Current Status Introducing Body:House Bill Number:3742 Ratification Number:572 Act Number:463 Primary Sponsor:McLeod Type of Legislation:GB Subject:Residential Builders Commission Date Bill Passed both Bodies:19940601 Computer Document Number:BBM/10385JM.93 Governor's Action:S Date of Governor's Action:19940629 Introduced Date:19930318 Date of Last Amendment:19940601 Last History Body:------ Last History Date:19940629 Last History Type:Act No. 463 Scope of Legislation:Statewide All Sponsors:McLeod Baxley Simrill Scott Rudnick Holt J. Brown Moody-Lawrence Byrd Shissias Davenport Cooper Littlejohn Stille Cato Vaughn D. Wilder J. Bailey Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
---- ------ ------------ ------------------------------ --- ------------
3742 ------ 19940629 Act No. 463
3742 ------ 19940629 Signed by Governor
3742 ------ 19940602 Ratified R 572
3742 Senate 19940601 Ordered enrolled for
ratification
3742 House 19940601 Free Conference Committee 99
Report received, adopted
3742 House 19940601 Free Conference Powers 99 G. Bailey
granted, appointed Reps. to Vaughn
Committee of Free Conference McLeod
3742 House 19940601 Free conference powers
rejected
3742 Senate 19940531 Free Conference Committee 99
Report received, adopted
3742 Senate 19940531 Free Conference powers 99 McConnell
granted, appointed Senators Leatherman
to Committee of Free Ford
Conference
3742 Senate 19940504 Conference powers granted, 98 McConnell
appointed Senators to Leatherman
Committee of Conference Ford
3742 House 19940503 Conference powers granted, 98 G. Bailey
appointed Reps. to Committee Vaughn
of Conference McLeod
3742 House 19940503 Insists upon amendment
3742 Senate 19940428 Non-concurrence in House
amendment
3742 House 19940421 Senate amendments amended,
returned to Senate
3742 House 19940406 Debate adjourned on Senate
amendments until Thursday,
April 7, 1994
3742 Senate 19940331 Read third time, returned to
House with amendment
3742 Senate 19940330 Amended, read second time,
ordered to third reading with
notice of general amendments
3742 Senate 19940329 Committee Report: Favorable 12
with amendment
3742 Senate 19930428 Introduced, read first time, 12
referred to Committee
3742 House 19930427 Read third time, sent to
Senate
3742 House 19930422 Debate adjourned until
Tuesday, April 27, 1993
3742 House 19930421 Amended, read second time
3742 House 19930414 Committee Report: Favorable 26
with amendment
3742 House 19930318 Introduced, read first time, 26
referred to Committee
View additional legislative information at the LPITS web site.
(A463, R572, H3742)
AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-59-85 SO AS TO PROVIDE THAT A PERSON MAKING AN INITIAL APPLICATION TO THE RESIDENTIAL BUILDERS COMMISSION FOR LICENSURE AS A RESIDENTIAL BUILDER OR REGISTRATION AS A RESIDENTIAL SPECIALTY CONTRACTOR SHALL FIRST SUBMIT TO A CREDIT REPORT, PROVIDE FOR RELATED MATTERS, PROVIDE THAT THE APPLICATION AND RENEWAL FORMS FOR ALL LICENSES AND REGISTRATIONS ISSUED BY THE COMMISSION SHALL REQUIRE THE APPLICANT TO LIST ANY OUTSTANDING JUDGMENTS ISSUED AGAINST HIM FOR THE PAST FIVE YEARS, AND PROVIDE THAT "MISCONDUCT" AS USED IN SECTION 40-59-90 INCLUDES A PATTERN OF REPEATED FAILURE BY A RESIDENTIAL BUILDER OR RESIDENTIAL SPECIALTY CONTRACTOR TO PAY HIS LABOR ON MATERIAL BILLS; TO DESIGNATE SECTIONS 40-59-10 THROUGH 40-59-160 AS ARTICLE 1 OF CHAPTER 59, TITLE 40, AND ENTITLED "RESIDENTIAL HOME BUILDERS GENERALLY"; TO AMEND THE 1976 CODE BY ADDING ARTICLE 3 TO CHAPTER 59, TITLE 40 SO AS TO ENACT PROVISIONS FOR THE LICENSING OF HOME INSPECTORS, INCLUDING PROVISIONS FOR, AMONG OTHER THINGS, EXEMPTIONS AND THE IMPOSITION OF CIVIL PENALTIES; AND TO AMEND THE 1976 CODE BY ADDING CHAPTER 26 TO TITLE 40 SO AS TO ENACT PROVISIONS GOVERNING COMMERCIAL INSPECTORS.
