Washington state public bank

AN ACT Relating to the creation of the Washington state public 1
bank; amending RCW 39.59.040, 43.10.067, and 43.84.080; reenacting 2
and amending RCW 42.56.270 and 42.56.400; adding a new section to 3
chapter 43.08 RCW; adding a new chapter to Title 43 RCW; and creating 4
a new section. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. FINDINGS AND INTENT. The legislature finds 7
that Washington state needs to drastically increase our public 8
financing capacity without raising taxes on working families or 9
financial debt obligations of the state.10
The legislature finds that the infrastructure needs of our state 11
far outstrip our ability to finance them under our current public 12
financing model, which relies heavily on bonding. This reliance on 13
bonding diverts much needed and hard-earned tax revenues of our 14
taxpayers from critical programs that benefit them and the state.15
The legislature finds that public financing for public benefit is 16
a much better strategy than private financing for public benefit and 17
that most of the developed world uses public banks to finance public 18
initiatives. Publicly owned banking is a much more efficient model 19
for public financing and is proven and used around the world. The 20
H-2955.1
HOUSE BILL 2556
State of Washington 69th Legislature 2026 Regular Session
By Representatives Santos, Ormsby, Street, Chase, Parshley, Ramel,
Gregerson, Obras, Macri, Pollet, Duerr, Thomas, and Hill
Read first time 01/19/26. Referred to Committee on Consumer
Protection & Business.
p. 1 HB 2556
United States is more an anomaly than the norm in depending on 1
private banking and investments to finance public initiatives.2
The legislature further finds that there exists one public 3
financing model in the United States, which is the Bank of North 4
Dakota. The Bank of North Dakota is the only public depository 5
banking model in the United States that is owned by the people of the 6
state and has existed for over 100 years, overcoming tremendous 7
opposition efforts by the banking industry and financiers to squash 8
it. It regularly reports record annual profits for the people of the 9
state of North Dakota, who are very proud of their public institution 10
because it benefits their economy and supports economic development, 11
supports local community banks, provides access to capital for small 12
businesses and farmers, aids the state in times of disasters, can 13
lower borrowing costs, streamlines government, creates profits for 14
the people, and is generally recognized as a tremendous asset for the 15
state. 16
The legislature finds that our state has many revolving loan 17
accounts that do good work, but they are limited in the sense that 18
they can only lend as much money as is in the account and can only 19
lend more money after the accounts have been repaid. Examples of 20
these accounts are the public works assistance account, accounts for 21
the community economic revitalization board, the transportation 22
infrastructure bank (which is not a depository bank), and more. These 23
accounts would be able to lend well beyond their current appropriated 24
capacity when powered by a publicly owned depository bank where the 25
deposits allow leveraging of the bank's core capital capacity.26
The legislature finds that, based on a 2023 report, Moody's 27
calculates that Washington state has the fifth highest level of debt 28
service as a percentage of general fund revenues amongst all states.29
Chapter 415, Laws of 2025, last year's capital budget bond bill, 30
proposes issuing $5 billion of bonds this biennium to finance our 31
capital budget. To do a general calculation of the total cost of $5 32
billion in bonds over 20 years, the bond's face value, $5 billion, 33
would need to be multiplied by the total interest accrued over the 34
term of the bonds, 20 years, which depends on the interest rate of 35
the bond. The 20-year treasury bond issued on January 31, 2025, had a 36
rate of 4.625 percent. 37
The legislature finds that bond costs including fees can double 38
the costs of financing or more, depending on the interest rates at 39
the time of issuance. For example, if a $5 billion bond had a five 40
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percent annual interest rate maturing in 20 years, the total cost of 1
the $5 billion bond to the state's general fund would be $10 billion. 2
The interest per year would be $5 billion multiplied by five percent, 3
which equals $250 million. The total cost would be $5 billion, the 4
bond principal, plus $5 billion, the total interest, which equals $10 5
billion. Similarly, the total cost of the same $5 billion bonds over 6
30 years is: $5 billion, the principal, plus $7.5 billion, the 7
interest, equals $12.5 billion. 8
The legislature finds that creating a state-owned depository bank 9
and, for example, keeping $500 million in reserves in the publicly 10
owned bank would safely leverage out to provide the same $5 billion 11
in financing capacity necessary to fund the capital budget without 12
the need for a 2025-style capital budget bond bill. A state-owned 13
depository bank would help meet our infrastructure financing needs 14
without raising taxes or increasing debt obligation of the state's 15
general fund, allowing the general fund to be fully used for the 16
benefit of the people rather than providing profits for Wall Street 17
investors. 18
The legislature finds that fractional reserve banking is standard 19
banking practice in the United States and around the world. It is a 20
banking system where banks keep a portion of deposits on reserve and 21
lend the rest. This system allows banks to create loans and expand 22
the economy. While the United States has no specific reserve 23
requirement, a 10 percent reserve is standard banking practice and 24
considered safe under standard banking regulations and practices and 25
given other forms of access to liquidity. In other words, $1 billion 26
held in reserves in a publicly owned depository bank and leveraged 27
with our tax revenue as deposits would provide $10 billion in loan 28
capacity and would generate profits for the people of the state 29
through interest rate of return on the $10 billion as loans. This 30
would amount to a tenfold increase in the infrastructure financing 31
capacity of the original $1 billion, stimulate our economy, and 32
create jobs, while simultaneously lowering borrowing costs and still 33
making a profit for the people of the state. 34
For example, if a revolving loan account of $1 billion lends all 35
$1 billion at five percent interest, the account makes $50 million in 36
interest. However, that same $1 billion held in any commercial 37
depository bank charging five percent interest can leverage those 38
same funds up to 10 times and makes profits for shareholders of $500 39
million. A publicly owned depository bank can charge whatever lower 40
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interest rate it chooses, for example two percent, or it can charge 1
zero percent for some smaller loans financing the most emergent needs 2
and supported by the legislature, and still make money for the 3
people. $1 billion multiplied by two percent and 10, the leverage, 4
equals a $200 million profit for the people, and the low interest 5
loans it makes to the state and local governments go back into 6
Washington's local economies, fund needed programs in our state, and 7
create jobs rather than profits for large banks, bond brokers, and 8
investment firms. 9
The legislature finds that the state and political subdivisions 10
already hold billions of dollars in reserves and accounts, which can 11
be held in the publicly owned depository bank and can be used either 12
as equity capital or general deposits in a depository account.13
The legislature finds that, through a state publicly owned bank, 14
the state could borrow from itself at rates the state decides, and 15
repay the state, thereby growing the state's capacity to finance more 16
infrastructure while also making profits for the people of the state, 17
not for Wall Street investors. A state-owned bank would allow the 18
state to keep tax revenues in the state and working for the state 19
instead of exporting tax revenues as an engine for profits to Wall 20
Street investors. 21
The legislature finds that banks use deposits to leverage the 22
capital that owners have used to create the bank, known as equity 23
capital. A fundamental standard banking practice is that banks can 24
use their deposits to leverage the lending capacity of their equity 25
capital up to tenfold, which is accepted throughout the banking 26
industry as safe and standard banking practice. 27
The legislature finds that by creating a bank, which is owned by 28
the people of the state of Washington, and using it as the depository 29
for taxes paid by the people of the state instead of using Wall 30
