5 Washington Public Trust Act
The following is the proposed text of the Washington Public Trust Act:

AN ACT Relating to establishing the Washington Public Trust; amending RCW 42.56.270, and 42.56.400; adding a new section to chapter 39.58 RCW; adding a new section to chapter 41.06 RCW; adding a new chapter to Title 43 RCW; creating a new section; providing an effective date; providing an expiration date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 FINDINGS--INTENT.
(1) The legislature finds that there are
urgent unmet public infrastructure needs.
(2) The legislature finds that these urgent unmet needs include but are not limited to a public school construction and repair backlog of more than $40 billion dollars with more than half of our public schools being more than 50 years old and not meeting either health code or earthquake code standards. Because many school districts are simply unable to pass school construction bonds, the current School Construction Matching Program has not been an adequate or efficient model for building and/or repairing our crumbling public schools.
(2) The legislature further finds that these urgent unmet needs also include the need to replace the Public Works Trust Fund with a more sustainable model. While the Public Works Trust Fund in the past has invested in more than two billion dollars in Public Works projects and returned hundreds of millions of dollars in additional revenue to the State General Fund as a result of these investments, the Public Works Trust Fund suffers from the fatal defect of being at risk of having its assets stripped any time there is a shortfall in the General Fund.
(3) The legislature further finds that both Public Works Trust Fund and Public School Construction fund are an ineffecient use of tax payer resources because they require excessive fees to bond writers and private banks.
(4) The legislature further finds that these fees and interest charges are unwarrented because no school district, city, county or other public agency in Washington state has ever failed to
fulfill its financial obligations. Indeed, most public agencies are required by law to faithfully fulfill their financial obligations. It is therefore not appropriate to treat investments in public works and public school projects as “debt” which by its very nature is a financial contract that is subject to the risk of non-payment.
(5) The legislature fur
ther finds that since public works and public school projects are not subject to risk and since these public projects by their very nature offer a long term and essential public benefit, they are more accurately classified as public investments – just as investing in public schools is not a debt but instead is a public investment in the future of our children.
(6) Therefore, the legislature intends to create the Washington Public Trust as a statewide institution in order to better facilitate our State's Public Infrastructure needs now and in the future.
(
7) The legislature intends that the Washington Public Trust may facilitate investment in public infrastructure projects that increase public health and safety as well as assisting our state in meeting its paramount duty to build and operate our public schools;
(8) The legislature intends that the Washington Public Trust will be protected from the risk of having its assets stripped by the legislature by better insulating its funds from short-sighted and capcricious withdrawals by the legislature that have in recent years led to the destruction of the Washington Public Works Trust fund. This protection will be provided through the creation of a Washington Public Trust Commission consisting of five Statewide elected officials the majority of whom will have to certifiy that funds can be removed from the Washington Public Trust from time to time in a manner that will not significantly impare the ability of the Trust to invest in essential and urgently needed public projects.
(10) The legislature intends to capitalize the Washington Public Trust with funds remaining in the Public Works Trust Fund and Funds from the School Construction Fund as well as other public funds as determined by the commission.
(11) The legislature intends that while the Washington Public Trust is to be similar in some respects to the Public Bank of North Dakota, it will be different from the Public Bank of North Dakota in that the initial operation of the Washington Public Trust will be substantially more limited than the Public Bank of North Dakota and shall not be expanded in scope until such time as additional functions are authorized by the Washington State legislature.
(
12) The mission of the Trust is to more efficiently utilize Washington's public resources for the benefit of the people and economy of our state. The legislature intends for the Public Trust to apply sound business practices to manage revenues while concurrently meeting identified public needs across the state. In achieving its purpose of improving public infrastructure, the legislature intends for the Public Trust to adhere to the following priorities:
(a) Institutional safety, soundness
and long term viability;
(
b) Social return and monetary return on investments;
(
c) Prudent and best business practices; and
(
d) Highest ethical, accountability, and transparency standards.

