H-2344              _______________________________________________

                                                   HOUSE BILL NO. 2214

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives Valle, Nutley, Winsley, Ballard, Leonard and Anderson

Read first time 3/15/89 and referred to Committee on Housing.

AN ACT Relating to the state investment board; and adding a new section to chapter 43.33A RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 43.33A RCW to read as follows:

          (1) The state investment board may invest those funds not constitutionally restricted in any bonds or other obligations issued by a political subdivision of the state or a nonprofit organization for the promotion or operation of programs for affordable housing, and such bonds and other obligations shall be authorized security for all public deposits: PROVIDED, That nothing contained in this section shall be construed as relieving the state investment board of its duty to exercise the degree of judgment and care required under RCW 43.84.150.

          (2) Investments under subsection (1) of this section may be made only if the expected rate of return at least equals the average rate of return for the public employees' retirement system on investments managed by the state investment board or its predecessor, for the preceding twenty years, not including the current year to date.

          (3) If a bond or obligation under this section fails to yield at least that average rate of return under subsection (2) of this section, then general revenue funds shall be used to pay the difference between that average rate and the actual rate to the fund from which the investment was made.

          (4) An amendment or repeal of this section shall not be construed to impair any contractual right:  PROVIDED, That investments already made shall not be affected.