Wildfire mitigation grants

AN ACT Relating to creating a wildfire mitigation grant program; 1
amending RCW 48.02.190; reenacting and amending RCW 43.84.092, 2
43.84.092, 43.84.092, 43.84.092, 43.84.092, and 43.84.092; adding a 3
new section to chapter 48.30 RCW; adding a new chapter to Title 48 4
RCW; providing effective dates; providing a contingent effective 5
date; providing expiration dates; and providing contingent expiration 6
dates. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:8
NEW SECTION. Sec. 1. The legislature finds that the business of 9
insurance is one affected by the public interest and that wildfire 10
losses devastate Washington communities and infrastructure, 11
contribute to increases and unpredictability in homeowner insurance 12
rates, inhibit insurers from offering products in Washington's 13
insurance market, cause extensive harm to the state economy, and 14
necessitate unpredictable public expenditures that undermine state 15
and local government operations and fiscal management.16
The legislature further finds that fire losses and the extent of 17
devastating economic and community effects from wildfires can be 18
significantly reduced through mitigation actions for insurable 19
dwellings in accordance with wildfire prepared home and wildfire 20
prepared neighborhood designation standards published by the 21
Z-0512.1
HOUSE BILL 2407
State of Washington 69th Legislature 2026 Regular Session
By Representatives Ramel, Engell, Hall, Zahn, Berry, Scott,
Salahuddin, Paul, Obras, Ormsby, Nance, and Hill; by request of
Insurance Commissioner
Read first time 01/13/26. Referred to Committee on Consumer
Protection & Business.
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insurance institute for business and home safety or a successor 1
entity. 2
Therefore, the legislature concludes it is in the public interest 3
to establish the strengthen Washington homes program, a grant program 4
intended to assist and promote wildfire risk mitigation.5
NEW SECTION. Sec. 2. The definitions in this section apply 6
throughout this chapter unless the context clearly requires 7
otherwise.8
(1) "Insurable dwelling" means a dwelling located or situated on, 9
or affixed to, residential real estate and includes a single-family 10
or multifamily dwelling, including a modular home as defined in RCW 11
46.04.303. 12
(2) "Program" means the strengthen Washington homes program 13
established in section 3 of this act. 14
(3) "Program account" means the strengthen Washington homes 15
program account created in section 4 of this act. 16
(4) "Wildfire prepared standards" means wildfire prepared home 17
and wildfire prepared neighborhood designation standards published by 18
the insurance institute for business and home safety or a successor 19
entity. 20
NEW SECTION. Sec. 3. (1) The strengthen Washington homes 21
program is hereby established for the purpose of providing financial 22
grants to real property owners, building contractors, and nonprofit 23
organizations to assist and promote wildfire risk mitigation efforts 24
for insurable dwellings in accordance with the wildfire prepared 25
standards.26
(2) To the extent funding is available in the program account, 27
the commissioner shall implement and administer the program in 28
accordance with this section. 29
(3) The commissioner may accept any and all donations, bequests, 30
gifts, conveyances, devises, and grants conditional or otherwise; or 31
money, property, service, or other things of value which may be 32
received from the United States or any agency thereof, any 33
governmental agency, institution, person, firm, or corporation, 34
public and private, to be held, used, or applied for the purpose of 35
the program. 36
(4) Any financial grant provided under the program to mitigate an 37
insurable dwelling is contingent upon the real property owner 38
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securing all required permits and applicable inspections in 1
accordance with local building codes as well as a wildfire prepared 2
standard or equivalent designation from the insurance institute for 3
business and home safety or a successor entity. 4
(5) Nothing in this section is construed to create an entitlement 5
for property owners, building contractors, or nonprofit organizations 6
to obtain funds for, or obligate the state in any way to fund, any 7
activity for which a financial grant is permitted under this section.8
NEW SECTION. Sec. 4. (1) The strengthen Washington homes 9
program account is hereby created in the state treasury. Moneys in 10
the program account may be spent only after appropriation. 11
Expenditures from the program account may be used only for the 12
purposes of the program. All receipts from the following sources must 13
be deposited into the program account:14
(a) All grants and funds received under this section for the 15
purposes of the program; and 16
(b) Any appropriations made for the program by the legislature.17
(2) Any interest earned on money in the program account must 18
remain in the program account. 19
NEW SECTION. Sec. 5. The commissioner may conduct localized 20
pilot projects to inform the implementation of the program. The pilot 21
projects must include identification of the most efficient means of 22
administering the program, development of the necessary workforce to 23
implement the program fully, and establishment of the schedule for 24
full implementation.25
NEW SECTION. Sec. 6. The commissioner may adopt rules as 26
necessary to implement this chapter, including to:27
(1) Establish application forms and procedures for obtaining a 28
financial grant; 29
(2) Specify the eligibility criteria, requirements, and 30
procedures for obtaining a financial grant, which may include, but 31
are not limited to, providing financial grants to:32
(a) Real property owners to retrofit owner-occupied insurable 33
dwellings; 34
(b) Nonprofit organizations to improve the wildfire resilience of 35
single-family insurable dwellings occupied or owned by low-income and 36
moderate-income individuals; and 37
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(c) Governmental entities; 1
(3) Require that any insurable dwelling wildfire risk mitigation 2
funded by a grant under the program: 3
(a) Comply with: 4
(i) The most recent version of any applicable wildfire prepared 5
standards; and 6
(ii) Specific standards and designations that are applicable to 7
the insurable dwelling; and 8
(b) Be performed by contractors who meet criteria established by 9
the commissioner; 10
(4) Develop procedures and requirements for distributing 11
financial grants; and 12
(5) Collect the documentation necessary to allow for any auditing 13
of the program that is required under the terms of a grant or other 14
funds received by the program. 15
NEW SECTION. Sec. 7. A new section is added to chapter 48.30 16
RCW to read as follows: 17
An insurer is prohibited from using wildfire risk as a 18
disqualifying risk factor for eligibility of property insurance 19
coverage if the property has a current wildfire prepared home, 20
wildfire prepared neighbors, or an equivalent designation from the 21
insurance institute for business and home safety or a successor 22
entity. 23
NEW SECTION. Sec. 8. This act may be known and cited as the 24
strengthen Washington homes act.25
NEW SECTION. Sec. 9. Sections 1 through 6 and 8 of this act 26
constitute a new chapter in Title 48 RCW.27
Sec. 10. RCW 48.02.190 and 2020 c 195 s 2 are each amended to 28
read as follows: 29
(1) As used in this section: 30
(a) "Insurance fraud surcharge" means the fees imposed by 31
subsection (2)(b) of this section. 32
(b) "Organization" means every insurer, as defined in RCW 33
48.01.050, having a certificate of authority to do business in this 34
state, every health care service contractor, as defined in RCW 35
48.44.010, every health maintenance organization, as defined in RCW 36
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48.46.020, or self -funded multiple employer welfare arrangement, as 1
defined in RCW 48.125.010, registered to do business in this state. 2
"Class one" organizations consist of all insurers as defined in RCW 3
48.01.050. "Class two" organizations consist of all organizations 4
registered under provisions of chapters 48.44 and 48.46 RCW. "Class 5
three" organizations consist of self-funded multiple employer welfare 6
arrangements as defined in RCW 48.125.010. 7
(c)(i) "Receipts" means (A) net direct premiums consisting of 8
direct gross premiums, as defined in RCW 48.18.170, paid for 9
insurance written or renewed upon risks or property resident, 10
situated, or to be performed in this state, less return premiums and 11
premiums on policies not taken, dividends paid or credited to 12
policyholders on direct business, and premiums received from policies 13
or contracts issued in connection with qualified plans as defined in 14
RCW 48.14.021, and (B) prepayments to health care service 15
contractors, as defined in RCW 48.44.010, health maintenance 16
organizations, as defined in RCW 48.46.020, or participant 17
contributions to self-funded multiple employer welfare arrangements, 18
as defined in RCW 48.125.010, less experience rating credits, 19
dividends, prepayments returned to subscribers, and payments for 20
contracts not taken. 21
(ii) Participant contributions, under chapter 48.125 RCW, used to 22
determine the receipts in this state under this section are 23
determined in the same manner as premiums taxable in this state are 24
determined under RCW 48.14.090. 25
(d) "Regulatory surcharge" means the fees imposed by subsection 26
(2)(a) of this section. 27
(2) The annual cost of operating the office of the insurance 28
commissioner ((is)) and the strengthen Washington homes program are 29
determined by legislative appropriation. 30
