Journal of the House of Representatives
of the Second Session of the 111th General Assembly
of the State of South Carolina
being the Regular Session Beginning Tuesday, January 9, 1996

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Printed Page 3010 . . . . . Thursday, April 25, 1996

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name P:\amend\PFM\9288AC.96), which was adopted.

Amend the bill, as and if amended, by striking SECTION 2 and inserting:

/SECTION 2. Section 20-4-60 of the 1976 Code is amended by adding at the end:

"(e) No mutual order of protection may be granted unless the court sets forth findings of fact necessitating the mutual order or unless both parties consent to a mutual order."/

Renumber sections to conform.

Amend title to conform.

Rep. THOMAS explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 4670--AMENDED AND ORDERED TO THIRD READING

The following Bill was taken up.

H. 4670 -- Reps. Allison, Neal, G. Brown, Inabinett, Sandifer, McKay, J. Hines, Meacham, Cain, Wells, L. Whipper, Vaughn, Simrill, Lee, Waldrop, Herdklotz, Davenport, Byrd, Rice, Littlejohn, Rhoad, Lloyd, J. Brown, Haskins, Wilkes and Spearman: A BILL TO AMEND SECTION 20-7-50, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO UNLAWFUL NEGLECT OF CHILDREN AND HELPLESS PERSONS, SO AS TO EXPAND THE CATEGORIES OF PERSONS CARING FOR CHILDREN AND HELPLESS PERSONS WHO ARE SUBJECT TO THIS SECTION.


Printed Page 3011 . . . . . Thursday, April 25, 1996

The Judiciary Committee proposed the following Amendment No. 1 (Doc Name P:\amend\JIC\5853AC.96), which was adopted.

Amend the bill, as and if amended, Section 20-7-50(A), page 1, line 25, by deleting /person or/ and inserting /person and/, so, when amended, subsection (A) reads:

/(A) It is unlawful for a person who has the legal custody of a child or helpless person and who resides in the home with or who has recurring access to a child or helpless person or who has been given responsibility to supervise or care for a child or helpless person, without lawful excuse, to refuse or neglect to provide the proper care and attention, as defined in Section 20-7-490, for the child or helpless person, so that the life, health, or comfort of the child or helpless person is endangered or is likely to be endangered./

Amend title to conform.

Rep. THOMAS explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

H. 4545--POINT OF ORDER

The following Bill was taken up.

H. 4545 -- Reps. Klauber, Simrill, Askins, Chamblee, Mason, R. Smith, Limehouse, Young-Brickell, Koon, Wright, Herdklotz, Sharpe, Knotts, Tripp, Elliott, Fulmer, D. Smith, Gamble, Quinn, Kennedy, Vaughn, Rice, Cato, Bailey, Wofford, Davenport, Whatley, Haskins, Worley, J. Young, Littlejohn, Law, Allison, Riser, Witherspoon, Lanford and Carnell: A BILL TO AMEND SECTION 58-27-865, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ELECTRIC UTILITIES AND ELECTRIC COOPERATIVES, RATES AND CHARGES, ESTIMATES OF FUEL COSTS, REPORTS, AND ADJUSTMENT OF DIFFERENCE BETWEEN ACTUAL AND ESTIMATED COSTS, SO AS TO DEFINE "COST" FOR THE PURPOSES OF THIS SECTION, DELETE CERTAIN LANGUAGE, PROVIDE THAT IT MUST BE CONCLUSIVELY PRESUMED THAT AN ELECTRICAL UTILITY MADE EVERY REASONABLE EFFORT TO MINIMIZE COST ASSOCIATED WITH THE OPERATION OF ITS NUCLEAR GENERATION FACILITY OR SYSTEM, AS APPLICABLE, IF THE UTILITY ACHIEVED A NET CAPACITY


Printed Page 3012 . . . . . Thursday, April 25, 1996

FACTOR OF NINETY PERCENT OR HIGHER DURING THE PERIOD UNDER REVIEW.

