SENATE BILL REPORT

                                    SB 5730

                            AS OF FEBRUARY 20, 1991

Brief Description:  Adding members to the state investment board.

SPONSORS:Senators von Reichbauer, Moore, Talmadge, West, McMullen, Rasmussen, Gaspard, Conner, Wojahn, Hansen, Murray, Rinehart, Vognild, Madsen, Jesernig, Williams and Bauer.

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Staff:  Benson Porter (786‑7470)

Hearing Dates:February 21, 1991

BACKGROUND:

The State Investment Board was established in 1981 and is responsible for the investment decisions for certain state retirement system funds.  The board is comprised of 14 members, including five nonvoting members who provide investment advice.

The nine voting members of the board are as follows:  (1) an active member of the Public Employee's Retirement System; (2) an active member of the Law Enforcement Officers' and Firefighter's Retirement System; (3) an active member of the Teachers' Retirement System; (4) a retired member of the retirement system; (5) the State Treasurer or designated assistant; (6) the Director of the Department of Labor and Industries; (7) the Director of the Department of Retirement Systems; (8) a member of the Senate; and (9) a member of the House of Representatives.

The members of the board serve three-year terms, except for legislative members who serve for two-year terms.  Any board member can be removed from the board for cause by the member's respective appointing authority.

SUMMARY:

The State Investment Board is expanded to consist of 17 members.  Members of the board are to include the State Actuary and one member from each of the four caucuses of the Legislature.

Appropriation:  none

Revenue:  none

Fiscal Note:  requested