South Carolina General Assembly
117th Session, 2007-2008
Sponsors: Senators Hawkins and Anderson
Document Path: l:\s-res\jdh\011payd.kmm.doc
Introduced in the Senate on January 8, 2008
Currently residing in the Senate Committee on Judiciary
Summary: Payday loans
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
1/8/2008 Senate Introduced and read first time SJ-76
1/8/2008 Senate Referred to Committee on Judiciary SJ-76
VERSIONS OF THIS BILL
9 A BILL
11 TO AMEND CHAPTER 17 OF TITLE 16 OF THE 1976 CODE,
12 RELATING TO OFFENSES AGAINST PUBLIC POLICY, BY
13 ADDING ARTICLE 6 RELATING TO PAYDAY LOANS, TO
14 PROVIDE THAT IT IS UNLAWFUL FOR A PERSON TO
15 PROVIDE PAYDAY LOANS, TO PROVIDE THAT A
16 VIOLATION OF THIS ARTICLE IS PUNISHABLE BY A FINE
17 OF NO LESS THAN ONE THOUSAND DOLLARS AND NO
18 MORE THAN FIVE THOUSAND DOLLARS AND
19 IMPRISONMENT FOR NOT MORE THAN THREE YEARS,
20 TO PROVIDE THAT THE COURT MAY REQUIRE A PERSON
21 CONVICTED OF A VIOLATION OF THIS ARTICLE TO PAY
22 RESTITUTION, TO PROVIDE THAT THE STATE MAY
23 RECOVER CIVIL PENALTIES FROM A PERSON THAT IS
24 CONVICTED OF A VIOLATION OF THIS ARTICLE, TO
25 PROVIDE THAT THE PROCEEDS OF ALL LOANS MADE BY
26 A PERSON CONVICTED OF A VIOLATION OF THIS
27 ARTICLE ARE TAXABLE TO THE VIOLATOR AS INCOME,
28 TO PROVIDE THAT THE LOCATION WHERE PAYDAY
29 LOANS ARE PROVIDED IS A PUBLIC NUISANCE, AND TO
30 PROVIDE THAT A PERSON CONVICTED OF A VIOLATION
31 OF THIS ARTICLE IS PROHIBITED FROM HAVING OR
32 OBTAINING A CERTIFICATE OF AUTHORITY FROM THE
33 SECRETARY OF STATE OR A BUSINESS LICENSE FOR
34 ANY BUSINESS.
36 Be it enacted by the General Assembly of the State of South
39 SECTION 1. Chapter 17 of Title 16 of the 1976 Code is amended
40 by adding:
42 “ARTICLE 6
2 PAYDAY LOANS
4 Section 16-17-330. As used in this article:
5 (1) “Check” has the same meaning as in Section 36-3-104;
6 (2) “Payday loan” means a transaction pursuant to a written
7 agreement involving the following combination of activities in
8 exchange for a fee:
9 (a) a person accepting a check from the maker; and
10 (b) holding the check for a period of time before
11 presentment for payment or deposit.
12 (3) “Person” means an individual, group of individuals,
13 partnership, association, corporation, or other business unit or legal
15 (4) “Location” means the entire space in which payday loans
16 are provided.
18 Section 16-17-340. It is unlawful for a person to provide payday
19 loans. A person found guilty of a violation of this section is guilty
20 of a misdemeanor and, upon conviction, shall be punished by a
21 fine of not less than one thousand dollars nor more than five
22 thousand dollars and imprisoned for not more than three years.
23 The court may also order the violator to pay restitution to each
24 person to whom the violator provided payday loans. The
25 restitution must include the principal amount of the loan and any
26 charges, fees, or interest that the violator collected.
28 Section 16-17-350. In addition to any other penalties imposed on
29 a person convicted of a violation of this article, the State may
30 recover a civil penalty equal to three times the amount of any
31 interest or charges associated with all payday loans the violator
32 provided. A civil action to collect the penalty provided for in this
33 section may be initiated by the Attorney General or the solicitor for
34 the circuit in which the violation occurred.
36 Section 16-17-360. The proceeds of all payday loans made by a
37 person convicted of a violation of this article are taxable to the
38 violator as income at the rate of seventy-five percent times the
39 amount of the proceeds.
41 Section 16-17-370. The location of a place of business engaged
42 in payday lending is declared a public nuisance.
1 Section 16-17-380. A person who provides payday loans is
2 prohibited from maintaining or obtaining any certificate of
3 authority from the Secretary of State or a license to operate any
4 lawful business by any licensing authority in the State.
6 SECTION 2. If any section, subsection, paragraph, subparagraph,
7 sentence, clause, phrase, or word of this act is for any reason held
8 to be unconstitutional or invalid, such holding shall not affect the
9 constitutionality or validity of the remaining portions of this act,
10 the General Assembly hereby declaring that it would have passed
11 this act, and each and every section, subsection, paragraph,
12 subparagraph, sentence, clause, phrase, and word thereof,
13 irrespective of the fact that any one or more other sections,
14 subsections, paragraphs, subparagraphs, sentences, clauses,
15 phrases, or words hereof may be declared to be unconstitutional,
16 invalid, or otherwise ineffective.
18 SECTION 3. The General Assembly finds that the sections
19 presented in this act constitute one subject as required by Article
20 III, Section 17 of the South Carolina Constitution, in particular
21 finding that each change and each topic relates directly to or in
22 conjunction with other sections to the subject of payday loans as
23 clearly enumerated in the title.
24 The General Assembly further finds that a common purpose or
25 relationship exists among the sections, representing a potential
26 plurality but not disunity of topics, notwithstanding that reasonable
27 minds might differ in identifying more than one topic contained in
28 the act.
30 SECTION 4. Chapter 39 of Title 34 is repealed.
32 SECTION 5. This act takes effect upon approval by the Governor.