Bill 3289

                    Current Status
Introducing Body:               House
Bill Number:                    3289
Ratification Number:            16
Act Number:                     10
Primary Sponsor:                Kirsh
Type of Legislation:            GB
Subject:                        Setoff debt collection claims
Date Bill Passed both Bodies:   19930223
Computer Document Number:       JIC/5178HC.93
Governor's Action:              S
Date of Governor's Action:      19930309
Introduced Date:                19930128
Last History Body:              ------
Last History Date:              19930309
Last History Type:              Act No. 10
Scope of Legislation:           Statewide
All Sponsors:                   Kirsh
Type of Legislation:            General Bill

Bill   Body    Date          Action Description              CMN  Leg Involved
----   ------  ------------  ------------------------------  ---  ------------
3289   ------  19930309      Act No. 10
3289   ------  19930309      Signed by Governor
3289   ------  19930303      Ratified R 16
3289   Senate  19930223      Read third time, enrolled for
                             ratification
3289   Senate  19930218      Read second time, notice of
                             general amendments
3289   Senate  19930217      Committee Report: Favorable     06
3289   Senate  19930209      Introduced, read first time,    06
                             referred to Committee
3289   House   19930209      Read third time, sent to
                             Senate
3289   House   19930204      Read second time
3289   House   19930203      Committee Report: Favorable     30
3289   House   19930128      Introduced, read first time,    30
                             referred to Committee

(A10, R16, H3289)

AN ACT TO AMEND SECTION 12-54-420, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE SETOFF DEBT COLLECTION ACT, SO AS TO EXTEND THE DEFINITION OF "CLAIMANT AGENCY" TO THE MUNICIPAL ASSOCIATION OF SOUTH CAROLINA AND THE SOUTH CAROLINA ASSOCIATION OF COUNTIES WHEN THESE ORGANIZATIONS SUBMIT CLAIMS ON BEHALF OF THEIR MEMBERS; AND TO AMEND SECTION 12-54-460, AS AMENDED, RELATING TO SETOFF PROCEDURES, SO AS TO DELETE THE EXEMPTION OF INTERNAL REVENUE SERVICE CLAIMS FROM THE ADMINISTRATIVE FEE.

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

Claimant agency

SECTION 1. Section 12-54-420(1) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"(1) `Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapter 111, 113, or 115 of Title 59. `Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members."

Administrative fee

SECTION 2. Section 12-54-460(B) of the 1976 Code, as last amended by Act 668 of 1988, is further amended to read:

"(B) Upon receiving the certification of the claimant agency of the amount of the delinquent debt, the commission shall determine if the debtor is due a refund. If the debtor is due a refund of more than twenty-five dollars, the commission shall set off the delinquent debt against the amount of the refund in excess of twenty-five dollars and transfer the amount set off to the claimant agency. The commission may retain an amount not to exceed twenty-five dollars of each refund set off to defray its administrative expenses. No apportionment is required in cases of refunds resulting from filing joint returns. The commission shall consider any certified delinquent debt and debtor list provided by a claimant agency as correct. Reviews of refund setoffs are with the claimant agency. If after appropriate review the claimant agency determines that the setoff amount is excessive, it shall refund the appropriate amount to the taxpayer. If, after appropriate review, the claimant agency determines that it is entitled to no part of the amount set off, it shall refund the entire amount plus the administrative fee retained by the commission. That portion of the refund reflecting the administrative fee must be paid from claimant agency funds. If a refund has been retained in error the claimant agency shall pay interest to the taxpayer calculated as provided in Section 12-54-20 from the date provided by law after which interest is paid on refunds until the appeal is final except that no interest accrues when the claimant agency is the Office of Child Support Services of the South Carolina Department of Social Services."

Time effective

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

Approved the 9th day of March, 1993.