The legislature finds that persistent and disproportionate wealth inequities exist in Washington state. As wealth is the key indicator of long-term economic stability and well-being, those born into families of limited means face additional and substantial barriers to accessing reliable pathways out of poverty such as owning a home, completing postsecondary education, or starting a small business. The legislature declares that it is the public policy of the state and a recognized governmental function to assist individuals who are born into families of limited means to overcome economic and other disadvantages that would otherwise limit their opportunities as adults, making them better able to contribute to the general welfare.
Nearly half of all births in Washington state occur with a public subsidy from apple health. This indicates that a significant population of Washingtonians are born every year without financial stability.
The legislature recognizes that the effects of economic hardship are well-documented. Poverty causes negative outcomes for children, adults, and families. Further, financial hardship to individuals can result in state expenditures that could have been avoided if affected individuals were empowered to be more financially independent.
The purpose of this chapter is to establish a Washington future fund trust fund program housed in the office of the state treasurer to provide a sum of money in a savings and investment account for individuals who are born into families of limited means, to assist them in pursuing opportunities for education, housing, and entrepreneurship by starting a small business. The legislature also intends for this chapter to create opportunities that will foster financial independence and correspondingly reduce the need for certain state support.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
"Designated beneficiary" means an individual:
Born on or after January 1, 2024;
Whose birth was subject to medical coverage provided under apple health for kids, as provided in RCW 74.09.470; and
Who is facing financial hardship at the time of making a claim for funds provided in this chapter, as determined by the treasurer.
"Eligible expenditure" means an expenditure associated with any of the following:
Postsecondary education of a designated beneficiary in Washington state, including trade schools, apprenticeships, and technical certifications;
Purchase of a home in Washington state by a designated beneficiary; or
The formation of a business in Washington state by a designated beneficiary.
"Facing financial hardship" means having an income that is less than 193 percent of the federal poverty level.
"Treasurer" means the state treasurer.
"Washington future fund trust fund" or "trust" means the fund established in the custody of the state treasurer by section 4 of this act, comprised of private, public, or private and public sources, to finance benefits for designated beneficiaries.
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A committee on the Washington future fund trust fund is established, with members as provided in this subsection:
The president of the senate shall appoint one member of the senate from each of the two largest caucuses;
The speaker of the house of representatives shall appoint one member of the house of representatives from each of the two largest caucuses;
The state treasurer, or the treasurer's designee;
The state treasurer shall appoint two members representing underrepresented communities;
The state treasurer shall appoint one member representing an economic empowerment organization; and
The committee shall be chaired by the state treasurer. The state treasurer must convene the initial meeting of the committee in 2029. Subsequent meetings shall be held as follows:
Annual meetings through 2034;
Twice annual meetings in 2035 through 2039; and
Quarterly meetings in 2040 through 2042.
All appointed members shall serve a two-year term that begins on January 1st.
The committee shall review the following topics:
The distribution of funds in accordance with the intent of the trust;
How to determine eligibility at the time that funds are received, including means-testing and identification verification;
How to monitor the designated beneficiary's use of funds to ensure compliance with program requirements;
Creating a campaign to increase public awareness of eligibility for the program;
The identification and approval of financial education course offerings; and
Other policy considerations that may arise and be pertinent to the administration of the trust.
Staff support for the committee is provided by the office of the treasurer.
Legislative members of the committee are reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members are not entitled to be reimbursed for travel expenses if they are elected officials or are participating on behalf of an employer, governmental entity, or other organization. Any reimbursement for other nonlegislative members is subject to chapter 43.03 RCW.
Committee expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees.
The committee shall report its findings and recommendations to the appropriate committees of the legislature by December 1, 2040.
This section expires January 1, 2045.
The Washington future fund trust fund is created in the custody of the state treasurer. Expenditures from the fund may be used only for the purposes of the Washington future fund trust fund established under this chapter. The fund shall retain its interest earnings in accordance with RCW 43.79A.040.
