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H. 4381
STATUS INFORMATION
General Bill
Sponsors: Rep. Gullick
Document Path: l:\council\bills\agm\18955mm08.doc
Introduced in the House on January 8, 2008
Currently residing in the House Committee on Judiciary
Summary: Department of Revenue
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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12/12/2007 House Prefiled
12/12/2007 House Referred to Committee on Judiciary
1/8/2008 House Introduced and read first time HJ-53
1/8/2008 House Referred to Committee on Judiciary HJ-53
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 12-4-590 SO AS TO ALLOW THE DEPARTMENT OF REVENUE OR OTHER GOVERNMENTAL ENTITY TO ENTER INTO AN AGREEMENT WITH A PRIVATE THIRD PARTY COLLECTIONS ORGANIZATION TO COLLECT AN OUTSTANDING LIABILITY OWED THAT GOVERNMENTAL ENTITY, TO LIMIT IN THESE AGREEMENTS WAGE GARNISHMENT POWERS BOTH IN SCOPE AND TO COLLECTION OF AN OUTSTANDING TAX LIABILITY, TO PROVIDE FOR COMPENSATION TO THE EMPLOYER FOR ADMINISTRATION OF THE GARNISHMENT ACCOUNT, TO PROVIDE FOR INDEMNIFICATION OF THE DEPARTMENT IN THIS CONNECTION, AND TO DEFINE "OUTSTANDING TAX LIABILITY OWED A GOVERNMENTAL ENTITY".
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 5, Chapter 4, Title 12 of the 1976 Code is amended by adding:
"Section 12-4-590. (A) The department or another governmental entity may contract with a private third party collections organization to allow the department to collect an outstanding liability owed the governmental entity. In administering the provisions of those agreements, the collections organization has all the rights and powers of collection provided to the department pursuant to this title for the collection of taxes and all the rights and powers authorized the governmental entity to which the liability is owed; except that the power to garnish the wages of a delinquent taxpayer, as provided in Sections 12-54-130 and 12-54-135, may be used only to collect an outstanding tax liability owed the governmental entity.
(B) The department and other governmental entity shall set off the cost of the administration of the garnishment account against the outstanding liability in favor of the employer setting up the account as follows:
(1) Until the liability is satisfied or until otherwise provided by court order, the employer may collect up to twenty-five dollars as a set-up fee and up to five dollars per pay period against the salary or wages of the debtor to reimburse the employer for administrative costs for deductions from the debtor's salary or wages. In addition, an employer may withhold up to twenty-five dollars to finish the garnishment process.
(2) The employer shall remit the funds withheld to the creditor within thirty days after withholding.
(3) The employer has thirty days to remit payment to the creditor.
(C) An employer establishing a garnishment account may not:
(1) collect more than twenty-five percent of the debtor's disposable wages;
(2) allow the garnishment to reduce the debtor's average weekly disposable wages below thirty times the federal minimum wage; or
(3) use a writ of garnishment as a reason to terminate the debtor's employment.
(D) The department and a governmental entity that contracts with a private third party collections organization for purposes set forth in and pursuant to this section must be indemnified and held harmless by the employer against injuries, actions, liabilities, or proceedings arising out of the collection or attempted collection by the private third party collections organization.
(E) As used in this section:
(1) 'Governmental entity' means the State and a state agency, board, committee, department, or public institution of higher learning; all political subdivisions of the State; all federal agencies, boards, and commissions; and a federal, state, county, or local governmental or quasi-governmental entity. 'Political subdivision' includes the Municipal Association of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of a county or local governmental or quasi-governmental entity.
(2) 'Liabilities owed the governmental entity' has the same meaning as a 'delinquent debt' as defined in Section 12-56-20(4).
(3) 'Outstanding tax liability owed the governmental entity' means every tax imposed by the governmental entity, and all increases, interest, fees, and penalties on the tax from the time it is due and payable:
(a) which has not been paid; and
(b) for which all rights of administrative or judicial appeal have been exhausted or all time limits for these appeals have expired."
SECTION 2. This act takes effect upon approval by the Governor.
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