Behavioral health services

AN ACT Relating to increasing access and resources for behavioral 1
health emergency services providers by imposing a covered lives 2
assessment on specific health plans; reenacting and amending RCW 3
43.84.092, 43.84.092, 43.84.092, 43.84.092, 43.84.092, and 43.84.092; 4
adding a new section to chapter 71.24 RCW; adding a new chapter to 5
Title 48 RCW; creating new sections; providing effective dates; 6
providing a contingent effective date; providing expiration dates; 7
and providing contingent expiration dates. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:9
NEW SECTION. Sec. 1. (1) The legislature finds that:10
(a) Behavioral health crisis services are cost-effective and 11
reduce burdens on other emergency systems. According to the all payer 12
claims database from 2022 through 2024, aggregate health plan claims 13
payments for hospital emergency department visits where patients have 14
primary mental health diagnoses cost far more than behavioral health 15
crisis services; 16
(b) Behavioral health crisis services which include, but are not 17
limited to, mobile crisis response, crisis relief centers, and crisis 18
stabilization units, provide customized care specific to behavioral 19
health conditions that support people to recover as a more effective 20
alternative to hospital emergency departments; 21
H-3254.3
HOUSE BILL 2720
State of Washington 69th Legislature 2026 Regular Session
By Representatives Macri, Gregerson, and Scott
Read first time 02/03/26. Referred to Committee on Appropriations.
p. 1 HB 2720
(c) By giving first responders, family members, and people with 1
behavioral health conditions a place to go and someone to respond in 2
a crisis, behavioral health crisis services help people avoid 3
overburdened emergency departments, inpatient hospitals, and jails;4
(d) Behavioral health crisis services should be available to all 5
regardless of insurance status, residency, age, or diagnosis, similar 6
to medical emergency services; 7
(e) The substance abuse and mental health services administration 8
recommends a comprehensive, 24/7, community-based crisis system that 9
is funded under a firehouse model rather than through traditional 10
insurance reimbursement; 11
(f) RCW 48.43.093 requires health carriers to cover behavioral 12
health emergency services for people enrolled in their health plans. 13
Federal and state mental health parity laws require private health 14
insurance to provide comparable coverage of medical and behavioral 15
health emergency services; 16
(g) Despite ongoing efforts from the office of the insurance 17
commissioner, behavioral health administrative services 18
organizations, behavioral health agencies, and health carriers to 19
implement this coverage requirement, payments for behavioral health 20
emergency services by private health plans remain limited. This is 21
due in part to the challenges of obtaining health insurance 22
information when a client is experiencing a behavioral health crisis 23
or its aftermath and to the complexity of billing private health 24
insurers given limited administrative capacity and billing expertise 25
of behavioral health crisis providers. Due to these structural 26
barriers, there are not clear and consistent systems for payments for 27
behavioral health crisis services by health carriers as required by 28
RCW 48.43.093. As a result, Washington state taxpayers have been 29
subsidizing this care; 30
(h) Behavioral health administrative services organizations are 31
best positioned to administer and implement the array of community-32
based behavioral health crisis services that a region needs and its 33
providers can deliver, within their limited available resources, 34
given their role as regional behavioral health crisis services 35
authorities under RCW 71.24.045; 36
(i) A streamlined payment mechanism is needed to sustain access 37
to behavioral health crisis services and to ensure that private 38
health insurers provide the financial contribution for these services 39
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that RCW 48.43.093 and mental health parity laws are intended to 1
result in; and 2
(j) Communities throughout Washington are seeking to expand 3
access to behavioral health crisis care by establishing new 4
facilities, often with state capital funding, but neither state 5
funding nor private health insurance funding is sufficient to support 6
services in these facilities. Too many have been unable to start 7
providing services in their community. 8
(2) The legislature intends to create a broad-based, ongoing, 9
dedicated funding source for behavioral health crisis services 10
provided to people that are not eligible for medicaid reimbursement, 11
and for people who are not enrolled in medicaid. 12
NEW SECTION. Sec. 2. The definitions in this section apply 13
throughout this chapter unless the context clearly requires 14
otherwise.15
(1) "Adjustment factor" means the sum of inflation change and 16
population change for the biennium during which an adjustment 17
increase, as provided in section 3 (7) of this act, is being 18
calculated. 19
(2) "Commissioner" means the insurance commissioner or his or her 20
designee. 21
(3) "Covered entity" means any entity insuring or administering 22
health coverage to covered lives. 23
(4)(a) "Covered lives" means all persons residing in Washington 24
state who are enrolled in health coverage offered by the following 25
entities: 26
(i) A health plan offered by a health carrier, as defined in RCW 27
48.43.005; 28
(ii) A self-funded multiple employer welfare arrangement, as 29
defined in RCW 48.125.010; and 30
(iii) An employer-sponsored self-funded group plan or a Taft-31
Hartley trust plan. 32
(b) "Covered lives" does not include lives enrolled in medicaid 33
managed care organizations under contract with the health care 34
authority. 35
(5) "Health plan" has the same meaning as defined in RCW 36
48.43.005 but does not include medicare advantage plans established 37
under medicare part C, outpatient prescription drug plans established 38
under medicare part D, or federal employee health benefit plans.39
p. 3 HB 2720
(6) "Inflation change" means the percentage change in the 1
consumer price index for all urban consumers for the Seattle-Tacoma-2
Bellevue area, or successor index, as published by the federal bureau 3
of labor statistics, for the biennium during which an adjustment 4
increase, as provided in section 3 (7) of this act, is being 5
calculated. 6
(7) "Population change" means the percentage change in state 7
population as reported by the office of financial management for the 8
biennium during which an adjustment increase, as provided in section 9
3(7) of this act, is being calculated. 10
NEW SECTION. Sec. 3. (1) All covered entities shall pay an 11
annual covered lives assessment beginning January 1, 2027.12
(2) The commissioner shall annually assess a per member per month 13
assessment per covered life for covered entities. The per member per 14
month assessment in calendar year 2027 shall be 58 cents per covered 15
life. The assessment shall be updated every two years in accordance 16
with the process established in subsection (7) of this section.17
(3) The commissioner shall annually notify, in writing, each 18
covered entity of the total assessment and its payment obligation for 19
the upcoming year. The commissioner shall determine a payment 20
schedule for receipt of assessments under this section. Payment 21
collections may be made no more frequently than quarterly.22
(4)(a) Covered entities shall provide the commissioner the 23
information needed to calculate the covered entity's covered lives 24
subject to the assessment in a form and manner determined by the 25
commissioner. 26
(b) The commissioner may contract with a third-party 27
administrator to obtain information regarding each covered entity's 28
covered lives and administer the collection of assessments under this 29
section. 30
(5)(a) Payments from covered entities are due to the commissioner 31
within 45 days of the receipt of notice of their payment obligation 32
determined under this section. The commissioner shall charge interest 33
as detailed by RCW 43.17.240, which begins to accrue on the 46th day, 34
on amounts received after the 45-day period. 35
(b) The commissioner shall assess a civil penalty against any 36
covered entity that fails to pay an assessment within 90 days of 37
notification of the payment obligation under this section. The civil 38
penalty under this subsection is 150 percent of such assessment. The 39
p. 4 HB 2720
commissioner is authorized to file liens and seek judgment to recover 1
amounts in arrears and civil penalties, and recover reasonable 2
collection costs, including reasonable attorneys' fees and costs.3
(c) The commissioner may allow each covered entity in arrears to 4
submit a payment plan, subject to approval by the commissioner and 5
initial payment under an approved payment plan. 6
(6) The commissioner shall deposit annual assessments interest, 7
and civil penalties collected under this section with the state 8
treasurer to the credit of the behavioral health emergency services 9
account created in section 4 of this act. 10
(7) Each June of even numbered years, the commissioner shall 11
calculate the assessment for the next two calendar years by 12
increasing the current assessment by known changes in the adjustment 13
factor, except that the increase shall not exceed 10 percent.14
NEW SECTION. Sec. 4. (1) The behavioral health emergency 15
