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Current Status Bill Number:View additional legislative information at the LPITS web site.3798 Ratification Number:164 Act Number:91 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19990330 Primary Sponsor:Bailey All Sponsors:Bailey, Barfield, Allen, Allison, Altman, Askins, Bales, Battle, Beck, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Clyburn, Cobb-Hunter, Cotty, Dantzler, Davenport, Delleney, Edge, Emory, Gamble, Gourdine, Gilham, Hamilton, Harris, Harrell, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, M. McLeod, W. McLeod, McMahand, Meacham-Richardson, Miller, Moody-Lawrence, J.H. Neal, Neilson, Ott, Parks, Phillips, Pinckney, Rhoad, Rice, Riser, Robinson, Rodgers, Rutherford, Sandifer, Scott, Sharpe, Sheheen, Simrill, J. Smith, F. Smith, R. Smith, Stille, Taylor, Townsend, Tripp, Trotter, Vaughn, Walker, Webb, Whatley, Whipper, Wilder, Wilkins, Witherspoon, Woodrum and Young-Brickell Drafted Document Number:l:\council\bills\psd\7330ac99.doc Date Bill Passed both Bodies:19990601 Date of Last Amendment:19990527 Governor's Action:S Date of Governor's Action:19990611 Subject:Contractors, general or mechanical; financial statement requirements for licenses; Construction, Residential specialty History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 19990702 Act No. A91 ------ 19990611 Signed by Governor ------ 19990609 Ratified R164 Senate 19990601 Concurred in House amendment, enrolled for ratification House 19990527 Senate amendments amended, returned to Senate with amendment Senate 19990525 Read third time, returned with amendment Senate 19990520 Amended, read second time, ordered to third reading with notice of general amendments Senate 19990520 Committee amendment adopted Senate 19990519 Committee report: Favorable with 12 SLCI amendment Senate 19990422 Introduced, read first time, 12 SLCI referred to Committee House 19990421 Read third time, sent to Senate House 19990420 Amended, read second time House 19990414 Committee report: Favorable with 26 HLCI amendment House 19990330 Introduced, read first time, 26 HLCI referred to Committee Versions of This Bill Revised on April 14, 1999 - Word format Revised on April 20, 1999 - Word format Revised on May 19, 1999 - Word format Revised on May 20, 1999 - Word format Revised on May 27, 1999 - Word format
(A91, R164, H3798)
AN ACT TO AMEND SECTION 40-11-260, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO FINANCIAL STATEMENT REQUIREMENTS FOR GENERAL AND MECHANICAL CONTRACTORS' LICENSURE AND RENEWAL, SO AS TO PROVIDE THAT ON RENEWAL A GENERAL CONTRACTOR BIDDING AND PERFORMING ON JOBS NOT EXCEEDING A SPECIFIED AMOUNT MAY SUBMIT AN OWNER-PREPARED FINANCIAL STATEMENT WITH AN AFFIDAVIT OF ACCURACY INDICATING A CERTAIN REQUIRED NET WORTH, RATHER THAN REQUIRING A CERTIFIED PUBLIC ACCOUNTANT TO PREPARE THE FINANCIAL STATEMENT; AND TO AMEND SECTION 40-11-360 RELATING TO EXEMPTIONS FROM CONTRACTOR'S LICENSURE CHAPTER, SO AS TO MAKE THE EXEMPTION FOR CERTAIN CATEGORIES OF PUBLIC OWNERS SUBJECT TO THE CONSUMER PRICE INDEX INFLATION FACTOR; AND ALSO TO EXEMPT DEPARTMENT OF CORRECTIONS' PROJECTS AND MAINTENANCE AND RENOVATION PROVIDED BY THE PUBLIC SERVICE AUTHORITY TO EXISTING FACILITIES; TO AMEND SECTION 40-59-77, AS AMENDED, RELATING TO RESIDENTIAL SPECIALTY CONTRACTORS, SO AS TO PROHIBIT A COUNTY OR MUNICIPALITY FROM ADOPTING REQUIREMENTS REQUIRING A RESIDENTIAL SPECIALTY CONTRACTOR TO ABIDE BY COMMERCIAL CONSTRUCTION LICENSING REQUIREMENTS UNLESS THE CONTRACTOR IS ENGAGED IN COMMERCIAL CONSTRUCTION; TO AMEND SECTION 40-11-60, AS AMENDED, RELATING TO THE AUTHORITY OF THE CONTRACTOR'S LICENSING BOARD TO PROMULGATE REGULATIONS, SO AS TO REQUIRE THE PROMULGATION OF REGULATIONS PERTAINING TO FILING OWNER-PREPARED FINANCIAL STATEMENTS FOR LICENSE RENEWAL PURPOSES.