Street banks, the state of Washington could recapture the power of 31
our tax dollars for the benefit of the state and drastically increase 32
our public financing capacity by an order of magnitude and at lower 33
costs without raising taxes or increasing state debt.34
The legislature intends to create a depository bank, owned and 35
operated for the beneficial interests of the people of the state of 36
Washington. The state shall, and political subdivisions may, use this 37
publicly owned bank as the primary depository institution for tax 38
revenue and other funds currently held at large financial 39
institutions. The state and political subdivisions are not prohibited 40
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from holding some deposits in local community banks, credit unions, 1
or other financial institutions when it serves the best interests of 2
the people. 3
The legislature intends for the state treasurer to transfer as 4
much of the state's general fund and concentration account into the 5
publicly owned depository bank as is deemed necessary and prudent by 6
the board to facilitate the growth of the bank with the goal of 7
eventually transferring all state moneys currently held in deposit at 8
large Wall Street banks. 9
The legislature further intends for this public depository bank 10
to follow best banking and prudent management practices with 11
appropriate levels of transparency, accountability, integrity, and 12
oversight by the appropriate financial industry regulatory 13
institutions. The legislature further intends for the board to ensure 14
the long-term financial success of the bank as a foundational 15
facility for future generations of Washingtonians to address the 16
needs of their time, which are impossible to predict now other than 17
to recognize the state will need resources to achieve the state's 18
goals, which this bank will provide. 19
The legislature further intends for this public depository bank 20
to provide adequate financing capacity and access to capital for 21
local governments in the state to finance infrastructure, support 22
educational, housing, transportation, health care, and economic 23
development, and other unmet infrastructure and banking and lending 24
needs of local governments, the state, and the people, and, to the 25
greatest extent possible, reduce costs of borrowed money to taxpayers 26
and residents of the state. The legislature further intends for the 27
best interests of the people to be the paramount duty of the publicly 28
owned depository bank. 29
NEW SECTION. Sec. 2. This act may be known and cited as the 30
public banking for public benefit act.31
NEW SECTION. Sec. 3. DEFINITIONS. The definitions in this 32
section apply throughout this chapter unless the context clearly 33
requires otherwise.34
(1) "Board" means the operating board of the public bank 35
established in section 4 of this act. 36
(2) "Bonds" means any bonds, notes, debentures, interim 37
certificates, conditional sales or lease financing agreements, lines 38
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of credit, forward purchase agreements, investment agreements, and 1
other banking or financial arrangements, guaranties, or other 2
obligations issued by or entered into by the public bank, which does 3
not create state debt. Such bonds may be issued on either a tax-4
exempt or taxable basis. 5
(3) "Borrower" means one or more local or tribal governments.6
(4) "Financial assistance" means the infusion of capital to a 7
borrower for use in the planning, acquisition, construction, repair, 8
replacement, rehabilitation, development, and expansion of 9
infrastructure and economic development projects. 10
(5) "Financing agreements" means, and includes without 11
limitation, a contractual arrangement with a borrower whereby the 12
public bank obtains rights from a borrower in exchange for the 13
granting of financial assistance to the borrower. 14
(6) "Financing document" means an instrument executed by the 15
public bank and one or more borrowers pertaining to the issuance of 16
or security for bonds, or the application of the proceeds of bonds or 17
other funds of, or payable to, the public bank. A "financing 18
document" may include, but need not be limited to, a lease, 19
installment sale agreement, conditional sale agreement, mortgage, 20
loan agreement, trust agreement or indenture, security agreement, 21
letter or line of credit, reimbursement agreement, insurance policy, 22
guaranty agreement, or currency or interest rate swap agreement. A 23
"financing document" also may be an agreement between the public bank 24
and an eligible banking organization which has agreed to make a loan 25
to a borrower. 26
(7) "Infrastructure project" means undertakings for the planning, 27
acquisition, construction, repair, replacement, rehabilitation, or 28
improvement of streets and roads, bridges, water systems, storm and 29
sanitary sewage systems, solid waste handling, pollution control 30
facilities, schools, communications systems, docks and wharves, mass 31
transportation facilities and equipment, public housing, fire 32
suppressing and emergency services equipment and facilities, energy 33
generating, conservation, or transmission facilities, and other 34
public infrastructure deemed eligible by the board.35
(8) "Local government" means any Washington city, town, county, 36
special purpose district, authority, instrumentality, or other local 37
municipal or interlocal entity created pursuant to Washington law.38
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(9) "Member" means the state government, a local government, or a 1
tribal government that has joined the public bank consistent with 2
section 5 of this act. 3
(10) "Project costs" means costs of: 4
(a) Acquisition, lease, construction, reconstruction, remodeling, 5
refurbishing, rehabilitation, extension, and enlargement of land, 6
rights to land, buildings, structures, docks, wharves, fixtures, 7
machinery, equipment, excavations, paving, landscaping, utilities, 8
approaches, roadways and parking, handling and storage areas, and 9
similar ancillary facilities, and any other real or personal property 10
included in an infrastructure project; 11
(b) Architectural, engineering, consulting, accounting, and legal 12
costs related directly to the development, financing, acquisition, 13
lease, construction, reconstruction, remodeling, refurbishing, 14
rehabilitation, extension, and enlargement of an infrastructure 15
project, including costs of studies assessing the feasibility of an 16
infrastructure project; 17
(c) Finance costs, including the costs of credit enhancement and 18
discounts, if any, the costs of issuing revenue bonds, and the costs 19
incurred in carrying out any financing document; 20
(d) Start-up costs, working capital, capitalized research and 21
development costs, capitalized interest during construction and 22
during the 18 months after estimated completion of construction, and 23
capitalized debt service or repair and replacement or other 24
appropriate reserves; 25
(e) The refunding of any outstanding obligations incurred for any 26
of the costs outlined in this subsection; and 27
(f) Other costs incidental to any of the costs listed in this 28
subsection. 29
(11) "Public bank" means the Washington state public bank 30
established in section 4 of this act, or any board, body, commission, 31
department, or officer succeeding to the principal functions of the 32
public bank or to whom the powers conferred upon the public bank are 33
given by law. 34
(12) "State" means the state of Washington and any department, 35
agency, or instrumentality thereof other than the public bank.36
(13) "Tribal government" means the governing body of a federally 37
recognized Indian tribe. 38
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NEW SECTION. Sec. 4. ESTABLISHMENT. (1) The Washington state 1
public bank is established as a public body corporate and politic, 2
with perpetual corporate succession, constituting an instrumentality 3
of the state of Washington exercising essential governmental 4
functions. The public bank is a public body as defined in RCW 5
39.53.010.6
(2)(a) The public bank is activated when: 7
(i) An appropriation that is sufficient to capitalize the public 8
bank so that it can issue debt with a competitive rating is provided. 9
This appropriation may be from either state funds or federal funds, 10
or from any combination of both. The state treasurer shall provide 11
sufficient funding to capitalize the public bank; and12
(ii) Executed articles of activation in a form approved by the 13
state finance committee are filed with the secretary of state.14
(b) The public bank is deemed to have been formed as of the date 15
of filing articles of activation under (a)(ii) of this subsection. 16
The articles of activation must be approved by the legislative 17
