H 4619 Session 112 (1997-1998)
H 4619 General Bill, By Wilkins, Altman, Battle, Bauer, Bowers, T. Brown,
Campsen, Clyburn, Dantzler, Delleney, Easterday, Edge, J.G. Felder, Hamilton,
Harrell, Harrison, Haskins, Hawkins, Hinson, Inabinett, B.L. Jordan, Kirsh,
Klauber, Knotts, Koon, Lanford, Littlejohn, Lloyd, Mason, McGee, McKay, Meacham,
Miller, Moody-Lawrence, Quinn, Riser, Robinson, Sandifer, Scott, Seithel,
Sharpe, Simrill, D. Smith, Whipper, Wilder, Woodrum and Young-Brickell
A BILL TO AMEND TITLE 9, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE
VARIOUS STATE RETIREMENT SYSTEMS, BY ADDING CHAPTER 14, THE STATE RETIREMENT
SYSTEMS INVESTMENT SAFEGUARDS ACT, SO AS TO AUTHORIZE THE INVESTMENT AND
REINVESTMENT OF FUNDS OF THE VARIOUS STATE RETIREMENT SYSTEMS IN EQUITY
SECURITIES OF AMERICAN CORPORATIONS THAT ARE REGISTERED ON A NATIONAL
SECURITIES EXCHANGE OR QUOTED THROUGH THE NATIONAL ASSOCIATION OF SECURITIES
DEALERS AUTOMATIC QUOTATIONS SYSTEMS, TO LIMIT TOTAL EQUITY INVESTMENTS TO NO
MORE THAN FORTY PERCENT OF THE MARKET VALUE OF THE ASSETS OF A RETIREMENT
SYSTEMS, TO ESTABLISH THE STATE RETIREMENT SYSTEMS INVESTMENT PANEL AND
PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES, INCLUDING THE DELEGATION OF
ITS FUNCTIONS OR THOSE OF THE STATE BUDGET AND CONTROL BOARD, TO PROVIDE FOR
THE DEVELOPMENT AND IMPLEMENTATION OF AN ANNUAL INVESTMENT PLAN AND THE DUTIES
OF THE STATE BUDGET AND CONTROL BOARD AND THE STATE RETIREMENT SYSTEMS
INVESTMENT PANEL IN DEVELOPING AND IMPLEMENTING THE PLAN, TO PROVIDE REPORTING
AND DISCLOSURE REQUIREMENTS, TO PRESCRIBE THE DUTIES AND RESPONSIBILITIES OF
FIDUCIARIES WITH RESPECT TO THE RETIREMENT SYSTEM, INCLUDING MATTERS RELATING
TO CONFLICTS OF INTEREST, EDUCATION REQUIREMENTS, AND INSURANCE AND PROVIDE
FOR CIRCUMSTANCES IN WHICH THE FREEDOM OF INFORMATION ACT DOES NOT APPLY WITH
RESPECT TO DELIBERATION ON THE ANNUAL INVESTMENT PLAN; TO AMEND SECTION
9-1-1310, RELATING TO THE STATE BUDGET AND CONTROL BOARD AS TRUSTEE OF THE
STATE RETIREMENT SYSTEM AND AUTHORIZED INVESTMENTS, SO AS TO SPECIFICALLY TO
AUTHORIZE THE FUNDS OF THE RETIREMENT SYSTEM TO BE INVESTED IN EQUITY
SECURITIES, AND TO PROVIDE FOR THE SEVERABILITY OF THIS ACT IF ANY PART IS
HELD INVALID.
02/11/98 House Introduced and read first time HJ-63
02/11/98 House Referred to Committee on Ways and Means HJ-64
03/19/98 House Committee report: Favorable with amendment Ways
and Means HJ-51
03/24/98 House Member(s) added as co-sponsor(s): Rep(s) Knotts HJ-13
03/25/98 House Member(s) added as co-sponsor(s): Rep(s) Robinson HJ-29
03/25/98 House Debate adjourned until Thursday, March 26, 1998 HJ-35
03/26/98 House Member(s) added as co-sponsor(s): Rep(s) Bowers HJ-8
03/26/98 House Recommitted to Committee on Ways and Means HJ-16
COMMITTEE REPORT
March 19, 1998
H. 4619
Introduced by Reps. Wilkins, D. Smith, Lanford, Haskins, Harrell,
Campsen, Whipper, Kirsh, Mason, Meacham, Young-Brickell,
Miller, Wilder, Koon, Littlejohn, Bauer, Easterday, Sandifer, Seithel,
Hamilton, T. Brown, Hinson, Delleney, Dantzler, Woodrum, Jordan,
Moody-Lawrence, McGee, McKay, Quinn, Simrill, Altman, Felder,
Sharpe, Edge, Clyburn, Klauber, Inabinett, Battle, Hawkins, Lloyd,
Harrison, Riser and Scott
S. Printed 3/19/98--H.
Read the first time February 11, 1998.
