H 3859 General Bill, By Whipper, Breeland, Cato, Clyburn, Gourdine, Hamilton, 
J. Hines, M. Hines, Hosey, Leach, Littlejohn, Lloyd, Mack, Phillips, Rivers, 
F.N. Smith and Thompson
 A BILL TO AMEND SECTIONS 40-11-370 AND 40-59-130, CODE OF LAWS OF SOUTH
 CAROLINA, 1976, BOTH RELATING TO THE LICENSE REQUIRED FOR A GENERAL,
 MECHANICAL, RESIDENTIAL, OR RESIDENTIAL SPECIALTY CONTRACTOR, SO AS TO PROVIDE
 THAT, INSTEAD OF BARRING AN UNLICENSED CONTRACTOR FROM BRINGING AN ACTION TO
 ENFORCE PROVISIONS OF A CONTRACT, THE UNLICENSED CONTRACTOR IS LIMITED TO
 BRINGING AN ACTION AGAINST THE CONTRACTING PARTY OR A THIRD PARTY FOR THE COST
 OF MATERIALS AND PARTIAL LABOR COSTS.

   04/03/01  House  Introduced and read first time HJ-4
   04/03/01  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-4

TO AMEND SECTIONS 40-11-370 AND 40-59-130, CODE OF LAWS OF SOUTH CAROLINA, 1976, BOTH RELATING TO THE LICENSE REQUIRED FOR A GENERAL, MECHANICAL, RESIDENTIAL, OR RESIDENTIAL SPECIALTY CONTRACTOR, SO AS TO PROVIDE THAT, INSTEAD OF BARRING AN UNLICENSED CONTRACTOR FROM BRINGING AN ACTION TO ENFORCE PROVISIONS OF A CONTRACT, THE UNLICENSED CONTRACTOR IS LIMITED TO BRINGING AN ACTION AGAINST THE CONTRACTING PARTY OR A THIRD PARTY FOR THE COST OF MATERIALS AND PARTIAL LABOR COSTS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Section 40-11-370 of the 1976 Code is amended to read:

    "Section 40-11-370.    (A)    It is unlawful to use the term 'licensed contractor' or to perform or offer to perform general or mechanical construction without first obtaining a license as required by this chapter.

    (B)    It is unlawful to engage in construction under a name other than the name which appears on the license issued pursuant to this chapter.

    (C)    An entity which does not have a valid license as required by this chapter may not only bring an action either at law or in equity against the contracting party or a third party to enforce the provisions of a contract recover the cost of materials and forty percent of the labor costs."

SECTION    2.    Section 40-59-130 of the 1976 Code is amended to read:

    "Section    40-59-130.    Any residential builder or residential specialty contractor who undertakes or attempts to undertake the business of residential building or residential specialty contracting without first having procured a valid license or registered with the commission as required in Section 40-59-50 which has neither expired nor been revoked, or who knowingly presents to, or files with, the commission false information for the purpose of obtaining a license or becoming registered is guilty of a misdemeanor and, upon conviction, must be fined not less than one hundred dollars or imprisoned for not less than thirty days.

    A residential builder who does not have a license or a residential specialty contractor who is not registered as required may not only bring any an action either at law or in equity against the contracting party or a third party to enforce the provisions of any contract for recover the cost of materials and forty percent of the labor costs for residential building or residential specialty contracting which he entered into in violation of this chapter.

    Whenever it appears to the commission that any residential builder or residential specialty contractor has violated, or is about to violate, the provisions of this chapter, the commission may in its own name petition an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 to issue a temporary restraining order enjoining the violation of this chapter, pending a full hearing to determine whether or not the injunction must be made permanent."

SECTION    3.    This act takes effect upon approval by the Governor and applies to all cases filed on or after that date.