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HB 7252

AN ACT RELATING TO PUBLIC FINANCE -- STATE INVESTMENT COMMISSION

2026 Regular Session Introduced by Karen Alzate and 9 co-sponsors

Rhode Island would create a Capital Access Initiative to ensure at least 10% of state pension fund managers come from underrepresented groups, starting with 2027 policy adoption an

04/29/2026 Committee recommended measure be held for further study
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Bill Summary · HB 7252

Summary of HB 7252 (Rhode Island, 2026)

Title

AN ACT RELATING TO PUBLIC FINANCE -- STATE INVESTMENT COMMISSION

Purpose and Intent

  • Create a new policy within the Rhode Island State Investment Commission to establish a Capital Access Initiative.
  • Purpose: Increase participation of traditionally disadvantaged or underrepresented investment managers in managing state pension fund assets, while maintaining sound investment policy and fiduciary prudence.
  • Aligns pension fund management with broader efforts to diversify investment managers and expand access for underrepresented groups.

Key Provisions

Section 35-10-16. Capital Access Initiative

  1. Policy Adoption and Timing

    • By January 1, 2027, the State Investment Commission must adopt a policy to establish and implement the Capital Access Initiative.
    • The policy must include quantifiable goals for ongoing development and expansion, focusing on increasing participation of a broader range of investment managers in state pension fund stewardship.

  2. Affirmative Steps to Remove Barriers

    • The Commission and the Office of the General Treasurer must take affirmative steps to remove barriers to equal participation by underrepresented investment managers.
    • Steps may include evaluating current investment policies for restrictive minimum track records, assets under management (AUM), or other qualitative/quantitative barriers.
    • Must consider whether alternative investment strategies and perspectives could improve pension fund performance.

  3. Participation Goal

    • The initiative aims for not less than 10% of investment managers managing the state pension fund to be qualified through the Capital Access Initiative.

  4. Reporting and Accountability

    • Beginning in Fiscal Year 2028, the Treasurer must prepare a report detailing progress toward the policy goals.
    • The report must be submitted to the State Investment Commission for approval within six months after the end of the fiscal year.
    • Upon commission approval, the Treasurer must transmit the report to:
      • Speaker of the Rhode Island House of Representatives
      • President of the Rhode Island Senate
      • Chairs of the House and Senate Finance Committees
    • The report must include documentation related to all participants in the Capital Access Initiative.

  5. Eligibility and Participation

    • Participation is limited to underrepresented investment managers.
    • An “underrepresented investment manager” is defined as:
      • A qualified investment adviser at least 51% owned by minorities or women (or, for publicly owned businesses, at least 51% of stock owned by minorities or women); and/or
      • Management and daily operations controlled by one or more such individuals.

  6. Definition of Minority

    • The term “minority” has the meaning specified in Rhode Island law § 37-14.1-3 (reference point for determining minority status).

Section 2. Effective Date

  • The act takes effect upon passage.

Who Is Affected

  • Rhode Island State Pension Fund management and governance:
    • State Investment Commission
    • Office of the General Treasurer
  • Investment managers:
    • Traditional and nontraditional investment firms seeking to manage pension funds
    • Specifically, underrepresented managers (as defined) seeking inclusion in state pension fund portfolios
  • State policymakers and oversight bodies:
    • House Finance Committee
    • Senate Finance Committee
    • Speaker and President of their respective chambers

Procedural and Timeline Highlights

  • January 1, 2027: Policy to establish the Capital Access Initiative must be adopted.
  • Fiscal Year 2028: First required progress report due to the Commission for approval within six months after year-end.
  • Post-approval: Treasurer must transmit the report to key legislative leaders and finance committee chairs.
  • Effective date: Upon passage (immediate effect for enforcement and reporting requirements once enacted).

Potential Impact and Considerations

  • Diversification of pension fund managers could broaden opportunity and promote inclusion of minority- and women-owned investment firms.
  • The 10% target provides a measurable benchmark, though enforcement mechanisms and specific implementation details (e.g., contract procurement, procurement processes, and performance metrics) are not specified in the bill.
  • Balancing fiduciary prudence with access goals will be central; the policy requires alignment with sound investment policy and long-term pension fund performance.
  • Transparency through annual reporting is mandated, increasing accountability to lawmakers and the public.

Compiled from official sources — confirm details with the bill’s official record.

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