Z-1408               _______________________________________________

                                                   SENATE BILL NO. 6385

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senators Lee, McMullen, Murray, Williams, Anderson and Conner; by request of Department of Labor and Industries

Read first time 1/12/90 and referred to Committee on  Economic Development & Labor.

AN ACT Relating to the investment of industrial insurance funds; and amending RCW 51.44.100.

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

        Sec. 1.  Section 51.44.100, chapter 23, Laws of 1961 as last amended by section 41, chapter 3, Laws of 1981 and RCW 51.44.100 are each amended to read as follows:

          Whenever, in the judgment of the state investment board, there shall be in the accident fund, medical aid fund, ((or in the)) reserve fund, or the supplemental pension fund, funds in excess of that amount deemed by the state investment board to be sufficient to meet the current expenditures properly payable therefrom, the state investment board may invest and reinvest such excess funds in the manner prescribed by RCW 43.84.150, and not otherwise.

          The state investment board may give consideration to the investment of excess funds in federally insured student loans made to persons in vocational training or retraining or reeducation programs.  The state investment board may make such investments  by purchasing from savings and loan associations, commercial banks, mutual savings banks, credit unions and other institutions authorized to be lenders under the federally insured student loan act, organized under federal or state law and operating in this state loans made by such institutions to residents of the state of Washington particularly for the purpose of vocational training or reeducation:  PROVIDED, That the state investment board shall purchase only that portion of any loan which is guaranteed or insured by the United States of America, or by any agency or instrumentality of the United States of America:  PROVIDED FURTHER, That the state investment board is authorized to enter into contracts with such savings and loan associations, commercial banks, mutual savings banks, credit unions, and other institutions authorized to be lenders under the federally insured student loan act to service loans purchased pursuant to this section at an agreed upon contract price.