BILL REQ. #:  H-4058.1 

Read first time 01/20/10.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to conducting performance audits of state investment board investment services contracts; and adding a new section to chapter 43.09 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 43.09 RCW to read as follows:
     (1) In addition to audits authorized under RCW 43.88.160 and 43.09.470, by December 1, 2010, and every eight years thereafter, the state auditor must conduct independent, comprehensive performance audits of the investment contracts entered into by the state investment board.
     (2) The scope for each performance audit may not be limited and must include at least the following specific elements:
     (a) Services actually provided under the contract in comparison to the services originally contracted;
     (b) Identification of services that can be reduced or eliminated;
     (c) A comparison of investment performance and services obtained through the contract compared to industry-wide performance data, performance measures, and self-assessment systems; and
     (d) Identification of best practices.