Committee advances S.420 to allow certain municipal trusts to invest in investment-grade corporate debt

A legislative committee voted 4–0 to report S.420 out favorably after staff explained the bill and a municipal representative urged its passage.

Miss Staggers, a committee clerk, told members that S.420 would authorize qualified retiree post-employment benefits trusts to invest in investment‑grade corporate debt instruments, provided those instruments hold investment-grade ratings from at least two nationally recognized credit‑rating organizations. She noted current limitations on municipal investments under South Carolina Code of Laws section 6‑5‑10.

Webster Hall, who had signed up to speak, told the committee he supported the bill because it gives local governments "a little flexibility" to invest in "qualified... high quality bonds." He said his group would support the measure with or without an amendment proposed by the treasurer's office and that the city of Aiken also backed the bill.

The chairwoman said Representative Ballantine, who had proposed an amendment regarding credit unions, was not present at the meeting and that the committee would not take up that or the treasurer's suggested amendment at this time because questions remained. A motion to report S.420 favorably was moved, seconded and carried by roll call.

Miss Staggers called the roll and members recorded unanimous support. The chairwoman announced the result: by a vote of 4 to 0, S.420 was reported out favorably; she added the bill was not amended at this meeting and that conversations could continue during the interim.

After the vote, Mr. Taylor, representing the city of Aiken, thanked the committee and said the bill "needs this" to help the city's legacy pension program and credited city manager Stuart Beatenboe for having worked on the issue. The committee then adjourned.