2023 South Carolina Code of Laws › Title 40 - Professions and Occupations › Chapter 11 - Contractors › Section 40-11-230. Certification as qualifying party.

(A) To qualify for certification as a qualifying party, an applicant must:
(1) submit a completed application on a form approved by the board and pay all applicable examination fees to the examination provider;
(2) submit proof of having attained a grade of seventy percent or better on a technical examination where required for each classification or subclassification of licensure applied for; and
(3) attain a grade of seventy percent or better on an examination of South Carolina law regulating general and mechanical contracting.
An individual may only take an examination in a license classification or subclassification two times in a twelve-month period and thereafter only once in six months.
An individual may take an examination and be issued a certificate in any license classification or subclassification regardless of their current place of employment.
Upon fulfillment of all requirements of this subsection, the department shall issue a qualifying party a certificate which shall include the individual's full name, certificate number, and classifications or subclassification for which the individual is certified.
An applicant who has not been certified as a qualifying party for four or more consecutive years must take and pass the technical or Code of Laws examination, or both, as required by the board.
An individual may only serve as qualifying party for one licensee with the exception as provided in subsection (C).
(B) To become designated by an entity as a primary qualifying party, an individual must meet all of the following:
(1) hold a valid certificate issued pursuant to this chapter;
(2) submit an affidavit verifying employment from former or current employers for whom the applicant was employed full-time for at least two years within the previous five years in the license classification or subclassification for which application is made or submit additional proof of employment experience as approved by the board;
(3) submit documentation as approved by the board that they serve in a management capacity for the applicant and are actively involved in management, supervision, and operations for the work undertaken by the applicant. The primary qualifying party must be an integral party of the applicant's business and the work undertaken by the applicant.
A primary qualifying party may not take other employment that would conflict with the duties as primary qualifying party or diminish the ability to adequately supervise work performed by the licensee.
An individual desiring to be certified and serve as a primary qualifying party for a license group one, two, or three general contractor licensed pursuant to Section 40-11-410(A) must pass either the limited building contractor examination or the unlimited general contractor examination. Structures built by licensees for which the primary qualifying party has taken and passed the limited building contractor examination are restricted to three stories in height.
An individual desiring to be certified and serve as a primary qualifying party for a license group four or five general contractor licensed pursuant to Section 40-11-410(A) must pass the unlimited general contractor examination.
When a primary qualifying party ceases to serve as a primary qualifying party for a licensee, the licensee or the primary qualifying party shall notify the department in writing within fifteen days of the disassociation. If the licensee or primary qualifying party notifies the department within the prescribed time, the license remains in good standing for ninety days from the date the department receives notice of the disassociation. Failure to notify the department within fifteen days of a primary qualifying party's disassociation may result in license and certificate cancellation.
If, after properly notifying the department of disassociation, the licensee fails to designate a replacement primary qualifying party pursuant to the requirements of this chapter within ninety days, the department shall suspend the licensee's license until a primary qualifying party is designated pursuant to the requirements of this chapter.
(C) If a qualifying party desires to serve as primary qualifying party for two entities, both entities must engage in business from the same physical location. The qualifying party must:
(1) be involved in the operation of both entities on a daily basis;
(2) derive a livelihood from the operation of both entities;
(3) have ownership in both entities with at least fifty percent ownership in one of the entities.
(D) Building officials or other individuals who have or are able to meet the requirements of a qualifying party and are employed by an unlicensed entity that is actively associated with the construction industry may retain qualifying party status.
HISTORY: 1998 Act No. 440, Section 1; 2023 Act No. 69 (H.4115), Section 6, eff May 19, 2023.
Effect of Amendment
2023 Act No. 69, Section 6, in (B), inserted "meet all of the following", rewrote (3), in the fourth undesignated paragraph, in the second sentence, inserted "or primary qualifying party", and in the third sentence, substituted "may result" for "results in automatic", and made nonsubstantive changes.