Current Status Introducing Body:Senate Bill Number:610 Ratification Number:98 Act Number:72 Primary Sponsor:Committee (12) Type of Legislation:GB Subject:Residential home builders Date Bill Passed both Bodies:19930430 Computer Document Number:WWW/30061DW.93 Governor's Action:S Date of Governor's Action:19930513 Introduced Date:19930330 Last History Body:------ Last History Date:19930513 Last History Type:Act No. 72 Scope of Legislation:Statewide Sponsor Committee:Labor, Commerce & Industry Sponsor Committee Number:12 Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
610 ------ 19930513 Act No. 72
610 ------ 19930513 Signed by Governor
610 ------ 19930511 Ratified R 98
610 House 19930430 Read third time, enrolled for
ratification
610 House 19930429 Read second time, unanimous
consent for third reading on
next Legislative day
610 House 19930428 Debate adjourned until
Thursday, April 29, 1993
610 House 19930421 Debate adjourned until
Wednesday, April 28, 1993
610 House 19930414 Committee Report: Favorable 26
610 House 19930406 Introduced, read first time, 26
referred to Committee
610 Senate 19930401 Read third time, sent to House
610 Senate 19930331 Read second time, unanimous
consent for third reading on
Thursday, April 1, 1992
610 Senate 19930330 Introduced, read first time,
placed on Calendar without
reference
View additional legislative information at the LPITS web site.
(A72, R98, S610)
AN ACT TO AMEND SECTIONS 40-59-70, 40-59-77, 40-59-80, 40-59-90, 40-59-100, 40-59-110, 40-59-130, 40-59-140, 40-59-160, ALL AS AMENDED, AND SECTIONS 40-59-75 AND 40-59-95, CODE OF LAWS OF SOUTH CAROLINA, 1976, ALL RELATING TO RESIDENTIAL HOME BUILDERS, SO AS TO ESTABLISH A FEE SCHEDULE UNTIL THE GENERAL ASSEMBLY APPROVES THE FEES BY REGULATION; DELETE THE AUTHORITY OF THE RESIDENTIAL BUILDERS COMMISSION TO CERTIFY A RESIDENTIAL SPECIALTY CONTRACTOR; REQUIRE THAT A RESIDENTIAL SPECIALTY CONTRACTOR POST A BOND IF THE COST OF THE UNDERTAKING EXCEEDS FIVE THOUSAND DOLLARS, AND PROVIDE FOR RECIPROCITY FOR A RESIDENTIAL BUILDER'S LICENSE TO THOSE BUILDERS IN GOOD STANDING IN OTHER STATES.
Be it enacted by the General Assembly of the State of South Carolina:
Licensing of contractor
SECTION 1. Section 40-59-70 of the 1976 Code, as last amended by Act 595 of 1990, is further amended to read:
"Section 40-59-70. (A) All residential builders are required to be licensed by the commission annually under the provisions of this chapter.
(B) The commission shall issue a license upon the applicant's payment of the examination fee and annual license fee, if the commission, as a result of examining the applicant, has determined that he is qualified to engage in residential building and has obtained an executed bond with a surety approved by the commission in the sum of fifteen thousand dollars, or proof of financial responsibility acceptable to the commission.
(C) Unless otherwise provided under the provisions of this chapter, the commission shall renew all licenses upon the applicant's submission to the commission of the renewal application, proof of financial responsibility or bond, and payment of the annual license fee. The annual license fees for residential builders must be set by the commission based on its cost of operation. The annual fees may be increased or decreased by the commission but in no event may the commission set the annual fees at an amount which would not provide sufficient revenues to pay all the salaries, costs, and expenses incurred by the commission in enforcing the provisions of this chapter.
(D) All fees must be set by regulation of the commission. Until regulations are promulgated by the commission and approved by the General Assembly, the following fee schedule is in effect:
(1) Residential Builders:
(a) an application/examination fee of one hundred dollars;
(b) a special examination fee of two hundred dollars;
(c) a license fee of one hundred dollars;
(d) an annual renewal fee of one hundred dollars;
(e) a late fee of fifty dollars for renewals received after July thirty-first;
(f) an additional renewal fee of one hundred dollars will be required when a renewal is received more than twelve months after expiration of the license;
(g) an oral examination fee of two hundred dollars.
(2) Residential Specialty Contractors:
(a) a registration fee of twenty dollars;
(b) an annual renewal fee of twenty dollars;
(c) a late fee of ten dollars for renewals received after July thirty-first;
(d) an additional renewal fee of twenty dollars will be required when a renewal is received more than twelve months after expiration of the registration.
(3) Other Fees and Penalties:
(a) a replacement fee of ten dollars for replacing any lost, destroyed, or mutilated licenses or registration cards;
(b) a fee of five dollars for furnishing an examinee with a certified copy of the record of his examination grades;
(c) a fee of twenty dollars for a duplicate copy of a license when any change is requested by the licensee to the information printed on the license;
(d) a fee of ten dollars for a duplicate copy of a registration card when any change is requested by the holder to the information printed on the card.