services account is created in the state treasury. All receipts from 16
the assessments, interest, and penalties collected by the 17
commissioner under section 3 of this act must be deposited into the 18
account. Moneys in the account may be spent only after appropriation.19
(2) Expenditures from the account may be used only for:20
(a) Behavioral health emergency services administered through 21
behavioral health administrative services organizations as defined in 22
RCW 71.24.025 by the following behavioral health emergency services 23
providers as defined in RCW 48.43.005: 24
(i) A crisis stabilization unit as defined in RCW 71.05.020;25
(ii) A 23-hour crisis relief center as defined in RCW 71.24.025;26
(iii) An agency certified by the department of health under 27
chapter 71.24 RCW to provide outpatient crisis services; and28
(iv) A mobile rapid response crisis team as defined in RCW 29
71.24.025 that is contracted with a behavioral health administrative 30
services organization operating under RCW 71.24.045 to provide crisis 31
response services in the behavioral health administrative services 32
organization's service area; 33
(b) Administrative costs for the health care authority associated 34
with implementation of this act; and 35
(c) Disbursements to refund erroneous or excessive payments made 36
by covered entities as determined by the commissioner.37
(3) Expenditures from the account are subject to the following 38
limitations: 39
p. 5 HB 2720
(a) The account may not be used for reimbursement of services 1
identified in subsection (2) of this section provided to individuals 2
enrolled in medical assistance programs that include coverage for 3
these services under Title XIX of the federal social security act or 4
Title XXI of the federal social security act; and 5
(b) The account may not be used for reimbursement of services 6
identified in subsection (2) of this section that have been directly 7
billed by a provider or on the provider's behalf and reimbursed by a 8
covered entity or payer for the covered entity or payer's enrollee.9
NEW SECTION. Sec. 5. The commissioner may adopt rules and 10
undertake actions necessary to carry out section 3 of this act 11
including, but not limited to, measures to enforce reporting of 12
covered lives, audits of covered lives reporting, and payment of 13
applicable assessments.14
NEW SECTION. Sec. 6. A new section is added to chapter 71.24 15
RCW to read as follows: 16
The authority shall adopt rules and undertake actions necessary 17
to ensure that behavioral health emergency services account funds 18
appropriated to and expended by the authority are used in accordance 19
with the conditions and limitations of chapter 48.--- RCW (the new 20
chapter created in section 13 of this act). 21
Sec. 7. RCW 43.84.092 and 2025 c 417 s 802, 2025 c 399 s 15, 22
2025 c 359 s 12, and 2025 c 299 s 21 are each reenacted and amended 23
to read as follows: 24
(1) All earnings of investments of surplus balances in the state 25
treasury shall be deposited to the treasury income account, which 26
account is hereby established in the state treasury.27
(2) The treasury income account shall be utilized to pay or 28
receive funds associated with federal programs as required by the 29
federal cash management improvement act of 1990. The treasury income 30
account is subject in all respects to chapter 43.88 RCW, but no 31
appropriation is required for refunds or allocations of interest 32
earnings required by the cash management improvement act. Refunds of 33
interest to the federal treasury required under the cash management 34
improvement act fall under RCW 43.88.180 and shall not require 35
appropriation. The office of financial management shall determine the 36
amounts due to or from the federal government pursuant to the cash 37
p. 6 HB 2720
management improvement act. The office of financial management may 1
direct transfers of funds between accounts as deemed necessary to 2
implement the provisions of the cash management improvement act, and 3
this subsection. Refunds or allocations shall occur prior to the 4
distributions of earnings set forth in subsection (4) of this 5
section. 6
(3) Except for the provisions of RCW 43.84.160, the treasury 7
income account may be utilized for the payment of purchased banking 8
services on behalf of treasury funds including, but not limited to, 9
depository, safekeeping, and disbursement functions for the state 10
treasury and affected state agencies. The treasury income account is 11
subject in all respects to chapter 43.88 RCW, but no appropriation is 12
required for payments to financial institutions. Payments shall occur 13
prior to distribution of earnings set forth in subsection (4) of this 14
section. 15
(4) Monthly, the state treasurer shall distribute the earnings 16
credited to the treasury income account. The state treasurer shall 17
credit the general fund with all the earnings credited to the 18
treasury income account except: 19
(a) The following accounts and funds shall receive their 20
proportionate share of earnings based upon each account's and fund's 21
average daily balance for the period: The abandoned recreational 22
vehicle disposal account, the aeronautics account, the Alaskan Way 23
viaduct replacement project account, the ambulance transport fund, 24
the behavioral health emergency services account, the budget 25
stabilization account, the capital vessel replacement account, the 26
capitol building construction account, the Central Washington 27
University capital projects account, the charitable, educational, 28
penal and reformatory institutions account, the Chehalis basin 29
account, the Chehalis basin taxable account, the clean fuels credit 30
account, the clean fuels transportation investment account, the 31
cleanup settlement account, the Columbia river basin water supply 32
development account, the Columbia river basin taxable bond water 33
supply development account, the Columbia river basin water supply 34
revenue recovery account, the common school construction fund, the 35
community forest trust account, the connecting Washington account, 36
the county arterial preservation account, the county criminal justice 37
assistance account, the covenant homeownership account, the deferred 38
compensation administrative account, the deferred compensation 39
principal account, the department of licensing services account, the 40
p. 7 HB 2720
department of retirement systems expense account, the developmental 1
disabilities community services account, the diesel idle reduction 2
account, the opioid abatement settlement account, the drinking water 3
assistance account, the administrative subaccount of the drinking 4
water assistance account, the driver education safety improvement 5
account, the early learning facilities development account, the early 6
learning facilities revolving account, the Eastern Washington 7
University capital projects account, the education legacy trust 8
account, the election account, the electric vehicle account, the 9
energy freedom account, the energy recovery act account, the 10
essential rail assistance account, The Evergreen State College 11
capital projects account, the fair start for kids account, the family 12
medicine workforce development account, the ferry bond retirement 13
fund, the fish, wildlife, and conservation account, the freight 14
mobility investment account, the freight mobility multimodal account, 15
the grade crossing protective fund, the higher education retirement 16
plan supplemental benefit fund, the Washington student loan account, 17
the highway bond retirement fund, the highway infrastructure account, 18
the highway safety fund, the hospital safety net assessment fund, the 19
Interstate 5 bridge replacement project account, the Interstate 405 20
and state route number 167 express toll lanes account, the judges' 21
retirement account, the judicial retirement administrative account, 22
the judicial retirement principal account, the limited fish and 23
wildlife account, the local leasehold excise tax account, the local 24
real estate excise tax account, the local sales and use tax account, 25
the marine resources stewardship trust account, the medical aid 26
account, the money-purchase retirement savings administrative 27
account, the money-purchase retirement savings principal account, the 28
motor vehicle fund, the motorcycle safety education account, the move 29
ahead WA account, the move ahead WA flexible account, the multimodal 30
transportation account, the multiuse roadway safety account, the 31
municipal criminal justice assistance account, the oyster reserve 32
land account, the pension funding stabilization account, the 33
perpetual surveillance and maintenance account, the pilotage account, 34
the pollution liability insurance agency underground storage tank 35
revolving account, the medicaid access program account, the public 36
employees' retirement system plan 1 account, the public employees' 37
retirement system combined plan 2 and plan 3 account, the public 38
facilities construction loan revolving account, the public health 39
supplemental account, the public works assistance account, the Puget 40
p. 8 HB 2720
Sound capital construction account, the Puget Sound ferry operations 1
account, the Puget Sound Gateway facility account, the Puget Sound 2
taxpayer accountability account, the real estate appraiser commission 3
account, the recreational vehicle account, the regional mobility 4
grant program account, the reserve officers' relief and pension 5
principal fund, the resource management cost account, the rural 6
