This bill adds a new section to chapter 43.33A RCW that changes State Investment Board investment policy by prohibiting the board, beginning on the section’s effective date, from making new investments in any entity that owns, operates, leases, or invests in a private detention facility, and by requiring the board to ensure by January 1, 2030, that moneys in funds it manages are not invested in such entities or in any fund that contains such an entity. The measure directs that divestment and reinvestment be carried out, to the greatest extent practicable, without monetary loss to the funds through reasonable, prudent, and productive investments yielding returns comparable to the divested investments. The bill defines “detention facility” as a place where persons are incarcerated or otherwise involuntarily confined for purposes such as pretrial, sentencing, serving a court-imposed sentence, or other judicial or administrative processes, and defines “private detention facility” as a facility operated by a private, nongovernmental for‑profit entity under contract with a federal, state, or local government. “Entity” is referenced to the meaning in RCW 23.95.105 (not provided here). Affected parties identified include the State Investment Board, the funds it manages, entities that own/operate/lease/invest in private detention facilities, and private, for‑profit detention operators. The provided text does not specify the effective date, the full definition of “entity,” which specific funds are covered beyond “moneys in funds managed by the board,” or any enforcement mechanisms, penalties, or detailed procedures for implementing divestment.

If enacted, the State Investment Board would have to stop making any new investments in companies that own, operate, lease, or invest in privately run, for‑profit detention facilities immediately on the bill’s effective date and would have to remove existing holdings tied to those companies or funds containing them by January 1, 2030. Practically, that means the board will need to identify any current investments linked to private detention operators, sell or exit those positions over the next few years, and replace them with other investments that aim to produce comparable returns while minimizing monetary loss. The groups most affected are the State Investment Board and the funds it manages, which will face narrower investment options, transaction and monitoring work to complete divestments, and potential short‑term costs or tracking burdens as positions are replaced; private, for‑profit detention operators would lose access to these public investment dollars. Important details are unclear from the text provided — the exact effective date, which specific funds are covered, the statutory definition of “entity” (it refers to RCW 23.95.105), and any enforcement or penalty provisions — so the board’s duties and the practical timeline could depend on those missing clarifications.