(a) A pro rata share of the cost, except for the cost of the 31
insurance fraud program, is charged to all organizations as a 32
regulatory surcharge. Each class of organization must contribute a 33
sufficient amount to the insurance commissioner's regulatory account 34
to pay the reasonable costs, including overhead, of regulating that 35
class of organization. 36
(b) The annual cost of operating the insurance fraud program is 37
charged to all organizations as an insurance fraud surcharge. Each 38
class of organization must contribute a sufficient amount to the 39
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insurance commissioner's fraud account to pay the reasonable costs of 1
the program, including overhead. 2
(3)(a) The regulatory surcharge is calculated separately for each 3
class of organization. The regulatory surcharge collected from each 4
organization is that portion of the cost of operating the insurance 5
commissioner's office, except for the cost of operating the insurance 6
fraud program, for that class of organization, for the ensuing fiscal 7
year that is represented by the organization's portion of the 8
receipts collected or received by all organizations within that class 9
on business in this state during the previous calendar year. However, 10
the regulatory surcharge must not exceed one-eighth of one percent of 11
receipts and the minimum regulatory surcharge is one thousand 12
dollars. 13
(b) The insurance fraud surcharge collected from each 14
organization is the cost of operating the insurance fraud program for 15
the ensuing fiscal year that is represented by the organization's 16
portion of the receipts collected or received on business in this 17
state during the previous calendar year. However, the insurance fraud 18
surcharge may not exceed one one-hundredths of one percent of 19
receipts and the minimum insurance fraud surcharge is one hundred 20
dollars. 21
(4) The commissioner must annually, on or before July 1st, 22
calculate and bill each organization for the amount of the regulatory 23
and insurance fraud surcharges. The surcharges are due and payable no 24
later than July 15th of each year. However, if the necessary 25
financial records are not available or if the amount of the 26
legislative appropriation is not determined in time to carry out such 27
calculations and bill the surcharges within the time specified, the 28
commissioner may use the surcharge factors for the prior year as the 29
basis for the surcharges and, if necessary, the commissioner may 30
impose supplemental fees to fully and properly charge the 31
organizations. Any organization failing to pay the surcharges by July 32
31st must pay the same penalties as the penalties for failure to pay 33
taxes when due under RCW 48.14.060. The surcharges required by this 34
section are in addition to all other taxes and fees now imposed or 35
that may be subsequently imposed. 36
(5)(a) All moneys collected for the regulatory surcharge must be 37
deposited in the insurance commissioner's regulatory account in the 38
state treasury which is hereby created. 39
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(b) All moneys collected for the insurance fraud surcharge must 1
be deposited in the insurance commissioner's fraud account in the 2
state treasury which is hereby created. 3
(6) Unexpended funds in the insurance commissioner's regulatory 4
and fraud accounts at the close of a fiscal year are carried forward 5
to the succeeding fiscal year and ((are used to reduce )) may be used 6
to:7
(a) Fund the strengthen Washington homes program account created 8
in section 4 of this act; and9
(b) Reduce future regulatory and insurance fraud surcharges.10
(7)(a) Each insurer may annually collect regulatory and insurance 11
fraud surcharges remitted in preceding years by means of a 12
policyholder surcharge on premiums charged for all kinds of 13
insurance. The recoupment is at a uniform rate reasonably calculated 14
to collect the regulatory and insurance fraud surcharges remitted by 15
the insurer. 16
(b) If an insurer fails to collect the entire amount of the 17
recoupment in the first year under this section, it may repeat the 18
recoupment procedure provided for in this subsection (7) in 19
succeeding years until the regulatory and insurance fraud surcharges 20
are fully collected or a de minimis amount remains uncollected. Any 21
such de minimis amount may be collected as provided in (d) of this 22
subsection. 23
(c) The amount and nature of any recoupment must be separately 24
stated on either a billing or policy declaration sent to an insured. 25
The amount of the recoupment must not be considered a premium for any 26
purpose, including the premium tax or agents' commissions.27
(d) An insurer may elect not to collect the regulatory and 28
insurance fraud surcharges from its insured. In such a case, the 29
insurer may recoup the regulatory and insurance fraud surcharges 30
through its rates, if the following requirements are met:31
(i) The insurer remits the amount of the surcharges not collected 32
by election under this subsection; and 33
(ii) The surcharges are not considered a premium for any purpose, 34
including the premium tax or agents' commission. 35
Sec. 11. RCW 43.84.092 and 2025 c 417 s 802, 2025 c 399 s 15, 36
2025 c 359 s 12, and 2025 c 299 s 21 are each reenacted and amended 37
to read as follows: 38
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(1) All earnings of investments of surplus balances in the state 1
treasury shall be deposited to the treasury income account, which 2
account is hereby established in the state treasury.3
(2) The treasury income account shall be utilized to pay or 4
receive funds associated with federal programs as required by the 5
federal cash management improvement act of 1990. The treasury income 6
account is subject in all respects to chapter 43.88 RCW, but no 7
appropriation is required for refunds or allocations of interest 8
earnings required by the cash management improvement act. Refunds of 9
interest to the federal treasury required under the cash management 10
improvement act fall under RCW 43.88.180 and shall not require 11
appropriation. The office of financial management shall determine the 12
amounts due to or from the federal government pursuant to the cash 13
management improvement act. The office of financial management may 14
direct transfers of funds between accounts as deemed necessary to 15
implement the provisions of the cash management improvement act, and 16
this subsection. Refunds or allocations shall occur prior to the 17
distributions of earnings set forth in subsection (4) of this 18
section. 19
(3) Except for the provisions of RCW 43.84.160, the treasury 20
income account may be utilized for the payment of purchased banking 21
services on behalf of treasury funds including, but not limited to, 22
depository, safekeeping, and disbursement functions for the state 23
treasury and affected state agencies. The treasury income account is 24
subject in all respects to chapter 43.88 RCW, but no appropriation is 25
required for payments to financial institutions. Payments shall occur 26
prior to distribution of earnings set forth in subsection (4) of this 27
section. 28
(4) Monthly, the state treasurer shall distribute the earnings 29
credited to the treasury income account. The state treasurer shall 30
credit the general fund with all the earnings credited to the 31
treasury income account except: 32
(a) The following accounts and funds shall receive their 33
proportionate share of earnings based upon each account's and fund's 34
average daily balance for the period: The abandoned recreational 35
vehicle disposal account, the aeronautics account, the Alaskan Way 36
viaduct replacement project account, the ambulance transport fund, 37
the budget stabilization account, the capital vessel replacement 38
account, the capitol building construction account, the Central 39
Washington University capital projects account, the charitable, 40
p. 8 HB 2407
educational, penal and reformatory institutions account, the Chehalis 1
basin account, the Chehalis basin taxable account, the clean fuels 2
credit account, the clean fuels transportation investment account, 3
the cleanup settlement account, the Columbia river basin water supply 4
development account, the Columbia river basin taxable bond water 5
supply development account, the Columbia river basin water supply 6
revenue recovery account, the common school construction fund, the 7
community forest trust account, the connecting Washington account, 8
the county arterial preservation account, the county criminal justice 9
assistance account, the covenant homeownership account, the deferred 10
compensation administrative account, the deferred compensation 11
principal account, the department of licensing services account, the 12
department of retirement systems expense account, the developmental 13
disabilities community services account, the diesel idle reduction 14
account, the opioid abatement settlement account, the drinking water 15
assistance account, the administrative subaccount of the drinking 16
water assistance account, the driver education safety improvement 17
account, the early learning facilities development account, the early 18
learning facilities revolving account, the Eastern Washington 19
University capital projects account, the education legacy trust 20
account, the election account, the electric vehicle account, the 21
energy freedom account, the energy recovery act account, the 22
essential rail assistance account, The Evergreen State College 23
capital projects account, the fair start for kids account, the family 24
medicine workforce development account, the ferry bond retirement 25
fund, the fish, wildlife, and conservation account, the freight 26
mobility investment account, the freight mobility multimodal account, 27
