S 0413 General Bill, By Land
 A Bill to amend Section 12-16-20, as amended, Code of Laws of South Carolina,
 1976, relating to definitions for purposes of the South Carolina Estate Tax
 Act, so as to revise the reference date in the definition of "Internal Revenue
 Code"; to amend Sections 34-19-50, 34-19-70, 34-19-80, and 34-19-100, relating
 to access to a decedent's safety deposit box, opening a safety deposit box
 with rent in arrears, sale of unclaimed contents of a safety deposit box and
 destruction of private documents of no apparent value, so as to allow military
 discharge papers to be removed from a decedent's box, to provide for the
 release of the box contents to the personal representative of the decedent,
 and to delete required notices to the Tax Commission for removal of box
 contents, to allow a box to be opened for unpaid rent after ninety days rather
 than one year, to allow the sale of unclaimed contents after one year rather
 than two years, and to allow destruction of valueless private documents after
 one year rather than two years; and to repeal Section 12-16-1520, relating to
 the required notice to the Tax Commission before transfer of certain assets of
 decedents.

   02/11/93  Senate Introduced and read first time SJ-6
   02/11/93  Senate Referred to Committee on Finance SJ-6
   04/06/94  Senate Committee report: Favorable Finance SJ-7
   04/12/94  Senate Read second time SJ-26
   04/12/94  Senate Ordered to third reading with notice of
                     amendments SJ-26
   04/13/94  Senate Read third time and sent to House SJ-26
   04/14/94  House  Introduced and read first time HJ-20
   04/14/94  House  Referred to Committee on Ways and Means HJ-21

COMMITTEE REPORT

April 6, 1994

S. 413

S. Printed 4/6/94--S.

Read the first time February 11, 1994.

To whom was referred a Bill (S. 413), to amend Section 12-16-20, as amended, Code of Laws of South Carolina, 1976, relating to definitions for purposes of the South Carolina Estate Tax Act, etc., respectfully

That they have duly and carefully considered the same, and recommend that the same do pass:

JOHN DRUMMOND, for Committee.

This bill amends Section 12-16-20, as amended, relating to definitions for purposes of the South Carolina Estate Tax Act, so as to revise the reference date in the definition of "Internal Revenue Code"; etc.

This bill would have no effect on Estate Tax collections.

This bill would modify certain sections of the Estate Tax Code to enhance administration.

Approved By:

A. Crawford Clarkson, Jr.

S.C. Tax Commission

A BILL

TO AMEND SECTION 12-16-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE SOUTH CAROLINA ESTATE TAX ACT, SO AS TO REVISE THE REFERENCE DATE IN THE DEFINITION OF "INTERNAL REVENUE CODE"; TO AMEND SECTIONS 34-19-50, 34-19-70, 34-19-80, AND 34-19-100, RELATING TO ACCESS TO A DECEDENT'S SAFETY DEPOSIT BOX, OPENING A SAFETY DEPOSIT BOX WITH RENT IN ARREARS, SALE OF UNCLAIMED CONTENTS OF A SAFETY DEPOSIT BOX AND DESTRUCTION OF PRIVATE DOCUMENTS OF NO APPARENT VALUE, SO AS TO ALLOW MILITARY DISCHARGE PAPERS TO BE REMOVED FROM A DECEDENT'S BOX, TO PROVIDE FOR THE RELEASE OF THE BOX CONTENTS TO THE PERSONAL REPRESENTATIVE OF THE DECEDENT, AND TO DELETE REQUIRED NOTICES TO THE TAX COMMISSION FOR REMOVAL OF BOX CONTENTS, TO ALLOW A BOX TO BE OPENED FOR UNPAID RENT AFTER NINETY DAYS RATHER THAN ONE YEAR, TO ALLOW THE SALE OF UNCLAIMED CONTENTS AFTER ONE YEAR RATHER THAN TWO YEARS, AND TO ALLOW DESTRUCTION OF VALUELESS PRIVATE DOCUMENTS AFTER ONE YEAR RATHER THAN TWO YEARS; AND TO REPEAL SECTION 12-16-1520, RELATING TO THE REQUIRED NOTICE TO THE TAX COMMISSION BEFORE TRANSFER OF CERTAIN ASSETS OF DECEDENTS.