NEW SECTION. Sec. 2 DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Board" means the advisory board of the Washington
Public Trust.
(2) "Commission" means the Washington
Public Trust Commission.
(3) "Department" means the
Department of Financial Institutions.
(4) "Director" means the director of the department of financial institutions.
(5) "Public infrastructure
project" means a project of a local government or political subdivision, a special purpose district, a public school district, an institution of higher education as defined in RCW 28B.10.016, a federally recognized Indian tribe, or the state, including but not limited to a project involving water treatment; flood control; habitat protection, energy efficiency; transportation infrastructure; telecommunications infrastructure; public safety facilities; schools and other public educational facilities.
(6) "State-chartered bank" means any corporation organized under the laws of this state that is engaged in banking, other than a trust company, savings association, or a mutual savings bank. It does not include the Washington
Public Trust.
(7) "State moneys"
or “State funds” has the same meaning as in RCW 43.85.200.
(8) "Treasurer" means the treasurer of the state of Washington.
(9) "
Trust" and “Public Trust” mean the Washington Public Trust.
(10) “Debt” means a contract that includes repayment of principal and interest payments by a public or private entity to a private for profit commercial bank. When secured by the full faith and credit of the state, and not exempted by statute, such debt may be counted against the state debt limit.
(11) “Investment” means a contract which includes repayment of investment plus a service fee by a public entity in Washington State to the Washington Public Trust. Such public to public contracts are not subject to the State Debt Limit because the obligation for repayment is not at risk of default.
Nor are there bond fees or interest payments made to private for profit banks. School construction projects and public works projects are long term investments. Therefore, the contract between public entities is counted as an asset of the state rather than a liability of the state. In short, financial arrangements made by the Public Trust are investments, not debts.

NEW SECTION. Sec. 3 CREATION. The Washington Public Trust is created.

NEW SECTION. Sec. 4 WASHINGTON PUBLIC TRUST COMMISSION.
(1) The Washington
Public Trust Commission is created as the primary governing authority of the Washington Public Trust. The commission shall consist of five Statewide publicly elected officials: the governor, the lieutenant governor, the state treasurer, the superintendent of public instruction and the commissioner of public lands.
(2) The
Commission may adopt rules regarding the:
(a) Safety and soundness standards of the
Public Trust;
(b) Transparency requirements for
Public Trust operations;
(e) Ethics and conflict of interest requirements for the commission, the board, and officers and employees of the
Public Trust, including rules to ensure that they perform their functions in compliance with chapter 42.52 RCW; and
(f) Other topics needed for efficient administration of the
Public Trust.
(3) The
Commission shall commence Public Trust operations within 120 days following passage of this bill authorizing the Washington Public Trust.
(4) The
Commission may delegate to the Public Trust president such duties and powers as deemed necessary to carry on the business of the Public Trust and enforce this chapter efficiently and effectively. The Commission may not delegate its rule-making or policy-making authority.
(5) The
Commission may adopt policies and procedures for its own governance.
(6) The
Commission may establish technical advisory committees or consult with public and private sector experts in areas related to the trust's mission, objectives, and duties.

