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SB 3014

AN ACT RELATING TO PUBLIC FINANCE -- STATE INVESTMENT COMMISSION

2026 Regular Session Introduced by Lou DiPalma and 7 co-sponsors

Create a policy to diversify Rhode Island’s pension fund managers by ensuring at least 10% are underrepresented, focusing on minority/women-owned firms.

05/26/2026 Committee recommended measure be held for further study
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Bill Summary · SB 3014

Summary of SB 3014 (Rhode Island, 2026) – AN ACT RELATING TO PUBLIC FINANCE — STATE INVESTMENT COMMISSION

Purpose and intent

  • Establish a Capital Access Initiative within the Rhode Island State Investment Commission to broaden participation in managing state pension fund assets.
  • The goal is to engage traditionally disadvantaged investment managers with underrepresented backgrounds, to enhance investment opportunities while maintaining sound investment policy and fiduciary prudence.

Key provisions and changes

  • Creation of policy: By January 1, 2027, the State Investment Commission must adopt a policy to create and implement the Capital Access Initiative. The policy must include quantifiable goals for ongoing development and expansion, especially regarding inclusion of a broader range of investment managers in pension fund stewardship.
  • Barriers and access: The commission and the Office of the General Treasurer must take affirmative steps to remove barriers to equal participation for underrepresented investment managers, provided such participation remains consistent with prudent fiduciary standards. This includes evaluating current investment policies for restrictions (e.g., minimum track records, assets under management) that may exclude diverse managers and considering alternative strategies and perspectives.
  • Participation target: The initiative aims for not less than 10% of investment managers managing the state pension fund to be qualified through the Capital Access Initiative.
  • Reporting and accountability: Beginning in fiscal year 2028, the General Treasurer must prepare and submit a progress report to the Commission within six months after the end of the fiscal year. Upon Commission approval, the report is transmitted to the Speaker of the House, the President of the Senate, and the chairs of the House and Senate Finance Committees. The report must include documentation related to all participants in the initiative.
  • Eligibility and scope: Participation is limited to underrepresented investment managers. An “underrepresented investment manager” is defined as:
    • At least 51% owned by minorities or women (or, if publicly owned, at least 51% of the stock owned by minorities or women); and/or
    • Management and daily operations controlled by minorities or women.
  • Definition: The term “minority” aligns with the definition used in Rhode Island General Laws § 37-14.1-3.

Who would be affected

  • State pension fund investment operations and governance, specifically the State Investment Commission and the Office of the General Treasurer.
  • Investment managers seeking to participate in Rhode Island’s pension fund management, with a focus on minority- and women-owned firms and managers with diverse leadership.
  • Stakeholders monitoring fiduciary performance and diversity practices (legislative bodies, a future reporting audience).

Procedural and timeline details

  • Effective date: The act takes effect upon passage.
  • Policy deadline: By January 1, 2027, the Commission must adopt the Capital Access Initiative policy.
  • Target feasibility and measurement: A minimum 10% participation target for managers under the initiative.
  • Reporting timeline: Starting in fiscal year 2028, annual progress reporting within six months after year-end, to be approved by the Commission and transmitted to legislative leadership and finance committees.
  • Compliance and scope: Initiative must align with sound investment policy and fiduciary prudence; removes barriers only to the extent consistent with prudent investment standards.

Potential impact and considerations

  • Pros: Promotes diversity and inclusion in state pension fund management, potentially expanding investment perspectives and opportunities for underrepresented managers; may foster broader industry participation and economic empowerment.
  • Cons: Requires careful design to ensure fiduciary duties are not compromised; must establish clear, objective metrics to avoid unintended risk or lower performance.
  • Oversight: Ongoing legislative and executive oversight through required reporting and Commission approval.

This summary covers the bill’s main aims, key provisions, affected parties, and timeline. If you want, I can provide a plain-language comparison with current law or draft potential questions for a legislative hearing.

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

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