arterial trust account, the rural mobility grant program account, the 7
rural Washington loan fund, the second injury fund, the sexual 8
assault prevention and response account, the site closure account, 9
the skilled nursing facility safety net trust fund, the small city 10
pavement and sidewalk account, the special category C account, the 11
special wildlife account, the state hazard mitigation revolving loan 12
account, the state investment board expense account, the state 13
investment board commingled trust fund accounts, the state patrol 14
highway account, the state reclamation revolving account, the state 15
route number 520 civil penalties account, the state route number 520 16
corridor account, the statewide broadband account, the statewide 17
tourism marketing account, the supplemental pension account, the 18
Tacoma Narrows toll bridge account, the teachers' retirement system 19
plan 1 account, the teachers' retirement system combined plan 2 and 20
plan 3 account, the tobacco prevention and control account, the 21
tobacco settlement account, the toll facility bond retirement 22
account, the transportation 2003 account (nickel account), the 23
transportation equipment fund, the JUDY transportation future funding 24
program account, the transportation improvement account, the 25
transportation improvement board bond retirement account, the 26
transportation infrastructure account, the transportation partnership 27
account, the traumatic brain injury account, the tribal opioid 28
prevention and treatment account, the University of Washington bond 29
retirement fund, the University of Washington building account, the 30
voluntary cleanup account, the volunteer firefighters' relief and 31
pension principal fund, the volunteer firefighters' and reserve 32
officers' administrative fund, the vulnerable roadway user education 33
account, the Washington judicial retirement system account, the 34
Washington law enforcement officers' and firefighters' system plan 1 35
retirement account, the Washington law enforcement officers' and 36
firefighters' system plan 2 retirement account, the Washington public 37
safety employees' plan 2 retirement account, the Washington school 38
employees' retirement system combined plan 2 and 3 account, the 39
Washington state patrol retirement account, the Washington State 40
p. 9 HB 2720
University building account, the Washington State University bond 1
retirement fund, the water pollution control revolving administration 2
account, the water pollution control revolving fund, the Western 3
Washington University capital projects account, the Yakima integrated 4
plan implementation account, the Yakima integrated plan 5
implementation revenue recovery account, and the Yakima integrated 6
plan implementation taxable bond account. Earnings derived from 7
investing balances of the agricultural permanent fund, the normal 8
school permanent fund, the permanent common school fund, the 9
scientific permanent fund, and the state university permanent fund 10
shall be allocated to their respective beneficiary accounts.11
(b) Any state agency that has independent authority over accounts 12
or funds not statutorily required to be held in the state treasury 13
that deposits funds into a fund or account in the state treasury 14
pursuant to an agreement with the office of the state treasurer shall 15
receive its proportionate share of earnings based upon each account's 16
or fund's average daily balance for the period. 17
(5) In conformance with Article II, section 37 of the state 18
Constitution, no treasury accounts or funds shall be allocated 19
earnings without the specific affirmative directive of this section.20
Sec. 8. RCW 43.84.092 and 2025 c 417 s 802, 2025 c 399 s 15, and 21
2025 c 299 s 21 are each reenacted and amended to read as follows:22
(1) All earnings of investments of surplus balances in the state 23
treasury shall be deposited to the treasury income account, which 24
account is hereby established in the state treasury.25
(2) The treasury income account shall be utilized to pay or 26
receive funds associated with federal programs as required by the 27
federal cash management improvement act of 1990. The treasury income 28
account is subject in all respects to chapter 43.88 RCW, but no 29
appropriation is required for refunds or allocations of interest 30
earnings required by the cash management improvement act. Refunds of 31
interest to the federal treasury required under the cash management 32
improvement act fall under RCW 43.88.180 and shall not require 33
appropriation. The office of financial management shall determine the 34
amounts due to or from the federal government pursuant to the cash 35
management improvement act. The office of financial management may 36
direct transfers of funds between accounts as deemed necessary to 37
implement the provisions of the cash management improvement act, and 38
this subsection. Refunds or allocations shall occur prior to the 39
p. 10 HB 2720
distributions of earnings set forth in subsection (4) of this 1
section. 2
(3) Except for the provisions of RCW 43.84.160, the treasury 3
income account may be utilized for the payment of purchased banking 4
services on behalf of treasury funds including, but not limited to, 5
depository, safekeeping, and disbursement functions for the state 6
treasury and affected state agencies. The treasury income account is 7
subject in all respects to chapter 43.88 RCW, but no appropriation is 8
required for payments to financial institutions. Payments shall occur 9
prior to distribution of earnings set forth in subsection (4) of this 10
section. 11
(4) Monthly, the state treasurer shall distribute the earnings 12
credited to the treasury income account. The state treasurer shall 13
credit the general fund with all the earnings credited to the 14
treasury income account except: 15
(a) The following accounts and funds shall receive their 16
proportionate share of earnings based upon each account's and fund's 17
average daily balance for the period: The abandoned recreational 18
vehicle disposal account, the aeronautics account, the Alaskan Way 19
viaduct replacement project account, the ambulance transport fund, 20
the behavioral health emergency services account, the budget 21
stabilization account, the capital vessel replacement account, the 22
capitol building construction account, the Central Washington 23
University capital projects account, the charitable, educational, 24
penal and reformatory institutions account, the Chehalis basin 25
account, the Chehalis basin taxable account, the clean fuels credit 26
account, the clean fuels transportation investment account, the 27
cleanup settlement account, the Columbia river basin water supply 28
development account, the Columbia river basin taxable bond water 29
supply development account, the Columbia river basin water supply 30
revenue recovery account, the common school construction fund, the 31
community forest trust account, the connecting Washington account, 32
the county arterial preservation account, the county criminal justice 33
assistance account, the covenant homeownership account, the deferred 34
compensation administrative account, the deferred compensation 35
principal account, the department of licensing services account, the 36
department of retirement systems expense account, the developmental 37
disabilities community services account, the diesel idle reduction 38
account, the opioid abatement settlement account, the drinking water 39
assistance account, the administrative subaccount of the drinking 40
p. 11 HB 2720
water assistance account, the driver education safety improvement 1
account, the early learning facilities development account, the early 2
learning facilities revolving account, the Eastern Washington 3
University capital projects account, the education legacy trust 4
account, the election account, the electric vehicle account, the 5
energy freedom account, the energy recovery act account, the 6
essential rail assistance account, The Evergreen State College 7
capital projects account, the fair start for kids account, the family 8
medicine workforce development account, the ferry bond retirement 9
fund, the fish, wildlife, and conservation account, the freight 10
mobility investment account, the freight mobility multimodal account, 11
the grade crossing protective fund, the higher education retirement 12
plan supplemental benefit fund, the Washington student loan account, 13
the highway bond retirement fund, the highway infrastructure account, 14
the highway safety fund, the hospital safety net assessment fund, the 15
Interstate 5 bridge replacement project account, the Interstate 405 16
and state route number 167 express toll lanes account, the judges' 17
retirement account, the judicial retirement administrative account, 18
the judicial retirement principal account, the limited fish and 19
wildlife account, the local leasehold excise tax account, the local 20
real estate excise tax account, the local sales and use tax account, 21
the marine resources stewardship trust account, the medical aid 22
account, the money-purchase retirement savings administrative 23
account, the money-purchase retirement savings principal account, the 24
motor vehicle fund, the motorcycle safety education account, the move 25
ahead WA account, the move ahead WA flexible account, the multimodal 26
transportation account, the multiuse roadway safety account, the 27
municipal criminal justice assistance account, the oyster reserve 28
land account, the pension funding stabilization account, the 29