Be it enacted by the General Assembly of the State of South Carolina:
Credit reports for residential builders, residential specialty contracts, etc.
SECTION 1. The 1976 Code is amended by adding:
"Section 40-59-85. (A) Any person making an initial application to the commission for licensure as a residential builder or registration as a residential specialty contractor shall first submit to a credit report. In addition to the information provided by the credit report, the commission may determine from the written application, the personal references provided by the applicant, written communications or complaints to the commission, and from any other reliable, documented sources whether an applicant for licensure as a residential builder or an applicant for registration as a residential specialty contractor has a reputation for the prompt payment of his labor or material bills and for the timely completion of other contracts into which the applicant may have entered. (B) The application and renewal forms for all licenses and registrations issued by the commission shall require the applicant to list any outstanding judgments issued against him for the past five years.
(C) The term `misconduct' as used in Section 40-59-90 includes a pattern of repeated failure by a residential builder or residential specialty contractor to pay his labor or material bills."
Code sections designated as article, etc.
SECTION 2. Sections 40-59-10 through 40-59-160 of the 1976 Code are designated as Article 1 of Chapter 59, Title 40, and entitled "Residential Home Builders Generally".
Licensing of home inspectors
SECTION 3. Chapter 59 of Title 40 of the 1976 Code is amended by adding:
Section 40-59-200. When used in this article:
(1) `Administrator' means the executive director for the South Carolina Residential Builders Commission provided for under Section 40-59-50.
(2) `Commission' means the South Carolina Residential Builders Commission.
(3) `Director' means the Director of the Department of Labor, Licensing, and Regulation.
(4) `Home Inspection' means the rendering of a written or oral report in exchange for compensation of any sort, regarding the condition of the construction or improvements to a residence, including, but not limited to, structural problems or conditions, damage, safety problems or deterioration, equipment, and systems that are visible and readily accessible. Home inspection does not include a contract or proposal for repair, renovation, or remodeling of the improvements to a residence. The parties to a home inspection may limit or expand the scope of the inspection by agreement.
(5) `Home inspector' means a natural person who, for compensation of any sort, engages in the business of home inspection.
(6) `Residence' means a structure, including, but not limited to, condominiums and town houses, intended to be used or in fact used primarily for living quarters which is not over three floors in height and which does not have more than sixteen units.
Section 40-59-210. The administrator is authorized to administer the provisions of this article. The administrator shall keep a register of all applicants for a license, including the date of application, the name, qualifications, place of business, and place of residence of the applicant, and the status of the license application. The administrator also shall maintain a roster listing the name, place of business, residence, and business telephone number of each licensed home inspector. A copy of the roster must be available to anyone upon a written request to the commission. The commission may charge a reasonable fee for complying with a request for a roster. The amount of the fee must be established by regulation of the commission.
Section 40-59-220. (A) No person may engage in or transact any home inspection business, or hold himself out to the public as a home inspector, or offer to engage in or transact any home inspection business in this State unless the person is licensed by the commission.
(B) A person already engaged in the business of performing home inspections on the date this article becomes effective is allowed ninety days from such effective date to comply with the provisions of this article for the purpose of qualifying to perform home inspections.
(C) No license shall be issued under the provisions of this article to a partnership, association, corporation, firm, or group. However, nothing in this article precludes a licensed home inspector from performing home inspections for or on behalf of a partnership, association, corporation, firm, or group or from entering into contracts or enforcing contracts as a partnership, association, corporation, firm, or group.