the grade crossing protective fund, the higher education retirement 28
plan supplemental benefit fund, the Washington student loan account, 29
the highway bond retirement fund, the highway infrastructure account, 30
the highway safety fund, the hospital safety net assessment fund, the 31
Interstate 5 bridge replacement project account, the Interstate 405 32
and state route number 167 express toll lanes account, the judges' 33
retirement account, the judicial retirement administrative account, 34
the judicial retirement principal account, the limited fish and 35
wildlife account, the local leasehold excise tax account, the local 36
real estate excise tax account, the local sales and use tax account, 37
the marine resources stewardship trust account, the medical aid 38
account, the money-purchase retirement savings administrative 39
account, the money-purchase retirement savings principal account, the 40
p. 9 HB 2407
motor vehicle fund, the motorcycle safety education account, the move 1
ahead WA account, the move ahead WA flexible account, the multimodal 2
transportation account, the multiuse roadway safety account, the 3
municipal criminal justice assistance account, the oyster reserve 4
land account, the pension funding stabilization account, the 5
perpetual surveillance and maintenance account, the pilotage account, 6
the pollution liability insurance agency underground storage tank 7
revolving account, the medicaid access program account, the public 8
employees' retirement system plan 1 account, the public employees' 9
retirement system combined plan 2 and plan 3 account, the public 10
facilities construction loan revolving account, the public health 11
supplemental account, the public works assistance account, the Puget 12
Sound capital construction account, the Puget Sound ferry operations 13
account, the Puget Sound Gateway facility account, the Puget Sound 14
taxpayer accountability account, the real estate appraiser commission 15
account, the recreational vehicle account, the regional mobility 16
grant program account, the reserve officers' relief and pension 17
principal fund, the resource management cost account, the rural 18
arterial trust account, the rural mobility grant program account, the 19
rural Washington loan fund, the second injury fund, the sexual 20
assault prevention and response account, the site closure account, 21
the skilled nursing facility safety net trust fund, the small city 22
pavement and sidewalk account, the special category C account, the 23
special wildlife account, the state hazard mitigation revolving loan 24
account, the state investment board expense account, the state 25
investment board commingled trust fund accounts, the state patrol 26
highway account, the state reclamation revolving account, the state 27
route number 520 civil penalties account, the state route number 520 28
corridor account, the statewide broadband account, the statewide 29
tourism marketing account, the strengthen Washington homes program 30
account, the supplemental pension account, the Tacoma Narrows toll 31
bridge account, the teachers' retirement system plan 1 account, the 32
teachers' retirement system combined plan 2 and plan 3 account, the 33
tobacco prevention and control account, the tobacco settlement 34
account, the toll facility bond retirement account, the 35
transportation 2003 account (nickel account), the transportation 36
equipment fund, the JUDY transportation future funding program 37
account, the transportation improvement account, the transportation 38
improvement board bond retirement account, the transportation 39
infrastructure account, the transportation partnership account, the 40
p. 10 HB 2407
traumatic brain injury account, the tribal opioid prevention and 1
treatment account, the University of Washington bond retirement fund, 2
the University of Washington building account, the voluntary cleanup 3
account, the volunteer firefighters' relief and pension principal 4
fund, the volunteer firefighters' and reserve officers' 5
administrative fund, the vulnerable roadway user education account, 6
the Washington judicial retirement system account, the Washington law 7
enforcement officers' and firefighters' system plan 1 retirement 8
account, the Washington law enforcement officers' and firefighters' 9
system plan 2 retirement account, the Washington public safety 10
employees' plan 2 retirement account, the Washington school 11
employees' retirement system combined plan 2 and 3 account, the 12
Washington state patrol retirement account, the Washington State 13
University building account, the Washington State University bond 14
retirement fund, the water pollution control revolving administration 15
account, the water pollution control revolving fund, the Western 16
Washington University capital projects account, the Yakima integrated 17
plan implementation account, the Yakima integrated plan 18
implementation revenue recovery account, and the Yakima integrated 19
plan implementation taxable bond account. Earnings derived from 20
investing balances of the agricultural permanent fund, the normal 21
school permanent fund, the permanent common school fund, the 22
scientific permanent fund, and the state university permanent fund 23
shall be allocated to their respective beneficiary accounts.24
(b) Any state agency that has independent authority over accounts 25
or funds not statutorily required to be held in the state treasury 26
that deposits funds into a fund or account in the state treasury 27
pursuant to an agreement with the office of the state treasurer shall 28
receive its proportionate share of earnings based upon each account's 29
or fund's average daily balance for the period. 30
(5) In conformance with Article II, section 37 of the state 31
Constitution, no treasury accounts or funds shall be allocated 32
earnings without the specific affirmative directive of this section.33
Sec. 12. RCW 43.84.092 and 2025 c 417 s 802, 2025 c 399 s 15, 34
and 2025 c 299 s 21 are each reenacted and amended to read as 35
follows: 36
(1) All earnings of investments of surplus balances in the state 37
treasury shall be deposited to the treasury income account, which 38
account is hereby established in the state treasury.39
p. 11 HB 2407
(2) The treasury income account shall be utilized to pay or 1
receive funds associated with federal programs as required by the 2
federal cash management improvement act of 1990. The treasury income 3
account is subject in all respects to chapter 43.88 RCW, but no 4
appropriation is required for refunds or allocations of interest 5
earnings required by the cash management improvement act. Refunds of 6
interest to the federal treasury required under the cash management 7
improvement act fall under RCW 43.88.180 and shall not require 8
appropriation. The office of financial management shall determine the 9
amounts due to or from the federal government pursuant to the cash 10
management improvement act. The office of financial management may 11
direct transfers of funds between accounts as deemed necessary to 12
implement the provisions of the cash management improvement act, and 13
this subsection. Refunds or allocations shall occur prior to the 14
distributions of earnings set forth in subsection (4) of this 15
section. 16
(3) Except for the provisions of RCW 43.84.160, the treasury 17
income account may be utilized for the payment of purchased banking 18
services on behalf of treasury funds including, but not limited to, 19
depository, safekeeping, and disbursement functions for the state 20
treasury and affected state agencies. The treasury income account is 21
subject in all respects to chapter 43.88 RCW, but no appropriation is 22
required for payments to financial institutions. Payments shall occur 23
prior to distribution of earnings set forth in subsection (4) of this 24
section. 25
(4) Monthly, the state treasurer shall distribute the earnings 26
credited to the treasury income account. The state treasurer shall 27
credit the general fund with all the earnings credited to the 28
treasury income account except: 29
(a) The following accounts and funds shall receive their 30
proportionate share of earnings based upon each account's and fund's 31
average daily balance for the period: The abandoned recreational 32
vehicle disposal account, the aeronautics account, the Alaskan Way 33
viaduct replacement project account, the ambulance transport fund, 34
the budget stabilization account, the capital vessel replacement 35
account, the capitol building construction account, the Central 36
Washington University capital projects account, the charitable, 37
educational, penal and reformatory institutions account, the Chehalis 38
basin account, the Chehalis basin taxable account, the clean fuels 39
credit account, the clean fuels transportation investment account, 40
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the cleanup settlement account, the Columbia river basin water supply 1
development account, the Columbia river basin taxable bond water 2
supply development account, the Columbia river basin water supply 3
revenue recovery account, the common school construction fund, the 4
community forest trust account, the connecting Washington account, 5
the county arterial preservation account, the county criminal justice 6
assistance account, the covenant homeownership account, the deferred 7
compensation administrative account, the deferred compensation 8
principal account, the department of licensing services account, the 9
department of retirement systems expense account, the developmental 10
disabilities community services account, the diesel idle reduction 11
account, the opioid abatement settlement account, the drinking water 12
assistance account, the administrative subaccount of the drinking 13
water assistance account, the driver education safety improvement 14
