Bill 3762

                    Current Status

Bill Number:               3762
Ratification Number:       233
Act Number                 153
Introducing Body:          House
Subject:                   Self-insurer's tax; time for report;
                           penalty; interest; etc.

(A153, R233, H3762)

AN ACT TO AMEND SECTION 42-5-190, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE TAX ON SELF-INSURERS UNDER THE WORKERS' COMPENSATION LAW, SO AS TO PROVIDE A DIFFERENT TIME FOR MAKING THE REQUIRED REPORT UNDER THE SECTION, ALLOW FOR THE ASSESSMENT OF A PENALTY, PROVIDE FOR THE ADDING OF INTEREST UNDER CERTAIN CONDITIONS, ALLOW THE WORKERS' COMPENSATION COMMISSION TO INITIATE PROCEEDINGS TO WITHDRAW THE PRIVILEGE OF SELF-INSURING, PROVIDE FOR THE TOTAL MAXIMUM INTEREST TO BE CHARGED, PROVIDE FOR PAYMENT OF THE PENALTY UNDER THIS SECTION TO THE COMMISSION, AND REQUIRE THE INTEREST TO BE REMITTED TO THE GENERAL FUND.

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

Self-insurer's tax; time for report; penalty; interest; etc.

SECTION 1. Section 42-5-190 of the 1976 Code, as last amended by an act of 1989 bearing ratification number 157, is further amended to read:

"Section 42-5-190. Every employer carrying his own risk under the provisions of Section 42-5-20 shall report under oath to the South Carolina Workers' Compensation Commission his actual cost incurred under the provisions of this title. The report must be made in the form prescribed by the commission by the fifteenth day of the third month following the close of the self-insurer's fiscal year. The commission shall assess against the actual cost incurred a maintenance tax computed by taking four and one-half percent of the actual cost of operating under the provisions of this title as determined by the commission. For fiscal year 1990-91, the maintenance tax is at the rate of three and one-half percent. For fiscal year 1991-92 and thereafter, the maintenance tax is at the rate of two and one-half percent. The assessments must be paid to the commission which, in turn, shall deposit them with the State Treasurer. In the event of failure to pay the tax within fifteen days of the date set forth in this section, the commission may assess against the self-insurer a penalty of five percent of the unpaid tax. If the self-insurer fails to pay the tax and penalty within fifteen days of notice by the commission, interest must be added to the amount of the deficiency at the rate of five percent for each month or fraction of a month from the date the tax was due originally until the date the deficiency is paid and the commission may initiate proceedings to withdraw the privilege of self-insuring in this State. The total maximum interest to be charged may not exceed twenty-five percent. The penalty under this section is payable to the commission and the interest must be remitted to the general fund."

Time effective

SECTION 2. This act takes effect upon approval by the Governor.