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H 3618 Session 114 (2001-2002)
H 3618 General Bill, By Cato
A BILL TO AMEND SECTION 40-11-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA,
1976, RELATING TO DEFINITIONS PERTAINING TO THE LICENSURE AND REGULATION OF
CONTRACTORS, SO AS TO FURTHER SPECIFY DUTIES OF CONSTRUCTION MANAGERS AND TO
REVISE AND ADD VARIOUS DEFINITIONS; TO AMEND SECTION 40-11-50, AS AMENDED,
RELATING TO CONTRACTOR LICENSE FEES, SO AS TO ELIMINATE AND REVISE CERTAIN
FEES; TO AMEND SECTION 40-11-110, AS AMENDED, RELATING TO GROUNDS FOR
DISCIPLINARY ACTION, SO AS TO ALSO APPLY THESE GROUNDS TO CONSTRUCTION MANAGER
REGISTRANTS; TO AMEND 40-11-120, AS AMENDED, RELATING TO THE SCOPE AND
AUTHORITY OF THE BOARD TO IMPOSE SANCTIONS, SO AS TO FURTHER PROVIDE FOR
DISCIPLINARY ACTION AGAINST A CONTRACTOR WHO IS DISCIPLINED IN ANOTHER STATE;
TO AMEND SECTION 40-11-200, AS AMENDED, RELATING TO VIOLATIONS AND PENALTIES,
SO AS TO FURTHER PROVIDE FOR CRIMINAL PENALTIES AND FOR ACTIONS AND OMISSIONS
WHICH ARE CONSIDERED TO BE VIOLATIONS; TO AMEND SECTION 40-11-230, AS AMENDED,
RELATING TO QUALIFICATIONS FOR CERTIFICATION AS A QUALIFYING PARTY, SO AS TO
REQUIRE CERTAIN EXPERIENCE QUALIFICATIONS AND TO FURTHER PROVIDE FOR LICENSURE
REQUIREMENTS; TO AMEND SECTION 40-11-240, AS AMENDED, RELATING TO
QUALIFICATIONS FOR LICENSURE OF A CONTRACTOR, SO AS TO DELETE THE PROVISION
REQUIRING AN ENTITY TO SUBMIT A REFERENCE FROM A BANK OR OTHER FINANCIAL
INSTITUTION TO QUALIFY FOR LICENSURE; TO AMEND SECTION 40-11-250, AS AMENDED,
RELATING TO LICENSE RENEWAL, SO AS TO PROVIDE THAT A LICENSE LAPSES IF NOT
RENEWED WITHIN NINETY DAYS; TO AMEND SECTION 40-11-260, AS AMENDED, RELATING
TO FINANCIAL STATEMENT REQUIREMENTS FOR GENERAL CONTRACTOR LICENSURE AND
RENEWAL, SO AS TO REVISE THE MAXIMUM VALUE OF BIDS AND JOB-MINIMUM NET WORTH
REQUIREMENTS FOR CERTAIN LICENSE GROUPS, TO PROVIDE THAT ON AN INITIAL
APPLICATION A GENERAL CONTRACTOR BIDDING AND PERFORMING ON CERTAIN JOBS MAY
SUBMIT A FINANCIAL STATEMENT THAT IS REVIEWED BY A LICENSED PUBLIC ACCOUNTANT,
TO PROVIDE THAT ON A RENEWAL APPLICATION A GENERAL CONTRACTOR BIDDING AND
PERFORMING ON CERTAIN JOBS MAY NOT SUBMIT AN OWNER-PREPARED FINANCIAL
STATEMENT, TO PROVIDE THAT IF A LICENSEE DESIRES TO CHANGE TO A HIGHER LICENSE
GROUP THE LICENSEE MUST MEET THE FINANCIAL STATEMENT AND N
02/22/01 House Introduced and read first time HJ-4
02/22/01 House Referred to Committee on Labor, Commerce and
Industry HJ-6
A BILL
TO AMEND SECTION 40-11-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS PERTAINING TO THE LICENSURE AND REGULATION OF CONTRACTORS, SO AS TO FURTHER SPECIFY DUTIES OF CONSTRUCTION MANAGERS AND TO REVISE AND ADD VARIOUS DEFINITIONS; TO AMEND SECTION 40-11-50, AS AMENDED, RELATING TO CONTRACTOR LICENSE FEES, SO AS TO ELIMINATE AND REVISE CERTAIN FEES; TO AMEND SECTION 40-11-110, AS AMENDED, RELATING TO GROUNDS FOR DISCIPLINARY ACTION, SO AS TO ALSO APPLY THESE GROUNDS TO CONSTRUCTION MANAGER REGISTRANTS; TO AMEND 40-11-120, AS AMENDED, RELATING TO THE SCOPE AND AUTHORITY OF THE BOARD TO IMPOSE SANCTIONS, SO AS TO FURTHER PROVIDE FOR DISCIPLINARY ACTION AGAINST A CONTRACTOR WHO IS DISCIPLINED IN ANOTHER STATE; TO AMEND SECTION 40-11-200, AS AMENDED, RELATING TO VIOLATIONS AND PENALTIES, SO AS TO FURTHER PROVIDE FOR CRIMINAL PENALTIES AND FOR ACTIONS AND OMISSIONS WHICH ARE CONSIDERED TO BE VIOLATIONS; TO AMEND SECTION 40-11-230, AS AMENDED, RELATING TO QUALIFICATIONS FOR CERTIFICATION AS A QUALIFYING PARTY, SO AS TO REQUIRE CERTAIN EXPERIENCE QUALIFICATIONS AND TO FURTHER PROVIDE FOR LICENSURE REQUIREMENTS; TO AMEND SECTION 40-11-240, AS AMENDED, RELATING TO QUALIFICATIONS FOR LICENSURE OF A CONTRACTOR, SO AS TO DELETE THE PROVISION REQUIRING AN ENTITY TO SUBMIT A REFERENCE FROM A BANK OR OTHER FINANCIAL INSTITUTION TO QUALIFY FOR LICENSURE; TO AMEND SECTION 40-11-250, AS AMENDED, RELATING TO LICENSE RENEWAL, SO AS TO PROVIDE THAT A LICENSE LAPSES IF NOT RENEWED WITHIN NINETY DAYS; TO AMEND SECTION 40-11-260, AS AMENDED, RELATING TO FINANCIAL STATEMENT REQUIREMENTS FOR GENERAL CONTRACTOR LICENSURE AND RENEWAL, SO AS TO REVISE THE MAXIMUM VALUE OF BIDS AND JOB-MINIMUM NET WORTH REQUIREMENTS FOR CERTAIN LICENSE GROUPS, TO PROVIDE THAT ON AN INITIAL APPLICATION A GENERAL CONTRACTOR BIDDING AND PERFORMING ON CERTAIN JOBS MAY SUBMIT A FINANCIAL STATEMENT THAT IS REVIEWED BY A LICENSED PUBLIC ACCOUNTANT, TO PROVIDE THAT ON A RENEWAL APPLICATION A GENERAL CONTRACTOR BIDDING AND PERFORMING ON CERTAIN JOBS MAY NOT SUBMIT AN OWNER-PREPARED FINANCIAL STATEMENT, TO PROVIDE THAT IF A LICENSEE DESIRES TO CHANGE TO A HIGHER LICENSE GROUP THE LICENSEE MUST MEET THE FINANCIAL STATEMENT AND NET WORTH REQUIREMENTS IN THE HIGHER LICENSE GROUP AS REQUIRED IN THE INITIAL APPLICATION OR HAVE A PERFORMANCE BOND FOR EACH PROJECT, AND TO PROVIDE THAT IF AN ENTITY DOES NOT SUBMIT A FINANCIAL STATEMENT FOR INITIAL LICENSURE OR LICENSE RENEWAL OR DOES NOT MEET THE FINANCIAL STATEMENT REQUIREMENTS, A PERFORMANCE BOND MUST BE OBTAINED AND MUST BE IN EFFECT FOR CERTAIN PROJECTS; TO AMEND SECTION 40-11-290, AS AMENDED, RELATING TO LICENSURE OF NONRESIDENT CONTRACTORS, SO AS TO FURTHER DEFINE THE BOARD'S AUTHORITY IN GRANTING SUCH LICENSURE; TO AMEND SECTION 40-11-300, AS AMENDED, RELATING TO PROHIBITING DIVIDING WORK PROJECTS INTO PORTIONS TO AVOID THE FINANCIAL REQUIREMENTS OF CERTAIN LEVELS OF LICENSURE, SO AS TO REQUIRE CALCULATING THE TOTAL COST OF A PROJECT IN DETERMINING THE LEVEL OF LICENSURE REQUIRED; TO AMEND SECTION 40-11-310, AS AMENDED, RELATING TO PROHIBITING A PERSON FROM ENGAGING IN WORK ON A CONSTRUCTION PROJECT FOR WHICH THE PERSON INSPECTS FOR COMPLIANCE WITH CODE STANDARDS; TO AMEND 40-11-320, AS AMENDED, RELATING TO CONSTRUCTION MANAGER LICENSURE REQUIREMENTS, SO AS TO FURTHER PROVIDE FOR SUCH LICENSURE; TO AMEND SECTION 40-11-340, AS AMENDED, RELATING TO REQUIREMENTS FOR A CONTRACTOR TO ACT AS THE SOLE PRIME CONTRACTOR ON A PROJECT, SO AS TO REQUIRE CONTRACTORS SOLELY ENGAGED IN RESIDENTIAL CONSTRUCTION TO BE LICENSED OR REGISTERED AS A SPECIALTY CONTRACTOR; TO AMEND SECTION 40-11-360, AS AMENDED, RELATING TO ENTITIES, PROPERTY CONSTRUCTION PROJECTS, AND PERSONS THAT ARE EXEMPT FROM LICENSURE AND TO THE POSTING OF PUBLIC NOTICE RELATIVE TO PROJECTS REQUIRED TO BE PERFORMED BY LICENSED CONTRACTORS, SO AS TO FURTHER SPECIFY EXEMPTIONS, TO INCLUDE ADDITIONAL EXEMPTIONS, AND TO REQUIRE ADDITIONAL INFORMATION TO BE POSTED; TO AMEND SECTION 40-11-390, RELATING TO GRANTING GROUP I LICENSURE TO UNLICENSED ENTITIES ENGAGING IN GENERAL OR MECHANICAL CONSTRUCTION BEFORE OCTOBER 31, 1999, SO AS TO PROVIDE THAT THIS PROVISION APPLIES TO ENTITIES ENGAGED IN CONSTRUCTION IN THE AMOUNT OF FIVE THOUSAND DOLLARS OR MORE AND THAT APPLICATION MUST BE MADE BEFORE NOVEMBER 1, 2001; TO AMEND SECTION 40-11-410, AS AMENDED, RELATING TO GENERAL AND MECHANICAL CONTRACTOR'S LICENSE CLASSIFICATIONS AND SUBCLASSIFICATIONS, SO AS TO REVISE THE TYPES OF CONSTRUCTION WORK AND PROJECTS THAT ARE COVERED BY THE VARIOUS CLASSIFICATIONS AND SUBCLASSIFICATIONS; AND TO AMEND SECTION 40-11-420, AS AMENDED, RELATING TO THE REQUIREMENT TO OBTAIN BUILDING PERMITS, SO AS TO FURTHER SPECIFY REQUIREMENTS FOR CONTRACTORS CONTRACTING DIRECTLY WITH OWNERS SERVING AS PRIME CONTRACTORS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 40-11-20 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-20. For purposes of this chapter:
(1) 'Board' means the South Carolina Contractors' Licensing Board.
