SENATE BILL REPORT

SJR 8239

BYSenators Hayner, Newhouse, Stratton, Johnson, Rasmussen, Bluechel, Moore, Sellar, von Reichbauer, Benitz, Cantu, Matson, Craswell, Saling, Metcalf, Bailey, Amondson, Anderson, Thorsness, Barr, Patterson, McCaslin, McDonald, Nelson, Patrick and Smith

Limiting the purposes for which trust funds may be invested.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1990; February 6, 1990

Majority Report:     Do pass.

     Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bluechel, Cantu, Hayner, Johnson, Newhouse, Saling, Smith.

Senate Staff:Bill Freund (786-7441)

                February 7, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 6, 1990

BACKGROUND:

The State Constitution authorizes the investment of pension and industrial insurance funds as specified by law.  The Legislature has delegated the investment responsibility to the State Investment Board and requires the board to establish investment policies designed exclusively to maximize return at a prudent level of risk.  For industrial insurance funds, the board is also required to invest in ways which limit fluctuations in industrial insurance premiums.

SUMMARY:

Current statutory requirements to maximize trust fund investment returns are made constitutional requirements.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   David Weig, Executive Director, State Investment Board (pro)