S*303 Session 112 (1997-1998)
S*0303(Rat #0122, Act #0065 of 1997) General Bill, By Courtney and Land
A BILL TO AMEND SECTION 42-1-415, CODE OF LAWS OF SOUTH CAROLINA, 1976,
RELATING TO SUBMISSION OF DOCUMENTATION TO THE WORKERS' COMPENSATION
COMMISSION THAT A CONTRACTOR OR SUBCONTRACTOR HAS REPRESENTED HIMSELF TO A
HIGHER TIER SUBCONTRACTOR, CONTRACTOR, OR PROJECT OWNER AS HAVING WORKERS'
COMPENSATION INSURANCE AT THE TIME THE CONTRACTOR OR SUBCONTRACTOR WAS ENGAGED
TO PERFORM WORK AND TO REIMBURSEMENT FROM THE UNINSURED EMPLOYERS' FUND, SO AS
TO, AMONG OTHER THINGS, DELETE THE PROVISION THAT ONLY CONTRACTOR OR
SUBCONTRACTOR WHO REPRESENTED HIMSELF AS HAVING WORKERS' COMPENSATION
INSURANCE MAY BE CONSIDERED A STATUTORY EMPLOYER FOR CLAIMS FILED BY HIS
EMPLOYEES UNDER TITLE 42, PROVIDE INSTEAD THAT THE HIGHER TIER SUBCONTRACTOR
OR CONTRACTOR, OR PROJECT OWNER MUST BE RELIEVED OF LIABILITY UNDER TITLE 42
EXCEPT AS SPECIFICALLY PROVIDED IN HIS SECTION, DELETE CERTAIN OTHER LANGUAGE
AND PROVISIONS, PROVIDE THAT THE UNINSURED EMPLOYERS' FUND SHALL ASSUME
RESPONSIBILITY FOR CLAIMS WITHIN THIRTY DAYS, RATHER THAN NINETY DAYS, OF A
DETERMINATION OF RESPONSIBILITY MADE BY THE WORKERS' COMPENSATION COMMISSION,
PROVIDE FOR THE "KNOWING AND WILFUL" FALSIFYING OF CERTAIN INFORMATION, THE
"KNOWING AND WILFUL" FAILURE TO PROVIDE CERTAIN NOTIFICATION, AND CERTAIN
"KNOWING AND WILFUL" FALSE DOCUMENTATION, AND PROVIDE FOR CERTAIN
PENALTIES.-AMENDED TITLE
02/04/97 Senate Introduced and read first time SJ-9
02/04/97 Senate Referred to Committee on Judiciary SJ-9
04/23/97 Senate Committee report: Favorable with amendment
Judiciary SJ-10
04/29/97 Senate Amended SJ-28
04/29/97 Senate Read second time SJ-28
04/29/97 Senate Ordered to third reading with notice of
amendments SJ-28
04/30/97 Senate Amended SJ-59
04/30/97 Senate Read third time and sent to House SJ-59
05/01/97 House Introduced and read first time HJ-8
05/01/97 House Referred to Committee on Labor, Commerce and
Industry HJ-8
05/14/97 House Committee report: Favorable Labor, Commerce and
Industry HJ-5
05/20/97 House Read second time HJ-5
05/21/97 House Read third time and enrolled HJ-19
06/04/97 Ratified R 122
06/10/97 Signed By Governor
06/10/97 Effective date 06/10/97
06/24/97 Copies available
06/24/97 Act No. 65
(A65, R122, S303)
AN ACT TO AMEND SECTION 42-1-415, CODE OF LAWS OF
SOUTH CAROLINA, 1976, RELATING TO SUBMISSION OF
DOCUMENTATION TO THE WORKERS' COMPENSATION
COMMISSION THAT A CONTRACTOR OR SUBCONTRACTOR
HAS REPRESENTED HIMSELF TO A HIGHER TIER
SUBCONTRACTOR, CONTRACTOR, OR PROJECT OWNER AS
HAVING WORKERS' COMPENSATION INSURANCE AT THE TIME
THE CONTRACTOR OR SUBCONTRACTOR WAS ENGAGED TO
PERFORM WORK AND TO REIMBURSEMENT FROM THE
UNINSURED EMPLOYERS' FUND, SO AS TO, AMONG OTHER
THINGS, DELETE THE PROVISION THAT ONLY THE
CONTRACTOR OR SUBCONTRACTOR WHO REPRESENTED
HIMSELF AS HAVING WORKERS' COMPENSATION INSURANCE
MAY BE CONSIDERED A STATUTORY EMPLOYER FOR CLAIMS
FILED BY HIS EMPLOYEES UNDER TITLE 42, PROVIDE INSTEAD
THAT THE HIGHER TIER SUBCONTRACTOR, CONTRACTOR, OR
PROJECT OWNER MUST BE RELIEVED OF LIABILITY UNDER
TITLE 42 EXCEPT AS SPECIFICALLY PROVIDED IN THIS
SECTION, DELETE CERTAIN OTHER LANGUAGE AND
PROVISIONS, PROVIDE THAT THE UNINSURED EMPLOYERS'
FUND SHALL ASSUME RESPONSIBILITY FOR CLAIMS WITHIN
THIRTY DAYS, RATHER THAN NINETY DAYS, OF A
DETERMINATION OF RESPONSIBILITY MADE BY THE
WORKERS' COMPENSATION COMMISSION, PROVIDE FOR THE
"KNOWING AND WILFUL" FALSIFYING OF CERTAIN
INFORMATION, THE "KNOWING AND WILFUL"
FAILURE TO PROVIDE CERTAIN NOTIFICATION, AND CERTAIN
"KNOWING AND WILFUL" FALSE DOCUMENTATION,
AND PROVIDE FOR CERTAIN PENALTIES.
