Investment of Funds by Political Subdivisions AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 6-5-10, RELATING TO AUTHORIZED INVESTMENTS OF FUNDS BY POLITICAL SUBDIVISIONS, SO AS TO AUTHORIZE CERTAIN INVESTMENT-GRADE CORPORATE DEBT INVESTMENTS BY QUALIFIED RETIREE POST-EMPLOYMENT BENEFITS TRUSTS AND TO PROVIDE REQUIREMENTS AND LIMITATIONS FOR SUCH INVESTMENTS. - RATIFIED TITLEView full text View Vote History View Fiscal Impact03/05/25Senate Introduced and read first time (Senate Journal-page 15)03/05/25Senate Referred to Committee on Finance (Senate Journal-page 15)02/18/26Senate Committee report: Favorable with amendment Finance (Senate Journal-page 7)02/23/26 Scrivener's error corrected02/24/26Senate Committee Amendment Adopted (Senate Journal-page 13)02/24/26Senate Read second time (Senate Journal-page 13)02/24/26Senate Roll call Ayes-44 Nays-0 (Senate Journal-page 13)02/25/26Senate Read third time and sent to House (Senate Journal-page 15)02/26/26House Introduced and read first time (House Journal-page 15)02/26/26House Referred to Committee on Ways and Means (House Journal-page 15)05/06/26House Committee report: Favorable with amendment Ways and Means (House Journal-page 11)05/12/26House Debate adjourned (House Journal-page 81)05/13/26House Amended (House Journal-page 34)05/13/26House Read second time (House Journal-page 34)05/13/26House Roll call Yeas-104 Nays-3 (House Journal-page 50)05/14/26House Read third time and returned to Senate with amendments (House Journal-page 7)05/14/26Senate Concurred in House amendment and enrolled (Senate Journal-page 19)05/15/26 Ratified R 22605/19/26 Signed By Governor06/05/26 Effective date 05/19/2606/03/26 Act No. 223
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Progress
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- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Overview
This bill amends South Carolina law to allow qualified retiree post-employment benefit trusts, maintained for political subdivision retirees, to invest in certain investment-grade corporate debt issued by U.S. corporations. The bill establishes requirements for these investments, including rating standards from multiple credit rating agencies and separate accounting for these assets. It also specifies that these investments are limited to assets held within the designated trust.
Key provisions
- Allows qualified retiree post-employment benefit trusts to invest in investment-grade corporate debt issued by U.S. corporations.
- Specifies that investments must be rated investment grade by at least two nationally recognized credit rating organizations.
- Requires the use of at least two nationally recognized statistical rating organizations (S&P, Moody’s, Fitch).
- Establishes separate accounting for these investments.
- Defines a ‘qualified retiree post-employment benefits trust’ for the purpose of this legislation.
- Requires action to address downgrades below investment grade.
- Limits investment authority to assets held within the designated trust.
Who is affected
- Political subdivisions (cities, counties, etc.)
- Qualified retiree post-employment benefit trusts
- Retirees of political subdivisions
- Investment-grade corporate debt issuers
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