Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Appropriations Committee
SJR 8201
Brief Description: Amending the Constitution to allow the state to invest moneys from long-term services and supports accounts.
Sponsors: Senators Braun, Pedersen and Conway.
Brief Summary of Joint Resolution
  • Proposes a constitutional amendment to allow funds held for the purpose of long-term care services and supports for eligible seniors and people with disabilities to be invested as provided by law.
  • Investment income from any such funds is dedicated to long-term services and supports for program beneficiaries.
Hearing Date: 3/20/25
Staff: David Pringle (786-7310).
Background:

The state Constitution prohibits the state from being interested in the stock, bonds, or credit instruments of any company, association, or corporation.  This provision has been interpreted to mean that the state cannot place any investment funds in stock and other equities.  As a result, state investments are limited to fixed-income securities such as government and specific types of corporate bonds and certificates of deposit.

 

In the past, some state funds have been specifically exempted from constitutional investment restrictions through constitutional amendments.  Currently, these include public pension or retirements funds, industrial insurance trust funds, and funds held in trust for the benefit of persons with developmental disabilities.
Summary of Bill:

A constitutional amendment is proposed to allow funds held for the purpose of long-term care services and supports for eligible seniors and people with disabilities to be invested as provided by law.  Investment income from any such funds is dedicated to long-term services and supports for program beneficiaries.
Appropriation: None.
Fiscal Note: Preliminary fiscal note available.