SENATE BILL REPORT

SB 6277

As Reported By Senate Committee On:

Labor, Commerce & Financial Institutions, January 31, 2002

Title:  An act relating to increasing the size of the state investment board.

Brief Description:  Increasing the size of the state investment board.

Sponsors:  Senators Prentice and Winsley; by request of State Treasurer and Superintendent of Public Instruction.

Brief History:

Committee Activity:  Labor, Commerce & Financial Institutions:  1/31/02 [DP].

SENATE COMMITTEE ON LABOR, COMMERCE & FINANCIAL INSTITUTIONS

Majority Report:  Do pass.

Signed by Senators Prentice, Chair; Keiser, Vice Chair; Benton, Deccio, Fairley, Franklin, Gardner, Hochstatter, Rasmussen, Regala and Winsley.

Staff:  Joanne Conrad (786‑7472)

Background:  The Washington State Investment Board is responsible for productively managing the investments of various funds established in law, including retirement funds, deferred compensation, industrial insurance and trust funds.  Nationally, the number of state investment board members ranges from one to 15.

 The Washington State Investment Board currently consists of 14 members, designated in statute, including active members of the Public Employees' Retirement System (PERS), the Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF), the Teachers' Retirement System (TRS), both houses of the Legislature, the State Treasurer, the Department of Labor and Industries, the Department of Retirement Systems, and a retired member of a state retirement system appointed by the Governor, as well as five nonvoting members who are experienced in the field of investments.

The board does not currently have mandated membership from the School Employees' Retirement System.

Summary of Bill:  There are 15 members appointed to the Washington State Investment Board, including an active member of the School Employees' Retirement System, who has at least five years of service credit, and is appointed by the Superintendent of Public Instruction and confirmed by the Senate.  The initial term is three years.

The voting quorum for the investment board is six voting members.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This group of employees should also be represented.

Testimony Against:  None.

Testified:  PRO:  Doug Nelson, Public School Employees of WA; Ken Kanikeberg, OSPI.