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S. 21
STATUS INFORMATION
General Bill
Sponsors: Senators McConnell and Elliott
Document Path: l:\s-jud\bills\mcconnell\jud0154.gfm.doc
Introduced in the Senate on January 11, 2005
Currently residing in the Senate Committee on Banking and Insurance
Summary: Deferred presentment services; Western Union services changed to wiring services
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 12/8/2004 Senate Prefiled 12/8/2004 Senate Referred to Committee on Banking and Insurance 1/11/2005 Senate Introduced and read first time SJ-90 1/11/2005 Senate Referred to Committee on Banking and Insurance SJ-90
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 34-39-120, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS APPLICABLE TO DEFERRED PRESENTMENT SERVICES, SO AS TO DEFINE AUTOMATED CLEARING HOUSE; TO AMEND SECTION 34-39-150, RELATING TO LICENSURE PROCEDURES, SO AS TO REQUIRE THAT LICENSE RENEWAL FEES BE PAID BY SEPTEMBER FIRST OF EACH YEAR, THAT LATE FEES OF ONE HUNDRED DOLLARS SHALL BE CHARGED, THAT WRITTEN NOTICE OF A CHANGE IN BUSINESS LOCATION BY THE DEFERRED PRESENTMENT LICENSEE SHALL BE GIVEN TO THE BOARD, THAT NO CHANGE OF LOCATION SHALL BE MADE TO AN AREA OUTSIDE OF THE MUNICIPALITY FOR WHICH THE LICENSEE RECEIVED A LICENSE, AND THAT A LICENSEE MAY NOT CONDUCT BUSINESS UNDER ANY OTHER NAME AND ONLY AT A LICENSED LOCATION; TO AMEND SECTION 34-39-170, RELATING TO RESTRICTIONS ON THE ADVANCEMENT OF MONEY, SO AS TO PROHIBIT A LICENSEE FROM USING THE AUTOMATED CLEARING HOUSE SERVICES ON ANY ACCOUNT MORE THAN ONCE AND TO REQUIRE THE TRANSFER OF ONLY THE TOTAL CHECK AMOUNT; TO AMEND SECTION 34-39-180, RELATING TO RESTRICTIONS AND REQUIREMENTS FOR DEFERRED PRESENTMENT OR DEPOSIT OF CHECKS, SO AS TO PROVIDE THAT A LICENSEE MUST NOT CHARGE IN EXCESS OF FIFTEEN PERCENT OF THE AMOUNT ADVANCED FOR A CHECK, TO PROVIDE THAT THE SAME LICENSEE SHALL NOT ISSUE MULTIPLE ADVANCES OR ALLOW MORE THAN ONE OUTSTANDING CHECK ADVANCE FOR ANY CUSTOMER WITH A LICENSEE, AND TO PROVIDE THAT IF AN ACCOUNT IS RENEWED THE CUSTOMER WILL HAVE NO OBLIGATION TO REPAY THE DEBT; AND TO AMEND SECTION 34-39-200, RELATING TO LIMITATIONS ON ACTIVITIES BY PERSONS REQUIRED TO BE LICENSED, BY CHANGING "WESTERN UNION SERVICES" TO "WIRING SERVICES."
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 34-39-120 of the 1976 Code is amended by adding:
"(7) 'Automated Clearing House' means the nationwide electronic funds transfer network that allows banks and their customers to transfer funds instantaneously by electronic means or the Internet."
SECTION 2. Section 34-39-150 of the 1976 Code is amended by adding:
"(E) The annual license renewal fee required by subsection (D) shall be paid to the board not later than September first of each year. The board must accept any license renewal fee paid after September first but not later than September fifteenth of each year without collecting any additional fee. For any license renewal fee paid after September fifteenth of each year, the board must collect an additional fee of one hundred dollars for each location to be licensed. The board must cancel any license for which the annual license renewal fee has not been paid by September thirtieth of each year.
(F) At least fifteen days prior to any change of location, a licensee must notify the board in writing of a change of location of a place of business where deferred presentment services are offered. No change of location shall be made to a location outside of the municipality that was set forth in the licensee's application for licensure, as required by subsection (A)(4). For purposes of this subsection, `municipality' means an incorporated area and any contiguous unincorporated suburban areas.
(G) A licensee must not offer deferred presentment services at any location other than the locations set forth in the licensee's application for licensure, as required by subsection (A)(4), or at any locations provided for in subsection (F). A licensee must not offer deferred presentment services under any name other than the legal name set forth in its license application, as required by in subsection (A)(1)."
SECTION 3. Section 34-39-170 of the 1976 Code is amended by adding:
"(D) A licensee must not use automated clearing house services on any account more than once, and any amount of funds transferred by automated clearing house services must be for the total check amount."
SECTION 4. Section 34-39-180(E) of the 1976 Code is amended to read:
"(E) A licensee shall not charge, directly or indirectly, a fee or other consideration in excess of fifteen percent of the face amount advanced for a of the check for when accepting a check for deferred presentment or deposit. (For example: the maximum fee which may be charged for a check with a face value of one hundred dollars is fifteen dollars, yielding a total amount due of one hundred fifteen dollars.) The fee or other consideration authorized by this subsection may be imposed only once for each written agreement. Records must be kept by each licensee with sufficient detail to ensure that the fee or other consideration authorized by this subsection may be imposed only once for each written agreement."
SECTION 5. Section 34-39-180 of the 1976 Code is amended by adding:
"(H) A licensee shall not issue multiple advances to any customer, nor shall a licensee allow more than one check advance to be outstanding with any customer at any given time."
SECTION 6. Section 34-39-200(9) of the 1976 Code is amended to read:
"(9) engage in the retail sale of goods or services, other than deferred presentment services and Level I check-cashing services as defined in Section 34-41-10, at the location licensed pursuant to this chapter, provided, however, that a sale of money orders, postage stamps, payment of utility bills with no additional fee to the customer, vending machines for food or beverage, facsimile services, Western Union wire services, or postal boxes at rates not higher than allowed by the United States Postal Service is not the sale of goods or services prohibited by this subsection;"
SECTION 7. This act takes effect upon approval by the Governor.
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