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Indicates Matter Stricken
Indicates New Matter
Sponsors: Senators Thomas and Verdin
Document Path: l:\s-res\dlt\001lien.dag.doc
Introduced in the Senate on March 1, 2007
Introduced in the House on May 1, 2008
Last Amended on April 30, 2008
Currently residing in the House Committee on Judiciary
Summary: Residential building license
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 3/1/2007 Senate Introduced and read first time SJ-2 3/1/2007 Senate Referred to Committee on Labor, Commerce and Industry SJ-2 4/23/2008 Senate Committee report: Favorable with amendment Labor, Commerce and Industry SJ-14 4/29/2008 Senate Read second time SJ-63 4/30/2008 Senate Committee Amendment Withdrawn SJ-24 4/30/2008 Senate Amended SJ-24 4/30/2008 Senate Read third time and sent to House SJ-24 5/1/2008 House Introduced and read first time HJ-118 5/1/2008 House Referred to Committee on Judiciary HJ-118 5/1/2008 Scrivener's error corrected
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VERSIONS OF THIS BILL
AS PASSED BY THE SENATE
April 30, 2008
S. Printed 4/30/08--S. [SEC 5/1/08 4:34 PM]
Read the first time March 1, 2007.
TO AMEND SECTION 40-59-30 OF THE 1976 CODE, RELATING TO A RESIDENTIAL BUILDING LICENSE, TO PROVIDE THAT A PERSON MUST HAVE A LICENSE TO FILE A MECHANICS LIEN, TO PROVIDE THE PROCESS FOR A RESIDENTIAL SPECIALTY CONTRACTOR FILING A MECHANICS LIEN AGAINST A RESIDENTIAL BUILDER, TO PROVIDE FOR A RELEASE BOND, AND TO PROVIDE PENALTIES FOR A FRAUDULENT LIEN.
Amend Title To Conform
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 40-59-30 of the 1976 Code is amended to read:
"Section 40-59-30. (A) A person or firm who engages or offers to engage in the business of residential building or residential specialty contracting without first having registered with the commission or procured a license from the commission, which has not expired or been revoked, suspended, or restricted or who knowingly presents to, or files with, the commission false information for the purpose of obtaining a license or registering with the commission is guilty of a misdemeanor and, upon conviction, must be fined not less than five hundred dollars or more than ten thousand dollars or imprisoned for not less than thirty days, or both.
(B) Notwithstanding Section 29-5-10, or any other provision of law, a
A person or firm who has not first procured a license or registered with the commission may not file a mechanics' lien or bring an action at law or in equity to enforce the provisions of a contract for residential building or residential specialty contracting which the person or firm entered into in violation of this chapter.
If it appears to the commission that a person or firm has violated, or is about to violate, a provision of this chapter, the commission may in its own name petition an administrative law judge, as provided under Article 5 of Chapter 23 of Title 1, to issue a temporary restraining order enjoining the violation of this chapter, pending a full hearing to determine whether or not the injunction must be made permanent. Pursuant to Article 5, Chapter 23, Title 1, the commission may petition an administrative law judge to issue a temporary restraining order enjoining a violation of this chapter, pending a full hearing to determine whether the injunction must be made permanent."
SECTION 2. Chapter 5, Title 29 of the 1976 Code is amended by adding:
"Section 29-5-11. (A) To file a mechanics' lien, a contractor must provide the county clerk of court or register of deeds with proof that he is licensed or registered if required by law. As proof, the contractor must record his contractor license or registration number on the lien document at the time of the lien filing.
(B) A contractor who files a frivolous lien is subject to a fine of up to five thousand dollars, the loss of his contractor license or registration, or both."
SECTION 3. Section 29-5-120 of the 1976 Code is amended to read:
"Section 29-5-120. (A) Unless a suit for enforcing the lien is commenced
, and notice of pendency of the action is filed , within six months after the person desiring to avail himself thereof ceases to labor on or furnish labor or material for such building or structures, the lien shall be dissolved.
(B) A mechanics' lien and associated bonds may be released by a court order, a written affidavit of the bond-holder's attorney, or by a written affidavit from the defendant's attorney citing that six months has passed since the lien was attached and that there has been no suit filed or notice of pendency filed or citing the failure of the filing party to take some other timely action required by Chapter 5, Title 29. An affidavit must be in the form approved by the appropriate local office where the mechanics' lien was filed and must include references to all of the lien's recording information."
SECTION 4. This act takes effect upon approval by the Governor.
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