SUBSTITUTE SENATE BILL 5988





                        57th Legislature

                      2001 Regular Session

Passed by the Senate April 20, 2001

  YEAS 40   NAYS 0




President of the Senate


Passed by the House April 19, 2001

  YEAS 96   NAYS 2



I, Tony M. Cook, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SUBSTITUTE SENATE BILL 5988 as passed by the Senate and the House of Representatives on the dates hereon set forth.




Speaker of the

      House of Representatives






Speaker of the

      House of Representatives



Approved Place Style On Codes above, and Style Off Codes below. 





Governor of the State of Washington

                   Secretary of State

                  State of Washington



                    SUBSTITUTE SENATE BILL 5988



                      AS AMENDED BY THE HOUSE


             Passed Legislature - 2001 Regular Session


State of Washington      57th Legislature     2001 Regular Session


By Senate Committee on Ways & Means (originally sponsored by Senators Snyder, McDonald, Spanel, Winsley, Prentice and Jacobsen; by request of State Investment Board)



Establishing compensation levels for certain employees of the state investment board.    

    AN ACT Relating to the state investment board; and amending RCW 43.33A.100 and 43.03.028.




    Sec. 1.  RCW 43.33A.100 and 1993 c 281 s 50 are each amended to read as follows:

    The state investment board shall maintain appropriate offices and employ such personnel as may be necessary to perform its duties.  Employment by the investment board shall include but not be limited to an executive director, investment officers, and a confidential secretary, which positions are exempt from classified service under chapter 41.06 RCW.  Employment of the executive director by the board shall be for a term of three years, and such employment shall be subject to confirmation of the state finance committee:  PROVIDED, That nothing shall prevent the board from dismissing the director for cause before the expiration of the term nor shall anything prohibit the board, with the confirmation of the state finance committee, from employing the same individual as director in succeeding terms.  Compensation levels for the executive director, a confidential secretary, and all investment officers, including the deputy director for investment management, employed by the investment board shall be established by the ((Washington personnel resources)) state investment board.  The investment board is authorized to maintain a retention pool, from the earnings of the funds managed by the board, in order to address recruitment and retention problems.  The compensation levels for investment officers shall be limited to the average of state funds of similar size, based upon a biennial survey conducted by the investment board, with review and comment by the joint legislative audit and review committee.  However, in any fiscal year the salary increases granted by the investment board from the retention pool to investment officers pursuant to this section may not exceed an average of five percent.

    The investment board shall provide notice to the director of the department of personnel, the director of financial management, and the chairs of the house of representatives and senate fiscal committees of proposed changes to the compensation levels for the positions.  The notice shall be provided not less than sixty days prior to the effective date of the proposed changes.

    As of July 1, 1981, all employees classified under chapter 41.06 RCW and engaged in duties assumed by the state investment board on July 1, 1981, are assigned to the state investment board.  The transfer shall not diminish any rights granted these employees under chapter 41.06 RCW nor exempt the employees from any action which may occur thereafter in accordance with chapter 41.06 RCW.

    All existing contracts and obligations pertaining to the functions transferred to the state investment board in this 1980 act shall remain in full force and effect, and shall be performed by the board.  None of the transfers directed by this 1980 act shall affect the validity of any act performed by a state entity or by any official or employee thereof prior to July 1, 1981.


    Sec. 2.  RCW 43.03.028 and 1995 c 67 s 1 are each amended to read as follows:

    (1) There is hereby created a state committee on agency officials' salaries to consist of seven members, or their designees, as follows:  The president of the University of Puget Sound; the chairperson of the council of presidents of the state's four-year institutions of higher education; the chairperson of the Washington personnel resources board; the president of the Association of Washington Business; the president of the Pacific Northwest Personnel Managers' Association; the president of the Washington State Bar Association; and the president of the Washington State Labor Council.  If any of the titles or positions mentioned in this subsection are changed or abolished, any person occupying an equivalent or like position shall be qualified for appointment by the governor to membership upon the committee.

    (2) The committee shall study the duties and salaries of the directors of the several departments and the members of the several boards and commissions of state government, who are subject to appointment by the governor or whose salaries are fixed by the governor, and of the chief executive officers of the following agencies of state government:

    The arts commission; the human rights commission; the board of accountancy; the board of pharmacy; the eastern Washington historical society; the Washington state historical society; the interagency committee for outdoor recreation; the criminal justice training commission; the department of personnel; ((the state finance committee;)) the state library; the traffic safety commission; the horse racing commission; the advisory council on vocational education; the public disclosure commission; the state conservation commission; the commission on Hispanic affairs; the commission on Asian Pacific American affairs; the state board for volunteer fire fighters and reserve officers; the transportation improvement board; the public employment relations commission; the forest practices appeals board; and the energy facilities site evaluation council.

    The committee shall report to the governor or the chairperson of the appropriate salary fixing authority at least once in each fiscal biennium on such date as the governor may designate, but not later than seventy-five days prior to the convening of each regular session of the legislature during an odd-numbered year, its recommendations for the salaries to be fixed for each position.

    (3) Committee members shall be reimbursed by the department of personnel for travel expenses under RCW 43.03.050 and 43.03.060.


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