South Carolina General Assembly
126th Session, 2025-2026

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S. 420

STATUS INFORMATION

General Bill
Sponsors: Senator Young
Document Path: SR-0223KM25.docx

Introduced in the Senate on March 5, 2025
Introduced in the House on February 26, 2026
Last Amended on May 13, 2026
Passed by the General Assembly on May 14, 2026

Summary: Investment of Funds by Political Subdivisions

HISTORY OF LEGISLATIVE ACTIONS

Date Body Action Description with journal page number
3/5/2025 Senate Introduced and read first time (Senate Journal-page 15)
3/5/2025 Senate Referred to Committee on Finance (Senate Journal-page 15)
2/18/2026 Senate Committee report: Favorable with amendment Finance (Senate Journal-page 7)
2/23/2026 Scrivener's error corrected
2/24/2026 Senate Committee Amendment Adopted (Senate Journal-page 13)
2/24/2026 Senate Read second time (Senate Journal-page 13)
2/24/2026 Senate Roll call Ayes-44 Nays-0 (Senate Journal-page 13)
2/25/2026 Senate Read third time and sent to House (Senate Journal-page 15)
2/26/2026 House Introduced and read first time (House Journal-page 15)
2/26/2026 House Referred to Committee on Ways and Means (House Journal-page 15)
5/6/2026 House Committee report: Favorable with amendment Ways and Means (House Journal-page 11)
5/12/2026 House Debate adjourned (House Journal-page 81)
5/13/2026 House Amended (House Journal-page 34)
5/13/2026 House Read second time (House Journal-page 34)
5/13/2026 House Roll call Yeas-104 Nays-3 (House Journal-page 50)
5/14/2026 House Read third time and returned to Senate with amendments (House Journal-page 7)
5/14/2026 Senate Concurred in House amendment and enrolled (Senate Journal-page 19)
5/15/2026 Ratified R 226
5/19/2026 Signed By Governor

View the latest legislative information at the website

VERSIONS OF THIS BILL

3/5/2025
2/18/2026
2/23/2026
2/24/2026
5/6/2026
5/13/2026

NOTE: THIS IS A TEMPORARY VERSION. THIS DOCUMENT WILL REMAIN IN THIS VERSION UNTIL FINAL APPROVAL BY THE LEGISLATIVE COUNCIL.

(R226, S420)

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.

Be it enacted by the General Assembly of the State of South Carolina:

Investment in certain US corporate-issued debt instruments authorized

SECTION 1.    Section 6-5-10 of the S.C. Code is amended by adding:

(9)(a) A qualified retiree post-employment benefits trust may invest in notes, bonds, debentures, or other debt instruments issued by a United States corporation, provided that the instruments are rated investment grade by at least two of the following nationally recognized statistical rating organizations: S&P Global Ratings, Moody's Investors Service, and Fitch Ratings. The lowest rating assigned by any of the rating organizations shall control. Further, if an instrument held pursuant to this item is subsequently downgraded below investment grade by any such rating organization, the governing body of the political subdivision shall take prudent action within a reasonable period of time to address such downgrade, consistent with its fiduciary duties.

(b) Assets invested pursuant to this item must be separately accounted for and shall not be commingled with other funds of the political subdivision for purposes of investment authority under this section.

(c) Notwithstanding any other provision of this section, the investment authority provided in this item applies exclusively to assets held in a qualified retiree post-employment benefits trust and shall not apply to any other funds of a political subdivision.

(d) For purposes of this item, a qualified retiree post-employment benefits trust means a trust to provide for the employer costs of retiree post-employment benefits for retired employees of political subdivisions of the State.

Severability

SECTION 2.    If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.

Time effective

SECTION 3.    This act takes effect upon approval by the Governor.

Ratified the 15th day of May, 2026.

______________________________________________________________________

President of the Senate

_____________________________________________________________________

Speaker of the House of Representatives

Approved the _____________ day of _________________________________________2026.

____________________________________________________________________

Governor

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This web page was last updated on May 15, 2026 at 4:57 PM