Title 287 WAC — Investment Board, State

Chapter 287-01 Board organization and administration.

Wash. Admin. Code § 287-01-030 Regular board meetings.

The regular meetings of the state investment board are held on the third Thursday of each month, beginning at 9:30 a.m. at the board's offices at 2100 Evergreen Park Drive S.W., Olympia, Washington 98504-0916.

History

• Statutory Authority: RCW 43.33A.010 - [43.33A.]230. WSR 04-03-114, § 287-01-030, filed 1/21/04, effective 2/21/04. Statutory Authority: RCW 43.33A.110 and 43.33A.040(2). WSR 95-15-080, § 287-01-030, filed 7/18/95, effective 8/18/95.

Chapter 287-02 Public records.

Wash. Admin. Code § 287-02-010 Purpose.

The purpose of this chapter is to provide rules for the Washington state investment board to implement the provisions of chapter 42.56 RCW relating to public records and to ensure compliance with that chapter.

History

• Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-010, filed 12/1/16, effective 1/1/17. Statutory Authority: RCW 34.04.020(2), 42.17.250 and 42.17.260. WSR 81-23-012 (Order 81-1), § 287-02-010, filed 11/10/81.

Wash. Admin. Code § 287-02-015 Definitions.

The definitions set forth in RCW 42.56.010 apply throughout this chapter. In addition, the definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

"Copy" means an identical reproduction of a public record. A copy can be either an electronic or physical reproduction of a public record.

"Executive director" means the executive director of the Washington state investment board.

"Page" means one impression on a single side of a sheet of paper. It also applies to one electronic image of one side of a sheet of paper.

"Public records manager" means the public records manager or designee for the Washington state investment board appointed by the executive director.

"WSIB" or "board" means the Washington state investment board established in chapter 3, Laws of 1981. Where appropriate, WSIB or agency also refers to the staff and employees of the Washington state investment board.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-015, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, amended and recodified as § 287-02-015, filed 12/1/16, effective 1/1/17. Statutory Authority: RCW 34.04.020(2), 42.17.250 and 42.17.260. WSR 81-23-012 (Order 81-1), § 287-02-020, filed 11/10/81.

Wash. Admin. Code § 287-02-023 Description of the Washington state investment board.

The Washington state investment board, created in chapter 3, Laws of 1981, and codified in chapter 43.33A RCW, is an independent board of trustees whose fiduciary responsibility is to manage retirement and public fund investments with the highest standard of professional conduct. The board's primary investment objective is to maximize returns at a prudent level of risk for the exclusive benefit of fund participants and beneficiaries.

Individual board members are appointed by the chair to serve on any of the board's four different committees which act as extensions of the board. The committees' function is to efficiently analyze investment and governance issues with greater scrutiny than would be practicable for the full board. Committee recommendations are brought to the board for consideration and a vote. The four committees are:

Administrative committee

The administrative committee oversees organizational, personnel, budget, legal, and legislative issues, as well as strategic asset allocation.

Audit committee

The audit committee assists the board in financial oversight of the WSIB including risk management, compliance monitoring, internal and external audits, corporate governance and proxy voting.

Private markets committee

The private markets committee develops policy and structure for private market and real estate opportunities and reviews those investments for recommendations to the board.

Public markets committee

The public markets committee develops policy and structure for public market investments (fixed income, domestic equity, international equity) and reviews individual equity managers to recommend to the board.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-023, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, amended and recodified as § 287-02-023, filed 12/1/16, effective 1/1/17. Statutory Authority: RCW 43.33A.010 - [43.33A.]230. WSR 04-03-114, § 287-02-030, filed 1/21/04, effective 2/21/04. Statutory Authority: RCW 34.04.020(2), 42.17.250 and 42.17.260. WSR 81-23-012 (Order 81-1), § 287-02-030, filed 11/10/81.

Wash. Admin. Code § 287-02-025 Organizations, operations and procedures.

The state investment board is charged with the duty to invest certain trust and public funds, as set forth in RCW 43.84.150, and chapter 43.33A RCW. The board meets at least quarterly, at times and locations determined by the board, in order to perform its duties. All such meetings comply with the Open Public Meetings Act.

