Tennessee House Bill HJR0132

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/23
• Refer: 2/1/23
• Refer: 4/12/23

Caption

A RESOLUTION to propose an amendment to Article II, Section 31 of the Constitution of Tennessee, to allow the investment of state funds in equities.

Impact

If passed, HJR0132 would have significant implications for how the state manages its investment strategies. The proposed change could potentially increase the revenue generated from state funds, enabling greater investment in public projects and services. This could lead to improved infrastructure, education, and healthcare for Tennesseans, as the state would be able to benefit from higher returns on its investments rather than being constrained by the current prohibitions.

Summary

House Joint Resolution 132, also known as HJR0132, proposes an amendment to Article II, Section 31 of the Constitution of Tennessee. This amendment aims to allow the state to invest its funds in equities, which includes the potential ownership in both public and private companies. The current constitutional provision prohibits such investments, thereby limiting the financial opportunities available to the state. By allowing investments in equities, the resolution seeks to enhance the returns of state funds, which could subsequently boost the state’s capacity to provide essential services to its residents.

Contention

However, the amendment may face scrutiny from various stakeholders concerned about the risks associated with state investments in equities. Opponents might argue that investing in financial markets can expose state funds to volatility and risk, which could undermine the fiscal responsibility expected of government entities. Additionally, there may be a debate regarding transparency and governance in how such investment policies are structured and implemented. The resolution is set to be submitted to voters during the November 2026 general election, ensuring that the public will have a say in this pivotal change to state financial policy.