(2) 'Bid' means an offer to furnish labor, equipment, or materials or other services regulated by this chapter.
(3) 'Certificate holder' means a qualifying party.
(4) 'Contractor' means a general or mechanical contractor regulated under this chapter an entity that is executing or engaging in an activity that is regulated under this chapter.
(5) 'Construction manager' means an entity working for a fee whose duties are to supervise and coordinate the work of design professionals and multiple prime contractors, while allowing the design professionals and contractors to control individual operations and the manner of design and construction. Construction managers apply and integrate comprehensive project controls to manage the critical issues of time, cost, scope, and quality to meet the owner's specific needs and interests in a project. All contracts, bills, and monetary payments for design or any construction related activity for the project are made directly with and to the owner and not with the construction manager. A construction manager may hire and terminate the various design prime professionals and prime contractors with the direction and approval of the owner. A construction manager provides professional services to the owner of a project by organizing the effort, developing the plan, and identifying actions to be taken in the event of deviance from the plan. Services provided by a construction manager may include, but are not limited to:
(a) coordination, or management, or supervision of design or construction;
(b) cost management, including estimates of construction costs and development of project budgets;
(c) scheduling, which may include critical path techniques, for all phases of a project;
(d) design review, including review of formal design submission and construction feasibility; and
(e) bid packaging, and contractor selection, or directing monetary payments from the owner to the provider of supplies, building materials, or any other services or equipment related to the construction of the project. An owner, who performs construction management himself is not considered a construction manager for purposes of this chapter.
(6) 'Department' means the Department of Labor, Licensing and Regulation.
(7) 'Entity' means a sole proprietorship, partnership, limited liability partnership, limited liability company, association, joint venture, cooperative, corporation, or other legal entity authorized by law and approved by the board.
(8) 'General construction' means the installation, replacement, or repair of a building, structure, highway, sewer, grading, asphalt or concrete paving, or improvement of any kind to real property.
(9) 'General contractor' means an entity which performs or supervises or offers to perform or supervise general construction.
(10) 'License classification' or 'subclassification' means the type of construction for which a contractor may be licensed to do business.
(11) 'License group' means the financial limitations for bidding and performing general or mechanical construction.
(12) 'Licensee' means an entity which has been issued either a general or mechanical contractor's license by the department.
(13) 'Licensed contractor' means an entity that is licensed by the South Carolina Contractor's Licensing Board to engage in general or mechanical contracting within the State.
(14) 'Mechanical contractor' means an entity which performs or supervises, or offers to perform or supervise, mechanical construction.
(15) 'Mechanical construction' means the installation, replacement, or repair of plumbing, heating, air conditioning, process piping, refrigeration, lightning protection equipment, or electrical components, fixtures, or devices of any kind, excluding burglar and fire alarm work.
(16) 'Misconduct' means grounds for revocation, suspension, or other discipline of a licensee for a violation of this chapter or a satisfactory showing that a licensee has had a license or other authorization to practice in a construction related field denied, canceled, revoked, or suspended or has been disciplined in another state or federal jurisdiction.
(16)(17) 'Individual' means a natural person.
(17)(18) 'Prime contractor' means an entity which that contracts directly with an owner to perform general or mechanical construction.
(18)(19) 'Primary qualifying party' means a qualifying party who has been designated by a licensee as the principal individual responsible for directing or reviewing work performed by the licensee in a particular license classification or subclassification in which the individual has passed the appropriate examinations.
(19)(20) 'Public owner' means the State and any of its political subdivisions.
(20)(21) 'Qualifying party' means an individual who has been issued a certificate to qualify an entity for a license by way of examination in a license classification or subclassification.
(21)(22) 'Sole prime contractor' means the prime contractor for a project on which there is only one prime contractor.
(22)(23) 'Subcontractor' means an entity who contracts to perform construction services for a prime contractor or another subcontractor.
(23)(24) 'Total cost of construction' means the actual cost incurred by the owner, all contractors, subcontractors, and other parties for labor, material, equipment, profit, and incidental expenses for the entire project. This does not include the cost of design services unless those services are included in a construction contract.
(24)(25) 'Unlicensed contractor' means an entity performing or overseeing general or mechanical construction without a license.
(26) 'Registered' means an entity that is listed in the department's records and conducts business as a construction manager.
(27) 'Registrant' means an entity other than a general or mechanical contractor who has registered with the department pursuant to fulfilling the requirements of this chapter as a construction manager.
(28) 'Unregistered' means an entity that is required to register with the board pursuant to this chapter as a construction manager and fails to comply with the requirement.
(29) 'Permit' means a written document or certification from an authority or municipal jurisdiction allowing an entity or individual to engage in general and mechanical contracting or construction management within the applicable area of authority or jurisdiction."
SECTION 2. Section 40-11-50 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-50. (A) The Department of Labor, Licensing and Regulation shall provide all administrative, fiscal, investigative, inspectional, clerical, secretarial, and license renewal operations and activities of the board and shall administer the board as a revenue funded board in accordance with Section 40-1-50.
(B) The following fees will apply:
(1) Biennial license fee--$350.00
(2) Renewal fee--$350.00
(3) Biennial Certificate Fee--$10.00
(4) Late renewal penalty:
(a) $100.00 for up to 30 thirty days,
(b) $150.00 for 31 up to 60 sixty days,
(c) $200.00 for 61 up to 90 ninety days,
(d) an initial application is required after ninety days.
(5)(4) Replacement of lost or destroyed certificate--$10.00
(6)(5) Replacement of lost or destroyed license--$ 5.00
(7) Annual inactive certificate status fee--$10.00 per year for up to four years
(8)(6) Annual Four-year inactive license status fee valid for four consecutive years--$110.00 per year. For purposes of this item, "inactive license status" means the holding of a valid license by a contractor who is not actively submitting bids to perform work under that practicing under the license."
