South Carolina General Assembly
115th Session, 2003-2004

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Bill 4470

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

COMMITTEE REPORT

May 26, 2004

H. 4470

Introduced by Reps. Harrison, Altman, Cotty, Kirsh and Owens

S. Printed 5/26/04--S.

Read the first time April 22, 2004.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (H. 4470) to amend the Code of Laws of South Carolina, 1976, by adding Section 16-13-305 so as to create the offense of defrauding secured creditors and to provide, etc., respectfully

REPORT:

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

Amend the bill, as and if amended, by striking all after the enacting words and inserting therein the following:

/    SECTION    1.    Part 4, Chapter 9, Title 36 of the 1976 Code is amended by adding:

"Section 36-9-410.    (A)    Notwithstanding Section 36-9-401, a person who intentionally or wilfully sells or disposes of personal property that is subject to a perfected security interest, with the intent to defraud the secured party, without the written consent of the secured party and without paying the debt secured by the perfected security interest within ten days after sale or disposal or, in that time, depositing the amount of the debt with the clerk of the court of common pleas for the county in which the secured party resides, is in violation of this section.

(B)    This section does not apply:

(1)    if the sale is made without the knowledge of or notice of the perfected security interest to the purchaser by the person selling the property;

(2)    to the granting of subsequent security interests;

(3)    if the loan secured by the personal property includes a charge for nonfiling insurance; or

(4)    to personal property titled by the Department of Public Safety or the Law Enforcement Division of the South Carolina Department of Natural Resources.

(C)    If the value of the personal property subject to a perfected security interest is worth:

(1)    one thousand dollars or less, a person who violates the provisions of this section is guilty of a misdemeanor triable in the magistrates court and, upon conviction, must be fined not more five hundred dollars or imprisoned not more than thirty days, or both;

(2)    more than one thousand dollars but less than five thousand dollars, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than five years, or both;

(3)    five thousand dollars or more, a person who violates the provisions of this section is guilty of a felony and, upon conviction, must be fined in the discretion of the court or imprisoned not more than ten years, or both."

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

Renumber sections to conform.

Amend title to conform.

Majority favorable.    Minority unfavorable.

JAMES H. RITCHIE, JR.    JOHN M. KNOTTS, JR.

For Majority.    For Minority.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

Minimal (Some additional costs expected but can be absorbed)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

The Judicial Department indicates there will be a minimal fiscal impact on the General Fund of the State, which can be absorbed by the agencies at their current level of funding.

LOCAL GOVERNMENT IMPACT:

Responses from local governments indicate enactment would have little or no impact on expenditures.

Approved By:

Don Addy

Office of State Budget

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-13-305 SO AS TO CREATE THE OFFENSE OF DEFRAUDING SECURED CREDITORS AND TO PROVIDE A PENALTY.

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

SECTION    1.    Part 4, Chapter 9, Title 36 of the 1976 Code is amended by adding:

"Section 36-9-410.    (A)    Notwithstanding Section 36-9-401, a person who intentionally or wilfully sells or disposes of personal property that is subject to a security interest, with the intent to defraud the secured party, without the written consent of the secured party and without paying the debt secured by the security interest within ten days after sale or disposal or, in that time, depositing the amount of the debt with the clerk of the court of common pleas for the county in which the secured party resides, is guilty of a misdemeanor and, upon conviction, must be fined not more than five thousand dollars or imprisoned for not more than one year, or both.

(B)    This section does not apply:

(1)    if the sale is made without the knowledge or notice of the security interest by the person selling the property;

(2)    to the granting of subsequent security interests;

(3)    if the loan secured by the personal property includes a charge for nonfiling insurance; or

(4)    to personal property titled by the Department of Public Safety of the Natural Resources Enforcement Division of the South Carolina Department of Natural Resources.

(C)    If the value of the property is less than seven thousand five hundred dollars, the offense is triable in the magistrate's court and the punishment must be not more than thirty days or a fine of five hundred dollars, or both. Otherwise, the offense is triable in the court of general sessions, subject to transfer under Section 22-3-545."

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

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