BIL: 767
RTN: 326
ACN: 295
TYP: General Bill GB
INB: Senate
IND: 19990428
PSP: McConnell
SPO: McConnell and Ford
DDN: l:\council\bills\bbm\9242som99.doc
DPB: 20000516
LAD: 20000509
GOV: S
DGA: 20000526
SUB: Subcontractors' and Suppliers' Payment Protection Act, Construction, Contractors, Property, Liens
HST:
Body Date Action Description Com Leg Involved
______
------20000606 Act No. A295
------20000526 Signed by Governor
------20000523 Ratified R326
Senate 20000516 Concurred in House amendment,
enrolled for ratification
House 20000511 Read third time, returned to Senate
with amendment
House 20000509 Amended, read second time
House 20000503 Committee report: Favorable with 26 HLCI
amendment
House 20000418 Introduced, read first time, 26 HLCI
referred to Committee
Senate 20000413 Read third time, sent to House
Senate 20000328 Amended, read second time,
notice of general amendments
------20000327 Scrivener's error corrected
Senate 20000323 Committee report: Favorable with 02 SBI
amendment
Senate 19990428 Introduced, read first time, 02 SBI
referred to Committee
Versions of This Bill
Revised on 20000323
Revised on 20000327
Revised on 20000328
Revised on 20000503
Revised on 20000509
TXT:
(A295, R326, S767)
AN ACT TO AMEND CHAPTER 6, TITLE 29, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PAYMENTS TO CONTRACTORS, SUBCONTRACTORS, AND SUPPLIERS BY ADDING ARTICLE 3 SO AS TO PROVIDE THE SUBCONTRACTORS’ AND SUPPLIERS’ PAYMENT PROTECTION ACT, AND TO AMEND CHAPTER 6, TITLE 29 BY DESIGNATING SECTIONS 29610 THROUGH 29660 AS ARTICLE 1.
Be it enacted by the General Assembly of the State of South Carolina:
Subcontractor and supplier payment; bond required
SECTION 1. Chapter 6, Title 29 of the 1976 Code is amended by adding:
“Article 3
Subcontractors’ and Suppliers’ Payment Protection
Section 296210. This article may be cited as the ‘Subcontractors’ and Suppliers’ Payment Protection Act’.
Section 296230. Notwithstanding any other provision of law, performance by a construction subcontractor in accordance with the provisions of its contract entitles the subcontractor to payment from the party with whom it contracts. The payment by the owner to the contractor or the payment by the contractor to another subcontractor or supplier is not, in either case, a condition precedent for payment to the construction subcontractor. Any agreement to the contrary is not enforceable.
Section 296250. (1) When a governmental body is a party to a contract to improve real property, and the contract is for a sum in excess of fifty thousand dollars, the owner of the property shall require the contractor to provide a labor and material payment bond in the full amount of the contract. The bond must be secured by cash or must be issued by a surety company licensed in the State with an ‘A’ minimum rating of performance as stated in the most current publication of ‘Best Key Rating Guide, Property Liability’.
(2) If the contract is for less than one hundred thousand dollars, the governmental body may permit the use of a ‘B+’ rated bond if it justifies that use in writing.
(3) For the purposes of any contract covered by the provisions of this section, it is the duty of the entity contracting for the improvement to take reasonable steps to assure that the appropriate payment bond is issued and is in proper form.
(4) For purposes of this section, ‘governmental body’ means a state government department, commission, council, board, bureau, committee, institution, college, university, technical school, agency, government corporation, or other establishment or official of the executive or judicial branch, and all local political subdivisions. ‘Governmental body’ excludes the General Assembly or its respective branches or its committees, Legislative Council, the Office of Legislative Printing and Information Technology Resources, or any entity created by act of the General Assembly for the purpose of erecting monuments or memorials or commissioning art that is procured exclusively by private funds.
Section 296270. For any contract for the improvement of real property not covered by the provisions of Section 296250, where a payment bond is required by the contract or otherwise, the bond may only be issued by a surety company licensed in the State with a ‘B+’ minimum rating as stated in the most current publication of ‘Best Key Rating Guide, Property Liability’.
Section 296290. A provision in a contract for the improvement of real property in the State must not operate to derogate the rights of a construction contractor, subcontractor, supplier, or other proper claimant against a payment bond or other form of payment security or protection established by law.”
Redesignation as Article 1
SECTION 2. Sections 29610 through 29660 of Chapter 6, Title 29 of the 1976 Code, entitled “Payments to Contractors, Subcontractors, and Suppliers” is designated “Article 1, Payments to Contractors, Subcontractors, and Suppliers”.
Severability clause
SECTION 3. If a provision of this article or the application of a provision to a person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application. To this end, the provisions of this article are severable.
Time effective
SECTION 4. This act takes effect upon approval by the Governor.
Ratified the 23rd day of May, 2000.
Approved the 26th day of May, 2000.
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