Bill
HB 6127
The bill requires the State Investment Commission and Treasurer to implement a capital access initiative to increase participation of underrepresented investment managers in state
Note on source materials
- The submitted materials include two different legislative texts (one relating to Medicaid coverage for autism and a separate Rhode Island bill). This summary focuses on the Rhode Island measure that matches the bill title and sponsors provided: an amendment to the State Investment Commission statutes to establish a “capital access initiative.”
Purpose
- To require the State Investment Commission and the Office of the General Treasurer to adopt and implement a capital access initiative that expands participation by traditionally underrepresented investment managers in managing state pension fund assets, while maintaining fiduciary prudence.
Key provisions
- Deadline to adopt policy: The Commission must adopt the capital access initiative policy on or before January 1, 2026.
- Affirmative steps to increase access: The Commission and Treasurer must take affirmative steps to remove barriers to equal participation of underrepresented investment managers, so long as doing so is consistent with sound investment policy and fiduciary duties. Examples include reviewing and potentially revising quantitative or qualitative requirements (e.g., minimum track records or assets under management) that may exclude smaller or newer managers, and recognizing nontraditional strategies or perspectives.
- Quantifiable goal: The Commission sets a goal that not less than 10% of investment managers managing the state pension fund be qualified through the capital access initiative.
- Reporting and oversight: Beginning in fiscal year 2027, the General Treasurer must prepare an annual report on progress toward the policy and goals. The Treasurer submits the report to the Commission for approval within six months after the fiscal year ends; once approved, the report is transmitted to legislative leaders and finance committee chairs. Reports must document all participants in the capital access initiative.
- Participant eligibility definition: “Underrepresented investment manager” includes, but is not limited to, advisers that are at least 51% owned by one or more minorities or women (or publicly held firms with at least 51% of stock owned by minorities/women) and whose management/daily operations are controlled by such individuals.
- Cross-reference: The term “minority” is defined by reference to existing state law (§ 37-14.1-3).
- Effective date: The act takes effect upon passage.
Who is affected
- State Investment Commission and Office of the General Treasurer (implementation, policy, oversight).
- State pension funds (potential changes to manager selection and diversification).
- Investment managers — particularly small, minority- or women-owned, and otherwise underrepresented firms — who may gain greater access to state pension fund mandates.
- Legislative leadership and finance committees (receive annual reports).
Procedural status (as provided)
- Introduced March 21, 2025; referred to House Finance.
- Sponsors: Representatives McGaw, Cortvriend, Diaz, Tanzi, Kislak.
- Committee action: 05/06/2025 — Committee recommended measure be held for further study.
Potential impacts and considerations
- Diversification & market access: May broaden the manager pool and incorporate different investment strategies, potentially improving long‑term returns or resilience.
- Fiduciary constraints: Policy explicitly conditions participation on “sound investment policy and fiduciary prudence,” so selection standards and risk oversight remain central.
- Administrative & reporting burden: Implementation will require development of policies, outreach, revised procurement/evaluation processes, and annual reporting.
- Measurability: The 10% goal is a quantifiable target; how managers are counted (e.g., by mandates, dollars managed, or number of firms) will affect implementation and outcomes.
Compiled from official sources — confirm details with the bill’s official record.
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