South Carolina Court Administration
South Carolina Supreme Court
Columbia, South Carolina

MEMORANDUM

This past legislative term there was legislation passed regarding the collection, distribution and reporting of court generated revenues. There were several temporary provisos that have been repeated in previous General Appropriations Acts and are repeated again in the 2016 - 2017 General Appropriations Act. These provisos are enforcement in nature and have no effect on the amounts of actual surcharges and assessments.

In addition, S.C. Code §14-1-240, which provides for the $5 Criminal Justice Academy (CJA) fee, contains a sunset provision, and terminates June 30, 2016. Therefore, the $5 CJA fee will no longer be assessed on criminal and misdemeanor traffic offense convictions after June 30, 2016. The conviction date is determinative of the application of the $5 CJA surcharge, not the charging date. Accordingly, if a qualifying conviction is made prior to or on June 30, 2016, the $5 surcharge will apply regardless of whether the money is collected prior to or after that date, such as in the case of scheduled time payments, or suspended/probationary sentences. If a conviction is obtained after that date, the $5 CJA surcharge will not apply, regardless of when the charge was made.

Finally, Act No. 88 of 2015 added the "Transportation Network Act" to the S.C. Code at Chapter 23 of Title 58. Section 58-23-1680 (B) requires that 75% of each fine generated from a violation the Transportation Network Company Act, must be remitted to the Office of Regulatory Staff to be used for enforcement operations. The County retains the remaining 25% of the civil fine. Violations of the Act are civil fines, and no assessments or surcharges apply. Magistrates have jurisdiction over contested violations under this section, and those judges are prohibited from suspending or reducing the statutory civil penalties.

The entire fees and assessments memorandum for fiscal year 2016 - 2017 will be posted on the Judicial Department website at www.sccourts.org under “Court News.”

1.  Effective July 1, 2016, Section 61.6 of the Temporary Provisions of the 2016 - 2017 General Appropriations Act requires that every person placed on probation on or after July 1, 2003, who is represented by a public defender or appointed counsel, shall be assessed a fee of $500.00.  These funds shall be collected by the clerk on a monthly basis and forwarded to the Commission on Indigent Defense.

2.  Effective July 1, 2016, Section 61.7 of the Temporary Provisions of the 2016 - 2017 General Appropriations Act provides a procedure for the collection, distribution, and reporting of a $40 application fee for appointed counsel in civil actions. The Proviso requires that any person to whom counsel has been provided in any termination of parental rights, abuse and neglect, or any other civil court action, or the parents or legal guardians of a juvenile brought before any court, file application for court appointed counsel, and such representation creates a claim against the assets and the estate of the person who is provided counsel, or the parents or legal guardians of a juvenile provided counsel. Finally, this Proviso provides that any unpaid representation fees may be reduced to judgment against those individuals, parents, or legal guardians.

3.  Effective July 1, 2016, Section 98.9 of the Temporary Provisions of the 2016 - 2017 General Appropriations Act provides that if a municipality fails to submit the audited financial requirements required under § 14-1-208 to the State Treasurer within 13 months of the end of their fiscal year, the State Treasurer must withhold all State payments to that municipality until the required audited financial statement is received.  Section 98.9 is provided below.

98.9.    (TREAS: Penalties for Non-reporting) If the State Treasurer receives an audit report from either a county or a municipality that contains a “significant finding” related to court fine reports or remittances to the State Treasurer’s Office, the requirements of proviso 117.55 shall be followed if an amount due is specified, otherwise the State Treasurer shall withhold 25% of all state payments to the county or municipality until the estimated deficiency has been satisfied.

If a county or municipality is more than 90 days delinquent remitting court fines, the State Treasurer shall withhold 25% of state funding for that county or municipality until all monthly reports are current.

After 90 days, any funds held by the State Treasurer’s Office will be made available to the State Auditor to conduct an audit of the entity for the purpose of determining an amount due to the State Treasurer’s Office, if any

4.  Effective July 1, 2016, Section 105.4 of the Temporary Provisions of the 2016 - 2017 General Appropriations Act provides for the annual audits of court fees and fines by the State Auditor, and authorizes the State Auditor to consult with the State Treasurer to determine the jurisdictions to be audited. Section 105.4 is provided below.

105.4. (BCB/AUD: Annual Audit of Court Fees and Fines Reports) The State Auditor shall conduct a minimum of fifteen (15) audits annually of county treasurers, municipal treasurers, county clerks of court, magistrates and/or municipal courts as required by Section 14-1-210 of the 1976 Code and allowed by Proviso 118.4 of this act; however, the State Auditor shall not be required to spend more than the annual amount of $250,000, received from the State Treasurer to conduct the said audits pursuant to Section 14-1-210 of the 1976 Code. The State Auditor may contract with one or more CPA/accounting firms to conduct the required audits. The State Auditor shall consult with the State Treasurer to determine the jurisdictions to be audited in the current fiscal year. Jurisdictions may be selected randomly or based on an instance in the current or previous fiscal year of failing to report, incorrectly reporting or under remitting amounts owed. The funds transferred to the State Auditor by the State Treasurer shall not be used for any purpose other than to conduct the described audits and report whether or not the assessments, surcharges, fees, fines, forfeitures, escheatments, or other monetary penalties imposed and/or mandated are properly collected and remitted to the State. Any unexpended balance on June thirtieth of the prior fiscal year shall be carried forward and must be expended for the same purpose during the current fiscal year. The State Auditor shall annually report by October 1, its findings of the jurisdictions audited to the Senate Finance Committee and the House Ways and Means Committee.

