1 South Carolina General Assembly 2 122nd Session, 2017-2018 3 4 H. 3862 5 6 STATUS INFORMATION 7 8 General Bill 9 Sponsors: Reps. Henderson and W. Newton 10 Document Path: l:\council\bills\cc\15109vr17.docx 11 12 Introduced in the House on February 28, 2017 13 Currently residing in the House Committee on Judiciary 14 15 Summary: Paternity and child support obligations 16 17 18 HISTORY OF LEGISLATIVE ACTIONS 19 20 Date Body Action Description with journal page number 21 2/28/2017 House Introduced and read first time ( House Journalpage 35) 22 2/28/2017 House Referred to Committee on Judiciary ( House Journalpage 35) 23 24 View the latest legislative information at the website 25 26 27 VERSIONS OF THIS BILL 28 29 2/28/2017 30 1 2 3 4 5 6 7 8 9 A BILL 10 11 TO AMEND SECTION 63172310, AS AMENDED, CODE OF 12 LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE 13 REQUIREMENT OF CERTAIN ENTITIES TO REPORT 14 INFORMATION TO THE DIVISION OF CHILD SUPPORT 15 SERVICES OF THE DEPARTMENT OF SOCIAL SERVICES 16 FOR PURPOSES OF LOCATING PERSONS TO ESTABLISH 17 PATERNITY AND CHILD SUPPORT OBLIGATIONS, SO AS 18 TO CLARIFY THE ENTITIES REQUIRED TO PROVIDE 19 INFORMATION, TO ADD INFORMATION THAT MUST BE 20 PROVIDED, TO ESTABLISH CERTAIN PENALTIES FOR 21 THE FAILURE TO COMPLY, AND TO MAKE TECHNICAL 22 CORRECTIONS; TO AMEND SECTION 63172320, RELATING 23 IN PART TO THE REQUIREMENT OF FINANCIAL 24 INSTITUTIONS TO TAKE CERTAIN ACTIONS UPON 25 RECEIPT OF NOTICE FROM THE DIVISION OF A LIEN OR 26 LEVY ON AN ACCOUNT HOLDER, SO AS TO CLARIFY 27 THAT FINANCIAL INSTITUTIONS ARE REQUIRED TO 28 ENCUMBER OR SURRENDER THE ASSETS, AS DIRECTED, 29 TO PROVIDE CERTAIN IMMUNITY FOR FINANCIAL 30 INSTITUTIONS, TO ESTABLISH CERTAIN PENALTIES FOR 31 THE FAILURE TO COMPLY, AND TO MAKE TECHNICAL 32 CORRECTIONS; AND TO RETITLE ARTICLE 17 OF 33 CHAPTER 17, TITLE 63 “CHILD SUPPORT ENFORCEMENT 34 THROUGH FINANCIAL INSTITUTION DATA MATCHES”. 35 36 Be it enacted by the General Assembly of the State of South 37 Carolina: 38 39 SECTION 1. Section 63172310 of the 1976 Code, as last 40 amended by Act 74 of 2013, is further amended to read: 41

[3862] 2 1 “Section 63172310. (A) The Child Support Services Division 2 of the Department of Social Services shall attempt to locate 3 individuals for the purposes of establishing paternity and 4 establishing, modifying, and enforcing child support obligations. 5 In all cases not being administered pursuant to Title IVD of the 6 Social Security Act by the department, the clerk of court may 7 attempt to locate individuals for the purpose of enforcing child 8 support obligations. Notwithstanding any other provision of law 9 making this information confidential, these entities in this State 10 promptly shall provide to the department division, its designee or a 11 federally approved child support agency of another state, or to the 12 clerk of court, information upon request of the department division 13 or another agency for the purpose of establishing paternity or 14 establishing, modifying, or enforcing a support obligation or the 15 clerk of court for the purpose of enforcing child support 16 obligations: 17 (1) All entities in the State including, but not limited to, 18 forprofit, nonprofit and governmental employers, and labor 19 organizations shall provide the full name, social security number 20 or the alien identification number assigned to a resident alien who 21 does not have a social security number, date of birth, home 22 address, wages or salary, existing or available medical, hospital, 23 and dental insurance coverage, and number of dependents listed 24 for tax purposes on all employees, contractors, and members of 25 labor organizations. 26 (2) All utility companies, including wire and nonwire 27 telecommunication companies, cable television companies, and 28 financial institutions, shall provide the full name, social security 29 number or the alien identification number assigned to a resident 30 alien who does not have a social security number, date of birth, 31 home address, telephone number, account numbers, and other 32 identifying data, including information on assets and liabilities, on 33 all persons who maintain an account with that entity or for whom 34 the entity is in possession or control of property, tangible or 35 intangible, whether real or personal, or an interest in property, 36 whether legal or equitable, which is subject to payment, 37 disbursement or other method of transfer, by the entity to such 38 person. For purposes of this item, a financial institution is defined 39 as a federal, state, commercial, or savings bank, savings and loan 40 association, cooperative bank, federal or state chartered credit 41 union, benefit association, insurance company, safe deposit 42 company, money market mutual fund, or investment company 43 doing business in this State.