NEW SECTION. Sec. 5 WASHINGTON PUBLIC TRUST TRANSITION BOARD.
(1)(a) The
Washington Public Trust transition board is established, with eleven members as provided in this subsection.
(i) The president of the senate shall appoint one member from each of the two largest caucuses of the senate.
(ii) The speaker of the house of representatives shall appoint one member from each of the two largest caucuses of the house of representatives.
(iii) The
Governor shall appoint three citizen members with a background in financial issues as well as three members who currently serve with or have served in the past with the Public Works Trust Fund.
(iv) The Superintendent of Public Instruction shall appoint one member with a background in school construction issues.
(b) The president of the senate and speaker of the house of representatives jointly shall select the chair from among the citizen membership. The chair shall convene the initial meeting of the
Washington Public Trust transition board within sixty days after the passage of a bill authorizing the Washington Public Trust.
(2) The
Public Trust transition board shall develop and recommend the following to the Commission within the timeline established by the Commission:
(a) A start-up business plan for the
Trust that includes plans and timelines for functions that are new and functions transitioning to the Trust that were previously performed by other entities (including but not limited to the Public Works Trust Fund);
(b) Other items requested by the
Commission in order to commence Public Trust operations within 120 days following passage of a bill authorizing the Public Trust.
(3) Legislative members of the
Public Trust transition board must be reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members, except those representing an employer or organization, are entitled to be reimbursed for expenses incurred in the discharge of their duties under chapter 43.--- RCW (the new chapter created in section 27 of this act) in accordance with RCW 43.03.050 and 43.03.060.
(4) The
Washington Public Trust transition board may appoint an interim president and other necessary staff who are exempt from the provisions of chapter 41.06 RCW, and who serve at the board's pleasure on such terms and conditions as the board determines but subject to chapter 42.52 RCW. The department must provide technical assistance to the Public Trust transition board. The board may also contract with additional persons who have specific technical expertise if the expertise is necessary to carry out the requirements of this section.
(5) This section
takes effect upon passage of this bill authorizing the Washington Public Trust and expires 120 days following passage of this bill authorizing the Public Trust.

NEW SECTION. Sec. 6 DEPOSIT OF PUBLIC FUNDS.
(1) The Washington Public Trust shall serve as the depository for funds collected to capitalize the Public Trust under the terms defined in this bill and as determined and authorized by the commission. The commission shall establish a process and time frame for the deposit of these funds into the Public Trust. In determining whether the Public Trust has built sufficient capacity to hold and manage these funds, the commission shall consider the minimum leverage capital requirements specified in 12 C.F.R. Sec. 325.3 (2012).
(
2) The state treasurer shall deposit these funds in the Washington Public Trust account in accordance with the time frame and guidelines determined by the Commission.
(
3) All deposits in the Washington Public Trust are held in trust by the state treasurer rather than insured by the federal deposit insurance corporation. The State Treasurer is required to keep an accurate account of these funds and this account is subject to periodic audit by the Washington State Auditor.
(
4) All income earned by the Washington Public Trust on funds that are deposited in or invested with or by the Public Trust must be credited to and become a part of the revenues and income of the Public Trust except as otherwise required by law.
(
5) The Public Trust may accept deposits of public funds, but is exempt from the requirements of chapter 39.58 RCW.
(
6) The Public Trust may accept funds from any source, including federal funds or other public funds as authorized by the Commission.
(
7) The Commission shall periodically review state accounts that contain public funds that are not state funds, and make recommendations to the governor as to which accounts should be deposited in the Washington Public Trust.
(8) To facilitate ongoing legislative oversight, the Commission shall establish a separate administrative account within the Public Trust from which its administrative costs must be funded. In each biennial operating budget, the legislature shall authorize the Commission to incur a maximum expenditure from this administrative account.
(
9) In an amount not to exceed the authorized expenditures, the Commission shall proportionally allocate earnings from accounts and funds under its management and shall transfer this amount to the administrative fund. This transfer shall precede the distribution of remaining earnings under applicable statutes.
(10) The Public Trust shall deposit in the general fund any earnings that exceed the total of those necessary to make required distributions and those necessary for the continued sound operation of the Trust as determined by the Commission.

NEW SECTION. Sec. 7 FEDERAL RESERVE SYSTEM MEMBERSHIP.
The Washington Public Trust may become a member of the federal reserve system.

NEW SECTION. Sec. 8 WASHINGTON PUBLIC TRUST FUNDING AND CAPITALIZATION.
The
Washington Public Trust is authorized to manage and invest its funds to finance construction, rehabilitation, replacement, and improvement of new and existing public infrastructure projects. Such public infrastructure projects and funds include
(1)
transferral of School Construction Matching funds to the Public Trust in a manner to be determined by the Commission in order to finance the construction of public schools with those in the greatest need of replacement being prioritized by the Superintendent of Public Instruction. This is expected to place several hundred million dollars annually in the Public Trust account;
(2)
transferral of all Public Works Trust fund accounts to the Washington Public Trust, with the steps and timelines for this transition determined by the Commission. This is also expected to place several hundred million dollars annually in the Washington Public Trust account;
(3) additional sources of public funding as determined and authorized by the Commission. For example, some cities and/or counties may wish to deposit funds in the Public Trust account. This may also result in several hundred million dollars being made available for use by the Public Trust.

