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| 4 | 4 | | |
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| 5 | 5 | | 2025 -- H 6127 |
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| 6 | 6 | | ======== |
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| 7 | 7 | | LC001705 |
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| 8 | 8 | | ======== |
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| 9 | 9 | | S T A T E O F R H O D E I S L A N D |
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| 10 | 10 | | IN GENERAL ASSEMBLY |
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| 11 | 11 | | JANUARY SESSION, A.D. 2025 |
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| 12 | 12 | | ____________ |
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| 13 | 13 | | |
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| 14 | 14 | | A N A C T |
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| 15 | 15 | | RELATING TO PUBLIC FINANCE -- STATE INVESTMENT COMMISSIO N |
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| 16 | 16 | | Introduced By: Representatives McGaw, Cortvriend, Diaz, Tanzi, and Kislak |
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| 17 | 17 | | Date Introduced: March 21, 2025 |
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| 18 | 18 | | Referred To: House Finance |
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| 19 | 19 | | (General Treasurer) |
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| 20 | 20 | | |
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| 21 | 21 | | It is enacted by the General Assembly as follows: |
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| 22 | 22 | | SECTION 1. Chapter 35-10 of the General Laws entitled "State Investment Commission" 1 |
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| 23 | 23 | | is hereby amended by adding thereto the following section: 2 |
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| 24 | 24 | | 35-10-16. Capital access initiative. 3 |
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| 25 | 25 | | (a) On or before January 1, 2026, the commission shall adopt a policy to create and 4 |
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| 26 | 26 | | implement a capital access initiative intended to engage traditionally disadvantaged investment 5 |
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| 27 | 27 | | managers with underrepresented backgrounds to the greatest extent feasible, consistent with sound 6 |
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| 28 | 28 | | investment policy and fiduciary prudence. This policy shall include quantifiable goals for the 7 |
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| 29 | 29 | | ongoing development and expansion of the capital access initiative, particularly as it relates to 8 |
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| 30 | 30 | | increasing the participation of a broader range of investment managers in the stewardship of state 9 |
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| 31 | 31 | | pension fund assets. 10 |
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| 32 | 32 | | (b) Through the capital access initiative, the commission and the office of the general 11 |
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| 33 | 33 | | treasurer shall take affirmative steps to remove any barriers to the equal participation of 12 |
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| 34 | 34 | | underrepresented investment managers so long as such participation is consistent with sound 13 |
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| 35 | 35 | | investment policy and fiduciary prudence. Such affirmative steps shall include, but not be limited 14 |
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| 36 | 36 | | to, evaluating whether current investment policies impose quantitative or qualitative restrictions 15 |
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| 37 | 37 | | such as requirements for a minimum track record length or assets under management, or whether 16 |
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| 38 | 38 | | they overlook unique investment strategies and perspectives that could enhance pension fund 17 |
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| 39 | 39 | | performance. 18 |
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| 40 | 40 | | (c) It shall be the goal of the commission that not less than ten percent (10%) of investment 19 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | LC001705 - Page 2 of 3 |
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| 44 | 44 | | managers managing the state pension fund shall be qualified through the capital access initiative. 1 |
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| 45 | 45 | | (d) Beginning in fiscal year 2027, the general treasurer shall prepare a report detailing its 2 |
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| 46 | 46 | | progress toward achieving the policies and goals outlined in this section to the commission for its 3 |
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| 47 | 47 | | approval within six (6) months of the end of the fiscal year. Upon approval by the commission, the 4 |
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| 48 | 48 | | general treasurer shall transmit the report to the speaker of the house of representatives, the 5 |
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| 49 | 49 | | president of the senate and the chairpersons of the house and senate finance committees. Such 6 |
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| 50 | 50 | | report shall include documentation related to all participants in the capital access initiative. 7 |
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| 51 | 51 | | (e) Participation in the capital access initiative shall be limited to underrepresented 8 |
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| 52 | 52 | | investment managers. For purposes of this section, an “underrepresented investment manager” 9 |
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| 53 | 53 | | shall include, but is not limited to, a qualified investment adviser that is: 10 |
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| 54 | 54 | | (1) At least fifty-one percent (51%) owned by one or more minorities or women or, in the 11 |
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| 55 | 55 | | case of a publicly owned business, at least fifty-one percent (51%) of the stock which is owned by 12 |
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| 56 | 56 | | one or more minorities or women; and/or 13 |
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| 57 | 57 | | (2) Whose management and daily business operations are controlled by one or more such 14 |
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| 58 | 58 | | individuals. 15 |
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| 59 | 59 | | (f) For the purposes of this section, the term “minority” shall have the same meaning as in 16 |
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| 60 | 60 | | § 37-14.1-3. 17 |
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| 61 | 61 | | SECTION 2. This act shall take effect upon passage. 18 |
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| 62 | 62 | | ======== |
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| 63 | 63 | | LC001705 |
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| 64 | 64 | | ======== |
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| 65 | 65 | | |
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| 66 | 66 | | |
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| 67 | 67 | | LC001705 - Page 3 of 3 |
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| 68 | 68 | | EXPLANATION |
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| 69 | 69 | | BY THE LEGISLATIVE COUNCIL |
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| 70 | 70 | | OF |
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| 71 | 71 | | A N A C T |
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| 72 | 72 | | RELATING TO PUBLIC FINANCE -- STATE INVESTMENT COMMISSION |
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| 73 | 73 | | *** |
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| 74 | 74 | | This act would require the state investment commission to create a capital access initiative 1 |
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| 75 | 75 | | to expand potential investment opportunities for the state’s pension fund and engage qualified but 2 |
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| 76 | 76 | | traditionally underrepresented investment managers. 3 |
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| 77 | 77 | | This act would take effect upon passage. 4 |
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| 78 | 78 | | ======== |
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| 79 | 79 | | LC001705 |
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| 80 | 80 | | ======== |
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