Reference is to the bill as introduced.
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/ SECTION 1. Article 1, Chapter 11, Title 40 of the 1976 Code is amended by adding:
"Section 40-11-262.
(A) In lieu of providing a financial
statement showing a minimum net worth for a license group as
required by Section 40-11-260, an applicant may provide a surety
bond from a surety authorized to transact surety business in
this State in an amount of two times the required net worth for
the applicant's license group with his initial or renewal
application.
(B) The surety bond
provided in subsection (A) must:
(1)
be continuous in form and must be maintained in effect for
as long as the applicant maintains the license issued by the
department or until the applicant submits a financial statement
showing that he meets the net worth requirements for the his
license group as provided in Section 40-11-260;
(2)
list the State of South Carolina as obligee for the
bond;
(3)
be for the benefit of any person who is damaged by an act
or omission of the applicant constituting a breach of
construction contract or a contract for the furnishing of labor,
materials, or professional services for construction undertaken
by the applicant, or by any unlawful act or omission of the
applicant in performing construction; and
(4)
be in addition to, and not in lieu of, any other surety
bond required of the applicant by law or regulation, or by any
party to a contract with the applicant.
(C) The surety bond
provided in subsection (A) only may be canceled by notification
to the board by the surety and the applicant thirty days prior
to cancellation. When the surety bond is canceled, the licensee
shall provide proof of net worth for his license group as
required by Section 40-11-260 within ten days of cancellation or
his license is suspended until written proof of net worth is
provided.
(D) Claims may be filed
against the bond on a form approved by the board in accordance
with procedures established by the board in regulation."
SECTION 2. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.