account, the early learning facilities development account, the early 15
learning facilities revolving account, the Eastern Washington 16
University capital projects account, the education legacy trust 17
account, the election account, the electric vehicle account, the 18
energy freedom account, the energy recovery act account, the 19
essential rail assistance account, The Evergreen State College 20
capital projects account, the fair start for kids account, the family 21
medicine workforce development account, the ferry bond retirement 22
fund, the fish, wildlife, and conservation account, the freight 23
mobility investment account, the freight mobility multimodal account, 24
the grade crossing protective fund, the higher education retirement 25
plan supplemental benefit fund, the Washington student loan account, 26
the highway bond retirement fund, the highway infrastructure account, 27
the highway safety fund, the hospital safety net assessment fund, the 28
Interstate 5 bridge replacement project account, the Interstate 405 29
and state route number 167 express toll lanes account, the judges' 30
retirement account, the judicial retirement administrative account, 31
the judicial retirement principal account, the limited fish and 32
wildlife account, the local leasehold excise tax account, the local 33
real estate excise tax account, the local sales and use tax account, 34
the marine resources stewardship trust account, the medical aid 35
account, the money-purchase retirement savings administrative 36
account, the money-purchase retirement savings principal account, the 37
motor vehicle fund, the motorcycle safety education account, the move 38
ahead WA account, the move ahead WA flexible account, the multimodal 39
transportation account, the multiuse roadway safety account, the 40
p. 13 HB 2407
municipal criminal justice assistance account, the oyster reserve 1
land account, the pension funding stabilization account, the 2
perpetual surveillance and maintenance account, the pilotage account, 3
the pollution liability insurance agency underground storage tank 4
revolving account, the public employees' retirement system plan 1 5
account, the public employees' retirement system combined plan 2 and 6
plan 3 account, the public facilities construction loan revolving 7
account, the public health supplemental account, the public works 8
assistance account, the Puget Sound capital construction account, the 9
Puget Sound ferry operations account, the Puget Sound Gateway 10
facility account, the Puget Sound taxpayer accountability account, 11
the real estate appraiser commission account, the recreational 12
vehicle account, the regional mobility grant program account, the 13
reserve officers' relief and pension principal fund, the resource 14
management cost account, the rural arterial trust account, the rural 15
mobility grant program account, the rural Washington loan fund, the 16
second injury fund, the sexual assault prevention and response 17
account, the site closure account, the skilled nursing facility 18
safety net trust fund, the small city pavement and sidewalk account, 19
the special category C account, the special wildlife account, the 20
state hazard mitigation revolving loan account, the state investment 21
board expense account, the state investment board commingled trust 22
fund accounts, the state patrol highway account, the state 23
reclamation revolving account, the state route number 520 civil 24
penalties account, the state route number 520 corridor account, the 25
statewide broadband account, the statewide tourism marketing account, 26
the strengthen Washington homes program account, the supplemental 27
pension account, the Tacoma Narrows toll bridge account, the 28
teachers' retirement system plan 1 account, the teachers' retirement 29
system combined plan 2 and plan 3 account, the tobacco prevention and 30
control account, the tobacco settlement account, the toll facility 31
bond retirement account, the transportation 2003 account (nickel 32
account), the transportation equipment fund, the JUDY transportation 33
future funding program account, the transportation improvement 34
account, the transportation improvement board bond retirement 35
account, the transportation infrastructure account, the 36
transportation partnership account, the traumatic brain injury 37
account, the tribal opioid prevention and treatment account, the 38
University of Washington bond retirement fund, the University of 39
Washington building account, the voluntary cleanup account, the 40
p. 14 HB 2407
volunteer firefighters' relief and pension principal fund, the 1
volunteer firefighters' and reserve officers' administrative fund, 2
the vulnerable roadway user education account, the Washington 3
judicial retirement system account, the Washington law enforcement 4
officers' and firefighters' system plan 1 retirement account, the 5
Washington law enforcement officers' and firefighters' system plan 2 6
retirement account, the Washington public safety employees' plan 2 7
retirement account, the Washington school employees' retirement 8
system combined plan 2 and 3 account, the Washington state patrol 9
retirement account, the Washington State University building account, 10
the Washington State University bond retirement fund, the water 11
pollution control revolving administration account, the water 12
pollution control revolving fund, the Western Washington University 13
capital projects account, the Yakima integrated plan implementation 14
account, the Yakima integrated plan implementation revenue recovery 15
account, and the Yakima integrated plan implementation taxable bond 16
account. Earnings derived from investing balances of the agricultural 17
permanent fund, the normal school permanent fund, the permanent 18
common school fund, the scientific permanent fund, and the state 19
university permanent fund shall be allocated to their respective 20
beneficiary accounts. 21
(b) Any state agency that has independent authority over accounts 22
or funds not statutorily required to be held in the state treasury 23
that deposits funds into a fund or account in the state treasury 24
pursuant to an agreement with the office of the state treasurer shall 25
receive its proportionate share of earnings based upon each account's 26
or fund's average daily balance for the period. 27
(5) In conformance with Article II, section 37 of the state 28
Constitution, no treasury accounts or funds shall be allocated 29
earnings without the specific affirmative directive of this section.30
Sec. 13. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 31
2025 c 359 s 13, and 2025 c 299 s 22 are each reenacted and amended 32
to read as follows: 33
(1) All earnings of investments of surplus balances in the state 34
treasury shall be deposited to the treasury income account, which 35
account is hereby established in the state treasury.36
(2) The treasury income account shall be utilized to pay or 37
receive funds associated with federal programs as required by the 38
federal cash management improvement act of 1990. The treasury income 39
p. 15 HB 2407
account is subject in all respects to chapter 43.88 RCW, but no 1
appropriation is required for refunds or allocations of interest 2
earnings required by the cash management improvement act. Refunds of 3
interest to the federal treasury required under the cash management 4
improvement act fall under RCW 43.88.180 and shall not require 5
appropriation. The office of financial management shall determine the 6
amounts due to or from the federal government pursuant to the cash 7
management improvement act. The office of financial management may 8
direct transfers of funds between accounts as deemed necessary to 9
implement the provisions of the cash management improvement act, and 10
this subsection. Refunds or allocations shall occur prior to the 11
distributions of earnings set forth in subsection (4) of this 12
section. 13
(3) Except for the provisions of RCW 43.84.160, the treasury 14
income account may be utilized for the payment of purchased banking 15
services on behalf of treasury funds including, but not limited to, 16
depository, safekeeping, and disbursement functions for the state 17
treasury and affected state agencies. The treasury income account is 18
subject in all respects to chapter 43.88 RCW, but no appropriation is 19
required for payments to financial institutions. Payments shall occur 20
prior to distribution of earnings set forth in subsection (4) of this 21
section. 22
(4) Monthly, the state treasurer shall distribute the earnings 23
credited to the treasury income account. The state treasurer shall 24
credit the general fund with all the earnings credited to the 25
treasury income account except: 26
(a) The following accounts and funds shall receive their 27
proportionate share of earnings based upon each account's and fund's 28
average daily balance for the period: The abandoned recreational 29
vehicle disposal account, the aeronautics account, the Alaskan Way 30
viaduct replacement project account, the budget stabilization 31
account, the capital vessel replacement account, the capitol building 32
construction account, the Central Washington University capital 33
projects account, the charitable, educational, penal and reformatory 34
institutions account, the Chehalis basin account, the Chehalis basin 35
taxable account, the clean fuels credit account, the clean fuels 36
transportation investment account, the cleanup settlement account, 37
the Columbia river basin water supply development account, the 38
Columbia river basin taxable bond water supply development account, 39
the Columbia river basin water supply revenue recovery account, the 40
p. 16 HB 2407
common school construction fund, the community forest trust account, 1
the connecting Washington account, the county arterial preservation 2
