Current Status Introducing Body:House Bill Number:4011 Primary Sponsor:Shissias Committee Number:30 Type of Legislation:GB Subject:Setoff debt collection Residing Body:House Current Committee:Ways and Means Computer Document Number:436/12925AC.93 Introduced Date:19930414 Last History Body:House Last History Date:19930414 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Shissias Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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4011 House 19930414 Introduced, read first time, 30
referred to Committee
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TO AMEND SECTION 12-54-460, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SETOFF DEBT COLLECTION ACT, SO AS TO PROVIDE THAT THE DEBTOR MAY BE NOTIFIED BY FIRST CLASS MAIL AND TO REVISE THE AMOUNT AGAINST WHICH A SETOFF MAY BE MADE AND TO REVISE THE STANDARD FOR DETERMINING THE AMOUNT THAT THE CLAIMANT AGENCY MUST REFUND TO A DEBTOR IF THE AGENCY SET OFF MORE THAN IT WAS ENTITLED TO SET OFF.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-54-460 of the 1976 Code, as last amended by Act 10 of 1993, is further amended to read:
"Section 12-54-460. (A) A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the commission in writing and supply information the commission determines necessary to identify the debtor whose refund is sought to be set off. A request for setoff may be made only after the claimant agency has notified the debtor of its intention to cause the debtor's refund to be set off. This notice must be given in person, left at the dwelling or usual place of business of the debtor, or sent to the debtor by certified or registered first class mail to the debtor's last known address no less than thirty days before the claimant agency's request to the commission. The notice shall include a statement which sets forth administrative appeal procedures available to the debtor and alternatives available to the debtor which could prevent setoff. The claimant agency promptly shall notify the debtor when the liability out of which the setoff arises is satisfied. Notification to the commission and the furnishing of identifying information must occur on or before a date specified by the commission in the year preceding the calendar year during which the refund would be paid. Additionally, subject Subject to the notification deadline specified above by the commission, the notification is effective only to initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the commission.
(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 is not entitled to a portion of the amount set off, it shall refund to the debtor the appropriate amount to the taxpayer. If, after appropriate review, which it is not entitled. Additionally, if the claimant agency determines that as of December thirty-first of the calendar year preceding the calendar year during which the refund would be paid it is was not entitled to no part of the any amount set off, it from the debtor, the agency shall also refund to the entire amount plus debtor 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 portion of the 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."
SECTION 2. This act takes effect upon approval by the Governor.