Current Status Introducing Body:Senate Bill Number:37 Primary Sponsor:Passailaigue Committee Number:06 Type of Legislation:GB Subject:State sponsored credit card Residing Body:Senate Current Committee:Finance Computer Document Number:S.37 Introduced Date:19930112 Last History Body:Senate Last History Date:19930112 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Passailaigue Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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37 Senate 19930112 Introduced, read first time, 06
referred to Committee
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TO AMEND CHAPTER 3 OF TITLE 12, CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-3-10, SO AS TO CREATE A STATE SPONSORED CREDIT CARD BY GIVING THE TAX COMMISSION THE AUTHORITY TO PARTICIPATE IN A FINANCIAL INSTITUTION CREDIT CARD PROGRAM FOR THE BENEFIT OF THE STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 3, Title 12 of the 1976 Code is amended by adding:
"Section 12-3-10. (A) As used in this part, the following definitions apply:
(1) `Financial institution' means a bank chartered under Title 34, Chapter 1 of the 1976 Code; a bank chartered under the National Banks Act in Title 12 of the United States Code; a savings and loan association chartered under Title 34, Chapter 28 of the 1976 Code; a savings and loan association chartered under the Home Owners' Loan Act in Title 12 of the United States Code; a credit union chartered under Title 34, Chapter 27 of the 1976 Code; or a credit union chartered under the Federal Credit Union Act in Title 12 of the United States Code.
(2) `Financial institution credit card' means a credit card that entitles the holder to make open-account purchases up to an approved amount and is issued through the agency of a financial institution.
(3) `Sponsoring entity' means an entity that solicits the use of a particular financial institution credit card bearing the entity's name in exchange for a fee from the credit card issuer.
(B) (1) The South Carolina Tax Commission is authorized to participate in a financial institution credit card program for the benefit of the State. Within one hundred eighty days of July 1, 1993, the commission shall contact each financial institution to determine if:
(a) the financial institution or its holding company or affiliate currently administers a credit card program;
(b) the credit card program provides a fee or commission on retail sales to the sponsoring entity for the issuance and use of the credit card; and
(c) the credit card program would accept the State as a sponsoring entity.
(2) If the commission determines that the State may be a sponsoring entity for a financial institution credit card, the commission shall negotiate the most favorable rate for the state's fee by a credit card issuer. The State may not offer a more favorable rate to any credit card issuer than that offered by the financial institution. The rate must be expressed as a percentage of the gross sales from the use of the credit card. The proceeds of the fee must be deposited in the general fund.
(C) The commission may adopt rules necessary to implement the credit card program."
SECTION 2. This act takes effect upon approval by the Governor.