See other bills
under the
same topic
        PRIOR PRINTER'S NO. 395                       PRINTER'S NO. 1816

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 359 Session of 2007


        INTRODUCED BY GREENLEAF, RAFFERTY, O'PAKE, WAUGH, COSTA, FERLO,
           WOZNIAK, LOGAN, STACK, A. WILLIAMS AND BROWNE, MARCH 12, 2007

        SENATOR TOMLINSON, CONSUMER PROTECTION AND PROFESSIONAL
           LICENSURE, AS AMENDED, MARCH 11, 2008

                                     AN ACT

     1  Amending Title 68 (Real and Personal Property) of the
     2     Pennsylvania Consolidated Statutes, further providing for      <--
     3     home inspections; establishing the Pennsylvania Board of Home
     4     Inspectors; and providing for licensure of home inspectors
     5     and for disciplinary proceedings by the Pennsylvania Board of
     6     Home Inspectors. REPEALING PROVISIONS RELATING TO HOME         <--
     7     INSPECTIONS; PROVIDING FOR HOME INSPECTIONS; ESTABLISHING THE
     8     PENNSYLVANIA BOARD OF HOME INSPECTORS; PROVIDING FOR
     9     LICENSURE OF HOME INSPECTORS AND FOR DISCIPLINARY PROCEEDINGS
    10     BY THE PENNSYLVANIA BOARD OF HOME INSPECTORS; AND MAKING AN
    11     APPROPRIATION.

    12     The General Assembly of the Commonwealth of Pennsylvania
    13  hereby enacts as follows:
    14     Section 1.  Section 7502 of Title 68 of the Pennsylvania       <--
    15  Consolidated Statutes is amended to read:
    16  § 7502.  Definitions and index of definitions.
    17     (a)  Definitions.--The following words and phrases when used
    18  in this chapter shall have the meanings given to them in this
    19  section unless the context clearly indicates otherwise:
    20     "Applicant."  An individual who applies for a license as a
    21  home inspector.
    22     "Board."  The Pennsylvania Board of Home Inspectors

     1  established under section 7504.1 (relating to Pennsylvania Board
     2  of Home Inspectors).
     3     "Bureau."  The Bureau of Professional and Occupational
     4  Affairs in the Department of State.
     5     "Client."  An individual who contracts with a licensee to
     6  obtain a home inspection and subsequent written home inspection
     7  report.
     8     "Direct supervision."  A home inspection performed by a home
     9  inspector who is not a licensee in the presence of and under the
    10  tutelage of a supervising licensee.
    11     "Home inspection."  A noninvasive visual examination of some
    12  combination of the mechanical, electrical or plumbing systems or
    13  the structural and essential components of a residential
    14  dwelling designed to identify material defects in those systems
    15  and components and performed for a fee in connection with or
    16  preparation for a proposed or possible residential real estate
    17  transfer. The term also includes any consultation regarding the
    18  property that is represented to be a home inspection or that is
    19  described by any confusingly similar term. The term does not
    20  include an examination of a single system or component of a
    21  residential dwelling such as, for example, its electrical or
    22  plumbing system or its roof. The term also does not include an
    23  examination that is limited to inspection for or of one or more
    24  of the following: wood destroying insects, underground tanks and
    25  wells, septic systems, swimming pools and spas, alarm systems,
    26  air and water quality, tennis courts and playground equipment,
    27  pollutants, toxic chemicals and environmental hazards.
    28     "Home inspection report."  A written report [on the results
    29  of a home inspection.] prepared by a licensee for compensation
    30  and issued after a home inspection that includes:
    20070S0359B1816                  - 2 -     

     1         (1)  A description or identification of the structure
     2     component, systems and subsystems covered by the report.
     3         (2)  A report on any system or component inspected that,
     4     in the opinion of the licensee, is significantly deficient.
     5         (3)  The licensee's recommendation to seek further
     6     evaluation of an expert in that field or monitor deficiencies
     7     as reported.
     8         (4)  A list of any and all systems or components that
     9     were designated for inspection in the standards of practice
    10     adopted by the board but that were not inspected.
    11         (5)  The reason a system or component was not inspected.
    12     "Home inspector."  An individual who performs a home
    13  inspection, is properly licensed and meets the qualifications of
    14  this chapter.
    15     "License."  A license issued under this chapter to engage in
    16  home inspections.
    17     "Licensee."  A person who performs home inspections and who
    18  is licensed under this chapter as a home inspector.
    19     "National home inspectors association."  Any national
    20  association of home inspectors that:
    21         (1)  Is operated on a not-for-profit basis and is not
    22     operated as a franchise.
    23         (2)  Has members in more than ten states.
    24         (3)  Requires that a person may not become a full member
    25     unless the person has performed or participated in more than
    26     100 home inspections and has passed a recognized or
    27     accredited examination testing knowledge of the proper
    28     procedures for conducting a home inspection.
    29         (4)  Requires that its members comply with a code of
    30     conduct and attend continuing professional education classes
    20070S0359B1816                  - 3 -     

     1     as an ongoing condition of membership.
     2     "Preferred provider relationship."  A referral service
     3  offered by a real estate company, mortgage company, law firm,
     4  individual agent, attorney or other similar entity or individual
     5  when a licensee is recommended over other licensees in exchange
     6  for any direct or indirect consideration therefore, including,
     7  without limitation, the payment of a fee, or where in
     8  consideration of a licensee advertising produced by or for a
     9  person in consideration for recommendations or referrals to
    10  undertake home inspections.
    11     "Residential dwelling."  A structure consisting of at least
    12  one, but not more than four, units, each designed for occupancy
    13  by a single family, whether the unit or units are occupied or
    14  unoccupied.
    15     (b)  Index of other definitions.--The following is a
    16  nonexclusive list of other definitions applying to this chapter
    17  and the sections in which they appear:
    18     "Agent."  Section 7102 (relating to definitions).
    19     "Agreement of transfer."  Section 7102 (relating to
    20  definitions).
    21     "Buyer."  Section 7102 (relating to definitions).
    22     "Material defect."  Section 7102 (relating to definitions).
    23     "Residential real estate transfer."  Section 7103 (relating
    24  to application of part).
    25     "Seller."  Section 7102 (relating to definitions).
    26     Section 2.  Title 68 is amended by adding sections to read:
    27  § 7504.1.  Pennsylvania Board of Home Inspectors.
    28     (a)  Establishment.--The Pennsylvania Board of Home
    29  Inspectors is established to conduct business affairs under the
    30  Bureau of Professional and Occupational Affairs. The purpose of
    20070S0359B1816                  - 4 -     

     1  the board shall be to administer and enforce the provisions of
     2  this chapter, promote initiatives to protect consumers of home
     3  inspection services, create guidelines for the development of
     4  high-level skills in home inspectors and encourage the presence
     5  of a viable home inspection industry within this Commonwealth.
     6     (b)  Composition.--The board shall be composed of seven
     7  members who must be full-time residents of this Commonwealth and
     8  appointed by the Governor in accordance with the following
     9  requirements:
    10         (1)  For purposes of the initial appointments, five of
    11     the members must:
    12             (i)  Be actively engaged in performing home
    13         inspections in this Commonwealth for no less than five
    14         years immediately preceding the member's appointment to
    15         the board.
    16             (ii)  Have completed no less than 100 fee-paid
    17         inspections per year over the five years immediately
    18         preceding appointment to the board.
    19             (iii)  Demonstrate that they have passed a written
    20         examination administered by a national examination
    21         organization that complies with the standards established
    22         by this chapter.
    23     A board member who becomes a home inspector shall obtain the
    24     requisite license in accordance with this chapter, before or
    25     on the six-month anniversary of the effective date of this
    26     section. If a board member does not obtain the requisite
    27     license on or before such date, the board member shall be
    28     considered to have resigned from the board on the six-month
    29     anniversary of the effective date of this section, and the
    30     Governor shall fill the vacancy in accordance with this
    20070S0359B1816                  - 5 -     

     1     section. Thereafter, the home inspector members must be
     2     licensed prior to their appointments.
     3         (2)  One person shall represent the public at large and
     4     shall not be associated with the home inspection, home
     5     building or real estate business other than as a consumer.
     6     This member shall be appointed by the Governor but shall not
     7     be selected from a submitted list of names.
     8         (3)  One person shall be the Commissioner of the Bureau
     9     of Professional and Occupational Affairs or his designee.
    10     (c)  Member selection and service.--
    11         (1)  Appointment of the initial members comprising the
    12     board shall begin on the three-month anniversary of the
    13     effective date of this section, and their respective terms
    14     shall be staggered, as follows:
    15             (i)  Three members for a term of three years.
    16             (ii)  Two members for a term of two years.
    17             (iii)  Two members for a term of one year.
    18         (2)  Except as provided in paragraph (1), all board
    19     members shall serve a term of three years, and no member
    20     shall serve for more than three consecutive terms.
    21         (3)  The Governor may remove a board member at any time
    22     for incompetence, neglect of duty or unprofessional conduct.
    23         (4)  If a vacancy occurs in the membership of the board,
    24     the Governor shall appoint an individual to serve for the
    25     remainder of the unexpired term who has like qualifications
    26     required of the member who created the vacancy.
    27         (5)  Each year the board shall elect a member as
    28     chairperson and vice chairperson. The chairperson and vice
    29     chairperson shall serve in their respective capacities for no
    30     more than one year consecutively and until a successor is
    20070S0359B1816                  - 6 -     

     1     elected. The chairperson shall preside at all meetings at
     2     which the chairperson is present. The vice chairperson shall
     3     preside at meetings in the absence of the chairperson and
     4     shall perform other duties as the chairperson directs. If the
     5     chairperson and vice chairperson are absent from a meeting of
     6     the board when a quorum exists, the members who are present
     7     may elect a presiding officer who shall serve as acting
     8     chairperson until the conclusion of the meeting or until the
     9     arrival of the chairperson or vice chairperson at the
    10     meeting, whichever occurs first.
    11         (6)  The board shall meet at least quarterly each
    12     calendar year at the call of the chairperson or the written
    13     request of a majority of the members of the board. The
    14     chairperson shall establish the date, time and place for each
    15     meeting. A majority of the current members of the board shall
    16     constitute a quorum. The affirmative vote of a majority of
    17     the members appointed to the board shall be necessary for the
    18     board to take official action.
    19         (7)  Each member of the board shall serve on a voluntary
    20     basis but shall be entitled to reimbursement for traveling
    21     expenses and other expenses actually incurred in connection
    22     with the member's duties as established under this chapter.
    23  § 7504.2.  Licensure of home inspectors by board.
    24     (a)  Powers of board.--The board, through the promulgation of
    25  administrative rules and regulations, shall:
    26         (1)  Establish the requirements for and prescribe the
    27     form of licenses, applications and other documents that are
    28     required for home inspectors to be licensed under this
    29     chapter.
    30         (2)  Grant, deny, suspend and revoke approval of
    20070S0359B1816                  - 7 -     

     1     examinations and courses of study regarding home inspections;
     2     establish standards for continuing home inspection education,
     3     including, without limitation, the subject matter and content
     4     of courses of study and the selection of instructors; and
     5     approve other equivalent educational programs and establish
     6     procedures for the issuance of credit upon satisfactory proof
     7     of the completion of these programs.
     8         (3)  Issue, deny, suspend and revoke licenses in
     9     accordance with this chapter.
    10         (4)  Establish and maintain a current list of home
    11     inspectors who are registered or licensed. The list shall be
    12     available for public inspection, including by electronic
    13     means.
    14         (5)  Establish and maintain a current list of national
    15     home inspectors associations approved by the board as meeting
    16     the requirements of this chapter. Any national home
    17     inspectors association approved by the board must provide the
    18     board initially, and upon request, with a list of its members
    19     in this Commonwealth. Once approved, the association shall
    20     notify the board within 30 days when any of its members in
    21     this Commonwealth fail to maintain their membership in the
    22     association or are otherwise not in compliance with the rules
    23     of the association.
    24         (6)  Investigate complaints concerning licensees or
    25     persons the board has reason to believe should be licensees,
    26     including complaints concerning failure to comply with this
    27     chapter or administrative regulations promulgated under this
    28     chapter and, when appropriate, take action in accordance with
    29     this chapter.
    30         (7)  Bring actions in the name of the Commonwealth in an
    20070S0359B1816                  - 8 -     

     1     appropriate court in order to enforce compliance with this
     2     chapter or the administrative regulations promulgated under
     3     this chapter.
     4         (8)  Establish licensure fees in an amount determined by
     5     the board that are reasonably necessary and appropriate for
     6     enforcement.
     7         (9)  Inspect the records of a licensee in accordance with
     8     administrative regulations promulgated by the board.
     9         (10)  Conduct or designate a member or other
    10     representative to conduct public hearings on any matter for
    11     which a hearing is required under this chapter and exercise
    12     all powers granted under this section.
    13         (11)  Adopt a seal containing the words "Pennsylvania
    14     Board of Home Inspectors" and, through the board's secretary,
    15     certify copies and authenticate all acts of the board.
    16         (12)  Use board members, consultants and other persons to
    17     enter into contracts and to authorize expenditures that are
    18     reasonably necessary or appropriate to administer and enforce
    19     this chapter and administrative regulations promulgated under
    20     this chapter.
    21         (13)  Establish continuing education requirements of not
    22     less than 16 hours annually for licensees in accordance with
    23     this chapter.
    24         (14)  Maintain the board's office, files, records and
    25     property in the City of Harrisburg.
    26         (15)  Require all fee-paid home inspections to be
    27     conducted in accordance with the standards of practice of
    28     board-approved national home inspection associations.
    29         (16)  Establish standards of practice for licensees.
    30         (17)  Develop a model home inspection contract meeting
    20070S0359B1816                  - 9 -     

     1     the provisions of this chapter and encourage licensees to use
     2     the model contract.
     3         (18)  Create guidelines for mentoring programs and
     4     approved training facilities established pursuant to the
     5     requirements of section 7506 (relating to required
     6     contractual provisions regarding home inspections).
     7         (19)  Exercise all other powers specifically conferred on
     8     the board under this chapter.
     9         (20)  Promulgate rules and regulations to carry out the
    10     effective administration and the requirements of this
    11     chapter.
    12     (b)  Examination requirement.--To be eligible for a license
    13  as a home inspector in this Commonwealth, an applicant must pass
    14  a valid, reliable examination. This examination shall:
    15         (1)  Test competence in home inspection practice.
    16         (2)  Be developed pursuant to accepted psychometric
    17     standards promulgated by the American Educational Research
    18     Association's "Standards for Educational and Psychological
    19     Testing"; the Equal Employment Opportunity Commission's
    20     "Uniform Guidelines for Employee Selection Procedures"; the
    21     Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241);
    22     the Americans with Disabilities Act of 1990 (Public Law 101-
    23     336, 104 Stat. 327); and similar applicable standards.
    24         (3)  Be administered and proctored by an approved and
    25     recognized testing organization at a physical location to
    26     ensure both the security and integrity of the examination.
    27  § 7504.3.  Support of board by bureau.
    28     The bureau shall provide the board with:
    29         (1)  Clerical or other assistants, including
    30     investigators, necessary for the proper performance of the
    20070S0359B1816                 - 10 -     

     1     board's duties.
     2         (2)  A place to hold board meetings and hearings.
     3         (3)  Office equipment and office space for board records,
     4     staff and other effects necessary to carry out the
     5     requirements of this chapter.
     6  § 7504.4.  Income and expenditures of board.
     7     (a)  Establishment of revolving fund.--There is hereby
     8  established in the State Treasury a revolving fund for the use
     9  of the board.
    10     (b)  Deposits in fund.--All fees and other money received by
    11  the board in accordance with this chapter shall be deposited in
    12  the revolving fund. No part of this revolving fund shall revert
    13  to the General Fund.
    14     (c)  Use of fund.--The reimbursement of the board's expenses
    15  shall be paid from the revolving fund.
    16  § 7504.5.  Licensure of home inspectors.
    17     (a)  Home inspector license application.--A person applying
    18  for a license as a home inspector shall apply on a written,
    19  notarized form prescribed and provided by the board. Supporting
    20  and other required documents may be submitted by other means as
    21  prescribed by the board. The applicant shall pay the applicable
    22  licensing fee established by the board.
    23     (b)  Licensing requirements.--The board shall establish, from
    24  time to time, rules and regulations pertaining to the licensure
    25  of home inspectors but in any event shall require that a home
    26  inspector be a member, in good standing, of a board-approved
    27  national home inspection association.
    28     (c)  Denial of license.--The board shall deny a license to
    29  any applicant who fails to:
    30         (1)  furnish evidence satisfactory to the board, showing
    20070S0359B1816                 - 11 -     

