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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 9-16-370 SO AS TO PROVIDE THAT THE STATE SHALL DEFEND THE MEMBERS OF THE RETIREMENT SYSTEM INVESTMENT COMMISSION AND COMMISSION OFFICERS AND MANAGEMENT EMPLOYEES AGAINST A CLAIM OR SUIT BASED ON THE PERFORMANCE OF THEIR OFFICIAL DUTIES, TO REQUIRE THE STATE TO INDEMNIFY THEM FOR A LOSS OR JUDGMENT INCURRED BY THEM FOR A CLAIM OR SUIT BROUGHT AGAINST THEM IN THEIR OFFICIAL OR INDIVIDUAL CAPACITIES, OR BOTH, AND TO PROVIDE FOR THEIR DEFENSE AND INDEMNIFICATION AFTER THEY LEAVE MEMBERSHIP ON OR EMPLOYMENT BY THE COMMISSION IF THE CLAIM OR SUIT ARISES BASED ON THE PERFORMANCE OF THEIR OFFICIAL DUTIES; TO AMEND SECTION 9-1-1310, AS AMENDED, RELATING TO THE DUTIES OF THE STATE BUDGET AND CONTROL BOARD AND THE RETIREMENT SYSTEM INVESTMENT COMMISSION WITH RESPECT TO THE VARIOUS STATE RETIREMENT SYSTEMS AND INVESTMENTS ALLOWED FOR THE FUNDS OF THESE SYSTEMS, SO AS TO PROVIDE FOR ADDITIONAL INVESTMENTS; TO AMEND SECTION 9-1-1340, AS AMENDED, RELATING TO CONFLICT OF INTEREST PROVISIONS WITH RESPECT TO THE RETIREMENT SYSTEM INVESTMENT COMMISSION, SO AS TO CONFORM THE PROVISIONS TO THE NATIONAL GUARD RETIREMENT SYSTEM; TO AMEND SECTION 9-10-60, RELATING TO STATE BUDGET AND CONTROL BOARD'S RESPONSIBILITIES WITH RESPECT TO THE NATIONAL GUARD RETIREMENT SYSTEM AND CONFLICT OF INTEREST PROVISIONS FOR THAT SYSTEM, SO AS TO CONFORM THESE RESPONSIBILITIES TO THE MANNER OF OPERATION OF THE OTHER STATE RETIREMENT SYSTEMS AND TO DELETE REDUNDANT PROVISIONS; TO AMEND SECTION 9-16-360, RELATING TO STANDARDS OF CONDUCT FOR FIDUCIARIES WITH RESPECT TO THE STATE RETIREMENT SYSTEMS, SO AS FURTHER TO DEFINE "INDIRECT INTEREST" AND TO ALLOW THE RETIREMENT SYSTEM INVESTMENT COMMISSION TO WAIVE THESE STANDARDS BY CONTRACT WITH CERTAIN FIDUCIARIES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 3, Chapter 16, Title 9 of the 1976 Code is amended by adding:
"Section 9-16-370. The State shall defend the members of the Retirement System Investment Commission established pursuant to this article against a claim or suit that arises out of or by virtue of their performance of official duties on behalf of the commission and must indemnify these members for a loss or judgment incurred by them as a result of the claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. The State shall defend officers and management employees of the commission against a claim or suit that arises out of or by virtue of performance of official duties unless the officer, or management employee was acting in bad faith and must indemnify these officers, and management employees for a loss or judgment incurred by them as a result of such claim or suit, without regard to whether the claim or suit is brought against them in their individual or official capacities, or both. This commitment to defend and indemnify extends to members, officers, and management employees after they have left their membership on or employment with the commission, as applicable, if the claim or suit arises out of or by virtue of their performance of official duties on behalf of the commission."
SECTION 2. Section 9-1-1310(B)(19) of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"(19)(a) purchase money mortgages received for real estate;
(b) real property;
(c) exchange traded funds;
(d) American Depository Receipts;"
SECTION 3. Section 9-1-1340 of the 1976 Code, as last amended by Act 153 of 2005, is further amended to read:
"Section 9-1-1340. Except as otherwise provided in this chapter or in Chapters 8, 9, 10, and 11 of this title, no member of or person employed by the Retirement System Investment Commission shall have any direct interest in the gains or profits of any investment made by the commission. No commission member or employee of the commission shall, directly or indirectly, for himself or as an agent in any manner use the funds of the commission except to make such current and necessary payments as are authorized by the board or commission. Nor shall any member or employee of the commission become an endorser or surety or in any manner an obligor for monies loaned or borrowed from the commission."
SECTION 4. Section 9-10-60(C) of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"(C)(1)The board is the trustee of the National Guard Retirement System and may invest and reinvest its funds in the same manner as funds of the South Carolina Retirement System are invested and reinvested pursuant to Section 9-1-1310.
(2) Except as otherwise provided in this chapter, a member of or person employed by the board may not have a direct interest in the gains or profits of any investment made by the board. A member of the board or employee of the board may not, directly or indirectly, for himself or as an agent in any manner use the funds of the system except to make the current and necessary payments authorized by the board; nor shall any member or employee of the board become an endorser or surety, or in any manner an obligor, for monies loaned or borrowed from the board. RESERVED"
SECTION 5. A. Section 9-16-360(B)(10) of the 1976 Code, as added by Act 153 of 2005, is amended to read:
"(10) not have any direct or indirect interest in the gains or profits of any system investment other than the indirect interest of a passive investor holding less than five percent of the outstanding equity in a publicly-traded security;"
B. Section 9-16-360(B) of the 1976 Code, as added by Act 153 of 2005, is amended by adding a new paragraph at the end of the subsection to read:
"The provisions of this subsection do not apply to a fiduciary described in Section 9-16-10(4)(a) and (b) if the commission elects specifically to waive this application by written contract with such a fiduciary."
SECTION 6. This act takes effect upon approval by the Governor.
This web page was last updated on Tuesday, June 23, 2009 at 2:08 P.M.