Z-1424

AN ACT Relating to the transfer of investment responsibilities between the state investment board and the office of the state treasurer; amending RCW 51.44.090; adding new sections to chapter 43.33A RCW; adding a new section to chapter 43.08 RCW; creating new sections; and providing an effective date.

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

NEW SECTION. Sec. 1. A new section is added to chapter 43.33A RCW to read as follows:

The state investment board may, with the concurrence of the state treasurer utilize the state treasurer for the investment of those funds designated by the state investment board as necessary for liquidity needs. Moneys remitted to the office of the state treasurer for investment on behalf of the state investment board shall be deposited in a fund designated as the money market fund which is to be separately invested by the state treasurer. At the request of the state investment board, the state treasurer shall invest the funds under the investment authority of this chapter. The state treasurer shall report on the investment activity of the money market fund in its entirety. The state investment board is responsible for ownership allocation and accounting of the funds participating in the money market fund. All earnings on the invested funds shall be credited to the fund. The state investment board shall reimburse the state treasurer for reasonable fees for investment administration from earnings of the funds so managed.

NEW SECTION. Sec. 2. A new section is added to chapter 43.33A RCW to read as follows:

The state investment board shall account for and report on the investments authorized by this chapter in the manner prescribed by the office of financial management under chapter 43.88 RCW.

NEW SECTION. Sec. 3. A new section is added to chapter 43.08 RCW to read as follows:

The state treasurer or a designee of the state treasurer shall provide custody trust services for all investments authorized under chapters 43.84, 43.79A, 43.250, and 43.33A RCW. The state treasurer may delegate all or a portion of the responsibilities of this section to the state investment board for investments authorized under chapter 43.33A RCW.

Sec. 4. RCW 51.44.090 and 1972 ex.s. c 43 s 31 are each amended to read as follows:

The state ((~~treasurer~~)) investment board shall keep accurate accounts of the reserve fund and the investment and earnings thereof, to the end that the total reserve fund shall at all times, as nearly as may be, be properly and fully invested and, to meet current demands for pension or lump sum payments, may, if necessary, make temporary loans to the reserve fund out of the accident fund, repaying the same from the earnings of the reserve fund or from collections of its investments or, if necessary, sales of the same.

NEW SECTION. Sec. 5. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the office of the state treasurer or the state investment board relating to the functions and duties transferred by this act, shall be delivered accordingly. All cabinets, furniture, office equipment, and other tangible property employed by the office of the state treasurer and the state investment board in carrying out the accounting functions and duties transferred by this act, shall be transferred. All funds, credits, or other assets held in connection with the functions and duties transferred by this act, shall also be assigned to the appropriate entity.

Any appropriations for carrying out the functions and duties transferred by this act, shall, on the effective date of this section, and upon the approval of the director of the office of financial management be transferred and credited to the appropriate entity.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used in the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation.

NEW SECTION. Sec. 6. All positions necessary for the performance of the functions and duties transferred by this act, shall be transferred to the appropriate entity. All employees assigned to such classified positions under chapter 41.06 RCW, the state civil service law, are assigned, effective upon approval of the director of the office of financial management as outlined in this act, to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 7. All rules and all pending business before the office of the state treasurer and the state investment board pertaining to the functions and duties transferred shall be continued and acted upon. As applicable, all contracts and obligations existing at the time of the transfer shall remain in full force.

NEW SECTION. Sec. 8. The transfer of the duties, functions, and personnel shall not affect the validity of any act performed prior to the effective date of this section.

NEW SECTION. Sec. 9. This act shall take effect July 1, 1992.

NEW SECTION. Sec. 10. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.