The bill amends Chapter 35-10 of the General Laws by introducing a new section titled "Capital access initiative." This initiative requires the State Investment Commission to adopt a policy by January 1, 2026, aimed at creating and implementing a capital access initiative to engage traditionally disadvantaged investment managers with underrepresented backgrounds. The policy will include quantifiable goals for the ongoing development and expansion of the initiative, particularly in increasing the participation of a broader range of investment managers in the stewardship of state pension fund assets.

The commission and the office of the general treasurer are mandated to take affirmative steps to remove barriers to the equal participation of underrepresented investment managers, ensuring that such efforts are consistent with sound investment policy and fiduciary prudence. These steps may include evaluating current investment policies for any quantitative or qualitative restrictions that could hinder participation.

The bill establishes a goal that not less than ten percent (10%) of investment managers managing the state pension fund shall be qualified through the capital access initiative. Beginning in fiscal year 2027, the general treasurer is required to prepare a report detailing progress toward achieving the policies and goals outlined in this section, which must be submitted to the commission for approval and then transmitted to the speaker of the house of representatives, the president of the senate, and the chairpersons of the house and senate finance committees. This report will include documentation related to all participants in the capital access initiative.

Participation in the capital access initiative is limited to underrepresented investment managers, defined as qualified investment advisers that are at least fifty-one percent (51%) owned by one or more minorities or women, or whose management and daily business operations are controlled by such individuals. The term "minority" is defined as in section 37-14.1-3. The act will take effect upon passage.