Operative structure

The WSIB is a small agency with staff working in three divisions - Investments, operations, and institutional relations. The WSIB's executive director is appointed by the board to oversee the staff, develop and recommend agency and investment policies for board adoption, and ensure adherence to state policies and laws.

The WSIB framework is similar to most investment management organizations, with a board and executive management providing firm-wide leadership with major operating units for investment management, operations, human resources, risk control, legal and compliance, financial management and administration, and public affairs.

Investment professionals comprise the investment division which manages investments in major asset classes including public equity, private equity, real estate, tangible assets, fixed income and risk management and asset allocation. Each asset class is led by one or more senior investment officers who supervise their asset class' investment staff and serve as the WSIB's primary portfolio risk analysts and develop asset allocation strategies. The division employs both internal and external investment management strategies.

The operations division provides a number of services in support of the investment function, including trade settlement, cash management, private market funding, cash and stock distributions, foreign and domestic tax matters, and investment compliance monitoring. It provides agency-wide risk management, information systems management, and administrative services.

The institutional relations division oversees essential areas of strategic communications and related duties typically found in a client services division of an investment management entity. These duties include performance reporting, annual report preparation, proxy voting, corporate governance and managing interactions and relationships with external entities to ensure transparency and dissemination of accurate and timely information.

The administrative office of the investment board and its staff are located at 2100 Evergreen Park Drive S.W., Olympia, Washington 98502.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-025, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, amended and recodified as § 287-02-025, filed 12/1/16, effective 1/1/17. Statutory Authority: RCW 34.04.020(2), 42.17.250 and 42.17.260. WSR 81-23-012 (Order 81-1), § 287-02-040, filed 11/10/81.

Wash. Admin. Code § 287-02-033 Public records officer.

(1) The public records officer is appointed by the executive director and is located in the legal, risk and compliance unit within the operations division of the WSIB.

(2) The public records officer is in charge of the WSIB's public records program. The public records officer is responsible for the implementation of the WSIB's rules regarding the release of public records for inspection and copying, coordinating the WSIB staff in this regard, and overseeing compliance with the Public Records Act requirements in chapter 42.56 RCW.

(3) The public records officer may choose a designee to act in his or her place to carry out the responsibilities in this chapter, including processing and responding to public records requests. The WSIB's public records officer will provide the fullest assistance to requestors.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-033, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-033, filed 12/1/16, effective 1/1/17.

Wash. Admin. Code § 287-02-035 Availability of records.

Public records are available for inspection and the preparation of requested copying during the WSIB's normal business hours. For the purposes of this chapter, normal business hours of WSIB are 8:00 a.m. to noon and 1:00 p.m. to 5:00 p.m., Monday through Friday, excluding legal holidays. Records must be inspected at the main office of the WSIB or other agency location as applicable.

History

• Statutory Authority: RCW 42.56.040. WSR 16-24-047, amended and recodified as § 287-02-035, filed 12/1/16, effective 1/1/17. Statutory Authority: RCW 34.04.020(2), 42.17.250 and 42.17.260. WSR 81-23-012 (Order 81-1), § 287-02-050, filed 11/10/81.

Wash. Admin. Code § 287-02-045 Processing of public records requests—Request.

(1) Any person wishing to inspect or copy public records of WSIB may submit the request in writing using the WSIB's request form, or by letter, or email addressed to RequestPublicRecords@sib.wa.gov. The request should include the following information:

• Name of requestor;

• Address of requestor;

• Other contact information, including telephone number and any email address;

• Identification of the public records adequate for the public records manager to locate the records; and

• The date of the request.

(2) A request for all, or substantially all, of the WSIB's records is not a valid request for identifiable records.

(3) If the requestor wishes to have copies of the records made instead of inspecting them, he or she should so indicate. Costs will be assessed in compliance with WAC 287-02-075.

(4) A request form is available for use by requestors at the administrative office of the WSIB and online at http://www.sib.wa.gov.

(5) Requests may also be submitted to the receptionist at the WSIB by telephone or in person; however, the requesting party may be asked to reduce the request to writing for the sake of clarity. Alternatively, the public records officer may confirm receipt of the request and restate the substance of the request in writing.