Section 40-59-230. The provisions of this article do not apply to:
(A) a person employed by the State of South Carolina or any political subdivision of the State as a code enforcement official when acting within the scope of that employment;
(B) a person inspecting a home exclusively for the use of a bank, savings and loan association, or credit union, unless otherwise required by federal law or regulation;
(C) a person duly licensed, registered, or certified pursuant to Chapter 3 of this title or a person duly licensed as a general contractor pursuant to Chapter 11 of this title or a person duly licensed pursuant to Article 1 of Chapter 59 of this title or a person duly licensed or registered as a professional engineer pursuant to Chapter 22 of this title. Notwithstanding the exemption from licensure under this article, the provisions of this article relating to the conduct of the person in the performance of a home inspection shall apply to such person. Any violation of this article is considered a violation against the person's license and subjects the person to disciplinary action by the licensing board under which the person is duly licensed.
Section 40-59-240. (A) A person desiring to be licensed as a home inspector shall make a written application to the commission on forms as the commission prescribes. Upon the submission of a completed application form and the payment of the fee required by the commission, the applicant is entitled to take the home inspector licensing examination as prescribed by the commission. Upon successful completion of the examination, the commission shall issue the applicant a license authorizing the applicant to engage in the business of home inspection in this State. The issuance of a license is evidence that the person named therein is entitled to all the rights and privileges of a licensed home inspector while the license remains active.
(B) The commission shall promulgate regulations to establish the minimum qualifications and uniform criteria for the granting of a home inspector license.
Section 40-59-250. (A) The licensee shall display the license in the manner prescribed by the commission.
(B) The licensee shall inform the commission of any change in his business or home address.
(C) The license must be renewed before July first of each year for a period of one year upon payment of the renewal fee and upon compliance with the provisions of this article. If the home inspector has not complied with any provisions of this article during the year, the licensee shall make a new application as in the case of the issuance of an original license.
(D) The commission may provide for the late renewal of a license upon payment of a late fee in an amount established by regulation of the commission.
(E) A licensee who does not intend to engage in the business of home inspection for at least one year may request upon written notice to the commission that his license be placed in inactive status. While in inactive status, the person is not subject to payment of any renewal fees and shall not perform home inspections in this State. When the person desires to resume the performance of home inspections, he shall file an application for license renewal, pay the renewal fee, and demonstrate continuing competence as defined by regulation of the commission. If a license has been in inactive status for more than three years, the person is required to make a new application as in the case of the issuance of an original license and is required to take and successfully complete the examination.
Section 40-59-260. (A) The commission may deny, refuse to renew, or temporarily suspend or revoke a license, or issue a civil penalty under this section, if the licensee or applicant for licensure engages in any of the following conduct:
(1) making a false or misleading statement in that portion of a written report that deals with professional qualification or in any testimony concerning professional qualifications;
(2) any act or omission involving dishonesty, fraud, or misrepresentation with the intent to substantially benefit a home inspector or other person or with the intent to substantially injure another person;
(3) any act of fraud, misrepresentation, or deceit in the making of a home inspection;
(4) payment of a finder's fee or a referral fee to any person in connection with an inspection of a residence;
(5) failure or refusal without good cause to exercise reasonable diligence in developing a home inspection report, preparing a report, or communicating a report;
(6) accepting a home inspection assignment when the employment itself is contingent upon the home inspector reporting a predetermined estimate, analysis, or opinion or when the fee to be paid is contingent upon the opinion, the conclusions, analysis, or report reached or upon the consequences resulting from such assignment;
(7) the performing of any work or improvement to a residence upon which the home inspector performed a home inspection within the previous twelve months;
(8) employment of fraud, deceit, or misrepresentation in obtaining or attempting to obtain a license, or renewal of it;
(9) committing an act or acts of malpractice, gross negligence, or incompetence in the performance of home inspections;
(10) practicing as a licensed home inspector without a current license;
(11) engaging in conduct that could result in harm or injury to the public;
(12) engaging in any act or practice violative of any of the provisions of this article or any regulation promulgated by the commission under this article, or aiding, abetting, or assisting a person in such violation.
