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TO AMEND SECTION 40-11-170, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ASSESSING COSTS OF INVESTIGATION AND PROSECUTION OF A CASE AGAINST A PERSON FOUND IN VIOLATION OF CHAPTER 11, TITLE 40, WHICH PROVIDES FOR THE LICENSURE AND REGULATION OF CONTRACTORS, SO AS TO PROVIDE THAT THE DEPARTMENT MAY NOT ASSESS SUCH COSTS; TO AMEND SECTION 40-11-370, AS AMENDED, RELATING TO THE PROHIBITION AGAINST ENGAGING IN CONSTRUCTION IN A NAME OTHER THAN THE EXACT NAME THAT APPEARS ON THE ENTITY'S CONTRACTOR'S LICENSE AND PROHIBITING ENFORCEMENT OF A CONTRACT IF THE ENTITY ENTERED THE CONTRACT IN A NAME OTHER THAN THE NAME THAT APPEARS ON THE ENTITY'S LICENSE, SO AS TO PROVIDE THAT AN ENTITY MAY NOT ENGAGE IN CONSTRUCTION UNDER A NAME OR A LICENSE NUMBER OTHER THAN THAT WHICH APPEARS ON THE ENTITY'S LICENSE AND TO PROVIDE THAT AN ENTITY MAY ONLY ENFORCE A CONSTRUCTION CONTRACT IF THE ENTITY EITHER ENTERED THE CONTRACT IN THE NAME THAT APPEARS ON THE ENTITY'S LICENSE OR IF THE CONTRACT CONTAINED THE LICENSE NUMBER THAT APPEARS ON THE ENTITY'S LICENSE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 40-11-170 of the 1976 Code is amended to read:
"Section 40-11-170. A Notwithstanding the provisions of Chapter 1 or any other provision of law, the department may not assess a person costs associated with the investigation or prosecution, or both, of a case in which the person is found in violation of this chapter or regulations promulgated under this chapter may be required to pay costs associated with the investigation and prosecution of the case in accordance with Section 40-1-170."
SECTION 2. Section 40-11-370 of the 1976 Code, as amended by Act 32 of 2001, is further amended to read:
"Section 40-11-370. (A) It is unlawful to use the term 'licensed contractor' or to perform or offer to perform general or mechanical construction without first obtaining a license as required by this chapter.
(B) It is unlawful to engage in construction under a name or license number other than the exact name or exact license number which that appears on the license issued pursuant to this chapter. 'Engaging in construction' includes marketing, advertising, using site signs, and submitting contracts. It is not a violation of this requirement does not include subsection, so long as an advertisement is not misleading, if the advertisement:
(1) advertising on vehicles a vehicle, which may use uses an abbreviated version of the license name so long as the advertising is not misleading; or
(2) substantially includes the name of the licensed person or entity.
(C)(1) An entity which that does not have a valid license as required by this chapter may not bring an action either at law or in equity to enforce the provisions of a contract.
(2) An entity that enters into a contract to engage in construction in a name other than the name that appears on its license licensed pursuant to this chapter may not bring an action either at law or in equity to enforce the provisions of the a contract to engage in construction only if either:
(a) the entity entered into the contract in the name that appears on its license; or
(b) the contract contained the license number that appears on the entity's license."
SECTION 3. This act takes effect upon approval by the Governor.
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