Z-0379.1  _______________________________________________

                          HOUSE BILL 1422

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives H. Sommers, Huff, Benson, Hatfield and McIntire; by request of State Investment Board

Read first time 01/25/1999.  Referred to Committee on Financial Institutions & Insurance.

Authorizing the state investment board to directly order actions relating to securities.

    AN ACT Relating to the state investment board; and amending RCW 43.33A.130.

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

    Sec. 1.  RCW 43.33A.130 and 1981 c 3 s 13 are each amended to read as follows:

    The state treasurer may cause any securities in which the state investment board deals to be registered in the name of a nominee without mention of any fiduciary relationship, except that adequate records shall be maintained to identify the actual owner of the security so registered.  The securities so registered shall be held in the physical custody of the state treasurer, the federal reserve system, the designee of the state treasurer, or, at the election of the designee and upon approval of the state treasurer, the Depository Trust Company of New York City or its designees.

    With respect to the securities, the nominee shall act only upon the order of the ((state treasurer who shall act only on the direction of the)) state investment board.  All rights to the dividends, interest, and sale proceeds from the securities and all voting rights of the securities are vested in the actual owners of the securities, and not in the nominee.

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