South Carolina General Assembly
116th Session, 2005-2006

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H. 3635

STATUS INFORMATION

General Bill
Sponsors: Rep. Harrison
Document Path: l:\council\bills\gjk\20230sd05.doc

Introduced in the House on February 24, 2005
Currently residing in the House Committee on Judiciary

Summary: Consumer Affairs Department

HISTORY OF LEGISLATIVE ACTIONS

     Date      Body   Action Description with journal page number
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   2/24/2005  House   Introduced and read first time HJ-8
   2/24/2005  House   Referred to Committee on Judiciary HJ-8

View the latest legislative information at the LPITS web site

VERSIONS OF THIS BILL

2/24/2005

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-68-15 SO AS TO PROVIDE THAT EFFECTIVE JULY 1, 2005, THE DUTIES, FUNCTIONS, AND RESPONSIBILITIES OF THE DEPARTMENT OF CONSUMER AFFAIRS, AND THE ADMINISTRATOR OF THE DEPARTMENT OF CONSUMER AFFAIRS, IN REGARD TO THE REGULATION OF STAFF LEASING SERVICES ARE DEVOLVED UPON THE DEPARTMENT OF LABOR, LICENSING AND REGULATION AND THE DIRECTOR OF THE DEPARTMENT, RESPECTIVELY; TO AMEND SECTION 40-68-10, RELATING TO DEFINITIONS IN REGARD TO STAFF LEASING SERVICES, AND SECTION 40-68-110, RELATING TO DISCLOSURES AND REPORTS REQUIRED IN REGARD TO EMPLOYEES, SO AS TO CONFORM THEM TO THE ABOVE PROVISIONS.

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

SECTION    1.    Chapter 68, Title 40 of the 1976 Code is amended by adding:

"Section 40-68-15.    (A)    Effective July 1, 2005, the duties, functions, and responsibilities of the Department of Consumer Affairs, and the Administrator of the Department of Consumer Affairs, under this chapter are devolved upon the Department of Labor, Licensing and Regulation and the director of the department, respectively.

(B)    All licenses issued before the effective date of this section are continued and shall be considered in full force and effect until their expiration date. Regulations promulgated by Department of Consumer Affairs and by the administrator under this chapter are considered promulgated by the Department of Labor, Licensing and Regulation unless and until revised by the Department of Labor, Licensing and Regulation.

(C)    All records and license or application fees held by the Department of Consumer Affairs pertaining to this chapter must be transferred to the Department of Labor, Licensing and Regulation on the effective date of this section."

SECTION    2.    Section 40-68-10 of the 1976 Code is amended to read:

"Section 40-68-10.    As used in this chapter:

(1)    'Applicant' means a business seeking to be licensed under this chapter or seeking the renewal of a license under this chapter.

(2)    'Client company' means a person that contracts with a licensee and is assigned employees by the licensee under that contract.

(3)    'Administrator' means the administrator of the Department of Consumer Affairs.

(4)    'Controlling person' means:

(a)    an officer or director of a corporation seeking to offer staff leasing services, a shareholder holding ten percent or more of the voting stock of a corporation seeking to offer staff leasing services, or a partner of a partnership seeking to offer staff leasing services;

(b)    an individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of a company seeking to offer staff leasing services through the ownership of voting securities, by contract or otherwise, and who is actively involved in the day-to-day management of the company; or

(c)    an individual employed, appointed, or authorized by a business seeking to offer staff leasing services to enter into a contractual relationship with a client company on behalf of the business.

(5)(4)    'Department' means the South Carolina Department of Consumer Affairs Labor, Licensing and Regulation.

(6)(5)    'Director' means the Director of the Department of Labor, Licensing and Regulation.

(6)    'Licensee' means a person licensed under this chapter to provide staff leasing services. The term includes a staff leasing services group licensed under Section 40-68-80.

(7)    'Person' means an individual, association, corporation, partnership, or other private legal entity.

(8)    'Staff leasing services' means an arrangement by which employees of a licensee are assigned to work at a client company and in which employment responsibilities are shared by the licensee and the client company. The employee's assignment is intended to be of a long-term or continuing nature, rather than temporary or seasonal in nature, and a majority of the work force at a client company worksite or a specialized group within that work force consists of assigned employees of the licensee. This does not include family-related businesses or similar groups that do not meet the requirements of item (8). Staff leasing services does not include temporary employees.

(9)    'Staff leasing services company' means an individual business entity that offers staff leasing services.

(10)    'Staff leasing services group' means a combination of staff leasing services companies that operates under a group license issued under Section 40-68-80.

(11)    'Assigned employee' means a person performing services for a client company as affected by a contract between a licensee and client company in which employment responsibilities are shared.

(12)    'Entire work force' means all persons engaged by a client company and are employees as defined in Title 42 including persons considered employees under Sections 42-1-400, 42-1-410, and 42-1-420."

SECTION    3.    Section 40-68-110(B) of the 1976 Code is amended to read:

"(B)    The administrator department by regulation may require the filing by licensees of other reports necessary to the implementation of this chapter."

SECTION    4.    This act takes effect upon approval by the Governor.

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