South Carolina General Assembly
115th Session, 2003-2004

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Bill 3575

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(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

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COMMITTEE REPORT

May 21, 2003

H. 3575

Introduced by Rep. Cooper

S. Printed 5/21/03--S.

Read the first time February 26, 2003.

            

THE COMMITTEE ON JUDICIARY

To whom was referred a Bill (H. 3575) to amend the Code of Laws of South Carolina, 1976, by adding Section 27-18-85 so as to provide for treatment of unclaimed property payable or distributable in, etc., respectfully

REPORT:

That they have duly and carefully considered the same and recommend that the same do pass:

SCOTT H. RICHARDSON for Committee.

            

STATEMENT OF ESTIMATED FISCAL IMPACT

ESTIMATED FISCAL IMPACT ON GENERAL FUND EXPENDITURES:

$0 (No additional expenditures or savings are expected)

ESTIMATED FISCAL IMPACT ON FEDERAL & OTHER FUND EXPENDITURES IS:

$0 (No additional expenditures or savings are expected)

EXPLANATION OF IMPACT:

The Department of Insurance has indicated this bill would not have any impact on the department, the General Fund of the State, or on federal and/or other funds.

SPECIAL NOTES:

The Board of Economic Advisors is the appropriate agency to address any revenue impact of this legislation.

Approved By:

Don Addy

Office of State Budget

STATEMENT OF ESTIMATED FISCAL IMPACT

REVENUE IMPACT 1/

The bill is expected to increase unclaimed property revenue in the general fund by an estimated $5,000,000 in FY2003-04.

Explanation

This bill as amended would add Section 27-18-85 to the Code of Laws of South Carolina so that unclaimed property due to the demutualization of an insurance company is presumed abandoned five years after the earlier date of last contact with the policyholder or the date that the insurance company declared demutualization. Based on consultation with the South Carolina State Treasurer's Office, the BEA estimates that this bill will generate an additional $5,000,000 in unclaimed property revenues in FY04. This bill will therefore increase unclaimed property revenue into the general fund by an estimated $5,000,000 for FY2004.

Approved By:

William C. Gillespie

Board of Economic Advisors

1/ This statement meets the requirement of Section 2-7-71 for a state revenue impact, Section 2-7-76 for a local revenue impact, and Section 6-1-85(B) for an estimate of the shift in local property tax incidence.

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 27-18-85 SO AS TO PROVIDE FOR TREATMENT OF UNCLAIMED PROPERTY PAYABLE OR DISTRIBUTABLE IN THE COURSE OF THE DEMUTUALIZATION OF AN INSURANCE COMPANY AS ABANDONED IN FIVE YEARS; AND TO AMEND SECTION 27-18-180, AS AMENDED, RELATING TO REPORTS OF UNCLAIMED PROPERTY, SO AS TO REQUIRE THE FILING OF A REPORT OF UNCLAIMED DEMUTUALIZATION PROCEEDS BEFORE MAY FIRST.

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

SECTION    1.    Chapter 18, Title 27 of the 1976 Code is amended by adding:

"Section 27-18-85.    Unclaimed property payable or distributable in the course of a demutualization of an insurance company is presumed abandoned five years after the earlier of the date:

(1)    of last contact with the policyholder; or

(2)    the property became payable or distributable.

This shall not apply to amounts due and owing to the state or any political subdivision thereof."

SECTION    2.    This act takes effect upon approval by the Governor.

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