POINT OF ORDER

Rep. SHEHEEN made the Point of Order that the Bill was improperly before the House for consideration since printed copies of the Bill have not been upon the desks of the members for one day.

The SPEAKER Pro Tempore sustained the Point of Order.

SPEAKER IN CHAIR

H. 4861--POINT OF ORDER

The following Bill was taken up.

H. 4861 -- Rep. Boan: A BILL TO AMEND CHAPTER 57, TITLE 40, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE LICENSURE AND REGULATION OF REAL ESTATE BROKERS, COUNSELORS, SALESMEN, APPRAISERS, AUCTIONEERS, AND PROPERTY MANAGERS, SO AS TO REVISE THE CHAPTER TO CONFORM TO A UNIFORM FRAMEWORK FOR THE ORGANIZATION AND OPERATION OF PROFESSIONAL AND OCCUPATIONAL BOARDS.

The Labor, Commerce and Industry Committee proposed the following Amendment No. 1 (Doc Name P:\amend\PFM\9302AC.96).

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Chapter 57, Title 40 of the 1976 Code is amended to read:

"CHAPTER 57

Real Estate Brokers, Counsellors,

Salesmen, Appraisers,

Auctioneers, and Property Managers

SECTION 40-57-10. As used in this chapter:

(1) `Broker' means any person who for a fee, commission, or other valuable consideration, or with the intent or expectation of receiving a fee, commission, or consideration, negotiates or attempts to negotiate the listing, sale, auction, purchase, exchange, or lease of any real estate or of the improvements thereon, or negotiates or attempts to negotiate, or solicits or attempts to solicit, a referral with respect to the foregoing activities, or collects rents or attempts to collect rents, or who advertises


Printed Page 3013 . . . . . Thursday, April 25, 1996

or holds himself out as engaged in any of the foregoing activities. The term includes the activity provided in subsections (3) and (4) of this section. The term also includes any person employed by or on behalf of the owner of real estate to conduct the sale, auction, leasing, or other disposition thereof at a salary or for a fee, commission, or any other consideration. It also includes any person who engages in the business of charging an advance fee or contracting for collection of a fee in connection with any contract whereby he undertakes primarily to promote the sale of real estate through its listing in a publication issued primarily for such purpose or for referral of information concerning the real estate to brokers, or both.

(2) `Broker-in-charge' means the broker who is designated as having the responsibility over the actions of all brokers, salesmen, and property managers licensed under him and also the responsibility, control, and liability over any real estate trust or escrow accounts.

(3) `Salesman' means any person employed or engaged under contract by or on behalf of a licensed broker to participate in any activity included in subsection (1) of this section for compensation or otherwise. The term includes activity provided in subsection (4) of this section.

(4) `Property manager' means any person who for a fee, commission, or other valuable consideration, or with the intent or expectation of receiving a fee, commission, or consideration, negotiates, or attempts to negotiate the rental, exchange, or leasing of any real estate or of the improvements thereon; or the listing of exchanges, rentals, or leases; or collects rents or attempts to collect rents; or who advertises or holds himself out as engaged in any of the foregoing activities.

The term also includes any person who engages in the business of charging an advance fee or contracting for collection of a fee in connection with any contract whereby he undertakes to promote the renting or leasing through its listing in a publication issued primarily for this purpose, or for referral of information concerning the rentals or leases.

An employee of the owner of rental property may perform the following duties without securing a property manager license. Such employee to be exempt from licensing is restricted as follows:

1. Must be an employee of the owner whose compensation for services shall be on a salary basis and not on a commission basis.

2. Employee may only exhibit a rental property to prospective tenants, accept applications for leases, and furnish such prospective tenants with information relative to the rental of such units. The activities must be further restricted as follows:


Printed Page 3014 . . . . . Thursday, April 25, 1996

(a) No binding contracts may be negotiated, drawn, or signed by the employee.

