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24                       SECTION 55
25
26     TO AMEND SECTION 12-56-20, AS AMENDED, OF THE 1976 CODE,  RELATING TO DEFINITIONS FOR PURPOSES OF
27     THE SETOFF DEBT COLLECTION ACT WHICH ALLOWS THE DEPARTMENT OF REVENUE TO SET OFF TAX REFUNDS
28     AGAINST CERTAIN DEBTS OR DELINQUENT ACCOUNTS, SO AS TO INCLUDE THE SOUTH CAROLINA STUDENT LOAN
29     CORPORATION WITHIN THE DEFINITION OF A "CLAIMANT AGENCY"; AND TO AMEND SECTION 12-56-60,
30     RELATING TO NOTIFICATION TO DEBTORS BY A CLAIMANT AGENCY OF INTENT TO SEEK A SETOFF OF A REFUND,
31     SO AS TO REVISE THE MANNER IN WHICH THE NOTICE MUST BE PROVIDED.
32
33     A.  Section 12-56-20(1) of the 1976 Code, as last amended by Act 347 of 1996, is further amended to read:
34     



PART II                                                                            PAGE 578

 1           "(1)        Claimant agency' means a state agency, board, committee, commission, public institution of higher learning, political subdivision,
 2     South Carolina Student Loan Corporation, housing authorities established pursuant to Articles 5, 7, and 9 of Chapter 3 of Title 31, and the
 3     Internal Revenue Service. It also includes a private institution of higher learning for the purpose of collecting debts related to default on
 4     authorized educational loans made pursuant to Chapters 111, 113, or 115 of Title 59.  Political subdivision' includes the Municipal Association
 5     of South Carolina and the South Carolina Association of Counties when these organizations submit claims on behalf of their members or other
 6     political subdivisions."
 7
 8     B.   Section 12-56-60(A) of the 1976 Code, as added by Act 76 of 1995, is further amended to read:
 9           "(A)      A claimant agency seeking to attempt collection of a delinquent debt through setoff shall notify the department in writing and
10     supply information the department determines necessary to identify the debtor whose refund is sought to be set off.  A request for setoff may
11     be made only after the claimant agency has notified the debtor of its intention to cause the debtor's refund to be set off. This notice must be
12     given in person, left at the dwelling or usual place of business of the debtor, or sent by certified or registered United States mail to the debtor's
13     last known address no less than thirty days before the claimant agency's request to the department. The notice shall include a statement which
14     sets forth administrative appeal procedures available to the debtor and alternatives available to the debtor which could prevent setoff. The
15     claimant agency promptly shall notify the debtor when the liability out of which the setoff arises is satisfied. Notification to the department and
16     the furnishing of identifying information must occur on or before a date specified by the department in the year preceding the calendar year
17     during which the refund would be paid. Additionally, subject to the notification deadline specified above, the notification is effective only to
18     initiate setoff for claims against refunds that would be made in the calendar year subsequent to the year in which notification is made to the
19     department."
20
21     C.   This section takes effect upon approval by the Governor.
22