S-191                 _______________________________________________

                                                   SENATE BILL NO. 3226

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Fleming and McDermott

Read first time 1/22/85 and referred to Committee on Ways and Means.

AN ACT Relating to the investment of public pension and retirement funds; and amending RCW 43.84.150.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 2, chapter 17, Laws of 1975-'76 2nd ex. sess. as last amended by section 1, chapter 98, Laws of 1981 and RCW 43.84.150 are each amended to read as follows:

(1) Except where otherwise specifically provided by law, the state investment board shall have full power to invest, reinvest, manage, contract, or sell or exchange investments acquired.  Investments shall be made in accordance with this section, RCW 43.33A.140, and investment policy duly established and published by the state investment board.  All funds shall be sufficiently diversified and no corporate fixed income issue or common stock holding may exceed three percent of the cost or six percent of the market value of the assets of any fund.

(2) No public pension or retirement funds may be invested or may remain invested in any bank or financial institution which directly or through its subsidiaries has outstanding loans to the Republic of South Africa or Namibia or their instrumentalities, and no assets may be invested or may remain invested in the stocks, securities, or other obligations of any company doing business in or with the Republic of South Africa or Namibia.  Any proceeds of sales required under this subsection shall be invested as much as reasonably possible in banks, institutions, or companies which invest or conduct business operations in Washington state so long as such use is consistent with sound investment policy.

(3) If sound investment policy so requires, the state investment board may vote to spread the sale of investments required under subsection (2) of this section over more than three years so that no less than one-third the value of the investments is sold in any one year.  So long as any funds remain invested in any bank, financial institution, or company referred to in subsection (2) of this section, the state investment board shall annually, on or before January 31st, file with the secretary of the senate and the clerk of the house of representatives a report listing all South Africa and Namibia-related investments held and their book market value as of the preceding December 1st.