HOUSE BILL REPORT

EHB 1697

BYRepresentatives Wang, Patrick and Vekich; by request of Department of Labor and Industries and State Investment Board

Regulating industrial insurance premium investments.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (10)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Patrick, Ranking Republican Member; Jones, R. King, Leonard, Prentice, Smith, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS PASSED HOUSE MARCH 2, 1989

BACKGROUND:

In 1988, the State Investment Board's authority to establish industrial insurance investment policies was modified, until July 1, 1989, to allow the board to take into account the effect of the investment policy on industrial insurance premium rates.  The board conducted a study during 1988 to identify alternative investment approaches for the industrial insurance fund and, as a result of the study, is formulating a new investment policy.

SUMMARY:

The State Investment Board's authority to establish investment policies for the industrial insurance funds that take into account the effect on industrial insurance premium rates is extended permanently.  The board must report, at least annually, to the appropriate legislative committees on the investment activity for the industrial insurance funds. 

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Art Wang, prime sponsor.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Under its interim authority, the State Investment Board conducted a study that was successful in disclosing alternative investment strategies for the industrial insurance funds.  The board needs permanent authority to balance the needs of the fund and the requirements of the investment policy.

House Committee - Testimony Against:      None Presented.