FUNDS/FUNDING: (Constitutional Amendment) Authorizes the investment of state funds in digital assets and precious metals (EG NO IMPACT See Note)

2026 Regular Session Introduced by Mark Wright

Louisiana would be allowed to invest public funds in digital assets and precious metals if voters approve the constitutional amendment.

Read by title, returned to the calendar.

Purpose and Intent

This bill proposes a constitutional amendment to Louisiana’s Constitution, authorizing the investment of state funds in digital assets and precious metals.

It would add a new authorized use under Article VII, Section 14(B) of the Constitution, allowing the state to invest public funds in specified digital and precious metal assets.

Key Provisions and Changes

Amends the Constitution to include a new item (16) under the list of authorized uses for public funds:

(16) The investment of state funds in digital assets and precious metals.

The amendment does not alter the existing prohibitions on loaning, donating, or pledging public funds, nor does it change the prohibition on the state and political subdivisions purchasing stock in corporations.

The amendment would be submitted to the voters for approval at the statewide election on November 3, 2026.

Who/What Would Be Affected

State financial management and investment practices:

State agencies, the Treasurer, and any entities authorized to manage or invest public funds would gain explicit authority to invest portions of state funds in digital assets (e.g., cryptocurrencies or other blockchain-based assets) and precious metals.

Public funds previously governed by restrictions:

The existing constitutional framework that restricts how public funds can be used remains in place, except it would now include the ability to invest in these new asset classes within the amended framework.

Procedural and Timeline Details

Constitutional amendment process:

The proposal requires approval by two-thirds of members elected to each house of the Louisiana Legislature.
If passed by the Legislature, the amendment would be put to a statewide ballot for voters to approve or reject.

Election timing:

The proposed amendment is set to be submitted to voters at the statewide election on November 3, 2026.

Ballot language:

The ballot question would ask voters: "Do you support an amendment to allow the investment of state funds in digital assets and precious metals? (Amends Article VII, Section 14(B))."

Practical Considerations (Contextual Overview)

Potential benefits:

Diversification of state investment portfolios.
Access to potentially higher returns or hedging opportunities through asset classes not previously authorized.

Potential risks and considerations:

Volatility and liquidity risks associated with digital assets.
Regulatory, security, custody, and operational risks of holding digital assets.
Policy decisions around risk tolerance, diversification limits, auditing, and oversight would be important once empowered to invest.
Safeguards, accounting treatment, and potential impact on state credit and fiscal stability would require careful implementation.

Summary

HB 603 seeks to expand Louisiana’s constitutional authorization for public fund investments by explicitly permitting investments in digital assets and precious metals. If approved by voters in the November 3, 2026 election, the state would gain a new tool for managing its funds, alongside existing allowed uses, with corresponding need for governance, risk management, and accountability measures to govern such investments.

Bill