The bill H. 4518 seeks to amend the South Carolina Code of Laws to strengthen regulations for residential builders, trade contractors, and registrants. A key provision is the introduction of a new section, 40-59-225, which requires these professionals to obtain surety bonds to ensure compliance with regulations. Homeowners will be able to file claims against these bonds only after a formal complaint is lodged with the commission and adherence to the South Carolina Notice and Opportunity to Cure Construction Dwelling Defects Act. The bill also revises the composition of the South Carolina Residential Builders Commission, updates definitions (including renaming "residential specialty contractors" to "residential trade contractors"), and introduces a new category for "residential trade registrants."

Further amendments include changes to licensing and registration processes, such as biennial fees and a tiered licensing system for builders. The bill allows for the discretionary denial of licensure based on criminal records and mandates background checks for new applicants. It clarifies that residential trade registrants cannot construct additions without supervision from licensed builders and outlines penalties for unregistered contracting activities. Additionally, the bill permits 501(c)(3) organizations to build homes for low-income families using volunteer labor without a licensed builder, provided they pay for the building permit. Overall, the amendments aim to enhance regulatory oversight and ensure compliance within South Carolina's residential construction industry.

Statutes affected:
05/06/2025: 40-59-225, 40-59-10, 40-59-20, 40-59-25, 40-59-30, 40-59-50, 40-59-105, 40-59-110, 40-59-140, 40-59-220, 40-59-230, 40-59-240, 40-59-250, 40-59-260, 40-59-300, 40-59-400, 40-59-410, 40-59-530, 40-59-580, 40-59-600, 40-59-820
Latest Version: 40-59-225, 40-59-10, 40-59-20, 40-59-25, 40-59-30, 40-59-50, 40-59-105, 40-59-110, 40-59-140, 40-59-220, 40-59-230, 40-59-240, 40-59-250, 40-59-260, 40-59-300, 40-59-400, 40-59-410, 40-59-530, 40-59-580, 40-59-600, 40-59-820