authority of each of the member local or tribal governments that 18
subsequently becomes a member. Each member local or tribal government 19
must provide to the public bank a contribution of an amount approved 20
by the state finance committee, and the board may subsequently adjust 21
the minimum contribution level for current and new members. Any 22
amendments to the articles of activation must be filed with the 23
secretary of state and become effective on the date of filing.24
(3) The state treasurer shall transfer as much of the state's 25
general fund and concentration account into the public bank as is 26
deemed necessary and prudent by the board to facilitate the growth of 27
the bank with the goal of eventually transferring all state moneys 28
currently held in deposit at large Wall Street banks.29
(4) A duplicate of the original articles of activation and 30
amended articles of activation must be filed with the department of 31
financial institutions. The filing of amended articles of activation 32
must include the text of each amendment adopted and the date of its 33
adoption. The public bank must also file the following with the 34
department of financial institutions: 35
(a) The address of the location of the main office of the public 36
bank; 37
(b) The names and places of residence of the persons who are 38
directors under this section; 39
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(c) The name and place of residence of the executive director 1
hired by the board in accordance with this section;2
(d) Bylaws and regulations adopted and amended by the board under 3
section 5 of this act; and 4
(e) Any other information the director of the department of 5
financial institutions deems necessary to perform a review of the 6
funds placed with the public bank and the accounts and transactions 7
of the public bank in carrying out the public bank's duties, as 8
provided in this section. 9
(5)(a) The operating board of the public bank consists of nine 10
directors. Terms of directors are four years, with half of the 11
initial directors other than the initial chair serving two-year terms 12
as determined by lot, with those positions being filled for four-year 13
terms thereafter. 14
(b) Five member appointed directors must be selected by a 15
majority of the members of the public bank. Member appointed 16
directors must be elected local or tribal government officials. Three 17
public directors must be appointed by the governor and confirmed by 18
the senate. The public directors must be residents of the state 19
appointed by the governor on the basis of their interest and 20
expertise in finance, accounting, budgeting, economic development, 21
infrastructure planning, design, construction, or project management. 22
The state treasurer shall serve as an ex officio director.23
(c) One of the public members shall be appointed by the governor 24
as chair of the board and shall serve as chair at the pleasure of the 25
governor. The initial chair must serve a full four-year term. The 26
public bank may select from its membership such other officers of the 27
public bank as it deems appropriate, including without limitation a 28
secretary and a treasurer. 29
(d) In the event of a vacancy on the board due to death, 30
resignation, lack of qualification to serve as a director, or 31
otherwise, a successor for the remainder of the unexpired term shall 32
be selected in the same manner as the selection of the director whose 33
position has become vacant. Any independent member of the public bank 34
may be removed by the governor for misfeasance, malfeasance, or 35
willful neglect of duty after notice and a public hearing, unless 36
such notice and hearing are expressly waived in writing by the 37
affected public member. 38
(e) The state treasurer may designate an employee to act on the 39
treasurer's behalf in all respects with regard to any matter to come 40
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before the public bank. The designation must be made in writing in 1
such manner as is specified by the rules of the public bank.2
(f) A majority of the directors constitutes a quorum.3
(g) The directors of the public bank serve without compensation 4
but are entitled to reimbursement, solely from the funds of the 5
public bank, for expenses incurred in the discharge of their duties 6
under this chapter. 7
(6) The state finance committee serves as the oversight board of 8
the public bank. In that capacity, the state finance committee must 9
carry out the responsibilities specified in this chapter. In 10
addition, the state finance committee may at its discretion require 11
independent audits of the accounts and transactions of the public 12
bank and the methods, procedures, and operation of the public bank in 13
carrying out its duties. 14
(7) The public bank is a state agency subject to audit by the 15
state auditor under chapter 43.09 RCW. In addition, the department of 16
financial institutions may, at the discretion of the director of 17
financial institutions, review the funds placed with the public bank 18
and the accounts and transactions of the public bank in carrying out 19
the public bank's duties. Nothing in this subsection establishes that 20
the public bank is an institution or entity otherwise subject to the 21
jurisdiction of the department of financial institutions.22
(8) The board has the authority to hire and fire an executive 23
director. The executive director must be funded in the office of the 24
state treasurer budget and shall administer and operate the 25
Washington state public bank. 26
(9) The public bank's administration and operation must initially 27
be performed by employees of the office of the state treasurer, 28
subject to the terms of one or more agreements between the public 29
bank and the office of the state treasurer concerning 30
responsibilities of the office of the state treasurer's staff and 31
compensation of the office of the state treasurer.32
(10) The board must approve the budget of the public bank 33
annually. 34
(11) The board shall establish an internal audit committee.35
(12) The public bank shall prioritize investments that increases 36
the supply of public housing. 37
(13) The public bank must not be or constitute a bank or trust 38
company within the jurisdiction or under the control of the director 39
of financial institutions, the comptroller of the currency of the 40
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United States of America, or the United States department of the 1
treasury. 2
(14) The public bank must not be or constitute a bank, broker, or 3
dealer in securities within the meaning of, or subject to the 4
provisions of, any securities, securities exchange, or securities 5
dealers' law of the United States of America or this state.6
(15) The public bank may not issue bonds in a manner that would 7
create state debt. 8
NEW SECTION. Sec. 5. POWERS. The public bank may:9
(1) Sue and be sued in its own name, and plead and be impleaded;10
(2) Adopt and alter an official seal; 11
(3) Make and enforce bylaws and regulations for the conduct of 12
its business and for the use of its services and facilities;13
(4) Engage such independent consultants, attorneys, and advisers 14
as the public bank deems necessary, useful, or convenient to 15
accomplish its purposes, and, subject to section 6 of this act, 16
contract with federal, state, and local or tribal governmental 17
entities for services; 18
(5) Make and execute all manner of contracts, agreements, and 19
instruments and financing documents with public and private parties 20
as the public bank deems necessary, useful, or convenient to 21
accomplish its purposes; 22
(6) Acquire, hold, use, and dispose of real or personal property, 23
or any interest therein, in the name of the public bank, and to sell, 24
assign, lease, encumber, mortgage, or otherwise dispose of the same 25
in such manner as the public bank deems necessary, useful, or 26
convenient to accomplish its purposes; 27
(7) Acquire, hold, use, and dispose of its income, revenues, 28
funds, and money; 29
(8) Receive funds or deposits from state, local, or tribal 30
governments, invest those moneys in lawful funds, including without 31
limitation investments in loans made by the public bank to borrowers;32
(9) Open and maintain accounts in qualified public depositaries; 33
in the federal reserve bank of San Francisco, in the national 34
cooperative bank, in a federal home loan bank, or in any other 35
federal financing entity, and otherwise provide for the investment of 36
any funds not required for immediate disbursement and provide for the 37
selection of investments. The public bank may participate in and use 38
the federal reserve banks payments systems and account services;39
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(10) Appear in its own behalf before boards, commissions, 1