(b) The employee may only accept and receipt for rental payments or deposits that are made payable to the owner.

(c) The employee may not hold himself out as a property manager.

(5) `Property manager-in-charge' means the property manager who is designated as having the responsibility over the actions of all property managers licensed under him and also the responsibility, control, and liability over any real estate trust or escrow accounts.

(6) `Person' means individuals, corporations, partnerships, or associations, foreign and domestic.

(7) `Real estate' means leaseholds, as well as any other interest in land, whether corporeal, incorporeal, freehold, or nonfreehold, and whether the real estate is situate in this State or elsewhere.

SECTION 40-57-20. It is unlawful for any person to act as a real estate broker, counsellor, real estate salesman, property manager, or real estate auctioneer or to advertise or assume to act as such without first having obtained a license issued by the Real Estate Commission. Any person violating this provision is guilty of a misdemeanor and, upon conviction, must be punished by a fine of not more than five hundred dollars or by imprisonment for a term of not more than six months, or both, in the discretion of the court.

SECTION 40-57-30. The provisions of this chapter do not apply to any transaction involving the sale, rental, or leasing of real estate by anyone who is the owner thereof or who owns any interest therein, if the legal ownership interest in the real estate being sold, rented, or leased is identical to the owner's legal interest, or to the attorney at law of the owner acting within the scope of his duties. Ownership of stock in a corporation is not ownership of an interest in real estate owned by the corporation and does not exempt the stockholder from the provisions of this chapter, unless the stockholder owns or controls at least ten percent of the stock of the corporation.

SECTION 40-57-40. The provisions of this chapter are applicable only to those persons holding themselves out to the public as real estate brokers, counsellors, auctioneers, real estate salesmen, and property managers and shall not apply to agencies and instrumentalities of the state or federal government nor to employees of any lender or public officials making appraisals for federal, state, and local units of the government.

SECTION 40-57-50. The legislative delegations, including the Senators of the counties comprising each congressional district shall select a person experienced in real estate transactions to serve on the Real Estate


Printed Page 3015 . . . . . Thursday, April 25, 1996

Commission of South Carolina to establish the policy, and to issue general rules and regulations in carrying out the provisions of this chapter. The members of the commission shall serve for terms of four years, or until their successors shall have been selected and qualified. The members of the commission shall select one member from the State at large, and shall elect a chairman and vice-chairman from their membership. In addition to the real estate members on the board effective July 1, 1978, two persons not professionally engaged in the real estate business shall be appointed to the board by the Governor, with the advice and consent of the Senate. The terms of the public members shall be for four years and until successors are appointed and qualify. The two public members shall be appointed to assume office July 1, 1978.

SECTION 40-57-60. The Real Estate Commission shall receive no salary, but shall be allowed such per diem, subsistence and mileage as is authorized by law for members of boards and commissions.

SECTION 40-57-70. In order to carry out the provisions of this chapter, the Real Estate Commission shall retain such fees and other funds as may come into its possession.

SECTION 40-57-80. The Director of the Department of Labor, Licensing, and Regulation shall appoint any employees as may be necessary to carry out the work of the Real Estate Commission and the South Carolina Real Estate Appraisers Board defined in Section 40-60-20.

SECTION 40-57-90. Licenses as real estate broker, counsellor, real estate salesman, auctioneer, or property manager must be granted only to persons who submit satisfactory proof to the commission that they are trustworthy and bear a good reputation for honesty and fair dealing, and are competent to transact the business of a real estate broker, counsellor, real estate salesman, auctioneer, or property manager in that manner as to safeguard the interest of the public. A person applying for a license or an examination shall first submit to a credit report and satisfy requirements established by regulation. A real estate salesman must be employed by a real estate broker-in-charge in order to be licensed.

SECTION 40-57-100. (1) Any person desiring to act as a real estate broker, counsellor, salesman, property manager, or auctioneer shall file with the Real Estate Commission an application in writing upon that form and with that detail as the South Carolina Real Estate Commission prescribes, and each applicant shall first pass to the satisfaction of the commission the examination prescribed, unless he is exempt therefrom.