perpetual surveillance and maintenance account, the pilotage account, 30
the pollution liability insurance agency underground storage tank 31
revolving account, the public employees' retirement system plan 1 32
account, the public employees' retirement system combined plan 2 and 33
plan 3 account, the public facilities construction loan revolving 34
account, the public health supplemental account, the public works 35
assistance account, the Puget Sound capital construction account, the 36
Puget Sound ferry operations account, the Puget Sound Gateway 37
facility account, the Puget Sound taxpayer accountability account, 38
the real estate appraiser commission account, the recreational 39
vehicle account, the regional mobility grant program account, the 40
p. 12 HB 2720
reserve officers' relief and pension principal fund, the resource 1
management cost account, the rural arterial trust account, the rural 2
mobility grant program account, the rural Washington loan fund, the 3
second injury fund, the sexual assault prevention and response 4
account, the site closure account, the skilled nursing facility 5
safety net trust fund, the small city pavement and sidewalk account, 6
the special category C account, the special wildlife account, the 7
state hazard mitigation revolving loan account, the state investment 8
board expense account, the state investment board commingled trust 9
fund accounts, the state patrol highway account, the state 10
reclamation revolving account, the state route number 520 civil 11
penalties account, the state route number 520 corridor account, the 12
statewide broadband account, the statewide tourism marketing account, 13
the supplemental pension account, the Tacoma Narrows toll bridge 14
account, the teachers' retirement system plan 1 account, the 15
teachers' retirement system combined plan 2 and plan 3 account, the 16
tobacco prevention and control account, the tobacco settlement 17
account, the toll facility bond retirement account, the 18
transportation 2003 account (nickel account), the transportation 19
equipment fund, the JUDY transportation future funding program 20
account, the transportation improvement account, the transportation 21
improvement board bond retirement account, the transportation 22
infrastructure account, the transportation partnership account, the 23
traumatic brain injury account, the tribal opioid prevention and 24
treatment account, the University of Washington bond retirement fund, 25
the University of Washington building account, the voluntary cleanup 26
account, the volunteer firefighters' relief and pension principal 27
fund, the volunteer firefighters' and reserve officers' 28
administrative fund, the vulnerable roadway user education account, 29
the Washington judicial retirement system account, the Washington law 30
enforcement officers' and firefighters' system plan 1 retirement 31
account, the Washington law enforcement officers' and firefighters' 32
system plan 2 retirement account, the Washington public safety 33
employees' plan 2 retirement account, the Washington school 34
employees' retirement system combined plan 2 and 3 account, the 35
Washington state patrol retirement account, the Washington State 36
University building account, the Washington State University bond 37
retirement fund, the water pollution control revolving administration 38
account, the water pollution control revolving fund, the Western 39
Washington University capital projects account, the Yakima integrated 40
p. 13 HB 2720
plan implementation account, the Yakima integrated plan 1
implementation revenue recovery account, and the Yakima integrated 2
plan implementation taxable bond account. Earnings derived from 3
investing balances of the agricultural permanent fund, the normal 4
school permanent fund, the permanent common school fund, the 5
scientific permanent fund, and the state university permanent fund 6
shall be allocated to their respective beneficiary accounts.7
(b) Any state agency that has independent authority over accounts 8
or funds not statutorily required to be held in the state treasury 9
that deposits funds into a fund or account in the state treasury 10
pursuant to an agreement with the office of the state treasurer shall 11
receive its proportionate share of earnings based upon each account's 12
or fund's average daily balance for the period. 13
(5) In conformance with Article II, section 37 of the state 14
Constitution, no treasury accounts or funds shall be allocated 15
earnings without the specific affirmative directive of this section.16
Sec. 9. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 17
2025 c 359 s 13, and 2025 c 299 s 22 are each reenacted and amended 18
to read as follows: 19
(1) All earnings of investments of surplus balances in the state 20
treasury shall be deposited to the treasury income account, which 21
account is hereby established in the state treasury.22
(2) The treasury income account shall be utilized to pay or 23
receive funds associated with federal programs as required by the 24
federal cash management improvement act of 1990. The treasury income 25
account is subject in all respects to chapter 43.88 RCW, but no 26
appropriation is required for refunds or allocations of interest 27
earnings required by the cash management improvement act. Refunds of 28
interest to the federal treasury required under the cash management 29
improvement act fall under RCW 43.88.180 and shall not require 30
appropriation. The office of financial management shall determine the 31
amounts due to or from the federal government pursuant to the cash 32
management improvement act. The office of financial management may 33
direct transfers of funds between accounts as deemed necessary to 34
implement the provisions of the cash management improvement act, and 35
this subsection. Refunds or allocations shall occur prior to the 36
distributions of earnings set forth in subsection (4) of this 37
section. 38
p. 14 HB 2720
(3) Except for the provisions of RCW 43.84.160, the treasury 1
income account may be utilized for the payment of purchased banking 2
services on behalf of treasury funds including, but not limited to, 3
depository, safekeeping, and disbursement functions for the state 4
treasury and affected state agencies. The treasury income account is 5
subject in all respects to chapter 43.88 RCW, but no appropriation is 6
required for payments to financial institutions. Payments shall occur 7
prior to distribution of earnings set forth in subsection (4) of this 8
section. 9
(4) Monthly, the state treasurer shall distribute the earnings 10
credited to the treasury income account. The state treasurer shall 11
credit the general fund with all the earnings credited to the 12
treasury income account except: 13
(a) The following accounts and funds shall receive their 14
proportionate share of earnings based upon each account's and fund's 15
average daily balance for the period: The abandoned recreational 16
vehicle disposal account, the aeronautics account, the Alaskan Way 17
viaduct replacement project account, the behavioral health emergency 18
services account, the budget stabilization account, the capital 19
vessel replacement account, the capitol building construction 20
account, the Central Washington University capital projects account, 21
the charitable, educational, penal and reformatory institutions 22
account, the Chehalis basin account, the Chehalis basin taxable 23
account, the clean fuels credit account, the clean fuels 24
transportation investment account, the cleanup settlement account, 25
the Columbia river basin water supply development account, the 26
Columbia river basin taxable bond water supply development account, 27
the Columbia river basin water supply revenue recovery account, the 28
common school construction fund, the community forest trust account, 29
the connecting Washington account, the county arterial preservation 30
account, the county criminal justice assistance account, the covenant 31
homeownership account, the deferred compensation administrative 32
account, the deferred compensation principal account, the department 33
of licensing services account, the department of retirement systems 34
expense account, the developmental disabilities community services 35
account, the diesel idle reduction account, the opioid abatement 36
settlement account, the drinking water assistance account, the 37
administrative subaccount of the drinking water assistance account, 38
the driver education safety improvement account, the early learning 39
facilities development account, the early learning facilities 40
p. 15 HB 2720
revolving account, the Eastern Washington University capital projects 1
account, the education legacy trust account, the election account, 2
the electric vehicle account, the energy freedom account, the energy 3
recovery act account, the essential rail assistance account, The 4
Evergreen State College capital projects account, the fair start for 5
kids account, the family medicine workforce development account, the 6
ferry bond retirement fund, the fish, wildlife, and conservation 7
account, the freight mobility investment account, the freight 8
mobility multimodal account, the grade crossing protective fund, the 9
higher education retirement plan supplemental benefit fund, the 10
Washington student loan account, the highway bond retirement fund, 11
the highway infrastructure account, the highway safety fund, the 12
hospital safety net assessment fund, the Interstate 5 bridge 13
replacement project account, the Interstate 405 and state route 14