departments, or agencies of federal, state, local, or tribal 2
governments; 3
(11) Procure such insurance of such types, in such amounts, and 4
from such insurers as the public bank deems desirable including, but 5
not limited to, insurance against any loss or damage to its property 6
or other assets, public liability insurance for injuries to persons 7
or property, and directors and officers liability insurance;8
(12) Accept gifts or grants from the United States, or from any 9
governmental unit or person, firm, or corporation, carry out the 10
terms or provisions or make agreements with respect to the gifts or 11
grants, and do all things necessary, useful, desirable, or convenient 12
in connection with procuring, accepting, or disposing of the gifts or 13
grants; 14
(13) Apply for and accept grants, loans, advances, and 15
contributions from any source of money, property, labor, or other 16
things of value, to be held, used, and applied as the public bank 17
deems necessary, useful, or convenient to accomplish its purposes;18
(14) Borrow money and issue its bonds consistent with this 19
chapter and provide for and secure their payment, provide for the 20
rights of bond owners and purchasers, and hold and dispose of any of 21
its bonds; 22
(15) For the purpose of facilitating the financing of 23
infrastructure and economic development activity in the state of 24
Washington by the state or local or tribal governments, develop and 25
conduct a program or programs to make loans to borrowers for project 26
costs of infrastructure and economic development projects. Those 27
loans may be made from the proceeds of bonds issued by the public 28
bank, from funds held by the public bank, and from other assets of 29
the public bank including contributions. The public bank may develop 30
and conduct a program that stimulates and encourages the development 31
of infrastructure and economic development projects by the infusion 32
of financial assistance for state, local, or tribal governments;33
(16) Establish guidelines for the engagement by state, local, or 34
tribal governments in programs conducted by the public bank under 35
this chapter. The public bank may prescribe the form of application 36
or procedure required of a borrower for a loan, fix the terms and 37
conditions of the loan or purchase, and enter into financing 38
agreements and other financing documents with borrowers with respect 39
to loans and other forms of financial assistance; 40
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(17) Establish, revise, and collect such member contributions and 1
such fees and charges as the public bank deems necessary, useful, or 2
convenient to accomplish its purposes. Members may make such 3
contributions, and state, local, and tribal governments may pay such 4
fees and charges; 5
(18) Make such expenditures as are appropriate for paying the 6
administrative costs and expenses of the public bank in carrying out 7
the provisions of this chapter; 8
(19) Establish such reserves and special funds, including but not 9
limited to debt service and sinking funds, reserve funds, project 10
funds, and such other special funds as the public bank deems 11
necessary, useful, or convenient, and controls on funds to and from 12
them, as the public bank deems necessary, useful, or convenient to 13
accomplish its purposes; 14
(20) Provide financial assistance and other forms of assistance 15
to state, local, or tribal governments by providing information, 16
advice, guidelines, forms, and procedures for implementing their 17
financing programs; 18
(21) When authorized by not less than two-thirds of the members 19
of the board, make distributions to members of amounts that the board 20
deems surplus to the needs of the public bank; 21
(22) Engage outside legal counsel, while receiving counsel on a 22
routine basis from the office of the attorney general;23
(23) Adopt rules concerning its exercise of the powers authorized 24
by this chapter; and 25
(24) Exercise any other power the public bank deems necessary, 26
useful, or convenient to accomplish its purposes and exercise the 27
powers expressly granted in this chapter. 28
NEW SECTION. Sec. 6. FINANCING POWERS. (1) Bonds issued under 29
this chapter must be issued in the name of the public bank. The bonds 30
are not obligations of the state of Washington, may not create state 31
debt, and are obligations only of the public bank payable from the 32
special fund or funds created by the public bank for their payment. 33
Such funds are not public moneys or funds of the state of Washington 34
and at all times must be kept segregated and set apart from other 35
funds.36
(2) Bonds issued under this chapter must contain a recital on 37
their face to the effect that payment of the principal of, interest 38
on, and prepayment premium, if any, on the bonds, is a valid claim 39
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only as against the special fund or funds relating thereto, that 1
neither the faith and credit nor the taxing power of the state or any 2
municipal corporation, subdivision, or agency of the state, other 3
than the public bank as set forth in this chapter, is pledged to the 4
payment of the principal of, interest on, and prepayment premium, if 5
any, on the bonds. Contracts entered into by the public bank must be 6
entered into in the name of the public bank and not in the name of 7
the state of Washington. The obligations of the public bank under the 8
contracts must be obligations only of the public bank and are not in 9
any way obligations of the state of Washington. 10
(3) The public bank's bonds must bear such date or dates, mature 11
at such time or times, be in such denominations, be in such form, be 12
registered or registrable in such manner, be made transferable, 13
exchangeable, and interchangeable, be payable in such medium of 14
payment, at such place or places, be subject to such terms of 15
redemption, bear such fixed or variable rate or rates of interest, be 16
payable at such time or times, and be sold in such manner and at such 17
price or prices, as the public bank determines. The bonds must be 18
executed by the chair, by either its duly elected secretary or its 19
treasurer, and by the trustee or paying agent if the public bank 20
determines to use a trustee or paying agent for the bonds. Execution 21
of the bonds may be by manual or facsimile signature. The bonds of 22
the public bank may be negotiable instruments under Title 62A RCW.23
(4) The bonds of the public bank are subject to such terms, 24
conditions, covenants, and protective provisions as are found 25
necessary or desirable by the public bank including, but not limited 26
to, pledges of the public bank's assets, setting aside of reserves, 27
limitations on additional forms of indebtedness, and the mortgaging 28
of all or any part of the public bank's real or personal property, 29
then owned or thereafter acquired, and other provisions the public 30
bank finds are necessary or desirable for the security of bond 31
owners. 32
(5) Any bonds issued under this chapter may be secured by a 33
financing document between the public bank and the purchasers or 34
owners of such bonds or between the public bank and a corporate 35
trustee appointed by the public bank, which may be any trust company 36
or bank having the powers of a trust company within or without the 37
state. The financing document may pledge or assign, in whole or in 38
part, the revenues and funds held or to be received by the public 39
bank, any present or future contract or other rights to receive the 40
p. 14 HB 2556
same, and the proceeds thereof. The financing document must contain 1
such provisions for protecting and enforcing the rights, security, 2
and remedies of bond owners as may be reasonable and proper 3
including, without limiting the generality of the foregoing, 4
provisions defining defaults and providing for remedies in the event 5
of default which may include the acceleration of maturities, 6
restrictions on the individual rights of action by bond owners, and 7
covenants setting forth duties of and limitations on the public bank 8
in conduct of its programs and the management of its property. In 9
addition to other security provided in this chapter or otherwise by 10
law, bonds issued by the public bank may be secured, in whole or in 11
part, by a pledge of the assets of the public bank, including 12
contributions of the members, or by financial guaranties, insurance 13
or letters of credit issued to the public bank or a trustee or any 14
other person, by any bank, trust company, insurance or surety 15
company, or other financial institution, within or without the state. 16
The public bank may pledge or assign, in whole or in part, the 17
revenues and funds held or to be received by the public bank, any 18
present or future contract or other rights to receive the same, and 19
the proceeds thereof, as security for such guaranties or insurance or 20
