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, an initial appropriation for capitalization, and the formation of an operating board to oversee its functions, with the state treasurer transferring state funds into the bank.

The bill also introduces several amendments to enhance the operation and investment capabilities of the public bank, including allowing it to charge for costs related to loan proposals and modify bond terms while complying with existing contracts. It establishes a new section mandating state treasurer employees to primarily administer the bank and expands permissible investments for local governments to include bonds issued by the public bank. Additionally, the bill updates exemptions from public disclosure for sensitive financial information and clarifies that certain existing laws regarding attorney employment do not apply to the public bank's administration. Overall, the legislation aims to create a public bank that prioritizes public benefit while ensuring the confidentiality of its operations.

Statutes affected:
Original bill: 39.59.040, 48.05.320, 44.28.065