account, the county criminal justice assistance account, the covenant 3
homeownership account, the deferred compensation administrative 4
account, the deferred compensation principal account, the department 5
of licensing services account, the department of retirement systems 6
expense account, the developmental disabilities community services 7
account, the diesel idle reduction account, the opioid abatement 8
settlement account, the drinking water assistance account, the 9
administrative subaccount of the drinking water assistance account, 10
the driver education safety improvement account, the early learning 11
facilities development account, the early learning facilities 12
revolving account, the Eastern Washington University capital projects 13
account, the education legacy trust account, the election account, 14
the electric vehicle account, the energy freedom account, the energy 15
recovery act account, the essential rail assistance account, The 16
Evergreen State College capital projects account, the fair start for 17
kids account, the family medicine workforce development account, the 18
ferry bond retirement fund, the fish, wildlife, and conservation 19
account, the freight mobility investment account, the freight 20
mobility multimodal account, the grade crossing protective fund, the 21
higher education retirement plan supplemental benefit fund, the 22
Washington student loan account, the highway bond retirement fund, 23
the highway infrastructure account, the highway safety fund, the 24
hospital safety net assessment fund, the Interstate 5 bridge 25
replacement project account, the Interstate 405 and state route 26
number 167 express toll lanes account, the judges' retirement 27
account, the judicial retirement administrative account, the judicial 28
retirement principal account, the limited fish and wildlife account, 29
the local leasehold excise tax account, the local real estate excise 30
tax account, the local sales and use tax account, the marine 31
resources stewardship trust account, the medical aid account, the 32
money-purchase retirement savings administrative account, the money-33
purchase retirement savings principal account, the motor vehicle 34
fund, the motorcycle safety education account, the move ahead WA 35
account, the move ahead WA flexible account, the multimodal 36
transportation account, the multiuse roadway safety account, the 37
municipal criminal justice assistance account, the oyster reserve 38
land account, the pension funding stabilization account, the 39
perpetual surveillance and maintenance account, the pilotage account, 40
p. 17 HB 2407
the pollution liability insurance agency underground storage tank 1
revolving account, the medicaid access program account, the public 2
employees' retirement system plan 1 account, the public employees' 3
retirement system combined plan 2 and plan 3 account, the public 4
facilities construction loan revolving account, the public health 5
supplemental account, the public works assistance account, the Puget 6
Sound capital construction account, the Puget Sound ferry operations 7
account, the Puget Sound Gateway facility account, the Puget Sound 8
taxpayer accountability account, the real estate appraiser commission 9
account, the recreational vehicle account, the regional mobility 10
grant program account, the reserve officers' relief and pension 11
principal fund, the resource management cost account, the rural 12
arterial trust account, the rural mobility grant program account, the 13
rural Washington loan fund, the second injury fund, the sexual 14
assault prevention and response account, the site closure account, 15
the skilled nursing facility safety net trust fund, the small city 16
pavement and sidewalk account, the special category C account, the 17
special wildlife account, the state hazard mitigation revolving loan 18
account, the state investment board expense account, the state 19
investment board commingled trust fund accounts, the state patrol 20
highway account, the state reclamation revolving account, the state 21
route number 520 civil penalties account, the state route number 520 22
corridor account, the statewide broadband account, the statewide 23
tourism marketing account, the strengthen Washington homes program 24
account, the supplemental pension account, the Tacoma Narrows toll 25
bridge account, the teachers' retirement system plan 1 account, the 26
teachers' retirement system combined plan 2 and plan 3 account, the 27
tobacco prevention and control account, the tobacco settlement 28
account, the toll facility bond retirement account, the 29
transportation 2003 account (nickel account), the transportation 30
equipment fund, the JUDY transportation future funding program 31
account, the transportation improvement account, the transportation 32
improvement board bond retirement account, the transportation 33
infrastructure account, the transportation partnership account, the 34
traumatic brain injury account, the tribal opioid prevention and 35
treatment account, the University of Washington bond retirement fund, 36
the University of Washington building account, the voluntary cleanup 37
account, the volunteer firefighters' relief and pension principal 38
fund, the volunteer firefighters' and reserve officers' 39
administrative fund, the vulnerable roadway user education account, 40
p. 18 HB 2407
the Washington judicial retirement system account, the Washington law 1
enforcement officers' and firefighters' system plan 1 retirement 2
account, the Washington law enforcement officers' and firefighters' 3
system plan 2 retirement account, the Washington public safety 4
employees' plan 2 retirement account, the Washington school 5
employees' retirement system combined plan 2 and 3 account, the 6
Washington state patrol retirement account, the Washington State 7
University building account, the Washington State University bond 8
retirement fund, the water pollution control revolving administration 9
account, the water pollution control revolving fund, the Western 10
Washington University capital projects account, the Yakima integrated 11
plan implementation account, the Yakima integrated plan 12
implementation revenue recovery account, and the Yakima integrated 13
plan implementation taxable bond account. Earnings derived from 14
investing balances of the agricultural permanent fund, the normal 15
school permanent fund, the permanent common school fund, the 16
scientific permanent fund, and the state university permanent fund 17
shall be allocated to their respective beneficiary accounts.18
(b) Any state agency that has independent authority over accounts 19
or funds not statutorily required to be held in the state treasury 20
that deposits funds into a fund or account in the state treasury 21
pursuant to an agreement with the office of the state treasurer shall 22
receive its proportionate share of earnings based upon each account's 23
or fund's average daily balance for the period. 24
(5) In conformance with Article II, section 37 of the state 25
Constitution, no treasury accounts or funds shall be allocated 26
earnings without the specific affirmative directive of this section.27
Sec. 14. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 28
and 2025 c 299 s 22 are each reenacted and amended to read as 29
follows: 30
(1) All earnings of investments of surplus balances in the state 31
treasury shall be deposited to the treasury income account, which 32
account is hereby established in the state treasury.33
(2) The treasury income account shall be utilized to pay or 34
receive funds associated with federal programs as required by the 35
federal cash management improvement act of 1990. The treasury income 36
account is subject in all respects to chapter 43.88 RCW, but no 37
appropriation is required for refunds or allocations of interest 38
earnings required by the cash management improvement act. Refunds of 39
p. 19 HB 2407
interest to the federal treasury required under the cash management 1
improvement act fall under RCW 43.88.180 and shall not require 2
appropriation. The office of financial management shall determine the 3
amounts due to or from the federal government pursuant to the cash 4
management improvement act. The office of financial management may 5
direct transfers of funds between accounts as deemed necessary to 6
implement the provisions of the cash management improvement act, and 7
this subsection. Refunds or allocations shall occur prior to the 8
distributions of earnings set forth in subsection (4) of this 9
section. 10
(3) Except for the provisions of RCW 43.84.160, the treasury 11
income account may be utilized for the payment of purchased banking 12
services on behalf of treasury funds including, but not limited to, 13
depository, safekeeping, and disbursement functions for the state 14
treasury and affected state agencies. The treasury income account is 15
subject in all respects to chapter 43.88 RCW, but no appropriation is 16
required for payments to financial institutions. Payments shall occur 17
prior to distribution of earnings set forth in subsection (4) of this 18
section. 19
(4) Monthly, the state treasurer shall distribute the earnings 20
credited to the treasury income account. The state treasurer shall 21
credit the general fund with all the earnings credited to the 22
treasury income account except: 23
(a) The following accounts and funds shall receive their 24
proportionate share of earnings based upon each account's and fund's 25
average daily balance for the period: The abandoned recreational 26
vehicle disposal account, the aeronautics account, the Alaskan Way 27
viaduct replacement project account, the budget stabilization 28
account, the capital vessel replacement account, the capitol building 29
construction account, the Central Washington University capital 30