SECTION 3. Section 40-11-110 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-110. (A) The board may impose disciplinary action authorized by this chapter upon a licensee, certificate holder, registrant, or other entity or individual if the board finds any of these conditions:
(1) subsequent discovery of facts which if known at the time of issuance or renewal of a license or certificate would have been grounds to deny the issuance or renewal of a license, registration, or certificate;
(2) negligence, performing substandard work, incompetence, or misconduct;
(3) abandonment of a contract, permit, or refusal to perform after submitting a bid on work without legal excuse for the abandonment or refusal;
(4) fraud or deceit in obtaining a license, registration, permit, or certification;
(5) violation of a provision of this chapter, Article 1, Chapter 1 of this title or a regulation promulgated under these chapters;
(6) misrepresentation of a material fact by an applicant in obtaining a license, registration, permit, or certificate;
(7) conviction or entering a guilty plea or plea of nolo contendere in a court of competent jurisdiction of this or any other state, district, or territory of the United States or of a foreign country of the offense of forgery, embezzlement, obtaining money under false pretenses, theft, extortion, or conspiracy to defraud or other like offense regardless of whether an appeal has been sought;
(8) conviction or entering a guilty plea or plea of nolo contendere of a felony or a crime involving moral turpitude in connection with the performance of a contract for construction regardless of whether an appeal has been sought;
(9) aiding or abetting an unlicensed entity or certificate holder to evade the provisions of this chapter, by combining or conspiring with an unlicensed entity improperly registered or licensed entity or certificate holder, or allowing one's license to be used by an unlicensed entity, to evade the requirements of this chapter, or acting as agent, partner, or associate, of an unregistered or unlicensed entity or obtaining a building permit or permit application in the name of the registrant, qualifying party, or licensee and listing the registrant, qualifying party, or licensee as the entity or individual that will engage or supervise any contracting work or activity when the registrant, qualifying party, or licensee does not have proper registration, license, or certificate to engage in the work or activity, or performing work for an entity that is not properly licensed, or hiring an entity to perform work that is not properly licensed;
(10) entering into a contract with an unregistered or unlicensed or unregistered contractor for work to be performed for which a license or registration is required;
(11) false, misleading, or deceptive advertising whereby a member of the public or a public entity may be misled and injured;
(12) contracting or offering to contract or submitting a bid while a license, registration, or certificate is under suspension or probation;
(13) failure to obtain a building permit as required by a local or state government before engaging in construction;
(14) failure to take appropriate corrective action to comply with this chapter or a regulation promulgated under this chapter without valid justification within a reasonable period of time after receiving a written directive from the department;
(15) failure to maintain the net worth requirements for licensure;
(16) failure to comply with an order of the board;
(17) failure to provide pertinent records and documents as requested by the department or board;
(18) failure to maintain a business address accessible to the public;
(19) failure to comply with a directive of the department;
(20) failure to notify the department of changes in information required in an original or renewal application;
(21) contracting or offering to contract for construction work exceeding the limitations of a group or outside the classification or subclassification of a registration, license, or certificate;
(22) attempting to serve in the capacity of primary qualifying party while serving a jail sentence; or
(23) departure from an applicable building code of the State of South Carolina or any of its political subdivisions as determined by a court of competent jurisdiction.;
(24) failure to take appropriate corrective action to comply with this chapter or a regulation promulgated under this chapter without valid justification and within a prescribed period of time or time limit provided in this chapter;
(25) failure to obtain a proper registration, license, or certificate before submitting a bid for a regulated project; or
(26) failure of a licensee, qualifying party, or registrant to meet the requirements of this chapter.
(B) Disciplinary action may be taken against an entity or individual who the board determines to be responsible for violations of this chapter regardless of changes in corporate identity or federal employer identification subsequent to the violation. In determining responsibility, the board may consider, but is not limited to, an individual's:
(1) participation in management or supervision related to the violation;
(2) position as sole proprietor, partner, officer, or qualifying party.
(C) The board may, in addition to all other disciplinary actions, require a licensee, certificate holder, or other entity or individual to pay a civil penalty of up to five thousand dollars for each violation of this chapter or of a regulation promulgated under this chapter and may order an unlicensed contractor to cease and desist from violating a provision of this chapter.
(D) Upon presentation to the court of common pleas by the department of an affidavit for nonpayment of an administrative penalty under a citation which is a final order or a civil penalty assessed by the board pursuant to subsection (C), the court shall issue an order for judgment to be filed in the office of the Clerk of Court.
(E) A license or certificate that is canceled by the department or revoked by the board must be returned to the department within fifteen days of notification by the department.
(F) No sooner than one year after revocation of a license or certificate by the board, the entity or individual who held that license or certificate may apply for another. The applicant must meet all requirements for initial licensure or certification and must appear before the board to present evidence that his practice will not unreasonably endanger the public.
(G) If a license is canceled by the department, the licensee must apply for initial licensure.
(H) Work in progress may be completed by the licensee if the licensee's license is revoked or suspended; however,
(1) no new work may be bid or started after revocation or suspension of a license upon proper notification by the department,
(2) unless otherwise directed by the board, the revocation, suspension, or restriction of a license or certificate does not become becomes effective until the tenth day following the delivery to the licensee or qualifying party of a written decision of the board. Service of a petition for a review of the decision does not stay the board's decision pending completion of the appellate process in accordance with the Administrative Procedures Act.
(I) Where a licensee's business is dissolved for whatever reason, that license must be canceled by the department.
(J) The board may revoke, suspend, or restrict an individual license classification or subclassification without effect to other license classifications or subclassifications.
(K) It is a violation of this chapter for an entity to submit a bid or offer for general or mechanical construction within this state on a project that requires licensure or registration under this chapter if the entity is not properly licensed or registered in accordance with this chapter."
SECTION 4. Section 40-11-120 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-120. (A) Acts or omissions by a licensee causing the denial, revocation, suspension, or other discipline of a license or other authorization to practice in a construction related field in another state or federal jurisdiction supports the issuance of a formal complaint and the commencement of disciplinary proceedings in this State, if the disciplinary action in the other jurisdiction is based upon grounds that would constitute misconduct in this State.
(B) Proof of these acts or omissions may be shown by the copy of the transcript of record of the disciplinary proceedings in another state or federal jurisdiction or a copy of the final order, consent order, or similar order stating the basis for the action taken.
(C) Upon the filing of a complaint alleging that a licensee has been disciplined in another state or federal jurisdiction, the licensee must produce for the board copies of all transcripts, documents, and orders used, relied upon, or issued in the other jurisdiction. Failure to produce these items within ninety days of the board's request for them automatically results in the immediate temporary suspension of the entity's license in this State until the items have been provided to the board.
(D) The licensee may present mitigating testimony to the board regarding the disciplinary action taken in another state or federal jurisdiction or evidence that the acts or omissions committed in the other jurisdiction do not constitute misconduct in this State.
(E) In addition to the sanctions the board may impose against a person pursuant to this chapter, the board may take disciplinary action against a person as provided for in Section 40-1-120."
SECTION 5. Section 40-11-200 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-200. (A) A person who practices or offers to practice in this State in violation of this chapter or who knowingly submits false information for the purpose of obtaining a license is guilty of a misdemeanor and, upon conviction, must be imprisoned not more than one year or fined not more than five thousand dollars.
(1) Charges under this section may be preferred by the board by delivering evidence of a violation to a solicitor or a magistrate having jurisdiction.
(2) Upon conviction under this section, the fines and assessments imposed by a court must be administered pursuant to Sections 14-1-205, 14-1-206, 14-1-207, 14-1-208, and 14-1-209.
(B) It is a violation of this chapter for an awarding authority, owner, contractor, or an agent of an authority, owner, or contractor to consider a bid, sign a contract, or allow a contractor to begin work unless the bidder or contractor has first obtained the licenses required by this chapter. Bids or contracts submitted by contractors may not be reconsidered or resubmitted to an awarding authority, contractor, or owner if the contractor was not properly licensed at the time the initial bid or contract was submitted.
(C) Charges under this section may be preferred by the board by delivering evidence of a violation to a solicitor or a magistrate having jurisdiction. It is a violation of this chapter for an awarding authority, owner, contractor, or an agent of an awarding authority, owner, or contractor to award a bid, sign a contract, allow a contractor to begin work, or issue or obtain any type of construction permit unless the bidder or contractor has first obtained the licenses or registration required by this chapter.
(D) Upon conviction under this section, the fines and assessments imposed by a court must be administered pursuant to Sections 14-1-205, 14-1-206, 14-1-207, 14-1-208, and 14-1-209. Contracts or written agreements for general or mechanical construction within this State that have been accepted, approved, signed, or awarded by an awarding authority, owner, or contractor may not be reconsidered or submitted to an awarding authority, owner or contractor if the entity that was awarded the project is not properly licensed or registered at the time the contract or written agreement was submitted.
(E) An entity that is not properly licensed or registered pursuant to this chapter must immediately withdraw his bid, offer, or contract or submit his resignation from the project, or both withdraw and resign. The entity may not benefit from a project in which the entity is in violation. The entity may not submit another bid or work as a subcontractor to a properly licensed contractor on any project in which the entity has been in violation."
