bill outlines the governance structure and operational powers of the public bank, including the ability to issue bonds that do not create state debt and the authority to charge for services related to loan proposals. It amends existing laws to expand investment options for local governments in bonds issued by the public bank and introduces confidentiality provisions to protect sensitive financial information. The legislation also clarifies that the public bank's operations will not be classified under traditional banking regulations, ensuring its distinct status. Overall, the bill aims to streamline the public bank's financial activities while providing a framework for its administration and oversight.

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