H 4765  General Bill, By Brawley, King, McKnight, Pendarvis, Cobb-Hunter, Trantham, 
Alexander, Brown, Thigpen, Henegan, McDaniel, Collins, Kimmons, Bernstein, 
Gilliard, Henderson-Myers, S.Williams, Rivers, R.Williams and Jefferson
 A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION
 59-63-785 SO AS TO PROVIDE PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS MAY NOT
 USE DEBT COLLECTION AGENCIES TO COLLECT OR ATTEMPT TO COLLECT OUTSTANDING
 DEBTS ON STUDENT SCHOOL LUNCH OR BREAKFAST ACCOUNTS, TO PROVIDE PUBLIC SCHOOLS
 AND PUBLIC SCHOOL DISTRICTS MAY NOT ASSESS OR COLLECT ANY INTEREST, FEES, OR
 OTHER SUCH MONETARY PENALTIES FOR OUTSTANDING DEBTS FOR STUDENT SCHOOL LUNCH
 OR BREAKFAST ACCOUNTS, AND TO PROVIDE THE PROVISIONS OF THIS ACT APPLY TO
 DEBTS ON STUDENT LUNCH AND BREAKFAST ACCOUNTS OUTSTANDING ON THE EFFECTIVE
 DATE OF THIS ACT AND INCURRED AFTER THE EFFECTIVE DATE OF THIS ACT.
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   12/11/19  House  Prefiled
   12/11/19  House  Referred to Committee on Education and Public Works
   01/14/20  House  Introduced and read first time (House Journal-page 97)
   01/14/20  House  Referred to Committee on Education and Public
                     Works (House Journal-page 97)
   01/16/20  House  Member(s) request name added as sponsor: Trantham
   01/22/20  House  Member(s) request name added as sponsor:
                     Alexander, Brown
   01/30/20  House  Member(s) request name added as sponsor: Thigpen
   02/11/20  House  Member(s) request name added as sponsor: Henegan,
                     McDaniel
   02/12/20  House  Member(s) request name added as sponsor: Collins,
                     Kimmons, Bernstein
   02/20/20  House  Committee report: Favorable Education and Public
                     Works (House Journal-page 6)
   02/25/20  House  Member(s) request name added as sponsor: Gilliard
   02/26/20  House  Member(s) request name added as sponsor:
                     Henderson-Myers, S.Williams, Rivers, R.Williams,
                     Jefferson
   02/26/20  House  Read second time (House Journal-page 52)
   02/26/20  House  Roll call Yeas-104  Nays-0 (House Journal-page 53)
   02/27/20  House  Read third time and sent to Senate
                     (House Journal-page 31)
   02/27/20  Senate Introduced and read first time (Senate Journal-page 12)
   02/27/20  Senate Referred to Committee on Education
                     (Senate Journal-page 12)

COMMITTEE REPORT

February 20, 2020

H. 4765

Introduced by Reps. Brawley, King, McKnight, Pendarvis, Cobb-Hunter, Trantham, Alexander, Brown, Thigpen, Henegan, McDaniel, Collins, Kimmons and Bernstein

S. Printed 2/20/20--H.

Read the first time January 14, 2020.

To whom was referred a Bill (H. 4765) to amend the Code of Laws of South Carolina, 1976, by adding Section 59-63-785 so as to provide public schools and public school districts may not use, etc., respectfully

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

MERITA A. ALLISON for Committee.

Explanation of Fiscal Impact

Introduced on January 14, 2020

State Expenditure

This bill prohibits a public school or public school district from using a debt collection service to collect debts on student school lunch or breakfast accounts. Additionally, a public school or public school district may not assess or collect any interest, fees, or other monetary penalties for outstanding debts on student school lunch and breakfast accounts. The provisions of the bill apply to debts on student lunch and breakfast accounts outstanding on the effective date of the bill and incurred after the effective date of the bill.

The Governor's School for the Arts and Humanities (GSAH), the Governor's School for Science and Mathematics (GSSM), the School for the Deaf and Blind, and the Wil Lou Gray Opportunity School indicate that they do not use debt collection services or assess any interest, fees, or other monetary penalties for outstanding debts on school lunch and breakfast accounts. Therefore, this bill will have no expenditure impact on these agencies. The expenditure impact on the John de la Howe School is undetermined since the school did not provide a response, and it is unclear if the school will use debt collection services or collect any monetary penalties on outstanding student lunch and breakfast accounts.

Local Expenditure

This bill prohibits a public school or public school district from using a debt collection service to collect debts on student school lunch or breakfast accounts. Additionally, a public school or public school district may not assess or collect any interest, fees, or other monetary penalties for outstanding debts on student school lunch and breakfast accounts. The provisions of the bill apply to debts on student lunch and breakfast accounts outstanding on the effective date of the bill and incurred after the effective date of the bill.

Regular School Districts and Charter School Districts. The State Department of Education surveyed the regular school districts and the charter school districts regarding the expenditure impact of this bill and received responses from nine districts. Seven of the responding districts indicate they do not use a collection service to collect outstanding debts on student lunch and breakfast accounts. The other two responding districts indicate they do use a collection service to collect outstanding debts on student lunch and breakfast accounts, and the estimated impact ranged from a nominal amount to $15,000 annually. Additionally, one of the responding districts indicates that they collect approximately $5,000 in fees on student meal accounts annually. Although the expenditure impact of this bill on the regular school districts and the charter school districts will be at least $20,000, the overall expenditure impact is undetermined due to the limited number of responses from these districts.

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-63-785 SO AS TO PROVIDE PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS MAY NOT USE DEBT COLLECTION AGENCIES TO COLLECT OR ATTEMPT TO COLLECT OUTSTANDING DEBTS ON STUDENT SCHOOL LUNCH OR BREAKFAST ACCOUNTS, TO PROVIDE PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS MAY NOT ASSESS OR COLLECT ANY INTEREST, FEES, OR OTHER SUCH MONETARY PENALTIES FOR OUTSTANDING DEBTS FOR STUDENT SCHOOL LUNCH OR BREAKFAST ACCOUNTS, AND TO PROVIDE THE PROVISIONS OF THIS ACT APPLY TO DEBTS ON STUDENT LUNCH AND BREAKFAST ACCOUNTS OUTSTANDING ON THE EFFECTIVE DATE OF THIS ACT AND INCURRED AFTER THE EFFECTIVE DATE OF THIS ACT.

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

SECTION    1.    Article 7, Chapter 63, Title 59 of the 1976 Code is amended by adding:

"Section 59-63-785.    (A)    A public school or public school district may not:

(1)    use a debt collection service to collect or attempt to collect, directly or indirectly, debts due or assessed to be owed for outstanding debts on a school lunch or breakfast account of a student; or

(2)    assess or collect any interest, fees, or other such monetary penalties for outstanding debts on student school lunch or breakfast accounts.

(B)    For purposes of this section, 'debt collection agency' means, as used in the South Carolina Consumer Protection Code, any person who collects or attempts to collect, directly or indirectly, debts due or asserted to be owed or due another. The term also includes a creditor who collects or attempts to collect, directly or indirectly, his own debts."

SECTION    2.    The provisions of this act apply to debts on student lunch and breakfast accounts outstanding on the effective date of this act and incurred after the effective date of this act.

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