     1     that the individual:
     2             (i)  is at least 18 years of age;
     3             (ii)  (A)  has graduated from high school, earned a
     4             Pennsylvania or other state's general educational
     5             development diploma; or
     6                 (B)  has actively worked within the business of
     7             home inspection for a minimum of five years; and
     8             (iii)  meets other criteria established by the board.
     9         (2)  verify the information submitted on the approved and
    10     notarized application form; or
    11         (3)  complete a board-approved training program or course
    12     of study involving the performance of home inspections and
    13     pass a valid examination prescribed or approved by the board,
    14     where such study program shall be for no less than 120 hours
    15     of instruction and include no less than 40 hours of actual
    16     in-field training.
    17     (d)  Waivers moving from another jurisdiction.--The licensing
    18  requirements for a home inspector may be waived for a person who
    19  moves to this Commonwealth from another jurisdiction, and the
    20  person may be granted a license as a home inspector if the
    21  person meets all of the following requirements:
    22         (1)  The other jurisdiction grants the same privileges to
    23     licensees of Pennsylvania as the Commonwealth grants to
    24     licensees of that other jurisdiction.
    25         (2)  The person is licensed in the other jurisdiction.
    26         (3)  The licensing requirements of the other jurisdiction
    27     are substantially similar to the requirements of this
    28     chapter.
    29         (4)  The person provides a notarized statement that the
    30     person has studied, is familiar with and will abide by the
    20070S0359B1816                 - 12 -     

     1     provisions of this chapter and the administrative regulations
     2     promulgated by the board.
     3     (e)  Advertising without license.--An individual shall not
     4  advertise nor claim to be a licensee and shall not conduct home
     5  inspection services for compensation without first obtaining a
     6  license issued by the board.
     7     (f)  Ownership of licenses.--All licenses issued by the board
     8  shall remain the property of the board.
     9     (g)  Information change notification.--A licensee shall
    10  notify the board within 30 days of any change of:
    11         (1)  name;
    12         (2)  name under which the licensee conducts business;
    13         (3)  business address; or
    14         (4)  lapse, change or cancellation of insurance coverage.
    15     (h)  License renewal.--A licensee may renew the license in
    16  accordance with the rules and regulations promulgated by the
    17  board which shall include the following provisions:
    18         (1)  The home inspector shall furnish evidence showing
    19     successful completion of the continuing education
    20     requirements of this chapter, pay the renewal fee established
    21     by the board and show proof of professional liability
    22     insurance as required by section 7509 (relating to liability
    23     insurance).
    24         (2)  The board shall send a renewal notice to each
    25     licensee at least 60 days prior to the expiration of the
    26     license. The notice shall inform the licensee of the need to
    27     renew and the requirement to submit an application and to pay
    28     the renewal fee. If the board fails to send the notice of
    29     expiration within such time period, the licensee shall not be
    30     subject to a sanction for failure to renew. If the board
    20070S0359B1816                 - 13 -     

     1     later sends the renewal notice to the licensee, the licensee
     2     must submit a complete application and renewal fee to the
     3     board within 45 days of the receipt of the renewal notice or
     4     be subject to a sanction for failure to renew.
     5         (3)  Renewal fees shall be paid with a draft, money
     6     order, cashier's check, certified or other personal check,
     7     or, if payment is made in person, the payment may be made in
     8     cash. If the board receives an uncertified personal check for
     9     the renewal fee and if the check does not clear the bank, the
    10     board may refuse to renew the license.
    11         (4)  Before the end of each license period, the licensee
    12     shall complete the continuing education required by the
    13     board.
    14     (i)  Inactive licenses.--The board may, through the
    15  promulgation of rules and regulations:
    16         (1)  Establish an inactive license for licensees who do
    17     not actively perform home inspections but wish to maintain
    18     the license. This inactive status shall not exceed a term of
    19     three years.
    20         (2)  Reduce license and renewal fees for inactive
    21     licenses.
    22         (3)  Waive the insurance requirements established in
    23     section 7509 for inactive licenses except that the inactive
    24     licensee must maintain insurance tail coverage for the first
    25     year of inactivity.
    26  § 7504.6.  Nonresident home inspectors.
    27     (a)  Nonresident licensing.--A nonresident individual who the
    28  board determines meets the requirements of this chapter and
    29  files a written consent may be licensed as a home inspector.
    30     (b)  Nonresident consent form.--A nonresident applicant shall
    20070S0359B1816                 - 14 -     

     1  file with the board a written and notarized consent stating
     2  that, if licensed:
     3         (1)  The applicant agrees to the commencement of any
     4     action arising out of the conduct of the applicant's business
     5     in this Commonwealth in the county in which the events giving
     6     rise to the cause of action occurred.
     7         (2)  The applicant:
     8             (i)  agrees to provide to the board the name and
     9         address of an agent to receive service of process in this
    10         Commonwealth; or
    11             (ii)  consents to the board acting as the applicant's
    12         agent for the purpose of receiving service of process if:
    13                 (A)  an agent's name and address have not been
    14             filed with the board or the agent's name and address
    15             on file with the board are incorrect; and
    16                 (B)  the applicant agrees that service of process
    17             in accordance with the Pennsylvania Rules of Civil
    18             Procedure is proper service and subjects the
    19             applicant to the jurisdiction of Pennsylvania courts.
    20  § 7504.7.  Continuing education of home inspectors.
    21     The board shall promulgate rules and regulations concerning
    22  the continuing education required for the renewal of a home
    23  inspector license and shall:
    24         (1)  Establish procedures for approving organizations
    25     that provide continuing education.
    26         (2)  Prescribe the content, duration and organization of
    27     continuing education courses that contribute to the
    28     competence of home inspectors.
    29  § 7504.8.  Registration or licensing of home inspectors by
    30             political subdivisions.
    20070S0359B1816                 - 15 -     

     1     No agency or political subdivision of this Commonwealth,
     2  other than the board, shall impose the following on individuals
     3  licensed under this chapter:
     4         (1)  A registration or licensing requirement for
     5     conducting home inspections.
     6         (2)  A license fee to obtain any local license, except
     7     that this prohibition shall not prevent any local government
     8     from imposing an occupational license tax on any person
     9     operating as a home inspector within the jurisdiction of the
    10     local government.
    11  § 7504.9.  Disciplinary proceedings by board.
    12     (a)  Disciplinary actions.--The board shall take disciplinary
    13  action against or impose sanctions on a licensee for failing to
    14  comply with any provision of this chapter or any rules and
    15  regulations promulgated to carry out this chapter as follows:
    16         (1)  The board may summarily suspend a license for up to
    17     90 days before a final adjudication or during an appeal of
    18     the board's determination if the board finds that the
    19     licensee represents a clear and immediate danger to the
    20     public's health, safety, financial interest or to property if
    21     allowed to perform home inspections. The summary suspension
    22     may be renewed at a hearing before the board for up to 90
    23     days.
    24         (2)  If the board:
    25             (i)  Determines that an individual is not licensed
    26         under this chapter and is engaged in or believed to be
    27         engaged in activities for which a license is required
    28         under this chapter, then the board shall issue an order
    29         to that individual requiring the individual to show cause
    30         why the individual should not be ordered to cease and
    20070S0359B1816                 - 16 -     

     1         desist from the activities. The show cause order shall
     2         set forth a date, time and place for a hearing at which
     3         the individual shall appear and show cause why the
     4         individual should not be subject to licensing under this
     5         chapter.
     6             (ii)  After a hearing, determines that the activities
     7         in which the individual is engaged are subject to
     8         licensure under this chapter, the board may issue a cease
     9         and desist order that identifies the individual and
    10         describes activities that are the subject of the order.
    11         (3)  A cease and desist order issued under this section
    12     shall be enforceable in the Commonwealth Court.
    13     (b)  Violations of chapter.--An individual is in violation of
    14  this chapter when the individual commits any of the following:
    15         (1)  Performs or offers to perform home inspections for
    16     compensation without being licensed as a home inspector and
    17     without being exempt from licensure under this chapter.
    18         (2)  Presents as the individual's own license, the
    19     license of another.
    20         (3)  Intentionally gives false or materially misleading
    21     information to the board or to a board member in connection
    22     with a licensing matter.
    23         (4)  Impersonates another licensee.
    24         (5)  Uses an expired, suspended, revoked or an otherwise
    25     restricted license.
    26     (c)  Fee or compensation.--The board shall add to any penalty
    27  imposed the amount of any fee or other compensation earned by
    28  the individual in the commission of the violation. Each
    29  transaction involving an unauthorized activity as described in
    30  this chapter shall constitute a separate violation.
    20070S0359B1816                 - 17 -     

     1     (d)  Legal advice.--The Department of State shall act as the
     2  legal adviser for the board and provide any legal assistance
     3  necessary to carry out this chapter.
     4     (e)  Revocation or suspension of license.--The board shall
     5  adopt provisions to revoke or suspend a license pending
     6  investigation for any of the following:
     7         (1)  A conviction in any jurisdiction of a misdemeanor
     8     involving moral turpitude or of a felony. A plea of nolo
     9     contendere shall be considered a conviction.
    10         (2)  An action demonstrating untrustworthiness,
    11     incompetence, dishonesty, gross negligence, material
    12     misrepresentation, fraud or unethical conduct in any dealings
    13     subject to the provisions of this chapter or the rules and
    14     regulations promulgated by the board.
    15         (3)  Use of advertising or solicitation that is false,
    16     misleading or otherwise deemed unprofessional by the board.
    17     All advertisements, contracts, correspondence and other
    18     documents utilized by a home inspector shall prominently
    19     include the home inspector's name and registration number as
    20     a licensee according to this chapter.
    21         (4)  Habitual or excessive use of intoxicants or illegal
    22     drugs.
    23         (5)  Failure to supervise adequately and in accordance
    24     with rules governing direct supervision an unlicensed
    25     inspector performing home inspections under the supervision
    26     of the licensed home inspector.
    27         (6)  Any other reason deemed necessary by the board.
    28     Section 3.  Sections 7505(b) and (c) and 7506 of Title 68 are
    29  amended to read:
    30  § 7505.  Consumer remedies.
    20070S0359B1816                 - 18 -     

     1     * * *
     2     (b)  Prohibited acts.--Any of the following acts engaged in
     3  by a home inspector, an employer of a home inspector or another
     4  business or person that controls or has a financial interest in
     5  the employer of a home inspector shall be deemed to be an unfair
     6  or deceptive act or practice as defined by section 2(4)(i)
     7  through (xxi) of the Unfair Trade Practices and Consumer
     8  Protection Law:
     9         (1)  Performing or offering to perform for an additional
    10     fee any repairs to a structure with respect to which the home
    11     inspector, the employer of the home inspector or such other
    12     business or person has prepared a home inspection report
    13     within the preceding 12 months, except that this paragraph
    14     shall not apply to remediation for radon or wood destroying
    15     insects.
    16         (2)  Inspecting for a fee any property in which the home
    17     inspector, the employer of the home inspector or such other
    18     business or person has any financial interest or any interest
    19     in the transfer of the property, including, without
    20     limitation, engaging in a pay-to-play scheme in which the
    21     home inspector pays or receives a direct or indirect
    22     consideration for receiving leads toward providing home
    23     inspection services, or receipt of a commission as an agent,
    24     unless the financial interest or interest in the transfer of
    25     the property is disclosed in writing to the buyer before the
    26     home inspection is performed and the buyer signs an
    27     acknowledgment of receipt of the disclosure.
    28         (3)  Offering or delivering any commission, referral fee
    29     or kickback to the seller of the inspected property or to an
    30     agent for either or both of the seller and the buyer for the
    20070S0359B1816                 - 19 -     

     1     referral of any business to the home inspector, the employer
     2     of the home inspector or such other business or person.
     3         (4)  Accepting an engagement to perform a home inspection
     4     or to prepare a home inspection report in which the
     5     employment itself or the fee payable for the inspection is
     6     contingent upon the conclusions in the report, preestablished
     7     or prescribed findings or the closing of the transaction.
     8         (5)  Participation, by any real estate broker or agent,
     9     directly or indirectly, in a pay-to-play scheme in which the
    10     home inspector pays or receives a direct or indirect
    11     consideration for receiving leads toward providing home
    12     inspection services.
    13         (6)  When there is a home warranty company which is
    14     wholly or appreciably owned or affiliated with a real estate
    15     brokerage company, failing to disclose to the consumer such
    16     affiliation prior to contracting with the consumer for home
    17     inspection services.
    18     [(c)  Exception.--A home warranty company that is affiliated
    19  with or retains the home inspector does not violate subsection
    20  (b) if the home warranty company performs repairs pursuant to
    21  claims made under a home warranty contract.]
    22     * * *
    23  § 7506.  Required contractual provision regarding home
    24             inspections.
    25     Except as provided in this section, a provision of an
    26  agreement of transfer regarding the right of the buyer to obtain
    27  a home inspection report and providing for the consequences, if
    28  any, shall provide that the home inspection be performed by a
    29  licensee. [full member in good standing of a national home
    30  inspection association in accordance with the ethical standards
    20070S0359B1816                 - 20 -     

     1  and code of conduct or practice of that association, provided
     2  that a home inspection performed by a person who has not
     3  attained full membership in a national home inspection
     4  association satisfies the requirements of this section if the
     5  person is:
     6         (1)  licensed or registered as a professional engineer
     7     under the act of May 23, 1945 (P.L.913, No.367), known as the
     8     Engineer, Land Surveyor and Geologist Registration Law;
     9         (2)  licensed or registered under the act of December 14,
    10     1982 (P.L.1227, No.281), known as the Architects Licensure
    11     Law; or
    12         (3)  supervised by a full member in good standing of a
    13     national home inspection association who agrees to be
    14     responsible for the home inspection report by signing the
    15     report.]
    16  A home inspection performed by a person who has not attained
    17  licensure satisfies the requirements of this section if the
    18  person is directly supervised by a licensee who agrees to be
    19  responsible for the home inspection by signing the report.
    20     Section 4.  Section 7507 of Title 68 is amended by adding a
    21  subsection to read:
    22  § 7507.  Contracts with home inspectors.
    23     * * *
    24     (c)  Information brochure.--At the time of the signing of the
    25  first written contract to purchase, a real estate broker or
    26  salesperson shall distribute an informational brochure,
    27  published by the board, educating the consumers about the home
    28  inspection process and this chapter and providing the consumer
    29  with directions on how to find a licensed home inspector.
    30     Section 5.  Section 7509(a) of Title 68 is amended and the
    20070S0359B1816                 - 21 -     

     1  section is amended by adding a subsection to read:
     2  § 7509.  Liability insurance.
     3     (a)  [Required insurance.--A home inspector shall maintain
     4  insurance against errors and omissions in the performance of a
     5  home inspection and general liability, with coverages of not
     6  less than $100,000 per occurrence and $500,000 in the aggregate
     7  and with deductibles of not more than $2,500.] Professional
     8  liability coverage.--Every licensee who is engaged in home
     9  inspections shall secure, maintain and file with the Secretary
    10  of State proof of a certificate of liability coverage, which
    11  terms and conditions shall be determined by the Secretary of
    12  State in consultation with the board. Every proof of liability
    13  coverage required to be filed with the Secretary of State shall
    14  provide that cancellation or nonrenewal of the policy shall not
    15  be effective unless and until at least ten days' notice of
    16  intention to cancel or nonrenew has been received in writing by
    17  the Secretary of State.
    18     * * *
    19     (c)  All required insurance coverage shall:
    20         (1)  Be issued by an insurance company or other legal
    21     entity authorized to transact insurance business in this
    22     Commonwealth.
    23         (2)  Identify the Commonwealth as an additional insured.
    24         (3)  Provide that cancellation and nonrenewal of the
    25     insurance policy is not effective until the board receives no
    26     less than ten days' prior written notice of the expiration or
    27     earlier termination. Home inspectors shall direct their
    28     insurance company to send a notice of cancellation directly
    29     to the board.
    30         (4)  Contain any other terms and conditions established
    20070S0359B1816                 - 22 -     

     1     by the board.
     2     Section 6.  Section 7510 of Title 68 is amended to read:
     3  § 7510.  Reliance by buyer.
     4     (a)  Reliance.--A buyer shall be entitled to rely in good
     5  faith, without independent investigation, on a written
     6  representation by a home inspector that the home inspector is[:
     7         (1)  licensed or registered as a professional engineer
     8     under the act of May 23, 1945 (P.L.913, No.367), known as the
     9     Engineer, Land Surveyor and Geologist Registration Law;
    10         (2)  licensed or registered under the act of December 14,
    11     1982 (P.L.1227, No.281), known as the Architects Licensure
    12     Law; or
    13         (3)  a full member in good standing of a national home
    14     inspection association.]
    15  licensed to conduct home inspections in this Commonwealth.
    16     (b)  Display of license number.--The home inspector shall
    17  display his assigned license number on all promotional,
    18  marketing and advertising materials provided to the general
    19  public.
    20     (c)  License requirement.--No person shall conduct a home
    21  inspection or represent a qualification to conduct a home
    22  inspection for compensation unless that person is licensed as a
    23  home inspector under this chapter.
    24     (d)  Business entities.--A business entity may not:
    25         (1)  provide or offer to provide home inspection services
    26     unless each of the home inspectors employed by the business
    27     entity satisfies all the requirements of this section; or
    28         (2)  use, in connection with the name or signature of the
    29     business entity, the title "home inspector" to describe the
    30     business entity's services unless each home inspector
    20070S0359B1816                 - 23 -     