NEW SECTION. Sec. 9 LEGISLATIVE AUTHORITY.
Nothing in this chapter affects the ability of the legislature to appropriate from public accounts managed by the Washington Public Trust, including the ability to place any conditions or limitations on those appropriations except to the extent that such legislation would hinder the ability of the Washington Public Trust to invest in urgent and essential public projects as determined by the Commission.

NEW SECTION. Sec. 10 MANAGEMENT.
(1) The
Commission shall appoint a Washington Public Trust president. The president is exempt from the provisions of chapter 41.06 RCW. The president shall serve at the Commission's pleasure, on such terms and conditions as the Commission determines, but subject to chapter 42.52 RCW.
(2) The president shall provide support to the
Commission and the advisory board, carry out PublicTrust policies and programs, and exercise additional authority as may be delegated by the Commission.
(3) Subject to available funding and consistent with
Commission direction, the Washington Public Trust president:
(a) May employ such additional personnel as are necessary to the
Trust's operations. This employment shall be in accordance with the state civil service law, chapter 41.06 RCW; and
(b) May contract with persons who have the technical expertise needed to carry out specific, time-limited project
s.

NEW SECTION. Sec. 11 WASHINGTON PUBLIC TRUST ADVISORY BOARD.
(1)(a) The Washington Public Trust advisory board consisting of nine members is created to review the Public Trust's operations and make recommendations relating to the Public Trust's management, services, policies, and procedures.
(b) The governor shall appoint members of the advisory board, subject to confirmation by the senate.
The members of the advisory board must represent a diversity of experience relevant to activities of the Public Trust and awareness of the public needs that the Public Trust was created to serve. Advisory board members serve at the pleasure of the governor.
(c) The Public Trust board shall choose its chair from among its membership.
(2) The term of the members is three years.
Three of the initial board members must be appointed to serve an initial term of three years, three must be appointed to serve an initial term of two years, and the three remaining members must be appointed to serve an initial term of one year. All subsequent terms are three years. To ensure that the board can continue to act, a member whose term expires shall continue to serve until his or her replacement is appointed. In the case of any vacancy on the board for any reason, the governor shall appoint a new member to serve out the term of the person whose position has become vacant. A board member may be removed for cause by the governor.
(3) Members of the
Public Trust advisory board are entitled to reimbursement for expenses incurred in the discharge of their duties under this chapter, as provided in RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 12 FINANCIAL OVERSIGHT AND AUDIT.
(1) The Public Trust must maintain capital adequacy and other standard indicators of safety and soundness as are appropriate for a publicly owned financial institution.
(2) The director shall examine the
Public Trust, taking into consideration the unique circumstances of a publicly owned financial institution. The Public Trust shall pay the director for the reasonable costs of examinations.
(3) The state auditor shall conduct an annual post-audit on all accounts and financial transactions of the
Public Trust with the cooperation of the State Treasurer.

NEW SECTION. Sec. 13 PUBLIC TRUST REPORTING REQUIREMENTS.
The
Public Trust shall submit quarterly reports to the Commission in a manner and form prescribed by the Commission.

NEW SECTION. Sec. 14 COMMISSION REPORTING REQUIREMENTS.
The
Commission shall make an annual report to the legislature on the affairs of the Public Trust by December 1st of each year. This report shall include a best estimate of funds which can safely be withdrawn from the Public Trust without adversely affecting the mission of the Public Trust.


NEW SECTION. Sec. 15 ETHICAL REQUIREMENTS.
The Public Trust may not make a loan to any advisory board member, the president, or employees of the Public Trust. Advisory board members, the president, and employees of the Public Trust must follow applicable ethical requirements in chapter 42.52 RCW and in rules, policies, and procedures adopted by the Commission.