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

SECTION 1. Section 12-16-20(5) of the 1976 Code, as last amended by Act 361 of 1992, is further amended to read:

"(5) `Internal Revenue Code' means the Internal Revenue Code of 1986, as amended through December 31, 1991 1992."

SECTION 2. Section 34-19-50 of the 1976 Code is amended to read:

"Section 34-19-50. A lessor shall permit the person named in a court order for the purpose, or if no order has been served upon the lessor, the spouse, a parent, an adult descendant, or a person named as an executor personal representative in a copy of a purported will produced by him, to open and examine the contents of a safe-deposit box leased by a decedent, or any documents delivered by a decedent for safekeeping, in the presence of an officer, manager, or assistant manager of the lessor; and the lessor, if so requested by such the person, must deliver:

(1) any writing purporting to be a will of the decedent to the executor, if one be therein named, otherwise to the court having jurisdiction of the decedent's estate;

(2) any writing purporting to be a deed to a burial plot, or to give burial instructions, or military discharge papers to the person making the request for a search; and

(3) any document purporting to be an insurance policy on the life of the decedent to the beneficiary named therein.

No other contents shall may be removed, pursuant to this section until an executor or administrator a personal representative qualifies and makes claim to the contents. The receipt or acquittance of the contents by the personal representative is a valid and sufficient release and discharge for the release of the contents by the lessor.

The removal of any contents of any safe-deposit boxes or deposits for safekeeping other than such as hereinabove permitted shall remain subject to Sections 12-15-1560 and 12-15-1570."

SECTION 3. Section 34-19-70 of the 1976 Code is amended to read:

"Section 34-19-70. If the rental due on a safe-deposit box has not been paid for one year ninety days, the lessor may send a notice by registered mail to the last known address of the lessee stating that the safe-deposit box will be opened and its contents stored at the expense of the lessee unless payment of the rental is made within thirty days. If the rental is not paid within thirty days from the mailing of the notice, the box may be opened in the presence of an officer, manager, or assistant manager of the lessor and of a notary public who is not a director, officer, employee, or stockholder of the lessor. The contents shall must be sealed in a package by the notary public who shall write on the outside the name of the lessee and the date of the opening. The notary public shall execute a certificate reciting the name of the lessee, the date of the opening of the box, and a list of its contents. The certificate shall must be included in the package and a copy of the certificate shall be sent by registered mail to the last known address of the lessee. The package shall must then be placed in the general vaults of the lessor at a rental not exceeding the rental previously charged for the box."

SECTION 4. Section 34-19-80 of the 1976 Code is amended to read:

"Section 34-19-80. If the contents of the safe-deposit box have not been claimed within two years one year of the mailing of the certificate as required by Section 34-19-70, the lessor may send a further notice to the last known address of the lessee stating that, unless the accumulated charges are paid within thirty days, the contents of the box will be sold at public auction at a specified time and place, or, in the case of securities listed on a stock exchange, will be sold upon the exchange on or after a specified date and that unsalable items will be destroyed. The time, place, and manner of sale shall must also be posted conspicuously on the premises of the lessor and advertised once seven days prior to the sale in a newspaper of general circulation in the community. If the articles are not claimed, and the accrued rent and disbursements of lessor paid, they may then be sold in accordance with the notice."

SECTION 5. Section 34-19-100 of the 1976 Code is amended to read:

"Section 34-19-100. Any documents or writings of a private nature and having little or no apparent value need not be offered for sale under Section 34-19-80, but shall must be retained, unless claimed by the owner, for a period of two years one year, after which they may be destroyed."

SECTION 6. Section 12-16-1520 of the 1976 Code is repealed.

SECTION 7. This act takes effect upon approval by the Governor.