number 167 express toll lanes account, the judges' retirement 15
account, the judicial retirement administrative account, the judicial 16
retirement principal account, the limited fish and wildlife account, 17
the local leasehold excise tax account, the local real estate excise 18
tax account, the local sales and use tax account, the marine 19
resources stewardship trust account, the medical aid account, the 20
money-purchase retirement savings administrative account, the money-21
purchase retirement savings principal account, the motor vehicle 22
fund, the motorcycle safety education account, the move ahead WA 23
account, the move ahead WA flexible account, the multimodal 24
transportation account, the multiuse roadway safety account, the 25
municipal criminal justice assistance account, the oyster reserve 26
land account, the pension funding stabilization account, the 27
perpetual surveillance and maintenance account, the pilotage account, 28
the pollution liability insurance agency underground storage tank 29
revolving account, the medicaid access program account, the public 30
employees' retirement system plan 1 account, the public employees' 31
retirement system combined plan 2 and plan 3 account, the public 32
facilities construction loan revolving account, the public health 33
supplemental account, the public works assistance account, the Puget 34
Sound capital construction account, the Puget Sound ferry operations 35
account, the Puget Sound Gateway facility account, the Puget Sound 36
taxpayer accountability account, the real estate appraiser commission 37
account, the recreational vehicle account, the regional mobility 38
grant program account, the reserve officers' relief and pension 39
principal fund, the resource management cost account, the rural 40
p. 16 HB 2720
arterial trust account, the rural mobility grant program account, the 1
rural Washington loan fund, the second injury fund, the sexual 2
assault prevention and response account, the site closure account, 3
the skilled nursing facility safety net trust fund, the small city 4
pavement and sidewalk account, the special category C account, the 5
special wildlife account, the state hazard mitigation revolving loan 6
account, the state investment board expense account, the state 7
investment board commingled trust fund accounts, the state patrol 8
highway account, the state reclamation revolving account, the state 9
route number 520 civil penalties account, the state route number 520 10
corridor account, the statewide broadband account, the statewide 11
tourism marketing account, the supplemental pension account, the 12
Tacoma Narrows toll bridge account, the teachers' retirement system 13
plan 1 account, the teachers' retirement system combined plan 2 and 14
plan 3 account, the tobacco prevention and control account, the 15
tobacco settlement account, the toll facility bond retirement 16
account, the transportation 2003 account (nickel account), the 17
transportation equipment fund, the JUDY transportation future funding 18
program account, the transportation improvement account, the 19
transportation improvement board bond retirement account, the 20
transportation infrastructure account, the transportation partnership 21
account, the traumatic brain injury account, the tribal opioid 22
prevention and treatment account, the University of Washington bond 23
retirement fund, the University of Washington building account, the 24
voluntary cleanup account, the volunteer firefighters' relief and 25
pension principal fund, the volunteer firefighters' and reserve 26
officers' administrative fund, the vulnerable roadway user education 27
account, the Washington judicial retirement system account, the 28
Washington law enforcement officers' and firefighters' system plan 1 29
retirement account, the Washington law enforcement officers' and 30
firefighters' system plan 2 retirement account, the Washington public 31
safety employees' plan 2 retirement account, the Washington school 32
employees' retirement system combined plan 2 and 3 account, the 33
Washington state patrol retirement account, the Washington State 34
University building account, the Washington State University bond 35
retirement fund, the water pollution control revolving administration 36
account, the water pollution control revolving fund, the Western 37
Washington University capital projects account, the Yakima integrated 38
plan implementation account, the Yakima integrated plan 39
implementation revenue recovery account, and the Yakima integrated 40
p. 17 HB 2720
plan implementation taxable bond account. Earnings derived from 1
investing balances of the agricultural permanent fund, the normal 2
school permanent fund, the permanent common school fund, the 3
scientific permanent fund, and the state university permanent fund 4
shall be allocated to their respective beneficiary accounts.5
(b) Any state agency that has independent authority over accounts 6
or funds not statutorily required to be held in the state treasury 7
that deposits funds into a fund or account in the state treasury 8
pursuant to an agreement with the office of the state treasurer shall 9
receive its proportionate share of earnings based upon each account's 10
or fund's average daily balance for the period. 11
(5) In conformance with Article II, section 37 of the state 12
Constitution, no treasury accounts or funds shall be allocated 13
earnings without the specific affirmative directive of this section.14
Sec. 10. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 15
and 2025 c 299 s 22 are each reenacted and amended to read as 16
follows: 17
(1) All earnings of investments of surplus balances in the state 18
treasury shall be deposited to the treasury income account, which 19
account is hereby established in the state treasury.20
(2) The treasury income account shall be utilized to pay or 21
receive funds associated with federal programs as required by the 22
federal cash management improvement act of 1990. The treasury income 23
account is subject in all respects to chapter 43.88 RCW, but no 24
appropriation is required for refunds or allocations of interest 25
earnings required by the cash management improvement act. Refunds of 26
interest to the federal treasury required under the cash management 27
improvement act fall under RCW 43.88.180 and shall not require 28
appropriation. The office of financial management shall determine the 29
amounts due to or from the federal government pursuant to the cash 30
management improvement act. The office of financial management may 31
direct transfers of funds between accounts as deemed necessary to 32
implement the provisions of the cash management improvement act, and 33
this subsection. Refunds or allocations shall occur prior to the 34
distributions of earnings set forth in subsection (4) of this 35
section. 36
(3) Except for the provisions of RCW 43.84.160, the treasury 37
income account may be utilized for the payment of purchased banking 38
services on behalf of treasury funds including, but not limited to, 39
p. 18 HB 2720
depository, safekeeping, and disbursement functions for the state 1
treasury and affected state agencies. The treasury income account is 2
subject in all respects to chapter 43.88 RCW, but no appropriation is 3
required for payments to financial institutions. Payments shall occur 4
prior to distribution of earnings set forth in subsection (4) of this 5
section. 6
(4) Monthly, the state treasurer shall distribute the earnings 7
credited to the treasury income account. The state treasurer shall 8
credit the general fund with all the earnings credited to the 9
treasury income account except: 10
(a) The following accounts and funds shall receive their 11
proportionate share of earnings based upon each account's and fund's 12
average daily balance for the period: The abandoned recreational 13
vehicle disposal account, the aeronautics account, the Alaskan Way 14
viaduct replacement project account, the behavioral health emergency 15
services account, the budget stabilization account, the capital 16
vessel replacement account, the capitol building construction 17
account, the Central Washington University capital projects account, 18
the charitable, educational, penal and reformatory institutions 19
account, the Chehalis basin account, the Chehalis basin taxable 20
account, the clean fuels credit account, the clean fuels 21
transportation investment account, the cleanup settlement account, 22
the Columbia river basin water supply development account, the 23
Columbia river basin taxable bond water supply development account, 24
the Columbia river basin water supply revenue recovery account, the 25
common school construction fund, the community forest trust account, 26
the connecting Washington account, the county arterial preservation 27
account, the county criminal justice assistance account, the covenant 28
homeownership account, the deferred compensation administrative 29
account, the deferred compensation principal account, the department 30
of licensing services account, the department of retirement systems 31
expense account, the developmental disabilities community services 32
account, the diesel idle reduction account, the opioid abatement 33
settlement account, the drinking water assistance account, the 34
administrative subaccount of the drinking water assistance account, 35
the driver education safety improvement account, the early learning 36
facilities development account, the early learning facilities 37
revolving account, the Eastern Washington University capital projects 38