Be it enacted by the General Assembly of the State of South Carolina:
Abrogation of liability, exceptions, penalties, etc.
SECTION 1. Section 42-1-415 of the 1976 Code, as added by Act 442
of 1996, is amended to read:
"Section 42-1-415. (A) Notwithstanding any other provision of
law, upon the submission of documentation to the commission that a
contractor or subcontractor has represented himself to a higher tier
subcontractor, contractor, or project owner as having workers'
compensation insurance at the time the contractor or subcontractor was
engaged to perform work, the higher tier subcontractor, contractor, or
project owner must be relieved of any and all liability under this title
except as specifically provided in this section. In the event that employer
is uninsured, regardless of the number of employees that employer has,
the higher tier subcontractor, contractor, project owner, or his insurance
carrier shall in the first instance pay all benefits due under this title. The
higher tier subcontractor, contractor, project owner, or his insurance
carrier may petition the commission to transfer responsibility for
continuing compensation and benefits to the Uninsured Employers' Fund.
The Uninsured Employers' Fund shall assume responsibility for claims
within thirty days of a determination of responsibility made by the
commission. The higher tier subcontractor, contractor, or project owner
must be reimbursed from the Uninsured Employers' Fund as created by
Section 42-7-200 for compensation and medical benefits as may be
determined by the commission. Any disputes arising as a result of claims
filed under this section must be determined by the commission.
(B) To qualify for reimbursement under this section, the higher tier
subcontractor, contractor, or project owner must collect documentation of
insurance as provided in subsection (A) on a standard form acceptable to
the commission. The documentation must be collected at the time the
contractor or subcontractor is engaged to perform work and must be
turned over to the commission at the time a claim is filed by the injured
employee.
(C) The knowing and wilful falsifying of information contained in
standard forms submitted pursuant to this section must be considered
fraud and subjects the person responsible for filing the false
documentation to the penalties for fraud as provided by law. Knowing
and wilful failure to notify, by certified mail, the higher tier subcontractor,
contractor, or project owner who originally was provided documentation
of workers' compensation coverage of a lapse in coverage within five days
after the lapse is considered fraud and subjects the contractor or
subcontractor who represented himself as having workers' compensation
insurance to the penalties for fraud provided by law. Additionally, a
contractor or subcontractor who knowingly and wilfully falsely
documents workers' compensation insurance or knowingly and wilfully
fails to provide notice of lapse in workers' compensation coverage as
specified in this section, or any contractor or subcontractor who refuses
to reimburse the Uninsured Employers' Fund for a claim paid on its behalf
shall suffer the revocation of his license or certificate as a contractor or
residential home builder under applicable provisions of Title 40; provided,
however, notwithstanding any other provision of law, the license or
certificate of a contractor or residential home builder shall be revoked for
a period of two years when the contractor or subcontractor knowingly and
wilfully falsely documents workers' compensation insurance or knowingly
or wilfully fails to provide notice of lapse in workers' compensation
coverage as specified in this section. Upon expiration of the two-year
revocation period, or when the license or certificate of any contractor or
subcontractor is revoked for refusal to reimburse the Uninsured
Employers' Fund for a claim paid on its behalf, 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 any other
revoked license.
(D) However, nothing in this section shall be construed to abrogate the
immunity to tort liability of any subcontractor under this title or any
higher tier subcontractor, contractor, or project owner who may be
considered a statutory employer as provided by Sections 42-1-400,
42-1-410, 42-1-420, 42-1-430, and 42-1-450."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Approved the 10th day of June, 1997. |