Current Status Introducing Body:House Bill Number:4049 Primary Sponsor:G. Bailey Type of Legislation:GB Subject:Real estate inspection companies Residing Body:House Date Tabled:19940526 Computer Document Number:BR1/15468SD.93 Introduced Date:19930414 Last History Body:House Last History Date:19940526 Last History Type:Tabled Scope of Legislation:Statewide All Sponsors:G. Bailey Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
____ ______ ____________ ______________________________ ___ ____________
4049 House 19940526 Tabled
4049 House 19940510 Committee Report: Favorable 26
with amendment
4049 House 19930414 Introduced, read first time, 26
referred to Committee
View additional legislative information at the LPITS web site.
COMMITTEE REPORT
May 10, 1994
H. 4049
S. Printed 5/10/94--H.
Read the first time April 14, 1993.
To whom was referred a Bill (H. 4049), to amend the Code of Laws of South Carolina, 1976, by adding Section 40-59-85 so as to require real estate inspection companies, etc., respectfully
That they have duly and carefully considered the same, and recommend that the same do pass with amendment:
Amend the bill, as and if amended, by striking all after the enacting words and inserting:
/SECTION 1. Title 40 of the 1976 Code is amended by adding:
Section 40-26-10. As used in this chapter:
(1) `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, equipment and systems. Commercial inspection does not include a contract or proposal for 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.
(2) `Commercial inspector' means a natural person who, for compensation of any sort, engages in the business of commercial inspection.
(3) `Commercial structure' means a building, highway, sewer, improvement, reimprovement, structure, or part of it, and which is not a residence as defined in this chapter.
(4) Council' means the South Carolina Building Codes Council.
(5) `Director' means the Director of the Department of Labor, Licensing, and Regulation.
(6) `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 structural problems or conditions, damage, safety problems or deterioration that is visible and readily accessible, and equipment and systems. Home inspection does not include a contract or proposal for repair, renovation, or remodeling of the improvements to a residence. The parties to an agreement for a home inspection may limit or expand the scope of the inspection by agreement.
(7) `Home inspector' means a natural person who, for compensation of any sort, engages in the business of home inspection.
(8) `Residence' means a structure including, but not limited to, condominium units and townhouses, intended to be used or in fact used primarily for living quarters by one or more natural persons which is not over three floors in height and which does not have more than sixteen units.
Section 40-26-20. The council is authorized to administer the provisions of this chapter. The council shall keep a register of all applicants for a license including the date of application, the name, qualifications, place of business, place of residence of the applicant, and the status of the license application. The council also shall maintain a roster listing the name, place of business, residence, and business telephone number of each licensed home and commercial inspector. A copy of the roster must be available to anyone upon a written request to the council. The council 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 council.
Section 40-26-30. (A) No person may engage in or transact any home or commercial inspection business, or hold himself out to the public as a home or commercial inspector, or offer to engage in or transact any home or commercial inspection business in this State unless the person is licensed by the council.
(B) 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 state licensed home or commercial inspector from performing home or 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 40-26-40. The provisions of this chapter do not apply to:
(1) 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;
(2) a person inspecting a residence or commercial structure exclusively for the use of a bank, savings and loan association, or credit union, unless otherwise required by federal law or regulation;
(3) for a home inspector, a person duly licensed, registered, or certified pursuant to Chapters 3, 11, 22, or 59 of this title. Notwithstanding the exemption from licensure under this chapter, such person is subject to the enforcement powers of the council for any violation of this chapter relating to the conduct of the person in the performance of a home inspection. Furthermore, any violation of this chapter is considered a violation against the person's license, and is subject to disciplinary action by the licensing board under which the person is duly licensed.
(4) for a commercial inspector, a person duly licensed, registered, or certified pursuant to Chapters 3, 11, or 22 of this title. Notwithstanding the exemption from licensure under this chapter, such person is subject to the enforcement powers of the council for any violation of this chapter relating to the conduct of the person in the performance of a commercial inspection. Furthermore, any violation of this chapter is considered a violation against the person's license, and is subject to disciplinary action by the licensing board under which the person is duly licensed.
