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.