THE COMMITTEE ON WAYS AND MEANS
To whom was referred a Bill (H. 4619), to amend Title 9, Code of
Laws of South Carolina, 1976, relating to the various state retirement
systems, etc., respectfully
REPORT:
That they have duly and carefully considered the same, and
recommend that the same do pass with amendment:
Amend the bill, as and if amended, Section 9-14-80, as contained
in SECTION 2, beginning on page 6, by striking items (6) and (7)
and inserting:
/(6) procedures and policies for selecting, monitoring,
compensating, and terminating investment consultants, equity
investment managers, and other necessary professional service
providers. Preference must be given to brokerage firms domiciled in
this State for conducting brokerage transactions if these brokerage
firms are able to meet the test of equal service and best execution in
the purchase and sale of authorized investments; and
(7) methods for managing the costs of the investment activities,
including a provision that annual costs for equity investing must not
exceed one percent of the amount invested in equity securities./
Renumber items to conform.
Amend title to conform.
HENRY E. BROWN, JR., for Committee.
STATEMENT OF ESTIMATED FISCAL
IMPACT
ESTIMATED FISCAL IMPACT ON GENERAL FUND
EXPENDITURES IS:
-0-
Section 9-14-110 of the bill states that the costs of administering
and operating the investment programs for the retirement systems,
including the expenses of the panel, must be paid from the investment
earnings of the several retirement systems. Therefore, there will not
be any additional cost to the General Fund of the State if this bill is
passed.
At this time the Budget and Control Board has not completed the
details to establish the operating procedures for carrying out its
responsibilities as trustees of the several retirement systems as
identified in the bill. Costs would include the investment
management fees and annual operating funds for the State Retirement
Systems Investment Panel.
The State Treasurer's Office reports that costs for providing staff to
the panel and preparing the various reports are included in the costs
related to investment fees as noted below.
Section 9-14-90 of the bill states that no more than forty percent of
the market value of the assets of a retirement system may be invested
in equity securities. According to the Treasurer's Office the
following could be expected for each ten percent of the trust funds
invested in equities:
10% of System's assets, approximately
$15 billion, invested in equities1.5 Billion
Additional earnings from equity investments*$37.5 Million
Costs related to investment fees
($1.5 Billion X .15%) $2.25 Million
Estimated new earnings to SCRS from equities$35.25 Million
*The additional earnings represent an additional return of 2.5% as
based on the comparison of the rate of return on equity investments
to fixed-income investments.
