Current Status Bill Number:
506Ratification Number: 498Act Number: 442Type of Legislation: General Bill GBIntroducing Body: SenateIntroduced Date: 19950214Primary Sponsor: SaleebyAll Sponsors: SaleebyDrafted Document Number: BBM\9869JM.95Date Bill Passed both Bodies: 19960530Date of Last Amendment: 19960530Governor's Action: SDate of Governor's Action: 19960618Subject: Workers' compensation
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ ------ 19960709 Act No. A442 ------ 19960618 Signed by Governor ------ 19960613 Ratified R498 Senate 19960530 Concurred in House amendment, enrolled for ratification House 19960530 Senate amendments amended, returned to Senate with amendment Senate 19960529 House amendments amended, returned to House with amendment House 19960522 Read third time, returned to Senate with amendment House 19960521 Amended, read second time House 19960515 Committee report: Favorable with 26 HLCI amendment House 19960229 Introduced, read first time, 26 HLCI referred to Committee Senate 19960228 Read third time, sent to House Senate 19960227 Amended, read second time, ordered to third reading with notice of general amendments Senate 19960208 Committee report: Favorable with 12 SLCI amendment Senate 19950214 Introduced, read first time, 12 SLCI referred to CommitteeView additional legislative information at the LPITS web site.
(A442, R498, S506)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 42-1-415 SO AS TO PROVIDE, AMONG OTHER THINGS, THAT UPON THE 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, 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 THE WORKERS' COMPENSATION LAW, AND TO PROVIDE FOR THE IMPOSITION OF THE PENALTIES FOR FRAUD UNDER CERTAIN CIRCUMSTANCES.
Be it enacted by the General Assembly of the State of South Carolina:
Workers' compensation; statutory employer; fraud; etc.
SECTION 1. The 1976 Code is amended by adding:
"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, 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 this title. 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 awards of compensation and medical benefits provided by this title. The higher tier subcontractor, contractor, project owner, or his insurance carrier may then 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 ninety 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, medical benefits, and reasonable expenses 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 prepared by 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 falsifying of information contained in standard forms submitted pursuant to this section must be considered fraud and subjects the person responsible for filing such false documentation to the penalties for fraud as provided by law. Additionally, a subcontractor who falsely documents workers' compensation insurance 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 falsely documents workers' compensation insurance. 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."
SECTION 2. This act takes effect upon approval of the Governor.
Approved the 18th day of June, 1996.