Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 27, 2024

 

H. 3980

 

Introduced by Reps. J. E. Johnson, M. M. Smith, Moss, Lawson, Guffey, West, Brittain, Hardee, McGinnis, Bailey, B. L. Cox, Pace, Mitchell, Chapman, Davis, B. Newton, Burns, Cromer, Hixon, A. M. Morgan and Robbins

 

S. Printed 03/27/24--H.

Read the first time February 16, 2023

 

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The committee on House Judiciary

To whom was referred a Bill (H. 3980) to amend the South Carolina Code of Laws by adding Section 14-1-250 so as to require judges and other judicial officials of the unified judicial system to report, 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, SECTION 1, by striking Section 14-1-250 and inserting:

    Section 14-1-250.  Judges of the unified judicial system may report all cases where there is a reasonable belief of a false statement or misrepresentation, as defined in Section 38-55-530(D), to the Insurance Fraud Division of the Office of Attorney General for investigation and prosecution, if warranted, pursuant to the Omnibus Insurance Fraud and Reporting Immunity Act.

Amend the bill further, SECTION 2, by striking Section 38-55-570(C) and inserting:

    (C) Any authorized agency provided with or obtaining information relating to a suspected false statement or misrepresentation as provided for above may release or provide the information to any other authorized agency. The Department of Insurance, the Department of Revenue, the Department of Public Safety, and the Department of Motor Vehicles shall report, but not adjudicate, all cases of suspectedwhere there is a reasonable belief of or reported false statement or misrepresentation to the Insurance Fraud Division of the Office of Attorney General of South Carolina for appropriate investigation or prosecution, or both. The Workers' Compensation Commission may refer such cases as provided in Section 42-9-440. Judges of the unified judicial system must refer such cases as provided in Section 14-1-250.

 

 

Renumber sections to conform.

Amend title to conform.

 

W. NEWTON for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill requires judges and the WCC to report all cases of suspected false statements or misrepresentation in insurance matters to the Insurance Fraud Division of the Office of the AG.

 

Judicial reported that the new reporting requirement for judges increases the workload for the judicial system by an undetermined amount, depending upon how this reporting is done or how detailed it may be. However, using the example of the requirement that judges report child abuse and neglect to the Department of Social Services through a hotline or web form, it is anticipated that this bill could be managed within existing appropriations. Therefore, Judicial anticipates this bill will have no expenditure impact.

 

WCC has indicated that this bill will have no expenditure impact to the agency. WCC is required to report all cases of suspected false statements or misrepresentation to the Insurance Fraud Division through §49-9-440. This bill's reporting requirements for WCC are consistent with §49-9-440.

 

The Office of the AG has reported that this bill will have no expenditure impact to the agency. The Office of the AG indicated that any change to the number of suspected fraud investigations as a result of this bill will be managed with existing staff and within existing appropriations.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 14-1-250 SO AS TO REQUIRE JUDGES AND OTHER JUDICIAL OFFICIALS OF ThE UNIFIED JUDICIAL SYSTEM TO REPORT ALL CASES OF SUSPECTED FALSE STATEMENTS OR MISREPRESENTATIONS TO THE INSURANCE FRAUD DIVISION OF THE OFFICE OF ATTORNEY GENERAL; AND BY AMENDING SECTION 38-55-570, RELATING TO NOTIFICATION OF INSURANCE FRAUD DIVISION OF KNOWLEDGE OR BELIEF OF FALSE STATEMENTS OR MISREPRESENTATIONS, SO AS TO INCLUDE A REFERENCE TO THE OBLIGATION OF JUDGES AND OTHER OFFICIALS OF THE UNIFIED JUDICIAL SYSTEM TO REPORT SUSPECTED FALSE STATEMENTS OR MISREPRESENTATIONS TO THE INSURANCE FRAUD DIVISION.

 

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

 

SECTION 1.  Chapter 1, Title 14 of the S.C. Code is amended by adding:

 

    Section 14-1-250.  Judges and other judicial officials of the unified judicial system shall report all cases of suspected false statement or misrepresentation, as defined in Section 38-55-530(D), to the Insurance Fraud Division of the Office of Attorney General for investigation and prosecution, if warranted, pursuant to the Omnibus Insurance Fraud and Reporting Immunity Act.

 

SECTION 2.  Section 38-55-570(C) of the S.C. Code is amended to read:

 

    (C) Any authorized agency provided with or obtaining information relating to a suspected false statement or misrepresentation as provided for above may release or provide the information to any other authorized agency. The Department of Insurance, the Department of Revenue, the Department of Public Safety, and the Department of Motor Vehicles shall report, but not adjudicate, all cases of suspected or reported false statement or misrepresentation to the Insurance Fraud Division of the Office of Attorney General of South Carolina for appropriate investigation or prosecution, or both. The Workers' Compensation Commission may must refer such cases as provided in Section 42-9-440. Judges and other judicial officials of the unified judicial system must refer such cases as provided in Section 14-1-250.

 

SECTION 3.  This act takes effect upon approval by the Governor.

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