Approved By:
Frank A. Rainwater
Office of State Budget
A BILL
TO AMEND TITLE 9, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO THE VARIOUS STATE RETIREMENT
SYSTEMS, BY ADDING CHAPTER 14, THE STATE
RETIREMENT SYSTEMS INVESTMENT SAFEGUARDS ACT,
SO AS TO AUTHORIZE THE INVESTMENT AND
REINVESTMENT OF FUNDS OF THE VARIOUS STATE
RETIREMENT SYSTEMS IN EQUITY SECURITIES OF
AMERICAN CORPORATIONS THAT ARE REGISTERED ON A
NATIONAL SECURITIES EXCHANGE OR QUOTED THROUGH
THE NATIONAL ASSOCIATION OF SECURITIES DEALERS
AUTOMATIC QUOTATIONS SYSTEMS, TO LIMIT TOTAL
EQUITY INVESTMENTS TO NO MORE THAN FORTY
PERCENT OF THE MARKET VALUE OF THE ASSETS OF A
RETIREMENT SYSTEM, TO ESTABLISH THE STATE
RETIREMENT SYSTEMS INVESTMENT PANEL AND
PROVIDE FOR ITS MEMBERSHIP, POWERS, AND DUTIES,
INCLUDING THE DELEGATION OF ITS FUNCTIONS OR
THOSE OF THE STATE BUDGET AND CONTROL BOARD, TO
PROVIDE FOR THE DEVELOPMENT AND IMPLEMENTATION
OF AN ANNUAL INVESTMENT PLAN AND THE DUTIES OF
THE STATE BUDGET AND CONTROL BOARD AND THE
STATE RETIREMENT SYSTEMS INVESTMENT PANEL IN
DEVELOPING AND IMPLEMENTING THE PLAN, TO
PROVIDE REPORTING AND DISCLOSURE REQUIREMENTS,
TO PRESCRIBE THE DUTIES AND RESPONSIBILITIES OF
FIDUCIARIES WITH RESPECT TO THE RETIREMENT
SYSTEM, INCLUDING MATTERS RELATING TO CONFLICTS
OF INTEREST, EDUCATION REQUIREMENTS, AND
INSURANCE AND PROVIDE FOR CIRCUMSTANCES IN
WHICH THE FREEDOM OF INFORMATION ACT DOES NOT
APPLY WITH RESPECT TO DELIBERATIONS ON THE
ANNUAL INVESTMENT PLAN; TO AMEND SECTION
9-1-1310, RELATING TO THE STATE BUDGET AND CONTROL
BOARD AS TRUSTEE OF THE STATE RETIREMENT SYSTEM
AND AUTHORIZED INVESTMENTS, SO AS SPECIFICALLY
TO AUTHORIZE THE FUNDS OF THE RETIREMENT SYSTEM
TO BE INVESTED IN EQUITY SECURITIES, AND TO PROVIDE
FOR THE SEVERABILITY OF THIS ACT IF ANY PART IS
HELD INVALID.
Be it enacted by the General Assembly of the State of South
Carolina:
SECTION 1. The General Assembly finds that the implementation
of the amendment to Article X, Section 16 of the Constitution of this
State authorizing the investment and reinvestment of the funds of
various state-operated retirement systems in equity securities requires
the enactment of implementing legislation. By the enactment of
Chapter 14, Title 9 of the 1976 Code, the "State Retirement
Systems Investment Safeguards Act", the provisions of the
amendment and related changes are carried into effect with respect to
state-operated retirement systems for which the State Budget and
Control Board serves as the trustee.
SECTION 2. Title 9 of the 1976 Code is amended by adding:
"CHAPTER 14
State Retirement Systems Investment Safeguards
Act
Section 9-14-10. This chapter may be cited as the State
Retirement Systems Investment Safeguards Act.
Section 9-14-20. This chapter applies to the investment and
reinvestment of funds of the South Carolina Retirement System,
Retirement System for Judges and Solicitors, Retirement System for
Members of the General Assembly, Police Officers Retirement
System, and any other retirement system established by the laws of
this State for which the State Budget and Control Board serves as the
trustee.
Section 9-14-30. As used in this article or chapter, unless a
different meaning is plainly required by the context:
(1) 'Assets' means all funds, investments, and similar property of
a retirement system.
(2) 'Beneficiary' means a person, other than a participant, who is
designated by a participant or by a retirement program to receive a
benefit under the program.
(3) 'Board' means the State Budget and Control Board.
(4) 'Business with which he is associated' means a corporation,
partnership, proprietorship, firm, enterprise, franchise, association, or
organization of which the board or panel member or a related person
is a director, officer, owner, employee, agent, or holder of stock.
(5) 'Fiduciary' means a person who:
(a) exercises any authority to invest or manage assets of a
retirement system;
(b) provides investment advice for a fee or other direct or
indirect compensation with respect to assets of a system or has any
authority or responsibility to do so;
(c) is a panel member; or
(d) is a board member or trustee.
(6) 'Participant' means an individual who is or has been an
employee enrolled in a retirement program and who is or may
become eligible to receive or is currently receiving a benefit under
the program. The term does not include an individual who is no
longer an employee of an employer as defined by the laws governing
the retirement system and who has withdrawn his contributions from
the retirement system.
(7) 'Panel' means the State Retirement Systems Investment Panel.