Be it enacted by the General Assembly of the State of South Carolina:
Financial statements; net worth requirements
SECTION 1. Section 40-11-260(A)(3)(b) and (c) of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with Generally Accepted Accounting Principles (GAAP), including all disclosures required by GAAP indicating a required net worth of seventy thousand dollars;
(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of seventy thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of seventy thousand dollars;"
Financial statements; net worth requirements
SECTION 2. Section 40-11-260(A)(4)(b) and (c) of the 1976 Code, as last amended by Act 440 of 1998, are further amended to read:
"(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP indicating a required net worth of one hundred fifty thousand dollars;
(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of one hundred fifty thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of one hundred fifty thousand dollars;"
Financial statements; net worth requirements
SECTION 3. Section 40-11-260(B)(3) of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"(3) Group Three
(a) bids and jobs not to exceed $50,000.00 per job;
(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with Generally Accepted Accounting Principles (GAAP), including all disclosures required by GAAP indicating a net worth of ten thousand dollars;
(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of ten thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of ten thousand dollars;"
Financial statements; net worth requirements
SECTION 4. Section 40-11-260(B)(4) of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"(4) Group Four
(a) bids and jobs not to exceed $125,000.00 per job;
(b) on initial application, a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP indicating a net worth of twenty-five thousand dollars;
(c) on renewal, an owner-prepared financial statement with an affidavit of accuracy indicating a required net worth of twenty-five thousand dollars, or a financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP, and indicating a required net worth of twenty-five thousand dollars;"
Exemption from chapter
SECTION 5. Section 40-11-360(A)(8) of the 1976 Code, as added by Act 440 of 1998, is amended to read:
"(8) Public owners performing all or a portion of any work on a project themselves as long as the work performed falls within the limitations of a License Group 3 General Contractor or a License Group 4 Mechanical Contractor, as adjusted by an inflation factor reflecting the Department of Labor's Consumer Price Index."
Exemptions from chapter
SECTION 6. Section 40-11-360(A) of the 1976 Code, as added by Act 440 of 1998, is amended by adding:
"(9) Renovations and maintenance projects of the South Carolina Department of Corrections whereby all labor is supplied from that department's own labor forces.
(10) The South Carolina Public Service Authority when performing maintenance and renovations to existing facilities and when performing work in accordance with Section 40-11-410(4)(n)."
General contractors - specialty subclassification
SECTION 7. Section 40-11-410(4) of the 1976 Code, as added by Act 440 of 1998, is further amended by adding at the end:
"(o) 'Boiler installation' which includes those who are qualified to install, repair, and service boilers and boiler piping including the boiler auxiliary equipment, controls, and actuated machinery and dryer rolls. To qualify for this subclassification, a person must pass a technical examination administered by the board or must be the holder of the ASME 'R' stamp or the ASME 'PP' stamp. Anyone holding the masonry or process piping classification as of January 1, 1998, and who has been actively engaged in boiler installation work under these classifications is qualified for this subclassification and exempt from the examination requirement of this subitem."
Residential specialty contractors, county and municipal requirements
SECTION 8. Section 40-59-77 of the 1976 Code, as last amended by Act 72 of 1993, is further amended to read:
"Section 40-59-77. (A) The commission shall, by regulation, classify residential specialty contractors in a manner consistent with established usage and procedure in the construction business, and may limit the field and scope of the operations of a residential specialty contractor to those in which he is to be registered. All residential specialty contractor registrations issued by the commission must be for one or more of the classifications adopted pursuant to this chapter.
(B) Residential specialty contractors must be qualified and experienced in the particular branches or fields of the contracting vocation in which they intend to, and do, engage.
Residential specialty contractors are not exempt from complying with county and municipal business license ordinances or other regulatory ordinances. Any county or municipality may require a residential specialty contractor to be examined and licensed in accordance with standards adopted by the county or municipality. However, a county or municipality may not adopt requirements that would require that a residential specialty contractor abide by commercial construction licensing requirements unless he is engaged in commercial construction."
Regulations
SECTION 9. Section 40-11-60 of the 1976 Code, as amended by Act 440 of 1998, is further amended to read:
"Section 40-11-60. The board may adopt rules governing its proceedings and may promulgate regulations necessary to carry out the provisions of this chapter. Regulations must be promulgated to establish the form an owner must use to submit an owner-prepared financial statement as provided in Section 40-11-260(A)(3)(c), (A)(4)(c), (B)(3)(c), and (B)(4)(c). The department must furnish the form to the licensees."
Time effective
SECTION 10. This act takes effect upon approval by the Governor.
Ratified the 9th day of June, 1999.
Approved the 11th day of June, 1999.
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