account, the education legacy trust account, the election account, 39
the electric vehicle account, the energy freedom account, the energy 40
p. 19 HB 2720
recovery act account, the essential rail assistance account, The 1
Evergreen State College capital projects account, the fair start for 2
kids account, the family medicine workforce development account, the 3
ferry bond retirement fund, the fish, wildlife, and conservation 4
account, the freight mobility investment account, the freight 5
mobility multimodal account, the grade crossing protective fund, the 6
higher education retirement plan supplemental benefit fund, the 7
Washington student loan account, the highway bond retirement fund, 8
the highway infrastructure account, the highway safety fund, the 9
hospital safety net assessment fund, the Interstate 5 bridge 10
replacement project account, the Interstate 405 and state route 11
number 167 express toll lanes account, the judges' retirement 12
account, the judicial retirement administrative account, the judicial 13
retirement principal account, the limited fish and wildlife account, 14
the local leasehold excise tax account, the local real estate excise 15
tax account, the local sales and use tax account, the marine 16
resources stewardship trust account, the medical aid account, the 17
money-purchase retirement savings administrative account, the money-18
purchase retirement savings principal account, the motor vehicle 19
fund, the motorcycle safety education account, the move ahead WA 20
account, the move ahead WA flexible account, the multimodal 21
transportation account, the multiuse roadway safety account, the 22
municipal criminal justice assistance account, the oyster reserve 23
land account, the pension funding stabilization account, the 24
perpetual surveillance and maintenance account, the pilotage account, 25
the pollution liability insurance agency underground storage tank 26
revolving account, the public employees' retirement system plan 1 27
account, the public employees' retirement system combined plan 2 and 28
plan 3 account, the public facilities construction loan revolving 29
account, the public health supplemental account, the public works 30
assistance account, the Puget Sound capital construction account, the 31
Puget Sound ferry operations account, the Puget Sound Gateway 32
facility account, the Puget Sound taxpayer accountability account, 33
the real estate appraiser commission account, the recreational 34
vehicle account, the regional mobility grant program account, the 35
reserve officers' relief and pension principal fund, the resource 36
management cost account, the rural arterial trust account, the rural 37
mobility grant program account, the rural Washington loan fund, the 38
second injury fund, the sexual assault prevention and response 39
account, the site closure account, the skilled nursing facility 40
p. 20 HB 2720
safety net trust fund, the small city pavement and sidewalk account, 1
the special category C account, the special wildlife account, the 2
state hazard mitigation revolving loan account, the state investment 3
board expense account, the state investment board commingled trust 4
fund accounts, the state patrol highway account, the state 5
reclamation revolving account, the state route number 520 civil 6
penalties account, the state route number 520 corridor account, the 7
statewide broadband account, the statewide tourism marketing account, 8
the supplemental pension account, the Tacoma Narrows toll bridge 9
account, the teachers' retirement system plan 1 account, the 10
teachers' retirement system combined plan 2 and plan 3 account, the 11
tobacco prevention and control account, the tobacco settlement 12
account, the toll facility bond retirement account, the 13
transportation 2003 account (nickel account), the transportation 14
equipment fund, the JUDY transportation future funding program 15
account, the transportation improvement account, the transportation 16
improvement board bond retirement account, the transportation 17
infrastructure account, the transportation partnership account, the 18
traumatic brain injury account, the tribal opioid prevention and 19
treatment account, the University of Washington bond retirement fund, 20
the University of Washington building account, the voluntary cleanup 21
account, the volunteer firefighters' relief and pension principal 22
fund, the volunteer firefighters' and reserve officers' 23
administrative fund, the vulnerable roadway user education account, 24
the Washington judicial retirement system account, the Washington law 25
enforcement officers' and firefighters' system plan 1 retirement 26
account, the Washington law enforcement officers' and firefighters' 27
system plan 2 retirement account, the Washington public safety 28
employees' plan 2 retirement account, the Washington school 29
employees' retirement system combined plan 2 and 3 account, the 30
Washington state patrol retirement account, the Washington State 31
University building account, the Washington State University bond 32
retirement fund, the water pollution control revolving administration 33
account, the water pollution control revolving fund, the Western 34
Washington University capital projects account, the Yakima integrated 35
plan implementation account, the Yakima integrated plan 36
implementation revenue recovery account, and the Yakima integrated 37
plan implementation taxable bond account. Earnings derived from 38
investing balances of the agricultural permanent fund, the normal 39
school permanent fund, the permanent common school fund, the 40
p. 21 HB 2720
scientific permanent fund, and the state university permanent fund 1
shall be allocated to their respective beneficiary accounts.2
(b) Any state agency that has independent authority over accounts 3
or funds not statutorily required to be held in the state treasury 4
that deposits funds into a fund or account in the state treasury 5
pursuant to an agreement with the office of the state treasurer shall 6
receive its proportionate share of earnings based upon each account's 7
or fund's average daily balance for the period. 8
(5) In conformance with Article II, section 37 of the state 9
Constitution, no treasury accounts or funds shall be allocated 10
earnings without the specific affirmative directive of this section.11
Sec. 11. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 12
2025 c 359 s 13, 2025 c 299 s 22, and 2025 c 228 s 15 are each 13
reenacted and amended to read as follows: 14
(1) All earnings of investments of surplus balances in the state 15
treasury shall be deposited to the treasury income account, which 16
account is hereby established in the state treasury.17
(2) The treasury income account shall be utilized to pay or 18
receive funds associated with federal programs as required by the 19
federal cash management improvement act of 1990. The treasury income 20
account is subject in all respects to chapter 43.88 RCW, but no 21
appropriation is required for refunds or allocations of interest 22
earnings required by the cash management improvement act. Refunds of 23
interest to the federal treasury required under the cash management 24
improvement act fall under RCW 43.88.180 and shall not require 25
appropriation. The office of financial management shall determine the 26
amounts due to or from the federal government pursuant to the cash 27
management improvement act. The office of financial management may 28
direct transfers of funds between accounts as deemed necessary to 29
implement the provisions of the cash management improvement act, and 30
this subsection. Refunds or allocations shall occur prior to the 31
distributions of earnings set forth in subsection (4) of this 32
section. 33
(3) Except for the provisions of RCW 43.84.160, the treasury 34
income account may be utilized for the payment of purchased banking 35
services on behalf of treasury funds including, but not limited to, 36
depository, safekeeping, and disbursement functions for the state 37
treasury and affected state agencies. The treasury income account is 38
subject in all respects to chapter 43.88 RCW, but no appropriation is 39
p. 22 HB 2720
required for payments to financial institutions. Payments shall occur 1
prior to distribution of earnings set forth in subsection (4) of this 2
section. 3
(4) Monthly, the state treasurer shall distribute the earnings 4
credited to the treasury income account. The state treasurer shall 5
credit the general fund with all the earnings credited to the 6
treasury income account except: 7
(a) The following accounts and funds shall receive their 8
proportionate share of earnings based upon each account's and fund's 9
average daily balance for the period: The abandoned recreational 10
vehicle disposal account, the aeronautics account, the Alaskan Way 11
viaduct replacement project account, the behavioral health emergency 12
services account, the budget stabilization account, the capital 13
vessel replacement account, the capitol building construction 14
account, the Central Washington University capital projects account, 15
the charitable, educational, penal and reformatory institutions 16
account, the Chehalis basin account, the Chehalis basin taxable 17
account, the clean fuels credit account, the clean fuels 18
transportation investment account, the cleanup settlement account, 19
the Columbia river basin water supply development account, the 20
Columbia river basin taxable bond water supply development account, 21
the Columbia river basin water supply revenue recovery account, the 22
