UW investments

AN ACT Relating to the investment of gifts, grants, conveyances, 1
bequests, and devises of the University of Washington; amending RCW 2
28B.20.130; adding a new section to chapter 43.33A RCW; and creating 3
a new section. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. The legislature finds that the Washington 6
state investment board is one of the largest and most respected 7
public investment managers in the United States, with over 8
$190,000,000,000 in total assets under management. Moreover, 9
international benchmarking studies have consistently ranked the state 10
investment board as one of the lowest cost, highest performing 11
institutional investors in the world. However, despite the state 12
investment board's renowned international reputation and unparalleled 13
performance, the University of Washington has attempted to replicate 14
this infrastructure and expertise, at a significantly greater cost, 15
through the establishment of the University of Washington investment 16
management company. The legislature finds that the state investment 17
board's 2024 expenses were 0.51 percent of assets under management 18
and that annualized investment returns of the comingled trust fund 19
are 8.9 percent per year since its inception in 1992, whereas the 20
internal administrative fees charged by the University of Washington 21
H-2987.1
HOUSE BILL 2565
State of Washington 69th Legislature 2026 Regular Session
By Representatives Stokesbary and Couture
Read first time 01/19/26. Referred to Committee on Postsecondary
Education & Workforce.
p. 1 HB 2565
in 2024 were 0.90 percent of assets under management and that 1
annualized investment returns of its funds are 6.8 percent since 2
2005. Therefore, it is the intent of the legislature to eliminate 3
unnecessary and duplicative costs by disbanding the University of 4
Washington investment management company and folding its investment 5
portfolios into accounts at the state investment board.6
Sec. 2. RCW 28B.20.130 and 2012 c 229 s 804 are each amended to 7
read as follows: 8
General powers and duties of the board of regents are as follows:9
(1) To have full control of the university and its property of 10
various kinds, except as otherwise provided by law.11
(2) To employ the president of the university, his or her 12
assistants, members of the faculty, and employees of the institution, 13
who except as otherwise provided by law, shall hold their positions 14
during the pleasure of said board of regents. 15
(3) Establish entrance requirements for students seeking 16
admission to the university which meet or exceed the standards 17
specified under RCW 28B.77.020. Completion of examinations 18
satisfactory to the university may be a prerequisite for entrance by 19
any applicant at the university's discretion. Evidence of completion 20
of public high schools and other educational institutions whose 21
courses of study meet the approval of the university may be 22
acceptable for entrance. 23
(4) Establish such colleges, schools, or departments necessary to 24
carry out the purpose of the university and not otherwise proscribed 25
by law. 26
(5) With the assistance of the faculty of the university, 27
prescribe the course of study in the various colleges, schools, and 28
departments of the institution and publish the necessary catalogues 29
thereof. 30
(6) Grant to students such certificates or degrees as recommended 31
for such students by the faculty. The board, upon recommendation of 32
the faculty, may also confer honorary degrees upon persons other than 33
graduates of this university in recognition of their learning or 34
devotion to literature, art, or science: PROVIDED, That no degree 35
shall ever be conferred in consideration of the payment of money or 36
the giving of property of whatsoever kind. 37
(7) Accept such gifts, grants, conveyances, bequests, and 38
devises, whether real or personal property, or both, in trust or 39
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otherwise, for the use or benefit of the university, its colleges, 1
schools, departments, or agencies; and sell, lease or exchange, 2
((invest)) place for investment with the Washington state investment 3
board pursuant to section 3 of this act, or expend the same or the 4
proceeds, rents, profits, and income thereof except as limited by the 5
terms of said gifts, grants, conveyances, bequests, and devises. The 6
board shall adopt proper rules to govern and protect the receipt and 7
expenditure of the proceeds of all fees, and the proceeds, rents, 8
profits, and income of all gifts, grants, conveyances, bequests, and 9
devises above-mentioned. 10
(8) Except as otherwise provided by law, to enter into such 11
contracts as the regents deem essential to university purposes.12
(9) To submit upon request such reports as will be helpful to the 13
governor and to the legislature in providing for the institution.14
(10) To offer new degree programs, offer off-campus programs, 15
participate in consortia or centers, contract for off-campus 16
educational programs, and purchase or lease major off-campus 17
facilities in accordance with RCW 28B.77.080. 18
(11) To confer honorary degrees upon persons who request an 19
honorary degree if they were students at the university in 1942 and 20
did not graduate because they were ordered into an internment camp. 21
The honorary degree may also be requested by a representative of 22
deceased persons who meet these requirements. For the purposes of 23
this subsection, "internment camp" means a relocation center to which 24
persons were ordered evacuated by Presidential Executive Order 9066, 25
signed February 19, 1942. 26
NEW SECTION. Sec. 3. A new section is added to chapter 43.33A 27
RCW to read as follows: 28
The state investment board may invest the gifts, grants, 29
conveyances, bequests, and devises of the University of Washington 30
placed with the investment board by the University of Washington 31
board of regents consistent with RCW 28B.20.130(7).32
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