Section 40-26-50. (A) A person desiring to be licensed as a home or commercial inspector shall make a written application to the council on forms as the council prescribes. Upon the submission of a completed application form and the payment of the fee required by the council, the applicant is entitled to take the home or commercial inspector licensing examination as prescribed by the council. Upon successful completion of the examination, the council shall issue the applicant a license authorizing the applicant to engage in the business of home or commercial 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 or commercial inspector while the license remains active.
(B) The council shall promulgate regulations to establish the minimum qualifications and uniform criteria for the granting of a home or commercial inspector license.
Section 40-26-60. (A) The licensee shall display the license in the manner prescribed by the council.
(B) The licensee shall inform the council 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 chapter. If the home or commercial inspector has not complied with any provisions of this chapter during the year, the licensee shall make a new application as in the case of the issuance of an original license.
(D) The council may provide for the late renewal of a license upon payment of a late fee in an amount established by regulation of the council.
(E) A licensee who does not intend to engage in the business of home or commercial inspection for at least one year may request upon written notice to the council 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 or commercial inspections in this State. When the person desires to resume the performance of home or commercial inspections, he shall file an application for license renewal, pay the renewal fee, and demonstrate continuing competence as defined by regulation of the council. 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 40-26-70. (A) The council may deny, refuse to renew, temporarily suspend, or revoke a license 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 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 home or 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 home or commercial inspection;
(4) payment of a finders fee or a referral fee to any person in connection with an inspection of a residence or commercial structure;
(5) failure or refusal without good cause to exercise reasonable diligence in developing a home or commercial inspection report, preparing a report, or communicating a report;
(6) accepting a home or commercial inspection assignment when the employment itself is contingent upon the home or 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 work or improvement to a residence or commercial structure upon which the home or commercial inspector performed a home or commercial 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 or commercial inspections;
(10) practicing as a licensed home or commercial 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 chapter or any regulation promulgated by the council under this chapter, or aiding, abetting, or assisting a person in such violation.
(B) The denial, refusal to renew, temporary suspension, or revocation of a license may be ordered by a decision of a majority of the council after a hearing held in accordance with Article 3, Chapter 23, of Title 1, the Administrative Procedures Act. A decision of the council to deny, refuse to renew, temporarily suspend, or revoke a license is subject to review by an administrative law judge as provided under Article 5, Chapter 23, Title 1.
(C) An application may be made to the council 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 council.
Section 40-26-80. The council is authorized to enforce the provisions of this chapter. A home or commercial inspector who is not otherwise exempt from this chapter who undertakes or attempts to undertake the business of home or commercial inspection without first obtaining a valid license, or who knowingly presents to, or files with, the council 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, upon conviction, the person 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 or commercial inspector who does not have a license as required by this chapter 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 chapter.
Whenever it appears to the council that any home or commercial inspector has violated or is about to violate the provisions of this chapter, the council may in its own name petition an administrative law judge as provided under Article 5, Chapter 23, Title 1 to issue a temporary restraining order enjoining the violation of this chapter, pending a full hearing to determine whether or not the injunction must be made permanent.
Section 40-26-90. The council is authorized to promulgate regulations to administer the provisions of this chapter and to establish fees reasonably necessary to cover the costs of administering the chapter.
Section 40-26-100. 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."
SECTION 2. This act takes effect six months after approval by the Governor./
Amend title to conform.
THOMAS C. ALEXANDER, for Committee.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 40-59-85 SO AS TO REQUIRE REAL ESTATE INSPECTION COMPANIES TO BE REGISTERED WITH THE SOUTH CAROLINA RESIDENTIAL HOME BUILDERS COMMISSION AND TO PROVIDE TO THE COMMISSION CERTAIN BONDING AND LIABILITY INSURANCE CERTIFICATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 40-59-85. Real estate inspection companies must register with the South Carolina Residential Home Builders Commission and furnish the commission a bond and a certificate of liability insurance as follows:
SECTION 2. This act takes effect upon approval by the Governor.