     1     employed by the business entity satisfies all the
     2     requirements of this chapter.
     3     Section 7.  Section 7511 of Title 68 is amended by adding a
     4  subsection to read:
     5  § 7511.  Penalties.
     6     * * *
     7     (c)  Unauthorized practice.--Any person subject to an
     8  administrative order issued by the board directing the cessation
     9  of any activity for which a license is required or suspending or
    10  revoking a license previously issued and who directly or
    11  indirectly:
    12         (1)  engages in the business of home inspection;
    13         (2)  holds himself out to the public as being able to
    14     engage in the business of home inspection without a license;
    15         (3)  engages in the business of home inspection after
    16     having his license revoked or suspended; or
    17         (4)  without a license to engage in the business of home
    18     inspection, directly or indirectly employs, permits or
    19     authorizes an unlicensed person to engage in the business of
    20     home inspection;
    21  commits a summary offense and on the first conviction thereof
    22  shall be sentenced to pay a fine of not more than $1,000, or,
    23  upon a second or subsequent conviction thereof, shall be
    24  sentenced to pay a fine of not more than $2,500. Each violation
    25  of this chapter shall be deemed a separate offense.
    26     Section 8.  For one year from the effective date of this
    27  section, an applicant who meets all of the requirements of 68
    28  Pa.C.S. Ch. 75 and this section may be licensed as a home
    29  inspector without having to complete a board-approved training
    30  program or course of study involving the performance of home
    20070S0359B1816                 - 24 -     

     1  inspections. The applicant must:
     2         (1)  Be at least 18 years of age.
     3         (2)  Have graduated from high school or earned a
     4     Pennsylvania or other state's general educational development
     5     diploma.
     6         (3)  Have passed a written examination to test competence
     7     in home inspection practice that was developed pursuant to
     8     accepted psychometric standards and was administered and
     9     proctored by an approved and recognized testing organization
    10     at a physical location to ensure both the security and the
    11     integrity of the examination.
    12         (4)  Have completed no less than 100 fee-paid inspections
    13     per year over the five years immediately preceding.
    14         (5)  Furnish evidence showing successful completion of
    15     not less than 16 hours of verifiable continuing education
    16     during the past year.
    17         (6)  Show proof of professional liability insurance
    18     consistent with 68 Pa.C.S. § 7509.
    19     Section 9.  This act shall take effect in 120 days.
    20     SECTION 1.  CHAPTER 75 HEADING AND SECTIONS 7501, 7502, 7503,  <--
    21  7504, 7505, 7506, 7507, 7508, 7509, 7510, 7511, 7512 AND 7513 OF
    22  TITLE 68 OF THE PENNSYLVANIA CONSOLIDATED STATUTES ARE REPEALED:
    23                            [CHAPTER 75
    24                          HOME INSPECTIONS
    25  § 7501.  SHORT TITLE OF CHAPTER.
    26     THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE HOME
    27  INSPECTION LAW.
    28  § 7502.  DEFINITIONS AND INDEX OF DEFINITIONS.
    29     (A)  DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES WHEN USED
    30  IN THIS CHAPTER SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    20070S0359B1816                 - 25 -     

     1  SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
     2     "HOME INSPECTION."  A NONINVASIVE VISUAL EXAMINATION OF SOME
     3  COMBINATION OF THE MECHANICAL, ELECTRICAL OR PLUMBING SYSTEMS OR
     4  THE STRUCTURAL AND ESSENTIAL COMPONENTS OF A RESIDENTIAL
     5  DWELLING DESIGNED TO IDENTIFY MATERIAL DEFECTS IN THOSE SYSTEMS
     6  AND COMPONENTS AND PERFORMED FOR A FEE IN CONNECTION WITH OR
     7  PREPARATION FOR A PROPOSED OR POSSIBLE RESIDENTIAL REAL ESTATE
     8  TRANSFER. THE TERM ALSO INCLUDES ANY CONSULTATION REGARDING THE
     9  PROPERTY THAT IS REPRESENTED TO BE A HOME INSPECTION OR THAT IS
    10  DESCRIBED BY ANY CONFUSINGLY SIMILAR TERM. THE TERM DOES NOT
    11  INCLUDE AN EXAMINATION OF A SINGLE SYSTEM OR COMPONENT OF A
    12  RESIDENTIAL DWELLING SUCH AS, FOR EXAMPLE, ITS ELECTRICAL OR
    13  PLUMBING SYSTEM OR ITS ROOF. THE TERM ALSO DOES NOT INCLUDE AN
    14  EXAMINATION THAT IS LIMITED TO INSPECTION FOR OR OF ONE OR MORE
    15  OF THE FOLLOWING: WOOD DESTROYING INSECTS, UNDERGROUND TANKS AND
    16  WELLS, SEPTIC SYSTEMS, SWIMMING POOLS AND SPAS, ALARM SYSTEMS,
    17  AIR AND WATER QUALITY, TENNIS COURTS AND PLAYGROUND EQUIPMENT,
    18  POLLUTANTS, TOXIC CHEMICALS AND ENVIRONMENTAL HAZARDS.
    19     "HOME INSPECTION REPORT."  A WRITTEN REPORT ON THE RESULTS OF
    20  A HOME INSPECTION.
    21     "HOME INSPECTOR."  AN INDIVIDUAL WHO PERFORMS A HOME
    22  INSPECTION.
    23     "NATIONAL HOME INSPECTORS ASSOCIATION."  ANY NATIONAL
    24  ASSOCIATION OF HOME INSPECTORS THAT:
    25         (1)  IS OPERATED ON A NOT-FOR-PROFIT BASIS AND IS NOT
    26     OPERATED AS A FRANCHISE.
    27         (2)  HAS MEMBERS IN MORE THAN TEN STATES.
    28         (3)  REQUIRES THAT A PERSON MAY NOT BECOME A FULL MEMBER
    29     UNLESS THE PERSON HAS PERFORMED OR PARTICIPATED IN MORE THAN
    30     100 HOME INSPECTIONS AND HAS PASSED A RECOGNIZED OR
    20070S0359B1816                 - 26 -     

     1     ACCREDITED EXAMINATION TESTING KNOWLEDGE OF THE PROPER
     2     PROCEDURES FOR CONDUCTING A HOME INSPECTION.
     3         (4)  REQUIRES THAT ITS MEMBERS COMPLY WITH A CODE OF
     4     CONDUCT AND ATTEND CONTINUING PROFESSIONAL EDUCATION CLASSES
     5     AS AN ONGOING CONDITION OF MEMBERSHIP.
     6     (B)  INDEX OF OTHER DEFINITIONS.--THE FOLLOWING IS A
     7  NONEXCLUSIVE LIST OF OTHER DEFINITIONS APPLYING TO THIS CHAPTER
     8  AND THE SECTIONS IN WHICH THEY APPEAR:
     9     "AGENT."  SECTION 7102 (RELATING TO DEFINITIONS).
    10     "AGREEMENT OF TRANSFER."  SECTION 7102 (RELATING TO
    11  DEFINITIONS).
    12     "BUYER."  SECTION 7102 (RELATING TO DEFINITIONS).
    13     "MATERIAL DEFECT."  SECTION 7102 (RELATING TO DEFINITIONS).
    14     "RESIDENTIAL REAL ESTATE TRANSFER."  SECTION 7103 (RELATING
    15  TO APPLICATION OF PART).
    16     "SELLER."  SECTION 7102 (RELATING TO DEFINITIONS).
    17  § 7503.  RELATIONSHIP TO OTHER LAWS.
    18     (A)  GENERAL RULE.--NOTHING IN THIS CHAPTER SHALL BE
    19  CONSTRUED TO ALLOW A HOME INSPECTOR WHO IS NOT REGISTERED OR
    20  LICENSED UNDER ONE OR MORE OF THE FOLLOWING LAWS TO PERFORM ANY
    21  ACTIVITY THAT WOULD CONSTITUTE THE PRACTICE OF THE PROFESSION
    22  REGULATED BY THAT LAW:
    23         (1)  THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS
    24     THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW.
    25         (2)  THE ACT OF JANUARY 24, 1966 (1965 P.L.1535, NO.537),
    26     KNOWN AS THE PENNSYLVANIA SEWAGE FACILITIES ACT.
    27         (3)  THE ACT OF MARCH 1, 1974 (P.L.90, NO.24), KNOWN AS
    28     THE PENNSYLVANIA PESTICIDE CONTROL ACT OF 1973.
    29         (4)  THE ACT OF DECEMBER 14, 1982 (P.L.1227, NO.281),
    30     KNOWN AS THE ARCHITECTS LICENSURE LAW.
    20070S0359B1816                 - 27 -     

     1         (5)  THE ACT OF JULY 9, 1987 (P.L.238, NO.43), KNOWN AS
     2     THE RADON CERTIFICATION ACT.
     3         (6)  THE ACT OF JULY 10, 1990 (P.L.404, NO.98), KNOWN AS
     4     THE REAL ESTATE APPRAISERS CERTIFICATION ACT.
     5     (B)  EXCLUSIONS.--THIS CHAPTER SHALL NOT:
     6         (1)  APPLY TO A PERSON REGISTERED OR LICENSED UNDER AN
     7     ACT REFERRED TO IN SUBSECTION (A) WHEN ACTING PURSUANT TO HIS
     8     REGISTRATION OR LICENSE.
     9         (2)  APPLY TO AN OFFICER OR EMPLOYEE OF A MUNICIPALITY OR
    10     LOCAL AUTHORITY WHEN ACTING IN HIS OFFICIAL CAPACITY.
    11         (3)  AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON
    12     LICENSED UNDER THE ACT OF FEBRUARY 19, 1980 (P.L.15, NO.9),
    13     KNOWN AS THE REAL ESTATE LICENSING AND REGISTRATION ACT, THAT
    14     ARE IMPOSED OR PROVIDED BY THAT ACT OR CHAPTER 73 (RELATING
    15     TO SELLER DISCLOSURES) WHEN THE PERSON IS ACTING PURSUANT TO
    16     HIS LICENSE.
    17         (4)  AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON
    18     CERTIFIED UNDER THE REAL ESTATE APPRAISERS CERTIFICATION ACT
    19     WHEN THE PERSON IS ACTING PURSUANT TO THE PERSON'S LICENSE.
    20  § 7504.  DUTY OF CARE OF HOME INSPECTORS.
    21     (A)  GENERAL RULE.--IT IS THE DUTY OF A HOME INSPECTOR TO
    22  CONDUCT A HOME INSPECTION WITH THE DEGREE OF CARE THAT A
    23  REASONABLY PRUDENT HOME INSPECTOR WOULD EXERCISE.
    24     (B)  STANDARD.--IN ASCERTAINING THE DEGREE OF CARE THAT WOULD
    25  BE EXERCISED BY A REASONABLY PRUDENT HOME INSPECTOR, THE COURT
    26  SHALL CONSIDER THE STANDARDS OF PRACTICE AND CODES OF ETHICS OF
    27  NATIONAL HOME INSPECTOR ASSOCIATIONS.
    28  § 7505.  CONSUMER REMEDIES.
    29     (A)  GENERAL RULE.--THE PERFORMANCE OF A HOME INSPECTION IS A
    30  SERVICE THAT IS SUBJECT TO THE ACT OF DECEMBER 17, 1968
    20070S0359B1816                 - 28 -     

     1  (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND
     2  CONSUMER PROTECTION LAW.
     3     (B)  PROHIBITED ACTS.--ANY OF THE FOLLOWING ACTS ENGAGED IN
     4  BY A HOME INSPECTOR, AN EMPLOYER OF A HOME INSPECTOR OR ANOTHER
     5  BUSINESS OR PERSON THAT CONTROLS OR HAS A FINANCIAL INTEREST IN
     6  THE EMPLOYER OF A HOME INSPECTOR SHALL BE DEEMED TO BE AN UNFAIR
     7  OR DECEPTIVE ACT OR PRACTICE AS DEFINED BY SECTION 2(4)(I)
     8  THROUGH (XXI) OF THE UNFAIR TRADE PRACTICES AND CONSUMER
     9  PROTECTION LAW:
    10         (1)  PERFORMING OR OFFERING TO PERFORM FOR AN ADDITIONAL
    11     FEE ANY REPAIRS TO A STRUCTURE WITH RESPECT TO WHICH THE HOME
    12     INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER
    13     BUSINESS OR PERSON HAS PREPARED A HOME INSPECTION REPORT
    14     WITHIN THE PRECEDING 12 MONTHS, EXCEPT THAT THIS PARAGRAPH
    15     SHALL NOT APPLY TO REMEDIATION FOR RADON OR WOOD DESTROYING
    16     INSECTS.
    17         (2)  INSPECTING FOR A FEE ANY PROPERTY IN WHICH THE HOME
    18     INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER
    19     BUSINESS OR PERSON HAS ANY FINANCIAL INTEREST OR ANY INTEREST
    20     IN THE TRANSFER OF THE PROPERTY, INCLUDING WITHOUT LIMITATION
    21     RECEIPT OF A COMMISSION AS AN AGENT, UNLESS THE FINANCIAL
    22     INTEREST OR INTEREST IN THE TRANSFER OF THE PROPERTY IS
    23     DISCLOSED IN WRITING TO THE BUYER BEFORE THE HOME INSPECTION
    24     IS PERFORMED AND THE BUYER SIGNS AN ACKNOWLEDGMENT OF RECEIPT
    25     OF THE DISCLOSURE.
    26         (3)  OFFERING OR DELIVERING ANY COMMISSION, REFERRAL FEE
    27     OR KICKBACK TO THE SELLER OF THE INSPECTED PROPERTY OR TO AN
    28     AGENT FOR EITHER OR BOTH OF THE SELLER AND THE BUYER FOR THE
    29     REFERRAL OF ANY BUSINESS TO THE HOME INSPECTOR, THE EMPLOYER
    30     OF THE HOME INSPECTOR OR SUCH OTHER BUSINESS OR PERSON.
    20070S0359B1816                 - 29 -     

     1         (4)  ACCEPTING AN ENGAGEMENT TO PERFORM A HOME INSPECTION
     2     OR TO PREPARE A HOME INSPECTION REPORT IN WHICH THE
     3     EMPLOYMENT ITSELF OR THE FEE PAYABLE FOR THE INSPECTION IS
     4     CONTINGENT UPON THE CONCLUSIONS IN THE REPORT, PREESTABLISHED
     5     OR PRESCRIBED FINDINGS OR THE CLOSING OF THE TRANSACTION.
     6     (C)  EXCEPTION.--A HOME WARRANTY COMPANY THAT IS AFFILIATED
     7  WITH OR RETAINS THE HOME INSPECTOR DOES NOT VIOLATE SUBSECTION
     8  (B) IF THE HOME WARRANTY COMPANY PERFORMS REPAIRS PURSUANT TO
     9  CLAIMS MADE UNDER A HOME WARRANTY CONTRACT.
    10     (D)  REMEDIES.--IN ADDITION TO ANY OTHER REMEDIES AVAILABLE
    11  UNDER THE UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW OR
    12  OTHER APPLICABLE PROVISION OF LAW, THE OWNER OF A PROPERTY ON
    13  WHICH REPAIRS ARE PERFORMED IN VIOLATION OF SUBSECTION (B)(1)
    14  SHALL BE ENTITLED TO A FULL REFUND OF ANY MONEYS PAID FOR THOSE
    15  REPAIRS, AND ANY PROMISSORY NOTE OR OTHER OBLIGATION TO PAY
    16  GIVEN TO THE PERSON PERFORMING THOSE REPAIRS SHALL BE VOID.
    17  § 7506.  REQUIRED CONTRACTUAL PROVISION REGARDING HOME
    18             INSPECTIONS.
    19     EXCEPT AS PROVIDED IN THIS SECTION, A PROVISION OF AN
    20  AGREEMENT OF TRANSFER REGARDING THE RIGHT OF THE BUYER TO OBTAIN
    21  A HOME INSPECTION REPORT AND PROVIDING FOR THE CONSEQUENCES, IF
    22  ANY, SHALL PROVIDE THAT THE HOME INSPECTION BE PERFORMED BY A
    23  FULL MEMBER IN GOOD STANDING OF A NATIONAL HOME INSPECTION
    24  ASSOCIATION IN ACCORDANCE WITH THE ETHICAL STANDARDS AND CODE OF
    25  CONDUCT OR PRACTICE OF THAT ASSOCIATION, PROVIDED THAT A HOME
    26  INSPECTION PERFORMED BY A PERSON WHO HAS NOT ATTAINED FULL
    27  MEMBERSHIP IN A NATIONAL HOME INSPECTION ASSOCIATION SATISFIES
    28  THE REQUIREMENTS OF THIS SECTION IF THE PERSON IS:
    29         (1)  LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER
    30     UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE
    20070S0359B1816                 - 30 -     