NEW SECTION. Sec. 16 FEES AND TAXES. The Public Trust is exempt from payment of all fees and taxes levied by the state or any of its subdivisions.

NEW SECTION. Sec. 17 GRANTS FOR PUBLIC WORKS PROJECTS.
As directed by the Commission, the Washington Public Trust may provide grants to communities that have such low property valuations that they cannot afford a one percent Public Works bond. This may include offering up to half of the revenue from Public Works Repayments in any given year in the form of grants for public works projects. The ranking process for these grants must include consideration for the property valuations in the community and current tax rate per thousand of assessed valuation as well as the health and safety need for the public works project.

NEW SECTION. Sec. 18 GRANTS FOR PUBLIC SCHOOL PROJECTS.
As directed by the Commission, the Washington Public Trust may provide grants to communities that have such low property valuations that they cannot afford a one percent school bond. This may include offering up to half of the revenue from State funding of school construction in any given year in the form of grants to replace unsafe and unhealthy schools. The ranking process for these grants must include consideration for the property valuations in the community and current tax rate per thousand of assessed valuation as well as the age of the school being replaced.

NEW SECTION. Sec. 19 WASHINGTON PUBLIC TRUST RECORDS.
(1) Under RCW 42.56.270 and 42.56.400, certain Public Trust business records and records of the department relating to the Public Trust are exempt from public disclosure.
(2) Financial and commercial information and records submitted to either the department or the commission for the purpose of administering this chapter may be shared between the department and the state treasurer. These records may also be used in any suit or administrative hearing involving any provision of this chapter.
(3) This section does not prohibit:
(a) The issuance of general statements based on the reports of persons subject to this chapter as long as the statements do not identify the information furnished by any person; or
(b) The publication by the director or the commission of the name of any person violating this chapter and a statement of the manner of the violation of that person.

NEW SECTION. Sec. 20 A new section is added to chapter 39.58 RCW to read as follows: The Washington Public Trust created in section 3 of this act may accept deposits of public funds, but is not a public depositary and is not subject to the requirements of this chapter.

NEW SECTION. Sec. 21 A new section is added to chapter 41.06 RCW to read as follows: In addition to the exemptions under RCW 41.06.070, the provisions of this chapter do not apply to the president of the Washington Public Trust in section 11 of this act.

