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COMMITTEE REPORT
May 19, 1999
H. 3798
Introduced by Reps. Bailey, Barfield, Allen, Allison, Altman, Askins, Bales, Battle, Beck, Breeland, G. Brown, H. Brown, J. Brown, T. Brown, Campsen, Canty, Carnell, Cato, Clyburn, Cobb-Hunter, Cotty, Dantzler, Davenport, Delleney, Edge, Emory, Gamble, Gourdine, Gilham, Hamilton, Harris, Harrell, Harrison, Harvin, Haskins, Hawkins, Hayes, J. Hines, Hinson, Howard, Inabinett, Jennings, Keegan, Kelley, Kennedy, Kirsh, Klauber, Knotts, Koon, Lanford, Law, Leach, Lee, Limehouse, Littlejohn, Lloyd, Loftis, Lourie, Lucas, Mack, Maddox, Martin, Mason, McCraw, McGee, M. McLeod, W. McLeod, McMahand, Meacham, Miller, Moody-Lawrence, 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
S. Printed 5/19/99--S.
Read the first time April 22, 1999.
To whom was referred a Bill (H. 3798), 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, 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 Section 40-11-260(A)(3)(d)(c), as contained in SECTION 1, beginning on page 1 and line 39, and inserting:
/ (d)(c) on renewal, a an owner-prepared financial statement compiled in accordance with GAAP, with or without disclosures required by GAAP, 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; /
Amend further by striking Section 40-11-260(A)(4)(d)(c), as contained in SECTION 2, page 2, beginning on line 15, and inserting:
/ (d)(c) on renewal, a an owner-prepared financial statement compiled in accordance with GAAP, with or without disclosures required by GAAP, 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; /
Amend further by striking Section 40-11-260(B)(3)(d)(c), as contained in SECTION 3, page 2, beginning on line 32, and inserting:
/ (d)(c) on renewal, a an owner-prepared financial statement compiled in accordance with GAAP, with or without disclosures required by GAAP, 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; /
Amend further by striking Section 40-11-260(B)(4)(d)(c), as contained in SECTION 4, page 3, beginning on line 5, and inserting:
/ (d)(c) on renewal, a an owner-prepared financial statement compiled in accordance with GAAP, with or without disclosures required by GAAP, 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; /
Amend the bill further, as and if amended, page 3, by deleting SECTION 6 and inserting:
/ 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)."/
Amend further by adding an appropriately numbered SECTIONS to read:
/SECTION ___. Section 40-11-410(4) of the 1976 Code, as added by Act 440 of 1998, is further amended by adding at the end to read:
"(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."
SECTION ___. Section 40-59-77 of the 1976 Code is 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."
SECTION __. 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. The department must furnish the form to the licensees." /
Renumber sections to conform.
Amend title to conform.
J. VERNE SMITH, for Committee.
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, 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.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 40-11-260(A)(3)(b), (c), and (d) of the 1976 Code, as last amended by Act 440 of 1998, is further amended to read:
"Group Three
(b) required net worth of $70,000.00;
(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), including all disclosures required by GAAP indicating a required net worth of seventy thousand dollars;
(d)(c) on renewal, a an owner-prepared financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP with an affidavit of accuracy indicating a required net worth of seventy thousand dollars,"
SECTION 2. Section 40-11-260(A)(4)(b), (c), and (d) of the 1976 Code, as last amended by Act 440 of 1998, are further amended to read:
"Group Four
(b) required net worth of $150,000.00;
(c) 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;
(d)(c) on renewal, a an owner prepared financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP with an affidavit of accuracy indicating a required net worth of one hundred fifty thousand;"
SECTION 3. Section 40-11-260(B) 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) required net worth of $10,000.00;
(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), including all disclosures required by GAAP indicating a net worth of ten thousand dollars;
(d)(c) on renewal, a an owner-prepared financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP with an affidavit of accuracy indicating a required net worth of ten thousand dollars;"
SECTION 4. Section 40-11-260(B) 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) required net worth of $25,000.00;
(c) 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;
(d)(c) on renewal, a an owner-prepared financial statement compiled by a licensed certified public accountant or a licensed public accountant in accordance with GAAP, including all disclosures required by GAAP with an affidavit of accuracy indicating a required net worth of twenty-five thousand dollars;"
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 2 3 General Contractor or a License Group 3 4 Mechanical Contractor, and so long as the public owner employs a certified qualifying party in the appropriate classification."
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."
SECTION 7. This act takes effect upon approval by the Governor.
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