_______________________________________________
SUBSTITUTE
SENATE BILL 5270
_______________________________________________
AS
RECOMMENDED BY CONFERENCE COMMITTEE
Passed
Legislature - 1997 Regular Session
State of Washington 55th
Legislature 1997 Regular Session
By
Read first time 02/06/97.
Authorizing
the state investment board to create public entities for the purposes of
handling real estate and other investment assets.
AN
ACT Relating to the operation of the state investment board; and adding new
sections to chapter 43.33A RCW.
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:
(1)
The board is authorized to create corporations under Title 23B RCW, limited
liability companies under chapter 25.15 RCW, and limited partnerships under
chapter 25.10 RCW, of which it may or may not be the general partner, for the
purposes of transferring, acquiring, holding, overseeing, operating, or
disposing of real estate or other investment assets that are not publicly
traded on a daily basis or on an organized exchange. The liability of each
entity created by the board is limited to the assets or properties of that
entity. No creditor or other person has any right of action against the board,
its members or employees, or the state of Washington on account of any debts,
obligations, or liabilities of the entity. Entities created under this section
may be authorized by the board to make any investment that the board may make,
including but not limited to the acquisition of: Equity interests in operating
companies, the indebtedness of operating companies, and real estate.
(2)
Directors, officers, and other principals of entities created under this
section must be board members, board staff, or principals or employees of an
advisor or manager engaged by contract by the board or the entity to manage
real estate or other investment assets of the entity. Directors of entities
created under this section must be appointed by the board. Officers and other
principals of entities created under this section are appointed by the
directors.
(3)
A public corporation, limited liability company, or limited partnership created
under this section has the same immunity or exemption from taxation as that of
the state. The entity shall pay an amount equal to the amounts that would be
paid for taxes otherwise levied upon real property and personal property to the
public official charged with the collection of such real property and personal
property taxes as if the property were in private ownership. The proceeds of
such payments must be allocated as though the property were in private
ownership.
NEW
SECTION. Sec. 2. A
new section is added to chapter 43.33A RCW to read as follows:
Rent and other income from real estate or other investment assets
that are not publicly traded on a daily basis or on an organized exchange that
are acquired and being held for investment by the board or by an entity created
under section 1 of this act by the board, and being managed by an external
advisor or other property manager under contract, shall not be deemed income or
state funds for the purposes of chapter 39.58 RCW and this title, until
distributions are made to the board of such income from the advisor or
manager. Bank and other accounts established by the advisor or property
manager for the purpose of the management of such investment assets shall not
be deemed accounts established by the state for the purpose of chapter 39.58
RCW and this title.
