Current Status Bill Number:303 Ratification Number:122 Act Number:65 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19970204 Primary Sponsor:Courtney All Sponsors:Courtney and Land Drafted Document Number:bbm\9098jm.97 Date Bill Passed both Bodies:19970521 Date of Last Amendment:19970430 Governor's Action:S Date of Governor's Action:19970610 Subject:Workers' compensation, contractor or subcontractor, higher tier; insurance claims; Construction, Employers and Employees
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
------ 19970630 Act No. A65
------ 19970610 Signed by Governor
------ 19970604 Ratified R122
House 19970521 Read third time, enrolled for
ratification
House 19970520 Read second time
House 19970514 Committee report: Favorable 26 HLCI
House 19970501 Introduced, read first time, 26 HLCI
referred to Committee
Senate 19970430 Amended, read third time,
sent to House
Senate 19970429 Read second time, ordered to
third reading with notice of
general amendments
Senate 19970429 Committee amendment adopted
Senate 19970423 Committee report: Favorable with 11 SJ
amendment
Senate 19970204 Introduced, read first time, 11 SJ
referred to Committee
View additional legislative information at the LPITS web site.
(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.