(6) The WSIB may deny a bot request, or a request that is one of multiple requests made by the same requestor within a twenty-four-hour period, if responding to the multiple requests would cause excessive interference with essential WSIB functions and the WSIB reasonably believes the request to be automatically generated by a computer program or script.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-045, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-045, filed 12/1/16, effective 1/1/17.

Wash. Admin. Code § 287-02-047 Processing of public records requests—Response.

(1) Within five business days of receipt of the request, the public records manager will do one or more of the following:

(a) Produce the requested records;

(b) Provide the requestor with a link to the requested documents located on the internet;

(c) Provide a reasonable estimate of when records will be available;

(d) Seek clarification of the request and provide a reasonable estimate (where possible) of when records will be provided if no clarification is received; or

(e) Deny the request.

(2) If records responsive to the request contain information implicating a third party's privacy or financial interest and any exemption from disclosure of that information arguably applies, the public records officer may give notice to those parties before releasing the records. Such notice provides those third parties an opportunity to seek a court order pursuant to RCW 42.56.540. The WSIB will inform the record requestor that it is providing third-party notice.

(3) If records responsive to the request are exempt from disclosure, in whole or in part, the public records officer will identify the record, state the specific exemption, and provide a brief explanation of why the record or a portion of the record is being withheld. If only a portion of a record is exempt from disclosure, the public records officer will produce the nonexempt portions.

(4) If a requestor withdraws the request, fails to inspect the records, fails to pay the deposit if required under WAC 287-02-065 and 287-02-075, or make final payment for the requested records, the public records officer will close the request.

(5) The WSIB is not required to create new documents in order to respond to a request for public records or to provide records that are not the WSIB's own public records.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-047, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-047, filed 12/1/16, effective 1/1/17.

Wash. Admin. Code § 287-02-055 Inspection of public records.

(1) Consistent with other demands, WSIB will provide space to inspect public records. No requestor may remove a document from the viewing area or disassemble, reorder, deface, photograph, or in any way alter any records or collection of records. The requestor may also be supervised by a WSIB employee during the requestor's inspection of the records.

(2) After inspection is complete, the requestor will identify which documents, if any, he or she wishes the agency to produce. Consistent with other demands and the volume of documents requested, WSIB may copy the document at that time or provide the copies to the requestor at a later date.

(3) Within thirty days of the WSIB's notification that the records are available for inspection or copying, the requestor must claim or review the assembled records. If the requestor or a representative of the requestor fails to claim or review the records within the thirty-day period or make other arrangements, the WSIB may close the request. If the requestor makes a request for the same records, it will be processed as a new request.

(4) When the inspection of the requested records is complete and all requested copies are provided, the public records officer will indicate that WSIB has completed its search for the requested records and made any nonexempt records available for inspection.

(5) Many records are available on the WSIB website at www.sib.wa.gov, and requestors are encouraged to review the documents available on the website prior to submitting a records request.

(6) Records will be made available to the requestor subject to the following restrictions:

(a) The records may not be removed from the area designated;

(b) The quantity of records may be limited in accordance with the requested use;

(c) All possible care must be taken by the requestor to prevent damage to the records;

(d) Records may not be marked, altered, cut, mutilated, or defaced in any way including writing on, folding or folding anew if in folded form, tracing or fastening with clips or other fasteners except those that may already exist in the file;

(e) Use of liquids and fountain pens and eating, drinking, and smoking while utilizing the records is prohibited;

(f) Records must be kept in the order in which received;

(g) All copying of records will be done by WSIB personnel; and

(h) Records will be returned to the public records officer by the requestor at the conclusion of the time given to inspect records and no later than the end of the customary office hours as set forth in WAC 287-02-035.

(7) When a requestor requests records in an electronic format, the public records officer will provide available nonexempt electronic public records or portions of such records that are reasonably locatable in an electronic format that is used by the agency and is generally commercially available, or in a format that is reasonably translatable from the format in which the agency keeps the record, or as otherwise agreed to between the requestor and the public records officer.

(8) Whenever possible, WSIB will provide records in electronic format. If the WSIB has only a paper copy of the record, the WSIB, when feasible, may scan the paper record and provide the resulting electronic copy to the requestor. If the WSIB maintains the record in electronic format, the record will be provided in the maintained electronic format unless the requestor specifically asks to receive the record in paper copies or it is otherwise not feasible to provide the record in electronic format.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-055, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-055, filed 12/1/16, effective 1/1/17.

