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Introduced Version House Bill 2593 History

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Key: Green = existing Code. Red = new code to be enacted


H. B. 2593


(By Delegates Wills and Perdue)

[Introduced February 28, 2001 ; referred to the

Committee on Government Organization then the Judiciary.]





A BILL to amend article eleven, chapter twenty-one of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section twenty-one, relating to requiring contractors to notify persons with whom they enter construction contracts that the persons have the right to withhold twenty-five percent of the amount due on a construction contract until proof is shown that all material persons, suppliers and subcontractors under the contract have been paid in full.

Be it enacted by the Legislature of West Virginia:

That article eleven, chapter twenty-one of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section
twenty-one, to read as follows:
ARTICLE 11. WEST VIRGINIA CONTRACTOR LICENSING ACT.

§21-11-21. Retention by contractee of contract price pending proof of payment in full to third parties.

The West Virginia contractor licensing board shall require contractors operating in this state to notify any person with whom they intend to contract for construction services on a contract valued in excess of five thousand dollars that the person, upon completion of the contract, may withhold twenty-five percent of the contract price until the time that the contractor provides credible and sufficient proof that any subcontractor, material person or supplier who supplied labor, services, material or supplies under the contract has been paid in full. The contractor shall submit a written statement on a form prescribed by the board which clearly advises the person of the person's right to withhold twenty-five percent of the contract price until sufficient proof has been obtained regarding the full payment of persons who have supplied labor, services, material or supplies on the project. The board, pursuant to its authority established under section sixteen of this article shall propose legislative rules in accordance with the provisions of article three, chapter twenty-nine-a of this code designed to effectuate the provisions of this section.


NOTE: The purpose of this bill is to require contractors to notify persons with whom they enter construction contracts that the persons have the right to withhold twenty-five percent of the amount due on a construction contract until such time that proof is shown that all material persons, suppliers and subcontractors under the contract have been paid in full.

This section is new; therefore, strike-throughs and underscoring have been omitted.

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