(E) The annual license fees are for the period of twelve months beginning July first of each year. All license fees collected by the commission must be paid into the State Treasury as provided by law for payment into the State Treasury of other taxes."
Fee
SECTION 2. Section 40-59-75 of the 1976 Code, as added by Act 595 of 1990, is amended to read:
"Section 40-59-75. (A) Any person who engages in residential specialty contracting within the meaning of this chapter must register with the commission and pay an annual registration fee. It is unlawful for any person to engage in residential specialty contracting without being registered with the commission.
(B) When the cost of an undertaking performed by a residential specialty contractor for an individual property owner exceeds five thousand dollars, the residential specialty contractor must obtain an executed bond with a surety in an amount approved by the commission.
(C) All assessments and registration fees must be set by regulation of the commission."
Classification of contractors
SECTION 3. Section 40-59-77 of the 1976 Code, as last amended by Act 130 of 1991, is further amended to read:
"Section 40-59-77. (A) The commission shall, by regulation, classify residential specialty contractors in a manner consistent with established usage and procedure in the construction business, and may limit the field and scope of the operations of a residential specialty contractor to those in which he is to be registered. All residential specialty contractor registrations issued by the commission must be for one or more of the classifications adopted pursuant to this chapter.
(B) Residential specialty contractors must be qualified and experienced in the particular branches or fields of the contracting vocation in which they intend to, and do, engage.
Residential specialty contractors are not exempt from complying with county and municipal business license ordinances or other regulatory ordinances. Any county or municipality may require a residential specialty contractor to be examined and licensed in accordance with standards adopted by the county or municipality."
Application
SECTION 4. Section 40-59-80 of the 1976 Code, as last amended by Act 595 of 1990, is further amended to read:
"Section 40-59-80. Any residential builder who desires to be licensed under the provisions of this chapter shall make and file with the commission thirty days prior to the next meeting of the commission a written application on such form as may be prescribed by the commission. The application must be accompanied by the payment of the annual license fee required by the commission and an examination fee as set by the commission. A prerequisite for the taking of an examination for a residential builder's license is a minimum of one year of actual experience under the supervision of a licensed residential builder who is engaged in residential building construction involving the trades or crafts for which the license is desired. The commission, in examining an applicant, shall consider the following qualifications of the applicant:
(a) experience;
(b) ability;
(c) character;
(d) financial condition;
(e) equipment;
(f) ability and willingness to conserve the public health and safety; and (g) other pertinent information the commission may require.
If, as a result of the examination, the commission finds that the applicant is qualified to engage in residential building in South Carolina, and if the applicant submits an executed bond in the form and with a surety approved by the commission, or proof of financial responsibility acceptable to the commission, the commission shall issue the license for which the applicant is qualified. Any applicant rejected by the commission must be given the opportunity to be reexamined after he has paid an additional examination fee, except that if the applicant fails the examination three times he shall wait twelve months before being examined again.
A residential builder's license may be granted without examination to those builders who are licensed in good standing in other states which are deemed by the commission to have comparable exams.
A record must be made and preserved by the commission of each examination of an applicant and the findings of the commission pertaining to the examination. A certified copy of the record shall be furnished to any applicant requesting the record upon the payment of a fee to the commission that reasonably reflects the cost of furnishing the record to the applicant."
Revocation of license
SECTION 5. Section 40-59-90 of the 1976 Code, as last amended by Act 595 of 1990, is further amended to read:
"Section 40-59-90. The commission may revoke, suspend, or restrict for a period not to exceed one year the license of a residential builder or registration of a residential specialty contractor who, in the opinion of the commission, has committed fraud or deceit in obtaining a license or in registering as required by the provisions of this chapter or has been guilty of gross negligence, incompetence, or misconduct in the practice of home building or residential specialty contracting. A person, including the commission, may prefer charges of fraud, deceit, negligence, incompetence, or misconduct against a residential builder licensed under this chapter or a residential specialty contractor registered under this chapter. The charges must be made to the commission in writing and sworn to by the person so charging and must be submitted to the director of the commission.
The charges, unless dismissed without hearing by the commission as unfounded or trivial, must be heard by the commission in an open hearing within three months after the date on which they were preferred. A copy of the charges, together with notice of the time and place of the hearing, must be served legally on the residential builder or residential specialty contractor charged at least thirty days before the fixed date for the hearing. At the hearing the residential builder or residential specialty contractor charged may appear personally or be represented by counsel and may cross-examine witnesses against him and produce evidence and witnesses in his defense. If, after the hearing, a majority of the commission votes in favor of revoking, suspending, or restricting for a period not to exceed one year, the license of the residential builder or registration of the residential specialty contractor charged on the basis of fraud or deceit in obtaining his license or in registering with the commission or gross negligence, incompetence, or misconduct in the performance of home building or residential specialty contracting, the commission shall order the license of the residential builder or the registration of the residential specialty contractor revoked, suspended, or restricted for a period not to exceed one year. After the commission revokes, suspends, or restricts for a period not to exceed one year the license of the residential builder or the registration of the residential specialty contractor, he has ten days to file with the commission written notice of his intention to appeal from the order of the commission. All appeals from the order of the commission are governed by the provisions of Article 3, Chapter 23 of Title 1 (the Administrative Procedures Act).