Wash. Admin. Code § 287-02-065 Response to public records request—Installments.

(1) The public records officer may provide records or access for inspection and copying in installments.

(2) Requestors will be notified when an installment is ready. If a requestor fails to inspect or collect an installment within thirty days, the public records officer may close the request.

(3) Where payment is required as part of a public records request under WAC 287-02-075, the public records officer may require payment for each installment either prior to providing the installment or prior to providing subsequent installments and may require a deposit up to ten percent of the estimated cost of preparing or producing an installment. If the requestor fails to pay the required cost in a timely manner the public records officer may close the request.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-065, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-065, filed 12/1/16, effective 1/1/17.

Wash. Admin. Code § 287-02-075 Costs of providing public records.

(1) There is no fee for inspecting public records. WSIB may impose a charge for providing public records.

(2) The WSIB does not calculate the actual costs for copying its records, because doing so would be unduly burdensome and it is in the public's best interest for the WSIB to adopt the fees in RCW 42.56.120 (2)(b). The WSIB fee schedule is:

(3) The WSIB may charge the actual costs of providing electronic or paper copies in response to a public records request when complying with the public records request will require IT expertise to prepare data compilations or provide customized electronic access services that are not used by the WSIB for any other purpose.

(4) Before producing public records, the public records officer may require:

(a) A deposit of up to ten percent of the estimated costs of copying all the records requested;

(b) The payment of the remainder of the costs before providing all the records; or

(c) The payment of the costs of providing an installment before providing that installment. The WSIB will not charge sales tax when it makes copies of public records.

(5) Payment may be made by cash in the exact amount charged, check, or money order made payable to the Washington state investment board.

(6) If a requestor fails to pay for records in full or in part by the requested due date, the request will be closed.

(7) The WSIB may enter into any contract, memorandum of understanding, or other agreement with a requestor that provides an alternative fee arrangement to the fees charged above when the response to the particular request is voluminous or frequently occurring.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-075, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-075, filed 12/1/16, effective 1/1/17.

Wash. Admin. Code § 287-02-080 Review of denials of requests for public records.

(1)(a) Any person who has been denied an opportunity to inspect or copy a public record by the WSIB or who believes that the WSIB has not made a reasonable estimate of the time required to respond to a public record request may petition the WSIB for prompt review of its decision.

(b) The petition shall be in writing and shall include a copy of, or reasonably identify, the written statement by the public records officer denying the request or providing the estimate.

(c) The petition shall be sent to the public records officer at the WSIB's administrative offices or by email at RequestPublicRecords@sib.wa.gov. The public records officer will promptly provide the petition and any other relevant information to the executive director or the assigned delegate.

(2) The executive director or assigned delegate will immediately consider the petition and either affirm or reverse the denial or the estimate. This review will be complete within five business days following WSIB's receipt of the petition, or within such times as mutually agreed by WSIB and the requestor.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-080, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-080, filed 12/1/16, effective 1/1/17. Statutory Authority: RCW 34.04.020(2), 42.17.250 and 42.17.260. WSR 81-23-012 (Order 81-1), § 287-02-080, filed 11/10/81.

Wash. Admin. Code § 287-02-085 Records index.

(1) The state general records retention schedule and the WSIB's unique records retention schedule, as established and approved by the state records committee, serve as the index for the identification and location of the WSIB's records, including those described in RCW 42.56.070(5).

(2) The current index, as described in subsection (1) of this section, is available to all persons under the same rules and on the same conditions as are applied to public records available for inspection. The index can be found on the WSIB website at http://www.sib.wa.gov.

History

• Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-085, filed 12/1/16, effective 1/1/17.

Wash. Admin. Code § 287-02-090 Communications with the agency.

All communications with WSIB to access public records of the WSIB or seek assistance in making such a request, or for the purpose of obtaining information, making submittals or requests, or making inquiries concerning the agency's rules for compliance with chapter 42.56 RCW or seeks review under WAC 287-02-080 must be addressed as follows:

Washington State Investment Board

Public Records Manager

2100 Evergreen Park Drive S.W.

P.O. Box 40916

Olympia, WA 98504-0916

Email: PublicRecordsRequest@sib.wa.gov.