for the reimbursement by the public bank to any issuer of such letter 21
of credit of any payments made under such letter of credit. No 22
individual member is liable to the public bank, to the public bank's 23
trustee, or to any other person in amounts exceeding the member's 24
contribution unless authorized by a majority of the members of the 25
public bank. 26
(6) The public bank may enter into financing documents with 27
borrowers regarding bonds issued by the public bank that may provide 28
for the payment by each borrower of amounts sufficient, together with 29
other revenues available to the public bank, if any, to:30
(a) Pay the borrower's share of the fees established by the 31
public bank; 32
(b) Pay the principal of, premium, if any, and interest on 33
outstanding bonds of the public bank issued in respect of such 34
borrower as the same shall become due and payable; and35
(c) Create and maintain reserves required or provided for by the 36
public bank in connection with the issuance of such bonds. The 37
payments are not subject to supervision or regulation by any 38
department, committee, board, body, bureau, or agency of the state 39
other than the public bank. 40
p. 15 HB 2556
(7) Any security interest created in the unexpended bond proceeds 1
and in the special funds created by the public bank must be 2
immediately valid and binding against such moneys and any securities 3
in which such moneys may be invested without public bank or trustee 4
possession thereof, and the security interest is prior to any party 5
having any competing claim in such moneys or securities, without 6
filing or recording pursuant to chapter 62A.9A RCW and regardless of 7
whether the party has notice of the security interest.8
(8) When issuing bonds, the public bank may provide for the 9
future issuance of additional bonds or parity debt on a parity with 10
outstanding bonds, and the terms and conditions of their issuance. 11
The public bank may refund or advance refund any bond of the public 12
bank in accordance with chapter 39.53 RCW or issue bonds with a 13
subordinate lien against the fund or funds securing outstanding 14
bonds. Bonds issued for refunding purposes may be combined with bonds 15
issued for the financing or refinancing of new projects. Pending the 16
application of the proceeds of the refunding bonds to the redemption 17
of the bonds to be redeemed, the public bank may enter into an 18
agreement or agreements with a corporate trustee regarding the 19
interim investment of the proceeds and the application of the 20
proceeds and the earnings on the proceeds to the payment of the 21
principal of and interest on, and the redemption of, the bonds to be 22
redeemed. 23
(9) All money received by or on behalf of the public bank with 24
respect to this issuance of its bonds are trust funds to be held and 25
applied solely as provided in this chapter. The public bank, instead 26
of receiving and applying the moneys itself, may enter into a trust 27
agreement or indenture with one or more banks, including the national 28
cooperative bank, or trust companies having the power and bank to 29
conduct trust business in the state to: 30
(a) Perform all or any part of the obligations of the public bank 31
with respect to: (i) Bonds issued by it; (ii) the receipt, 32
investment, and application of the proceeds of the bonds and money 33
paid by a participant or available from other sources for the payment 34
of the bonds; (iii) the enforcement of the obligations of a borrower 35
in connection with the financing or refinancing of any project; and 36
(iv) other matters relating to the exercise of the public bank's 37
powers under this chapter; 38
p. 16 HB 2556
(b) Receive, hold, preserve, and enforce any security interest or 1
evidence of security interest granted by a participant for purposes 2
of securing the payment of the bonds; and 3
(c) Act on behalf of the public bank or the owners of bonds of 4
the public bank for purposes of assuring or enforcing the payment of 5
the bonds, when due. 6
(10) The public bank may purchase its bonds with any of its funds 7
available for the purchase. The public bank may hold, pledge, cancel, 8
or resell the bonds subject to and in accordance with agreements with 9
bond owners. 10
(11) The chair of the state finance committee or the chair's 11
designee must be notified in advance of the issuance of bonds by the 12
public bank in order to promote the orderly offering of obligations 13
in the financial markets. 14
(12) Neither the members of the public bank, nor its directors or 15
agents, nor employees of the office of the state treasurer, nor any 16
person executing the bonds, is personally liable on the bonds or 17
subject to any personal liability or accountability by reason of the 18
issuance of the bonds. 19
(13) The public bank may, out of any fund available therefor, 20
purchase its bonds in the open market. 21
(14) Any owner of bonds of the public bank issued under this 22
chapter, and the trustee under any trust agreement or indenture, may, 23
either at law or in equity, by suit, action, mandamus, or other 24
proceeding, protect and enforce any of their respective rights, and 25
may become the purchaser at any foreclosure sale if the person is the 26
highest bidder, except to the extent the rights given are restricted 27
by the public bank in any bond resolution or trust agreement or 28
indenture authorizing the issuance of the bonds. 29
(15) The public bank may charge for its costs and services in 30
review or consideration of a proposed loan to a state, local, or 31
tribal government, whether or not the loan is made.32
(16) To the extent permitted under its contracts with the owners 33
of bonds of the public bank, the public bank may consent to 34
modification of the rate of interest, time and payment of installment 35
of principal or interest, security, or any other term of a bond or 36
note, loan to a state, local, or tribal government, contract, or 37
agreement of any kind to which the public bank authority is a party.38
(17) The bonds of the public bank are securities in which all 39
public officers and bodies of this state and all counties, cities, 40
p. 17 HB 2556
municipal corporations, and political subdivisions, all banks, 1
eligible banking organizations, bankers, trust companies, savings 2
banks and institutions, building and loan associations, savings and 3
loan associations, investment companies, insurance companies and 4
associations, and all executors, administrators, guardians, trustees, 5
and other fiduciaries may legally invest any sinking funds, moneys, 6
or other funds belonging to them or within their control.7
(18) This section provides a complete, additional, and 8
alternative method for accomplishing the purposes of this chapter and 9
is supplemental and additional to powers conferred by other laws. The 10
issuance of bonds and refunding bonds under this chapter need not 11
comply with the requirements of any other law applicable to the 12
issuance of bonds. Insofar as the provisions of this chapter are 13
inconsistent with the provisions of any general or special law, or 14
parts thereof, the provisions of this chapter are controlling.15
NEW SECTION. Sec. 7. A new section is added to chapter 43.08 16
RCW to read as follows: 17
Employees of the office of the state treasurer shall primarily 18
administer and operate the Washington state public bank, as provided 19
by section 4 (9) of this act. The public bank may consult with other 20
state agencies at its discretion and without the approval of the 21
office of the state treasurer. 22
Sec. 8. RCW 39.59.040 and 2016 c 152 s 11 are each amended to 23
read as follows: 24
Any local government in the state of Washington may invest in:25
(1) Bonds of the state of Washington and any local government in 26
the state of Washington; 27
(2) General obligation bonds of a state and general obligation 28
bonds of a local government of a state, which bonds have at the time 29
of investment one of the three highest credit ratings of a nationally 30
recognized rating agency; 31
(3) Subject to compliance with RCW 39.56.030, registered warrants 32
of a local government in the same county as the government making the 33
investment; 34
(4) Certificates, notes, or bonds of the United States, or other 35
obligations of the United States or its agencies, or of any 36
corporation wholly owned by the government of the United States; or 37
United States dollar denominated bonds, notes, or other obligations 38
p. 18 HB 2556
that are issued or guaranteed by supranational institutions, provided 1
that, at the time of investment, the institution has the United 2
States government as its largest shareholder; 3
(5) Federal home loan bank notes and bonds, federal land bank 4
bonds and federal national mortgage association notes, debentures and 5
guaranteed certificates of participation, or the obligations of any 6
