Indicates Matter Stricken

Indicates New Matter

Committee Report

February 21, 2024

S. 755

Introduced by Senators Young, Malloy, Massey, Campsen, Bennett, Rankin, Hembree, Matthews, Corbin, Talley, M. Johnson, Garrett, McLeod, Hutto, McElveen, Senn, Harpootlian, Sabb and Williams

S. Printed 02/21/24--S.                                                                          [SEC 2/22/2024 4:41 PM]

Read the first time April 27, 2023

________

The committee on Senate Judiciary

To whom was referred a Bill (S. 755) to amend the South Carolina Code of Laws by adding Part 4 to Article 6, Chapter 6, Title 62 so as to provide for transfer on death designations for certain categories, etc., respectfully

Report:

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

LUKE RANKIN for Committee.

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill allows the owner of a vehicle, mobile home, watercraft, outboard motor, or any similar personal property for which legal titles are issued and administered by DMV or DNR to establish a TOD designation upon any such title or registration.

Department of Motor Vehicles.  DMV does not anticipate an expenditure impact as all required changes can be managed with existing staff.

Department of Natural Resources.  The expenditure impact on DNR is pending, contingent upon a response from the agency.

Judicial.  Judicial reports that implementation of the bill may result in an increase in probate court caseloads, which can be managed using existing staff and appropriations.  Therefore, the bill will result in no expenditure impact for Judicial. 

State Revenue

The bill establishes a fee of $10 for the establishment, modification, or revocation of a TOD designation for personal property titled by DNR.  The revenue impact on DNR is pending, contingent upon a response from the department.

Additionally, the bill establishes a fee of $15 for the establishment, modification, or revocation of a TOD designation for personal property titled or registered by DMV.  The department indicates that if the TOD designation is established during the titling of a vehicle, DMV will not charge an additional $15 on top of the $15 fee for the issuance of the title.  However, if the TOD designation is modified or revoked separate from titling the vehicle, the $15 fee will be collected. 

Revenue collected from fees pursuant to Section 56-19-420 are distributed as follows:

$5 of each fee must be placed in the State Highway Fund (Other Funds of DOT),

$5 of each fee must be placed in an earmarked account by the Comptroller General and distributed as discussed below, and

the remaining $5 is remitted to the General Fund.

The first $1,000,000 of the portion of the fee placed in an earmarked account is credited to the General Fund to offset a portion of state individual income tax revenue not collected pursuant to the subsistence allowance allowed pursuant to Section 12-6-1140(6).  The remainder of the earmarked account is allocated to DPS and used to support highway patrol programs.

Because the number of modifications and revocations of a TOD designation that will be made is unknown, the total increase in revenue to the General Fund, Other Funds of DOT, and Other Funds of DPS is undetermined.

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

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A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING part 4 to article 6, chapter 6, Title 62 SO AS TO PROVIDE FOR TRANSFER ON DEATH DESIGNATIONS FOR CERTAIN CATEGORIES OF TITLED PERSONAL PROPERTY; BY AMENDING SECTION 50-23-60, RELATING TO APPLICATIONS FOR CERTIFICATE OF TITLE FOR WATERCRAFT OR OUTBOARD MOTORS, SO AS TO PROVIDE FOR TRANSFER ON DEATH DESIGNATIONS; BY AMENDING SECTION 50-23-70, RELATING TO FEES FOR WATERCRAFT AND OUTBOARD MOTOR CERTIFICATES OF TITLE SO AS TO ESTABLISH A FEE FOR TRANSFER ON DEATH DESIGNATIONS; BY AMENDING SECTION 50-23-90, RELATING TO THE CONTENTS of WATERCRAFT AND OUTBOARD MOTOR  CERTIFICATES OF TITLE, SO AS TO REQUIRE CERTAIN INFORMATION REGARDING TRANSFER ON DEATH DESIGNATIONS; BY AMENDING SECTION 50-23-130, RELATING TO TRANSFER OF OWNERSHIP OF WATERCRAFT AND OUTBOARD MOTORS BY OPERATION OF LAW, SO AS TO INCLUDE TRANSFER ON DEATH DESIGNATIONS; BY AMENDING SECTION 56-19-290, RELATING TO CONTENTS OF a CERTIFICATE OF TITLE ISSUED BY THE DEPARTMENT OF MOTOR VEHICLES, SO AS TO REQUIRE CERTAIN INFORMATION REGARDING TRANSFER ON DEATH DESIGNATIONS; BY AMENDING SECTION 56-19-420, RELATING TO DEPARTMENT OF MOTOR VEHICLE FEES TO ISSUE OR TRANSFER A CERTIFICATE OF TITLE, SO AS TO ESTABLISH A FEE FOR TRANSFER ON DEATH DESIGNATIONS; AND BY AMENDING SECTION 62-6-101, RELATING TO DEFINITIONS, SO AS TO REVISE AND INCLUDE CERTAIN DEFINITIONS PERTAINING TO TRANSFERS ON DEATH FOR TITLED PERSONAL PROPERTY.

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

SECTION 1.  Article 6, Chapter 6, Title 62 of the S.C. Code is amended by adding:

    Part 4

    Transfers on Death for Titled Personal Property