Tennessee Senate Bill SJR0034

Tennessee 2023-2024 Regular Session

• Introduced: 1/12/23

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 SJR0034 is enacted, the implications for state law would be significant. The proposed amendment would not only change how state funds can be utilized but also potentially increase the financial returns for the state. By diversifying investments into equities, Tennessee could enhance its revenue streams and, in turn, improve funding for public services and projects. Proponents believe that allowing these investments will lead to better management of state funds and a more financially sound operation of government resources.

Summary

SJR0034 is a Senate Joint Resolution proposing an amendment to Article II, Section 31 of the Tennessee Constitution. The amendment seeks to allow the State of Tennessee to invest its funds in equities, which includes ownership in both public and private companies. Currently, the state's constitution prohibits such investments, which has been argued to limit the potential returns on state investments, thereby affecting the state’s ability to provide essential services to its citizens. This resolution aims to rectify that limitation by enabling the state to adopt investment policies that allow for equity stakes in various entities.

Contention

However, there may also be notable points of contention associated with this bill. Critics might argue that allowing the state to invest in equities raises concerns regarding conflicts of interest, accountability, and the risks associated with equity investments. There may be apprehension from taxpayers about how these investments are managed and monitored. Additionally, debates could arise regarding the ethical implications of state involvement in private enterprises, emphasizing a need for robust regulations and oversight mechanisms to safeguard against potential mismanagement or financial loss.