H*3798(Rat #0164, Act #0091 of 1999)  General Bill, By Bailey, Barfield, Allen, 
Allison, Altman, Askins, Bales, Battle, Beck, Breeland, G. Brown, H. Brown, 
J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Clyburn, Cobb-Hunter, Cotty, 
Dantzler, Davenport, Delleney, Edge, Emory, Gamble, Gourdine, Gilham, Hamilton, 
Harris, Harrell, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, 
Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, 
Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, 
Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, M. McLeod, W. McLeod, 
McMahand, Meacham, Miller, Moody-Lawrence, J.H. Neal, Neilson, Ott, Parks, 
Phillips, Pinckney, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, 
Scott, Sharpe, Sheheen, Simrill, J. Smith, F. Smith, R. Smith, Stille, Taylor, 
Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, 
Wilkins, Witherspoon, Woodrum and Young-Brickell
 A BILL TO AMEND SECTION 40-11-260, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
 1976, RELATING TO FINANCIAL STATEMENT REQUIREMENTS FOR GENERAL AND MECHANICAL
 CONTRACTORS' LICENSURE AND RENEWAL, SO AS TO PROVIDE THAT ON RENEWAL A GENERAL
 CONTRACTOR BIDDING AND PERFORMING ON JOBS NOT EXCEEDING A SPECIFIED AMOUNT MAY
 SUBMIT AN OWNER-PREPARED FINANCIAL STATEMENT WITH AN AFFIDAVIT OF ACCURACY
 INDICATING A CERTAIN REQUIRED NET WORTH, RATHER THAN REQUIRING A CERTIFIED
 PUBLIC ACCOUNTANT TO PREPARE THE FINANCIAL STATEMENT; AND TO AMEND SECTION
 40-11-360, RELATING TO EXEMPTIONS FROM CONTRACTOR'S LICENSURE CHAPTER, SO AS
 TO MAKE THE EXEMPTION FOR CERTAIN CATEGORIES OF PUBLIC OWNERS SUBJECT TO THE
 CONSUMER PRICE INDEX INFLATION FACTOR; AND ALSO TO EXEMPT DEPARTMENT OF
 CORRECTIONS' PROJECTS AND MAINTENANCE AND RENOVATION PROVIDED BY THE PUBLIC
 SERVICE AUTHORITY TO EXISTING FACILITIES; TO AMEND SECTION 40-59-77, AS
 AMENDED, RELATING TO RESIDENTIAL SPECIALTY CONTRACTORS, SO AS TO PROHIBIT A
 COUNTY OR MUNICIPALITY FROM ADOPTING REQUIREMENTS REQUIRING A RESIDENTIAL
 SPECIALTY CONTRACTOR TO ABIDE BY COMMERCIAL CONSTRUCTION LICENSING
 REQUIREMENTS UNLESS THE CONTRACTOR IS ENGAGED IN COMMERCIAL CONSTRUCTION; TO
 AMEND SECTION 40-11-60, AS AMENDED, RELATING TO THE AUTHORITY OF THE
 CONTRACTOR'S LICENSING BOARD TO PROMULGATE REGULATIONS, SO AS TO REQUIRE THE
 PROMULGATION OF REGULATIONS PERTAINING TO FILING OWNER-PREPARED FINANCIAL
 STATEMENTS FOR LICENSE RENEWAL PURPOSES.-AMENDED TITLE

   03/30/99  House  Introduced and read first time HJ-17
   03/30/99  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-17
   04/14/99  House  Committee report: Favorable with amendment Labor,
                     Commerce and Industry HJ-3
   04/20/99  House  Amended HJ-19
   04/20/99  House  Read second time HJ-19
   04/21/99  House  Read third time and sent to Senate HJ-83
   04/22/99  Senate Introduced and read first time SJ-12
   04/22/99  Senate Referred to Committee on Labor, Commerce and
                     Industry SJ-12
   05/19/99  Senate Committee report: Favorable with amendment Labor,
                     Commerce and Industry SJ-15
   05/20/99  Senate Amended SJ-32
   05/20/99  Senate Read second time SJ-32
   05/20/99  Senate Ordered to third reading with notice of
                     amendments SJ-32
   05/25/99  Senate Read third time and returned to House with
                     amendments SJ-21
   05/27/99  House  Senate amendment amended HJ-131
   05/27/99  House  Returned to Senate with amendments HJ-132
   06/01/99  Senate Concurred in House amendment and enrolled SJ-30
   06/09/99         Ratified R 164
   06/11/99         Signed By Governor
   06/11/99         Effective date 06/11/99
   06/29/99         Copies available
   07/06/99         Act No. 91