SECTION 6. Section 40-11-230 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-230. (A) To qualify for certification as a qualifying party, an applicant must:
(1) submit a completed application on a form approved by the board and pay all applicable examination fees to the examination provider;
(2) submit proof of having attained a passing grade of seventy percent or better on a technical examination where required for each classification or subclassification of licensure applied for; and
(3) attain a grade of seventy percent or better on an examination of South Carolina law regulating general and mechanical contracting.; and
(4) submit an affidavit verifying fulltime employment with former or current employers:
(a) demonstrating at least two years commercial work experience within the previous five years in the license classification or subclassification for which the application is made; or
(b) providing additional proof of employment experience as the board requires.
(5) An individual may only take an examination in a license classification or subclassification two up to four times in a twelve-month period and thereafter only once in six months. After passing an examination for a classification, an individual may not take an examination in the same classification that is provided by this board without approval from the board.
An individual may take an examination and be issued a certificate in any license classification or subclassification regardless of their current place of employment.
Upon fulfillment of all requirements of this subsection, the department shall issue a qualifying party a certificate which shall include that includes the individual's full name, certificate number, and classifications or subclassification for which the individual is certified.
An applicant who has not been certified as a qualifying party for four or more consecutive years must take and pass the technical or Code of Laws examination, or both, as required by the board.
An individual may only serve as qualifying party for one licensee with the exception except as provided in subsection (C) (H).
(B) To become designated by an entity as a primary qualifying party, an individual must:
(1) hold a valid certificate issued pursuant to this chapter satisfy the requirements of subsection (A); and
(2) submit an affidavit verifying employment from former or current employers for whom the applicant was employed full-time for at least two years within the previous five years in the license classification or subclassification for which application is made or submit additional proof of employment experience as approved by the board;
(3) submit proof of an affidavit verifying full-time employment in a responsible management position by the entity for whom the applicant will be the primary qualifying party.
(C) A primary qualifying party may not take other employment that would conflict with the duties as primary qualifying party or diminish the ability to adequately supervise work performed by the licensee. An individual who has passed the limited building contractor examination may desiring to be certified and serve as a primary qualifying party for a license group one, two, or three general contractor licensed pursuant to Section 40-11-410(A) must pass either the limited building contractor examination or the unlimited general contractor examination. The licensed entity is limited to the construction of new structures that are no more than three stories in height. Renovation and non-structural work is permitted. Additions to structures over three stories in height are not permitted. Structures built by licensees for which the primary qualifying party has taken and passed the limited building contractor examination are restricted to three stories in height.
(D) An individual desiring to who has passed the unlimited building contractor examination may be certified and serve as a primary qualifying party for a license group four or five general contractor licensed pursuant to Section 40-11-410(A) must pass the unlimited general contractor examination and no construction height restrictions apply.
(E) An individual who has a residential builder's license and has two years experience as a licensed residential builder may apply for licensure. The individual or entity is restricted to the general contractor group 1, 2, or 3 building classification for the first two years. After two years as a licensed group 1, 2, or 3 contractor under the building classification, the qualifying party may apply for the group 4 or 5 building classification. An individual who has a residential specialty registration or license and has two years residential experience in nonstructural work may apply for licensure under the specialty general contractor nonstructural subclassification.
(F) When a primary qualifying party ceases to serve as the primary qualifying party for a licensee, the licensee and the primary qualifying party shall notify the department in writing within fifteen days of the disassociation. If the licensee notifies the department within the prescribed time, the license remains in good standing for ninety days from the date the department receives notice of the disassociation. Failure to notify the department within fifteen days of a primary qualifying party's disassociation results in automatic license and certificate cancellation.
(G) If, after properly notifying the department of disassociation, the licensee fails to designate a replacement primary qualifying party pursuant to the requirements of this chapter within ninety days, the department shall suspend the licensee's license until a primary qualifying party is designated pursuant to the requirements of this chapter.
(C)(H) If a qualifying party desires to serve as primary qualifying party for two entities, both entities must engage in business from the same physical location. The qualifying party must:
(1) be involved in the operation of both entities on a daily basis;
(2) derive a livelihood from the operation of both entities;
(3) have ownership in both entities with at least fifty percent ownership in one of the entities.;
(4) notify the department in writing requesting to qualify two entities and submit a notarized affidavit stating the exact wording in items 1, 2, and 3.
(D)(I) Building officials or other individuals who have or are able to meet the requirements of a qualifying party and are employed by an unlicensed entity that is actively associated with the construction industry may retain qualifying party status."
SECTION 7. Sections 40-11-240 and 40-11-250 of the 1976 Code, as last amended by Act 440 of 1998, are further amended to read:
"Section 40-11-240. (A) To qualify for licensure, an entity must:
(1) be organized or registered under applicable South Carolina law as a sole proprietorship, partnership, limited liability partnership, limited liability company, or a domestic or foreign corporation;
(2) have a certified qualifying party in full-time employment in a responsible management position; and
(3) meet all requirements for licensure as provided in this chapter.
(B) To qualify for a license, an entity must submit:
(1) a completed application on a form approved by the board;
(2) all required fees;
(3) a detailed statement of current financial condition as required by this chapter;
(4) reference from a bank or other financial institution on a form as prescribed by the department;
(5) the name and certificate number of the primary qualifying party for each classification or subclassification for which a license is desired;
(6)(5) proof an affidavit stating that the entity's primary qualifying party in each classification or subclassification is an employee in a responsible management position; and
(7)(6) all documentation required by the department pursuant to the requirements of this chapter.
(C) A licensee may list additional qualifying parties.
(D) A change of an entity's name, organizational status, or federal employer identification number must be reported to the department within fifteen days. Failure to do so results in license cancellation fifteen days from the date of change. and Any change requires the new entity to submit an initial application and meet all requirements for licensure.
Section 40-11-250. (A) All licenses may be renewed biennially. A licensee shall apply to the department for license renewal by the expiration date on a form approved by the board. Renewal applications not postmarked by the expiration date result in a lapsed license. An entity which fails to renew and which continues to engage in construction is practicing without a license and is subject to the penalties prescribed in this chapter.
(B) A license which has lapsed may be renewed within ninety days from date of expiration by filing a renewal application and upon payment of renewal and late fees. An entity whose license is lapsed for failure to renew within ninety days must submit an application and meet all qualifications for initial licensure to engage in construction."
SECTION 8. Section 40-11-260 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-260. (A) An applicant for a an initial general contractor's license or a general contractor's license renewal who performs or offers to perform contracting work for which the total cost of construction is greater than $5,000.00 five thousand dollars, and an applicant for license group revisions must provide an acceptable financial statement with a balance sheet date dated no more than twelve months before the date of the relevant application showing a minimum net worth for each license group as follows:
(1) Group One
(a) bids and jobs not to exceed $30,000.00 $50,000 per for each job;
(b) required net worth of $6,000.00 $10,000;
(c) on initial application and on renewal, an a notarized owner-prepared financial statement with an affidavit of accuracy signed by the owner as being true and accurate to the best of his knowledge;
(d) on renewal, an owner-prepared financial statement with an affidavit of accuracy;
(2)Group Two
(a) bids and jobs not to exceed $100,000.00 $250,000 per for each job;
(b) required net worth of $20,000.00 $50,000;
(c) on initial application and on renewal, an a notarized owner-prepared financial statement with an affidavit of accuracy signed by the owner as being true and accurate to the best of his knowledge;
(d) on renewal, an owner-prepared financial statement with an affidavit of accuracy;
(3) Group Three
(a) bids and jobs not to exceed $350,000.00 $750,000 per for each job;
(b) required net worth of $150,000;
(c) 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) AICPA Professional Standards for Accounting and Review Services (SSARS), including all disclosures required by Generally Accepted Accounting Principles (GAAP) GAAP indicating a required net worth of seventy thousand dollars;
(c)(d) on renewal, an a notarized owner-prepared financial statement with an affidavit of accuracy signed by the owner as being true and accurate to the best of his knowledge, 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;
(4) Group Four
(a) bids and jobs not to exceed $750,000.00 $1,750,000 per for each job;
(b) required net worth of $250,000;
(c) on initial application, a financial statement compiled reviewed by a licensed certified public accountant or a licensed public accountant in accordance with GAAP SSARS, including all disclosures required by GAAP indicating a required net worth of one hundred fifty thousand dollars;
(c)(d) 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 SSARS, including all disclosures required by GAAP, and indicating a required net worth of one hundred fifty thousand dollars;
(5) Group Five
(a) bids and jobs unlimited;
(b) required net worth of $250,000.00 $300,000;
(c) on initial application, a financial statement audited by a licensed certified public accountant or a licensed public accountant in accordance with GAAP Generally Accepted Auditing Standards (GAAS), including all disclosures required by GAAP;
(d) on renewal, a financial statement reviewed by a licensed certified public accountant or a licensed public accountant in accordance with GAAP SSARS, including all disclosures required by GAAP;
(B) An applicant for a an initial mechanical contractor's license or a mechanical contractor's license renewal who performs or offers to perform contracting work for which the total cost of construction is greater than five thousand dollars, and an applicant for license group revisions must provide an acceptable financial statement with a balance sheet date dated no more than twelve months before the date of the relevant application showing a minimum net worth for each license group as follows:
