Current Status Introducing Body:
HouseBill Number: 3070Ratification Number: 251Act Number: 247Primary Sponsor: LittlejohnType of Legislation: GBSubject: Laborer, subcontractor, materialman; failure to payDate Bill Passed both Bodies: Jun 06, 1991Computer Document Number: 3070Governor's Action: SDate of Governor's Action: Oct 01, 1991Introduced Date: Jan 08, 1991Date of Last Amendment: Jun 05, 1991Last History Body: ------Last History Date: Oct 01, 1991Last History Type: Act No. 247Scope of Legislation: StatewideAll Sponsors: Littlejohn Rama WhipperType of Legislation: General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 3070 ------ Oct 01, 1991 Act No. 247 3070 ------ Oct 01, 1991 Signed by Governor 3070 ------ Sep 23, 1991 Ratified R 251 3070 House Jun 06, 1991 Concurred in Senate amendment, enrolled for ratification 3070 Senate Jun 06, 1991 Read third time, returned with amendment 3070 Senate Jun 05, 1991 Amended, read second time, ordered to third reading with notice of general amendments 3070 Senate May 27, 1991 Committee Report: Favorable 12 with amendment 3070 Senate Apr 02, 1991 Introduced, read first time, 12 referred to Committee 3070 House Mar 28, 1991 Read third time, sent to Senate 3070 House Mar 26, 1991 Amended, read second time 3070 House Mar 20, 1991 Committee Report: Favorable 26 with amendment 3070 House Jan 08, 1991 Introduced and read first 26 time, referred to Committee 3070 House Dec 12, 1990 Prefiled, referred to 26 CommitteeView additional legislative information at the LPITS web site.
(A247, R251, H3070)
AN ACT TO AMEND SECTION 29-7-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE PAYMENT BY CONTRACTORS TO LABORERS AND OTHERS FROM MONEY RECEIVED FROM A CONTRACT AND A LABORER'S LIEN, SO AS TO INCLUDE A SUBCONTRACTOR WITHIN THE PROVISIONS OF THE SECTION; TO AMEND SECTION 29-7-20, RELATING TO THE PENALTY FOR FAILURE TO PAY LABORERS AND OTHERS, SO AS TO PROVIDE THAT AN AGREEMENT TO WAIVE THE RIGHT TO FILE OR CLAIM A LIEN FOR LABOR AND MATERIALS IS AGAINST PUBLIC POLICY AND UNENFORCEABLE UNLESS PAYMENT SUBSTANTIALLY EQUAL TO THE AMOUNT WAIVED IS ACTUALLY MADE, AND PROVIDE THAT A CONTRACTOR OR SUBCONTRACTOR MAY SET OFF, AGAINST THE MONEY UPON WHICH A LABORER, SUBCONTRACTOR, OR MATERIALMAN HAS A LIEN AS PROVIDED IN SECTION 29-7-10, ANY DEBT CLAIMED TO BE OWED TO THE CONTRACTOR BY THESE PERSONS, BASED UPON A GOOD FAITH CLAIM THAT THOSE SERVICES AND MATERIALS FOR WHICH PAYMENT IS CLAIMED BY THOSE PERSONS WERE DEFECTIVE, AND PROVIDE FOR A PROCEDURE TO MAKE A SET-OFF.
Be it enacted by the General Assembly of the State of South Carolina:
Contractors to pay laborers, etc.
SECTION 1. Section 29-7-10 of the 1976 Code is amended to read:
"Section 29-7-10. Any contractor or subcontractor in the erection, alteration, or repairing of buildings in this State shall pay all laborers, subcontractors, and materialmen for their lawful services and material furnished out of the money received for the erection, alteration, or repairs of buildings upon which such laborers, subcontractors, and materialmen are employed or interested and such laborers, as well as all subcontractors and persons who shall furnish material for any such building, shall have a first lien on the money received by such contractor for the erection, alteration, or repair of such building in proportion to the amount of their respective claims. Any person providing private security guard services at the site of the building during its erection, alteration, or repair shall be deemed to be a laborer within the meaning of this section. Nothing herein contained shall make the owner of the building responsible in any way and nothing contained in this section shall be construed to prevent any contractor or subcontractor from borrowing money on any such contract. `Person' as used in this section shall mean any individual, corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization, or other such entity."
SECTION 2. Section 29-7-20 of the 1976 Code is amended to read:
"Section 29-7-20. (1) A contractor or subcontractor who, for other purposes than paying the money loaned upon such contract, transfers, invests, or expends and fails to pay to a laborer, subcontractor, or materialman out of the money received as provided in Section 29-7-10 is guilty of a misdemeanor and, upon conviction, when the consideration for the work and material exceeds the value of one hundred dollars must be fined not less than five hundred dollars nor more than one thousand dollars or imprisoned not less than three months nor more than six months and when such consideration does not exceed the value of one hundred dollars must be fined not more than five hundred dollars or imprisoned not longer than thirty days.
(2) Any person who wilfully and intentionally certifies to any owner or lending institution by affidavit or otherwise that all persons, firms, or corporations including subcontractors and materialmen having furnished services, labor, or materials or extra items used in the construction, improvement, or repair to the owner's building or real property have been paid in full, when such persons have not been paid in full, except with regard to services or materials concerning which all lien rights have been waived in writing, shall be deemed guilty of a misdemeanor and, upon conviction, shall be fined not more than five thousand dollars or imprisoned not more than sixty days, or both. Provided, however, that an agreement to waive the right to file or claim a lien for labor and materials is against public policy and is unenforceable unless payment substantially equal to the amount waived is actually made.
(3) Unless otherwise provided in an agreement between the parties, a contractor or subcontractor may set off, against the money upon which a laborer, subcontractor, or materialman has a lien as provided by Section 29-7-10, any debt claimed to be owed to the contractor by such laborer, subcontractor, or materialman, based upon a good faith claim that those services and materials for which payment is claimed by the laborer, subcontractor, or materialman were defective. In order to make such a set-off, a declaration and accounting thereof must be included in any certificate submitted with an application for payment and a copy thereof or a separate notarized original of the declaration must be sent by certified mail to the affected laborer, subcontractor, or materialman at the time the certificate is submitted."
SECTION 3. This act takes effect upon approval by the Governor.
Approved the 1st day of October, 1991.