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COMMITTEE REPORT
April 30, 2003
S. 95
S. Printed 4/30/03--S.
Read the first time January 14, 2003.
To whom was referred a Bill (S. 95) to amend Section 15-3-640, Code of Laws of South Carolina, 1976, relating to legal actions based upon a defective or unsafe condition of an improvement to real property, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking the bill in its entirety and inserting therein the following:
TO AMEND SECTION 15-3-640, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEGAL ACTIONS BASED UPON A DEFECTIVE OR UNSAFE CONDITION OF AN IMPROVEMENT TO REAL PROPERTY, SO AS TO ESTABLISH AN OUTSIDE LIMITATION OF TEN YEARS AFTER SUBSTANTIAL COMPLETION OF THE IMPROVEMENT FOR BRINGING THE ACTION.
SECTION 1. Section 15-3-640 of the 1976 Code is amended to read:
"Section 15-3-640. No actions to recover damages based upon or arising out of the defective or unsafe condition of an improvement to real property may be brought more than thirteen ten years after substantial completion of such an the improvement. For purposes of this section, an action based upon or arising out of the defective or unsafe condition of an improvement to real property includes:
(1) an action to recover damages for breach of a contract to construct or repair an improvement to real property;
(2) an action to recover damages for the negligent construction or repair of an improvement to real property;
(3) an action to recover damages for personal injury, death, or damage to property;
(4) an action to recover damages for economic or monetary loss;
(5) an action in contract or in tort or otherwise;
(6) an action for contribution or indemnification for damages sustained on account of an action described in this subdivision;
(7) an action against a surety or guarantor of a defendant described in this section;
(8) an action brought against any current or prior owner of the real property or improvement, or against any other person having a current or prior interest in the real property or improvement; or
(9) an action against owners or manufacturers of components, or against any person furnishing materials, or against any person who develops real property, or who performs or furnishes the design, plans, specifications, surveying, planning, supervision, testing, or observation of construction, or construction of an improvement to real property, or a repair to an improvement to real property.
This section describes an outside limitation of thirteen ten years after the substantial completion of the improvement, within which normal statutes of limitations continue to run.
Any A building permit for the construction of an improvement to real property shall must contain in bold type notice to the owner or possessor of the property of his rights under this section to contract for a guarantee of the structure being free from defective or unsafe conditions beyond thirteen ten years after substantial completion of the improvement. The Department of Consumer Affairs shall publish in conspicuous places the right of any an owner or possessor to contract for such extended liability under this section. Nothing in this section shall prohibit any prohibits a person from entering into any a contractual agreement prior to the substantial completion of the improvement which extends any guarantee of a structure or component being free from defective or unsafe conditions beyond thirteen ten years after substantial completion of the improvement or component.
For any improvement to real property, a certificate of occupancy issued by a county or municipality shall constitute proof of substantial completion of the improvement under the provisions of Section 15-3-630, unless the contractor and owner, by written agreement, establish a different date of substantial completion."
SECTION 2. The provisions of this act apply to any improvement to real property for which construction begins on or after January 1, 2004.
SECTION 3. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.
Majority favorable. Minority unfavorable.
GLENN F. McCONNELL C. BRADLEY HUTTO
For Majority. For Minority.
EXPLANATION OF IMPACT:
The Consumer Affairs Commission states enactment of this bill would not have a fiscal impact on the general fund or federal and/or other funds.
Approved By:
Don Addy
Office of State Budget
TO AMEND SECTION 15-3-640, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LEGAL ACTIONS BASED UPON A DEFECTIVE OR UNSAFE CONDITION OF AN IMPROVEMENT TO REAL PROPERTY, SO AS TO ESTABLISH AN OUTSIDE LIMITATION OF SIX YEARS AFTER SUBSTANTIAL COMPLETION OF THE IMPROVEMENT FOR BRINGING THE ACTION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 15-3-640 of the 1976 Code is amended to read:
"Section 15-3-640. No actions to recover damages based upon or arising out of the defective or unsafe condition of an improvement to real property may be brought more than thirteen six years after substantial completion of such an the improvement. For purposes of this section, an action based upon or arising out of the defective or unsafe condition of an improvement to real property includes:
(1) an action to recover damages for breach of a contract to construct or repair an improvement to real property;
(2) an action to recover damages for the negligent construction or repair of an improvement to real property;
(3) an action to recover damages for personal injury, death, or damage to property;
(4) an action to recover damages for economic or monetary loss;
(5) an action in contract or in tort or otherwise;
(6) an action for contribution or indemnification for damages sustained on account of an action described in this subdivision;
(7) an action against a surety or guarantor of a defendant described in this section;
(8) an action brought against any current or prior owner of the real property or improvement, or against any other person having a current or prior interest in the real property or improvement;
(9) an action against owners or manufacturers of components, or against any person furnishing materials, or against any person who develops real property, or who performs or furnishes the design, plans, specifications, surveying, planning, supervision, testing, or observation of construction, or construction of an improvement to real property, or a repair to an improvement to real property.
This section describes an outside limitation of thirteen six years after the substantial completion of the improvement, within which normal statutes of limitations continue to run.
Any A building permit for the construction of an improvement to real property shall must contain in bold type notice to the owner or possessor of the property of his rights under this section to contract for a guarantee of the structure being free from defective or unsafe conditions beyond thirteen six years after substantial completion of the improvement. The Department of Consumer Affairs shall publish in conspicuous places the right of any an owner or possessor to contract for such extended liability under this section. Nothing in this section shall prohibit any prohibits a person from entering into any a contractual agreement prior to the substantial completion of the improvement which extends any guarantee of a structure or component being free from defective or unsafe conditions beyond thirteen six years after substantial completion of the improvement or component."
SECTION 2. This act takes effect upon approval by the Governor.
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