HOUSE BILL REPORT
SJR 8201
As Reported by House Committee On:
Appropriations
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 History:
Committee Activity:
Appropriations: 3/20/25, 3/24/25 [DP].
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.
  • Dedicates investment income from any such funds to long-term services and supports for program beneficiaries.
HOUSE COMMITTEE ON APPROPRIATIONS
Majority Report: Do pass.Signed by 25 members:Representatives Ormsby, Chair; Gregerson, Vice Chair; Macri, Vice Chair; Connors, Assistant Ranking Minority Member; Berg, Bergquist, Burnett, Caldier, Callan, Corry, Cortes, Doglio, Fitzgibbon, Leavitt, Lekanoff, Manjarrez, Peterson, Pollet, Rude, Ryu, Springer, Stonier, Street, Thai and Tharinger.
Minority Report: Without recommendation.Signed by 6 members:Representatives Couture, Ranking Minority Member; Penner, Assistant Ranking Minority Member; Schmick, Assistant Ranking Minority Member; Dye, Keaton and Marshall.
Staff: David Pringle (786-7310).
Background:

The Washington 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: Available.
Staff Summary of Public Testimony:

(In support) The State Investment Board is a wise and prudent investor, and this authorization to invest the long-term care funds would be a positive change for the current program.  The Area Agencies on Aging are seeing more Washingtonians that may need to tap into the Washington Cares Fund in the future.  Market-based investing will give this fund investment parity with the pension funds and the workers' compensation funds.  It is thrilling to be able to support this joint resolution.  Long-term care is a cost that nobody sees coming, and this resolution provides an important tool to deal with those unplanned costs.

 

(Opposed) None.
Persons Testifying:

Jeff Gombosky, Washington Health Care Association; Laura Cepoi, Washington Association of Area Agencies on Aging (W4A); and Cathleen MacCaul, AARP Washington State.
Persons Signed In To Testify But Not Testifying:

Luke Masselink, OSA.