South Carolina 2025-2026 Regular Session Status: Enacted

S 420 — Investment of Funds by Political Subdivisions

Last action — Effective date 05/19/26

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 05, 2025. Enacted.

Signed by Governor Henry McMaster (Republican) on May 19, 2026.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

The bill allows certain trusts to invest in investment-grade corporate debt.

This bill updates South Carolina law to permit qualified retiree post-employment benefits trusts to invest in investment-grade corporate debt. It also establishes specific requirements and limitations for these investments.

What this means for you
  • Workers: This means potential improvements in the management of funds that support retiree benefits.

Summary

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 TITLE

Bill Text

What changed in the latest version

2 added · 35 removed

Plain-language change summary

The recent amendment to Bill S 420 made a specific change to the rules regarding how a qualified retiree post-employment benefits trust can invest. It removed a previous section of the law and added a new clause that allows investments in debt instruments issued by U.S. corporations, as long as those instruments are properly rated. This change is significant because it expands the investment options available for retiree trusts, potentially increasing their financial returns and providing better benefits for retirees.

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Previous
Latest
2025-2026 Bill 420 Text of Previous Version (Feb.
2025-2026 Bill 420 Text of Previous Version (Mar.
18, 2026) - South Carolina Legislature Online South Carolina General Assembly126th Session, 2025-2026Bill 420Indicates Matter StrickenIndicates New Matter(Text matches printed bills.
05, 2025) - South Carolina Legislature Online South Carolina General Assembly126th Session, 2025-2026Bill 420Indicates Matter StrickenIndicates New Matter(Text matches printed bills.
Document has been reformatted to meet World Wide Web specifications.) Indicates Matter Stricken Indicates New Matter   Committee Report February 18, 2026   S.
Document has been reformatted to meet World Wide Web specifications.)                 A bill   TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 6-5-10, RELATING TO AUTHORIZED INVESTMENTS BY POLITICAL SUBDIVISIONS SO AS TO ALLOW A QUALIFIED RETIREE-POST EMPLOYMENT BENEFIT TRUST MAINTAINED FOR THE BENEFIT OF POLITICAL SUBDIVISION RETIREES TO INVEST IN CERTAIN CORPORATE DEBT ISSUED BY UNITED STATES CORPORATIONS.
420   Introduced by Senator Young   S.
Printed 2/18/26--S.
Read the first time March 5, 2025   ________   The committee on Senate Finance To whom was referred a Bill (S.
420) to amend the South Carolina Code of Laws by amending Section 6-5-10, relating to authorized investments by political subdivisions so as to allow a qualified retiree-post, 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 1, by striking Section 6-5-10(9) and inserting:
    (9) 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 in general rating categoriesinvestment grade by no fewer than two nationally recognized credit rating organizations.
For purposes of this subsection, 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.
Renumber sections to conform.
Amend title to conform.
  HARVEY PEELER for Committee.
  _______                 A bill   TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 6-5-10, RELATING TO AUTHORIZED INVESTMENTS BY POLITICAL SUBDIVISIONS SO AS TO ALLOW A QUALIFIED RETIREE-POST EMPLOYMENT BENEFIT TRUST MAINTAINED FOR THE BENEFIT OF POLITICAL SUBDIVISION RETIREES TO INVEST IN CERTAIN CORPORATE DEBT ISSUED BY UNITED STATES CORPORATIONS.
----XX---- This web page was last updated on February 18, 2026 at 08:25 PM
----XX---- This web page was last updated on March 05, 2025 at 02:51 PM
View plain text versions (7)

Action History

  1. Effective date 05/19/26

  2. Act No. 223

  3. Signed By Governor

  4. Ratified R 226

  5. Concurred in House amendment and enrolled

  6. Read third time and returned to Senate with amendments

  7. Roll call Yeas-104 Nays-3

  8. Read second time

  9. Amended

  10. Debate adjourned

  11. Committee report: Favorable with amendment Ways and Means

  12. Referred to Committee on Ways and Means

  13. Introduced and read first time

  14. Read third time and sent to House

  15. Roll call Ayes-44 Nays-0

  16. Read second time

  17. Committee Amendment Adopted

  18. Scrivener's error corrected

  19. Committee report: Favorable with amendment Finance

  20. Referred to Committee on Finance

  21. Introduced and read first time

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 169 not signed on · 3 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (169)

169 members have not signed on to this bill.

Show all 169 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passage of Bill

