Introduced Version
Senate Bill 150 History
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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 150
(By Senator Yost)
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[Introduced February 14, 2013; referred to the Committee on
Labor; and then to the Committee on the Judiciary .]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new section, designated §21-11-21; and to
amend said code by adding thereto a new section, designated
§31-17-21, all relating to requiring residential construction
projects to be bonded; setting forth a contractor's
responsibilities; and requiring a lender making a loan for
residential construction services to be financially
responsible for payment to the contractor and any
subcontractors who provide those services and to suppliers of
materials used in the construction.
Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new section, designated §21-11-21; and that
said code be amended by adding thereto a new section, designated §31-17-21, all to read as follows:
CHAPTER 21. LABOR.
ARTICLE 11. WEST VIRGINIA CONTRACTOR LICENSING ACT.
§21-11-21. Residential construction; contractor's responsibilities.
Contractors who erect, build, construct, alter, remove or
repair any residential building or other residential structure, or
other improvement appurtenant to that building or other structure,
shall obtain for length of the project a surety bond for the total
value of the project. The contractor shall, before beginning a
project, provide a copy of that bond to the property owner,
potential subcontractors, potential suppliers, any lender who has
made a loan on the project and the commissioner. After work has
begun on the project the contractor shall provide monthly reports
to the property owner, subcontractors, suppliers, lenders and the
commissioner on who, and in what amounts, were paid during that
month on the project.
CHAPTER 31. CORPORATIONS.
ARTICLE 17. WEST VIRGINIA RESIDENTIAL MORTGAGE LENDER, BROKER AND
SERVICER ACT.
§31-17-21. Residential construction loans; lender responsibility.
A lender who makes a loan to erect, build, construct, alter,
remove or repair any building or other structure, or other improvement appurtenant to that building or other structure, or who
alters or improves the real property where the structure stands, or
from which it may have been removed, or who provides services for
any of the foregoing, shall be responsible for the timely payment
to the contractor and any subcontractors who perform the
construction or removal services and to any suppliers of materials
or other goods used in the performance of those services.
NOTE: The purpose of this bill is to
require residential
construction projects to be bonded. The bill sets forth a
contractor's responsibilities. The bill requires a lender making
a loan for residential construction services to be financially
responsible for payment to the contractor and any subcontractors
who provide those services and to suppliers of materials used in
the construction.
These sections are new; therefore, strike-throughs and
underscoring have been omitted.