House committee of the whole advances bill letting local governments invest in equities; lawmakers debate risk and oversight

The House advanced Senate File 145 out of the committee of the whole on Feb. 24. The bill would allow local governments (counties, cities and special districts) to invest public funds in equities and mutual funds subject to investment policies adopted by the State Loan and Investment Board and other statutory limits; the standing committee amendment requires local governments to establish an investing board.

Supporters including Representative Kelly and Vice Chair Pendergraft argued the bill gives communities another tool to earn inflation‑beating returns on long‑term reserves, potentially helping with infrastructure projects or alleviating future tax pressures. Representative Kelly said the statute would permit "safe, conservative investments" in mutual funds and noted protections already exist in State Loan and Investment Board policy.

Opponents and cautious members — including Representative Larson Lloyd and Representative Lane — raised concerns about local capacity, transparency and risk. Larson Lloyd warned smaller jurisdictions may lack expertise and emphasized accountability and fiduciary duties. Members asked whether reserves, minimum holding periods or disclosure requirements should be added; Representative Bratton suggested adding transparency and reporting. Several members said the option to remain in the state's pooled options (WildStar programs) remains available.

The committee of the whole adopted the standing committee amendment and recommended passage. Members repeatedly noted that the bill does not mandate municipalities to invest but expands available options and that the State Loan and Investment Board policies and other safeguards would apply.