other government sponsored corporation whose obligations are or may 7
become eligible as collateral for advances to member banks as 8
determined by the board of governors of the federal reserve system;9
(6) Bankers' acceptances purchased on the secondary market;10
(7) Commercial paper purchased in the secondary market, provided 11
that any local government of the state of Washington that invests in 12
such commercial paper must adhere to the investment policies and 13
procedures adopted by the state investment board; ((and))14
(8) Corporate notes purchased on the secondary market, provided 15
that any local government of the state of Washington that invests in 16
such notes must adhere to the investment policies and procedures 17
adopted by the state investment board; and18
(9) A public bank as defined in section 3 of this act and bonds 19
issued by such public bank. 20
Sec. 9. RCW 42.56.270 and 2025 c 419 s 9, 2025 c 176 s 1, and 21
2025 c 81 s 1 are each reenacted and amended to read as follows:22
The following financial, commercial, and proprietary information 23
is exempt from disclosure under this chapter: 24
(1) Valuable formulae, designs, drawings, computer source code or 25
object code, and research data obtained by any agency within five 26
years of the request for disclosure when disclosure would produce 27
private gain and public loss; 28
(2) Financial information supplied by or on behalf of a person, 29
firm, or corporation for the purpose of qualifying to submit a bid or 30
proposal for (a) a ferry system construction or repair contract as 31
required by RCW 47.60.680 through 47.60.750; (b) highway construction 32
or improvement as required by RCW 47.28.070; or (c) alternative 33
public works contracting procedures as required by RCW 39.10.200 34
through 39.10.905; 35
(3) Financial and commercial information and records supplied by 36
private persons pertaining to export services provided under chapters 37
43.163 and 53.31 RCW, and by persons pertaining to export projects 38
under RCW 43.23.035; 39
p. 19 HB 2556
(4) Financial and commercial information and records supplied by 1
businesses or individuals during application for loans or program 2
services provided by chapters 43.325, 43.163, 43.160, 43.330, 43.--- 3
(the new chapter created in section 15 of this act), 43.168, and 4
43.181 RCW and RCW 43.155.160, or during application for economic 5
development loans or program services provided by any local agency;6
(5) Financial information, business plans, examination reports, 7
and any information produced or obtained in evaluating or examining a 8
business and industrial development corporation organized or seeking 9
certification under chapter 31.24 RCW; 10
(6) Financial and commercial information supplied to the state 11
investment board by any person when the information relates to the 12
investment of public trust or retirement funds and when disclosure 13
would result in loss to such funds or in private loss to the 14
providers of this information; 15
(7) Financial and valuable trade information under RCW 51.36.120;16
(8) Financial, commercial, operations, and technical and research 17
information and data submitted to or obtained by the clean Washington 18
center in applications for, or delivery of, program services under 19
chapter 70.95H RCW; 20
(9) Financial and commercial information requested by the public 21
stadium authority from any person or organization that leases or uses 22
the stadium and exhibition center as defined in RCW 36.102.010;23
(10)(a) Financial information, including but not limited to 24
account numbers and values, and other identification numbers supplied 25
by or on behalf of a person, firm, corporation, limited liability 26
company, partnership, or other entity related to an application for a 27
horse racing license submitted pursuant to RCW 67.16.260(1)(b), 28
cannabis producer, processor, or retailer license, liquor license, 29
gambling license, or lottery retail license; 30
(b) Proprietary financial and security information submitted to 31
or obtained by the gambling commission from and on behalf of license 32
applicants, licensees, gaming facilities, or a tribe pursuant to an 33
approved tribal/state compact. Proprietary financial and security 34
information includes, but is not limited to, the following:35
(i) Financial statements and transactions including but not 36
limited to independent auditors' reports and financial statements 37
with any supporting documents, bank account records, player tracking 38
records, bond issuances, loan agreements, purchase agreements, and 39
stock buyouts. However, quarterly license reports are not exempt;40
p. 20 HB 2556
(ii) Information that describes the internal operational system 1
or internal procedures of the gaming facility designed to promote 2
efficiency, safeguard assets, and avoid fraud and error, including 3
but not limited to records pertaining to security camera technical 4
specifications, operation, and placement; cash out procedures and 5
locations; cage security information; building access controls; and 6
personally identifiable information control procedures;7
(iii) Gaming facility security information, including but not 8
limited to descriptions of facility layout and schematics, firewall 9
configurations, network topologies, source code, software files, 10
cryptographic hashes of software files, risk and security assessment 11
reports, disaster recovery plans, incident response plans, and any 12
other sensitive information that may negatively impact the security 13
of the facility if released; and 14
(iv) Gaming equipment information, including but not limited to 15
related hardware, software, and security information, such as 16
firewall configurations, field testing data and results from testing, 17
network topologies or diagrams, source code, software files, 18
cryptographic hashes of software files, schematics, user credentials, 19
system components, and any other sensitive information about the 20
equipment that may compromise the security and integrity of the 21
equipment if released; 22
(c) Valuable formulae or financial or proprietary commercial 23
information records received during a consultative visit or while 24
providing consultative services to a licensed cannabis business in 25
accordance with RCW 69.50.561; 26
(11) Proprietary data, trade secrets, or other information that 27
relates to: (a) A vendor's unique methods of conducting business; (b) 28
data unique to the product or services of the vendor; or (c) 29
determining prices or rates to be charged for services, submitted by 30
any vendor to the department of social and health services or the 31
health care authority for purposes of the development, acquisition, 32
or implementation of state purchased health care as defined in RCW 33
41.05.011; 34
(12)(a) When supplied to and in the records of the department of 35
commerce: 36
(i) Financial and proprietary information collected from any 37
person and provided to the department of commerce pursuant to RCW 38
43.330.050(8); 39
p. 21 HB 2556
(ii) Financial or proprietary information collected from any 1
person and provided to the department of commerce or the office of 2
the governor in connection with the siting, recruitment, expansion, 3
retention, or relocation of that person's business and until a siting 4
decision is made, identifying information of any person supplying 5
information under this subsection and the locations being considered 6
for siting, relocation, or expansion of a business; and7
(iii) Financial or proprietary information collected from any 8
person and provided to the department of commerce pursuant to RCW 9
43.31.625 (3)(b) and (4); 10
(b) When developed by the department of commerce based on 11
information as described in (a)(i) of this subsection, any work 12
product is not exempt from disclosure; 13
(c) For the purposes of this subsection, "siting decision" means 14
the decision to acquire or not to acquire a site; 15
(d) If there is no written contact for a period of 60 days to the 16
department of commerce from a person connected with siting, 17
recruitment, expansion, retention, or relocation of that person's 18
business, information described in (a)(ii) of this subsection will be 19
available to the public under this chapter; 20
(13) Financial and proprietary information submitted to or 21
obtained by the department of ecology or the authority created under 22
chapter 70A.500 RCW to implement chapter 70A.500 RCW;23
(14) Financial, commercial, operations, and technical and 24
research information and data submitted to or obtained by the life 25
sciences discovery fund authority in applications for, or delivery 26
of, grants under RCW 43.330.502, to the extent that such information, 27
if revealed, would reasonably be expected to result in private loss 28
to the providers of this information; 29
(15) Financial and commercial information provided as evidence to 30