5.   Effective July 1, 2016, Section 117.51 of the Temporary Provisions of the 2016 - 2017 General Appropriations Act authorizes the State Office of Victim Assistance to conduct an audit on any county treasurer, municipal treasurer, county clerk of court, magistrate, or municipal court that the State Auditor has determined has not properly allocated revenue generated from court fines, fines, and assessments to the crime victim funds or has not properly expended crime victim funds pursuant to State law. Section 117.51 is provided below.

117.51.   (GP: Assessment Audit / Crime Victim Funds)  If the State Auditor finds that any county treasurer, municipal treasurer, county clerk of court, magistrate, or municipal court has not properly allocated revenue generated from court fines, fines, and assessments to the crime victim funds or has not properly expended crime victim funds, pursuant to Sections 14-1-206(B)(D), 14-1-207(B)(D), 14-1-208(B)(D), and 14-1-211(B) of the 1976 Code, the State Auditor shall notify the State Office of Victim Assistance.  The State Office of Victim Assistance is authorized to conduct an audit which shall include both a programmatic review and financial audit of any entity or non-profit organization receiving victim assistance funding based on the referrals from the State Auditor or complaints of a specific nature received by the State Office of Victim Assistance to ensure that crime victim funds are expended in accordance with the law.  Guidelines for the expenditure of these funds shall be developed by the Victim Services Coordinating Council.  The Victim Services Coordinating Council shall develop these guidelines to ensure any expenditure which meets the parameters of Title 16, Chapter 3, Article 15 is an allowable expenditure.  Any local entity or non-profit organization that receives funding from revenue generated from crime victim funds is required to submit their budget for the expenditure of these funds to the State Office of Victim Assistance within thirty days of the budget's approval by the governing body of the entity or non-profit organization.  Failure to comply with this provision shall cause the State Office of Victim Assistance to initiate a programmatic review and a financial audit of the entity's or non-profit organization's expenditures of victim assistance funds.  Additionally, the State Office of Victim Assistance will place the name of the non-compliant entity or non-profit organization on their website where it shall remain until such time as they are in compliance with the terms of this proviso.  Any entity or non-profit organization receiving victim assistance funding must cooperate and provide expenditure/program data requested by the State Office of Victim Assistance.  If the State Office of Victim Assistance finds an error, the entity or non-profit organization has ninety days to rectify the error.  An error constitutes an entity or non-profit organization spending victim assistance funding on unauthorized items as determined by the State Office of Victims Assistance.  If the entity or non-profit organization fails to cooperate with the programmatic review and financial audit or to rectify the error within ninety days, the State Office of Victim Assistance shall assess and collect a penalty in the amount of the unauthorized expenditure plus $1,500 against the entity or non-profit organization for improper expenditures.  This penalty plus $1,500 must be paid within thirty days of the notification by the State Office of Victim Assistance to the entity or non-profit organization that they are in non-compliance with the provisions of this proviso.  All penalties received by the State Office of Victim Assistance shall be credited to the General Fund of the State.  If the penalty is not received by the State Office of Victim Assistance within thirty days of the notification, the political subdivision will deduct the amount of the penalty from the entity or non-profit organization's subsequent fiscal year appropriation.

6.   Effective July 1, 2016, Section 117.109 of the Temporary Provisions of the 2016 - 2017 General Appropriations Act authorizes the SC Criminal Justice Academy to cease providing services to all law enforcement officers of law enforcement agencies encompassed within a political subdivision for failing to comply with proper remittance of court fee and fine money. Section 117.109 is provided below.

117.109  (GP: Remittance of Court Fee and Fine Money)  County and city treasurers are required to remit to the State Treasurer set percentages of revenues generated by assessments imposed by 14-1-206(A), 14-1-207(A), 14-1-208(A). This remittance is required on a monthly basis by the 15th day of each month.

Should a county and/or city treasurer fail to make the required remittance, the SC Criminal Justice Academy shall cease providing services to all law enforcement officers of all law enforcement agencies encompassed within the political subdivision if they have failed to make remittance for two consecutive months in a fiscal year.  The finance director shall certify by July first, under oath, that the county and/or city has remitted all funds or the SC Criminal Justice Academy shall withhold services until such time as remittance is made.

Copies of any of the legislation referenced above may be obtained by visiting the Legislative website at http://www.scstatehouse.gov.

The enclosed memorandum has been updated to reflect these amendments and discusses these changes in more detail. This memorandum supersedes prior memoranda from Court Administration on the collection and distribution of court generated revenue. It attempts to outline and explain the statutory procedures for collecting and distributing revenues in the circuit, family, magistrate, and municipal courts as well as the register of deeds. Examples of several of the distributions covered in the text of the memorandum appear in the attachments.

The actual distribution of revenue generated by the circuit, family, and magistrate courts is handled by the county treasurer in most cases. City treasurers disburse monies generated by the municipal courts. The treasurers are required to remit the funds to the State Treasurer monthly on such forms and in such manner as is required by him. The county treasurer can determine which funds should be transmitted to the State Treasurer by referring to the clerks' South Carolina Revenue Report, and the magistrate's South Carolina Revenue Report, both of which are generated by the SC Judicial Department's Case Management System (CMS). A form fillable version of the remittance form to the State Treasurer from the County Treasurer may be accessed at the link below. Also, a judge’s total fine and assessment calculator is included as “Attachment O.”  http://treasurer.sc.gov/media/29003/MagistrateOnlineForm.pdf

In this discussion of the distribution of funds, the general rule for each court is stated and followed by an explanation of the statutory exceptions for distribution. The outline which precedes the memorandum summarizes its contents. Please note in the memorandum specific time guidelines pertaining to the transmittal of these revenues. Strict, prompt adherence to the reporting guidelines is required.

Please provide copies of this memorandum to all members of your staff whose duties relate to the collection or distribution of court revenues. If you or your staff has any questions concerning the collection or distribution of revenue, do not hesitate to contact this office.

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