[This article is intended as an update to several previous articles listed below that should be read for the complete picture.]
A second substitute bill (SSB5188) on a Washington State Public Financial Cooperative (no longer entitled Washington State Public Bank) was successfully voted out of the Ways and Means Committee on February 22nd and now is in the Rules Committee, where it will be given a second reading before being sent to the Senate floor for a vote. The bill exited the Ways and Means Committee with these modifications that are outlined in the Second Substitute Bill Report:
“EFFECT OF CHANGES MADE BY WAYS & MEANS COMMITTEE (Second Substitute): The state treasurer is required to conduct a study that provides recommendations on staffing and operational needs for the cooperative. The study must ensure the administration of the cooperative does not interfere with the mission of the Washington State Housing Finance Commission. The requirement that DFI issue the cooperative a charter is removed. The cooperative is directed to file a duplicate of the original articles of activation and amended articles with DFI. Various administrative requirements for the cooperative's filing with DFI are added. The ability for local governments to invest in bonds issued by the public financial cooperative is clarified.”
The First Substitute Bill Report had previously pointed out changes from the bill as first submitted to the Senate Committee on Business, Financial Services & Trade on January 28th. Hence the change in the title of the bill from using “bank” to using the term "cooperative.
"EFFECT OF CHANGES MADE BY BUSINESS, FINANCIAL SERVICES & TRADE COMMITTEE (First Substitute):The title of the bill is amended to "An act relating to the creation of the Washington State public financial cooperative" and various references to a public bank are replaced with references to a public financial cooperative. The state is not allowed to borrow from the public cooperative bank. DFI is directed to issue a charter rather than the secretary of state. Additional language is provided to ensure that the the public cooperative is not a public depositary and does not create state debt."
There is no indication of when the Rules Committee will consider the bill.