5269 AMH FII H2914.1

SB 5269 - H COMM AMD

By Committee on Financial Institutions & Insurance

    Strike everything after the enacting clause and insert the following:

    "Sec. 1.  RCW 43.33A.030 and 1981 c 3 s 3 are each amended to read as follows:

    Trusteeship of those funds under the authority of the board is vested in the voting members of the board.  The nonvoting members of the board shall advise the voting members on matters of investment policy and practices.

    The board may enter into contracts necessary to carry out its powers and duties.  The board may delegate any of its powers and duties to its executive director as deemed necessary for efficient administration and when consistent with the purposes of ((this 1980 act)) chapter 3, Laws of 1981.

Subject to guidelines established by the board, the board's executive director may delegate to board staff any of the executive director's powers and duties including, but not limited to, the power to make investment decisions and to execute investment and other contracts on behalf of the board.

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

    The board or its executive director may delegate by contract to private sector or other external advisors or managers the discretionary authority, as fiduciaries, to purchase or otherwise acquire, sell, or otherwise dispose of or manage investments or investment properties on behalf of the board, subject to investment or management criteria established by the board or its executive director.  Such criteria relevant to particular investments or class of investment applicable under the board's contract with an advisor or manager must be incorporated by reference into the contract."

    Correct the title.

EFFECT:  Authority is removed which would allow the executive director to delegate to staff the ability to enter into investment contracts with the private sector.

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