Bill 1148

                    Current Status

Bill Number:                    1148
Ratification Number:            313
Act Number:                     314
Type of Legislation:            General Bill GB
Introducing Body:               Senate
Introduced Date:                19960215
Primary Sponsor:                Drummond
All Sponsors:                   Drummond, J. Verne Smith, Leventis,
                                Peeler, Patterson, Washington and Giese
Drafted Document Number:        gjk\22349sd.96
Date Bill Passed both Bodies:   19960329
Date of Last Amendment:         19960307
Governor's Action:              S
Date of Governor's Action:      19960506
Subject:                        Insurance premiums paid under Tort
                                Claims Act

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

------  19960516  Act No. A314
------  19960506  Signed by Governor
------  19960430  Ratified R313
House   19960329  Read third time, enrolled for
                  ratification
House   19960328  Read second time, unanimous consent
                  for third reading on the next
                  Legislative day
House   19960328  Reconsidered vote whereby
                  debate was adjourned
House   19960328  Debate adjourned until
                  Tuesday, 19960402
House   19960327  Debate interrupted
House   19960321  Committee report: Favorable              30 HWM
House   19960313  Introduced, read first time,             30 HWM
                  referred to Committee
Senate  19960312  Read third time, sent to House
Senate  19960307  Amended, read second time
Senate  19960306  Committee report: Favorable with         06 SF
                  amendment
Senate  19960215  Introduced, read first time,             06 SF
                  referred to Committee

(A314, R313, S1148)

AN ACT TO AMEND SECTION 10-7-100, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PAYMENT OF INSURANCE PREMIUMS TO THE STATE BUDGET AND CONTROL BOARD, AND SECTION 15-78-160, RELATING TO THE STATE BUDGET AND CONTROL BOARD NOT BEING LIABLE FOR UNCOVERED OR UNFUNDED RISKS WHEN AN AGENCY OR POLITICAL SUBDIVISION FAILS TO PAY INSURANCE PREMIUMS UNDER THE TORT CLAIMS ACT, SO AS TO FURTHER PROVIDE FOR THE PROCEDURES WHERE THE BOARD MAY CANCEL SUCH POLICIES FOR NONPAYMENT OF PREMIUMS; TO AMEND SECTION 11-9-75, RELATING TO STATE FUNDS BEING WITHHELD FROM COUNTIES AND MUNICIPALITIES WHICH ARE DELINQUENT IN PAYMENTS DUE THE STATE, SO AS TO REVISE THE TYPES OF ENTITIES TO WHICH THIS SECTION APPLIES, AND TO PERMIT AN AGENCY OR INSTITUTION TO WRITE OFF AS A BAD DEBT CERTAIN DELINQUENT PAYMENTS; AND TO REPEAL SECTION 10-7-110 RELATING TO DELINQUENT INSURANCE PREMIUMS PAYABLE TO THE STATE BUDGET AND CONTROL BOARD BEING DEDUCTED FROM CERTAIN GASOLINE TAX DISTRIBUTIONS.

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

Cancellation procedures revised

SECTION 1. Section 10-7-100 of the 1976 Code is amended to read:

"Section 10-7-100. The premium on all policies of insurance issued by the State Budget and Control Board shall be paid by the officer, official, or trustee having the property insured under his care and custody upon demand of the board. If an agency or political subdivision fails to pay any required premium within sixty days from the date the premium is invoiced, the State Budget and Control Board may cancel the policy for nonpayment of premium by mailing a notice of cancellation giving not less than thirty days' notice of the cancellation to the delinquent agency or political subdivision. Prior to the termination of the insurance coverage, notice of the impending termination also must be published in a newspaper of regular circulation in the county where the insured's headquarters is located. The State Budget and Control Board is not responsible for risk or loss occurring after the effective date of the cancellation."

Entities to which applicable, bad debt write off

SECTION 2. Section 11-9-75 of the 1976 Code is amended to read:

"Section 11-9-75. If an agency or political subdivision becomes delinquent for ninety days for any payments to the State or agencies or institutions thereof, the agency or institution responsible for the collection of the payment may file a certificate of delinquency with the State Treasurer. Upon receipt of the certificate of delinquency, the State Treasurer shall withhold from the next distribution of any revenue to such agency or political subdivision the amount certified as being due and shall forward a remittance to the agency or institution to be applied against the payment due by such agency or political subdivision. If the State Treasurer does not forward any remittance or forwards an amount less than the delinquent payment after one year from the date of certification, the agency or institution shall write off the outstanding delinquent amount as an uncollectible bad debt."

Cancellation procedures revised

SECTION 3. Section 15-78-160 of the 1976 Code is amended to read:

"Section 15-78-160. If an agency or political subdivision fails to pay any required premium within sixty days from the date the premium is invoiced, the State Budget and Control Board may cancel the policy for nonpayment of premium by mailing a notice of cancellation giving not less than thirty days' notice of the cancellation to the delinquent agency or political subdivision. Prior to the termination of the insurance coverage, notice of the impending termination also must be published in a newspaper of regular circulation in the county where the insured's headquarters is located. The State Budget and Control Board is not liable for any risk or loss occurring after the effective date of the cancellation."

Repeal

SECTION 4. Section 10-7-110 of the 1976 Code is repealed.

Time effective

SECTION 5. This act takes effect upon approval by the Governor.

Approved the 6th day of May, 1996.