Information is also available at the WSIB website at http://www.SIB.wa.gov.

History

• Statutory Authority: RCW 42.56.040, 42.56.070, 42.56.100, 42.56.120, and 2017, c 304. WSR 18-18-013, § 287-02-090, filed 8/24/18, effective 9/24/18. Statutory Authority: RCW 42.56.040. WSR 16-24-047, § 287-02-090, filed 12/1/16, effective 1/1/17. Statutory Authority: RCW 34.04.020(2), 42.17.250 and 42.17.260. WSR 81-23-012 (Order 81-1), § 287-02-090, filed 11/10/81.

Chapter 287-04 Conflict of interest.

Wash. Admin. Code § 287-04-010 Promulgation.

Pursuant to section 4, chapter 219, Laws of 1981 the board promulgates the following rules relating to conflict of interest and ethical conduct appropriate to the specific needs of the board.

History

• Statutory Authority: RCW 43.33A.110. WSR 81-23-012 (Order 81-1), § 287-04-010, filed 11/10/81.

Wash. Admin. Code § 287-04-020 Purpose.

The board finds that the trusteeship and investment management of the state's trust and retirement funds demand the highest degree of confidence from the beneficiaries of the funds and the public in general, and the establishment of rules regarding conflict of interest and ethical conduct will promote and sustain public trust and maintain integrity in government.

History

• Statutory Authority: RCW 43.33A.110. WSR 81-23-012 (Order 81-1), § 287-04-020, filed 11/10/81.

Wash. Admin. Code § 287-04-029 Rules of conduct.

WAC 287-04-031 through 287-04-039 are promulgated pursuant to RCW 43.33A.110 and 42.52.200 to ensure compliance with chapter 42.52 RCW (Ethics in public service) and the code of conduct, as adopted by the board. All employees of the board and board members must comply with the code of conduct.

History

• Statutory Authority: RCW 43.33A.110 and 42.52.200. WSR 98-01-138, § 287-04-029, filed 12/19/97, effective 1/19/98.

Wash. Admin. Code § 287-04-031 Gifts.

(1) "Gifts" and "thing of economic value"

(a) No employee of the board or member of the board shall receive, accept, seek or solicit, directly or indirectly, any gift as defined in RCW 42.52.010(18) if such employee or member of the board has reason to believe that it could be reasonably expected that the gift, gratuity, or favor would influence the vote, action, or judgment of the officer or employee, or be considered as part of a reward for action or inaction.

(b) No employee of the board or member of the board shall accept gifts, except those specified in RCW 42.52.150 (2) and (5), with an aggregate value in excess of fifty dollars from a single source in a calendar year or a single gift from multiple sources.

(c) Notwithstanding the above exception found in RCW 42.52.150 (2) and (5), a board member or an employee of the board who participates in the acquisition of goods and services cannot accept things of economic value from a person who seeks to provide goods or services to the board, except for those items specifically listed in RCW 42.52.150(4).

(2) No employee of the board or board member may accept honorarium under the circumstances set forth in RCW 42.52.130. An employee or board member may accept honorarium if all of the following are met:

(a) The employee or board member will not be carrying out their agency duties nor engaging in activity which focuses specifically on the board's responsibilities, policies or programs;

(b) The honorarium is not being offered because of the employee's or board member's official position in the board;

(c) The topic is such that it does not appear that the employee or board member could have used information acquired in the course of employment or membership on the board;

(d) The honorarium is not being offered by a person or entity which does business with or can reasonably be expected to seek business with the board; and

(e) No use of government time or resources was used by the employee or board member to produce the materials or prepare for the article, appearance, or item for which the honorarium is being given.

History

• Statutory Authority: RCW 43.33A.110 and 42.52.200. WSR 98-01-138, § 287-04-031, filed 12/19/97, effective 1/19/98. Statutory Authority: RCW 43.33A.110. WSR 95-15-081, § 287-04-031, filed 7/18/95, effective 8/18/95
• WSR 93-04-008, § 287-04-031, filed 1/22/93, effective 2/22/93.

Wash. Admin. Code § 287-04-032 Personal investments.

(1) The following definitions apply to this section:

(a) "Permissible investment" means any mutual fund or deposit account, certificate of deposit or money market fund maintained with a bank, broker, or other financial institution, any security publicly traded in an organized market if the interest in the security at acquisition is ten thousand dollars or less or an interest in real estate unless such interest involves a related party transaction.