(8) 'Related person' of an individual means:
(a) the individual's spouse or a parent or sibling of the spouse;
(b) the individual's child, sibling, or parent, or the spouse of the
individual's child, sibling, or parent;
(c) another individual residing in the same household as the
individual;
(d) a trust or estate in which an individual described in (a), (b),
or (c) has an interest;
(e) a trust or estate for which the individual has fiduciary
responsibilities; or
(f) an incompetent, ward, or minor for whom the individual has
fiduciary responsibilities.
(9) 'Retirement program' means a program of rights and
obligations which a retirement system establishes or maintains and
which, by its express terms or as a result of surrounding
circumstances:
(a) provides retirement benefits to qualifying employees and
beneficiaries; or
(b) results in a deferral of income by employees for periods
extending to the termination of covered employment or beyond.
(10) 'Retirement systems' means the South Carolina Retirement
System, Retirement System for Judges and Solicitors, Retirement
System for Members of the General Assembly, Police Officers
Retirement System, and any other retirement system established by
the laws of this State for which the State Budget and Control Board
serves as the trustee, individually or collectively as is appropriate in
the context in which the term is used.
(11) 'Trustee' means the State Budget and Control Board.
Section 9-14-40. (A) The assets of the retirement systems not
invested as authorized by Section 11-9-660 may be invested and
reinvested in equity securities of any corporation within the United
States that is registered on a national securities exchange as provided
in the Securities Exchange Act of 1934, or any successor act, or
quoted through the National Association of Securities Dealers
Automatic Quotations System, or a similar source.
(B) The investment and reinvestment of all assets of the retirement
systems must be consistent with the annual investment plan provided
for in this chapter.
Section 9-14-50. There is created the State Retirement Systems
Investment Panel, consisting of five members, one each appointed by
the Governor, State Treasurer, Comptroller General, the chairman of
the Ways and Means Committee of the House of Representatives, and
the chairman of the Senate Finance Committee. The member
appointed by the Governor shall serve as chairman. All members
appointed to the panel must possess substantial financial investment
experience. No person may be appointed or continue to serve who
is an elected or appointed officer or employee of the State or any of
its political subdivisions, including school districts. Members shall
serve for terms of two years and until their successors are appointed
and qualify, but no member may serve beyond the term of the
member of the board who appointed him. Vacancies must be filled
for the unexpired term in the manner of the original appointment.
Members shall serve without compensation, but may receive the
mileage, subsistence, and per diem authorized by law for members of
state boards, commissions, and committees.
Section 9-14-60. (A) The panel shall meet no later than May first
of each year to adopt the proposed annual investment plan for the
retirement systems for the next fiscal year. The annual investment
plan must be developed by the panel in consultation with the State
Treasurer. No later than June first of each year, the panel shall
submit the proposed plan to the board. The plan submitted to the
board by the panel is considered approved unless the board by a
majority vote of its members disapproves or amends the plan before
July first. Amendments may be made to the plan by the panel during
the fiscal year with the approval of the board.
(B) The panel shall meet at least once during each fiscal year
quarter for the purposes of reviewing the performance of investments,
assessing compliance with the annual investment plan, and
determining whether to recommend amendments to the plan to the
board. The panel shall meet at such other times as are set by the
panel or the chairman or requested by the board.
(C) The panel or board may discuss, deliberate on, and make
decisions on a portion of the annual investment plan or other related
financial or investment matters in executive session if disclosure
thereof would jeopardize the ability to implement that portion of the
plan or achieve investment objectives.
(D) A record of the board, panel, or retirement systems that
discloses discussions, deliberations, or decisions on portions of the
annual investment plan or other related financial or investment
matters is not a public record under Section 30-4-20 to the extent and
so long as its disclosure would jeopardize the ability to implement
that portion of the plan or achieve investment objectives.
(E) In addition to the other duties contained elsewhere in this
chapter, the panel may:
(1) adopt, promulgate, amend, and repeal bylaws, subject to the
approval of the board, not inconsistent with this chapter, for the
administration of its affairs; and
(2) establish advisory committees to assist and advise the panel.
Section 9-14-70. (A) The board or panel may delegate functions
that a prudent trustee or fiduciary acting in a like capacity and
familiar with those matters could properly delegate under the
circumstances. The board or panel shall exercise reasonable care,
skill, and caution in:
(1) selecting an agent;
(2) establishing the scope and terms of the delegation, consistent
with the purpose and terms of the annual investment plan; and
(3) periodically reviewing the agent's performance and
compliance with the terms of the delegation.
