House Bill 2565 amends RCW 28B.20.130 and adds a new section to chapter 43.33A RCW. The bill includes legislative findings about the Washington State Investment Board’s (WSIB) assets, investment performance, and fees and states the legislature’s intent to eliminate duplicative costs by disbanding the University of Washington (UW) investment management company and folding UW investment portfolios into WSIB accounts. The bill revises RCW 28B.20.130(7) to allow the UW board of regents to place gifts, grants, conveyances, bequests, and devises it accepts with the WSIB pursuant to the new section, instead of or in addition to expending them consistent with their terms. The added section to chapter 43.33A authorizes WSIB to invest those UW gifts and similar assets that the regents place with WSIB, consistent with RCW 28B.20.130(7). The statute also includes a definition in RCW 28B.20.130(11) that “internment camp” means a relocation center ordered by Presidential Executive Order 9066 (Feb. 19, 1942). This is a procedural and administrative statutory change that modifies existing law and adds a new statutory authorization allowing WSIB to manage certain UW-held gifts and similar assets when placed with WSIB by the UW board of regents. It does not create a new crime or change criminal penalties. The affected entities are the University of Washington, its board of regents, the WSIB, the UW investment management company (mentioned in findings), and the commingled trust fund. The provided text does not include statutory language, timelines, procedures, or an effective date for disbanding the UW investment management company or for implementing transfers of assets.

If enacted, the University of Washington board of regents would be able to move gifts, grants, bequests, and similar funds into accounts managed by the Washington State Investment Board (WSIB), and WSIB would be authorized to invest those funds. In practice this means investment responsibility for at least some UW endowments and donated funds would shift from UW’s own investment unit to WSIB, likely increasing WSIB’s assets under management and aiming to reduce duplicated administration and internal fees cited in the bill’s findings. The groups most affected are the University of Washington, its board of regents, the UW investment management company (which the legislature says should be disbanded), and WSIB. UW would likely see a change in who manages and charges fees on donated funds; WSIB would take on stewardship and related investment decisions. The bill gives no schedule, procedural steps, or effective date for transferring assets or dissolving the UW investment unit, and it does not spell out how donor restrictions or transition costs will be handled, so the timing, actual savings, and operational impacts remain uncertain.