H. B. 4576
(By Delegates Willis, Campbell, Perdue,
Wills, Stemple and Amores)
[Introduced February 17, 2000; referred to the
Committee on Government Organization.]
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 such time that
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 materialpersons, suppliers and subcontractors under
the contract have been paid in full.
This section is new; therefore, strike-throughs and
underscoring have been omitted.