Bill > SB5754

This bill creates the Washington State Public Bank, a state-owned financial institution designed to provide infrastructure financing and economic development support without raising taxes or increasing state debt. The bank would operate as a publicly owned depository institution, using fractional reserve banking principles to leverage state funds and provide loans to local governments, tribal governments, and other public entities. Key provisions include establishing a nine-member board of directors (with five members appointed by bank members and three public directors appointed by the governor), allowing the state to transfer funds from its general account into the bank, and prioritizing investments in public housing. The bank would have the power to issue bonds, make loans, and provide financial assistance for infrastructure projects, while being subject to oversight by the state finance committee and the state auditor. The legislature finds inspiration in the Bank of North Dakota, the only existing public bank in the United States, and aims to create an institution that can generate profits for the state, support local economies, and provide lower-cost financing for public initiatives. The bill emphasizes that the bank's primary duty will be serving the best interests of the people of Washington state.

Budget and Finance, Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=5754&Year=2025&Initiative=false