South Carolina General Assembly
116th Session, 2005-2006

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A250, R257, S511

STATUS INFORMATION

General Bill
Sponsors: Senator Richardson
Document Path: l:\council\bills\bbm\10682mm05.doc
Companion/Similar bill(s): 3069

Introduced in the Senate on February 17, 2005
Introduced in the House on April 19, 2005
Passed by the General Assembly on March 22, 2006
Governor's Action: March 24, 2006, Signed

Summary: Insurance proceeds to reconstruct damaged property

HISTORY OF LEGISLATIVE ACTIONS 

     Date      Body   Action Description with journal page number
-------------------------------------------------------------------------------
   2/17/2005  Senate  Introduced and read first time SJ-7
   2/17/2005  Senate  Referred to Committee on Judiciary SJ-7
   4/13/2005  Senate  Committee report: Favorable Judiciary SJ-17
   4/14/2005  Senate  Read second time SJ-13
   4/14/2005  Senate  Unanimous consent for third reading on next legislative 
                        day SJ-13
   4/15/2005  Senate  Read third time and sent to House SJ-1
   4/19/2005  House   Introduced and read first time HJ-19
   4/19/2005  House   Referred to Committee on Labor, Commerce and Industry 
                        HJ-19
   3/15/2006  House   Committee report: Favorable Labor, Commerce and Industry 
                        HJ-95
   3/16/2006          Scrivener's error corrected
   3/21/2006  House   Read second time HJ-18
   3/22/2006  House   Read third time and enrolled HJ-11
   3/23/2006          Ratified R 257
   3/24/2006          Signed By Governor
   3/28/2006          Copies available
   3/28/2006          Effective date See Act for Effective Date
    4/5/2006          Act No. 250

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

2/17/2005
4/13/2005
3/15/2006
3/16/2006

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

(A250, R257, S511)

AN ACT TO AMEND SECTION 27-31-250, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO USE OF INSURANCE PROCEEDS TO RECONSTRUCT DAMAGED PROPERTY GOVERNED BY THE HORIZONTAL PROPERTY ACT, SO AS TO PROVIDE FOR REPAIR OR RECONSTRUCTION UPON A VOTE OF EIGHTY PERCENT OF THE CO-OWNERS, OR MORE IF REQUIRED BY THE PROPERTY BYLAWS, AND TO PROVIDE, FURTHER, FOR DISTRIBUTION OF INSURANCE PROCEEDS.

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

Application of insurance after rebuilding

SECTION    1.    Section 27-31-250 of the 1976 Code is amended to read:

"Section 27-31-250.    (A)    A portion of the property for which insurance is required pursuant to Section 27-31-240 and which is damaged or destroyed must be repaired or replaced promptly by the council of co-owners unless:

(1)    repair or replacement is illegal under a state statute or local health ordinance; or

(2)    eighty percent of the co-owners, including the owner of an apartment which is not to be rebuilt, vote not to rebuild; except that the property bylaws may expressly require a percentage greater, but not less than, eighty percent of the co-owners.

(B)    The cost of repair or replacement in excess of insurance proceeds and reserve must be considered a common expense.

(C)    If the entire property is not repaired or replaced, the insurance proceeds:

(1)    attributable to the damaged common elements must be used to restore the damaged area to a condition compatible with the remainder of the property;

(2)    attributable to apartments and limited common elements that are not rebuilt must be distributed to the owners of those apartments and to the owners of those apartments to which limited common elements were allocated, or to the lienholders, as their interests may appear;

(3)    remaining must be distributed to all of the co-owners or lienholders, as their interests may appear, in proportion to the percentage as described in Section 27-31-60.

(D)    If the co-owners vote not to rebuild an apartment, that apartment's allocated interest must be reallocated automatically upon the vote and the council of co-owners promptly shall prepare, execute, and record an amendment to the master deed reflecting the reallocations."

Time effective

SECTION    2.    This act takes effect upon approval by the Governor and applies to all horizontal properties governed by the Horizontal Property Act, notwithstanding a provision in the master deed or bylaws to the contrary.

Ratified the 23rd day of March, 2006.

Approved the 24th day of March, 2006.

__________


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