common school construction fund, the community forest trust account, 23
the connecting Washington account, the county arterial preservation 24
account, the county criminal justice assistance account, the covenant 25
homeownership account, the deferred compensation administrative 26
account, the deferred compensation principal account, the department 27
of licensing services account, the department of retirement systems 28
expense account, the developmental disabilities community services 29
account, the diesel idle reduction account, the opioid abatement 30
settlement account, the drinking water assistance account, the 31
administrative subaccount of the drinking water assistance account, 32
the driver education safety improvement account, the early learning 33
facilities development account, the early learning facilities 34
revolving account, the Eastern Washington University capital projects 35
account, the education legacy trust account, the election account, 36
the electric vehicle account, the energy freedom account, the energy 37
recovery act account, the essential rail assistance account, The 38
Evergreen State College capital projects account, the fair start for 39
kids account, the family medicine workforce development account, the 40
p. 23 HB 2720
ferry bond retirement fund, the fish, wildlife, and conservation 1
account, the freight mobility investment account, the freight 2
mobility multimodal account, the grade crossing protective fund, the 3
higher education retirement plan supplemental benefit fund, the 4
Washington student loan account, the highway bond retirement fund, 5
the highway infrastructure account, the highway safety fund, the 6
hospital safety net assessment fund, the intelligent speed assistance 7
device revolving account, the Interstate 5 bridge replacement project 8
account, the Interstate 405 and state route number 167 express toll 9
lanes account, the judges' retirement account, the judicial 10
retirement administrative account, the judicial retirement principal 11
account, the limited fish and wildlife account, the local leasehold 12
excise tax account, the local real estate excise tax account, the 13
local sales and use tax account, the marine resources stewardship 14
trust account, the medical aid account, the money-purchase retirement 15
savings administrative account, the money-purchase retirement savings 16
principal account, the motor vehicle fund, the motorcycle safety 17
education account, the move ahead WA account, the move ahead WA 18
flexible account, the multimodal transportation account, the multiuse 19
roadway safety account, the municipal criminal justice assistance 20
account, the oyster reserve land account, the pension funding 21
stabilization account, the perpetual surveillance and maintenance 22
account, the pilotage account, the pollution liability insurance 23
agency underground storage tank revolving account, the medicaid 24
access program account, the public employees' retirement system plan 25
1 account, the public employees' retirement system combined plan 2 26
and plan 3 account, the public facilities construction loan revolving 27
account, the public health supplemental account, the public works 28
assistance account, the Puget Sound capital construction account, the 29
Puget Sound ferry operations account, the Puget Sound Gateway 30
facility account, the Puget Sound taxpayer accountability account, 31
the real estate appraiser commission account, the recreational 32
vehicle account, the regional mobility grant program account, the 33
reserve officers' relief and pension principal fund, the resource 34
management cost account, the rural arterial trust account, the rural 35
mobility grant program account, the rural Washington loan fund, the 36
second injury fund, the sexual assault prevention and response 37
account, the site closure account, the skilled nursing facility 38
safety net trust fund, the small city pavement and sidewalk account, 39
the special category C account, the special wildlife account, the 40
p. 24 HB 2720
state hazard mitigation revolving loan account, the state investment 1
board expense account, the state investment board commingled trust 2
fund accounts, the state patrol highway account, the state 3
reclamation revolving account, the state route number 520 civil 4
penalties account, the state route number 520 corridor account, the 5
statewide broadband account, the statewide tourism marketing account, 6
the supplemental pension account, the Tacoma Narrows toll bridge 7
account, the teachers' retirement system plan 1 account, the 8
teachers' retirement system combined plan 2 and plan 3 account, the 9
tobacco prevention and control account, the tobacco settlement 10
account, the toll facility bond retirement account, the 11
transportation 2003 account (nickel account), the transportation 12
equipment fund, the JUDY transportation future funding program 13
account, the transportation improvement account, the transportation 14
improvement board bond retirement account, the transportation 15
infrastructure account, the transportation partnership account, the 16
traumatic brain injury account, the tribal opioid prevention and 17
treatment account, the University of Washington bond retirement fund, 18
the University of Washington building account, the voluntary cleanup 19
account, the volunteer firefighters' relief and pension principal 20
fund, the volunteer firefighters' and reserve officers' 21
administrative fund, the vulnerable roadway user education account, 22
the Washington judicial retirement system account, the Washington law 23
enforcement officers' and firefighters' system plan 1 retirement 24
account, the Washington law enforcement officers' and firefighters' 25
system plan 2 retirement account, the Washington public safety 26
employees' plan 2 retirement account, the Washington school 27
employees' retirement system combined plan 2 and 3 account, the 28
Washington state patrol retirement account, the Washington State 29
University building account, the Washington State University bond 30
retirement fund, the water pollution control revolving administration 31
account, the water pollution control revolving fund, the Western 32
Washington University capital projects account, the Yakima integrated 33
plan implementation account, the Yakima integrated plan 34
implementation revenue recovery account, and the Yakima integrated 35
plan implementation taxable bond account. Earnings derived from 36
investing balances of the agricultural permanent fund, the normal 37
school permanent fund, the permanent common school fund, the 38
scientific permanent fund, and the state university permanent fund 39
shall be allocated to their respective beneficiary accounts.40
p. 25 HB 2720
(b) Any state agency that has independent authority over accounts 1
or funds not statutorily required to be held in the state treasury 2
that deposits funds into a fund or account in the state treasury 3
pursuant to an agreement with the office of the state treasurer shall 4
receive its proportionate share of earnings based upon each account's 5
or fund's average daily balance for the period. 6
(5) In conformance with Article II, section 37 of the state 7
Constitution, no treasury accounts or funds shall be allocated 8
earnings without the specific affirmative directive of this section.9
Sec. 12. RCW 43.84.092 and 2025 c 417 s 803, 2025 c 399 s 16, 10
2025 c 299 s 22, and 2025 c 228 s 15 are each reenacted and amended 11
to read as follows: 12
(1) All earnings of investments of surplus balances in the state 13
treasury shall be deposited to the treasury income account, which 14
account is hereby established in the state treasury.15
(2) The treasury income account shall be utilized to pay or 16
receive funds associated with federal programs as required by the 17
federal cash management improvement act of 1990. The treasury income 18
account is subject in all respects to chapter 43.88 RCW, but no 19
appropriation is required for refunds or allocations of interest 20
earnings required by the cash management improvement act. Refunds of 21
interest to the federal treasury required under the cash management 22
improvement act fall under RCW 43.88.180 and shall not require 23
appropriation. The office of financial management shall determine the 24
amounts due to or from the federal government pursuant to the cash 25
management improvement act. The office of financial management may 26
direct transfers of funds between accounts as deemed necessary to 27
implement the provisions of the cash management improvement act, and 28
this subsection. Refunds or allocations shall occur prior to the 29
distributions of earnings set forth in subsection (4) of this 30
section. 31
(3) Except for the provisions of RCW 43.84.160, the treasury 32
income account may be utilized for the payment of purchased banking 33
services on behalf of treasury funds including, but not limited to, 34
depository, safekeeping, and disbursement functions for the state 35
treasury and affected state agencies. The treasury income account is 36
subject in all respects to chapter 43.88 RCW, but no appropriation is 37
required for payments to financial institutions. Payments shall occur 38
p. 26 HB 2720
prior to distribution of earnings set forth in subsection (4) of this 1
section. 2
(4) Monthly, the state treasurer shall distribute the earnings 3
credited to the treasury income account. The state treasurer shall 4
credit the general fund with all the earnings credited to the 5
treasury income account except: 6
(a) The following accounts and funds shall receive their 7
