CERTIFICATION OF ENROLLMENT

                  SUBSTITUTE SENATE BILL 6012

                        56th Legislature

                      1999 Regular Session

Passed by the Senate March 13, 1999   YEAS 43   NAYS 0 President of the Senate Passed by the House April 12, 1999   YEAS 93   NAYS 0

CERTIFICATE I, Tony M. Cook, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SUBSTITUTE SENATE BILL 6012 as passed by the Senate and the House of Representatives on the dates hereon set forth.

Speaker of the       House of Representatives	Secretary
Speaker of the       House of Representatives

Approved Place Style On Codes above, and Style Off Codes below.

FILED

Governor of the State of Washington

Secretary of State                   State of Washington

          _______________________________________________

                    SUBSTITUTE SENATE BILL 6012

          _______________________________________________

             Passed Legislature - 1999 Regular Session

State of Washington      56th Legislature     1999 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Long and Fraser)

Read first time 03/05/99.

Declaring monthly unit valuations for certain portfolios and funds managed by the state investment board. 

    AN ACT Relating to a monthly unit valuation for certain portfolios and funds managed by the state investment board; and amending RCW 41.34.060 and 41.34.140.

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

    Sec. 1.  RCW 41.34.060 and 1998 c 341 s 303 are each amended to read as follows:

    (1) Except as provided in subsection (((2))) (3) of this section, the member's account shall be invested by the state investment board.  In order to reduce transaction costs and address liquidity issues, based upon recommendations of the state investment board, the department may require members to provide up to ninety days' notice prior to moving funds from the state investment board portfolio to self-directed investment options provided under subsection (((2))) (3) of this section.

    (a) For members of the retirement system as provided for in chapter 41.32 RCW of plan III, investment shall be in the same portfolio as that of the teachers' retirement system combined plan II and III fund under RCW 41.50.075(2).

    (b) For members of the retirement system as provided for in chapter 41.35 RCW of plan III, investment shall be in the same portfolio as that of the school employees' retirement system combined plan II and III fund under RCW 41.50.075(4).

    (2) The state investment board shall declare monthly unit values for the portfolios or funds, or portions thereof, utilized under subsection (1)(a) and (b) of this section.  The declared values shall be an approximation of portfolio or fund values, based on internal procedures of the state investment board.  Such declared unit values and internal procedures shall be in the sole discretion of the state investment board.  The state investment board may delegate any of the powers and duties under this subsection, including discretion, pursuant to RCW 43.33A.030.  Member accounts shall be credited by the department with a rate of return based on changes to such unit values.

(3) Members may elect to self-direct their investments as set forth in RCW 41.34.130 and 43.33A.190.

    Sec. 2.  RCW 41.34.140 and 1998 c 341 s 308 are each amended to read as follows:

    (1) A state board or commission, agency, or any officer, employee, or member thereof is not liable for any loss or deficiency resulting from member defined contribution investments selected or required pursuant to RCW 41.34.060 (1) or (((2))) (3).

    (2) Neither the board nor the state investment board, nor any officer, employee, or member thereof is liable for any loss or deficiency resulting from reasonable efforts to implement investment directions pursuant to RCW 41.34.060 (1) or (((2))) (3).

(3) The state investment board, or any officer, employee, or member thereof is not liable with respect to any declared monthly unit valuations or crediting of rates of return, or any other exercise of powers or duties, including discretion, under RCW 41.34.060(2).

(4) The department, or any officer or employee thereof, is not liable for crediting rates of return which are consistent with the state investment board's declaration of monthly unit valuations pursuant to RCW 41.34.060(2).

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