(1) Group One
(a) bids and jobs not to exceed $17,500.00 $25,000 per for each job;
(b) required net worth of $3,500.00 $5,000;
(c) on initial application, and on renewal an a notarized owner-prepared financial statement with an affidavit of accuracy signed by the owner as being true and accurate to the best of his knowledge;
(d) on an owner-prepared financial statement with an affidavit of accuracy;
(2) Group Two
(a) bids and jobs not to exceed $30,000.00 $50,000 per for each job;
(b) required net worth of $6,000.00 $10,000;
(c) on initial application, and on renewal an a notarized owner-prepared financial statement with an affidavit of accuracy signed by the owner as being true and accurate to the best of his knowledge;
(d) on renewal, an owner-prepared financial statement with an affidavit of accuracy;
(3) Group Three
(a) bids and jobs not to exceed $50,000.00 $100,000 per for each job;
(b) required net worth of $20,000;
(c) 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) AICPA Professional Standards for Accounting and Review Services (SSARS), including all disclosures required by Generally Accepted Accounting Principles (GAAP) GAAP indicating a net worth of ten thousand dollars;
(c) (d) on renewal, an a notarized owner-prepared financial statement with an affidavit of accuracy signed by the owner as being true and accurate to the best of his knowledge 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 SSARS, including all disclosures required by GAAP, and indicating a required net worth of ten thousand dollars;
(4) Group Four
(a) bids and jobs not to exceed $125,000.00 $200,000 per for each job;
(b) required net worth of $40,000;
(c) on initial application, a financial statement compiled reviewed by a licensed certified public accountant or a licensed public accountant in accordance with GAAP SSARS, including all disclosures required by GAAP indicating a net worth of twenty-five thousand dollars;
(c)(d) 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 SSARS, including all disclosures required by GAAP, and indicating a required net worth of twenty-five thousand dollars;
(5) Group Five
(a) bids and jobs unlimited;
(b) required net worth of $100,000.00 $100,000;
(c) on initial application, a financial statement audited by a licensed certified public accountant or a licensed public accountant in accordance with GAAP Generally Accepted Auditing Standards (GAAS), including all disclosures required by GAAP;
(d) on renewal, a financial statement reviewed by a licensed certified public accountant or a licensed public accountant in accordance with GAAP SSARS, including all disclosures required by GAAP;
(C) In reviewing an entity's balance sheet to determine the net worth of the applicant or licensee, the board may consider:
(1) deviations from the standard accountant's report;
(2) notes to the financial statement;
(3) additional financial information submitted by the applicant or licensee for renewals;
(4) personal financial statements of an entity's principals for an entity with less than two year's years' operating experience.
(D) If a licensee desires to change to a higher license group as established in this section, the licensee must meet the financial statement and net worth requirements in the higher license group number as required in the initial application or have a performance and payment bond for each project.
(E) If the board has reasonable cause to believe that an entity has not maintained the minimum net worth for its group, the board may order the entity to submit additional financial information, and, if appropriate, may modify the entity's license to reflect the appropriate limitation group.
(F) Contractors licensed before April 1, 1999, must be licensed in the new group closest to their existing limitations until their license renewal date, at which time they must meet the financial requirements for license renewal set forth in this section.
(G)(1) If an entity does not desire to submit a financial statement for initial licensure or license renewal or does not meet the financial statement requirements contained in this section, a performance and payment bond must be obtained and must be in effect for every project for which the total cost of construction is greater than five thousand dollars.
(2) An entity must submit a notarized written statement on a form provided by the department stating that the entity shall obtain a performance and payment bond for each project when the total cost of construction is greater then five thousand dollars.
(3) The department may request proof of a performance and payment bond for a project at any time. Proof of bonding must be submitted to the department upon request within ten working days. Failure to submit proof of a performance bond for each project or failing to obtain a performance bond for each project results in the immediate cancellation of the entity's license by the department. The license may be reinstated pending completion of sanctions as provided by the board or the department under Chapter 1 and this chapter.
(4) Performance and payment bonds required by this section must be obtained from surety insurers authorized by the Department of Insurance to do business in this State. The bond form must be equivalent to the American Institute of Architects performance and payment bond form AIA312. Whether a bond form is equivalent to the bond form AIA312 must be determined by the board."
SECTION 9. Section 40-11-290 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-290. The board may grant a license or certificate to an applicant holding a license or certificate in good standing in another state or jurisdiction whose requirements for licensure and certification are equal comparable to or greater than those required by this chapter if the. This comparison may be reviewed and accepted by the board or department upon approval from the board if the comparison is provided by a reputable testing service or if it can be determined by the board or department that the examination is comparable or greater. The board has is authorized an to enter into a written exam waiver agreement with the State. An applicant may exempt the technical examination required for certification if the applicant can verify passing an examination in another state which is essentially the same as the examination required by the department regardless of the absence of a reciprocal agreement with that state any state or licensing jurisdiction when it can be determined that the other state or jurisdiction has an examination comparable to or greater than examinations required by the board. An applicant for certification or licensure under this section may be required to pass the South Carolina Code of Laws examination and must comply with all other licensing and certification requirements of this chapter."
SECTION 10. Section 40-11-300 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-300. (A) It is unlawful for an owner, a construction manager, a prime contractor, or another entity with contracting or hiring authority on a construction project to divide work into portions so as to avoid the financial or other requirements of this chapter as it relates to license classifications or subclassifications or license groups, or both. The total cost of construction For a regulated classification of work to be performed or any segment of construction management, the total cost or construction for the work in the required classification must be used to determine the appropriate license group for a project whether a license or registration is required. The total cost of construction must be used to determine the appropriate license group limitation for a sole prime contractor or construction manager that contracts for the entire project.
(B) An entity or individual engaging in general or mechanical construction on a project without the required license, registration, or certificate must immediately withdraw from the construction project and may not act as a subcontractor engage in any activity on that construction project."
SECTION 11. Section 40-11-310 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-310. No entity or employee of an entity who has the responsibility to regulate, inspect, approve, or certify compliance with construction codes or standards shall engage in the construction of a project that is subject to regulation or ownership by that entity. This section does not apply to a member of the board when performing construction subject to this chapter or to contractors who are also performing construction management services for an owner."
SECTION 12. Section 40-11-320 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-320. (A) A construction manager shall hold a South Carolina license in one or more of the following professional classifications:
(1) the general or mechanical contractor license classification and license group that would otherwise be applicable to a sole prime contractor working on the construction project;
(2) a registered engineer pursuant to Chapter 21 of this title who meets the financial requirements set forth in Section 40-11-260 that would otherwise apply to a sole prime contractor working on the construction project. The proper financial statement must be submitted at any time when requested by the board. Failure to submit a proper financial statement is considered a violation of this chapter;
(3) an architect pursuant to Chapter 3 who meets the financial requirements set forth in Section 40-11-260 that would otherwise apply to a sole prime contractor working on the construction project. The proper financial statement must be submitted at any time when requested by the board. Failure to submit a proper financial statement is considered a violation of this chapter.
(B) An architect or engineer licensed in South Carolina who is monitoring the execution of design plans or who is performing as an on-site representative for construction quality control or quality assurance, or both, for a project owner is not a construction manager for the purposes of this section.
(C) An entity acting as a construction manager shall file a letter with complete a registration form provided by the department designating one license being used to register and qualify for the practice of construction management pursuant to the requirements of this chapter. Complaints filed against construction managers who have qualified themselves as architects or engineers must be referred by the department to the appropriate board having jurisdiction over them. Those boards may impose disciplinary action and civil penalties as set forth in this chapter, or as otherwise provided by law. All other complaints filed against construction managers with a general contractor's license designation must be heard by the board and disciplinary action must be brought pursuant to this chapter. An entity's authority to practice as a construction manager may be revoked or suspended without other effect to the license held by that entity.
(D) The authority to assume the role of construction manager is granted to an entity holding a general or mechanical contractor's license or an architect's license or engineer's registration pursuant to the laws of this State. This authority does not permit architects and engineers to assume the role of general or mechanical contractors as defined in Section 40-11-20 unless properly licensed pursuant to this chapter. Construction managers may not perform design work themselves unless properly licensed as an architect or professional engineer. Entities performing construction themselves or holding construction contracts in their own name must be treated as general contractors or mechanical contractors, as appropriate, rather than construction managers for the purposes of this chapter, and must be licensed pursuant to the requirements of this chapter to perform that work. Construction managers may hire or terminate the various design professionals and prime contractors with the direction and approval of an owner.
(E) A licensed general or mechanical contractor does not have to submit a new financial statement unless the limitation requested is different from the last financial statement on file with the department.
(F) An individual or entity submitting a bid for a project as a construction manager must have one of the three required licenses as required by this chapter before submitting a bid."