(B) The commission may impose a civil penalty for violations of any provision of this article, or the regulations promulgated by the board, as follows: for a first violation, a penalty in an amount not to exceed one hundred dollars; for a second violation, a penalty in an amount not to exceed two hundred dollars; and for a third and any subsequent violation, a penalty in an amount not to exceed one thousand dollars. Any civil penalties collected by the commission must be remitted to the State Treasurer for deposit by him in the State's general fund.
(C) The denial, refusal to renew, or temporary suspension or revocation of a license, or the issuance of a civil penalty under this section, may be ordered by a decision of a majority of the commission after a hearing held in accordance with Article 3, Chapter 23, of Title 1, the Administrative Procedures Act. A decision of the commission to deny, refuse to renew, temporarily suspend a license, revoke a license, or impose a civil penalty is subject to review by an administrative law judge as provided under Article 5, Chapter 23, of Title 1.
(D) An application may be made to the commission for reinstatement of a revoked license if the revocation has been in effect for at least one year. The license may be granted upon an affirmative vote by a majority of the commission.
Section 40-59-265. A home inspector is prohibited from engaging in real estate appraisal activity unless the inspector meets the requirements of Chapter 60 of this title. Further, a home inspector is prohibited from engaging in any real estate activity regulated under Chapter 57 of this title unless the inspector meets the requirements of that chapter.
Section 40-59-270. The administrator is authorized to use the powers granted to him pursuant to this chapter to enforce the provisions of this article. A home inspector who is not otherwise exempt from this article who undertakes or attempts to undertake the business of home inspection without first obtaining a valid license or who knowingly presents to, or files with, the commission false information for the purpose of obtaining a license is guilty of a misdemeanor and for the first offense, upon conviction, must be fined not more than one hundred dollars or imprisoned for not more than thirty days, or both. For a second offense, the person, upon conviction, must be fined not more than two hundred dollars or imprisoned for not more than ninety days, or both. For a third and subsequent offense, upon conviction, the person must be fined not more than one thousand dollars or imprisoned not more than one hundred eighty days, or both.
A home inspector who does not have a license as required by this article may not bring any action either at law or in equity to enforce the provisions of any contract for home inspection which he entered into in violation of this article.
Whenever it appears to the commission that any home inspector has violated, or is about to violate, the provisions of this article, the commission may in its own name petition an administrative law judge as provided under Article 5 of Chapter 23 of Title 1 to issue a temporary restraining order enjoining the violation of this article, pending a full hearing to determine whether or not the injunction must be made permanent.
Section 40-59-280. The commission is authorized to promulgate regulations to administer the provisions of this article and to establish fees reasonably necessary to cover the costs of administering this article.
Section 40-59-290. When an inspection report includes a deficiency that is alleged to be a building codes violation, the inspector is responsible for determining the construction dates and building codes in effect at the time of construction and must conduct the inspection using the building codes in effect at the time of construction."
Commercial inspectors
SECTION 4. Title 40 of the 1976 Code is amended by adding:
Section 40-26-10. When used in this chapter:
(1) `Board' means the State Licensing Board for Contractors (excluding mechanical contractors), the State Board of Architectural Examiners, or the State Board of Registration for Professional Engineers (excluding land surveyors), as is applicable to the person performing a commercial inspection.
(2) `Commercial inspection' means the rendering of a written or oral report, for compensation of any sort, as to the condition of the construction or improvements to a commercial structure, including, but not limited to, structural problems and conditions, visible damage, safety problems or deterioration, and equipment and systems that are visible and readily accessible. Commercial inspection does not include a contract or proposal for design, repair, renovation, or remodeling of the improvements to a commercial structure. The parties to an agreement for a commercial inspection may limit or expand the scope of the inspection by agreement.
(3) `Commercial inspector' means a natural person licensed, registered, or certified pursuant to Chapter 3 of this title or a natural person licensed as a general contractor pursuant to Chapter 11 of this title or a natural person licensed or registered as a professional engineer pursuant to Chapter 22 of this title, and who, for compensation of any sort, performs a commercial inspection.
