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H. 3017
STATUS INFORMATION
General Bill
Sponsors: Reps. Kirsh and Mahaffey
Document Path: l:\council\bills\dka\3013dw07.doc
Introduced in the House on January 9, 2007
Currently residing in the House Committee on Labor, Commerce and Industry
Summary: Unemployment insurance liability
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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12/13/2006 House Prefiled
12/13/2006 House Referred to Committee on Labor, Commerce and Industry
1/9/2007 House Introduced and read first time HJ-23
1/9/2007 House Referred to Committee on Labor, Commerce and Industry
HJ-23
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 41-31-180 SO AS TO PROVIDE A PROCEDURE FOR REQUIRING COMPLIANCE OF A SUBCONTRACTOR REGARDING STATE UNEMPLOYMENT INSURANCE LIABILITY.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Article 1, Chapter 31, Title 41 is amended by adding:
"Section 41-31-180. (A) For purposes of this section, the terms 'owner', 'general contractor', 'contractor', and 'subcontractor' have the same meanings as provided in Title 42, the South Carolina Workers' Compensation Law.
(B) A general contractor and a higher tier subcontractor shall obtain proof from a lower tier subcontractor of compliance with Chapters 27 through 41 of this title when the lower tier subcontractor is providing services to the general contractor or a higher tier subcontractor. The commission shall provide liability or nonliability letters upon receipt of a request for determination of status as a liable employer from a lower tier subcontractor. Failure of the general contractor or a higher tier subcontractor to secure proof of compliance from a lower tier subcontractor results in the general contractor or the higher tier subcontractor being held liable for the payment of contributions on the wages which he would have been liable to pay if the employees of the lower tier subcontractor had been employed immediately by him.
(C) Notwithstanding another provision of law, upon the submission of documentation to the commission that a contractor or subcontractor has represented himself to a general contractor, contractor, or higher tier contractor as provided in Chapters 27 through 41 of this title at the time the contractor or subcontractor was engaged to perform work, the general contractor, contractor, or higher tier subcontractor is relieved of all liability under this title for workers employed by the lower tier subcontractor. There is no liability for an owner, a general contractor, or a higher tier subcontractor if a lower tier contractor or subcontractor is not liable for coverage.
(D) For an owner, a general contractor, a contractor, or a higher tier subcontractor not to be liable for coverage pursuant to this section, he shall receive certification of liability or nonliability from the lower tier subcontractor on a letter or form issued by the Employment Security Commission. The certification must be collected at the time a lower tier subcontractor is engaged to perform work and must be maintained in company records for a period of three years for review upon audit by the Employment Security Commission.
(E)(1) An owner, a general contractor, a contractor, or a subcontractor who makes a false statement or representation, which is required as provided by this section, knowing it to be false is deemed in violation of the provisions of Chapters 27 through 41 of this title.
(2) A lower tier contactor or subcontractor who knowingly and wilfully fails to notify, by certified mail, the general contractor, a higher tier subcontractor, or a contractor who was originally provided a certification of liability or nonliability of a change in liability within ten days after notice of the change is deemed in violation of Chapters 27 through 41 of this title.
(3) A lower tier contractor or subcontractor who knowingly and wilfully submits false contribution and wage reports or knowingly and wilfully provides a false notice of liability or nonliability as required in this section shall have his license or certificate revoked as a contractor or residential home builder under applicable provisions of Title 40. Upon expiration of the revocation period, the licensing entity of the contractor or subcontractor may reissue the license or certificate of the contractor or residential home builder in the same manner as for a license revoked under another provision of law."
SECTION 2. This act takes effect upon approval by the Governor.
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