     1     ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW;
     2         (2)  LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14,
     3     1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE
     4     LAW; OR
     5         (3)  SUPERVISED BY A FULL MEMBER IN GOOD STANDING OF A
     6     NATIONAL HOME INSPECTION ASSOCIATION WHO AGREES TO BE
     7     RESPONSIBLE FOR THE HOME INSPECTION REPORT BY SIGNING THE
     8     REPORT.
     9  § 7507.  CONTRACTS WITH HOME INSPECTORS.
    10     (A)  PROHIBITED PROVISIONS.--THE FOLLOWING TYPES OF
    11  PROVISIONS IN A CONTRACT WITH A HOME INSPECTOR FOR THE
    12  PERFORMANCE OF A HOME INSPECTION ARE CONTRARY TO PUBLIC POLICY
    13  AND SHALL BE VOID:
    14         (1)  A LIMITATION ON THE LIABILITY OF THE HOME INSPECTOR
    15     FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT;
    16         (2)  A WAIVER OR MODIFICATION OF ANY PROVISION OF THIS
    17     CHAPTER.
    18     (B)  SCOPE OF INSPECTION.--THE SCOPE OF A HOME INSPECTION,
    19  THE SERVICES TO BE PERFORMED AND THE SYSTEMS AND CONDITIONS TO
    20  BE INSPECTED OR EXCLUDED FROM INSPECTION MAY BE DEFINED BY A
    21  CONTRACT BETWEEN THE HOME INSPECTOR AND THE CLIENT.
    22  § 7508.  HOME INSPECTION REPORTS.
    23     (A)  REQUIRED CONTENTS.--A HOME INSPECTION REPORT MUST BE IN
    24  WRITING AND SHALL INCLUDE:
    25         (1)  A DESCRIPTION OF THE SCOPE OF THE INSPECTION,
    26     INCLUDING WITHOUT LIMITATION AN IDENTIFICATION OF THE
    27     STRUCTURAL ELEMENTS, SYSTEMS AND SUBSYSTEMS COVERED BY THE
    28     REPORT.
    29         (2)  A DESCRIPTION OF ANY MATERIAL DEFECTS NOTED DURING
    30     THE INSPECTION, ALONG WITH ANY RECOMMENDATION THAT CERTAIN
    20070S0359B1816                 - 31 -     

     1     EXPERTS BE RETAINED TO DETERMINE THE EXTENT OF THE DEFECTS
     2     AND ANY CORRECTIVE ACTION THAT SHOULD BE TAKEN. A "MATERIAL
     3     DEFECT" AS DEFINED IN SECTION 7102 (RELATING TO DEFINITIONS)
     4     THAT POSES AN UNREASONABLE RISK TO PEOPLE ON THE PROPERTY
     5     SHALL BE CONSPICUOUSLY IDENTIFIED AS SUCH.
     6         (3)  THE FOLLOWING STATEMENTS, SET FORTH CONSPICUOUSLY:
     7             "A HOME INSPECTION IS INTENDED TO ASSIST IN
     8         EVALUATION OF THE OVERALL CONDITION OF THE DWELLING. THE
     9         INSPECTION IS BASED ON OBSERVATION OF THE VISIBLE AND
    10         APPARENT CONDITION OF THE STRUCTURE AND ITS COMPONENTS ON
    11         THE DATE OF INSPECTION."
    12             "THE RESULTS OF THIS HOME INSPECTION ARE NOT INTENDED
    13         TO MAKE ANY REPRESENTATION REGARDING THE PRESENCE OR
    14         ABSENCE OF LATENT OR CONCEALED DEFECTS THAT ARE NOT
    15         REASONABLY ASCERTAINABLE IN A COMPETENTLY PERFORMED HOME
    16         INSPECTION. NO WARRANTY OR GUARANTY IS EXPRESSED OR
    17         IMPLIED."
    18             "IF THE PERSON CONDUCTING YOUR HOME INSPECTION IS NOT
    19         A LICENSED STRUCTURAL ENGINEER OR OTHER PROFESSIONAL
    20         WHOSE LICENSE AUTHORIZES THE RENDERING OF AN OPINION AS
    21         TO THE STRUCTURAL INTEGRITY OF A BUILDING OR ITS OTHER
    22         COMPONENT PARTS, YOU MAY BE ADVISED TO SEEK A
    23         PROFESSIONAL OPINION AS TO ANY DEFECTS OR CONCERNS
    24         MENTIONED IN THE REPORT."
    25             "THIS HOME INSPECTION REPORT IS NOT TO BE CONSTRUED
    26         AS AN APPRAISAL AND MAY NOT BE USED AS SUCH FOR ANY
    27         PURPOSE."
    28     (B)  CONFIDENTIALITY.--EXCEPT AS OTHERWISE REQUIRED BY LAW, A
    29  HOME INSPECTOR SHALL NOT DELIVER A HOME INSPECTION REPORT TO ANY
    30  PERSON OTHER THAN THE CLIENT OF THE HOME INSPECTOR WITHOUT THE
    20070S0359B1816                 - 32 -     

     1  CLIENT'S CONSENT. THE SELLER SHALL HAVE THE RIGHT, UPON REQUEST,
     2  TO RECEIVE WITHOUT CHARGE A COPY OF A HOME INSPECTION REPORT
     3  FROM THE PERSON FOR WHOM IT WAS PREPARED.
     4     (C)  REPAIR ESTIMATES PROHIBITED.--A HOME INSPECTOR SHALL NOT
     5  EXPRESS EITHER ORALLY OR IN WRITING AN ESTIMATE OF THE COST TO
     6  REPAIR ANY DEFECT FOUND DURING A HOME INSPECTION, EXCEPT THAT
     7  SUCH AN ESTIMATE MAY BE INCLUDED IN A HOME INSPECTION REPORT IF:
     8         (1)  THE REPORT IDENTIFIES THE SOURCE OF THE ESTIMATE;
     9         (2)  THE ESTIMATE IS STATED AS A RANGE OF COSTS; AND
    10         (3)  THE REPORT STATES THAT THE PARTIES SHOULD CONSIDER
    11     OBTAINING AN ESTIMATE FROM A CONTRACTOR WHO PERFORMS THE TYPE
    12     OF REPAIR INVOLVED.
    13  § 7509.  LIABILITY INSURANCE.
    14     (A)  REQUIRED INSURANCE.--A HOME INSPECTOR SHALL MAINTAIN
    15  INSURANCE AGAINST ERRORS AND OMISSIONS IN THE PERFORMANCE OF A
    16  HOME INSPECTION AND GENERAL LIABILITY, WITH COVERAGES OF NOT
    17  LESS THAN $100,000 PER OCCURRENCE AND $500,000 IN THE AGGREGATE
    18  AND WITH DEDUCTIBLES OF NOT MORE THAN $2,500.
    19     (B)  TERM.--
    20         (1)  EXCEPT AS SET FORTH IN PARAGRAPH (2), A HOME
    21     INSPECTOR SHALL MAINTAIN INSURANCE UNDER SUBSECTION (A) FOR
    22     AT LEAST ONE YEAR AFTER THE LATEST HOME INSPECTION REPORT THE
    23     HOME INSPECTOR DELIVERS.
    24         (2)  PARAGRAPH (1) SHALL NOT APPLY TO A HOME INSPECTION
    25     REPORT THAT WAS DELIVERED PRIOR TO THE EFFECTIVE DATE OF THIS
    26     SECTION.
    27  § 7510.  RELIANCE BY BUYER.
    28     A BUYER SHALL BE ENTITLED TO RELY IN GOOD FAITH, WITHOUT
    29  INDEPENDENT INVESTIGATION, ON A WRITTEN REPRESENTATION BY A HOME
    30  INSPECTOR THAT THE HOME INSPECTOR IS:
    20070S0359B1816                 - 33 -     

     1         (1)  LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER
     2     UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE
     3     ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW;
     4         (2)  LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14,
     5     1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE
     6     LAW; OR
     7         (3)  A FULL MEMBER IN GOOD STANDING OF A NATIONAL HOME
     8     INSPECTION ASSOCIATION.
     9  § 7511.  PENALTIES.
    10     (A)  CRIMINAL PENALTY.--A PERSON WHO VIOLATES SECTION 7509
    11  (RELATING TO LIABILITY INSURANCE) OR WHO PROVIDES A FALSE
    12  REPRESENTATION UNDER SECTION 7510 (RELATING TO RELIANCE BY
    13  BUYER) COMMITS A SUMMARY OFFENSE AND, UPON CONVICTION THEREOF
    14  FOR A FIRST OFFENSE, SHALL BE SENTENCED TO PAY A FINE NOT
    15  EXCEEDING $500 OR TO IMPRISONMENT FOR NOT MORE THAN THREE
    16  MONTHS, OR BOTH, AND FOR A SECOND OR SUBSEQUENT OFFENSE COMMITS
    17  A MISDEMEANOR OF THE THIRD DEGREE AND, UPON CONVICTION THEREOF,
    18  SHALL BE SENTENCED TO PAY A FINE OF NOT LESS THAN $2,000 BUT NOT
    19  MORE THAN $5,000 OR TO IMPRISONMENT FOR NOT LESS THAN ONE YEAR
    20  BUT NOT MORE THAN TWO YEARS, OR BOTH.
    21     (B)  FINE.--A PERSON WHO VIOLATES ANY PROVISION OF SECTION
    22  7508 (RELATING TO HOME INSPECTION REPORTS) SHALL, UPON
    23  CONVICTION IN A SUMMARY PROCEEDING BEFORE A MAGISTERIAL DISTRICT
    24  JUDGE, BE SENTENCED TO PAY A FINE NOT EXCEEDING $500.
    25  § 7512.  STATUTE OF LIMITATIONS.
    26     AN ACTION TO RECOVER DAMAGES ARISING FROM A HOME INSPECTION
    27  REPORT MUST BE COMMENCED WITHIN ONE YEAR AFTER THE DATE THE
    28  REPORT IS DELIVERED.
    29  § 7513.  ENGINEERS AND ARCHITECTS.
    30     NOTWITHSTANDING SECTION 7503(B)(1) (RELATING TO RELATIONSHIP
    20070S0359B1816                 - 34 -     

     1  TO OTHER LAWS), THE FOLLOWING SECTIONS: 7505 (RELATING TO
     2  CONSUMER REMEDIES), 7507(A)(1) AND (B) (RELATING TO CONTRACTS
     3  WITH HOME INSPECTORS), 7508 (RELATING TO HOME INSPECTION
     4  REPORTS) AND 7509 (RELATING TO LIABILITY INSURANCE) SHALL APPLY
     5  TO A PERSON LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER
     6  UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE
     7  ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW, OR A
     8  PERSON LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14, 1982
     9  (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE LAW, WHEN
    10  PERFORMING A HOME INSPECTION.]
    11     SECTION 2.  TITLE 68 IS AMENDED BY ADDING A CHAPTER TO READ:
    12                            CHAPTER 75A
    13                          HOME INSPECTIONS
    14  SEC.
    15  75A01.  SCOPE.
    16  75A02.  DEFINITIONS.
    17  75A03.  PENNSYLVANIA BOARD OF HOME INSPECTORS.
    18  75A04.  POWERS AND DUTIES OF BOARD.
    19  75A05.  LICENSURE.
    20  75A06.  QUALIFICATIONS.
    21  75A07.  (RESERVED).
    22  75A08.  HOME INSPECTION REPORTS.
    23  75A09.  LIABILITY INSURANCE.
    24  75A10.  HOME INSPECTORS IN OTHER STATES, TERRITORIES OR
    25             DOMINION OF CANADA.
    26  75A11.  DURATION OF LICENSE.
    27  75A12.  REPORTING OF MULTIPLE LICENSURE.
    28  75A13.  RELATIONSHIP TO OTHER LAWS.
    29  75A14.  UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW
    30         REMEDIES.
    20070S0359B1816                 - 35 -     

     1  75A15.  CONTRACTS WITH HOME INSPECTORS.
     2  75A16.  FEES, FINES AND CIVIL PENALTIES.
     3  75A17.  VIOLATION.
     4  75A18.  REFUSAL, SUSPENSION OR REVOCATION OF LICENSE.
     5  75A19.  SUSPENSIONS AND REVOCATIONS.
     6  75A20.  INTERNS.
     7  75A21.  REINSTATEMENT OF LICENSE.
     8  75A22.  SURRENDER OF SUSPENDED OR REVOKED LICENSE.
     9  75A23.  INJUNCTION.
    10  75A24.  SUBPOENAS AND OATHS.
    11  75A25.  STATUTE OF LIMITATIONS.
    12  75A26.  ENGINEERS AND ARCHITECTS.
    13  § 75A01.  SCOPE.
    14     THIS CHAPTER RELATES TO HOME INSPECTIONS.
    15  § 75A02.  DEFINITIONS.
    16     (A)  DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES WHEN USED
    17  IN THIS CHAPTER SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS
    18  SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:
    19     "AGENT."  AS DEFINED UNDER SECTION 7102 (RELATING TO
    20  DEFINITIONS).
    21     "AGREEMENT OF TRANSFER."  AS DEFINED UNDER SECTION 7102
    22  (RELATING TO DEFINITIONS).
    23     "APPLICANT."  AN INDIVIDUAL WHO APPLIES FOR A LICENSE AS A
    24  HOME INSPECTOR.
    25     "BOARD."  THE PENNSYLVANIA BOARD OF HOME INSPECTORS.
    26     "BUREAU."  THE BUREAU OF PROFESSIONAL AND OCCUPATIONAL
    27  AFFAIRS IN THE DEPARTMENT OF STATE.
    28     "BUYER."  AS DEFINED UNDER SECTION 7102 (RELATING TO
    29  DEFINITIONS).
    30     "CLIENT."  AN INDIVIDUAL WHO CONTRACTS IN WRITING WITH A
    20070S0359B1816                 - 36 -     

     1  LICENSEE TO OBTAIN A HOME INSPECTION AND SUBSEQUENT WRITTEN HOME
     2  INSPECTION REPORT.
     3     "COMMISSIONER."  THE COMMISSIONER OF THE BUREAU OF
     4  PROFESSIONAL AND OCCUPATIONAL AFFAIRS IN THE DEPARTMENT OF
     5  STATE.
     6     "DEPARTMENT."  THE DEPARTMENT OF STATE OF THE COMMONWEALTH.
     7     "DIRECT SUPERVISION."  A HOME INSPECTION PERFORMED BY A HOME
     8  INSPECTOR WHO IS NOT A LICENSEE IN THE PRESENCE OF AND UNDER THE
     9  TUTELAGE OF A SUPERVISING LICENSEE.
    10     "HOME INSPECTION."  A NONINVASIVE VISUAL EXAMINATION OF SOME
    11  COMBINATION OF THE MECHANICAL, ELECTRICAL OR PLUMBING SYSTEMS OR
    12  THE STRUCTURAL AND ESSENTIAL COMPONENTS OF A RESIDENTIAL
    13  DWELLING DESIGNED TO IDENTIFY MATERIAL DEFECTS IN THOSE SYSTEMS
    14  AND COMPONENTS AND PERFORMED FOR A FEE IN CONNECTION WITH OR
    15  PREPARATION FOR A PROPOSED OR POSSIBLE RESIDENTIAL REAL ESTATE
    16  TRANSFER. THE TERM INCLUDES ANY CONSULTATION REGARDING THE
    17  PROPERTY THAT IS REPRESENTED TO BE A HOME INSPECTION OR THAT IS
    18  DESCRIBED BY ANY SIMILAR TERM. THE TERM DOES NOT INCLUDE ANY OF
    19  THE FOLLOWING:
    20         (1)  AN EXAMINATION OF A SINGLE SYSTEM OR COMPONENT OF A
    21     RESIDENTIAL DWELLING SUCH AS ITS ELECTRICAL OR PLUMBING
    22     SYSTEM OR ITS ROOF.
    23         (2)  AN EXAMINATION THAT IS LIMITED TO INSPECTION FOR OR
    24     OF ONE OR MORE OF THE FOLLOWING:
    25             (I)  WOOD-DESTROYING INSECTS.
    26             (II)  UNDERGROUND TANKS AND WELLS.
    27             (III)  SEPTIC SYSTEMS.
    28             (IV)  SWIMMING POOLS AND SPAS.
    29             (V)  ALARM SYSTEMS.
    30             (VI)  AIR AND WATER QUALITY.
    20070S0359B1816                 - 37 -     