projects account, the charitable, educational, penal and reformatory 31
institutions account, the Chehalis basin account, the Chehalis basin 32
taxable account, the clean fuels credit account, the clean fuels 33
transportation investment account, the cleanup settlement account, 34
the Columbia river basin water supply development account, the 35
Columbia river basin taxable bond water supply development account, 36
the Columbia river basin water supply revenue recovery account, the 37
common school construction fund, the community forest trust account, 38
the connecting Washington account, the county arterial preservation 39
account, the county criminal justice assistance account, the covenant 40
p. 20 HB 2407
homeownership account, the deferred compensation administrative 1
account, the deferred compensation principal account, the department 2
of licensing services account, the department of retirement systems 3
expense account, the developmental disabilities community services 4
account, the diesel idle reduction account, the opioid abatement 5
settlement account, the drinking water assistance account, the 6
administrative subaccount of the drinking water assistance account, 7
the driver education safety improvement account, the early learning 8
facilities development account, the early learning facilities 9
revolving account, the Eastern Washington University capital projects 10
account, the education legacy trust account, the election account, 11
the electric vehicle account, the energy freedom account, the energy 12
recovery act account, the essential rail assistance account, The 13
Evergreen State College capital projects account, the fair start for 14
kids account, the family medicine workforce development account, the 15
ferry bond retirement fund, the fish, wildlife, and conservation 16
account, the freight mobility investment account, the freight 17
mobility multimodal account, the grade crossing protective fund, the 18
higher education retirement plan supplemental benefit fund, the 19
Washington student loan account, the highway bond retirement fund, 20
the highway infrastructure account, the highway safety fund, the 21
hospital safety net assessment fund, the Interstate 5 bridge 22
replacement project account, the Interstate 405 and state route 23
number 167 express toll lanes account, the judges' retirement 24
account, the judicial retirement administrative account, the judicial 25
retirement principal account, the limited fish and wildlife account, 26
the local leasehold excise tax account, the local real estate excise 27
tax account, the local sales and use tax account, the marine 28
resources stewardship trust account, the medical aid account, the 29
money-purchase retirement savings administrative account, the money-30
purchase retirement savings principal account, the motor vehicle 31
fund, the motorcycle safety education account, the move ahead WA 32
account, the move ahead WA flexible account, the multimodal 33
transportation account, the multiuse roadway safety account, the 34
municipal criminal justice assistance account, the oyster reserve 35
land account, the pension funding stabilization account, the 36
perpetual surveillance and maintenance account, the pilotage account, 37
the pollution liability insurance agency underground storage tank 38
revolving account, the public employees' retirement system plan 1 39
account, the public employees' retirement system combined plan 2 and 40
p. 21 HB 2407
plan 3 account, the public facilities construction loan revolving 1
account, the public health supplemental account, the public works 2
assistance account, the Puget Sound capital construction account, the 3
Puget Sound ferry operations account, the Puget Sound Gateway 4
facility account, the Puget Sound taxpayer accountability account, 5
the real estate appraiser commission account, the recreational 6
vehicle account, the regional mobility grant program account, the 7
reserve officers' relief and pension principal fund, the resource 8
management cost account, the rural arterial trust account, the rural 9
mobility grant program account, the rural Washington loan fund, the 10
second injury fund, the sexual assault prevention and response 11
account, the site closure account, the skilled nursing facility 12
safety net trust fund, the small city pavement and sidewalk account, 13
the special category C account, the special wildlife account, the 14
state hazard mitigation revolving loan account, the state investment 15
board expense account, the state investment board commingled trust 16
fund accounts, the state patrol highway account, the state 17
reclamation revolving account, the state route number 520 civil 18
penalties account, the state route number 520 corridor account, the 19
statewide broadband account, the statewide tourism marketing account, 20
the strengthen Washington homes program account, the supplemental 21
pension account, the Tacoma Narrows toll bridge account, the 22
teachers' retirement system plan 1 account, the teachers' retirement 23
system combined plan 2 and plan 3 account, the tobacco prevention and 24
control account, the tobacco settlement account, the toll facility 25
bond retirement account, the transportation 2003 account (nickel 26
account), the transportation equipment fund, the JUDY transportation 27
future funding program account, the transportation improvement 28
account, the transportation improvement board bond retirement 29
account, the transportation infrastructure account, the 30
transportation partnership account, the traumatic brain injury 31
account, the tribal opioid prevention and treatment account, the 32
University of Washington bond retirement fund, the University of 33
Washington building account, the voluntary cleanup account, the 34
volunteer firefighters' relief and pension principal fund, the 35
volunteer firefighters' and reserve officers' administrative fund, 36
the vulnerable roadway user education account, the Washington 37
judicial retirement system account, the Washington law enforcement 38
officers' and firefighters' system plan 1 retirement account, the 39
Washington law enforcement officers' and firefighters' system plan 2 40
p. 22 HB 2407
retirement account, the Washington public safety employees' plan 2 1
retirement account, the Washington school employees' retirement 2
system combined plan 2 and 3 account, the Washington state patrol 3
retirement account, the Washington State University building account, 4
the Washington State University bond retirement fund, the water 5
pollution control revolving administration account, the water 6
pollution control revolving fund, the Western Washington University 7
capital projects account, the Yakima integrated plan implementation 8
account, the Yakima integrated plan implementation revenue recovery 9
account, and the Yakima integrated plan implementation taxable bond 10
account. Earnings derived from investing balances of the agricultural 11
permanent fund, the normal school permanent fund, the permanent 12
common school fund, the scientific permanent fund, and the state 13
university permanent fund shall be allocated to their respective 14
beneficiary accounts. 15
(b) Any state agency that has independent authority over accounts 16
or funds not statutorily required to be held in the state treasury 17
that deposits funds into a fund or account in the state treasury 18
pursuant to an agreement with the office of the state treasurer shall 19
receive its proportionate share of earnings based upon each account's 20
or fund's average daily balance for the period. 21
(5) In conformance with Article II, section 37 of the state 22
Constitution, no treasury accounts or funds shall be allocated 23
earnings without the specific affirmative directive of this section.24
Sec. 15. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 25
2025 c 359 s 13, 2025 c 299 s 22, and 2025 c 228 s 15 are each 26
reenacted and amended to read as follows: 27
(1) All earnings of investments of surplus balances in the state 28
treasury shall be deposited to the treasury income account, which 29
account is hereby established in the state treasury.30
(2) The treasury income account shall be utilized to pay or 31
receive funds associated with federal programs as required by the 32
federal cash management improvement act of 1990. The treasury income 33
account is subject in all respects to chapter 43.88 RCW, but no 34
appropriation is required for refunds or allocations of interest 35
earnings required by the cash management improvement act. Refunds of 36
interest to the federal treasury required under the cash management 37
improvement act fall under RCW 43.88.180 and shall not require 38
appropriation. The office of financial management shall determine the 39
p. 23 HB 2407
amounts due to or from the federal government pursuant to the cash 1
management improvement act. The office of financial management may 2
direct transfers of funds between accounts as deemed necessary to 3
implement the provisions of the cash management improvement act, and 4
this subsection. Refunds or allocations shall occur prior to the 5
distributions of earnings set forth in subsection (4) of this 6
section. 7
(3) Except for the provisions of RCW 43.84.160, the treasury 8
income account may be utilized for the payment of purchased banking 9
services on behalf of treasury funds including, but not limited to, 10
depository, safekeeping, and disbursement functions for the state 11
treasury and affected state agencies. The treasury income account is 12
subject in all respects to chapter 43.88 RCW, but no appropriation is 13
required for payments to financial institutions. Payments shall occur 14
prior to distribution of earnings set forth in subsection (4) of this 15
section. 16
(4) Monthly, the state treasurer shall distribute the earnings 17