SECTION 13. Section 40-11-340 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-340. (A) An entity licensed under the classifications or subclassifications in Sections 40-11-410(1), (2), or (3) may act as a sole prime contractor on a project if forty percent or more of the work as measured by the total cost of construction falls under one or more of the licensee's license classifications or subclassifications. An entity licensed under the classifications or subclassifications in Section 40-11-410(4) and (5) may act shall perform as sole prime contractor if fifty-one percent or more of the work falls under one or more of the licensee's license classifications or subclassifications.
(B) A contractor solely engaged in residential construction must be licensed or registered as a specialty contractor with the South Carolina Residential Builders Commission pursuant to Chapter 59."
SECTION 14. Section 40-11-360 of the 1976 Code, as last amended by Act 91 of 1999, is further amended to read:
"Section 40-11-360. (A) This chapter does not apply to:
(1) an entity which installs fire sprinkler systems if the entity is licensed under Chapter 45 of Title 23, or burglar and fire alarm systems if the entity is licensed under Chapter 79 of Title 40;
(2) the installation of equipment, finished products, materials, or articles of merchandise that are not fabricated into and do not become a permanent fixed part of the structure. unless the work involves skills for which a license is required Work requiring licensure must be installed by a licensed contractor;
(3) construction, alteration, improvement, or repair carried on within the limits of a site, the title to which is in the name United States of America or with respect to which federal law supersedes this chapter;
(4) contractors performing construction work for the South Carolina Department of Transportation pursuant to that department's prequalification requirements with the exception of public/private partnerships performing work pursuant to Section 57-3-200;
(5) an owner of residential property who improves the property or who builds or improves structures or appurtenances on the property if he does the work himself, or with his own employees, or with licensed contractors; provided that if the structure, group of structures, or appurtenances, including the improvements, are intended for the owner's sole occupancy or occupancy by the owner's family use by the owner and are not intended for sale or rent, and provided further, that the general public does not have access to this structure. In an action brought under this chapter, proof of the sale or rent or the offering for sale or rent of the structure by the owner-builder within two years after completion or issuance of a certificate of occupancy is prima facie evidence that the project was undertaken for the purpose of sale or rent and is subject to the penalties provided in this chapter. As used in this item, "sale" or "rent" includes an arrangement by which an owner receives compensation in money, provisions, chattel, or labor from the occupancy, or the transfer of the property or the structures on the property. If the owner hires an entity to engage in any work on the project, properly licensed or registered general, mechanical, residential, or residential specialty contractors must be used when required. All persons directly employed by the owner to perform work on the project are subject to state and federal laws covering occupational safety, family and medical leave, workers' compensation, social security, income tax withholding, and minimum wage requirements. Work performed must comply with all applicable laws, ordinances, building codes, and zoning regulations;
(6) an owner of nonowner-occupied commercial property who improves the property or who builds or improves structures of less than five thousand square feet or other appurtenances on the property, either by himself or with the owner's employees, if all structural and mechanical work is performed by licensed general or mechanical contractors regardless of the cost of construction and if the property is not sold for two years after completion of the improvements. For purposes of this item, "structural" means foundation, pier, load-bearing partition, perimeter wall, exterior walls, except adding a covering to existing exterior walls, internal wall exceeding ten feet in height, roof, floor, and any other work deemed by the board to be structural. "Mechanical" means work described in Section 40-11-410(5);
(7) an owner constructing a wood-framed farm structure with less than five thousand square feet of floor space and not used for human habitation or office facilities;
(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 up to seventy-five thousand dollars or a License Group 4 Mechanical Contractor, as adjusted by an inflation factor reflecting the Department of Labor's Consumer Price Index up to two-hundred thousand dollars.
(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);
(11) a metal or wood frame structure which includes framing, roofing, siding, or flooring less than five thousand feet that is solely used by a property owner as a garage or for storage and which is not used for habitation or office facilities. The public may not have access to this structure, and the owner's employees may have access on a limited basis. Such structure is not exempt from complying with building codes, regulations, ordinances, or statutes adopted at the federal, state, or local level. The structure may not include any plumbing;
(12) the development of golf courses and installation or repair of golf cart paths. However, any work that comes under a regulated contractor license classification requires licensure;
(13) work involving recreational surfaces including, but not limited to, walking paths, tennis courts, basketball courts, baseball fields and football fields;
(14) recreational projects including miniature golf courses.
(15) metal or wood fences and billboards; and
(16) water sprinkler systems used for irrigation.
(B) Work exempt pursuant to subsection (A) (11), (12), (13), (14), (15), or (16) that comes under a regulated contractor license classification must be performed by properly licensed general, mechanical, residential, or residential specialty contractors when required.
(C) The board shall distribute posters to each building permit office in the State requesting that the posters be placed in a conspicuous location to be read by applicants. The posters shall state the following:
'The South Carolina Contractor's Licensing Act requires general and mechanical construction to be performed by licensed contractors and construction managers that are regulated by the South Carolina Contractors' Licensing Board to be properly licensed in accordance with Chapter 11 before bidding or engaging in general or mechanical construction. Contractors licensed or registered with the South Carolina Residential Builders Commission are exempt from the requirements of this notice. Both the owner and the contractor are subject to penalties for violations of the law. Work performed on projects is exempt from this requirement only for the following reasons:
(1) The total cost of construction is less than $5,000.00 $5,000;
(2) The property will be used solely by the owner and his immediate family as a residence for a period of at least two years;
(3) For nonresidential projects, work performed by the owner is limited to nonstructural and nonmechanical portions of the project, or;
(4)(3) The project is a wood-framed farm building less than five thousand square feet used solely for livestock or storage.
All other work must be performed by properly licensed contractors;
(4) An owner of residential property who improves the property or who builds or improves structures or appurtenances on the property if he does the work himself or with his own employees, provided that the structure, group of structures, or appurtenances, including the improvements, are intended for the owner's sole occupancy or use by the owner and are not intended for sale or rent, and provided further, that the general public does not have access to this structure. For purposes of this chapter, proof of sale or rent or offering for sale or rent of the structure by the owner-builder within two years after completion or issuance of a certificate of occupancy is prima facie evidence that the project was undertaken for the purpose of sale or rent and is subject to the penalties provided in this chapter. If the owner hires an entity to engage in any work on the project, properly licensed or registered general, mechanical, or residential specialty contractors must be used when required.
All persons directly employed by the owner to perform work on the project are subject to state and federal laws covering occupational safety, family and medical leave, workers' compensation, social security, income tax withholding, and minimum wage requirements. Work performed must comply with all applicable laws, ordinances, building codes, and zoning regulations.' "
SECTION 15. Section 40-11-390 of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Section 40-11-390. An entity which, as of April 1, 1999, is engaging in general or mechanical construction in the amount of five-thousand dollars or more without a license but in compliance with prior law, and which has been doing so for two years, shall receive a Group 1 license upon application and demonstration of financial status before November 1, 2001."
SECTION 16. Section 40-11-410 of the 1976 Code, as last amended by Act 91 of 1999, is further amended to read:
"Section 40-11-410. The following license classifications are in effect:
(1) 'General Contractors-Building' which includes commercial, industrial, institutional, modular, and all other types of building construction, including residential structures. This license classification includes all work under the subclassifications of Wood Frame Structures-Class II, Interior Renovation, Masonry, Pre-engineered Metal Buildings, General Roofing, and Structural Shapes.
Licensees under this classification may perform ancillary work, including grading, associated with the building or structure which the licensee has been engaged to construct. However, if a project includes work performed under a Mechanical Contractor subclassification or any of these license subclassifications, the licensee must have a license for this work or use a contractor licensed in the appropriate license classification or subclassification to perform the work: Swimming Pools, Bridges, Boring and Tunneling, Water and Sewer Lines, Pipe Lines, Railroad Lines, Specialty Roofing, Marine, Water and Sewer Plants, and Asphalt Paving work under these subclassifications:
(a) 'Unlimited building contractor' which includes commercial, industrial, institutional, modular, and all other types of building construction, including residential structures. This license classification includes all work under the subclassifications of Concrete Paving, Wood Frame Structures, Nonstructural, Masonry, Concrete, Structural Framing, Pre-engineered Metal Buildings, General Roofing, and Structural Shapes. Licensees under this classification may perform ancillary work, including grading, associated with the building or structure which the licensee has been engaged to construct. However, if a project includes work that must be performed under a Mechanical Contractor subclassification or any of the following license subclassifications, the licensee must have a license for this work or use a contractor licensed in the appropriate license classification or subclassification to perform the work: Swimming Pools, Bridges, Boring and Tunneling, Water and Sewer Lines, Pipe Lines, Railroad Lines, Specialty Roofing, Marine Water and Sewer Plants, and Asphalt Paving.