(2) Prerequisites for taking an examination for the broker's license are a minimum of three years of actual experience immediately preceding application as a licensed real estate salesman in this State or in another


Printed Page 3016 . . . . . Thursday, April 25, 1996

state having similar requirements and successful completion of at least ninety hours of instruction, including time spent on examinations. The ninety hours include the required sixty hours of instruction for a real estate salesman's license in the basic fundamentals of real estate and other related matters, all as specified by the Real Estate Commission and conducted by:

(a) a university or duly accredited college wherever situated if the credits were earned within five years prior to license application. For purposes of computing required hours of classroom instruction, one credit equals ten classroom hours; or

(b) a bona fide business school situated in this State and approved by the commission; or

(c) an institution, organization, or association approved by the commission; or

(d) correspondence where the course of instruction is part of an extension department of an accredited college or university.

(3) In lieu of the above prerequisites for the taking of a broker's license examination, an applicant may furnish to the commission evidence of one of the following:

(a) a baccalaureate degree with a major in real estate from an accredited college or university, or a Juris Doctor, or Bachelor of Laws degree;

(b) proof acceptable to the commission of at least five years of equivalent experience preceding license application in business activities closely related to real estate transactions.

(4) Upon satisfactorily passing the broker's examination, the applicant shall apply for his broker's license within ninety days from the examination date. Failure to do so will result in the applicant being required to reapply and be reexamined for his broker's license.

(5) As a prerequisite to taking the first year real estate sales examination, every applicant shall furnish evidence satisfactory to the Real Estate Commission of successful completion of thirty classroom hours of instruction in the fundamentals of real estate as prescribed by subsection (2). Upon passing the first year real estate sales examination, a first year real estate sales license must be immediately issued.

(6) Within one year of passing the first year exam each applicant shall satisfactorily complete an additional thirty hours of instruction in order to qualify for the final sales examination. The applicant also shall have held his first year real estate sales license in an active status for no less than a total of twelve months prior to taking the final sales examination and his license must be active at the time of taking the examination. The final


Printed Page 3017 . . . . . Thursday, April 25, 1996

sales examination must be taken not less than twelve nor more than fifteen months following the first year examination. Failure to meet these requirements will result in the cancellation of the first year sales license.

(7) In lieu of the classroom hours required for a final sales license, an applicant may furnish to the commission one of the following:

(a) satisfactory evidence of at least three years' experience within the past five years in real estate transactions acceptable to the commission;

(b) evidence that he has successfully completed at least six credit hours in real estate or real estate related subjects at an accredited college or university;

(c) evidence of a Juris Doctor or Bachelor of Laws degree.

(8) As a prerequisite to taking the property manager's examination, every applicant shall furnish evidence satisfactory to the Real Estate Commission of successful completion of thirty classroom hours of instruction in the fundamentals of real estate property management, all as specified by the Real Estate Commission and conducted by:

(a) a university or duly accredited college wherever situated, if the credits were earned within five years prior to license application. For purposes of computing required hours of classroom instruction, one credit equals ten classroom hours; or

(b) a bona fide business school situated in this State and approved by the commission; or

(c) an institution, organization, or association approved by the commission; or

(d) correspondence where such course of instruction is part of an extension department of an accredited college or university.

(9) In lieu of the above prerequisites for the taking of a property manager's license examination, an applicant may furnish to the commission evidence of one of the following:

(a) a baccalaureate degree with a major in real estate from an accredited college or university, or a Juris Doctor, or Bachelor of Laws degree;

(b) satisfactory evidence of at least three years' experience within the past five years in business activities closely related to real estate property management transactions.

SECTION 40-57-110. In addition to the proof of honesty, integrity, truthfulness, and good reputation of an applicant for a license, either real estate broker, counsellor, salesman, property manager, or auctioneer, the applicant shall submit to a written examination to be prepared and conducted by the commission or an institution designated by the commission.


