Current Status Bill Number:4915 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19980331 Primary Sponsor:Boan All Sponsors:Boan Drafted Document Number:GJK\21416SD.98 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Student Loan Corporation to be included as claimant agency in setoff debt collection; Taxation, Colleges, Universities
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19980331 Introduced, read first time, 30 HWM
referred to Committee
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TO AMEND SECTION 12-56-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS FOR PURPOSES OF THE SETOFF DEBT COLLECTION ACT WHICH ALLOWS THE DEPARTMENT OF REVENUE TO SET OFF TAX REFUNDS AGAINST CERTAIN DEBTS OR DELINQUENT ACCOUNTS, SO AS TO INCLUDE THE SOUTH CAROLINA STUDENT LOAN CORPORATION WITHIN THE DEFINITION OF A "CLAIMANT AGENCY"; AND TO AMEND SECTION 12-56-60, RELATING TO NOTIFICATION TO DEBTORS BY A CLAIMANT AGENCY OF INTENT TO SEEK A SETOFF OF A REFUND, SO AS TO REVISE THE MANNER IN WHICH THE NOTICE MUST BE PROVIDED.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-56-20(1) of the 1976 Code, as last amended by Act 347 of 1996, is further amended to read:
"(1) 'Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision, South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, and the Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members or other political subdivisions."
SECTION 2. Section 12-56-60(A) of the 1976 Code, as added by Act 76 of 1995, is further amended to read:
"(A) A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the department in writing and supply information the department 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 by certified or registered United States mail to the debtor's last known address no less than thirty days before the claimant agency's request to the department. 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 department and the furnishing of identifying information must occur on or before a date specified by the department in the year preceding the calendar year during which the refund would be paid. Additionally, subject to the notification deadline specified above, 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 department."
SECTION 3. This act takes effect upon approval by the Governor.