     1             (VII)  TENNIS COURTS AND PLAYGROUND EQUIPMENT.
     2             (VIII)  POLLUTANTS.
     3             (IX)  TOXIC CHEMICALS.
     4             (X)  ENVIRONMENTAL HAZARDS.
     5             (XI)  MOLD.
     6             (XII)  BIOLOGICAL ORGANISMS.
     7     "HOME INSPECTION REPORT."  A REPORT AS REQUIRED UNDER SECTION
     8  75A08 (RELATING TO HOME INSPECTION REPORTS).
     9     "HOME INSPECTOR."  AN INDIVIDUAL WHO PERFORMS A HOME
    10  INSPECTION AND IS LICENSED UNDER THIS CHAPTER.
    11     "MATERIAL DEFECT."  AS DEFINED UNDER SECTION 7102 (RELATING
    12  TO DEFINITIONS).
    13     "RESIDENTIAL DWELLING."  A STRUCTURE CONSISTING OF AT LEAST
    14  ONE BUT NOT MORE THAN FOUR UNITS, EACH DESIGNED FOR OCCUPANCY BY
    15  A SINGLE FAMILY, WHETHER THE UNIT OR UNITS ARE OCCUPIED OR
    16  UNOCCUPIED.
    17     "RESIDENTIAL REAL ESTATE TRANSFER."  AS DEFINED UNDER SECTION
    18  7103 (RELATING TO APPLICATION OF PART).
    19     "SELLER."  AS DEFINED UNDER SECTION 7102 (RELATING TO
    20  DEFINITIONS).
    21     "WOOD DESTROYING INSECT."  THE TERM INCLUDES TERMITES,
    22  CARPENTER ANTS, CARPENTER BEES AND REINFESTING WOOD BORING
    23  BEETLES.
    24  § 75A03.  PENNSYLVANIA BOARD OF HOME INSPECTORS.
    25     (A)  ESTABLISHMENT.--THERE IS ESTABLISHED THE PENNSYLVANIA
    26  BOARD OF HOME INSPECTORS WITHIN THE BUREAU.
    27     (B)  COMPOSITION.--THE BOARD SHALL CONSIST OF THE FOLLOWING
    28  MEMBERS:
    29         (1)  THE COMMISSIONER OR A DESIGNEE.
    30         (2)  THE FOLLOWING MEMBERS, WHO SHALL BE CITIZENS OF THE
    20070S0359B1816                 - 38 -     

     1     UNITED STATES AND RESIDENTS OF THIS COMMONWEALTH, APPOINTED
     2     BY THE GOVERNOR WITH THE ADVICE AND CONSENT OF THE SENATE:
     3             (I)  TWO MEMBERS REPRESENTING THE PUBLIC AT LARGE.
     4             (II)  FIVE PROFESSIONAL MEMBERS. PROFESSIONAL MEMBERS
     5         SHALL HAVE COMPLETED NO LESS THAN 100 FEE-PAID HOME
     6         INSPECTIONS IN THIS COMMONWEALTH OVER THE FIVE YEARS
     7         IMMEDIATELY PRECEDING APPOINTMENT TO THE BOARD. EXCEPT AS
     8         SET FORTH UNDER SUBSECTION (F), PROFESSIONAL MEMBERS
     9         SHALL BE LICENSED UNDER THIS CHAPTER AS HOME INSPECTORS.
    10             (III)  THE ATTORNEY GENERAL OR A DESIGNEE.
    11     (C)  MEETING.--THE BOARD SHALL MEET WITHIN 30 DAYS AFTER THE
    12  APPOINTMENT OF THE INITIAL MEMBERS AND SHALL DO ALL OF THE
    13  FOLLOWING:
    14         (1)  ESTABLISH PROCEDURES FOR THE BOARD'S OPERATION AND
    15     ADMINISTRATION OF THIS CHAPTER.
    16         (2)  DEVELOP APPLICATION FORMS FOR LICENSURE.
    17         (3)  CIRCULATE APPLICATION FORMS.
    18         (4)  CREATE PROGRAM GUIDELINES TO EDUCATE THE PUBLIC
    19     REGARDING LICENSURE REQUIREMENTS UNDER THIS CHAPTER.
    20     (D)  TERM OF MEMBERSHIP.--EXCEPT AS PROVIDED UNDER SUBSECTION
    21  (E), PROFESSIONAL AND PUBLIC MEMBERS SHALL SERVE A TERM OF FOUR
    22  YEARS OR UNTIL A SUCCESSOR HAS BEEN APPOINTED AND QUALIFIED BUT
    23  IN NO EVENT LONGER THAN SIX MONTHS BEYOND THE FOUR-YEAR PERIOD.
    24  IN THE EVENT THAT A MEMBER DIES OR RESIGNS OR OTHERWISE IS
    25  DISQUALIFIED DURING THE TERM OF OFFICE, A SUCCESSOR SHALL BE
    26  APPOINTED IN THE SAME WAY AND WITH THE SAME QUALIFICATIONS AND
    27  SHALL HOLD OFFICE FOR AN UNEXPIRED TERM. A PROFESSIONAL OR
    28  PUBLIC MEMBER SHALL NOT BE ELIGIBLE TO HOLD MORE THAN TWO
    29  CONSECUTIVE TERMS.
    30     (E)  INITIAL APPOINTMENTS.--FOR PROFESSIONAL AND PUBLIC
    20070S0359B1816                 - 39 -     

     1  MEMBERS FIRST APPOINTED TO THE BOARD UNDER THIS CHAPTER, THE
     2  TERM OF OFFICE SHALL BE AS FOLLOWS:
     3         (1)  THREE MEMBERS SHALL SERVE FOR A TERM OF FOUR YEARS.
     4         (2)  TWO MEMBERS SHALL SERVE FOR A TERM OF THREE YEARS.
     5         (3)  ONE MEMBER SHALL SERVE FOR A TERM OF TWO YEARS.
     6     (F)  PROFESSIONAL MEMBERS AND FIRST APPOINTMENTS.--
     7         (1)  A PROFESSIONAL MEMBER INITIALLY APPOINTED TO THE
     8     BOARD UNDER THIS CHAPTER NEED NOT BE LICENSED AT THE TIME OF
     9     APPOINTMENT BUT AT THE TIME OF APPOINTMENT MUST HAVE
    10     SATISFIED ELIGIBILITY REQUIREMENTS FOR LICENSURE. ALL
    11     PROFESSIONAL MEMBERS SUBSEQUENTLY APPOINTED SHALL POSSESS THE
    12     REQUIRED LICENSE.
    13         (2)  A BOARD MEMBER THAT BECOMES A HOME INSPECTOR SHALL
    14     OBTAIN THE REQUISITE LICENSE WITHIN SIX MONTHS OF THE DATE
    15     THE INITIAL LICENSES ARE ISSUED. IF A BOARD MEMBER DOES NOT
    16     OBTAIN THE REQUISITE LICENSE WITHIN SIX MONTHS OF THE
    17     EFFECTIVE DATE OF THIS SECTION, THE BOARD MEMBER SHALL BE
    18     CONSIDERED TO HAVE RESIGNED FROM THE BOARD ON THAT DATE.
    19     (G)  QUORUM.--A MAJORITY OF THE MEMBERS OF THE BOARD SHALL
    20  CONSTITUTE A QUORUM. A MEMBER MAY NOT BE COUNTED AS PART OF A
    21  QUORUM OR VOTE ON ANY ISSUE UNLESS THE MEMBER IS PHYSICALLY IN
    22  ATTENDANCE AT THE MEETING.
    23     (H)  CHAIRPERSON.--THE BOARD SHALL SELECT ANNUALLY A
    24  CHAIRPERSON FROM AMONG ITS MEMBERS.
    25     (I)  EXPENSES.--WITH THE EXCEPTION OF THE COMMISSIONER AND
    26  THE ATTORNEY GENERAL, EACH MEMBER OF THE BOARD SHALL RECEIVE $60
    27  PER DIEM WHEN ACTUALLY ATTENDING TO THE WORK OF THE BOARD. A
    28  MEMBER SHALL ALSO RECEIVE THE AMOUNT OF REASONABLE TRAVELING,
    29  HOTEL AND OTHER NECESSARY EXPENSES INCURRED IN THE PERFORMANCE
    30  OF THE MEMBER'S DUTIES IN ACCORDANCE WITH COMMONWEALTH
    20070S0359B1816                 - 40 -     

     1  REGULATIONS.
     2     (J)  FORFEITURE.--A PROFESSIONAL OR PUBLIC MEMBER WHO FAILS
     3  TO ATTEND THREE MEETINGS IN 18 MONTHS SHALL FORFEIT THE MEMBER'S
     4  SEAT UNLESS THE COMMISSIONER, UPON WRITTEN REQUEST FROM THE
     5  MEMBER, FINDS THAT THE MEMBER SHOULD BE EXCUSED FROM A MEETING
     6  BECAUSE OF ILLNESS OR THE DEATH OF A FAMILY MEMBER.
     7     (K)  TRAINING SEMINARS.--A PUBLIC MEMBER WHO FAILS TO ATTEND
     8  TWO CONSECUTIVE STATUTORILY MANDATED TRAINING SEMINARS IN
     9  ACCORDANCE WITH SECTION 813(E) OF THE ACT OF APRIL 9, 1929
    10  (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929,
    11  SHALL FORFEIT THE MEMBER'S SEAT UNLESS THE COMMISSIONER, UPON
    12  WRITTEN REQUEST FROM THE PUBLIC MEMBER, FINDS THAT THE PUBLIC
    13  MEMBER SHOULD BE EXCUSED FROM A MEETING BECAUSE OF ILLNESS OR
    14  THE DEATH OF A FAMILY MEMBER.
    15     (L)  FREQUENCY OF MEETINGS.--THE BOARD SHALL MEET AT LEAST
    16  FOUR TIMES PER YEAR IN THE CITY OF HARRISBURG AND AT ADDITIONAL
    17  TIMES AS MAY BE NECESSARY TO CONDUCT THE BUSINESS OF THE BOARD.
    18  § 75A04.  POWERS AND DUTIES OF BOARD.
    19     THE BOARD SHALL HAVE THE FOLLOWING POWERS AND DUTIES:
    20         (1)  TO PROVIDE FOR AND REGULATE THE LICENSING OF
    21     INDIVIDUALS, INCLUDING INTERNS, ENGAGED IN HOME INSPECTION.
    22         (2)  TO ISSUE LICENSES, RENEW LICENSES, REINSTATE
    23     LICENSES, REFUSE TO RENEW, SUSPEND AND REVOKE LICENSES AS
    24     PROVIDED UNDER THIS CHAPTER.
    25         (3)  TO ADMINISTER AND ENFORCE THE PROVISIONS OF THIS
    26     CHAPTER.
    27         (4)  TO REVIEW APPLICATIONS FOR LICENSURE AND TO
    28     DETERMINE THE ELIGIBILITY OF AN INDIVIDUAL APPLYING FOR
    29     LICENSURE.
    30         (5)  TO PROMOTE EDUCATIONAL INITIATIVES TO PROTECT
    20070S0359B1816                 - 41 -     

     1     CONSUMERS WHO CONTRACT FOR HOME INSPECTION SERVICES.
     2         (6)  TO PROMULGATE AND ENFORCE REGULATIONS, NOT
     3     INCONSISTENT WITH THIS CHAPTER, AS NECESSARY ONLY TO CARRY
     4     OUT THE PROVISIONS OF THIS CHAPTER. THIS PARAGRAPH INCLUDES
     5     THE SETTING OF FEES AND THE ADOPTION OF STANDARDS FOR
     6     CERTIFICATION OF HOME INSPECTORS. REGULATIONS SHALL BE
     7     ADOPTED IN CONFORMITY WITH THE PROVISIONS OF THE ACT OF JULY
     8     31, 1968 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH
     9     DOCUMENTS LAW AND THE ACT OF JUNE 25, 1982 (P.L.633, NO.181),
    10     KNOWN AS THE REGULATORY REVIEW ACT.
    11         (7)  TO KEEP MINUTES AND RECORDS OF ALL PROCEEDINGS.
    12         (8)  TO SUBMIT ANNUALLY TO THE DEPARTMENT AN ESTIMATE OF
    13     FINANCIAL REQUIREMENTS OF THE BOARD FOR ITS ADMINISTRATIVE,
    14     LEGAL AND OTHER EXPENSES.
    15         (9)  TO SUBMIT ANNUALLY A REPORT TO THE CONSUMER
    16     PROTECTION AND PROFESSIONAL LICENSURE COMMITTEE OF THE SENATE
    17     AND THE PROFESSIONAL LICENSURE COMMITTEE OF THE HOUSE OF
    18     REPRESENTATIVES. THE REPORT SHALL INCLUDE A DESCRIPTION OF
    19     THE TYPES OF COMPLAINTS RECEIVED, STATUS OF CASES, THE ACTION
    20     WHICH HAS BEEN TAKEN AND THE LENGTH OF TIME FROM INITIAL
    21     COMPLAINT TO FINAL RESOLUTION.
    22         (10)  TO SUBMIT ANNUALLY TO THE APPROPRIATIONS COMMITTEE
    23     OF THE SENATE AND THE APPROPRIATIONS COMMITTEE OF THE HOUSE
    24     OF REPRESENTATIVES, 15 DAYS AFTER THE GOVERNOR HAS SUBMITTED
    25     A BUDGET TO THE GENERAL ASSEMBLY, A COPY OF THE BUDGET
    26     REQUEST FOR THE UPCOMING FISCAL YEAR WHICH THE BOARD
    27     PREVIOUSLY SUBMITTED TO THE DEPARTMENT.
    28         (11)  TO PRESCRIBE THE FORM OF LICENSES, APPLICATIONS AND
    29     OTHER DOCUMENTS THAT ARE REQUIRED FOR HOME INSPECTORS TO BE
    30     LICENSED UNDER THIS CHAPTER.
    20070S0359B1816                 - 42 -     

     1         (12)  TO GRANT, DENY, SUSPEND AND REVOKE APPROVAL OF
     2     EXAMINATIONS AND COURSES OF STUDY REGARDING HOME INSPECTIONS,
     3     ESTABLISH STANDARDS FOR CONTINUING HOME INSPECTION EDUCATION,
     4     INCLUDING THE SUBJECT MATTER AND CONTENT OF COURSES OF STUDY
     5     AND THE SELECTION OF INSTRUCTORS AND APPROVE OTHER EQUIVALENT
     6     EDUCATIONAL PROGRAMS AND ESTABLISH PROCEDURES FOR THE
     7     ISSUANCE OF CREDIT UPON SATISFACTORY PROOF OF THE COMPLETION
     8     OF THESE PROGRAMS.
     9         (13)  TO ESTABLISH AND MAINTAIN A CURRENT LIST OF HOME
    10     INSPECTORS WHO ARE LICENSED. THIS LIST SHALL BE AVAILABLE FOR
    11     PUBLIC INSPECTION, INCLUDING ON AN INTERNET WEBSITE.
    12         (14)  TO ESTABLISH CONTINUING EDUCATION REQUIREMENTS OF
    13     NOT LESS THAN 32 HOURS BIENNIALLY FOR LICENSEES IN ACCORDANCE
    14     WITH THIS CHAPTER.
    15         (15)  TO REQUIRE ALL FEE-PAID HOME INSPECTIONS TO BE
    16     CONDUCTED IN ACCORDANCE WITH THE STANDARDS OF PRACTICE
    17     ESTABLISHED BY THE BOARD.
    18         (16)  TO ADOPT STANDARDS OF PRACTICE FOR LICENSEES.
    19  § 75A05.  LICENSURE.
    20     (A)  GENERAL RULE.--AN INDIVIDUAL MAY NOT PERFORM HOME
    21  INSPECTIONS, OFFER HIMSELF FOR EMPLOYMENT AS AN INDIVIDUAL WHO
    22  PERFORMS HOME INSPECTIONS OR HOLD HIMSELF OUT AS A HOME
    23  INSPECTOR UNLESS LICENSED BY THE BOARD.
    24     (B)  BUSINESS ENTITIES.--AN INDIVIDUAL, CORPORATION,
    25  PARTNERSHIP, FIRM OR OTHER ENTITY SHALL NOT EMPLOY AN INDIVIDUAL
    26  TO PERFORM A HOME INSPECTION OR ALLOW OR DIRECT AN INDIVIDUAL TO
    27  PERFORM A HOME INSPECTION UNLESS THE INDIVIDUAL IS LICENSED
    28  UNDER THIS CHAPTER.
    29  § 75A06.  QUALIFICATIONS.
    30     (A)  GENERAL RULE.--TO BE ELIGIBLE TO APPLY FOR LICENSURE, AN
    20070S0359B1816                 - 43 -     