proportionate share of earnings based upon each account's and fund's 8
average daily balance for the period: The abandoned recreational 9
vehicle disposal account, the aeronautics account, the Alaskan Way 10
viaduct replacement project account, the behavioral health emergency 11
services account, the budget stabilization account, the capital 12
vessel replacement account, the capitol building construction 13
account, the Central Washington University capital projects account, 14
the charitable, educational, penal and reformatory institutions 15
account, the Chehalis basin account, the Chehalis basin taxable 16
account, the clean fuels credit account, the clean fuels 17
transportation investment account, the cleanup settlement account, 18
the Columbia river basin water supply development account, the 19
Columbia river basin taxable bond water supply development account, 20
the Columbia river basin water supply revenue recovery account, the 21
common school construction fund, the community forest trust account, 22
the connecting Washington account, the county arterial preservation 23
account, the county criminal justice assistance account, the covenant 24
homeownership account, the deferred compensation administrative 25
account, the deferred compensation principal account, the department 26
of licensing services account, the department of retirement systems 27
expense account, the developmental disabilities community services 28
account, the diesel idle reduction account, the opioid abatement 29
settlement account, the drinking water assistance account, the 30
administrative subaccount of the drinking water assistance account, 31
the driver education safety improvement account, the early learning 32
facilities development account, the early learning facilities 33
revolving account, the Eastern Washington University capital projects 34
account, the education legacy trust account, the election account, 35
the electric vehicle account, the energy freedom account, the energy 36
recovery act account, the essential rail assistance account, The 37
Evergreen State College capital projects account, the fair start for 38
kids account, the family medicine workforce development account, the 39
ferry bond retirement fund, the fish, wildlife, and conservation 40
p. 27 HB 2720
account, the freight mobility investment account, the freight 1
mobility multimodal account, the grade crossing protective fund, the 2
higher education retirement plan supplemental benefit fund, the 3
Washington student loan account, the highway bond retirement fund, 4
the highway infrastructure account, the highway safety fund, the 5
hospital safety net assessment fund, the intelligent speed assistance 6
device revolving account, the Interstate 5 bridge replacement project 7
account, the Interstate 405 and state route number 167 express toll 8
lanes account, the judges' retirement account, the judicial 9
retirement administrative account, the judicial retirement principal 10
account, the limited fish and wildlife account, the local leasehold 11
excise tax account, the local real estate excise tax account, the 12
local sales and use tax account, the marine resources stewardship 13
trust account, the medical aid account, the money-purchase retirement 14
savings administrative account, the money-purchase retirement savings 15
principal account, the motor vehicle fund, the motorcycle safety 16
education account, the move ahead WA account, the move ahead WA 17
flexible account, the multimodal transportation account, the multiuse 18
roadway safety account, the municipal criminal justice assistance 19
account, the oyster reserve land account, the pension funding 20
stabilization account, the perpetual surveillance and maintenance 21
account, the pilotage account, the pollution liability insurance 22
agency underground storage tank revolving account, the public 23
employees' retirement system plan 1 account, the public employees' 24
retirement system combined plan 2 and plan 3 account, the public 25
facilities construction loan revolving account, the public health 26
supplemental account, the public works assistance account, the Puget 27
Sound capital construction account, the Puget Sound ferry operations 28
account, the Puget Sound Gateway facility account, the Puget Sound 29
taxpayer accountability account, the real estate appraiser commission 30
account, the recreational vehicle account, the regional mobility 31
grant program account, the reserve officers' relief and pension 32
principal fund, the resource management cost account, the rural 33
arterial trust account, the rural mobility grant program account, the 34
rural Washington loan fund, the second injury fund, the sexual 35
assault prevention and response account, the site closure account, 36
the skilled nursing facility safety net trust fund, the small city 37
pavement and sidewalk account, the special category C account, the 38
special wildlife account, the state hazard mitigation revolving loan 39
account, the state investment board expense account, the state 40
p. 28 HB 2720
investment board commingled trust fund accounts, the state patrol 1
highway account, the state reclamation revolving account, the state 2
route number 520 civil penalties account, the state route number 520 3
corridor account, the statewide broadband account, the statewide 4
tourism marketing account, the supplemental pension account, the 5
Tacoma Narrows toll bridge account, the teachers' retirement system 6
plan 1 account, the teachers' retirement system combined plan 2 and 7
plan 3 account, the tobacco prevention and control account, the 8
tobacco settlement account, the toll facility bond retirement 9
account, the transportation 2003 account (nickel account), the 10
transportation equipment fund, the JUDY transportation future funding 11
program account, the transportation improvement account, the 12
transportation improvement board bond retirement account, the 13
transportation infrastructure account, the transportation partnership 14
account, the traumatic brain injury account, the tribal opioid 15
prevention and treatment account, the University of Washington bond 16
retirement fund, the University of Washington building account, the 17
voluntary cleanup account, the volunteer firefighters' relief and 18
pension principal fund, the volunteer firefighters' and reserve 19
officers' administrative fund, the vulnerable roadway user education 20
account, the Washington judicial retirement system account, the 21
Washington law enforcement officers' and firefighters' system plan 1 22
retirement account, the Washington law enforcement officers' and 23
firefighters' system plan 2 retirement account, the Washington public 24
safety employees' plan 2 retirement account, the Washington school 25
employees' retirement system combined plan 2 and 3 account, the 26
Washington state patrol retirement account, the Washington State 27
University building account, the Washington State University bond 28
retirement fund, the water pollution control revolving administration 29
account, the water pollution control revolving fund, the Western 30
Washington University capital projects account, the Yakima integrated 31
plan implementation account, the Yakima integrated plan 32
implementation revenue recovery account, and the Yakima integrated 33
plan implementation taxable bond account. Earnings derived from 34
investing balances of the agricultural permanent fund, the normal 35
school permanent fund, the permanent common school fund, the 36
scientific permanent fund, and the state university permanent fund 37
shall be allocated to their respective beneficiary accounts.38
(b) Any state agency that has independent authority over accounts 39
or funds not statutorily required to be held in the state treasury 40
p. 29 HB 2720
that deposits funds into a fund or account in the state treasury 1
pursuant to an agreement with the office of the state treasurer shall 2
receive its proportionate share of earnings based upon each account's 3
or fund's average daily balance for the period. 4
(5) In conformance with Article II, section 37 of the state 5
Constitution, no treasury accounts or funds shall be allocated 6
earnings without the specific affirmative directive of this section.7
NEW SECTION. Sec. 13. Sections 1 through 5 of this act 8
constitute a new chapter in Title 48 RCW.9
NEW SECTION. Sec. 14. (1) Section 7 of this act expires the 10
earlier of July 1, 2028, or when RCW 74.76.040 expires.11
(2) Section 8 of this act expires July 1, 2028.12
(3) Section 9 of this act expires the earlier of January 1, 2029, 13
or when RCW 74.76.040 expires. 14
(4) Section 10 of this act expires January 1, 2029.15
(5) Section 11 of this act expires when RCW 74.76.040 expires.16
NEW SECTION. Sec. 15. (1) Section 8 of this act takes effect 17
when RCW 74.76.040 expires.18
(2) Sections 9 and 10 of this act take effect July 1, 2028.19
(3) Sections 11 and 12 of this act take effect January 1, 2029.20
NEW SECTION. Sec. 16. The provisions of this act are not 21
severable. In the event that any portion of this act shall have been 22
validly implemented and the entire act is later rendered ineffective, 23
prior assessments and payments under the validly implemented portions 24
shall not be affected.25
NEW SECTION. Sec. 17. If specific funding for the purposes of 26
this act, referencing this act by bill or chapter number, is not 27
provided by June 30, 2026, in the omnibus appropriations act, this 28
act is null and void.29
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p. 30 HB 2720