(b) "Other investment" means any investment not defined as a permissible investment in (a) of this subsection.

(c) "Immediate family" includes the spouse, dependent children, other dependent relatives if living in the household and any other household member, whether or not related.

(2) Board members and employees may purchase "permissible investments" without prior approval.

(3) No employee of the board shall or shall permit any member of his or her immediate family to, purchase any "other investment," without the written prior approval of the executive director or his or her designee. The executive director shall not purchase or permit any member of his or her immediate family to purchase any "other investment," without the prior written approval of the chair or his or her designee who shall report to the board any approval granted or denied. No member of the board shall or shall permit any member of his or her immediate family to purchase any "other investment," without the prior written approval of the executive director or his or her designee, who shall report to the board any approval granted or denied.

(4) No employee of the board or board member shall participate in an LBO or venture capitol IPO of which the board has an interest until such shares are available to the general public.

History

• Statutory Authority: RCW 43.33A.110 and 42.52.200. WSR 98-01-138, § 287-04-032, filed 12/19/97, effective 1/19/98.

Wash. Admin. Code § 287-04-033 Additional prohibitions.

(1) No board member or employee shall borrow from investment managers, outside service providers, professional advisors or consultants, banks, or other financial institutions with which the board has a business relationship, except and unless such entities are normally engaged in such lending in the usual course of their business, and then only on terms offered to others under similar circumstances.

(2) Confidential information shall be used solely for the board's purposes and under no circumstances revealed to unauthorized persons, except as may be otherwise required to be disclosed as a public record pursuant to the requirements of chapter 42.17 RCW. If a document is subject to disclosure pursuant to chapter 42.17 RCW, there is an affirmative duty to properly release the document upon request.

(3) No board member or employee shall divulge state agency or board information or proprietary information in the board's possession, whether labeled confidential or not, to any unauthorized person or in advance of the time prescribed for its authorized issuance, or otherwise making use of, or permitting others to make use of, information not available to the general public.

(4) No board member or employee shall use his or her position or employment with the board, or use board facilities, equipment, or supplies, to obtain or attempt to obtain private gain or advantage, either for themselves or for other persons.

(5) No board member or employee shall use his or her position or employment with the board, or use board facilities, equipment, or supplies, to assist another in a transaction involving the board, or use his or her influence over the board to obtain or attempt to obtain gain or advantage for the person or entity seeking to transact business with the board.

(6) No member of the board or its staff shall accept employment or engage in business or professional activity which he or she might reasonably expect would require or induce him or her to disclose confidential information acquired by him or her by reason of his or her official position.

History

• Statutory Authority: RCW 43.33A.110 and 42.52.200. WSR 98-01-138, § 287-04-033, filed 12/19/97, effective 1/19/98.

Wash. Admin. Code § 287-04-034 Recusal.

(1) A member or employee of the state investment board shall comply with subsection (2) of this section when the following circumstances apply or it is reasonably foreseeable that they will apply:

(a) The member or employee is beneficially interested, directly or indirectly, in an investment decision, investment agreement, contract, sale, lease, purchase, or any other acquisition or disposal of an asset, goods or services made by, through, or under the supervision of the board, in whole or in part; or

(b) The member or employee either owns a beneficial interest in, or is an officer, agent, employee or member of, an entity which is engaged in a transaction involving the board; or

(c) A member or employee accepts, directly or indirectly, any compensation, gratuity or reward from any other person beneficially interested in such investment decision, investment agreement, contract, sale, lease, purchase, or any other acquisition or disposal of assets, goods or services; or

(d) A member or employee's participation in a board discussion or vote is motivated by something other than the best interests of the board, its members and beneficiaries, in violation of that person's duty of loyalty.

(2)(a) If required by subsection (1) of this section, the member or employee shall:

(i) Recuse him or herself from discussions by the board, or any committee of the board, regarding the specific investment decision or other transaction; and

(ii) Recuse him or herself from any vote by the board, or any committee of the board, upon the specific investment decision or other transaction; and

(iii) Refrain from attempting to influence any other board member or employee in any discussion or vote regarding the specific investment decision or transaction.

