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A264, R278, S1094
STATUS INFORMATION
General Bill
Sponsors: Senators Leatherman, Alexander, Ryberg and Knotts
Document Path: l:\council\bills\bbm\9120htc06.doc
Introduced in the Senate on January 31, 2006
Introduced in the House on April 13, 2006
Last Amended on April 4, 2006
Passed by the General Assembly on April 20, 2006
Governor's Action: May 2, 2006, Signed
Summary: Retirement Systems Investment Commission
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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1/31/2006 Senate Introduced and read first time SJ-7
1/31/2006 Senate Referred to Committee on Finance SJ-7
3/29/2006 Senate Committee report: Favorable with amendment Finance SJ-12
3/30/2006 Scrivener's error corrected
4/4/2006 Senate Amended SJ-59
4/5/2006 Scrivener's error corrected
4/5/2006 Senate Read second time SJ-30
4/5/2006 Senate Unanimous consent for third reading on next legislative
day SJ-30
4/6/2006 Senate Read third time and sent to House SJ-6
4/13/2006 House Introduced and read first time HJ-11
4/13/2006 House Referred to Committee on Ways and Means HJ-12
4/18/2006 House Recalled from Committee on Ways and Means HJ-25
4/19/2006 House Read second time HJ-16
4/20/2006 House Read third time and enrolled HJ-29
4/27/2006 Ratified R 278
5/2/2006 Signed By Governor
5/4/2006 Copies available
5/4/2006 Effective date 05/02/06
5/9/2006 Act No. 264
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
1/31/2006
3/29/2006
3/30/2006
4/4/2006
4/5/2006
4/18/2006
(A264, R278, S1094)
AN ACT 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 THE 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:
Indemnification
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."
Investments allowed
SECTION 2. Section 9-1-1310(B)(19) of the 1976 Code, as added by Act 153 of 2005, is amended to read:
"(19)(a) purchase money mortgages received for real estate;
(b) real property;
(c) exchange traded funds;
(d) American Depository Receipts;"
Conflict of interest
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."
National Guard Retirement System
SECTION 4. Section 9-10-60(C) of the 1976 Code, as added by Act 155 of 2005, is amended to read:
"(C) RESERVED"
Standards of conduct
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 an employee or affiliate of 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. The commission shall disclose any such waivers in its quarterly report."
Time effective
SECTION 6. This act takes effect upon approval by the Governor.
Ratified the 27th day of April, 2006.
Approved the 2nd day of May, 2006.
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