the department of licensing as required by RCW 19.112.110 or 31
19.112.120, except information disclosed in aggregate form that does 32
not permit the identification of information related to individual 33
fuel licensees; 34
(16) Any production records, mineral assessments, and trade 35
secrets submitted by a permit holder, mine operator, or landowner to 36
the department of natural resources under RCW 78.44.085;37
(17)(a) Farm plans developed by conservation districts, unless 38
permission to release the farm plan is granted by the landowner or 39
p. 22 HB 2556
operator who requested the plan, or the farm plan is used for the 1
application or issuance of a permit; 2
(b) Farm plans developed under chapter 90.48 RCW and not under 3
the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject 4
to RCW 42.56.610 and 90.64.190; 5
(18) Financial, commercial, operations, and technical and 6
research information and data submitted to or obtained by a health 7
sciences and services authority in applications for, or delivery of, 8
grants under RCW 35.104.010 through 35.104.060, to the extent that 9
such information, if revealed, would reasonably be expected to result 10
in private loss to providers of this information; 11
(19) Information gathered under chapter 19.85 RCW or RCW 12
34.05.328 that can be identified to a particular business;13
(20) Financial and commercial information submitted to or 14
obtained by the University of Washington, other than information the 15
university is required to disclose under RCW 28B.20.150, when the 16
information relates to investments in private funds, to the extent 17
that such information, if revealed, would reasonably be expected to 18
result in loss to the University of Washington consolidated endowment 19
fund or to result in private loss to the providers of this 20
information; 21
(21) Market share data submitted by a manufacturer under RCW 22
70A.500.190(4); 23
(22) Financial information supplied to the department of 24
financial institutions, when filed by or on behalf of an issuer of 25
securities for the purpose of obtaining the exemption from state 26
securities registration for small securities offerings provided under 27
RCW 21.20.880 or when filed by or on behalf of an investor for the 28
purpose of purchasing such securities; 29
(23) Unaggregated or individual notices of a transfer of crude 30
oil that is financial, proprietary, or commercial information, 31
submitted to the department of ecology pursuant to RCW 32
90.56.565(1)(a), and that is in the possession of the department of 33
ecology or any entity with which the department of ecology has shared 34
the notice pursuant to RCW 90.56.565; 35
(24) Financial institution and retirement account information, 36
and building security plan information, supplied to the liquor and 37
cannabis board pursuant to RCW 69.50.325, 69.50.331, 69.50.342, and 38
69.50.345, when filed by or on behalf of a licensee or prospective 39
licensee for the purpose of obtaining, maintaining, or renewing a 40
p. 23 HB 2556
license to produce, process, transport, or sell cannabis as allowed 1
under chapter 69.50 RCW; 2
(25) Cannabis transport information, vehicle and driver 3
identification data, and account numbers or unique access identifiers 4
issued to private entities for traceability system access, submitted 5
by an individual or business to the liquor and cannabis board under 6
the requirements of RCW 69.50.325, 69.50.331, 69.50.342, and 7
69.50.345 for the purpose of cannabis product traceability. 8
Disclosure to local, state, and federal officials is not considered 9
public disclosure for purposes of this section; 10
(26) Financial and commercial information submitted to or 11
obtained by the retirement board of any city that is responsible for 12
the management of an employees' retirement system pursuant to the 13
authority of chapter 35.39 RCW, when the information relates to 14
investments in private funds, to the extent that such information, if 15
revealed, would reasonably be expected to result in loss to the 16
retirement fund or to result in private loss to the providers of this 17
information except that (a) the names and commitment amounts of the 18
private funds in which retirement funds are invested and (b) the 19
aggregate quarterly performance results for a retirement fund's 20
portfolio of investments in such funds are subject to disclosure;21
(27) Proprietary financial, commercial, operations, and technical 22
and research information and data submitted to or obtained by the 23
liquor and cannabis board in applications for cannabis research 24
licenses under RCW 69.50.372, or in reports submitted by cannabis 25
research licensees in accordance with rules adopted by the liquor and 26
cannabis board under RCW 69.50.372; 27
(28) Trade secrets, technology, proprietary information, and 28
financial considerations contained in any agreements or contracts, 29
entered into by a licensed cannabis business under RCW 69.50.395, 30
which may be submitted to or obtained by the state liquor and 31
cannabis board; 32
(29) Financial, commercial, operations, and technical and 33
research information and data submitted to or obtained by the Andy 34
Hill cancer research endowment program in applications for, or 35
delivery of, grants under chapter 43.348 RCW, to the extent that such 36
information, if revealed, would reasonably be expected to result in 37
private loss to providers of this information; 38
(30) Proprietary information filed with the department of health 39
under chapter 69.48 RCW; 40
p. 24 HB 2556
(31) Records filed with the department of ecology under chapter 1
70A.515 RCW that a court has determined are confidential valuable 2
commercial information under RCW 70A.515.130; 3
(32) Unaggregated financial, proprietary, or commercial 4
information submitted to or obtained by the liquor and cannabis board 5
in applications for licenses under RCW 66.24.140 or 66.24.145, or in 6
any reports or remittances submitted by a person licensed under RCW 7
66.24.140 or 66.24.145 under rules adopted by the liquor and cannabis 8
board under chapter 66.08 RCW; 9
(33) Formulas and data public risk pools used to calculate rates 10
for pool member contributions or assessments, and actuarial analyses 11
and reports prepared by or for public risk pools; and12
(34) Unaggregated or individual information submitted to the 13
department of revenue under RCW 82.17.020 pertaining to the sales 14
price of zero-emission vehicle credits in transactions between 15
manufacturers. 16
Sec. 10. RCW 42.56.400 and 2025 c 243 s 1 and 2025 c 225 s 1 are 17
each reenacted and amended to read as follows: 18
The following information relating to insurance and financial 19
institutions is exempt from disclosure under this chapter:20
(1) Records maintained by the board of industrial insurance 21
appeals that are related to appeals of crime victims' compensation 22
claims filed with the board under RCW 7.68.110; 23
(2) Information obtained and exempted or withheld from public 24
inspection by the health care authority under RCW 41.05.026, whether 25
retained by the authority, transferred to another state purchased 26
health care program by the authority, or transferred by the authority 27
to a technical review committee created to facilitate the 28
development, acquisition, or implementation of state purchased health 29
care under chapter 41.05 RCW; 30
(3) The names and individual identification data of either all 31
owners or all insureds, or both, received by the insurance 32
commissioner under chapter 48.102 RCW; 33
(4) Information provided under RCW 48.30A.045 through 48.30A.060;34
(5) Information provided under RCW 48.05.510 through 48.05.535, 35
48.43.200 through 48.43.225, 48.44.530 through 48.44.555, and 36
48.46.600 through 48.46.625; 37
(6) Examination reports and information obtained by the 38
department of financial institutions from banks under RCW 30A.04.075, 39
p. 25 HB 2556
from savings banks under RCW 32.04.220, from savings and loan 1
associations under RCW 33.04.110, from credit unions under RCW 2
31.12.565, from chapter 43.--- RCW (the new chapter created in 3
section 15 of this act), from check cashers and sellers under RCW 4
31.45.030(3), and from securities brokers and investment advisers 5
under RCW 21.20.100, information that could reasonably be expected to 6
reveal the identity of a whistleblower under RCW 21.40.090, and 7
information received under RCW 43.320.190, all of which are 8
confidential and privileged information; 9
(7) Information provided to the insurance commissioner under RCW 10
48.110.040(3); 11
(8) Documents, materials, or information obtained by the 12
insurance commissioner under RCW 48.02.065, all of which are 13
confidential and privileged; 14
(9) Documents, materials, or information obtained or provided by 15
the insurance commissioner under RCW 48.31B.015(2) (l) and (m), 16