(b) 'Limited building contractor' which includes commercial, industrial, institutional, modular, and all other types of building construction, including residential structures. This license classification includes all work under the subclassifications of Concrete Paving, Wood Frame Structures, Non-Structural, Masonry, Concrete, Structural Framing, Pre-engineered Metal Buildings, General Roofing, and Structural Shapes. Licensees under this classification may perform ancillary work, including grading, associated with the building or structure which the licensee has been engaged to construct. However, if a project includes work performed under a mechanical contractor subclassification or any of the following license subclassifications, the licensee must have a license for this work or use a contractor licensed in the appropriate license classification or subclassification to perform the work: Swimming Pools, Bridges, Boring and Tunneling, Water and Sewer Lines, Pipe Lines, Railroad Lines, Specialty Roofing, Marine, Water and Sewer Plants, and Asphalt Paving. Under this classification, licensees are limited to the construction of new structures that are no more than three stories in height as described in Section 40-11-230(D).
(2) 'General Contractors-Highway' which includes work under these subclassifications:
(a) 'Bridges' which include bridge construction and repairs, railroad trestles and overpasses, and work under the subclassifications of Boring and Tunneling, Concrete, Marine, and Railroad Lines. A license is not required to paint bridges.
(b) 'Concrete Paving' which includes the construction, rehabilitation and repair of concrete streets, roads, highways, driveways, parking lots, airport runways and aprons, and concrete work incidental thereto including, but not limited to, sidewalks, curbs, medians, storm sewers, and barrier walls. This subclassification also includes work under the subclassification of Grading and Highway Incidental.
(c) 'Asphalt Paving' which includes asphalt paving, repairs and rehabilitation of streets, roads, highways, parking lots, airport runways and aprons, and concrete including, but not limited to, curbs, gutters, and concrete or asphalt paving of storm sewers, and includes paving with sealers, geotextile fabrics, slurry seals, and surface treatments incidental thereto. This subclassification also includes work under the subclassification subclassifications of Grading and Highway Incidental.
(d) 'Grading' which includes the soil preparation and rehabilitation of streets, roads, highways, railroad beds, building sites, parking lots, and storm sewers. This subclassification also includes work under the subclassification of Highway Incidental.
(e) 'Highway Incidental' which includes highway highways or roads, sidewalks, driveways, and parking lots work for grooving, milling, rehabilitating, and installing guardrails, joint seals, slurry or surface seals, surface treatments, geotextile fabrics, gutters, highway signs, pavement marking, and painting.
(f) An entity that qualifies for all of the highway classifications must be issued a classification designated as highway to cover all of the highway subclassifications.
(3) 'General Contractors-Public Utility' which includes work under these subclassifications:
(a) 'Pipe Lines' which includes the construction, installation, alteration, maintenance, and repair of systems for the transmission or distribution of petroleum fuels, petroleum distillates, natural gas, chemicals, and slurries through pipeline from one station to another including all excavating, trenching, backfilling and installation of booster stations and equipment and installation and replacement of tanks connected to the system. This subclassification does not include the piping and tanks for the dispensing of any petroleum product at retail.
(b) 'Water and Sewer Plants' which includes all classifications and subclassifications necessary for the construction of water treatment and wastewater treatment facilities. However, if a project includes work to be performed under any of these license subclassifications, the licensee must either have a license to perform this work or use a contractor licensed in the appropriate license classification or subclassification to perform the work: Bridges, Railroad Lines, Specialty Roofing, and Mechanical work.
(c) 'Water and Sewer Lines' which includes construction work on water mains, water service lines, water storage tanks, sewer mains, sewer lines, lift stations, pumping stations and appurtenances to water storage tanks, lift stations, pumping stations, pavement patching, backfill, and erosion control as a part of construction, and which includes connection at the building of all lines to the appropriate lines contained in commercial structures, installation and repair of a project involving manholes, the laying of pipe for storm drains and sewer mains, all necessary connections, and excavation and backfilling, and concrete work incidental thereto.
Contractors in this license subclassification in license groups three, four, and five may install fire protection sprinkler system underground mains to a flanged outlet 1'-0" above the finished floor in compliance with National Fire Protection Association Standard 24. However, shop drawings must be submitted and approved by the State Fire Marshal with a copy of the approved drawings going to the licensed fire sprinkler contractor. Flushing and testing certificates must be delivered to the authority having jurisdiction and the performing licensed fire sprinkler contractor performing work for the fire sprinkler installation. General contractors in this license subclassification may not engage in water and sewer line work from the right-of-way to a residential structure unless the entity is a subcontractor to a licensee holding a plumbing subclassification.
(d) 'Public Electrical Utility' which includes the installation, replacement, alteration, and repair of transmission lines on or off public rights-of-way, including erection of poles, guying systems, tower line erection, street lighting, and outside lighting of all voltages and all underground systems, including ducts for signal communication and similar installations, transformers, circuit breakers, capacitors, primary metering devices, and other related equipment not used in connection with this subclassification. A contract that contains electrical work above fifty volts must be performed by a licensed public utility-electrical or mechanical-electrical contractor. This subclassifcation does not cover athletic field lighting, stadium lighting, or lighting which is not on public easements or rights-of-way.
(4) 'General Contractors-Specialty' which includes work under these subclassifications:
(a) 'Boring and Tunneling' which includes the construction of underground or underwater passageways with diameters in excess of ninety-six inches or lengths in excess of three hundred fifty feet by digging or boring through and under the earth's surface, including the bracing and compacting of passageways to make them safe for the purpose intended. This subclassification includes the preparation of ground surfaces at points of ingress and egress. Underground structures less than ninety-six inches in diameter or less than three hundred fifty feet in length are considered normal excavation.
(b) 'Concrete' which includes all work in connection with concrete forming and placing; assembling of forms, molds, slipforms and pans; centering, trenching, excavating, backfill, and grading in connection with concrete construction; construction of sidewalks, driveways, curbs, medians, and barrier walls; and installing of embedded items essential to or comprising an integral part of concrete or concrete construction including reinforcing elements and accessories including, but not limited to, concrete chimneys, floors, piers, and foundations when using concrete rebar and other materials common to the concrete industry. This subclassification does not include the General Contractor-Highway- Bridge license subclassification General Contractors-Highway classification or other highway subclassifications or the construction of streets, roads, parking lots, bridges, and highways.
(c) 'Interior Non-structural Renovation' which includes, but is not limited to, installing, remodeling, renovations renovating, and finishes finishing of a building for acoustical ceiling systems and panels, load-bearing and nonload-bearing counters, drywall partitions, lathing and plastering, flooring (excluding carpet) and finishing, interior recreational surfaces floating hardwood floors, window and door installation, and installation of fixtures, cabinets, and millwork; and which also includes, fireproofing, glass, glazing, insulation, lining, painting, partitions, sandblasting, interior wall covering, and waterproofing. This subclassification also includes exterior remodeling, installation, renovation, and repair of all types of exterior siding or covering. This subclassification does not include alterations to load-bearing portions of a structure and work within the masonry classification. An entity is not required to be licensed under this subclassification if its participation in a construction project is limited to only one of the following types of work: carpet or any type of floor covering or finishing, window and door installation, interior and exterior painting, plastering, drywall installation, acoustical ceiling systems and panels, insulation, plastering interior wall covering, counters, millwork, and partitions.
(d) 'Marine' which includes all water activities to construct seawalls, bulkheads, docks, piers, wharves, and other water structures including, but not limited to, pile driving, boat slips, and boardwalks. Licensees under this classification may perform ancillary work including fill and grading. This license subclassification does not include structures within the scope of the General Contractor-Building classification.
(e) 'Masonry' which includes the installation, replacement, alteration, or repair with or without the use of mortar or adhesives, of brick, concrete block, gypsum partition tile, pumice block, fire clay products, rough cut and dressed stone, marble panels or slate units, structural glazed tile or block, glass brick or block, solar screen tile or block, or other units and products common to the masonry industry.
(f) 'Pre-engineered Metal Buildings' which includes the construction of pre-engineered metal buildings not exceeding forty feet in width with no single structural span exceeding forty feet in length, and consisting of no more than a concrete floor slab, metal frame, metal roof, metal sidewalls, and building insulation.
(g) 'Railroad Lines' which includes the installation and repair of railroad lines, including setting ties, tie plates, rails, rail connectors, frogs, switch plates, switches, and signal markers. This subclassification does not include grading, trestles, or overpasses.
(h) 'General Roofing' which includes the installation and repair of roofs and roof decking on commercial, industrial, and institutional structures requiring materials that form a water-tight and weather-resistant surface. This license subclassification is limited to shingles, clay and concrete tile, slate, wood-shake roofing, metal roofing, and asphalt-rolled roofing.
(i) 'Specialty Roofing' which includes the installation and repair of roofs and roof decking on commercial, industrial, and institutional structures requiring materials that form a water-tight and weather-resistant surface. This license subclassification includes all work under the General Roofing license subclassification and other types of roofing not specifically included in the general roofing license subclassification.