credited to the treasury income account. The state treasurer shall 18
credit the general fund with all the earnings credited to the 19
treasury income account except: 20
(a) The following accounts and funds shall receive their 21
proportionate share of earnings based upon each account's and fund's 22
average daily balance for the period: The abandoned recreational 23
vehicle disposal account, the aeronautics account, the Alaskan Way 24
viaduct replacement project account, the budget stabilization 25
account, the capital vessel replacement account, the capitol building 26
construction account, the Central Washington University capital 27
projects account, the charitable, educational, penal and reformatory 28
institutions account, the Chehalis basin account, the Chehalis basin 29
taxable account, the clean fuels credit account, the clean fuels 30
transportation investment account, the cleanup settlement account, 31
the Columbia river basin water supply development account, the 32
Columbia river basin taxable bond water supply development account, 33
the Columbia river basin water supply revenue recovery account, the 34
common school construction fund, the community forest trust account, 35
the connecting Washington account, the county arterial preservation 36
account, the county criminal justice assistance account, the covenant 37
homeownership account, the deferred compensation administrative 38
account, the deferred compensation principal account, the department 39
of licensing services account, the department of retirement systems 40
p. 24 HB 2407
expense account, the developmental disabilities community services 1
account, the diesel idle reduction account, the opioid abatement 2
settlement account, the drinking water assistance account, the 3
administrative subaccount of the drinking water assistance account, 4
the driver education safety improvement account, the early learning 5
facilities development account, the early learning facilities 6
revolving account, the Eastern Washington University capital projects 7
account, the education legacy trust account, the election account, 8
the electric vehicle account, the energy freedom account, the energy 9
recovery act account, the essential rail assistance account, The 10
Evergreen State College capital projects account, the fair start for 11
kids account, the family medicine workforce development account, the 12
ferry bond retirement fund, the fish, wildlife, and conservation 13
account, the freight mobility investment account, the freight 14
mobility multimodal account, the grade crossing protective fund, the 15
higher education retirement plan supplemental benefit fund, the 16
Washington student loan account, the highway bond retirement fund, 17
the highway infrastructure account, the highway safety fund, the 18
hospital safety net assessment fund, the intelligent speed assistance 19
device revolving account, the Interstate 5 bridge replacement project 20
account, the Interstate 405 and state route number 167 express toll 21
lanes account, the judges' retirement account, the judicial 22
retirement administrative account, the judicial retirement principal 23
account, the limited fish and wildlife account, the local leasehold 24
excise tax account, the local real estate excise tax account, the 25
local sales and use tax account, the marine resources stewardship 26
trust account, the medical aid account, the money-purchase retirement 27
savings administrative account, the money-purchase retirement savings 28
principal account, the motor vehicle fund, the motorcycle safety 29
education account, the move ahead WA account, the move ahead WA 30
flexible account, the multimodal transportation account, the multiuse 31
roadway safety account, the municipal criminal justice assistance 32
account, the oyster reserve land account, the pension funding 33
stabilization account, the perpetual surveillance and maintenance 34
account, the pilotage account, the pollution liability insurance 35
agency underground storage tank revolving account, the medicaid 36
access program account, the public employees' retirement system plan 37
1 account, the public employees' retirement system combined plan 2 38
and plan 3 account, the public facilities construction loan revolving 39
account, the public health supplemental account, the public works 40
p. 25 HB 2407
assistance account, the Puget Sound capital construction account, the 1
Puget Sound ferry operations account, the Puget Sound Gateway 2
facility account, the Puget Sound taxpayer accountability account, 3
the real estate appraiser commission account, the recreational 4
vehicle account, the regional mobility grant program account, the 5
reserve officers' relief and pension principal fund, the resource 6
management cost account, the rural arterial trust account, the rural 7
mobility grant program account, the rural Washington loan fund, the 8
second injury fund, the sexual assault prevention and response 9
account, the site closure account, the skilled nursing facility 10
safety net trust fund, the small city pavement and sidewalk account, 11
the special category C account, the special wildlife account, the 12
state hazard mitigation revolving loan account, the state investment 13
board expense account, the state investment board commingled trust 14
fund accounts, the state patrol highway account, the state 15
reclamation revolving account, the state route number 520 civil 16
penalties account, the state route number 520 corridor account, the 17
statewide broadband account, the statewide tourism marketing account, 18
the strengthen Washington homes program account, the supplemental 19
pension account, the Tacoma Narrows toll bridge account, the 20
teachers' retirement system plan 1 account, the teachers' retirement 21
system combined plan 2 and plan 3 account, the tobacco prevention and 22
control account, the tobacco settlement account, the toll facility 23
bond retirement account, the transportation 2003 account (nickel 24
account), the transportation equipment fund, the JUDY transportation 25
future funding program account, the transportation improvement 26
account, the transportation improvement board bond retirement 27
account, the transportation infrastructure account, the 28
transportation partnership account, the traumatic brain injury 29
account, the tribal opioid prevention and treatment account, the 30
University of Washington bond retirement fund, the University of 31
Washington building account, the voluntary cleanup account, the 32
volunteer firefighters' relief and pension principal fund, the 33
volunteer firefighters' and reserve officers' administrative fund, 34
the vulnerable roadway user education account, the Washington 35
judicial retirement system account, the Washington law enforcement 36
officers' and firefighters' system plan 1 retirement account, the 37
Washington law enforcement officers' and firefighters' system plan 2 38
retirement account, the Washington public safety employees' plan 2 39
retirement account, the Washington school employees' retirement 40
p. 26 HB 2407
system combined plan 2 and 3 account, the Washington state patrol 1
retirement account, the Washington State University building account, 2
the Washington State University bond retirement fund, the water 3
pollution control revolving administration account, the water 4
pollution control revolving fund, the Western Washington University 5
capital projects account, the Yakima integrated plan implementation 6
account, the Yakima integrated plan implementation revenue recovery 7
account, and the Yakima integrated plan implementation taxable bond 8
account. Earnings derived from investing balances of the agricultural 9
permanent fund, the normal school permanent fund, the permanent 10
common school fund, the scientific permanent fund, and the state 11
university permanent fund shall be allocated to their respective 12
beneficiary accounts. 13
(b) Any state agency that has independent authority over accounts 14
or funds not statutorily required to be held in the state treasury 15
that deposits funds into a fund or account in the state treasury 16
pursuant to an agreement with the office of the state treasurer shall 17
receive its proportionate share of earnings based upon each account's 18
or fund's average daily balance for the period. 19
(5) In conformance with Article II, section 37 of the state 20
Constitution, no treasury accounts or funds shall be allocated 21
earnings without the specific affirmative directive of this section.22
Sec. 16. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 23
2025 c 299 s 22, and 2025 c 228 s 15 are each reenacted and amended 24
to read as follows: 25
(1) All earnings of investments of surplus balances in the state 26
treasury shall be deposited to the treasury income account, which 27
account is hereby established in the state treasury.28
(2) The treasury income account shall be utilized to pay or 29
receive funds associated with federal programs as required by the 30
federal cash management improvement act of 1990. The treasury income 31
account is subject in all respects to chapter 43.88 RCW, but no 32
appropriation is required for refunds or allocations of interest 33
earnings required by the cash management improvement act. Refunds of 34
interest to the federal treasury required under the cash management 35
improvement act fall under RCW 43.88.180 and shall not require 36
appropriation. The office of financial management shall determine the 37
amounts due to or from the federal government pursuant to the cash 38
management improvement act. The office of financial management may 39
p. 27 HB 2407
direct transfers of funds between accounts as deemed necessary to 1
implement the provisions of the cash management improvement act, and 2
this subsection. Refunds or allocations shall occur prior to the 3
