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Current Status Bill Number:View additional legislative information at the LPITS web site.4349 Ratification Number:387 Act Number:324 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:20000111 Primary Sponsor:Bailey All Sponsors:Bailey, Littlejohn Drafted Document Number:l:\council\bills\gjk\20838ac00.doc Date Bill Passed both Bodies:20000530 Date of Last Amendment:20000523 Governor's Action:S Date of Governor's Action:20000606 Subject:Construction, Contractors, Residential home builder, inspection, specialty contracting; certificate for firm; Buildings History Body Date Action Description Com Leg Involved ______ ________ ______________________________________ _______ ____________ ------ 20000616 Act No. A324 ------ 20000606 Signed by Governor ------ 20000531 Ratified R387 House 20000530 Concurred in Senate amendment, enrolled for ratification Senate 20000524 Read third time, returned to House with amendment Senate 20000523 Amended, read second time ------ 20000517 Scrivener's error corrected Senate 20000516 Committee report: Favorable with 12 SLCI amendment Senate 20000314 Introduced, read first time, 12 SLCI referred to Committee House 20000309 Read third time, sent to Senate House 20000308 Amended, read second time House 20000302 Debate adjourned until Tuesday, 20000307 House 20000301 Request for debate withdrawn by Representative Bailey Breeland J. Hines House 20000229 Request for debate withdrawn by Representative Scott Lloyd House 20000222 Request for debate by Representative Scott J.H. Neal Lloyd Rutherford Breeland F. Smith J. Hines Bailey House 20000216 Committee report: Favorable 26 HLCI House 20000111 Introduced, read first time, 26 HLCI referred to Committee House 19991215 Prefiled, referred to Committee 26 HLCI Versions of This Bill Revised on February 16, 2000 - Word format Revised on March 8, 2000 - Word format Revised on May 16, 2000 - Word format Revised on May 17, 2000 - Word format Revised on May 23, 2000 - Word format
(A324, R387, H4349)
AN ACT TO AMEND CHAPTER 59, TITLE 40, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO RESIDENTIAL BUILDERS, BY ADDING ARTICLE 4 SO AS TO REQUIRE A CERTIFICATE OF AUTHORIZATION FOR A FIRM TO PRACTICE RESIDENTIAL BUILDING, RESIDENTIAL SPECIALTY CONTRACTING AND HOME INSPECTING, TO ESTABLISH REQUIREMENTS FOR OBTAINING A CERTIFICATE, AND TO FURTHER PROVIDE FOR THE REGULATION OF SUCH FIRMS.
Be it enacted by the General Assembly of the State of South Carolina:
Certificates of authorization
SECTION 1. Chapter 59, Title 40 of the 1976 Code is amended by adding:
Section 40-59-400. For purposes of this article:
(1) 'Branch office' means a place of business separate from the principal place of business where building services are offered or provided. A specific project or construction site office is not a branch office.
(2) 'Commission' means the South Carolina Residential Builders Commission established in Article 1.
(3) 'Firm' means a business entity functioning as a sole proprietorship, partnership, limited liability partnership, professional association, professional corporation, business corporation, limited liability company, joint venture, or other legally constituted organization which offers or provides building services through licensed residential builders, residential specialty contractors, or home inspectors.
(4) 'Private practice firm' means a firm through which the practice of residential building, residential specialty contracting, or home inspecting requires a residential business certificate of authorization as described in this chapter.
(5) 'Resident licensee' means a licensed practitioner who spends a majority of each normal workday working out of a principal or branch office and who is in responsible charge of the office and the building services provided from that office including, but not limited to, responsibility for applying for permits for the firm.
(6) 'Responsible charge' means the direction of building services by a residential builder, residential specialty contractor, or home inspector to the extent that successful completion of the building services is dependent on the personal supervision, direct control, and final decisions by the qualified registrant to the extent that the qualified registrant assumes professional responsibility for the building services.
Section 40-59-410. (A) The practice or offer to practice residential building, residential specialty contracting, or home inspecting through a firm is authorized only through entities holding a residential business certificate of authorization issued by the commission. For the purposes of this section, a residential business certificate of authorization is also required for any firm practicing in this State under a fictitious name. However, when an individual is practicing residential home building, residential specialty contracting, or home inspecting in his name as individually licensed, or if an individual has at least fifty-one percent of the ownership interest and is the sole resident licensee for the firm, that person or entity is not required to be issued a residential business certificate of authorization.
