HB 2111
In CommitteeHouse
I-5 bridge account earnings
Allowing the Interstate 5 bridge replacement project toll facility bond retirement account to receive its proportionate share of earnings.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill ensures that the Interstate 5 bridge replacement project toll facility bond retirement account receives its share of investment earnings based on its balance, alongside over 100 other state accounts. It updates how the state allocates investment income from the state treasury, prioritizing federal requirements and banking costs before distributing earnings.
- Requires the state treasurer to distribute monthly investment earnings from the treasury income account, with most going to the general fund.
- Allows over 100 specific state accounts—including the Interstate 5 bridge replacement project toll facility bond retirement account—to receive a proportionate share of earnings based on their average daily balance.
- Clarifies that earnings from permanent funds (e.g., common school fund) go directly to their designated beneficiary accounts.
- Permits use of the treasury income account to pay for state banking services (e.g., depository, safekeeping) before distributing earnings.
- Includes multiple contingent and staggered expiration dates for different sections of the bill, tied to other laws like RCW 74.76.040 (the Washington Long-Term Care Trust Program).
Who is affected
- Interstate 5 bridge replacement project stakeholders — The 'Interstate 5 bridge replacement project toll facility bond retirement account' will receive a portion of investment earnings based on its average daily balance, helping fund debt repayment for the I-5 bridge replacement project.
- State agencies and programs — All other state accounts and funds listed in the bill (over 100 total) will receive a proportional share of investment earnings based on their average daily balances, supporting their operations and projects.
- General public (via state budget) — The state’s general fund will receive the remaining earnings after allocations to specific accounts, supporting overall state budget operations.
- State banking partners — Financial institutions that provide banking services to the state may be paid from the treasury income account before earnings are distributed.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill explicitly includes the 'Interstate 5 bridge replacement project toll facility bond retirement account' and ensures it receives a proportionate share of investment earnings based on average daily balance. This improves predictability and reliability of debt service funding for the I-5 bridge project—a critical regional transportation asset—potentially reducing the risk of delays or cost overruns that could burden commuters and regional economies.
TransportationPeopleRef: Sec. 1(4)(a), Sec. 2(4)(a), Sec. 3(4)(a), Sec. 4(4)(a), Sec. 5(4)(a), Sec. 6(4)(a)Over 20 education-related accounts—including common school construction fund, university capital projects, and early learning facilities—are included in the list of accounts receiving proportional earnings. This helps stabilize funding for K–12 infrastructure, higher education facilities, and early learning programs, supporting long-term planning and reducing reliance on one-time general fund allocations.
EducationPeopleRef: Sec. 1(4)(a), Sec. 2(4)(a), Sec. 3(4)(a), Sec. 4(4)(a), Sec. 5(4)(a), Sec. 6(4)(a)The bill includes accounts for public safety infrastructure (e.g., highway safety fund, grade crossing protective fund, vulnerable roadway user education account), which helps fund critical safety improvements like signal upgrades, crossing protections, and enforcement programs. These are high-impact, high-need investments that benefit everyday commuters and pedestrians.
Public SafetyLean peopleRef: Sec. 1(4)(a), Sec. 2(4)(a), Sec. 3(4)(a), Sec. 4(4)(a), Sec. 5(4)(a), Sec. 6(4)(a)The bill includes healthcare-related accounts such as the opioid abatement settlement account, medical aid account, and Medicaid access program account, ensuring their investment earnings are retained for their intended purpose. This improves program stability for substance use treatment and access to care, especially for low-income and vulnerable populations.
HealthcareLean peopleRef: Sec. 1(4)(a), Sec. 2(4)(a), Sec. 3(4)(a), Sec. 4(4)(a), Sec. 5(4)(a), Sec. 6(4)(a)The bill clarifies that federal cash management requirements (e.g., refunds to the federal treasury under the Cash Management Improvement Act of 1990) are prioritized before earnings distribution. This ensures compliance with federal law and avoids potential penalties or loss of federal funding—benefiting all Washingtonians by safeguarding federal program eligibility and avoiding fiscal penalties.