Sec. 22 RCW 42.56.270 and 2011 1st sp.s. c 14 s 15 are each amended to read as follows:
The following financial, commercial, and proprietary information is exempt from disclosure under this chapter:
(1) Valuable formulae, designs, drawings, computer source code or object code, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss;
(2) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070;
(3) Financial and commercial information and records supplied by private persons pertaining to export services provided under chapters 43.163 and 53.31 RCW, and by persons pertaining to export projects under RCW 43.23.035;
(4) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.325, 43.163, 43.160, 43.330, 43.---(the new chapter created in section 23 of this act), and 43.168 RCW, or during application for economic development loans or program services provided by any local agency;
(5) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW;
(6) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information;
(7) Financial and valuable trade information under RCW 51.36.120;
(8) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW;
(9) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in RCW 36.102.010;
(10)(a) Financial information, including but not limited to account numbers and values, and other identification numbers supplied by or on behalf of a person, firm, corporation, limited liability company, partnership, or other entity related to an application for a horse racing license submitted pursuant to RCW 67.16.260(1)(b), liquor license, gambling license, or lottery retail license;
(b) Internal control documents, independent auditors' reports and financial statements, and supporting documents: (i) Of house-banked social card game licensees required by the gambling commission pursuant to rules adopted under chapter 9.46 RCW; or (ii) submitted by tribes with an approved tribal/state compact for class III gaming;
(11) Proprietary data, trade secrets, or other information that relates to: (a) A vendor's unique methods of conducting business; (b) data unique to the product or services of the vendor; or (c) determining prices or rates to be charged for services, submitted by any vendor to the department of social and health services for purposes of the development, acquisition, or implementation of state purchased health care as defined in RCW 41.05.011;
(12)(a) When supplied to and in the records of the department of commerce:
(i) Financial and proprietary information collected from any person and provided to the department of commerce pursuant to RCW 43.330.050(8); and
(ii) Financial or proprietary information collected from any person and provided to the department of commerce or the office of the governor in connection with the siting, recruitment, expansion, retention, or relocation of that person's business and until a siting decision is made, identifying information of any person supplying information under this subsection and the locations being considered for siting, relocation, or expansion of a business;
(b) When developed by the department of commerce based on information as described in (a)(i) of this subsection, any work product is not exempt from disclosure;
(c) For the purposes of this subsection, "siting decision" means the decision to acquire or not to acquire a site;
(d) If there is no written contact for a period of sixty days to the department of commerce from a person connected with siting, recruitment, expansion, retention, or relocation of that person's business, information described in (a)(ii) of this subsection will be available to the public under this chapter;
(13) Financial and proprietary information submitted to or obtained by the department of ecology or the authority created under chapter 70.95N RCW to implement chapter 70.95N RCW;
(14) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the life sciences discovery fund authority in applications for, or delivery of, grants under chapter 43.350 RCW, to the extent that such information, if revealed, would reasonably be expected to result in private loss to the providers of this information;
(15) Financial and commercial information provided as evidence to the department of licensing as required by RCW 19.112.110 or 19.112.120, except information disclosed in aggregate form that does not permit the identification of information related to individual fuel licensees;
(16) Any production records, mineral assessments, and trade secrets submitted by a permit holder, mine operator, or landowner to the department of natural resources under RCW 78.44.085;
(17)(a) Farm plans developed by conservation districts, unless permission to release the farm plan is granted by the landowner or operator who requested the plan, or the farm plan is used for the application or issuance of a permit;
(b) Farm plans developed under chapter 90.48 RCW and not under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject to RCW 42.56.610 and 90.64.190;
(18) Financial, commercial, operations, and technical and research information and data submitted to or obtained by a health sciences and services authority in applications for, or delivery of, grants under RCW 35.104.010 through 35.104.060, to the extent that such information, if revealed, would reasonably be expected to result in private loss to providers of this information;
(19) Information gathered under chapter 19.85 RCW or RCW 34.05.328 that can be identified to a particular business;
(20) Financial and commercial information submitted to or obtained by the University of Washington, other than information the university is required to disclose under RCW 28B.20.150, when the information relates to investments in private funds, to the extent that such information, if revealed, would reasonably be expected to result in loss to the University of Washington consolidated endowment fund or to result in private loss to the providers of this information; and
(21) Financial, commercial, operations, and technical and research information and data submitted to or obtained by innovate Washington in applications for, or delivery of, grants and loans under chapter 43.333 RCW, to the extent that such information, if revealed, would reasonably be expected to result in private loss to the providers of this information.