(j) 'Structural Framing' which includes the installation, repair, or alteration of metal or composite structural members for buildings or structures, including riveting, and welding, and rigging. This subclassification also includes work under the installation of telecommunication towers, including concrete foundations for the tower, and the subclassification of Structural Shapes.
(k) 'Structural Shapes' which includes the installation, repair, or alteration of aluminum, metal or composite shapes, tubing, pipes and bars, including minor field fabrication which includes welding, bolting, or riveting of metal or composite members for greenhouses, equipment, or bleacher seating as may be necessary.
(l) 'Swimming Pools' which includes the construction, service, and repair of all commercial and institutional swimming pools and spas, including concrete, gunite, plastic, vinyl-lined, and fiberglass pools and spas; pool decks, walkways, tiling, and coping; and the installation of all equipment, including pumps, filters, and chemical feeders, water and gas service lines from the point of service to the pool equipment, wiring from the pool equipment to the first readily accessible disconnect, pool piping, fittings, backflow prevention devices, waste lines, and other integral parts of a swimming pool or spa.
(m) 'Wood Frame Structures' which include framing, roofing, siding, or flooring for wood-framed structures in excess of five thousand feet used for housing livestock, storage, or processing, when such structures are not used for habitation or office facilities.
(n) 'Public Electrical Utility' which includes the installation, replacement, alteration, and repair of transmission lines on or off public rights-of-way, including erection of poles, guying systems, tower line erection, street lighting, and outside lighting of all voltages and all underground systems, including ducts for signal communication and similar installations, transformers, circuit breakers, capacitors, primary metering devices, and other related equipment not used in connection with this subclassification. A contract that contains electrical work above fifty volts must be performed by a licensed public utility-electrical or mechanical-electrical contractor. This subclassification does not cover athletic field lighting, stadium lighting, or lighting which is not on public easements or rights-of-way.
(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. Masonry contractors may perform masonry, clay, or related work for a boiler, and process piping contractors may install piping for a boiler.
(5) 'Mechanical Contractors' which includes commercial and residential work under these subclassifications:
(a) 'Air Conditioning' which includes the installation, replacement, alteration, and repair of air conditioning equipment and systems which consist of a number of components necessary to produce conditioned air for environmental heating or cooling, or both, within buildings which may include ventilation systems, including duct work, air filtering devices, water treatment devices, pneumatic or electrical controls, or control piping; thermal and acoustical insulation, vibration isolation materials and devices, liquid fuel piping and tanks, water and gas piping from service and heating circuits and air handling systems, including gas-fired furnaces and space heaters; and factory-assembled single package units and split type direct expansion equipment, including heat pumps. Hot water or steam heating systems or components are not included under this classification. The insulation of any necessary gas lines if any of this equipment is gas fired is included in this classification. This classification covers work listed under the refrigeration classification and package equipment.
(b) 'Heating' which includes installation, replacement, alteration, and repair of heating equipment and systems in buildings which require the use of high or low pressure steam vapor or hot water including all piping, ducts, and mechanical equipment within, adjacent to, or connected with a building and the installation of necessary gas lines if any of this equipment is gas-fired. This classification does not include process piping. Contractors licensed under this classification before April 1, 1999, may engage in work within the boiler classification and must have the classification added to their mechanical license before they may engage in this work.
(c) 'Packaged Equipment' (air conditioning-heating packaged equipment limited to twenty-five tons cooling and five hundred thousand BTU/HR heating per unit) which includes the installation, replacement, alteration, or repair of air conditioning equipment and systems which consist of a number of components necessary to produce conditioned air for environmental heating or cooling, or both, within buildings, including types of heating systems and any size package equipment; and the installation, alteration, and repair of ventilation systems, including duct work, air filtering devices, water treatment devices, pneumatic or electrical controls, or control piping; thermal and acoustical insulation, vibration isolation materials and devices, liquid fuel piping and tanks, water and gas piping from service and heating circuits and air handling systems, including gas-fired furnaces and space heaters; and factory-assembled single package units and split type direct expansion equipment, including heat pumps. This subclassification does not include installing, replacing, altering, or repairing hot water or steam heating systems or components, ground water or ground loop heat pump equipment and systems, water or brine chillers, and refrigeration systems or components.
(d) 'Electrical' which includes the installation, alteration, or repair of wiring-related electrical material and equipment used in the generating, transmitting, or utilization of electrical energy less than six hundred volts, including all overhead electrical wiring on public rights-of-way for signs and street decorations and all underground electrical distribution systems of less than six hundred volts serving private properties. This subclassification also includes, but is not limited to, installing, altering, and repairing, panels, controls, conductors, conduits, cables, devices, plates, electric ceilings, control wiring; and electric heating, lighting fixtures, lamps, general outside lighting, underground and overhead feeder distribution systems for services, and related components or work necessary to provide a complete electrical system and installing window or through-the-wall air conditioning units not to exceed three HP or three tons where no piping is necessary. Under this subclassification, general outside lighting is limited solely to within property lines and not on public easements or rights-of-way. A contract that contains electrical work above fifty volts must be performed by a contractor licensed under this subclassification or a licensed public electrical utility contractor. This license subclassification includes installing, altering, and repairing all lighting on private property, athletic fields, stadiums, parking lots, and the design, installation, and servicing of fire alarm systems.
(e) 'Lightning Protection Systems' which includes installation, replacement, alteration, or repair of necessary lightning protection conduction, cables, rods, points, anchors, fastening devices, labels, ground clamps, braces, and all related component parts necessary for a complete lightning protection system.
(f) 'Plumbing' which includes the installation, replacement, alteration, and repair of all plumbing including solar water heating when performed solely within property lines and not on public easements or rights-of-way except to make connections to water meters or sewer taps as allowed by the utility owner; and the installation, alteration, and repair of all piping, fixtures, and appliances related to water supply, including pressure vessels and tanks, and excluding municipal or related water supply systems; venting and sanitary drainage systems for all fluid and semi-fluid and organic wastes; roof leaders; water-conditioning equipment; piping and equipment for swimming pools; and installation of a system of pipes, fittings, fixtures, drains, and all necessary component parts upon the premises or in a building to supply water to buildings and to convey sewage or other waste products from buildings. If this equipment is gas-fired, the necessary gas lines may be installed under this subclassification used in connection with this subclassification. Plumbing contractors in license groups three, four, and five are not required to be licensed under Chapter 45, Title 23 to install standpipe systems, including water hose connections, water hose cabinets, and related branch lines if the water hoses do not supply water to automatic fire protection sprinklers.
(g) 'Pressure and Process Piping' which includes the installation, maintenance, repair, alteration, or extension of a system of piping, tubing, vessels, containers, pumps, apparatus, and appurtenances in connection with pressure piping used for circulation, transporting, holding, or processing of gas, vapor, fluid, liquid, semi-liquid, or any combination of these. However, boilers, boiler piping, piping used to convey potable water, sanitary sewage, liquefied petroleum, manufactured or natural gas or refrigeration, air conditioning and comfort heating piping are not included in this subclassification.
(h) 'Refrigeration' which includes the installation, replacement, alteration, and repair of refrigeration equipment and systems used for processing, storage, and display of food products and other perishable commodities and commercial, industrial, and manufacturing processes requiring refrigeration, excluding comfort air conditioning. This subclassification also includes work on systems including related equipment for temperature, safety, and capacity controls, thermal insulation, vibration isolation materials and devices, water treatment devices, construction and installation of walk-in refrigeration boxes, liquid fuel piping and tanks, water and gas piping from equipment to service connection, and testing and balancing of refrigeration equipment and systems. An entity licensed under the air conditioning subclassification may also do work under this subclassification.
(6) An individual that has a residential builder's license or specialty registration with two years experience as a licensed residential builder or specialty contractor and passes the required examinations and meets the requirements for licensure under this chapter may apply for a mechanical contractor's license and is restricted to the mechanical contractor group one license. After two years as a group one contractor, the individual may apply for a higher group limitation."
SECTION 17. Section 40-11-420 of the 1976 Code, as added by Act 440 of 1998, is amended to read:
"Section 40-11-420. (A) Building permits, when required by law, must be obtained by the sole prime contractor in the name appearing on that entity's contractor's license.
(B) When there is more than one prime contractor working with a construction manager on a project, the building permit must be obtained by the construction manager in the name appearing on that entity's professional license, and the construction manager must list on the building permit application the names and license numbers of all known licensed contractors performing work on the project. The construction manager must also be identified as such on the permit application by name, license number, and type of license he holds. All contractors contracting directly with the owner as a prime contractor must be properly licensed regardless of the cost of the work to be performed.
(C) If there is more than one prime contractor and no construction manager or if the owner is performing work pursuant to Section 40-11-360(A)(5),(6), or (7), the owner must obtain the building permit and must list on the building permit application the name and license number of all licensed contractors performing work on the project. All contractors contracting directly with the owner as a prime contractor must be properly licensed regardless of the cost of the work to be performed."
SECTION 18. This act takes effect upon approval by the Governor.
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