(4) `Commercial structure' means a building, highway, sewer, improvement, reimprovement, or structure, or part thereof, which is not a residence as defined in Article 3 of Chapter 59 of Title 40.
Section 40-26-20. (A) No person may engage in or transact any commercial inspection business, or hold himself out to the public as a commercial inspector, or offer to engage in or transact any commercial inspection business in this State, unless the person is licensed, registered, or certified pursuant to Chapter 3 of this title or is licensed as a general contractor pursuant to Chapter 11 of this title or is licensed or registered as a professional engineer pursuant to Chapter 22 of this title.
(B) A person engaged in the business of performing commercial inspections on the date this chapter becomes effective who is not, on that date, qualified under the terms of this chapter to perform commercial inspections is allowed ninety days from such effective date to comply with the provisions of this chapter for the purpose of qualifying to perform commercial inspections.
(C) No license shall be issued under the provisions of this chapter to a partnership, association, corporation, firm, or group. However, nothing in this chapter precludes a person licensed pursuant to Chapter 3 of this title or licensed as a general contractor pursuant to Chapter 11 of this title or licensed or registered as a professional engineer pursuant to Chapter 22 of this title from performing commercial inspections for or on behalf of a partnership, association, corporation, firm, or group or from entering into contracts or enforcing contracts as a partnership, association, corporation, firm, or group.
Section 40-26-30. The provisions of this chapter do not apply to:
(A) a person employed by the State of South Carolina or any political subdivision of the State as a code enforcement official when acting within the scope of that employment;
(B) a person inspecting a commercial structure exclusively for the use of a bank, savings and loan association, or credit union, unless otherwise required by federal law or regulation.
Section 40-26-40. A violation of this chapter is considered a violation against the person's license, registration, or certification and subjects the person to disciplinary action by the board under which the person is licensed, registered, or certified.
Section 40-26-50. (A) Any person who is licensed, registered, or certified pursuant to Chapter 3 of this title or who is licensed as a general contractor pursuant to Chapter 11 of this title or who is licensed or registered as a professional engineer pursuant to Chapter 22 of this title and who performs a commercial inspection is prohibited from engaging in any of the following conduct:
(1) making a false or misleading statement in that portion of a written report that deals with professional qualifications or in any testimony concerning professional qualifications;
(2) any act or omission involving dishonesty, fraud, or misrepresentation with the intent to substantially benefit a commercial inspector or other person or with the intent to substantially injure another person;
(3) any act of fraud, misrepresentation, or deceit in the making of a commercial inspection;
(4) payment of a finder's fee or a referral fee to any person in connection with an inspection of a commercial structure;
(5) failure or refusal without good cause to exercise reasonable diligence in developing a commercial inspection report, preparing a report, or communicating a report;
(6) accepting a commercial inspection assignment when the employment itself is contingent upon the commercial inspector reporting a predetermined estimate, analysis, or opinion or when the fee to be paid is contingent upon the opinion, the conclusions, analysis, or report reached or upon the consequences resulting from such assignment;
(7) the performing of any improvement to a commercial structure upon which the commercial inspector performed a commercial inspection within the previous twelve months;
(8) committing an act, or acts, of malpractice, gross negligence, or incompetence in the performance of commercial inspections; (9) practicing as a commercial inspector without a current license, registration, or certification issued pursuant to Chapter 3 of this title or issued pursuant to Chapter 11 of this title for a general contractor or issued pursuant to Chapter 22 of this title for a professional engineer;
(10) engaging in conduct that could result in harm or injury to the public.
(B) A commercial inspector who is not duly licensed, certified, or registered as required by this chapter may not bring any action either at law or in equity to enforce the provisions of any contract for a commercial inspection which he entered into in violation of this chapter.
Section 40-26-60. When an inspection report includes a deficiency that is alleged to be a building codes violation, the inspector is responsible for determining the construction dates and building codes in effect at the time of construction and must conduct the inspection using the building codes in effect at the time of construction."
Time effective
SECTION 5. Section 1 of this act takes effect upon approval by the Governor. Sections 2, 3, and 4 of this act take effect one hundred eighty days after approval by the Governor.
Approved the 29th day of June, 1994.