Trans Legislation Tracker

SC S0583

OTHERINTRODUCED

ESG Investing

Amend The South Carolina Code Of Laws By Amending Section 9-16-10, Relating To Definitions Concerning The State Retirement Investment Commission, So As To Provide Definitions For "material", "non-pecuniary Factor" And "pecuniary Factor"; By Amending Section 9-16-30, Relating To The Delegation Of Functions By The Commission, So As To Provide Guidelines For Shareholder Engagement; By Amending Section 9-16-50, Relating To Investment And Management Considerations By The Retirement Systems Investment Trustee, So As To Require Consideration Of Pecuniary Factors And Prohibit Promotion Of Non-pecuniary Benefits Or Outcomes When Making An Investment; By Amending Section 9-16-320, Relating To The Adoption Of An Annual Investment Plan, Quarterly Reviews, Deliberations In Executive Session, And Independent Advisors, So As To Provide Guidelines For Meetings Of The Commission; By Amending Section 9-16-330, Relating To Statements Of Actuarial Assumptions And Investment Objectives, The Delegation Of Final Authority To Invest, Components Of Plans, Diversification, Verification Of Investment Facts, Analysis, And Recommendations, So As To Provide That Closing Documentation For Investments Must Contain Certification That The Investment Was Based Solely On Pecuniary Factors; By Adding Section 9-16-110 So As To Provide That The Attorney General Shall Enforce The Provisions Contained In Chapter 16, Title 9 Of The S.c. Code; By Amending Section 38-1-20, Relating To Definitions Relating To Insurance So As To Define Non-pecuniary Objective For Insurance Companies; By Adding Section 38-5-300 So As To Require Disclosure If An Insurance Company Uses Non-pecuniary Objectives And To Require Disclosure As To How An Insurance Company's Pursuit Of Non-pecuniary Objectives May Affect Its Consideration Of An Application For Coverage; By Adding Section 34-3-120 So As To Define Non-pecuniary Objective For Banking Institutions, Require Disclosure If A Banking Institution Uses Non-pecuniary Objectives, And To Require Disclosure As To How A Banking Corporation's Pursuit Of Non-pecuniary Objectives May Affect Its Consideration Of An Application For Loans Or Services; By Adding Section 34-21-80 So As To Define Non-pecuniary Objective For Trust Institutions, Require Disclosure If A Trust Institution Uses Non-pecuniary Objectives, And To Require Disclosure As To How A Trust Institution's Pursuit Of Non-pecuniary Objectives May Affect Its Consideration Of An Application For Loans Or Services; And By Adding Section 34-26-895 So As To Define Non-pecuniary Objective For Credit Unions, Require Disclosure If A Credit Union Uses Non-pecuniary Objectives, And To Require Disclosure As To How A Credit Union's Pursuit Of Non-pecuniary Objectives May Affect Its Consideration Of An Application For Loans Or Services.

Selected quotes

In investing and managing assets of a retirement system pursuant to Section 9-16-40, the commission: [...] shall not promote a non-pecuniary benefit or outcome when making an investment, including, but not limited to, the promotion, furtherance, or achievement of environmental, social, or political goals, objectives, or outcomes.

Every insurance company licensed to transact business in this State must include with any rate filing a disclosure of its use of non-pecuniary objectives in establishing rates and making decisions concerning coverage. Individual insurers must justify, with appropriate actuarial data, the use of these factors as part of a rating or establishing rating tiers. Any filer may request that this actuarial data remain proprietary as a commercially valuable trade secret. The department, absent a court order, may not release information which is filed on a proprietary basis.

(2) If an insurer considers non-pecuniary objectives when it declines to offer coverage, reduces coverage, or nonrenews a policy, then it must provide a conspicuous disclosure in fourteen-point, bold font substantially similar to the following: "This declination, reduction, or nonrenewal of coverage has been determined based upon a number of non-pecuniary factors including environmental, social, and governance scores, or diversity, equity, and inclusion policies. Information about [insurance company's] rating and insurance practices related to these factors was disclosed to you and is available in the most recent rate filing for [insurance company]."

Legislative Session

active

125th General Assembly

Links

Read bill text

Calendar

datetimetypelocationdescription
2023-04-1115:00HearingGressette Room 105Senate Finance Retirement Systems Standing Subcommittee

History

DateAction
2023-03-08Scrivener's error corrected
2023-03-02Referred to Committee on Finance
2023-03-02Introduced and read first time