South Carolina General Assembly
116th Session, 2005-2006

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H. 4065

STATUS INFORMATION

General Bill
Sponsors: Reps. Townsend, Cobb-Hunter and M.A. Pitts
Document Path: l:\council\bills\pt\2635sj05.doc

Introduced in the House on May 10, 2005
Currently residing in the House Committee on Ways and Means

Summary: Loan repayment program

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   5/10/2005  House   Introduced and read first time HJ-3
   5/10/2005  House   Referred to Committee on Ways and Means HJ-3

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

5/10/2005

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

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 59-111-80 SO AS TO AUTHORIZE THE SOUTH CAROLINA LAW ENFORCEMENT DIVISION IN CONSULTATION WITH THE SOUTH CAROLINA STUDENT LOAN CORPORATION TO DEVELOP A LOAN REPAYMENT PROGRAM WHEREBY TALENTED AND QUALIFIED STATE RESIDENTS MAY ATTEND STATE PUBLIC OR PRIVATE COLLEGES AND UNIVERSITIES FOR THE PURPOSE OF PROVIDING INCENTIVES FOR WORKING IN THE FIELD OF LAW ENFORCEMENT IN AREAS OF CRITICAL NEED, AND TO PROVIDE FOR THE PROCEDURES, CONDITIONS, AND REQUIREMENTS OF THE PROGRAM.

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

SECTION    1.    Article 1, Chapter 111, Title 59 of the 1976 Code is amended by adding:

"Section 59-111-80.    (A)    The South Carolina Law Enforcement Division (SLED) in consultation with the staff of the South Carolina Student Loan Corporation, shall develop a loan program whereby talented and qualified state residents may be provided loans to attend public or private colleges and universities for the sole purpose and intent of working in the field of law enforcement employed in the State in areas of critical need. Areas of critical need shall include both geographic areas and work subject areas and must be defined annually for that purpose by SLED. The recipient of a loan is entitled to have up to one hundred percent of the amount of the loan plus the interest canceled if he becomes employed in the field of law enforcement in an area of critical need. Should the area of critical need that the loan recipient is working in be reclassified during the time of cancellation, the cancellation shall continue as though the critical need area had not changed. Additionally, an employee in the field of law enforcement with a loan through the South Carolina Student Loan Corporation shall qualify, if the person is working in an area newly designated as a critical needs area (geographic or subject, or both). Previous loan payments must not be reimbursed. SLED is responsible for annual distribution of the critical needs list. The law enforcement officer shall request loan cancellation through service in a critical needs area to the Student Loan Corporation by November first.

(B)    The loan must be canceled at the rate of twenty percent or three thousand dollars, whichever is greater, of the total principal amount of the loan plus interest on the unpaid balance for each complete year of service in a critical need area. The loan must be canceled at the rate of thirty-three and one-third percent, or five thousand dollars, whichever is greater, of the total principal amount of the loan plus interest on the unpaid balance for each complete year of service in a critical need area. All loan recipients working in the field of law enforcement in South Carolina but not in a critical need area are to be charged an interest rate below that charged to loan recipients who do not work in South Carolina.

(C)    Additional loans to assist with college and living expenses must be made available for talented and qualified state residents attending public or private colleges and universities in this State for the sole purpose and intent of changing careers in order to work in the field of law enforcement in the State in areas of critical need.

(D)    In case of failure to make a scheduled repayment of any installment, failure to apply for cancellation of deferment of the loan on time, or noncompliance by a borrower with the intent of the loan, the entire unpaid indebtedness including accrued interest, at the option of the commission, must become immediately due and payable. The recipient shall execute the necessary legal documents to reflect his obligation and the terms and conditions of the loan. The loan program, if implemented, is to be administered by the South Carolina Student Loan Corporation. Funds generated from repayments to the loan program must be retained in a separate account and utilized as a revolving account for the purpose that the funds were originally appropriated. Appropriations for loans and administrative costs incurred by the corporation are to be provided in annual amounts, recommended by SLED, to the State Treasurer for use by the corporation. SLED shall review the loan program annually and report to the General Assembly."

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

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