(B) The practice or offer to practice residential home building, residential specialty contracting, or home inspecting as defined in this chapter by an individual residential home builder, residential specialty contractor, or home inspector licensed or registered under this chapter through a firm offering residential building, residential specialty contracting, or home inspecting services to the public is authorized if:
(1) one or more of the corporate officers in the case of a corporation, or one or more of the principal owners in the case of a firm, or one or more employees are designated as the resident licensee in responsible charge of each principal or branch office for the building services regulated by the commission and are licensed under the provisions of this chapter;
(2) the firm has obtained an executed surety bond approved by the commission in the sum of fifteen thousand dollars initially and as subsequently provided by regulation; and
(3) the firm has been issued a residential business certificate of authorization by the commission. Nothing in this section may be construed to mean that a license or registration to practice residential home building, residential specialty contracting, or home inspecting may be held by a firm.
(C) Approval of firms seeking to incorporate or register to do business in this State under this section must be conditioned upon proper filing with the Secretary of State of the articles of incorporation and revisions to the articles, as certified by the Secretary of State. This section may not be construed to require an additional filing with the Secretary of State not otherwise required by law.
(D) A firm desiring a residential business certificate of authorization shall file with the department an application on forms provided by the department accompanied by all applicable fees. Each residential business certificate of authorization must be renewed by July first of the licensing period. A renewal form provided by the department must be completed and submitted with all applicable fees. The initial application fee and annual renewal fee are one hundred dollars and as subsequently provided by regulation. Information to be provided on the application and renewal forms shall include the names and addresses of all officers and directors of the firm or officers and partners of the partnership who are licensed or registered to practice residential home building, residential specialty contracting, or home inspecting in this State, including those in responsible charge of all principal and branch offices providing building services in the State.
(E) Disciplinary action against a firm must be administered in the same manner and on the same grounds as disciplinary action against an individual under this chapter and Section 40-1-110. No firm is relieved of responsibility for conduct or acts of its agents, officers, or employees by reason of its compliance with this section, and no individual practicing residential home building, residential specialty contracting, or home inspecting is relieved of responsibility for professional services performed by reason of his employment or relationship with the firm.
(F) Nothing in this section may be construed to prohibit firms from joining together to offer residential home building, residential specialty contracting, or home inspecting services to the public, if each separate entity providing the services in this State otherwise meets the requirements of this section. For firms practicing as a professional corporation under the laws of this State, the joint practice of residential home building, residential specialty contracting, or home inspecting with other professions is approved by the commission.
(G) If the requirements of this section are met, the commission shall issue a residential business certificate of authorization to the firm, and the firm may engage or offer to engage in the business of residential home building, residential specialty contracting, or home inspecting. The commission, however, may refuse to issue a certificate or may suspend or revoke an existing certificate for due cause. A person or organization aggrieved by an adverse determination of the commission may seek judicial review in accordance with this chapter.
(H) Residential home builders, residential specialty contractors, or home inspectors engaged in practice through firms involving the practice of residential building, residential specialty contracting, or home inspecting may maintain branch offices as well as a principal place of business.
Each principal place of business as well as each branch office must have a resident residential builder, residential specialty contractor, or home inspector in responsible charge of the field and office building work or services provided. A residential home builder must supervise the residential home building aspects of the principal or branch office and may also supervise the residential specialty contracting from that location. A residential specialty contractor may supervise residential specialty contracting services of the principal or branch office as long as the services are within the scope of residential specialty contracting in the classifications for which the individual is authorized to engage. A home inspector may supervise home inspecting services of the principal or branch office as long as the services are within the scope of home inspecting for which the individual is authorized to engage. The resident residential home builder, residential specialty contractor, or home inspector is considered in responsible charge of only one place of business at a given time.
For purposes of this subsection, 'engaged in practice' means holding oneself out generally to the public as qualified and available to perform residential building, residential specialty contracting, or home inspecting services.
(I) Nothing contained in this chapter prevents an authorized residential builder or residential specialty contractor from undertaking a residential building project anywhere in the State."
Time effective
SECTION 2. This act takes effect upon approval by the Governor.
Ratified the 31st day of May, 2000.
Approved the 6th day of June, 2000.
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