FinancialLean peopleRef: Sec. 1(2), Sec. 2(2), Sec. 3(2), Sec. 4(2), Sec. 5(2), Sec. 6(2)
Potential Concerns (5)
The bill reallocates investment earnings from the general fund to over 100 specific accounts, reducing general fund revenue—though the fiscal impact statement confirms this is a reallocation, not a net loss. This reduces budgetary flexibility for the legislature and may constrain future general fund spending on broad-based services like K–12 education, corrections, or social services, especially during economic downturns when revenues shrink.
FinancialRef: Sec. 1(4)(a), Sec. 2(4)(a), Sec. 3(4)(a), Sec. 4(4)(a), Sec. 5(4)(a), Sec. 6(4)(a)While many local programs (e.g., county arterial preservation, local sales and use tax accounts) are included in the list of accounts receiving proportional earnings, the bill does not increase overall funding—it only changes the distribution mechanism. Local governments that rely on general fund transfers (e.g., for public health or emergency services) may face indirect pressure if the general fund’s share of investment earnings shrinks over time.
Local GovernmentRef: Sec. 1(4)(a), Sec. 2(4)(a), Sec. 3(4)(a), Sec. 4(4)(a), Sec. 5(4)(a), Sec. 6(4)(a)The bill permits use of the treasury income account to pay for state banking services (e.g., depository, safekeeping) before distributing earnings. This benefits financial institutions that contract with the state, but the payments are administrative in nature and do not represent new spending or subsidies—just a change in priority of disbursement. No net increase in state costs is indicated, and the scale of benefit is modest for most banks.
Business & EmploymentRef: Sec. 1(3), Sec. 2(3), Sec. 3(3), Sec. 4(3), Sec. 5(3), Sec. 6(3)The bill includes a constitutional compliance clause (Art. II, § 37) requiring specific legislative authorization for allocations—reinforcing transparency but adding administrative complexity. This does not directly harm or benefit the public, but it may slightly increase compliance costs for state finance staff and create minor delays in earnings distribution.
Local GovernmentRef: Sec. 1(5), Sec. 2(5), Sec. 3(5), Sec. 4(5), Sec. 5(5), Sec. 6(5)The bill contains staggered and contingent expiration dates tied to other statutes (e.g., RCW 74.76.040, the former long-term care trust program), which introduces uncertainty for long-term financial planning. This could complicate budget forecasting for agencies and local partners relying on predictable funding streams.
Local GovernmentRef: Sec. 7 & 8 (sunset provisions)
Who Is Most Affected
The I-5 bridge project stakeholders—including state transportation agencies, regional transit authorities (e.g., Sound Transit, WSDOT), and bondholders—gain more reliable funding for debt service and construction. This improves project predictability and reduces risk of delays, directly benefiting commuters and regional economies.
State agencies managing the 100+ listed accounts (e.g., education, transportation, healthcare, retirement systems) gain more predictable and dedicated investment income, reducing reliance on annual appropriations and supporting long-term planning. However, this does not increase total state revenue—just reallocates it.
Financial institutions that provide state banking services (e.g., depository, safekeeping) gain explicit statutory authority to be paid from the treasury income account before earnings distribution. This is a minor but stable administrative revenue stream for those banks, but it does not constitute a subsidy or competitive advantage.
The general fund—used to finance core state services like K–12 education, corrections, and social services—receives only the residual earnings after allocations to specific accounts. While the fiscal impact statement says this is a reallocation (not a net loss), the reduced share may constrain future budget flexibility, especially during downturns.
Local governments benefit indirectly through accounts like county arterial preservation, local sales and use tax, and local real estate excise tax, which receive proportional earnings. However, since the bill does not increase total investment income, the benefit is limited to improved predictability—not new funding.