WA HB2556

Establishes the Washington State Public Bank as a state-owned depository institution to provide financing for infrastructure projects, economic development, housing, transportation, education, and health care for state, local, and tribal governments

Creates a nine-member operating board with five members appointed by local/tribal governments, three public directors appointed by the governor, and the state treasurer serving ex officio; the state finance committee serves as the oversight board

Authorizes the state treasurer to transfer general fund and concentration account funds into the public bank, with the goal of eventually moving all state deposits currently held at large Wall Street banks

Allows the bank to issue bonds, make loans to borrowers at interest rates determined by the bank, receive deposits from governments, and leverage deposits using standard fractional reserve banking practices (10 percent reserve ratio cited as standard)

Modeled after the Bank of North Dakota, the only existing public depository bank in the United States, which has operated for over 100 years