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SECTION 40-57-115. (A) The commission, through its regulations and guidelines, shall establish standards relative to the establishment and conducting of all education courses required by this chapter and the review, approval, or regulation of schools, organizations, associations, institutions, or instructors offering these courses including, but not limited to, sponsorship by accredited colleges, universities, and private business entities and organizations; establishment, approval, and review of curriculum; instructors; hours of attendance; classroom facilities; enrollment and cancellation policies; texts; examinations; certificates of completion; and other operating procedures.

(B) The commission, by regulation, shall establish reasonable fees relative to the review, approval, or regulation of schools, organizations, associations, institutions, or instructors offering the education courses required by this chapter.

(C) The commission may deny, reprimand, fine, suspend, or revoke the approval of an instructor or school, organization, association, institution, or other educational provider if, after a hearing, the commission finds that the applicant, instructor, or educational provider has violated or failed to satisfy the provisions of this chapter or the regulations and guidelines established under this chapter.

SECTION 40-57-120. The commission shall issue licenses for three classifications: one for each real estate broker; one for each real estate salesman; and one for each property manager. The commission shall issue designated licenses within each classification as necessary and as established by regulation. No person may be licensed in more than one classification at any one time.

SECTION 40-57-130. This chapter shall not apply to foresters registered under the provisions of Chapter 27 of Title 48, so long as the sale of any land is merely incidental to the sale of timber thereon.

SECTION 40-57-140. (A) A nonresident of this State may become a real estate broker, real estate salesman, or property manager upon complying with all the provisions and conditions of this chapter. A person who is licensed as a real estate broker, real estate salesman, or property manager in another state, territory of the United States, or the District of Columbia shall submit a certificate of licensure from the real estate regulatory authority from the other jurisdictions at the time of filing an application for examination and copies of the records of any disciplinary actions taken against the applicant's license. In the application for examination, all questions of equivalency of academic and experience requirements of other states, territories, or the District of Columbia must be determined by the commission and, at the discretion of the


Printed Page 3019 . . . . . Thursday, April 25, 1996

commission, the nonresident applicant must comply with additional requirements specified by the commission.

(B) The commission may enter into reciprocal agreements with real estate regulatory authorities of other states which provide for waivers of education requirements or examinations if the commission considers the education and examination requirements of another state to be substantially equivalent to the requirements of this chapter and its regulations.

(C) A nonresident real estate salesman license may not be granted to an applicant unless that applicant is affiliated with a resident or nonresident broker licensed by the commission. If a nonresident licensee terminates the affiliation with a broker licensed by the commission, the license of the nonresident is canceled unless he places the license on inactive status or affiliates with another broker licensed by the commission.

(D) A nonresident is not required to maintain a place of business in this State if he maintains an active place of business in the state of domicile. Every nonresident applicant shall file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court in a judicial circuit of the state in which a cause of action may arise or in which the plaintiff may reside, by the service of a process or pleading, authorized by the laws of this State, on the chairman of the commission or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation, the consent stipulating and agreeing that the service of the process or pleading must be taken and held in all courts to be as valid and binding as if service had been made upon the applicant in the State of South Carolina. If the process or pleadings mentioned in this chapter are served upon the chairman of the commission or any authorized assistant or deputy appointed by the Director of the Department of Labor, Licensing, and Regulation, it must be by duplicate copies, one of which must be filed in the office of the commission and the other immediately forwarded by the commission by registered or certified mail to the applicant against whom the process or pleadings are directed, at the last known address of the applicant as shown by the records of the commission.

(E)

(1) A resident licensee who becomes a nonresident, within sixty days, must notify the commission in writing of the change in residency and comply with nonresident requirements or place his license on inactive status to avoid cancellation of his license.

(2) A nonresident licensee who becomes a resident of South Carolina, within sixty days, must notify the commission in writing of the change in


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