H-4576              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 1733

                        _______________________________________________

State of Washington                              50th Legislature                              1988 Regular Session

By House Committee on Commerce & Labor (originally sponsored by Representatives Grimm, Ballard, Wang and Locke; by request of Department of Labor and Industries)

Read first time on 1/29/88 and referred to Committee on Ways & Means.

AN ACT Relating to investment of funds of the department of labor and industries; and creating a new section.

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

NEW SECTION. Sec. 1.     At the start of the 1989 regular legislative session, the state investment board shall report to the committee on economic development and labor of the senate and the committee on commerce and labor of the house of representatives, or the appropriate successor committees, on a plan to implement the investment of the state industrial insurance funds in both equity and fixed investments. The plan shall review the impact of equity investment on the industrial insurance rate-setting process, the investment policies established by law for the state investment board, and the accounting standards and other statutory directives regarding the maintenance of the industrial insurance funds. The plan shall also, if necessary, make specific recommendations for change in investment policies, the accounting practices of the state fund, or the state fund's rate-making process that will allow stable industrial insurance rates to be maintained while investing in equity investments.  The plan shall be implemented beginning July 1, 1989, unless otherwise provided by law.