distributions of earnings set forth in subsection (4) of this 4
section. 5
(3) Except for the provisions of RCW 43.84.160, the treasury 6
income account may be utilized for the payment of purchased banking 7
services on behalf of treasury funds including, but not limited to, 8
depository, safekeeping, and disbursement functions for the state 9
treasury and affected state agencies. The treasury income account is 10
subject in all respects to chapter 43.88 RCW, but no appropriation is 11
required for payments to financial institutions. Payments shall occur 12
prior to distribution of earnings set forth in subsection (4) of this 13
section. 14
(4) Monthly, the state treasurer shall distribute the earnings 15
credited to the treasury income account. The state treasurer shall 16
credit the general fund with all the earnings credited to the 17
treasury income account except: 18
(a) The following accounts and funds shall receive their 19
proportionate share of earnings based upon each account's and fund's 20
average daily balance for the period: The abandoned recreational 21
vehicle disposal account, the aeronautics account, the Alaskan Way 22
viaduct replacement project account, the budget stabilization 23
account, the capital vessel replacement account, the capitol building 24
construction account, the Central Washington University capital 25
projects account, the charitable, educational, penal and reformatory 26
institutions account, the Chehalis basin account, the Chehalis basin 27
taxable account, the clean fuels credit account, the clean fuels 28
transportation investment account, the cleanup settlement account, 29
the Columbia river basin water supply development account, the 30
Columbia river basin taxable bond water supply development account, 31
the Columbia river basin water supply revenue recovery account, the 32
common school construction fund, the community forest trust account, 33
the connecting Washington account, the county arterial preservation 34
account, the county criminal justice assistance account, the covenant 35
homeownership account, the deferred compensation administrative 36
account, the deferred compensation principal account, the department 37
of licensing services account, the department of retirement systems 38
expense account, the developmental disabilities community services 39
account, the diesel idle reduction account, the opioid abatement 40
p. 28 HB 2407
settlement account, the drinking water assistance account, the 1
administrative subaccount of the drinking water assistance account, 2
the driver education safety improvement account, the early learning 3
facilities development account, the early learning facilities 4
revolving account, the Eastern Washington University capital projects 5
account, the education legacy trust account, the election account, 6
the electric vehicle account, the energy freedom account, the energy 7
recovery act account, the essential rail assistance account, The 8
Evergreen State College capital projects account, the fair start for 9
kids account, the family medicine workforce development account, the 10
ferry bond retirement fund, the fish, wildlife, and conservation 11
account, the freight mobility investment account, the freight 12
mobility multimodal account, the grade crossing protective fund, the 13
higher education retirement plan supplemental benefit fund, the 14
Washington student loan account, the highway bond retirement fund, 15
the highway infrastructure account, the highway safety fund, the 16
hospital safety net assessment fund, the intelligent speed assistance 17
device revolving account, the Interstate 5 bridge replacement project 18
account, the Interstate 405 and state route number 167 express toll 19
lanes account, the judges' retirement account, the judicial 20
retirement administrative account, the judicial retirement principal 21
account, the limited fish and wildlife account, the local leasehold 22
excise tax account, the local real estate excise tax account, the 23
local sales and use tax account, the marine resources stewardship 24
trust account, the medical aid account, the money-purchase retirement 25
savings administrative account, the money-purchase retirement savings 26
principal account, the motor vehicle fund, the motorcycle safety 27
education account, the move ahead WA account, the move ahead WA 28
flexible account, the multimodal transportation account, the multiuse 29
roadway safety account, the municipal criminal justice assistance 30
account, the oyster reserve land account, the pension funding 31
stabilization account, the perpetual surveillance and maintenance 32
account, the pilotage account, the pollution liability insurance 33
agency underground storage tank revolving account, the public 34
employees' retirement system plan 1 account, the public employees' 35
retirement system combined plan 2 and plan 3 account, the public 36
facilities construction loan revolving account, the public health 37
supplemental account, the public works assistance account, the Puget 38
Sound capital construction account, the Puget Sound ferry operations 39
account, the Puget Sound Gateway facility account, the Puget Sound 40
p. 29 HB 2407
taxpayer accountability account, the real estate appraiser commission 1
account, the recreational vehicle account, the regional mobility 2
grant program account, the reserve officers' relief and pension 3
principal fund, the resource management cost account, the rural 4
arterial trust account, the rural mobility grant program account, the 5
rural Washington loan fund, the second injury fund, the sexual 6
assault prevention and response account, the site closure account, 7
the skilled nursing facility safety net trust fund, the small city 8
pavement and sidewalk account, the special category C account, the 9
special wildlife account, the state hazard mitigation revolving loan 10
account, the state investment board expense account, the state 11
investment board commingled trust fund accounts, the state patrol 12
highway account, the state reclamation revolving account, the state 13
route number 520 civil penalties account, the state route number 520 14
corridor account, the statewide broadband account, the statewide 15
tourism marketing account, the strengthen Washington homes program 16
account, the supplemental pension account, the Tacoma Narrows toll 17
bridge account, the teachers' retirement system plan 1 account, the 18
teachers' retirement system combined plan 2 and plan 3 account, the 19
tobacco prevention and control account, the tobacco settlement 20
account, the toll facility bond retirement account, the 21
transportation 2003 account (nickel account), the transportation 22
equipment fund, the JUDY transportation future funding program 23
account, the transportation improvement account, the transportation 24
improvement board bond retirement account, the transportation 25
infrastructure account, the transportation partnership account, the 26
traumatic brain injury account, the tribal opioid prevention and 27
treatment account, the University of Washington bond retirement fund, 28
the University of Washington building account, the voluntary cleanup 29
account, the volunteer firefighters' relief and pension principal 30
fund, the volunteer firefighters' and reserve officers' 31
administrative fund, the vulnerable roadway user education account, 32
the Washington judicial retirement system account, the Washington law 33
enforcement officers' and firefighters' system plan 1 retirement 34
account, the Washington law enforcement officers' and firefighters' 35
system plan 2 retirement account, the Washington public safety 36
employees' plan 2 retirement account, the Washington school 37
employees' retirement system combined plan 2 and 3 account, the 38
Washington state patrol retirement account, the Washington State 39
University building account, the Washington State University bond 40
p. 30 HB 2407
retirement fund, the water pollution control revolving administration 1
account, the water pollution control revolving fund, the Western 2
Washington University capital projects account, the Yakima integrated 3
plan implementation account, the Yakima integrated plan 4
implementation revenue recovery account, and the Yakima integrated 5
plan implementation taxable bond account. Earnings derived from 6
investing balances of the agricultural permanent fund, the normal 7
school permanent fund, the permanent common school fund, the 8
scientific permanent fund, and the state university permanent fund 9
shall be allocated to their respective beneficiary accounts.10
(b) Any state agency that has independent authority over accounts 11
or funds not statutorily required to be held in the state treasury 12
that deposits funds into a fund or account in the state treasury 13
pursuant to an agreement with the office of the state treasurer shall 14
receive its proportionate share of earnings based upon each account's 15
or fund's average daily balance for the period. 16
(5) In conformance with Article II, section 37 of the state 17
Constitution, no treasury accounts or funds shall be allocated 18
earnings without the specific affirmative directive of this section.19
NEW SECTION. Sec. 17. (1) Section 11 of this act expires the 20
earlier of July 1, 2028, or when RCW 74.76.040 expires.21
(2) Section 12 of this act expires July 1, 2028.22
(3) Section 13 of this act expires the earlier of January 1, 23
2029, or when RCW 74.76.040 expires. 24
(4) Section 14 of this act expires January 1, 2029.25
(5) Section 15 of this act expires when RCW 74.76.040 expires.26
NEW SECTION. Sec. 18. (1) Section 12 of this act takes effect 27
when RCW 74.76.040 expires.28
(2) Sections 13 and 14 of this act take effect July 1, 2028.29
(3) Sections 15 and 16 of this act take effect January 1, 2029.30
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p. 31 HB 2407