(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.
HISTORY: 1996 Act No. 442, Section 1, eff June 18, 1996; 1997 Act No. 65, Section 1, eff June 10, 1997.
Structure South Carolina Code of Laws
Title 42 - Workers' Compensation
Chapter 1 - General Provisions
Section 42-1-20. Application of definitions.
Section 42-1-30. "Adoption" and "adopted" defined.
Section 42-1-40. "Average weekly wages" defined.
Section 42-1-50. "Average weekly wage in this State for the preceding fiscal year" defined.
Section 42-1-60. "Carrier" and "insurer" defined.
Section 42-1-70. "Child", "grandchild", "brother" and "sister" defined.
Section 42-1-80. "Commission" defined.
Section 42-1-90. "Commission" defined; reference to administrative or judicial department.
Section 42-1-100. "Compensation" defined.
Section 42-1-110. "Death" defined.
Section 42-1-120. "Disability" defined.
Section 42-1-130. "Employee" defined.
Section 42-1-140. "Employer" defined.
Section 42-1-150. "Employment" defined.
Section 42-1-160. "Injury" and "personal injury" defined.
Section 42-1-170. "Parent" defined.
Section 42-1-172. Definitions.
Section 42-1-175. "Surviving spouse" defined.
Section 42-1-310. Presumption of acceptance of provisions of title.
Section 42-1-315. Applicability of title respecting work-related injuries to program participants.
Section 42-1-320. Applicability to public entities and their employees.
Section 42-1-360. Exemption of casual employees and certain other employments.
Section 42-1-380. Waiver of exemption by employer.
Section 42-1-390. Withdrawal of waiver of exemption by employer.
Section 42-1-400. Liability of owner to workmen of subcontractor.
Section 42-1-410. Liability of contractor to workmen of subcontractor.
Section 42-1-415. Representation of coverage; reimbursement from Uninsured Employers' Fund.
Section 42-1-420. Liability of subcontractor to workmen of sub-subcontractor.
Section 42-1-430. Construction of title when proceedings are against owner or contractor.
Section 42-1-440. Indemnity of principal contractor.
Section 42-1-450. Workman may recover from subcontractor.
Section 42-1-460. Contracts subject to title.
Section 42-1-470. Coverage of prisoners and convicts generally.
Section 42-1-480. Coverage for inmates of the State Department of Corrections.
Section 42-1-490. Payments to claimant-inmates of State Department of Corrections.
Section 42-1-500. County or municipal prisoners.
Section 42-1-540. Employee's rights and remedies under title exclude all others against employer.
Section 42-1-550. Rights against third persons prior to award.
Section 42-1-570. Amount of compensation not admissible in suits against third parties.
Section 42-1-580. Effect of rights of third party against employer on employee's recovery.
Section 42-1-590. Compensability of injuries to illegally employed minor.
Section 42-1-600. Suits by public employees.
Section 42-1-610. Agreement or regulation does not limit liability of employer.
Section 42-1-620. Agreements of employee to waive rights invalid.
Section 42-1-630. Situation in which provisions of title are not admissible in trial.
Section 42-1-640. Performance of statutory duty not excused.
Section 42-1-650. Limitation of actions after claim erroneously made.
Section 42-1-660. Immunity from liability on construction projects; exceptions.