wa-law.org > bill > 2025-26 > HB 2469 > Original Bill
The legislature finds that the bank of the state of North Dakota has been very successful in providing a model that other states can follow to stimulate their economies. The bank of the state of North Dakota has been beneficial to local community banks by providing participatory loans on needed value infrastructure loans that otherwise would have been unobtainable. Such loans are for the benefit of all residents of North Dakota, regardless of wealth or position, with low interest rates and fees. A public bank does not create dangerous derivatives, require high employee salaries, or generate lobbying costs and exorbitant bond fees to middlemen, while having the added benefit of returning profits to the state. The banking operations of a public bank are transparent to the public with no risk of bailouts or bail-ins.
The legislature also finds that the state is currently facing an enormous deficit in the coming biennia, thus delaying needed projects like bridge and highway repair and the modernization of a decaying ferry system. A public bank could also help with stockpiles of commodities, foodstuffs, and medicines for any potential natural or man-made disaster, along with helping fund other needs for a healthy and robust state. Therefore, the legislature would like to study the feasibility of establishing a state-owned, public bank. The legislature intends to commission and fund a task force with the participation of community bankers and businessmen to report back to the legislature within one year with their findings on how Washington could benefit from a public bank similar to the bank of the state of North Dakota model.
The state-owned, public bank task force is established, with members as provided in this section, appointed by the state treasurer. The state treasurer is a member of the task force and shall make appointments for other representatives by September 1, 2025, as follows:
Three representatives from three separate community banks, each with assets between $100,000,000 to $1,000,000,000;
Three representatives from three separate credit unions, each with assets between $100,000,000 to $1,000,000,000;
Two representatives from farming operations, each with gross income between $5,000,000 and $50,000,000;
Two representatives from mining operations, each with gross income between $5,000,000 and $50,000,000;
Two representatives from logging operations, each with gross income between $5,000,000 and $50,000,000;
Two representatives from the transportation industry; and
Two representatives from the commercial building industry.
The state treasurer shall convene the initial meeting of the task force by October 31, 2025. At the initial meeting, the task force shall choose its chair from among its membership.
The task force shall meet at least monthly.
The task force shall conduct a study on the feasibility of establishing a state-owned, public bank using the bank of the state of North Dakota as a model, addressing the question of whether a state bank could add value to Washington state, and, if so, what would be the bank's scale and goals. The study must address:
Any potential legal barriers to creation, including possible legal, regulatory, and constitutional issues;
Potential benefits to the state, including if the state-owned, public bank were the depository institution for the state and local governments;
The likely purpose and mission of a state-owned, public bank, addressing whether a state-owned, public bank should:
Be a depository for local and state funds;
Provide funding for local infrastructure projects;
Provide capital for the agricultural and natural resources sector; and
Provide capital to expand energy infrastructure;
What initial capital requirements might be needed and what potential sources of capital could be used;
An estimated time horizon for implementation and profitability;
Estimated financial viability of a state-owned, public bank, including projected profit and loss scenarios; and
The possible governance structure, potential staffing, and other operational needs.
In conducting the study, the task force shall consult with:
Financial institutions, including community banks and credit unions;
Organizations and representatives of agricultural and natural resource commodities;
Local government entities;
The department of transportation; and
Other potential organizations, businesses, community groups, representatives, or individuals that the task force finds helpful for providing input, feedback, and expertise.
Staff support for the task force must be provided by the office of the state treasurer.
Members of the task force are not entitled to be reimbursed for travel expenses if they are elected officials or are participating on behalf of an employer, governmental entity, or other organization. Any reimbursement for other nonlegislative members is subject to chapter 43.03 RCW.
The task force shall compile the findings from the study in a report due to the governor and the appropriate committees of the legislature by December 1, 2026.
This section expires January 1, 2027.
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.