The treasurer shall deposit in the fund all money received for the program, including state appropriations and private contributions.
Disbursements from the fund are exempt from appropriations and the allotment provisions of chapter 43.88 RCW.
Money used for program administration by the treasurer is subject to the allotment and budgetary controls of chapter 43.88 RCW, and an appropriation is required for these expenditures.
All moneys in the fund, all property and rights purchased from the fund, and all income attributable to the fund, shall be held in trust by the state investment board, as provided in RCW 43.33A.030, for the exclusive benefit of fund beneficiaries.
The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in the trust. All of the earnings from the investment of the money shall be retained by the trust.
All investment and operating costs associated with the investment of money shall be paid under RCW 43.33A.160 and 43.84.160.
All investments made by the state investment board shall be made with the exercise of judgment and care required by RCW 43.33A.140 and consistent with the investment policy established by the state investment board.
As deemed appropriate by the state investment board, money in the trust may be commingled for investment with other funds subject to investment by the board.
The authority to establish all policies relating to the trust, other than the investment policies as set forth in subsections (1) through (3) of this section, resides with the treasurer.
The state investment board shall routinely consult and communicate with the treasurer on the investment policy, earnings of the trust, and related needs of the program.
The treasurer shall administer the Washington future fund trust fund. To the extent that funds are appropriated for this purpose, the office of the state treasurer shall provide staff and administrative support to the treasurer.
The treasurer, the office of the state treasurer, and the state investment board shall not be considered an insurer of the funds or assets of the trust or the individual trust accounts. Neither the treasurer, the office of the state treasurer, nor the state investment board are liable for the action or inaction of the other.
The treasurer, the office of the state treasurer, and the state investment board are not liable to the state, to the trust, or to any other person as a result of their activities relating to this chapter, whether those activities are ministerial or discretionary, except for willful dishonesty or intentional violations of law. The treasurer may purchase liability insurance for the treasurer and the office of the state treasurer, and the state investment board may purchase liability insurance for its members.
Beginning on a designated beneficiary's 18th birthday and before the designated beneficiary's 31st birthday, a designated beneficiary is eligible to receive the total sum of the initial investment and investment earnings to be used for an eligible expenditure. The designated beneficiary may submit a claim for benefits subject to the following conditions:
The designated beneficiary must be a resident of the state of Washington;
The designated beneficiary must have successfully completed a financial education course or a comparable financial education offering as determined by the treasurer; and
The designated beneficiary must be facing financial hardship.
If a designated beneficiary is deceased before submitting a valid claim or does not submit a valid claim before the designated beneficiary's 31st birthday, such accounting shall be credited back to the assets of the trust.
Subject to federal and state laws governing the disclosure of confidential information related to designated beneficiaries, the treasurer and the Washington health care authority shall enter into a memorandum of understanding to establish information-sharing practices in order to carry out the purposes of this chapter.
On or before the first day of September in each year, beginning September 1, 2025, the health care authority shall inform the treasurer of the number of designated beneficiaries born in the prior fiscal year. Promptly thereafter, the treasurer shall submit to the office of financial management a calculation of the total amount required to deposit to the trust in an amount equal to $3,200 per designated beneficiary born in the prior fiscal year.
The treasurer may receive gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the Washington future fund trust fund, and the treasurer may expend the gifts, grants, and endowments according to their terms.
Trust assets are not considered assets for purposes of determining an individual's eligibility for assistance under any program administered by the department of social and health services.
The treasurer may adopt rules under chapter 34.05 RCW for the implementation of this chapter.
This section adds a new section to an existing chapter 74.09. Here is the modified chapter for context.
The authority must enter into a data-sharing agreement with the office of the state treasurer to share the necessary data to facilitate the Washington future fund trust fund under chapter 43.--- RCW (the new chapter created in section 15 of this act). To effectuate this agreement, the authority must retain client eligibility records for children born under apple health until they turn 31 years old.