[3862] 3 1 (3) The appropriate state or local agency of this State shall 2 provide access to information contained in these records: 3 (a) vital statistics; 4 (b) state and local tax and revenue records; 5 (c) records concerning real and titled property; 6 (d) records of occupational and professional licenses; 7 (e) records concerning the ownership and control of 8 corporations, partnerships, and other business entities; 9 (f) employment security records; 10 (g) records of agencies administering public assistance 11 programs; 12 (h) records of motor vehicle departments; and 13 (h)(i) corrections records. 14 A state or local agency, board, or commission that provides 15 information pursuant to this subsection to the department division, 16 or to the clerk of court in nonTitle IVD cases, may not charge the 17 department division or the clerk of court a fee for providing the 18 information; however, a commission that receives federal grants, 19 the uses of which are restricted, may charge a fee for providing the 20 information. 21 (B) An entity that provides information pursuant to this section 22 in good faith reliance upon certification by the department 23 division, or to the clerk of court in nonTitle IVD cases, that the 24 information is needed to establish paternity or to establish, modify, 25 or enforce a support obligation is not liable for damages resulting 26 from the disclosure. 27 (C) An entity that fails to provide the requested information 28 within thirty days of the request may be subject to a civil penalty 29 of one hundred dollars for each occurrence. Fines imposed 30 pursuant to this subsection must be enforced as provided for in 31 Section 633530(A)(43) and distributed according to Section 32 6317520. The failure or refusal of an entity, upon request of the 33 division, to provide the requested information also shall subject the 34 entity to the contempt power of the family court, as provided in 35 Section 633530.” 36 37 SECTION 2. Section 63172320 of the 1976 Code is amended to 38 read: 39 40 “Section 63172320. (A) In the manner and form prescribed by 41 the Child Support Enforcement Services Division of the 42 Department of Social Services, a financial institution, as defined in 43 Section 63172310(A)(2), on a quarterly basis, shall provide the

[3862] 4 1 division or its designee information on account holders for use in 2 the establishment, enforcement, and collection of child support 3 obligations including, but not limited to: 4 (1) full name; 5 (2) social security number or taxpayer identification number, 6 or the alien identification number assigned to a resident alien who 7 does not have a social security number; 8 (3) record address; 9 (4) account numbers; and 10 (5) information on assets and liabilities. 11 (B) Utilizing automated data exchanges to the maximum extent 12 feasible, a financial institution shall provide for each calendar 13 quarter the name, address, social security number, or the alien 14 identification number assigned to a resident alien who does not 15 have a social security number, and other identifying information 16 for each noncustodial parent who maintains an account at the 17 institution and who owes pastdue support, as identified by the 18 division by name and social security number, or the alien 19 identification number assigned to a resident alien who does not 20 have a social security number. 21 (C) In response to a notice of lien or levy, provided by the 22 division, a financial institution shall must encumber or surrender, 23 as the case may be directed by the division, assets held by the 24 institution on behalf of a noncustodial parent who is subject to a 25 child support lien. Issuance of a notice of lien or levy to a financial 26 institution by the division shall be deemed to constitute conclusive 27 evidence of the validity of the underlying lien and a financial 28 institution shall not refuse to encumber assets in response to the 29 notice of lien or refuse to surrender assets in response to a notice 30 of levy provided by the division. Notwithstanding any other 31 provision of federal or state law, the financial institution is not 32 liable to any person, organization or entity for encumbering or 33 surrendering assets of a noncustodial parent in response to a notice 34 of lien or levy by the division. The failure or refusal of a financial 35 institution, in response to a notice of lien or levy by the division. to 36 encumber or surrender the assets held by the financial institution 37 on behalf of the noncustodial parent who is subject to a child 38 support lien, shall subject the financial institution to the contempt 39 power of the family court, as provided in Section 633530. 40 (D) The department division shall pay a reasonable fee to a 41 financial institution for conducting the data match, not to exceed 42 the actual costs incurred by the financial institution.

[3862] 5 1 (E) This section remains in effect until the federal mandate 2 requiring the operation of a financial institution data match 3 program is repealed.” 4 5 SECTION 3. Article 17 of Chapter 17, Title 63 of the 1976 Code 6 is retitled “Child Support Enforcement Through Financial 7 Institution Data Matches”. 8 9 SECTION 4. This act takes effect upon approval by the 10 Governor. 11 XX 12

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