     1  APPLICANT MUST FULFILL ALL OF THE FOLLOWING REQUIREMENTS:
     2         (1)  BE OF GOOD MORAL CHARACTER.
     3         (2)  BE 18 YEARS OF AGE OR OLDER.
     4         (3)  EXCEPT AS PROVIDED UNDER SUBSECTION (A.1), HAVE
     5     SUCCESSFULLY COMPLETED THE PENNSYLVANIA PEST MANAGEMENT
     6     ASSOCIATION ACCREDITED WOOD DESTROYING INSECT INSPECTORS
     7     TRAINING COURSE.
     8         (4)  HAVE SUCCESSFULLY COMPLETED AN EXAMINATION APPROVED
     9     AND ADMINISTERED BY A THIRD-PARTY TESTING ORGANIZATION.
    10         (5)  PAY THE FEE SET BY THE BOARD.
    11     (A.1)  CATEGORY 12 CERTIFICATION.--
    12         (1)  IF A HOME INSPECTOR OR PEST INSPECTOR CHOOSES TO
    13     OFFER WOOD DESTROYING INSECT INSPECTION SERVICES FOR REAL
    14     ESTATE TRANSACTIONS IN THIS COMMONWEALTH, THE INSPECTOR SHALL
    15     BE A LICENSED PEST CONTROL OPERATOR WITH CATEGORY 12
    16     CERTIFICATION OR SHALL BE A DEPARTMENT OF AGRICULTURE
    17     LICENSED INSPECTOR WITH CATEGORY 12 NA CERTIFICATION AND
    18     SHALL HAVE SUCCESSFULLY COMPLETED THE PENNSYLVANIA PEST
    19     MANAGEMENT ASSOCIATION ACCREDITED WOOD DESTROYING INSECT
    20     INSPECTORS TRAINING COURSE, OR ITS EQUIVALENT, AND SHALL BE
    21     CURRENTLY ACCREDITED.
    22         (2)  IN THE EVENT THAT AN ANCILLARY SERVICE IS PERFORMED
    23     BY A LICENSED HOME INSPECTOR, THE INSPECTOR SHALL, IN
    24     ADDITION TO THE REQUIREMENTS UNDER PARAGRAPH (1), BE LICENSED
    25     OR CERTIFIED TO PERFORM THAT SERVICE AS REQUIRED BY STATE
    26     REGULATION. INSPECTORS FOUND TO BE PERFORMING ANCILLARY
    27     INSPECTIONS FOR THE HOME-BUYING PUBLIC WITHOUT THE REQUIRED
    28     LICENSE OR CERTIFICATION SHALL BE SUBJECT TO DISCIPLINE BY
    29     THE BOARD.
    30     (B)  CONVICTIONS PROHIBITED.--
    20070S0359B1816                 - 44 -     

     1         (1)  THE BOARD SHALL NOT ISSUE A LICENSE TO AN INDIVIDUAL
     2     WHO HAS BEEN CONVICTED OF A FELONY UNDER THE ACT OF APRIL 14,
     3     1972 (P.L.233, NO.64), KNOWN AS THE CONTROLLED SUBSTANCE,
     4     DRUG, DEVICE AND COSMETIC ACT, OR AN OFFENSE UNDER THE LAWS
     5     OF ANOTHER JURISDICTION WHICH IF COMMITTED IN THIS
     6     COMMONWEALTH WOULD BE A FELONY UNDER THE CONTROLLED
     7     SUBSTANCE, DRUG, DEVICE AND COSMETIC ACT, UNLESS ALL OF THE
     8     FOLLOWING APPLY:
     9             (I)  AT LEAST FIVE YEARS HAVE ELAPSED FROM THE DATE
    10         OF CONVICTION.
    11             (II)  THE INDIVIDUAL SATISFACTORILY DEMONSTRATES TO
    12         THE BOARD THAT THE INDIVIDUAL HAS MADE SIGNIFICANT
    13         PROGRESS IN PERSONAL REHABILITATION SINCE THE CONVICTION
    14         SUCH THAT LICENSURE OF THE INDIVIDUAL SHOULD NOT BE
    15         EXPECTED TO CREATE A SUBSTANTIAL RISK OF HARM TO THE
    16         HEALTH AND SAFETY OF HOME INSPECTORS, TRAINEES OR THE
    17         PUBLIC OR A SUBSTANTIAL RISK OF FURTHER CRIMINAL
    18         VIOLATIONS.
    19             (III)  THE INDIVIDUAL SATISFIES THE QUALIFICATIONS
    20         PROVIDED UNDER THIS CHAPTER.
    21         (2)  AN INDIVIDUAL'S STATEMENT ON THE APPLICATION
    22     DECLARING THE ABSENCE OF A CONVICTION SHALL BE DEEMED
    23     SATISFACTORY EVIDENCE OF THE ABSENCE OF A CONVICTION UNLESS
    24     THE BOARD HAS EVIDENCE TO THE CONTRARY.
    25  § 75A07.  (RESERVED).
    26  § 75A08.  HOME INSPECTION REPORTS.
    27     (A)  REQUIRED CONTENTS.--A HOME INSPECTION REPORT MUST BE IN
    28  WRITING AND SHALL INCLUDE:
    29         (1)  A DESCRIPTION OF THE SCOPE OF THE INSPECTION,
    30     INCLUDING WITHOUT LIMITATION AN IDENTIFICATION OF THE
    20070S0359B1816                 - 45 -     

     1     STRUCTURAL ELEMENTS, SYSTEMS AND SUBSYSTEMS COVERED BY THE
     2     REPORT.
     3         (2)  A DESCRIPTION OF ANY MATERIAL DEFECTS NOTED DURING
     4     THE INSPECTION, ALONG WITH ANY RECOMMENDATION THAT CERTAIN
     5     EXPERTS BE RETAINED TO DETERMINE THE EXTENT OF THE DEFECTS
     6     AND ANY CORRECTIVE ACTION THAT SHOULD BE TAKEN. A MATERIAL
     7     DEFECT THAT POSES AN UNREASONABLE RISK TO PEOPLE ON THE
     8     PROPERTY SHALL BE CONSPICUOUSLY IDENTIFIED AS SUCH.
     9         (3)  THE FOLLOWING STATEMENTS, SET FORTH CONSPICUOUSLY:
    10             A HOME INSPECTION IS INTENDED TO ASSIST IN EVALUATION
    11         OF THE OVERALL CONDITION OF THE DWELLING. THE INSPECTION
    12         IS BASED ON OBSERVATION OF THE VISIBLE AND APPARENT
    13         CONDITION OF THE STRUCTURE AND ITS COMPONENTS ON THE DATE
    14         OF INSPECTION.
    15             THE RESULTS OF THIS HOME INSPECTION ARE NOT INTENDED
    16         TO MAKE ANY REPRESENTATION REGARDING THE PRESENCE OR
    17         ABSENCE OF LATENT OR CONCEALED DEFECTS THAT ARE NOT
    18         REASONABLY ASCERTAINABLE IN A COMPETENTLY PERFORMED HOME
    19         INSPECTION. NO WARRANTY OR GUARANTY IS EXPRESSED OR
    20         IMPLIED.
    21             IF THE PERSON CONDUCTING YOUR HOME INSPECTION IS NOT
    22         A LICENSED STRUCTURAL ENGINEER OR OTHER PROFESSIONAL
    23         WHOSE LICENSE AUTHORIZES THE RENDERING OF AN OPINION AS
    24         TO THE STRUCTURAL INTEGRITY OF A BUILDING OR ITS OTHER
    25         COMPONENT PARTS, YOU MAY BE ADVISED TO SEEK A
    26         PROFESSIONAL OPINION AS TO ANY DEFECTS OR CONCERNS
    27         MENTIONED IN THE REPORT.
    28             THIS HOME INSPECTION REPORT IS NOT TO BE CONSTRUED AS
    29         AN APPRAISAL AND MAY NOT BE USED AS SUCH FOR ANY PURPOSE.
    30     (B)  CONFIDENTIALITY.--EXCEPT AS OTHERWISE REQUIRED BY LAW, A
    20070S0359B1816                 - 46 -     

     1  HOME INSPECTOR SHALL NOT DELIVER A HOME INSPECTION REPORT TO ANY
     2  PERSON OTHER THAN THE CLIENT OF THE HOME INSPECTOR WITHOUT THE
     3  CLIENT'S CONSENT. NOTWITHSTANDING THIS SUBSECTION, IF THE
     4  INSPECTION IS FOR THE SALE OF A RESIDENCE, THE SELLER SHALL HAVE
     5  THE RIGHT, UPON REQUEST, TO RECEIVE WITHOUT CHARGE A COPY OF A
     6  HOME INSPECTION REPORT FROM THE PERSON FOR WHOM IT WAS PREPARED.
     7     (C)  REPAIR ESTIMATES PROHIBITED.--A HOME INSPECTOR SHALL NOT
     8  EXPRESS EITHER ORALLY OR IN WRITING AN ESTIMATE OF THE COST TO
     9  REPAIR ANY DEFECT FOUND DURING A HOME INSPECTION.
    10  § 75A09.  LIABILITY INSURANCE.
    11     (A)  REQUIRED INSURANCE.--A HOME INSPECTOR SHALL MAINTAIN
    12  GENERAL LIABILITY INSURANCE IN THE PERFORMANCE OF A HOME
    13  INSPECTION AND GENERAL LIABILITY, WITH COVERAGES OF NOT LESS
    14  THAN $100,000 PER OCCURRENCE AND $500,000 IN THE AGGREGATE.
    15     (B)  TERM.--
    16         (1)  EXCEPT AS SET FORTH IN PARAGRAPH (2), A HOME
    17     INSPECTOR SHALL MAINTAIN INSURANCE UNDER SUBSECTION (A) FOR
    18     AT LEAST ONE YEAR AFTER THE LATEST HOME INSPECTION REPORT WAS
    19     DELIVERED.
    20         (2)  PARAGRAPH (1) SHALL NOT APPLY TO A HOME INSPECTION
    21     REPORT THAT WAS DELIVERED PRIOR TO THE EFFECTIVE DATE OF THIS
    22     SECTION.
    23  § 75A10.  HOME INSPECTORS IN OTHER STATES, TERRITORIES OR
    24             DOMINION OF CANADA.
    25     THE BOARD MAY ISSUE A LICENSE TO AN INDIVIDUAL WHO HAS
    26  LICENSURE OR ITS EQUIVALENT AS A HOME INSPECTOR IN ANY OTHER
    27  STATE OR TERRITORY OF THE UNITED STATES OR THE DOMINION OF
    28  CANADA IF ALL OF THE FOLLOWING REQUIREMENTS ARE MET:
    29         (1)  THE OTHER JURISDICTION GRANTS THE SAME PRIVILEGES TO
    30     LICENSEES OF PENNSYLVANIA AS THE COMMONWEALTH GRANTS TO
    20070S0359B1816                 - 47 -     

     1     LICENSEES OF THAT OTHER JURISDICTION.
     2         (2)  THE PERSON IS LICENSED OR ITS EQUIVALENT IN THE
     3     OTHER JURISDICTION AND HAS SUCCESSFULLY PASSED THE EXAM.
     4         (3)  THE LICENSING REQUIREMENTS OF THE OTHER JURISDICTION
     5     ARE SUBSTANTIALLY SIMILAR TO THE LICENSING REQUIREMENTS OF
     6     THIS CHAPTER.
     7         (4)  THE PERSON PROVIDES A NOTARIZED STATEMENT THAT THE
     8     PERSON HAS STUDIED, IS FAMILIAR WITH AND WILL ABIDE BY THE
     9     PROVISIONS OF THIS CHAPTER AND THE ADMINISTRATIVE REGULATIONS
    10     PROMULGATED BY THE BOARD.
    11         (5)  THE INDIVIDUAL PAYS THE REQUIRED FEE.
    12  § 75A11.  DURATION OF LICENSE.
    13     (A)  DURATION OF LICENSE.--A LICENSE ISSUED UNDER THIS
    14  CHAPTER SHALL BE ON A BIENNIAL BASIS. THE BIENNIAL EXPIRATION
    15  DATE SHALL BE ESTABLISHED BY THE BOARD. APPLICATION FOR RENEWAL
    16  OF A LICENSE SHALL BIENNIALLY BE FORWARDED TO AN INDIVIDUAL
    17  HOLDING A CURRENT LICENSE PRIOR TO THE EXPIRATION DATE OF THE
    18  CURRENT RENEWAL BIENNIUM.
    19     (B)  INACTIVE STATUS.--AN INDIVIDUAL LICENSED UNDER THIS
    20  CHAPTER MAY REQUEST AN APPLICATION FOR INACTIVE STATUS. THE
    21  APPLICATION FORM MAY BE COMPLETED AND RETURNED TO THE BOARD.
    22  UPON RECEIPT OF AN APPLICATION, THE INDIVIDUAL SHALL BE
    23  MAINTAINED ON INACTIVE STATUS WITHOUT FEE AND SHALL BE ENTITLED
    24  TO APPLY FOR A LICENSURE RENEWAL AT ANY TIME AFTER COMPLYING
    25  WITH THE REQUIREMENTS FOR CONTINUING EDUCATION. AN INDIVIDUAL
    26  WHO REQUESTS THE BOARD TO ACTIVATE THE INDIVIDUAL'S LICENSE AND
    27  WHO HAS BEEN ON INACTIVE STATUS FOR A PERIOD OF THREE
    28  CONSECUTIVE YEARS SHALL, PRIOR TO RECEIVING AN ACTIVE LICENSE,
    29  SATISFY THE REQUIREMENTS OF THE BOARD'S REGULATIONS FOR ENSURING
    30  CONTINUED COMPETENCE, INCLUDING HOLDING CURRENT CERTIFICATION
    20070S0359B1816                 - 48 -     

     1  AND REMITTING THE REQUIRED FEE. THE BOARD SHALL PROMULGATE
     2  REGULATIONS TO CARRY OUT THE PROVISIONS OF THIS SUBSECTION.
     3  § 75A12.  REPORTING OF MULTIPLE LICENSURE.
     4     A HOME INSPECTOR WHO IS ALSO LICENSED TO PERFORM HOME
     5  INSPECTIONS IN ANY OTHER STATE, TERRITORY OR POSSESSION OF THE
     6  UNITED STATES OR ANY OTHER COUNTRY SHALL REPORT THIS INFORMATION
     7  TO THE BOARD ON THE BIENNIAL REGISTRATION APPLICATION. A
     8  LICENSEE SHALL REPORT ANY DISCIPLINARY ACTION REGARDING A
     9  LICENSE TAKEN IN ANOTHER STATE, TERRITORY, POSSESSION OF THE
    10  UNITED STATES OR ANY OTHER COUNTRY TO THE BOARD ON THE BIENNIAL
    11  REGISTRATION APPLICATION OR WITHIN 90 DAYS OF FINAL DISPOSITION,
    12  WHICHEVER IS SOONER. MULTIPLE LICENSURE SHALL BE NOTED BY THE
    13  BOARD ON THE HOME INSPECTOR'S RECORD, AND THE STATE, TERRITORY,
    14  POSSESSION OR COUNTRY SHALL BE NOTIFIED OF ANY DISCIPLINARY
    15  ACTIONS TAKEN BY THE BOARD AGAINST THE LICENSEE IN THIS
    16  COMMONWEALTH.
    17  § 75A13.  RELATIONSHIP TO OTHER LAWS.
    18     (A)  GENERAL RULE.--NOTHING IN THIS CHAPTER SHALL BE
    19  CONSTRUED TO ALLOW A HOME INSPECTOR WHO IS NOT REGISTERED OR
    20  LICENSED UNDER ONE OR MORE OF THE FOLLOWING LAWS TO PERFORM ANY
    21  ACTIVITY THAT WOULD CONSTITUTE THE PRACTICE OF THE PROFESSION
    22  REGULATED BY THAT LAW:
    23         (1)  THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS
    24     THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW.
    25         (2)  THE ACT OF JANUARY 24, 1966 (1965 P.L.1535, NO.537),
    26     KNOWN AS THE PENNSYLVANIA SEWAGE FACILITIES ACT.
    27         (3)  THE ACT OF MARCH 1, 1974 (P.L.90, NO.24), KNOWN AS
    28     THE PENNSYLVANIA PESTICIDE CONTROL ACT OF 1973.
    29         (4)  THE ACT OF DECEMBER 14, 1982 (P.L.1227, NO.281),
    30     KNOWN AS THE ARCHITECTS LICENSURE LAW.
    20070S0359B1816                 - 49 -     

