SENATE BILL REPORT

                                    SB 6359

                            AS OF FEBRUARY 5, 1992

Brief Description:  Requiring pension funds to be invested in infrastructure within the state of Washington.

SPONSORS: Senator Metcalf

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS & INSURANCE

Staff:  Traci Anderson (786‑7452)

Hearing Dates: February 6, 1992

BACKGROUND:

Under current law, the State Investment Board is responsible for the investment of state retirement system funds.  In the investment of these funds, the board is mandated to "maximize return at a prudent level of risk."  The board currently invests state retirement funds in: stocks, long-termed fixed bonds, real estate, venture capital and leveraged buyouts.  

It has been suggested that the board should invest state retirement funds in those investments providing the greatest security which also directly benefit the state of Washington.

SUMMARY:

The State Investment Board is directed to invest additional, new or renewed investments of state retirement funds in those classes of investments which primarily provide for  infrastructure development or improvements in the state of Washington.

A limit is placed on the classes of investments in which the investment board is allowed to invest state retirement funds.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested