_______________________________________________
SENATE
BILL 6192
_______________________________________________
Passed
Legislature - 1998 Regular Session
State
of Washington 55th Legislature 1998 Regular Session
By
Read
first time 01/13/98. Referred to Committee on Financial Institutions,
Insurance & Housing.
Providing for the operation of the state investment
board.
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.))
Passed the Senate February 11, 1998.
Passed the House February 27, 1998.
Approved by the Governor
March 11, 1998.
Filed
in Office of Secretary of State March 11, 1998.