(B) In performing a delegated function, an agent owes a duty to the
retirement systems and to its participants and beneficiaries to comply
with the terms of the delegation and, if a fiduciary, to comply with
the duties imposed by Section 9-14-120.
(C) If the board or panel complies with subsection (A), it is not
liable to the retirement systems or to its participants or beneficiaries
for the decisions or actions of the agent to whom the function was
delegated.
(D) By accepting the delegation of a function from the board or
panel, an agent submits to the jurisdiction of the courts of this State.
(E) The board may limit the authority of the panel to delegate
functions under this section.
Section 9-14-80. (A) The board shall provide the panel with a
statement of actuarial assumptions and general investment objectives.
The board shall review the statement annually for the purpose of
affirming or changing it and advise the panel of its actions.
(B) The annual investment plan must be consistent with actions
taken by the board pursuant to subsection (A) and must include, but
is not limited to, the following components:
(1) general operational and investment policies;
(2) investment objectives and performance standards;
(3) investment strategies, which may include indexed or
enhanced indexed strategies as the preferred or exclusive strategies
for equity investing, and an explanation of the reasons for the
selection of each strategy;
(4) industry sector, market sector, issuer, and other allocations
of assets that provide diversification in accordance with prudent
investment standards, including desired rates of return and acceptable
levels of risks for each asset class;
(5) policies and procedures providing flexibility in responding
to market contingencies;
(6) procedures and policies for selecting, monitoring,
compensating, and terminating investment consultants, equity
investment managers, and other necessary professional service
providers, including provisions that allocate at least thirty percent of
the dollar volume of equity transactions to persons or firms which are
registered or licensed to engage in such investment activities in this
State and which have an office in this State; and
(7) methods for managing the costs of the investment activities.
(C) In developing the annual investment plan, the panel shall
consider among other circumstances:
(1) general economic conditions;
(2) the possible effect of inflation or deflation;
(3) the role that each investment program or activity plays
within the overall portfolio of the retirement system;
(4) needs for liquidity, regularity of income, and preservation
or appreciation of capital; and
(5) the adequacy of funding for the plan based on reasonable
actuarial factors.
(D) In developing the annual investment plan, the panel shall:
(1) diversify the investments of the retirement systems, unless
the panel reasonably determines that, because of special
circumstances, it is clearly not prudent to do so; and
(2) make a reasonable effort to verify facts relevant to the
investment of assets of the retirement systems.
Section 9-14-90. No more than forty percent of the market value
of the assets of a retirement system may be invested in equity
securities, and any increase during any fiscal year in the proportion
of the market value of the assets of a retirement system invested in
equity securities may not exceed twenty percent of the market value
of the assets of that system. The panel, with the approval of the
board, shall develop the methods used to determine compliance with
the allocations set forth in this section.
Section 9-14-100. (A) The State Treasurer's Office shall provide
staff for the panel and provide investment reports at least quarterly
during the fiscal year to the board, panel, the Speaker of the House
of Representatives, the President Pro Tempore of the Senate, and
other appropriate officials and entities.
(B) In addition to the quarterly reports provided in (A), the State
Treasurer shall provide an annual report to the board, panel, the
Speaker of the House of Representatives, the President Pro Tempore
of the Senate, and other appropriate officials and entities of the
investment status of the retirement systems. The report must contain:
(1) a description of any material interest held by any member of
the board or panel with respect to the investment and management of
assets of the system, or by a related person, in any material
transaction with the system within the last three years or proposed to
be effected;
(2) a schedule of the rates of return, net of total investment
expense, on assets of the system overall and on assets aggregated by
category over the most recent one-year, three-year, five-year, and
ten-year periods, to the extent available, and the rates of return on
appropriate benchmarks for assets of the system overall and for each
category over each period;
(3) a schedule of the sum of total investment expense and total
general administrative expense for the fiscal year expressed as a
percentage of the fair value of assets of the system on the last day of
the fiscal year, and an equivalent percentage for the preceding five
fiscal years; and
(4) a schedule of all assets held for investment purposes on the
last day of the fiscal year aggregated and identified by issuer,
borrower, or similar party to the transaction stating, if relevant, the
asset's maturity date, rate of interest, par or maturity value, number
of shares, cost, and fair value and identifying any asset that is in
default or classified as uncollectible.