     1         (5)  THE ACT OF JULY 9, 1987 (P.L.238, NO.43), KNOWN AS
     2     THE RADON CERTIFICATION ACT.
     3         (6)  THE ACT OF JULY 10, 1990 (P.L.404, NO.98), KNOWN AS
     4     THE REAL ESTATE APPRAISERS CERTIFICATION ACT.
     5     (B)  EXCLUSIONS.--THIS CHAPTER SHALL NOT:
     6         (1)  APPLY TO A PERSON REGISTERED OR LICENSED UNDER AN
     7     ACT REFERRED TO IN SUBSECTION (A) WHEN ACTING PURSUANT TO HIS
     8     REGISTRATION OR LICENSE.
     9         (2)  APPLY TO AN OFFICER OR EMPLOYEE OF A MUNICIPALITY OR
    10     LOCAL AUTHORITY WHEN ACTING IN HIS OFFICIAL CAPACITY.
    11         (3)  AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON
    12     LICENSED UNDER THE ACT OF FEBRUARY 19, 1980 (P.L.15, NO.9),
    13     KNOWN AS THE REAL ESTATE LICENSING AND REGISTRATION ACT, THAT
    14     ARE IMPOSED OR PROVIDED BY THAT ACT OR CHAPTER 73 (RELATING
    15     TO SELLER DISCLOSURES) WHEN THE PERSON IS ACTING PURSUANT TO
    16     HIS LICENSE.
    17         (4)  AFFECT THE OBLIGATIONS OR IMMUNITIES OF A PERSON
    18     CERTIFIED UNDER THE REAL ESTATE APPRAISERS CERTIFICATION ACT
    19     WHEN THE PERSON IS ACTING PURSUANT TO THE PERSON'S LICENSE.
    20  § 75A14.  UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW
    21             REMEDIES.
    22     (A)  GENERAL RULE.--THE PERFORMANCE OF A HOME INSPECTION IS A
    23  SERVICE THAT IS SUBJECT TO THE ACT OF DECEMBER 17, 1968
    24  (P.L.1224, NO.387), KNOWN AS THE UNFAIR TRADE PRACTICES AND
    25  CONSUMER PROTECTION LAW.
    26     (B)  PROHIBITED ACTS.--ANY OF THE FOLLOWING ACTS ENGAGED IN
    27  BY A HOME INSPECTOR, AN EMPLOYER OF A HOME INSPECTOR OR ANOTHER
    28  BUSINESS OR PERSON THAT CONTROLS OR HAS A FINANCIAL INTEREST IN
    29  THE EMPLOYER OF A HOME INSPECTOR SHALL BE DEEMED TO BE AN UNFAIR
    30  OR DECEPTIVE ACT OR PRACTICE AS DEFINED BY SECTION 2(4)(I)
    20070S0359B1816                 - 50 -     

     1  THROUGH (XXI) OF THE UNFAIR TRADE PRACTICES AND CONSUMER
     2  PROTECTION LAW:
     3         (1)  PERFORMING OR OFFERING TO PERFORM FOR AN ADDITIONAL
     4     FEE ANY REPAIRS TO A STRUCTURE WITH RESPECT TO WHICH THE HOME
     5     INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER
     6     BUSINESS OR PERSON HAS PREPARED A HOME INSPECTION REPORT
     7     WITHIN THE PRECEDING 12 MONTHS, EXCEPT THAT THIS PARAGRAPH
     8     SHALL NOT APPLY TO REMEDIATION FOR RADON OR WOOD DESTROYING
     9     INSECTS.
    10         (2)  INSPECTING FOR A FEE ANY PROPERTY IN WHICH THE HOME
    11     INSPECTOR, THE EMPLOYER OF THE HOME INSPECTOR OR SUCH OTHER
    12     BUSINESS OR PERSON HAS ANY FINANCIAL INTEREST OR ANY INTEREST
    13     IN THE TRANSFER OF THE PROPERTY, INCLUDING WITHOUT LIMITATION
    14     RECEIPT OF A COMMISSION AS AN AGENT, UNLESS THE FINANCIAL
    15     INTEREST OR INTEREST IN THE TRANSFER OF THE PROPERTY IS
    16     DISCLOSED IN WRITING TO THE BUYER BEFORE THE HOME INSPECTION
    17     IS PERFORMED AND THE BUYER SIGNS AN ACKNOWLEDGMENT OF RECEIPT
    18     OF THE DISCLOSURE.
    19         (3)  OFFERING OR DELIVERING ANY COMMISSION, REFERRAL FEE
    20     OR KICKBACK TO THE SELLER OF THE INSPECTED PROPERTY OR TO AN
    21     AGENT FOR EITHER OR BOTH OF THE SELLER AND THE BUYER FOR THE
    22     REFERRAL OF ANY BUSINESS TO THE HOME INSPECTOR, THE EMPLOYER
    23     OF THE HOME INSPECTOR OR SUCH OTHER BUSINESS OR PERSON.
    24         (4)  ACCEPTING AN ENGAGEMENT TO PERFORM A HOME INSPECTION
    25     OR TO PREPARE A HOME INSPECTION REPORT IN WHICH THE
    26     EMPLOYMENT ITSELF OR THE FEE PAYABLE FOR THE INSPECTION IS
    27     CONTINGENT UPON THE CONCLUSIONS IN THE REPORT, PREESTABLISHED
    28     OR PRESCRIBED FINDINGS OR THE CLOSING OF THE TRANSACTION.
    29     (C)  EXCEPTION.--A HOME WARRANTY COMPANY THAT IS AFFILIATED
    30  WITH OR RETAINS THE HOME INSPECTOR DOES NOT VIOLATE SUBSECTION
    20070S0359B1816                 - 51 -     

     1  (B) IF THE HOME WARRANTY COMPANY PERFORMS REPAIRS PURSUANT TO
     2  CLAIMS MADE UNDER A HOME WARRANTY CONTRACT.
     3     (D)  CONSUMER REMEDIES.--IN ADDITION TO ANY OTHER REMEDIES
     4  AVAILABLE UNDER THE UNFAIR TRADE PRACTICES AND CONSUMER
     5  PROTECTION LAW OR OTHER APPLICABLE PROVISION OF LAW, THE OWNER
     6  OF A PROPERTY ON WHICH REPAIRS ARE PERFORMED IN VIOLATION OF
     7  SUBSECTION (B)(1) SHALL BE ENTITLED TO A FULL REFUND OF ANY
     8  MONEYS PAID FOR THOSE REPAIRS, AND ANY PROMISSORY NOTE OR OTHER
     9  OBLIGATION TO PAY GIVEN TO THE PERSON PERFORMING THOSE REPAIRS
    10  SHALL BE VOID.
    11  § 75A15.  CONTRACTS WITH HOME INSPECTORS.
    12     (A)  PROHIBITED PROVISIONS.--ANY OF THE FOLLOWING TYPES OF
    13  PROVISIONS IN A CONTRACT WITH A HOME INSPECTOR FOR THE
    14  PERFORMANCE OF A HOME INSPECTION ARE CONTRARY TO PUBLIC POLICY
    15  AND SHALL BE VOID:
    16         (1)  A LIMITATION ON THE LIABILITY OF THE HOME INSPECTOR
    17     FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
    18         (2)  A WAIVER OR MODIFICATION OF ANY PROVISION OF THIS
    19     CHAPTER.
    20     (B)  SCOPE OF INSPECTION.--THE SCOPE OF A HOME INSPECTION,
    21  THE SERVICES TO BE PERFORMED AND THE SYSTEMS AND CONDITIONS TO
    22  BE INSPECTED OR EXCLUDED FROM INSPECTION MAY BE DEFINED BY A
    23  CONTRACT BETWEEN THE HOME INSPECTOR AND THE CLIENT.
    24     (C)  REQUIRED CONTRACTUAL PROVISION REGARDING HOME
    25  INSPECTIONS.--EXCEPT AS PROVIDED UNDER THIS SECTION, A PROVISION
    26  OF AN AGREEMENT OF TRANSFER REGARDING THE RIGHT OF THE BUYER TO
    27  OBTAIN A HOME INSPECTION REPORT AND PROVIDING FOR THE
    28  CONSEQUENCES, IF ANY, SHALL PROVIDE THAT THE HOME INSPECTION BE
    29  PERFORMED BY A FULL MEMBER IN GOOD STANDING OF A NATIONAL HOME
    30  INSPECTION ASSOCIATION IN ACCORDANCE WITH THE ETHICAL STANDARDS
    20070S0359B1816                 - 52 -     

     1  AND CODE OF CONDUCT OR PRACTICE OF THAT ASSOCIATION, EXCEPT THAT
     2  A HOME INSPECTION PERFORMED BY A PERSON WHO HAS NOT ATTAINED
     3  FULL MEMBERSHIP IN A NATIONAL HOME INSPECTION ASSOCIATION
     4  SATISFIES THE REQUIREMENTS OF THIS SECTION IF THE PERSON IS:
     5         (1)  LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER
     6     UNDER THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE
     7     ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW;
     8         (2)  LICENSED OR REGISTERED UNDER THE ACT OF DECEMBER 14,
     9     1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE
    10     LAW; OR
    11         (3)  SUPERVISED BY A FULL MEMBER IN GOOD STANDING OF A
    12     NATIONAL HOME INSPECTION ASSOCIATION WHO AGREES TO BE
    13     RESPONSIBLE FOR THE HOME INSPECTION REPORT BY SIGNING THE
    14     REPORT.
    15  § 75A16.  FEES, FINES AND CIVIL PENALTIES.
    16     (A)  FEES.--ALL FEES REQUIRED UNDER THIS CHAPTER SHALL BE
    17  FIXED BY THE BOARD BY REGULATION AND SHALL BE SUBJECT TO THE ACT
    18  OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY
    19  REVIEW ACT. IF THE REVENUES RAISED BY THE FEES, FINES AND CIVIL
    20  PENALTIES IMPOSED UNDER THIS CHAPTER ARE NOT SUFFICIENT TO MEET
    21  EXPENDITURES OVER A TWO-YEAR PERIOD, THE BOARD SHALL INCREASE
    22  THOSE FEES BY REGULATION SO THAT PROJECTED REVENUES WILL MEET OR
    23  EXCEED PROJECTED EXPENDITURES.
    24     (B)  DEPOSIT OF FEES.--ALL FEES, FINES AND CIVIL PENALTIES
    25  IMPOSED IN ACCORDANCE WITH THIS CHAPTER SHALL BE PAID INTO THE
    26  PROFESSIONAL LICENSURE AUGMENTATION ACCOUNT.
    27     (C)  PERMITTED FEES.--THE BOARD MAY CHARGE A FEE, AS SET BY
    28  THE BOARD BY REGULATION, FOR LICENSURE, FOR RENEWING LICENSURE
    29  AND FOR OTHER SERVICES OF THE BOARD AS PERMITTED UNDER THIS
    30  CHAPTER OR BY REGULATION.
    20070S0359B1816                 - 53 -     

     1  § 75A17.  VIOLATION.
     2     (A)  CRIMINAL PENALTY.--A PERSON VIOLATING A PROVISION OF
     3  THIS CHAPTER OR A REGULATION OF THE BOARD COMMITS A MISDEMEANOR
     4  OF THE THIRD DEGREE AND SHALL, UPON CONVICTION, BE SENTENCED TO
     5  PAY A FINE OF NOT MORE THAN $2,500 OR TO IMPRISONMENT FOR NOT
     6  MORE THAN SIX MONTHS FOR THE FIRST VIOLATION. A PERSON CONVICTED
     7  OF A SECOND OR SUBSEQUENT VIOLATION SHALL BE SENTENCED TO PAY A
     8  FINE OF NOT MORE THAN $5,000 OR TO IMPRISONMENT FOR NOT LESS
     9  THAN SIX MONTHS OR MORE THAN ONE YEAR, OR BOTH.
    10     (B)  CIVIL PENALTY.--IN ADDITION TO ANY OTHER CIVIL REMEDY OR
    11  CRIMINAL PENALTY PROVIDED FOR UNDER THIS CHAPTER, THE BOARD, BY
    12  A VOTE OF THE MAJORITY OF THE MAXIMUM NUMBER OF THE AUTHORIZED
    13  MEMBERSHIP OF THE BOARD AS PROVIDED BY LAW OR BY A VOTE OF THE
    14  MAJORITY OF THE DULY QUALIFIED AND CONFIRMED MEMBERSHIP OR A
    15  MINIMUM OF FIVE MEMBERS, WHICHEVER IS GREATER, MAY LEVY A CIVIL
    16  PENALTY OF UP TO $10,000 ON ANY OF THE FOLLOWING:
    17         (1)  A HOME INSPECTOR WHO VIOLATES A PROVISION OF THIS
    18     CHAPTER.
    19         (2)  AN INDIVIDUAL WHO PERFORMS HOME INSPECTIONS WITHOUT
    20     A LICENSE, AS REQUIRED BY THIS CHAPTER.
    21     (C)  PROCEDURE.--THE BOARD SHALL LEVY THE CIVIL PENALTY UNDER
    22  SUBSECTION (B) ONLY AFTER AFFORDING THE ACCUSED THE OPPORTUNITY
    23  FOR A HEARING AS PROVIDED UNDER 2 PA.C.S. (RELATING TO
    24  ADMINISTRATIVE LAW AND PROCEDURE).
    25  § 75A18.  REFUSAL, SUSPENSION OR REVOCATION OF LICENSE.
    26     (A)  GENERAL RULE.--THE BOARD SHALL HAVE THE AUTHORITY TO
    27  REFUSE, SUSPEND OR REVOKE A LICENSE OR DISCIPLINE FOR UNLICENSED
    28  ACTIVITY IN A CASE WHERE THE BOARD FINDS ANY OF THE FOLLOWING:
    29         (1)  THE LICENSEE IS NEGLIGENT OR INCOMPETENT IN
    30     PERFORMING A HOME INSPECTION.
    20070S0359B1816                 - 54 -     

     1         (2)  THE LICENSEE HAS WILLFULLY OR REPEATEDLY VIOLATED
     2     ANY OF THE PROVISIONS OF THIS CHAPTER OR A REGULATION OF THE
     3     BOARD.
     4         (3)  THE LICENSEE OR INDIVIDUAL HAS COMMITTED FRAUD OR
     5     DECEIT IN ANY OF THE FOLLOWING:
     6             (I)  PERFORMING HOME INSPECTIONS.
     7             (II)  SECURING LICENSURE OR CERTIFICATION.
     8             (III)  ADVERTISING.
     9             (IV)  PERFORMING OR OFFERING TO PERFORM HOME
    10         INSPECTIONS FOR COMPENSATION WITHOUT BEING LICENSED AS A
    11         HOME INSPECTOR AND WITHOUT BEING EXEMPT FROM LICENSURE
    12         UNDER THIS CHAPTER.
    13             (V)  PRESENTING AS THE INDIVIDUAL'S OWN LICENSE, THE
    14         LICENSE OF ANOTHER.
    15             (VI)  INTENTIONALLY GIVING FALSE OR MATERIALLY
    16         MISLEADING INFORMATION TO THE BOARD OR TO A BOARD OR
    17         STAFF MEMBER IN CONNECTION WITH A LICENSING MATTER.
    18             (VII)  USING AN EXPIRED, SUSPENDED, REVOKED OR
    19         OTHERWISE RESTRICTED LICENSE.
    20             (VIII)  PERFORMING OR OFFERING TO PERFORM FOR AN
    21         ADDITIONAL FEE ANY REPAIRS TO A STRUCTURE WITH RESPECT TO
    22         WHICH THE HOME INSPECTOR, THE EMPLOYER OF THE HOME
    23         INSPECTOR OR OTHER BUSINESS OR PERSON HAS PREPARED A HOME
    24         INSPECTION REPORT WITHIN THE PRECEDING 12 MONTHS, EXCEPT
    25         THAT THIS SUBPARAGRAPH SHALL NOT APPLY TO REMEDIATION FOR
    26         RADON OR WOOD DESTROYING INSECTS.
    27             (IX)  PARTICIPATION, BY ANY REAL ESTATE BROKER OR
    28         AGENT, DIRECTLY OR INDIRECTLY, IN AN ACTION IN WHICH THE
    29         HOME INSPECTOR PAYS OR RECEIVES A DIRECT OR INDIRECT
    30         CONSIDERATION FOR RECEIVING LEADS TOWARD PROVIDING HOME
    20070S0359B1816                 - 55 -     

