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SECTION 2. Chapter 59, Title 40 of the 1976 Code is amended by designating the existing provisions of that chapter as Article 1, to be entitled "Residential Home Builders Generally", and by adding:

Section 40-59-200. When used in this article:

`Administrator' means the administrator of the Board of Residential Builders.

`Board' means the Board of Residential Builders.

`Director' means the Director of the Department of Labor, Licensing and Regulation.

`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 items, equipment, and systems. Home inspection does not include a contract or proposal for repair, renovation or remodeling of the improvements to a residence.

`Home inspector' means a natural person who, for compensation of any sort, engages in the business of home inspection.

`Residence' means a building used primarily for living quarters which is not over three floors in height and which does not have more than sixteen units in the apartment complex.

Section 40-59-210. In addition to the duties and powers of the administrator pursuant to this chapter, the administrator shall administer the provisions of this article and provide for the administrative functions of the board. The administrator 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 administrator shall also 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 made available to any person pursuant to a written request to the board. The board 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 board.

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,

(B) No license shall be issued under the provisions of this article to a partnership, association, corporation, firm, or group. However, nothing herein precludes a state-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) unless otherwise required by federal law or regulation, a person inspecting a home exclusively for the use of a bank, savings and loan association, or credit union;

(C) a person duly licensed, registered, or certified pursuant to Chapters 3, 11, 22, or 59 of Title 40. Notwithstanding the exemption from licensure under this article, such person is subject to the enforcement powers of the administrator for any violation of this article relating to the conduct of the person in the performance of a home inspection. Furthermore, any violation of this article must be deemed 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 40-59-240. (A) A person desiring to be licensed as a home inspector shall make a written application to the board on such form as the board may prescribe. Upon the submission of a completed application form and the payment of the fee required by the board, the applicant is entitled to take the home inspector licensing examination as prescribed by the board. Upon successful completion of the examination, the board 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 of the rights and privileges of a licensed home inspector while the license remains active.

(B) The board 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 board.

(B) The licensee shall inform the board of any change in his business or home address.

(D) The board may provide for the late renewal of a license upon payment of a late fee in an amount established by regulation of the board.

(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 board that his license be placed in inactive status. While in inactive status, the person is not subject to payment of any renewal fee 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 board. 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 board 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 qualification or in any testimony concerning professional qualifications;

(2) any act or omission involving dishonesty, fraud, or misrepresentation with the intent to benefit substantially a home inspector or other person or with the intent to injure substantially 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;

(8) employment of fraud, deceit, or misrepresentation in obtaining or attempting to obtain a license, or renewal thereof;

(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 board hereunder, or aiding, abetting, or assisting any 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 board after a hearing held in accordance with Article 3, Chapter 23, of Title 1. A decision of the board 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, of Title 1.

(C) An application may be made to the board 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 board.

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. Any 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 board 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 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 any subsequent 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.

Section 40-59-280. The board 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. The home inspector is responsible for determining the construction dates and codes in effect at the time of construction. The home inspector shall examine the house based upon the building codes in effect at the time of construction and the building codes currently in effect at the time of the home inspection."

SECTION 3. Chapter 11, Title 40 of the 1976 Code is amended by designating the existing provisions of that chapter as Article 1, to be entitled, "Contractors Generally", and by adding:

Section 40-11-400. When used in this article:

`Board' means the Licensing Board for Contractors.

`Administrator' means the administrator for the Licensing Board for Contractors.

`Director' means the director of the Department of Labor, Licensing and Regulation.

`Commercial inspector' means a natural person who, for compensation of any sort, engages in the business of commercial inspection.

`Commercial inspection' means the rendering of a written or oral report, for compensation of any sort, as to the condition of a building, highway, sewer, grading, improvement, reimprovement, structure, or part thereof, when the cost of the undertaking is thirty thousand dollars or more. Commercial inspection does not include inspection of a residence as defined in Section 40-59-200.

Section 40-11-410. In addition to the duties and powers of the administrator pursuant to this chapter, the administrator shall administer the provisions of this article and provide for the administrative functions of the board. The administrator 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 administrator shall also maintain a roster listing the name, place of business, residence, and business telephone number of

Section 40-11-420. (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 by the board.

(B) No license shall be issued under the provisions of this article to a partnership, association, corporation, firm, or group. However, nothing herein precludes a state-licensed commercial inspector 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 40-11-430. 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) unless otherwise required by federal law or regulation, a person making a commercial inspection exclusively for the use of a bank, savings and loan association, or credit union;

(C) a person duly licensed, registered or certified pursuant to Chapters 3, 11 or 22 of Title 40. Notwithstanding the exemption from licensure under this article, such person is subject to the enforcement powers of the administrator for any violation of this article relating to the conduct of the person in the performance of a commercial inspection. Furthermore, any violation of this article must be deemed 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 40-11-440. (A) A person desiring to be licensed as a commercial inspector shall make a written application to the board on such form as the board may prescribe. Upon the submission of a completed application form and the payment of the fee required by the board, the applicant shall be entitled to take the commercial inspector licensing examination as prescribed by the board. Upon successful completion of the examination, the board shall issue the applicant a license authorizing the applicant to engage in the business of 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 commercial inspector while the license remains active.

Section 40-11-450. (A) The licensee shall display the license in the manner prescribed by the board.

(B) The licensee shall inform the board of any change in his business or commercial 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 commercial 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 board may provide for the late renewal of a license upon payment of a late fee in an amount established by regulation of the board.

