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                                                   HOUSE BILL NO. 1733

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State of Washington                              50th Legislature                              1988 Regular Session

By Representatives Grimm, Ballard, Wang and Locke; by request of Department of Labor and Industries

Read first time 1/22/88 and referred to Committee on Commerce & Labor.Referred to Committee on Ways and Means 1/29/88.

AN ACT Relating to investment of funds of the department of labor and industries; and amending RCW 43.33A.110.

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

        Sec. 1.  Section 11, chapter 3, Laws of 1981 as amended by section 4, chapter 219, Laws of 1981 and RCW 43.33A.110 are each amended to read as follows:

          The state investment board may make appropriate rules and regulations for the performance of its duties.  The board shall establish investment policies and procedures designed exclusively to maximize return at a prudent level of risk.  However, in the case of the department of labor and industries' accident, medical aid, and reserve funds, the board shall establish investment policies and procedures designed to attempt to limit fluctuations in industrial insurance premiums and, subject to this purpose, to maximize return at a prudent level of risk.

          The board shall adopt rules to ensure that its members perform their functions in compliance with chapter 42.18 RCW.  Rules adopted by the board shall be adopted pursuant to chapter 34.04 RCW.