2025 -- S 0865

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LC001707

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

     RELATING TO PUBLIC FINANCE -- STATE INVESTMENT COMMISSION

     Introduced By: Senators Vargas, Urso, LaMountain, Bissaillon, DiPalma, Lawson,
Britto, Appollonio, and Tikoian

     Date Introduced: March 21, 2025

     Referred To: Senate Finance

     (General Treasurer)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 35-10 of the General Laws entitled "State Investment Commission"

is hereby amended by adding thereto the following section:

     35-10-16. Capital access initiative.

     (a) On or before January 1, 2026, the commission shall adopt a policy to create and

implement a capital access initiative intended to engage traditionally disadvantaged investment

managers with underrepresented backgrounds to the greatest extent feasible, consistent with sound

investment policy and fiduciary prudence. This policy shall include quantifiable goals for the

ongoing development and expansion of the capital access initiative, particularly as it relates to

increasing the participation of a broader range of investment managers in the stewardship of state

pension fund assets.

     (b) Through the capital access initiative, the commission and the office of the general

treasurer shall take affirmative steps to remove any barriers to the equal participation of

underrepresented investment managers so long as such participation is consistent with sound

investment policy and fiduciary prudence. Such affirmative steps shall include, but not be limited

to, evaluating whether current investment policies impose quantitative or qualitative restrictions

such as requirements for a minimum track record length or assets under management, or whether

they overlook unique investment strategies and perspectives that could enhance pension fund

performance.

     (c) It shall be the goal of the commission that not less than ten percent (10%) of investment

managers managing the state pension fund shall be qualified through the capital access initiative.

     (d) Beginning in fiscal year 2027, the general treasurer shall prepare a report detailing its

progress toward achieving the policies and goals outlined in this section to the commission for its

approval within six (6) months of the end of the fiscal year. Upon approval by the commission, the

general treasurer shall transmit the report to the speaker of the house of representatives, the

president of the senate and the chairpersons of the house and senate finance committees. Such

report shall include documentation related to all participants in the capital access initiative.

     (e) Participation in the capital access initiative shall be limited to underrepresented

investment managers. For purposes of this section, an “underrepresented investment manager”

shall include, but is not limited to, a qualified investment adviser that is:

     (1) At least fifty-one percent (51%) owned by one or more minorities or women or, in the

case of a publicly owned business, at least fifty-one percent (51%) of the stock which is owned by

one or more minorities or women; and/or

     (2) Whose management and daily business operations are controlled by one or more such

individuals.

     (f) For the purposes of this section, the term “minority” shall have the same meaning as in

§ 37-14.1-3.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO PUBLIC FINANCE -- STATE INVESTMENT COMMISSION

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     This act would require the state investment commission to create a capital access initiative

to expand potential investment opportunities for the state’s pension fund and engage qualified but

traditionally underrepresented investment managers.

     This act would take effect upon passage.

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