Sec. 23 RCW 42.56.400 and 2010 c 172 s 2 and 2010 c 97 s 3 are each reenacted and amended to read as follows:
The following information relating to insurance and financial institutions is exempt from disclosure under this chapter:
(1) Records maintained by the board of industrial insurance appeals that are related to appeals of crime victims' compensation claims filed with the board under RCW 7.68.110;
(2) Information obtained and exempted or withheld from public inspection by the health care authority under RCW 41.05.026, whether retained by the authority, transferred to another state purchased health care program by the authority, or transferred by the authority to a technical review committee created to facilitate the development, acquisition, or implementation of state purchased health care under chapter 41.05;
(3) The names and individual identification data of either all owners or all insureds, or both, received by the insurance commissioner under chapter 48.102 RCW;
(4) Information provided under RCW 48.30A.045 through 48.30A.060;
(5) Information provided under RCW 48.05.510 through 48.05.535, 48.43.200 through 48.43.225, 48.44.530 through 48.44.555, and 48.46.600 through 48.46.625;
(6) Examination reports and information obtained by the department of financial institutions from banks under RCW 30.04.075, from savings banks under RCW 32.04.220, from savings and loan associations under RCW 33.04.110, from credit unions under RCW 31.12.565, from the Washington Public Trust under chapter 43.--- RCW (the new chapter created in section 23 of this act), from check cashers and sellers under RCW 31.45.030(3), and from securities brokers and investment advisers under RCW 21.20.100, all of which is confidential information;
(7) Information provided to the insurance commissioner under RCW 48.110.040(3);
(8) Documents, materials, or information obtained by the insurance commissioner under RCW 48.02.065, all of which are confidential and privileged;
(9) Confidential proprietary and trade secret information provided to the commissioner under RCW 48.31C.020 through 48.31C.050 and 48.31C.070;
(10) Data filed under RCW 48.140.020, 48.140.030, 48.140.050, and 7.70.140 that, alone or in combination with any other data, may reveal the identity of a claimant, health care provider, health care facility, insuring entity, or self-insurer involved in a particular claim or a collection of claims. For the purposes of this subsection:
(a) "Claimant" has the same meaning as in RCW 48.140.010(2).
(b) "Health care facility" has the same meaning as in RCW 48.140.010(6).
(c) "Health care provider" has the same meaning as in RCW 48.140.010(7).
(d) "Insuring entity" has the same meaning as in RCW 48.140.010(8).
(e) "Self-insurer" has the same meaning as in RCW 48.140.010(11);
(11) Documents, materials, or information obtained by the insurance commissioner under RCW 48.135.060;
(12) Documents, materials, or information obtained by the insurance commissioner under RCW 48.37.060;
(13) Confidential and privileged documents obtained or produced by the insurance commissioner and identified in RCW 48.37.080;
(14) Documents, materials, or information obtained by the insurance commissioner under RCW 48.37.140;
(15) Documents, materials, or information obtained by the insurance commissioner under RCW 48.17.595;
(16) Documents, materials, or information obtained by the insurance commissioner under RCW 48.102.051(1) and 48.102.140 (3) and (7)(a)(ii);
(17) Documents, materials, or information obtained by the insurance commissioner in the commissioner's capacity as receiver under RCW 48.31.025 and 48.99.017, which are records under the jurisdiction and control of the receivership court. The commissioner is not required to search for, log, produce, or otherwise comply with the public records act for any records that the commissioner obtains under chapters 48.31 and 48.99 RCW in the commissioner's capacity as a receiver, except as directed by the receivership court; and
(18) Data, information, and documents provided by a carrier pursuant to section 1, chapter 172, Laws of 2010.