(b) If recusal by a member or employee occurs pursuant to this subsection, the member or employee shall disclose to the public the reasons for his or her recusal from any board discussion or action at or prior to the time recusal occurs. The board staff shall record each such recusal and basis for the recusal.

(c) The prohibitions contained in this subsection do not prohibit the member or employee from using his or her general expertise to educate and provide general information on the subject area to other members or employees.

History

• Statutory Authority: RCW 43.33A.110 and 42.52.200. WSR 98-01-138, § 287-04-034, filed 12/19/97, effective 1/19/98.

Wash. Admin. Code § 287-04-038 Definitions.

The following definitions apply to this chapter:

(1) "Transaction involving the board" means a proceeding, application, investment decision, investment agreement, contract, sale, lease, purchase or any other acquisition or disposal of any asset, goods or services, request for a ruling or other determination, claim, case or similar matter that the member or employee in question believes, or has reason to believe:

(a) Is, or will be the subject of board action; or

(b) Is one to which the board is or will be a party; or

(c) Is one in which the board has a direct and substantial proprietary interest.

"Transaction involving the board" does not include the following: Preparation, consideration or enactment of legislation, including appropriation of moneys in a budget, or the performance of legislative duties by a member or employee; or a claim, case, lawsuit, or similar matter if the member or employee did not participate in the underlying transaction involving the board that is the basis for the claim, case or lawsuit. Rule making is not a "transaction involving the board."

(2) "Board action" means any action on the part of the board including, but not limited to:

(a) A decision, determination, finding, ruling, or board order; and

(b) An investment decision or approval of an investment decision, an investment contract or approval of an investment contract, any other contract or approval of such contract, or any other transaction or approval of such transaction, sanction, denial of a transaction or request, or failure to act with respect to a decision, determination, finding, ruling or order.

History

• Statutory Authority: RCW 43.33A.110 and 42.52.200. WSR 98-01-138, § 287-04-038, filed 12/19/97, effective 1/19/98.

Wash. Admin. Code § 287-04-039 Violation of code.

(1) A board member or employee who is found by the board to have violated the code of conduct set forth in WAC 287-04-031 through 287-04-034 may be subject to official reprimand by vote of the board. In the event that the board determines a violation of the code to be so egregious or apparent as to constitute malfeasance, misfeasance, inefficiency, neglect of duty, incapacity, or unfitness to perform his or her fiduciary duties and responsibilities in the exclusive interest of the board and its beneficiaries, and if the offending person is:

(a) A voting board member: The board, in its sole discretion, may refer the matter to the proper appointing authority or the attorney general, as deemed appropriate; or if

(b) A nonvoting board member: The board, in its sole discretion, may take the appropriate steps necessary to and remove the offending member from the board; or if

(c) The executive director: The board, in its sole discretion, may take the appropriate steps to remove the director in compliance with RCW 43.33A.100; or if

(d) An employee of the board governed by the merit systems rules: The executive director may take such disciplinary action as authorized under Title 356 WAC up to and including termination of employment; or if

(e) An exempt employee of the board: The executive director may take whatever disciplinary action deemed appropriate, up to and including termination of employment.

(2) The board may refer the alleged violation to the executive ethics board for further investigation as provided under RCW 42.52.360.

History

• Statutory Authority: RCW 43.33A.110 and 42.52.200. WSR 98-01-138, § 287-04-039, filed 12/19/97, effective 1/19/98.

Wash. Admin. Code § 287-04-040 Conflict of employment.

No board or staff member shall accept employment which will adversely affect the performance of that member's official duties, discredit the board or result in a conflict of interest.

History

• Statutory Authority: RCW 43.33A.110. WSR 81-23-012 (Order 81-1), § 287-04-040, filed 11/10/81.

Chapter 287-06 State Environmental Policy Act—Interpretation.

Wash. Admin. Code § 287-06-010 Exemption from provisions of WAC 197-10-800.

The state investment board has reviewed its authorized activities and found them all to be exempt from the provisions of Title 197 WAC. This statement is adopted in compliance with the requirement that the board adopt guidelines consistent with Title 197 WAC.

History

• Statutory Authority: RCW 43.21C.120. WSR 81-23-012 (Order 81-1), § 287-06-010, filed 11/10/81.