HOUSE BILL REPORT

                      HB 2065

                     As Reported By House Committee on:

                              State Government

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

Brief Description:  Affecting administration of the state investment board.

Sponsor(s):  Representatives Anderson, Bowman and Wineberry; by request of State Investment Board.

Brief History:

   Reported by House Committee on:

State Government, March 6, 1991, DPA.

HOUSE COMMITTEE ON

STATE GOVERNMENT

Majority Report: Do pass as amended.  Signed by 7 members:  Representatives Anderson, Chair; Pruitt, Vice Chair; Bowman, Assistant Ranking Minority Member; R. Fisher; Grant; O'Brien; and Sheldon.

Minority Report: Do not pass.  Signed by 3 members:  Representatives McLean, Ranking Minority Member; Chandler; and Moyer.

Staff:  Linda May (786-7135).

Background:  The State Investment Board is responsible for investing and reinvesting monies from the state's trust and retirement systems.  The board has the authority to hire personnel as may be necessary to perform its duties.  This includes the hiring of an executive director, investment officers, and a confidential secretary.  These staff members are exempt employees.  The board sets the salary of the executive director.  Salaries for the investment officers are determined by the State Personnel Board.

Summary of Amended Bill:  The responsibility for setting the salaries of the Investment Board's investment officers is transferred from the State Personnel Board to the State Investment Board.

Amended Bill Compared to Original Bill:  The original bill also gave the board the authority to delegate any of its powers and duties to its chairperson.  The amended bill does not contain this authorization.

Fiscal Note:  Not requested.

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

Testimony For:  This legislation is at the request of the State Investment Board.  A pay increase is needed for the investment officers.  Recently the board lost a key staffer to the private sector due to not being able to offer enough salary.  Salaries would still appear in the budget and could be examined through the legislative process.

Testimony Against:  None.

Witnesses:  Joe Dear, State Investment Board (in favor).