South Carolina Legislature


 

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H 3406
Session 124 (2021-2022)


H 3406  General Bill, By King

Similar(H 3407)
A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-17-780 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR SERVICE CONTRACTNext PROVIDERS TO CLASSIFY A DEFECT NOT DISCOVERED BEFORE THE EFFECTIVE DATE OF THE SERVICE PreviousCONTRACTNext AS A PREEXISTING CONDITION AND TO PROVIDE A PENALTY; AND BY ADDING SECTION 38-78-55 SO AS TO PROVIDE THAT A DEFECT NOT DISCOVERED THIRTY DAYS PRIOR TO THE EFFECTIVE PREEXISTING CONDITION ON PROPERTY COVERED UNDER A SERVICE PreviousCONTRACTNext MAY NOT BE CLASSIFIED AS A PREEXISTING CONDITION.

12/09/20 House Prefiled 12/09/20 House Referred to Committee on Labor, Commerce and Industry 01/12/21 House Introduced and read first time (House Journal-page 185) 01/12/21 House Referred to Committee on Labor, Commerce and Industry (House Journal-page 185)


VERSIONS OF THIS BILL

12/9/2020



H. 3406

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 16-17-780 SO AS TO PROVIDE THAT IT IS UNLAWFUL FOR SERVICE PreviousCONTRACTNext PROVIDERS TO CLASSIFY A DEFECT NOT DISCOVERED BEFORE THE EFFECTIVE DATE OF THE SERVICE PreviousCONTRACTNext AS A PREEXISTING CONDITION AND TO PROVIDE A PENALTY; AND BY ADDING SECTION 38-78-55 SO AS TO PROVIDE THAT A DEFECT NOT DISCOVERED THIRTY DAYS PRIOR TO THE EFFECTIVE PREEXISTING CONDITION ON PROPERTY COVERED UNDER A SERVICE PreviousCONTRACTNext MAY NOT BE CLASSIFIED AS A PREEXISTING CONDITION.

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

SECTION    1.    Article 7, Chapter 17, Title 16 of the 1976 Code is amended by adding:

    "Section 16-17-780.    A service PreviouscontractNext provider or an agent of a service PreviouscontractNext provider operating within this State who attempts to establish that a defect not discovered before the effective date of the service PreviouscontractNext is a preexisting condition pursuant to the provisions of Section 38-78-55 is guilty of a misdemeanor and, upon conviction, must be fined not more than:

        (1)    one thousand dollars for a first offense;

        (2)    two thousand dollars for a second offense; and

        (3)    three thousand dollars for a third or subsequent offense. For an offense to be a third or subsequent offense, only those offenses that occurred within a period of ten years preceding the date of the last offense constitute a prior offense within the meaning of this section."

SECTION    2.    Chapter 78, Title 38 of the 1976 Code is amended by adding:

    "Section 38-78-55.    (A)    A provider who discovers a defect on the property covered under a service PreviouscontractNext before the effective date of the PreviouscontractNext must notify the PreviouscontractNext holder of the preexisting condition. The PreviouscontractNext holder may elect to cancel the service PreviouscontractNext without penalty within thirty days of receipt of the notification. The service PreviouscontractNext provider may not classify any other defects as preexisting conditions if the defects were not listed on the notice provided to the PreviouscontractNext holder and must cover these defects in the manner provided for in the service PreviouscontractNext.

    (B)    Nothing in this section may be construed to limit the ability of the Previouscontract holder to remedy a defect and have the preexisting condition exception to coverage removed with the agreement of the provider after a subsequent inspection of the defect."

SECTION    3.    This act takes effect upon approval by the Governor.

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