Passed 104 Yea · 3 Nay · 17 Other
Party YeaNayPresentNot Voting
Unaffiliated 1003016
Republican 2000
Democrat 1001
Total 1033017
% of votes cast 84%2%0%14%
How each member voted (123)
Member Party Vote
Brittain, T. Case, Jr. — Yea
Representative Luke S. Rankin — Yea
Henderson-Myers, Rosalyn D. — Yea
Johnson, Jeffrey E. — Yea
Johnson, Jermaine L., Sr. — Not Voting
Representative Adam L. Duncan — Yea
Representative Annie E. McDaniel — Yea
Representative April Cromer — Yea
Representative Beth E. Bernstein — Not Voting
Representative Bill Taylor — Yea
Representative Brandon Guffey — Nay
Representative Brandon L. Cox — Not Voting
Representative Brandon Newton — Yea
Representative Bruce W. Bannister — Yea
Representative Cally R. "Cal" Forrest, Jr. — Yea
Representative Carl L. Anderson — Yea
Representative Chandra E. Dillard — Yea
Representative Charles V. Hartz — Yea
Representative Chris Wooten — Not Voting
Representative Christopher R. "Chris" Hart — Yea
Representative Cody T. Mitchell — Yea
Representative Courtney S. Waters — Yea
Representative Craig A. Gagnon — Yea
Representative Daniel Gibson — Yea
Representative David Martin — Yea
Representative David R. Hiott — Yea
Representative David Vaughan — Yea
Representative Dennis C. Moss — Yea
Representative Dianne Mitchell — Yea
Representative Donald G. "Don" Chapman — Yea
Representative Donald Ryan McCabe, Jr. — Yea
Representative Elizabeth "Spencer" Wetmore — Yea
Representative Fawn M. Pedalino — Yea
Representative Gary S. Brewer, Jr. — Not Voting
Representative Gil Gatch — Not Voting
Representative Gilda Cobb-Hunter — Yea
Representative Greg Ford — Yea
Representative Hamilton R. Grant — Yea
Representative Harriet A. Holman — Yea
Representative Heath Sessions — Yea
Representative Heather Ammons Crawford — Yea
Representative Heather Bauer — Yea
Representative J. David Weeks — Not Voting
Representative J. Todd Rutherford — Yea
Representative JA Moore — Not Voting
Representative Jackie E. "Coach" Hayes — Yea
Representative Jackie R. Terribile — Yea
Representative James E. Teeple — Yea
Representative James Mikell "Mike" Burns — Yea
Representative Jeff Bradley — Nay
Representative Jerry N. Govan, Jr. — Not Voting
Representative John Gregory "Jay" Kilmartin — Not Voting
Representative John R. McCravy III — Yea
Representative John Richard C. King — Yea
Representative John T. Lastinger, Jr. — Yea
Representative Jordan S. Pace — Yea
Representative Joseph M. "Joe" Bustos — Yea
Representative Joseph S. "Joe" White — Not Voting
Representative Josiah Magnuson — Nay
Representative Justin T. Bamberg — Yea
Representative Kambrell H. Garvin — Yea
Representative Kathy Landing — Yea
Representative Keishan M. Scott — Yea
Representative Kevin Hardee — Yea
Representative Lee Hewitt — Yea
Representative Leon D. "Doug" Gilliam — Yea
Representative Leon Howard — Not Voting
Representative Leonidas E. "Leon" Stavrinakis — Yea
Representative Lonnie Hosey — Yea
Representative Lucas Atkinson — Yea
Representative M. Brian Lawson — Yea
Representative Mark N. Willis — Yea
Representative Melissa Lackey Oremus — Yea
Representative Micajah P. "Micah" Caskey IV — Yea
Representative Michael F. Rivers, Sr. — Yea
Representative Mike M. Neese — Yea
Representative Nathan Ballentine — Yea
Representative Neal A. Collins — Yea
Representative Patrick B. Haddon — Yea
Representative Paul B. Wickensimer — Yea
Representative Paula Rawl Calhoon — Yea
Representative Phillip Bowers — Not Voting
Representative Phillip D. Lowe — Not Voting
Representative Richard Blake Sanders — Yea
Representative Richard L. "Richie" Yow — Yea
Representative Robby Robbins — Yea
Representative Robert J. "Rob" Harris — Not Voting
Representative Robert Q. Williams — Yea
Representative Robert T. Reese — Yea
Representative Roger K. Kirby — Yea
Representative Sarita L. Edgerton — Yea
Representative Seth Rose — Yea
Representative Shannon S. Erickson — Yea
Representative Steven Wayne Long — Yea
Representative Sylleste H. Davis — Yea
Representative T. Alan Morgan, Jr. — Yea
Representative Terry Alexander — Yea
Representative Thomas Beach — Yea
Representative Thomas Duval "Val" Guest, Jr. — Yea
Representative Thomas E. "Tommy" Pope — Yea
Representative Thomas F. "Tom" Hartnett, Jr. — Yea
Representative Thomas Lee Gilreath — Yea
Representative Thomas R. "Randy" Ligon — Yea
Representative Timothy A. "Tim" McGinnis — Yea
Representative Travis A. Moore — Yea
Representative W. Scott Montgomery IV — Yea
Representative Wallace H. "Jay" Jordan, Jr. — Yea
Representative Wendell G. Gilliard — Yea
Representative Wendell K. Jones — Yea
Representative William "Bill" Clyburn — Yea
Representative William "Bill" Hager — Yea
Representative William C. "Chris" Huff — Yea
Representative William H. Bailey — Yea
Representative William M. "Bill" Chumley — Not Voting
Representative William M. "Bill" Hixon — Yea
Representative William R. "Bill" Whitmire — Yea
Representative Wm. Weston J. Newton — Yea
Smith, G. Murrell, Jr. — Yea
Smith, Marvin — Yea
Jason Luck Democrat Not Voting
Tiffany R. Spann-Wilder Democrat Yea
Carla M. Schuessler Republican Yea
Stephen D. Frank Republican Yea

Official roll call →

2nd Reading

Passed 44 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 44001
Total 44001
% of votes cast 98%0%0%2%
How each member voted (45)

Official roll call →

Subjects

Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does S 420 do?
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 TITLE
Who sponsors S 420?
S 420 is sponsored by Senator Tom Young, Jr..
What is the current status of S 420?
This bill has been enacted into law. Introduced March 05, 2025. Enacted.
Where can I track S 420?
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