(E) A licensee who does not intend to engage in the business of commercial inspection for at least one year may request upon written notice to the board that his license be placed in inactive status. While in inactive status, the person is not subject to payment of any renewal fee and shall not perform commercial inspections in this State. When the person desires to resume the performance of commercial inspections, he shall file an application for license renewal, pay the renewal fee, and demonstrate continuing competence as defined by regulation of the board. 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 40-11-460. (A) The board 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 qualification or in any testimony concerning professional qualifications;

(2) any act or omission involving dishonesty, fraud, or misrepresentation with the intent to benefit substantially a commercial inspector or other person or with the intent to injure substantially 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 a commercial inspection;

(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 work or improvement to a commercial project upon which the commercial inspector performed a commercial inspection within the previous twelve months;

(8) employment of fraud, deceit, or misrepresentation in obtaining or attempting to obtain a license or renewal thereof;

(9) committing an act or acts of malpractice, gross negligence, or incompetence in the performance of commercial inspections;

(10) practicing as a licensed 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 article or any regulation promulgated by the board hereunder or aiding, abetting, or assisting any 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 board after a hearing held in accordance with Article 3, Chapter 23, of Title 1. A decision of the board 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 of Title 1.

(C) An application may be made to the board 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 board.

Section 40-11-470. The administrator is authorized to use the powers granted to him pursuant to this chapter to enforce the provisions of this article. Any commercial inspector who is not otherwise exempt from this article who undertakes or attempts to undertake the business of commercial inspection without first obtaining a valid license or who knowingly presents to, or files with, the board false information for the purpose of obtaining a license is guilty of a misdemeanor and, upon conviction for the first offense, must be fined not more than one hundred dollars or imprisoned for not more than thirty days, or both. For a second

A commercial 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 commercial inspection which he entered into in violation of this article.

Whenever it appears to the board that any commercial inspector has violated, or is about to violate, the provisions of this chapter, the board 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 40-11-480. The board is authorized to promulgate regulations to administer the provisions of this article and to establish fees reasonably necessary to cover the costs of administering the article.

Section 40-11-490. The commercial inspector is responsible for determining the construction dates and codes in effect at the time of construction. The commercial inspector shall examine the subject of the inspection based upon the building codes in effect at the time of construction and the building codes currently in effect at the time of inspection."

SECTION 4. Section 38-7-30 of the 1976 Code is amended by adding:

"The first two hundred and fifty thousand dollars of the revenue collected pursuant to this section shall be transferred to the Department of Labor, Licensing and Regulation for the purpose of implementing the training, certification, and continuing education program for building codes enforcement officers pursuant to Article 2, Chapter 59 of Title 40."

SECTION 5. Sections 1 and 4 take effect upon approval by the Governor. Sections 2 and 3 take effect one hundred eighty days after approval by the Governor./

Amend title to conform.

Rep. G. BAILEY explained the amendment.

The amendment was then adopted.

The Senate amendments, as amended, were then agreed to and the Bill ordered returned to the Senate.

Rep. HOLT moved that the House recur to the morning hour, which was agreed to by a division vote of 56 to 39.

The Senate amendments to the following Joint Resolution were taken up for consideration.

H. 4955 -- Reps. Holt, J. Bailey, Gonzales, Barber, Whipper, Breeland, Inabinett, J. Harris, Harrell and Fulmer: A JOINT RESOLUTION TO AUTHORIZE THE STATE BUDGET AND CONTROL BOARD TO TRANSFER TO A LOCAL PUBLIC ENTITY APPROVED BY THE BOARD, AN AMOUNT NOT TO EXCEED SIX HUNDRED THOUSAND DOLLARS FROM MONIES SET ASIDE FOR THE PATRIOT'S POINT DEVELOPMENT AUTHORITY PURSUANT TO THE PROVISIONS OF SECTION 51-13-860 OF THE 1976 CODE, AND PROVIDE THAT THESE MONIES MUST BE LOANED FOR A PERIOD NOT TO EXCEED THREE YEARS AT AN INTEREST RATE TO BE DETERMINED BY THE STATE TREASURER, WITH THE MONEY FROM THIS LOAN USED BY THE ENTITY EXCLUSIVELY FOR THE BENEFIT OF SPOLETO FESTIVAL, USA.

The Senate amendments were agreed to, and the Joint Resolution, having received three readings in both Houses, it was ordered that the title be changed to that of an Act, and that it be enrolled for ratification.

Rep. HODGES, from the Committee on Judiciary, submitted a favorable report, with amendments, on:

H. 4887 -- Reps. Hodges and Govan: A BILL TO AMEND SECTION 7-11-20, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO NOMINATION OF CANDIDATES BY PRIMARY, SO AS TO REQUIRE THE GOVERNOR TO SELECT THE NOMINEE FOR LIEUTENANT GOVERNOR WITH THE SELECTION BEING RATIFIED BY A REPRESENTATIVE GROUP OF THE PARTY; TO AMEND SECTION 7-11-30, RELATING TO THE NOMINATION OF CANDIDATES BY CONVENTIONS, SO AS TO PROVIDE THAT PERSONS WHO RECEIVE THEIR PARTY'S NOMINATION FOR THE OFFICES OF GOVERNOR AND LIEUTENANT GOVERNOR SHALL RUN AS JOINT CANDIDATES

Ordered for consideration tomorrow.

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