Sec. 24 RCW 42.56.400 and 2011 c 188 s 21 are each amended to read as follows:
The following information relating to insurance and financial institutions is exempt from disclosure under this chapter:
(1) Records maintained by the board of industrial insurance appeals that are related to appeals of crime victims' compensation claims filed with the board under RCW 7.68.110;
(2) Information obtained and exempted or withheld from public inspection by the health care authority under RCW 41.05.026, whether retained by the authority, transferred to another state purchased health care program by the authority, or transferred by the authority to a technical review committee created to facilitate the development, acquisition, or implementation of state purchased health care under chapter 41.05 RCW;
(3) The names and individual identification data of either all owners or all insureds, or both, received by the insurance commissioner under chapter 48.102 RCW;
(4) Information provided under RCW 48.30A.045 through 48.30A.060;
(5) Information provided under RCW 48.05.510 through 48.05.535, 48.43.200 through 48.43.225, 48.44.530 through 48.44.555, and 48.46.600 through 48.46.625;
(6) Examination reports and information obtained by the department of financial institutions from banks under RCW 30.04.075, from savings banks under RCW 32.04.220, from savings and loan associations under RCW 33.04.110, from credit unions under RCW 31.12.565, from the Washington Public Trust under chapter 43.--- RCW (the new chapter created in section 23 of this act) from check cashers and sellers under RCW 31.45.030(3), and from securities brokers and investment advisers under RCW 21.20.100, all of which is confidential and privileged information;
(7) Information provided to the insurance commissioner under RCW 48.110.040(3);
(8) Documents, materials, or information obtained by the insurance commissioner under RCW 48.02.065, all of which are confidential and privileged;
(9) Confidential proprietary and trade secret information provided to the commissioner under RCW 48.31C.020 through 48.31C.050 and 48.31C.070;
(10) Data filed under RCW 48.140.020, 48.140.030, 48.140.050, and 7.70.140 that, alone or in combination with any other data, may reveal the identity of a claimant, health care provider, health care facility, insuring entity, or self-insurer involved in a particular claim or a collection of claims. For the purposes of this subsection:
(a) "Claimant" has the same meaning as in RCW 48.140.010(2).
(b) "Health care facility" has the same meaning as in RCW 48.140.010(6).
(c) "Health care provider" has the same meaning as in RCW 48.140.010(7).
(d) "Insuring entity" has the same meaning as in RCW 48.140.010(8).
(e) "Self-insurer" has the same meaning as in RCW 48.140.010(11);
(11) Documents, materials, or information obtained by the insurance commissioner under RCW 48.135.060;
(12) Documents, materials, or information obtained by the insurance commissioner under RCW 48.37.060;
(13) Confidential and privileged documents obtained or produced by the insurance commissioner and identified in RCW 48.37.080;
(14) Documents, materials, or information obtained by the insurance commissioner under RCW 48.37.140;
(15) Documents, materials, or information obtained by the insurance commissioner under RCW 48.17.595;
(16) Documents, materials, or information obtained by the insurance commissioner under RCW 48.102.051(1) and 48.102.140 (3) and (7)(a)(ii);
(17) Documents, materials, or information obtained by the insurance commissioner in the commissioner's capacity as receiver under RCW 48.31.025 and 48.99.017, which are records under the jurisdiction and control of the receivership court. The commissioner is not required to search for, log, produce, or otherwise comply with the public records act for any records that the commissioner obtains under chapters 48.31 and 48.99 RCW in the commissioner's capacity as a receiver, except as directed by the receivership court;
(18) Documents, materials, or information obtained by the insurance commissioner under RCW 48.13.151; and
(19) Data, information, and documents provided by a carrier pursuant to section 1, chapter 172, Laws of 2010.

NEW SECTION. Sec. 25 Sections 1 through 4 and 6 through 19 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 26 This act may be known as the Washington Public Trust Act.

NEW SECTION. Sec. 27 This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately upon passage of this ACT.

NEW SECTION. Sec. 28 If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.


--- END ---

Conclusion… The Public Trust is Necessary to Implement the Budget

Our Supreme Court has stated that the legislature not only needs to find a way to fully fund our public schools during the 2017 session, but that the legislature also has to find a way to fully fund school construction, including but not limited to more schools needed to reduce class sizes in Grades K-3 as well as more schools needed to lower class sizes per Initiative 1351. The Washington Public Trust addresses this need by allowing us to fund school construction without the added needless cost of bank fees and interest.

The Washington legislature is also grappling with how best to end and replace the Public Works Trust Fund. The Washington Public Trust would allow this fund to continue essentially unchanged while at the same time protecting the Trust Fund in the future from unwise sweeps by the State legislature.

At a recent House Financial Institutions Committee hearing on the Washington Investment Trust bill, the Chair of the Commitee, Representative Kirby, stated that he had looked at the same bill 8 years in a row and expressed the same problems 8 years in a row. He then said it is not likely that the bill will pass out of committee until these problems are dealt with. This major revision of the bill, the Washington Public Trust, addresses all of the concerns raised by Chair Kirby and other members of his committee as well as members of the Senate Financial Institutions committee which also heard the bill.

The policy bill cut off may have come and gone. However, for bills needed to implement the budget, there is no cut off. Our hope is that this new bill will therefore be passed in the current legislative session as “necessary to implement the budget.” For the sake of our kids, our cities and other local public agencies, we hope you will support this bill. Feel free to email me with any questions you may have.

Regards,

David Spring M. Ed.

Washington Public Bank Coalition

This email address is being protected from spambots. You need JavaScript enabled to view it.