48.31B.025, 48.31B.030, 48.31B.035, and 48.31B.036, all of which are 17
confidential and privileged; 18
(10) Data filed under RCW 48.140.020, 48.140.030, 48.140.050, and 19
7.70.140 that, alone or in combination with any other data, may 20
reveal the identity of a claimant, health care provider, health care 21
facility, insuring entity, or self-insurer involved in a particular 22
claim or a collection of claims. For the purposes of this subsection:23
(a) "Claimant" has the same meaning as in RCW 48.140.010(2).24
(b) "Health care facility" has the same meaning as in RCW 25
48.140.010(6). 26
(c) "Health care provider" has the same meaning as in RCW 27
48.140.010(7). 28
(d) "Insuring entity" has the same meaning as in RCW 29
48.140.010(8). 30
(e) "Self-insurer" has the same meaning as in RCW 48.140.010(11);31
(11) Documents, materials, or information obtained by the 32
insurance commissioner under RCW 48.135.060; 33
(12) Documents, materials, or information obtained by the 34
insurance commissioner under RCW 48.37.060; 35
(13) Confidential and privileged documents obtained or produced 36
by the insurance commissioner and identified in RCW 48.37.080;37
(14) Documents, materials, or information obtained by the 38
insurance commissioner under RCW 48.37.140; 39
p. 26 HB 2556
(15) Documents, materials, or information obtained by the 1
insurance commissioner under RCW 48.17.595; 2
(16) Documents, materials, or information obtained by the 3
insurance commissioner under RCW 48.102.051(1) and 48.102.140 (3) and 4
(7)(a)(ii); 5
(17) Documents, materials, or information obtained by the 6
insurance commissioner in the commissioner's capacity as receiver 7
under RCW 48.31.025 and 48.99.017, which are records under the 8
jurisdiction and control of the receivership court. The commissioner 9
is not required to search for, log, produce, or otherwise comply with 10
the public records act for any records that the commissioner obtains 11
under chapters 48.31 and 48.99 RCW in the commissioner's capacity as 12
a receiver, except as directed by the receivership court;13
(18) Documents, materials, or information obtained by the 14
insurance commissioner under RCW 48.13.151; 15
(19) Data, information, and documents provided by a carrier 16
pursuant to section 1, chapter 172, Laws of 2010; 17
(20) Information in a filing of usage-based insurance about the 18
usage-based component of the rate pursuant to RCW 48.19.040(5)(b);19
(21) Data, information, and documents that are submitted to the 20
office of the insurance commissioner by an entity providing health 21
care coverage pursuant to RCW 28A.400.275; 22
(22) Data, information, and documents obtained by the insurance 23
commissioner under RCW 48.29.017; 24
(23) Information not subject to public inspection or public 25
disclosure under RCW 48.43.730(5); 26
(24) Documents, materials, or information obtained by the 27
insurance commissioner under chapter 48.05A RCW; 28
(25) Documents, materials, or information obtained by the 29
insurance commissioner under RCW 48.74.025, 48.74.028, 48.74.100(6), 30
48.74.110(2) (b) and (c), and 48.74.120 to the extent such documents, 31
materials, or information independently qualify for exemption from 32
disclosure as documents, materials, or information in possession of 33
the commissioner pursuant to a financial conduct examination and 34
exempt from disclosure under RCW 48.02.065; 35
(26) Nonpublic personal health information obtained by, disclosed 36
to, or in the custody of the insurance commissioner, as provided in 37
RCW 48.02.068; 38
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(27) Documents, materials, or other information, including the 1
corporate annual disclosure obtained by the insurance commissioner 2
under RCW 48.195.020; 3
(28) Findings and orders disapproving acquisition of a trust 4
institution under RCW 30B.53.100(3); 5
(29) All claims data, including health care and financial related 6
data received under RCW 41.05.890, received and held by the health 7
care authority; 8
(30) Documents, materials, or information obtained by the 9
insurance commissioner under RCW 48.150.100, except for providers' 10
names and business addresses; 11
(31) Contracts not subject to public disclosure under RCW 12
48.200.040 and 48.43.731; and 13
(32) Data, information, and documents obtained from an insurer, 14
or by or from the insurance commissioner, under RCW 48.05.320.15
Sec. 11. RCW 43.10.067 and 1997 c 41 s 9 are each amended to 16
read as follows: 17
No officer, director, administrative agency, board, or commission 18
of the state, other than the attorney general, shall employ, appoint 19
or retain in employment any attorney for any administrative body, 20
department, commission, agency, or tribunal or any other person to 21
act as attorney in any legal or quasi legal capacity in the exercise 22
of any of the powers or performance of any of the duties specified by 23
law to be performed by the attorney general, except where it is 24
provided by law to be the duty of the judge of any court or the 25
prosecuting attorney of any county to employ or appoint such persons: 26
PROVIDED, That RCW 43.10.040, and 43.10.065 through 43.10.080 shall 27
not apply to the administration of the commission on judicial 28
conduct, the state law library, the law school of the state 29
university, the administration of the state bar act by the Washington 30
State Bar Association, ((or)) the representation of an estate 31
administered by the director of the department of revenue or the 32
director's designee pursuant to chapter 11.28 RCW, or the state 33
public bank to the extent provided in section 5(22) of this act.34
The authority granted by chapter 1.08 RCW, RCW 44.28.065, and 35
47.01.061 shall not be affected hereby. 36
Sec. 12. RCW 43.84.080 and 2016 c 152 s 18 are each amended to 37
read as follows: 38
p. 28 HB 2556
Wherever there is in any fund or in cash balances in the state 1
treasury more than sufficient to meet the current expenditures 2
properly payable therefrom, the state treasurer may invest or 3
reinvest such portion of such funds or balances as the state 4
treasurer deems expedient in the following: 5
(1) Certificates, notes, or bonds of the United States, or other 6
obligations of the United States or its agencies, or of any 7
corporation wholly owned by the government of the United States or 8
United States dollar denominated bonds, notes, or other obligations 9
that are issued or guaranteed by supranational institutions, provided 10
that, at the time of investment, the institution has the United 11
States government as its largest shareholder; 12
(2) In state, county, municipal, or school district bonds, notes, 13
or in warrants of taxing districts of the state. Such bonds and 14
warrants shall be only those found to be within the limit of 15
indebtedness prescribed by law for the taxing district issuing them 16
and to be general obligations. The state treasurer may purchase such 17
bonds or warrants directly from the taxing district or in the open 18
market at such prices and upon such terms as it may determine, and 19
may sell them at such times as it deems advisable;20
(3) In federal home loan bank notes and bonds, federal land bank 21
bonds and federal national mortgage association notes, debentures and 22
guaranteed certificates of participation, or the obligations of any 23
other government sponsored corporation whose obligations are or may 24
become eligible as collateral for advances to member banks as 25
determined by the board of governors of the federal reserve system;26
(4) Bankers' acceptances purchased on the secondary market;27
(5) Commercial paper purchased on the secondary market, provided 28
that the state treasurer adheres to the investment policies and 29
procedures adopted by the state investment board; 30
(6) General obligation bonds of any state and general obligation 31
bonds of local governments of other states, which bonds have at the 32
time of investment one of the three highest credit ratings of a 33
nationally recognized rating agency; ((and))34
(7) Corporate notes purchased on the secondary market, provided 35
that the state treasurer adheres to the investment policies and 36
procedures adopted by the state investment board; and37
(8) Contributions to a public bank as defined in section 3 of 38
this act. 39
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NEW SECTION. Sec. 13. If any provision of this act or its 1
application to any person or circumstance is held invalid, the 2
remainder of the act or the application of the provision to other 3
persons or circumstances is not affected.4
NEW SECTION. Sec. 14. This act, being necessary for the welfare 5
of the state and its inhabitants, shall be liberally construed to 6
effect the purposes thereof.7
NEW SECTION. Sec. 15. Sections 1 through 6 of this act 8
constitute a new chapter in Title 43 RCW.9
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