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COMMITTEE REPORT
April 22, 2021
H. 3006
Introduced by Reps. Brawley, Robinson, Cobb-Hunter, Haddon, Henegan, Hosey, J.L. Johnson and Henderson-Myers
S. Printed 4/22/21--H.
Read the first time January 12, 2021.
To whom was referred a Bill (H. 3006) to amend the Code of Laws of South Carolina, 1976, by adding Section 59-63-785 so as to provide public schools and public school districts may not use, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass:
MERITA A. ALLISON for Committee.
Explanation of Fiscal Impact
State Expenditure
This bill prohibits a public school or public school district from using a debt collection service to collect debts on student school lunch or breakfast accounts. Additionally, a public school or public school district may not assess or collect any interest, fees, or other monetary penalties for outstanding debts on student school lunch and breakfast accounts. The provisions of the bill apply to debts on student lunch and breakfast accounts outstanding on the effective date of the bill and incurred after the effective date of the bill.
The Governor's School for the Arts and Humanities, the Governor's School for Science and Mathematics, and the Wil Lou Gray Opportunity School indicate that they do not use debt collection services or assess any interest, fees, or other monetary penalties for outstanding debts on school lunch and breakfast accounts. The School for the Deaf and Blind indicates that the agency does not charge students for meals. We anticipate a similar response from the Governor's School for Agriculture at John da la Howe. Therefore, we do not expect that this bill will have an expenditure impact on the state agency schools.
Local Expenditure
This bill prohibits a public school or public school district from using a debt collection service to collect debts on student school lunch or breakfast accounts. Additionally, a public school or public school district may not assess or collect any interest, fees, or other monetary penalties for outstanding debts on student school lunch and breakfast accounts. The provisions of the bill apply to debts on student lunch and breakfast accounts outstanding on the effective date of the bill and incurred after the effective date of the bill.
SDE indicates that this bill will have an undetermined expenditure impact on local school districts since some districts do use a debt collection agency to collect on student meal accounts. The impact will vary annually by district and will depend upon the amount of delinquent student meal debt.
Frank A. Rainwater, Executive Director
Revenue and Fiscal Affairs Office
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-63-785 SO AS TO PROVIDE PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS MAY NOT USE DEBT COLLECTION AGENCIES TO COLLECT OR ATTEMPT TO COLLECT OUTSTANDING DEBTS ON STUDENT SCHOOL LUNCH OR BREAKFAST ACCOUNTS, TO PROVIDE PUBLIC SCHOOLS AND PUBLIC SCHOOL DISTRICTS MAY NOT ASSESS OR COLLECT ANY INTEREST, FEES, OR OTHER SUCH MONETARY PENALTIES FOR OUTSTANDING DEBTS FOR STUDENT SCHOOL LUNCH OR BREAKFAST ACCOUNTS, AND TO PROVIDE THE PROVISIONS OF THIS ACT APPLY TO DEBTS ON STUDENT LUNCH AND BREAKFAST ACCOUNTS OUTSTANDING ON THE EFFECTIVE DATE OF THIS ACT AND INCURRED AFTER THE EFFECTIVE DATE OF THIS ACT.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 7, Chapter 63, Title 59 of the 1976 Code is amended by adding:
"Section 59-63-785. (A) A public school or public school district may not:
(1) use a debt collection service to collect or attempt to collect, directly or indirectly, debts due or assessed to be owed for outstanding debts on a school lunch or breakfast account of a student; or
(2) assess or collect any interest, fees, or other such monetary penalties for outstanding debts on student school lunch or breakfast accounts.
(B) For purposes of this section, 'debt collection agency' means, as used in the South Carolina Consumer Protection Code, any person who collects or attempts to collect, directly or indirectly, debts due or asserted to be owed or due another. The term also includes a creditor who collects or attempts to collect, directly or indirectly, his own debts."
SECTION 2. The provisions of this act apply to debts on student lunch and breakfast accounts outstanding on the effective date of this act and incurred after the effective date of this act.
SECTION 3. This act takes effect upon approval by the Governor.
This web page was last updated on April 22, 2021 at 5:56 PM