AN ACT TO AMEND SECTION 40-11-260, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FINANCIAL STATEMENT REQUIREMENTS FOR GENERAL AND MECHANICAL CONTRACTORS' LICENSURE AND RENEWAL, SO AS TO PROVIDE THAT ON RENEWAL A GENERAL CONTRACTOR BIDDING AND PERFORMING ON JOBS NOT EXCEEDING A SPECIFIED AMOUNT MAY SUBMIT AN OWNER-PREPARED FINANCIAL STATEMENT WITH AN AFFIDAVIT OF ACCURACY INDICATING A CERTAIN REQUIRED NET WORTH, RATHER THAN REQUIRING A CERTIFIED PUBLIC ACCOUNTANT TO PREPARE THE FINANCIAL STATEMENT; AND TO AMEND SECTION 40-11-360 RELATING TO EXEMPTIONS FROM CONTRACTOR'S LICENSURE CHAPTER, SO AS TO MAKE THE EXEMPTION FOR CERTAIN CATEGORIES OF PUBLIC OWNERS SUBJECT TO THE CONSUMER PRICE INDEX INFLATION FACTOR; AND ALSO TO EXEMPT DEPARTMENT OF CORRECTIONS' PROJECTS AND MAINTENANCE AND RENOVATION PROVIDED BY THE PUBLIC SERVICE AUTHORITY TO EXISTING FACILITIES; TO AMEND SECTION 40-59-77, AS AMENDED, RELATING TO RESIDENTIAL SPECIALTY CONTRACTORS, SO AS TO PROHIBIT A COUNTY OR MUNICIPALITY FROM ADOPTING REQUIREMENTS REQUIRING A RESIDENTIAL SPECIALTY CONTRACTOR TO ABIDE BY COMMERCIAL CONSTRUCTION LICENSING REQUIREMENTS UNLESS THE CONTRACTOR IS ENGAGED IN COMMERCIAL CONSTRUCTION; TO AMEND SECTION 40-11-60, AS AMENDED, RELATING TO THE AUTHORITY OF THE CONTRACTOR'S LICENSING BOARD TO PROMULGATE REGULATIONS, SO AS TO REQUIRE THE PROMULGATION OF REGULATIONS PERTAINING TO FILING OWNER-PREPARED FINANCIAL STATEMENTS FOR LICENSE RENEWAL PURPOSES.

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

Financial statements; net worth requirements

SECTION 1. Section 40-11-260(A)(3)(b) and (c) of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:

"(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with Generally Accepted Accounting Principles (GAAP), including all disclosures required by GAAP indicating a required net worth of seventy thousand dollars;

(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of seventy thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of seventy thousand dollars;"

Financial statements; net worth requirements

SECTION 2. Section 40-11-260(A)(4)(b) and (c) of the 1976 Code, as last amended by Act 440 of 1998, are further amended to read:

"(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP indicating a required net worth of one hundred fifty thousand dollars;

(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of one hundred fifty thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of one hundred fifty thousand dollars;"

Financial statements; net worth requirements

SECTION 3. Section 40-11-260(B)(3) of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:

"(3) Group Three

(a) bids and jobs not to exceed $50,000.00 per job;

(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with Generally Accepted Accounting Principles (GAAP), including all disclosures required by GAAP indicating a net worth of ten thousand dollars;

(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of ten thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of ten thousand dollars;"

Financial statements; net worth requirements

SECTION 4. Section 40-11-260(B)(4) of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:

"(4) Group Four

(a) bids and jobs not to exceed $125,000.00 per job;

(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP indicating a net worth of twenty-five thousand dollars;

(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of twenty-five thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of twenty-five thousand dollars;"

Exemption from chapter

SECTION 5. Section 40-11-360(A)(8) of the 1976 Code, as added by Act 440 of 1998, is amended to read:

"(8) Public owners performing all or a portion of any work on a project themselves as long as the work performed falls within the limitations of a License Group 3 General Contractor or a License Group 4 Mechanical Contractor, as adjusted by an inflation factor reflecting the Department of Labor's Consumer Price Index."

Exemptions from chapter

SECTION 6. Section 40-11-360(A) of the 1976 Code, as added by Act 440 of 1998, is amended by adding:

"(9) Renovations and maintenance projects of the South Carolina Department of Corrections whereby all labor is supplied from that department's own labor forces.

(10) The South Carolina Public Service Authority when performing maintenance and renovations to existing facilities and when performing work in accordance with Section 40-11-410(4)(n)."

General contractors - specialty subclassification

SECTION 7. Section 40-11-410(4) of the 1976 Code, as added by Act 440 of 1998, is further amended by adding at the end:

"(o) 'Boiler installation' which includes those who are qualified to install, repair, and service boilers and boiler piping including the boiler auxiliary equipment, controls, and actuated machinery and dryer rolls. To qualify for this subclassification, a person must pass a technical examination administered by the board or must be the holder of the ASME 'R' stamp or the ASME 'PP' stamp. Anyone holding the masonry or process piping classification as of January 1, 1998, and who has been actively engaged in boiler installation work under these classifications is qualified for this subclassification and exempt from the examination requirement of this subitem."

Residential specialty contractors, county and municipal requirements

SECTION 8. Section 40-59-77 of the 1976 Code, as last amended by Act 72 of 1993, 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. However, a county or municipality may not adopt requirements that would require that a residential specialty contractor abide by commercial construction licensing requirements unless he is engaged in commercial construction."

Regulations

SECTION 9. Section 40-11-60 of the 1976 Code, as amended by Act 440 of 1998, is further amended to read:

"Section 40-11-60. The board may adopt rules governing its proceedings and may promulgate regulations necessary to carry out the provisions of this chapter. Regulations must be promulgated to establish the form an owner must use to submit an owner-prepared financial statement as provided in Section 40-11-260(A)(3)(c), (A)(4)(c), (B)(3)(c), and (B)(4)(c). The department must furnish the form to the licensees."

Time effective

SECTION 10. This act takes effect upon approval by the Governor.

Ratified the 9th day of June, 1999.

Approved the 11th day of June, 1999.