Z-0982.3 _______________________________________________
HOUSE BILL 2429
_______________________________________________
State of Washington 55th Legislature 1998 Regular Session
By Representatives Huff, H. Sommers, Carlson, Wolfe and L. Thomas; by request of State Investment Board
Read first time 01/14/98. Referred to Committee on Appropriations.
AN ACT Relating to the operation of the state investment board; and amending RCW 43.33A.140, 41.50.085, 43.84.061, and 43.84.150.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 43.33A.140 and 1981 c 3 s 14 are each amended to read as follows:
((Any
investments made by)) The state investment board shall ((be made
with the exercise of that degree of judgment and care, under circumstances then
prevailing, which persons of prudence, discretion, and intelligence exercise in
the management of their own affairs, not for speculation but for investment,
considering the probable safety of their capital as well as the probable income
to be derived)) invest and manage the assets entrusted to it with
reasonable care, skill, prudence, and diligence under circumstances then
prevailing which a prudent person acting in a like capacity and familiar with
such matters would use in the conduct of an activity of like character and
purpose.
The board shall:
(1) Consider investments not in isolation, but in the context of the investment of the particular fund as a whole and as part of an overall investment strategy, which should incorporate risk and return objectives reasonably suited for that fund; and
(2) Diversify the investments of the particular fund unless, because of special circumstances, the board reasonably determines that the purposes of that fund are better served without diversifying. However, no corporate fixed-income issue or common stock holding may exceed three percent of the cost or six percent of the market value of the assets of that fund.
Sec. 2. RCW 41.50.085 and 1977 ex.s. c 251 s 7 are each amended to read as follows:
Any
investments under RCW 43.84.150 by the state investment board shall be
made ((with the exercise of that degree of judgment and care, under
circumstances then prevailing, which men of prudence, discretion and
intelligence exercise in the management of their own affairs, not for
speculation but for investment, considering the probable safety of their
capital as well as the probable income to be derived)) in accordance
with the standards established in RCW 43.33A.140.
Sec. 3. RCW 43.84.061 and 1965 ex.s. c 104 s 6 are each amended to read as follows:
Any
investments made hereunder by the state investment board shall be made
((with the exercise of that degree of judgment and care, under circumstances
then prevailing, which men of prudence, discretion and intelligence exercise in
the management of their own affairs, not for speculation but for investment,
considering the probable safety of their capital as well as the probable income
to be derived)) in accordance with the standards established in RCW
43.33A.140.
Sec. 4. RCW 43.84.150 and 1981 c 98 s 1 are each amended to read as follows:
Except where otherwise specifically provided by law, the state
investment board shall have full power to invest, reinvest, manage, contract,
or sell or exchange investments acquired. Investments shall be made in
accordance with RCW 43.33A.140 and investment policy duly established and
published by the state investment board. ((All funds shall be sufficiently
diversified and no corporate fixed income issue or common stock holding may
exceed three percent of the cost or six percent of the market value of the
assets of any fund.))
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