The commission may reissue a license to a residential builder to a residential specialty contractor whose license was previously revoked if a majority of the members of the commission vote in favor of the reissuance."
Remedies
SECTION 6. Section 40-59-95(A) of the 1976 Code, as added by Act 595 of 1990, is amended to read:
"(A) In addition to all other remedies provided by law, when it appears to the director, either upon complaint or otherwise, that any person or combination of persons has engaged, or is engaging, in any act of contracting, practice, or transaction which constitutes a violation of this chapter or any regulation or order of the commission, whether or not the person is properly licensed or registered with the commission, the director may either:
(1) serve upon the person not licensed or registered under the chapter, by certified mail or by personal service, a cease and desist order requiring the person to cease and desist immediately, upon receipt of the notice, from engaging in the act, practice, or transaction. If the person fails to comply with the order, the director may file an action in the court of common pleas for enforcement of the cease and desist order or file an action pursuant to item (2) of this subsection in the court of common pleas to restrain and enjoin the person from engaging in the act, practice, or transaction and for wilful violation of the order. If the court finds that the person wilfully failed to obey a valid cease and desist order, the court shall impose a civil penalty of not less than two hundred fifty dollars nor more than two thousand dollars for each violation. Any amount collected as a civil penalty must be remitted pursuant to subsection (B) of this section;
(2) apply through the Attorney General, the administrator of the Department of Consumer Affairs, the county attorney, or solicitor of the county in which the act, practice, or transaction is alleged to have been committed, to the court of common pleas of that county for an injunction restraining the person from engaging in the act, practice, or transaction or doing any act in furtherance of the act, practice, or transaction. Upon a proper showing, a temporary restraining order, a preliminary injunction, or a permanent injunction may be granted without bond. Process in the action may be served upon the defendant in any county of this State where he transacts business or is found."
Roster
SECTION 7. Section 40-59-100 of the 1976 Code, as last amended by Act 595 of 1990, is further amended to read:
"Section 40-59-100. A complete roster that shows all the names and places of business of the residential builders and residential specialty contractors licensed or registered by the commission during the preceding year must be prepared annually by the commission and forwarded to and filed with the clerks of court for the several counties."
Report
SECTION 8. Section 40-59-110 of the 1976 Code, as last amended by Act 595 of 1990, is further amended to read:
"Section 40-59-110. The commission shall annually submit to the Governor and the General Assembly a report of its transactions for the preceding year, including a complete statement of the receipts and expenditures of the commission, a roster of all the residential builders licensed for that year, all the residential specialty contractors registered for that year, and a list of the residential builders and residential specialty contractors whose license was revoked, suspended, or restricted by the commission during the preceding year. The commission shall also annually file with the Secretary of State a certified copy of the report at the same time the report is submitted to the Governor and the General Assembly."
Penalty
SECTION 9. The first and second paragraphs of Section 40-59-130 of the 1976 Code, as last amended by Act 595 of 1990, are further amended to read:
"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 residential specialty contractor who is not registered as required may not bring any action either at law or in equity to enforce the provisions of any contract for residential building or residential specialty contracting which he entered into in violation of this chapter."
Exceptions
SECTION 10. Section 40-59-140 of the 1976 Code, as last amended by Act 595 of 1990, is further amended to read:
"Section 40-59-140. The provisions of this chapter do not apply to any person licensed as a general contractor under the provisions of Chapter 11 of Title 40 for the purpose of undertaking the construction, or superintending of construction, of any building, or the improvement, reimprovement, or repair of any building. No residential builder who is licensed pursuant to the provisions of this chapter is also required to be licensed as a general contractor or mechanical contractor under the provisions of Chapter 11 of Title 40 in order to engage in residential building as defined in Section 40-59-10. A mechanical contractor is exempt from the provisions of this chapter relating to residential specialty contractors when engaged in contracting in the classification in which he is licensed to perform mechanical contracting. The Residential Builders Commission is the sole licensing and registration board for persons who engage solely in residential building as defined in Section 40-59-10 and in residential specialty contracting as defined in Section 40-59-15."
Building official may refuse to issue permit
SECTION 11. Section 40-59-160 of the 1976 Code, as last amended by Act 595 of 1990, is further amended to read:
"Section 40-59-160. It is the duty of the building official, or other authority charged with the duty of issuing building or similar permits, of
any incorporated municipality or subdivision of the municipality or county to refuse to issue a permit for any undertaking which would classify the applicant as a residential builder or residential specialty contractor under the provisions of this chapter unless the applicant has furnished evidence that he is either licensed or registered as required by this chapter or exempt from the requirements of this chapter. It is also the duty of the building official, or other authority charged with the duty of issuing building or similar permits, to report to the state licensing board the name and address of any person who, in his opinion, has violated this chapter by accepting or contracting to accomplish work which would classify the person as a residential builder or residential specialty contractor under the provisions of this chapter."
Time effective
SECTION 12. This act takes effect upon approval by the Governor.
Approved the 13th day of May, 1993.