Z-971                 _______________________________________________

                                                   HOUSE BILL NO. 1697

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

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

Read first time 2/3/89 and referred to Committee on Commerce & Labor.

AN ACT Relating to industrial insurance premiums investment policy; 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 last amended by section 1, chapter 130, Laws of 1988 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, ((until July 1, 1989,)) 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)) 34.05 RCW.