Section 9-14-110. The costs of administering and operating the
investment programs for the retirement systems, including the
expenses of the panel, must be paid from the investment earnings of
those systems.
Section 9-14-120. (A) A fiduciary shall discharge investment
duties with respect to a retirement system:
(1) solely in the interests of the retirement systems, participants,
and beneficiaries;
(2) for the exclusive purpose of providing benefits to
participants and beneficiaries and paying reasonable expenses of
administering the system;
(3) with the care, skill, and caution under the circumstances then
existing which a prudent person acting in a like capacity and familiar
with those matters would use in the conduct of an activity of like
character and purpose;
(4) impartially taking into account any differing interests of
participants and beneficiaries;
(5) incurring only costs that are appropriate and reasonable; and
(6) in accordance with a good-faith interpretation of the laws
governing the retirement systems.
(B) Compliance by a fiduciary with the provisions of this chapter
must be determined in the light of facts and circumstances existing at
the time of the fiduciary's decision or action and not by hindsight.
(C) The investment decisions of the panel, board, or a fiduciary
with investment responsibility for an entire retirement system
portfolio must be evaluated not in isolation but in the context of a
retirement system portfolio as a whole and as a part of an overall
investment strategy having risks and return objectives reasonably
suited to the retirement program.
Section 9-14-130. (A) A board or panel member, any business
with which he is associated, or any related person may not directly or
indirectly engage in any transactions involving any of the retirement
systems, their funds, or investments other than those that a board or
panel member is authorized to enter into by virtue of his official
capacity on behalf of the retirement systems.
(B) Each panel member shall attend an educational program on
fiduciary responsibilities to be conducted annually by the designee of
the board.
(C) The provisions of this section are cumulative to, and not in lieu
of, any other provisions of law applicable to the panel and its
members in the performance of official duties including, but not
limited to, Chapter 13 of Title 8.
Section 9-14-140. (A) A fiduciary or any other person who
breaches a duty imposed by this chapter, including Section
9-14-130(A), is liable to the retirement systems for any losses
resulting from the breach and any profits resulting from the breach or
made by the fiduciary through use of assets of the system by the
fiduciary. The fiduciary is subject to other equitable or remedial
relief as the court considers appropriate, including removal.
(B) An agreement that exonerates a fiduciary from responsibility
or liability for a breach of duty under this chapter is void.
(C) The retirement systems may insure the fiduciary, or itself,
against liability or losses occurring because of a breach of duty under
this chapter.
(D) A fiduciary may insure against personal liability or losses
occurring because of a breach of duty under this chapter if the
insurance is purchased or provided by the individual fiduciary;
provided, however, that a fiduciary who obtains insurance pursuant
to this chapter must disclose all terms, conditions, and other
information relating to the insurance policy to the retirement
systems."
SECTION 3. Section 9-1-1310 of the 1976 Code is amended to
read:
"Section 9-1-1310. The Board shall be is
the trustee of the funds of the system, and may invest and
reinvest such the funds, subject to all the terms,
conditions, limitations, and restrictions imposed by Article
7, of Chapter 9 of Title 11, upon the investment
of sinking funds of the State, and, subject to like terms,
conditions, limitations, and restrictions, may hold, purchase,
sell, assign, transfer, and dispose of any of the securities and
investments in which any of the funds created herein
shall in this chapter have been invested, as well
as plus the proceeds of such those
investments and any moneys monies belonging to
such these funds. Additionally, and without
regard to the limitations imposed pursuant to Article 7, Chapter 9, of
Title 11, the board may invest and reinvest the funds of the system in
equity securities of a corporation within the United States that is
registered on a national securities exchange as provided in the
Securities Exchange Act, 1934, or a successor act, or quoted through
the National Association of Securities Dealers Automatic Quotations
System, or a similar service."
SECTION 4. If any provision of this act or its application to any
person or circumstance is held invalid, the invalidity does not affect
other provisions or applications of this act which can be given effect
without the invalid provision or application, and to this end the
provisions of this act are severable.
SECTION 5. Notwithstanding the provisions of Chapter 14, Title
9 of the 1976 Code, as added by this act, during the first fiscal year
in which the provisions of Chapter 14 are implemented, the State
Budget and Control Board shall establish the dates for development,
review, and approval of the annual investment plan.
SECTION 6. This act takes effect upon approval by the Governor.
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