     1         INSPECTION SERVICES.
     2         (4)  THE LICENSEE HAS BEEN CONVICTED OF A FELONY OR A
     3     CRIME OF MORAL TURPITUDE.
     4         (5)  THE LICENSEE HAS HAD HIS LICENSE SUSPENDED OR
     5     REVOKED OR HAS RECEIVED OTHER DISCIPLINARY ACTION BY THE
     6     PROPER LICENSING AUTHORITY IN ANOTHER STATE, TERRITORY,
     7     POSSESSION OF THE UNITED STATES OR ANY OTHER COUNTRY.
     8         (6)  THE LICENSEE FALSELY ADVERTISED OR MADE MISLEADING,
     9     DECEPTIVE, UNTRUE OR FRAUDULENT MATERIAL REPRESENTATIONS
    10     REGARDING LICENSURE.
    11     (B)  ACTS AUTHORIZED.--IF THE BOARD FINDS THAT THE LICENSE OF
    12  A HOME INSPECTOR MAY BE REFUSED, REVOKED OR SUSPENDED UNDER
    13  SUBSECTION (A), THE BOARD MAY DO ANY OF THE FOLLOWING:
    14         (1)  DENY THE APPLICATION FOR A LICENSE.
    15         (2)  ADMINISTER A PUBLIC REPRIMAND.
    16         (3)  REVOKE, SUSPEND, LIMIT OR OTHERWISE RESTRICT A
    17     LICENSE.
    18         (4)  REQUIRE A LICENSEE TO SUBMIT TO THE CARE, COUNSELING
    19     OR TREATMENT OF A PHYSICIAN OR A PSYCHOLOGIST DESIGNATED BY
    20     THE BOARD.
    21         (5)  SUSPEND ENFORCEMENT OF ITS FINDING AND PLACE A
    22     LICENSEE ON PROBATION WITH THE RIGHT TO VACATE THE
    23     PROBATIONARY ORDER FOR NONCOMPLIANCE.
    24         (6)  RESTORE OR REISSUE, IN ITS DISCRETION, A SUSPENDED
    25     LICENSE AND IMPOSE ANY DISCIPLINARY OR CORRECTIVE MEASURE
    26     WHICH IT MIGHT ORIGINALLY HAVE IMPOSED.
    27  § 75A19.  SUSPENSIONS AND REVOCATIONS.
    28     DISCIPLINARY ACTION SHALL BE IMPOSED ONLY IN ACCORDANCE WITH
    29  THE REGULATIONS OF THE BOARD AND ONLY BY MAJORITY VOTE OF THE
    30  MEMBERS OF THE BOARD AFTER A HEARING. AN ACTION OF THE BOARD
    20070S0359B1816                 - 56 -     

     1  SHALL BE TAKEN SUBJECT TO THE RIGHT OF NOTICE, HEARING AND
     2  ADJUDICATION, AND THE RIGHT OF APPEAL, IN ACCORDANCE WITH 2
     3  PA.C.S. (RELATING TO ADMINISTRATIVE LAW AND PROCEDURE). THE
     4  BOARD, BY MAJORITY ACTION, MAY REISSUE A LICENSE WHICH HAS BEEN
     5  SUSPENDED. IF A LICENSE HAS BEEN REVOKED, THE BOARD SHALL
     6  REISSUE A LICENSE ONLY UNDER SECTION 75A21 (RELATING TO
     7  REINSTATEMENT OF LICENSE).
     8  § 75A20.  INTERNS.
     9     (A)  ELIGIBILITY.--TO BE ELIGIBLE FOR A HOME INSPECTOR INTERN
    10  PERMIT, AN APPLICANT SHALL HAVE DONE ALL OF THE FOLLOWING:
    11         (1)  HAVE SUCCESSFULLY COMPLETED HIGH SCHOOL OR ITS
    12     EQUIVALENT.
    13         (2)  HAVE ENROLLED IN AND COMPLETED A BOARD-APPROVED
    14     TRAINING PROGRAM THAT MEETS THE REQUIREMENTS OF REGULATIONS
    15     ADOPTED BY THE BOARD RELATING TO 120-HOUR CLASS TIMES.
    16         (3)  HAVE AN IDENTIFIED SUPERVISOR WHO IS LICENSED AS A
    17     HOME INSPECTOR UNDER THIS CHAPTER, IS IN GOOD STANDING AS A
    18     HOME INSPECTOR AND HAS AGREED TO PERFORM SUPERVISORY
    19     FUNCTIONS AS DESCRIBED UNDER SUBSECTION (C).
    20         (4)  HAS PAID A FEE AS ESTABLISHED BY THE BOARD.
    21     (B)  EXAMINATION.--UPON COMPLETION OF A BOARD-APPROVED
    22  TRAINING PROGRAM THAT MEETS THE REQUIREMENTS OF THE REGULATIONS
    23  ADOPTED BY THE BOARD, THE HOME INSPECTOR INTERN MAY TAKE THE
    24  HOME INSPECTOR LICENSURE EXAMINATION. IF THE INTERN DOES NOT
    25  PASS HIS LICENSURE EXAMINATION, THE INTERN MAY TAKE UP TO TWO
    26  ADDITIONAL EXAMINATIONS DURING THE ONE-YEAR PERIOD COMMENCING ON
    27  THE DATE OF THE APPLICANT'S FIRST EXAMINATION APPLICATION. IF
    28  THE APPLICANT DOES NOT PASS A THIRD EXAMINATION, THE APPLICANT
    29  MAY NOT BE EXAMINED AGAIN UNTIL ONE YEAR AFTER THE DATE OF THE
    30  THIRD EXAMINATION.
    20070S0359B1816                 - 57 -     

     1     (C)  SUPERVISION.--A HOME INSPECTOR INTERN SHALL PERFORM
     2  FUNCTIONS OF A HOME INSPECTOR ONLY UNDER THE SUPERVISION OF A
     3  LICENSED HOME INSPECTOR AND IN ACCORDANCE WITH RULES AND
     4  REGULATIONS ADOPTED BY THE BOARD. THE SUPERVISION SHALL BE
     5  DIRECT SUPERVISION FOR A MINIMUM OF 100 INSPECTIONS. FOR THE
     6  PURPOSE OF THIS SUBSECTION, "DIRECT SUPERVISION" MEANS THE
     7  SUPERVISOR SHALL BE PRESENT AT THE SITE OF A HOME INSPECTION
     8  WHERE THE HOME INSPECTOR INTERN IS ASSIGNED 100% OF THE TIME AND
     9  THE SUPERVISOR SHALL COUNTERSIGN ALL DOCUMENTS PREPARED AND
    10  COMPLETED BY THE HOME INSPECTOR INTERN.
    11     (D)  RESPONSIBILITY.--THE LICENSED HOME INSPECTOR SUPERVISING
    12  THE HOME INSPECTOR INTERN SHALL BE RESPONSIBLE FOR ALL
    13  INSPECTIONS DONE BY THE HOME INSPECTOR INTERN UNDER THE LICENSED
    14  HOME INSPECTOR'S CHARGE.
    15     (E)  AGREEMENT.--AS A CONDITION FOR APPLYING FOR AN INTERN
    16  HOME INSPECTOR'S LICENSE, THE APPLICANT SHALL AGREE IN WRITING
    17  TO PARTICIPATE IN AND PERFORM THE TRAINING, FUNCTIONS AND
    18  RESPONSIBILITIES PRESCRIBED FOR INTERN HOME INSPECTORS AND SHALL
    19  AGREE TO UPHOLD STANDARDS OF ETHICS AND PROFESSIONAL CONDUCT
    20  PRESCRIBED BY THE BOARD.
    21  § 75A21.  REINSTATEMENT OF LICENSE.
    22     UNLESS ORDERED TO DO SO BY THE COMMONWEALTH COURT OR AN
    23  APPEAL FROM THE COMMONWEALTH COURT, THE BOARD SHALL NOT
    24  REINSTATE THE LICENSE OF AN INDIVIDUAL WHICH HAS BEEN REVOKED.
    25  AN INDIVIDUAL WHOSE LICENSE HAS BEEN REVOKED MAY REAPPLY FOR A
    26  LICENSE AFTER A PERIOD OF AT LEAST FIVE YEARS BUT MUST MEET ALL
    27  OF THE LICENSING REQUIREMENTS OF THIS CHAPTER.
    28  § 75A22.  SURRENDER OF SUSPENDED OR REVOKED LICENSE.
    29     THE BOARD SHALL REQUIRE AN INDIVIDUAL WHOSE LICENSE HAS BEEN
    30  SUSPENDED OR REVOKED TO RETURN THE LICENSE IN THE MANNER AS THE
    20070S0359B1816                 - 58 -     

     1  BOARD DIRECTS. A PERSON THAT FAILS TO DO SO COMMITS A
     2  MISDEMEANOR OF THE THIRD DEGREE.
     3  § 75A23.  INJUNCTION.
     4     WHENEVER IN THE JUDGMENT OF THE BOARD A PERSON HAS ENGAGED IN
     5  AN ACT OR PRACTICE WHICH IS REGULATED UNDER THIS CHAPTER AND
     6  WHICH CONSTITUTES OR WILL CONSTITUTE A VIOLATION OF THIS
     7  CHAPTER, THE BOARD OR ITS AGENTS MAY MAKE APPLICATION TO THE
     8  APPROPRIATE COURT FOR AN ORDER ENJOINING THE ACT OR PRACTICE
     9  AND, UPON A SHOWING BY THE BOARD THAT THE PERSON HAS ENGAGED OR
    10  IS ABOUT TO ENGAGE IN THE ACT OR PRACTICE, AN INJUNCTION,
    11  RESTRAINING ORDER OR OTHER ORDER AS MAY BE APPROPRIATE SHALL BE
    12  GRANTED BY THE COURT. THE REMEDY BY INJUNCTION SHALL BE IN
    13  ADDITION TO ANY OTHER CIVIL OR CRIMINAL PROSECUTION AND
    14  PUNISHMENT.
    15  § 75A24.  SUBPOENAS AND OATHS.
    16     (A)  AUTHORITY GRANTED.--THE BOARD SHALL HAVE THE AUTHORITY
    17  TO ISSUE SUBPOENAS, UPON APPLICATION OF AN ATTORNEY RESPONSIBLE
    18  FOR REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE
    19  THE BOARD, FOR THE PURPOSE OF INVESTIGATING ALLEGED VIOLATIONS
    20  OF THIS CHAPTER OR REGULATIONS OF THE BOARD. THE BOARD SHALL
    21  HAVE THE POWER TO SUBPOENA WITNESSES, TO ADMINISTER OATHS, TO
    22  EXAMINE WITNESSES AND TO TAKE TESTIMONY OR COMPEL THE PRODUCTION
    23  OF BOOKS, RECORDS, PAPERS AND DOCUMENTS AS IT MAY DEEM NECESSARY
    24  OR PROPER IN AND PERTINENT TO ANY PROCEEDING, INVESTIGATION OR
    25  HEARING HELD OR HAD BY THE BOARD. THE BOARD IS AUTHORIZED TO
    26  APPLY TO THE COMMONWEALTH COURT TO ENFORCE ITS SUBPOENAS. THE
    27  COURT MAY IMPOSE LIMITATIONS ON THE SCOPE OF THE SUBPOENA AS IS
    28  NECESSARY TO PREVENT UNNECESSARY INTRUSION INTO CLIENT
    29  CONFIDENTIAL INFORMATION.
    30     (B)  DISCIPLINARY MATTERS.--AN ATTORNEY RESPONSIBLE FOR
    20070S0359B1816                 - 59 -     

     1  REPRESENTING THE COMMONWEALTH IN DISCIPLINARY MATTERS BEFORE THE
     2  BOARD SHALL MAINTAIN CURRENT RECORDS OF ALL REPORTED ALLEGED
     3  VIOLATIONS AND PERIODICALLY REVIEW THE RECORDS FOR THE PURPOSE
     4  OF DETERMINING THAT EACH ALLEGED VIOLATION HAS BEEN RESOLVED IN
     5  A TIMELY MANNER.
     6  § 75A25.  STATUTE OF LIMITATIONS.
     7     AN ACTION TO RECOVER DAMAGES ARISING FROM A HOME INSPECTION
     8  REPORT MUST BE COMMENCED WITHIN ONE YEAR AFTER THE DATE THE
     9  REPORT IS DELIVERED.
    10  § 75A26.  ENGINEERS AND ARCHITECTS.
    11     NOTWITHSTANDING SECTION 75A13(B)(1) (RELATING TO RELATIONSHIP
    12  TO OTHER LAWS), THE FOLLOWING SECTIONS SHALL APPLY TO A PERSON
    13  LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER UNDER THE ACT
    14  OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE ENGINEER, LAND
    15  SURVEYOR AND GEOLOGIST REGISTRATION LAW, OR A PERSON LICENSED OR
    16  REGISTERED UNDER THE ACT OF DECEMBER 14, 1982 (P.L.1227,
    17  NO.281), KNOWN AS THE ARCHITECTS LICENSURE LAW, WHEN PERFORMING
    18  A HOME INSPECTION:
    19         (1)  SECTION 75A08 (RELATING TO HOME INSPECTION REPORTS).
    20         (2)  SECTION 75A09 (RELATING TO LIABILITY INSURANCE).
    21         (3)  SECTION 75A14 (RELATING TO UNFAIR TRADE PRACTICES
    22     AND CONSUMER PROTECTION LAW REMEDIES).
    23         (4)  SECTION 75A15(A)(1) AND (B) (RELATING TO CONTRACTS
    24     WITH HOME INSPECTORS).
    25     SECTION 2.1.  FOR ONE YEAR FROM THE EFFECTIVE DATE OF THIS
    26  SECTION, AN APPLICANT WHO MEETS ALL OF THE REQUIREMENTS OF
    27  FORMER 68 PA.C.S. CH. 75 AND THIS SECTION MAY BE LICENSED AS A
    28  HOME INSPECTOR WITHOUT HAVING TO COMPLETE A BOARD-APPROVED
    29  TRAINING PROGRAM OR COURSE OF STUDY INVOLVING THE PERFORMANCE OF
    30  HOME INSPECTIONS. THE APPLICANT MUST:
    20070S0359B1816                 - 60 -     

     1         (1)  BE AT LEAST 18 YEARS OF AGE.
     2         (2)  HAVE PASSED A WRITTEN EXAMINATION TO TEST COMPETENCE
     3     IN HOME INSPECTION PRACTICE.
     4         (3)  HAVE COMPLETED NO LESS THAN 100 FEE-PAID INSPECTIONS
     5     PER YEAR OVER THE FIVE YEARS IMMEDIATELY PRECEDING.
     6         (4)  SHOW PROOF OF PROFESSIONAL LIABILITY INSURANCE
     7     CONSISTENT WITH 68 PA.C.S. § 75A09.
     8     SECTION 3.  THE SUM OF $85,000, OR AS MUCH THEREOF AS MAY BE
     9  NECESSARY, IS HEREBY APPROPRIATED FROM THE PROFESSIONAL
    10  LICENSURE AUGMENTATION ACCOUNT TO THE DEPARTMENT OF STATE FOR
    11  THE PAYMENT OF COSTS ASSOCIATED WITH PROCESSING LICENSES AND
    12  RENEWING LICENSES, FOR THE OPERATION OF THE PENNSYLVANIA BOARD
    13  OF HOME INSPECTORS AND FOR OTHER COSTS ASSOCIATED WITH THE
    14  IMPLEMENTATION OF 68 PA.C.S. CH. 75A. THE APPROPRIATION SHALL BE
    15  REPAID BY THE BOARD WITHIN THREE YEARS OF THE BEGINNING OF
    16  ISSUANCE OF LICENSES BY THE BOARD.
    17     SECTION 4.  WITHIN 18 MONTHS OF THE EFFECTIVE DATE OF THIS
    18  SECTION, THE PENNSYLVANIA BOARD OF HOME INSPECTORS SHALL
    19  PROMULGATE REGULATIONS TO CARRY OUT THE PROVISIONS OF 68 PA.C.S.
    20  CH. 75A.
    21     SECTION 5.  THE ADDITION OF 68 PA.C.S. CH. 75A IS A
    22  CONTINUATION OF FORMER 68 PA.C.S. CH. 75. EXCEPT AS OTHERWISE
    23  PROVIDED UNDER CHAPTER 75A, ALL ACTIVITIES INITIATED UNDER
    24  FORMER CHAPTER 75 SHALL CONTINUE AND REMAIN IN FULL FORCE AND
    25  EFFECT AND MAY BE COMPLETED UNDER CHAPTER 75A. ORDERS,
    26  REGULATIONS, RULES AND DECISIONS WHICH WERE MADE UNDER FORMER
    27  CHAPTER 75 AND WHICH ARE IN EFFECT ON THE EFFECTIVE DATE OF THIS
    28  SECTION SHALL REMAIN IN FULL FORCE AND EFFECT UNTIL REVOKED,
    29  VACATED OR MODIFIED UNDER CHAPTER 75A. CONTRACTS, OBLIGATIONS
    30  AND COLLECTIVE BARGAINING AGREEMENTS ENTERED INTO UNDER FORMER
    20070S0359B1816                 - 61 -     

     1  CHAPTER 75 ARE NOT AFFECTED NOR IMPAIRED BY THE REPEAL OF FORMER
     2  CHAPTER 75.
     3     SECTION 6.  THIS ACT SHALL TAKE EFFECT IN 60 DAYS.


















    A8L68DMS/20070S0359B1816        - 62 -