PRINTER'S NO. 1327
No. 1174 Session of 1999
INTRODUCED BY STEVENSON, CARN, BELFANTI, LAUGHLIN, COLAFELLA,
STABACK, VAN HORNE, ORIE, SURRA, TRELLO, BARRAR, J. TAYLOR,
HARHAI, DeLUCA, WALKO, THOMAS, STEELMAN, YOUNGBLOOD, GEIST,
WILT, M. COHEN AND CORRIGAN, APRIL 7, 1999
REFERRED TO COMMITTEE ON LABOR RELATIONS, APRIL 7, 1999
AN ACT
1 Providing for the licensing of home inspection companies;
2 imposing powers and duties on the Department of Labor and
3 Industry; establishing the Home Inspection Fund; providing
4 for enforcement and penalties; and making an appropriation.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the Home
9 Inspection Company Licensing Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Department." The Department of Labor and Industry of the
15 Commonwealth.
16 "Fund." The Home Inspection Fund established in section 8.
17 "Home inspection company." A business or person who, for
18 compensation, engages in the business of inspecting residential
1 homes for prospective buyers.
2 Section 3. Home inspection companies to be licensed and bonded.
3 (a) License.--The department shall establish a system for
4 the licensure of home inspection companies. No person may engage
5 in the business of a home inspection company unless it is
6 licensed by the department. A home inspection company shall be
7 licensed by the department upon submission of an application and
8 payment of a reasonable application fee sufficient to cover the
9 cost of implementing this act and to be prescribed by the
10 department. The bond required by subsection (b) shall accompany
11 the application. The department shall require biennial renewal
12 of application for licensure and may stagger the renewal dates
13 and adjust the application fees accordingly. The department may
14 establish the criteria for the granting of a license.
15 (b) Bond.--
16 (1) The department may not issue or renew a license
17 under subsection (a) unless the home inspection company has
18 filed with the department an approved bond payable to the
19 Commonwealth in an amount to be established by the department
20 by regulation. The bond shall be executed by a surety company
21 authorized by the laws of this Commonwealth to transact
22 business in this Commonwealth. The bond shall be for the use
23 of the Commonwealth and for any person or persons who may
24 have a cause of action against the home inspection company.
25 (2) The condition of the bond shall be that the home
26 inspection company will comply with and abide by this act and
27 will pay to the Commonwealth or any person any and all money
28 that may come due the Commonwealth or the person by virtue of
29 this act.
30 (3) If any person is aggrieved by the misconduct of a
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1 home inspection company and recovers a judgment against the
2 home inspection company therefor, the person may, on any
3 execution issued under the judgment, maintain an action upon
4 the bond of the home inspection company in any court having
5 jurisdiction of the amount claimed.
6 Section 4. Investigations.
7 The department shall, on its own initiative or in response to
8 complaints, investigate on a continuous basis and gather
9 evidence of violations of this act, or any regulation adopted
10 under this act, by home inspection companies.
11 Section 5. Grounds for fines or revocations.
12 The department may fine or refuse to grant or may suspend or
13 revoke a license of a home inspection company for any of the
14 following acts or omissions related to the conduct of the
15 business of inspecting used residential homes by the home
16 inspection company:
17 (1) Making or authorizing a material statement, written
18 or oral, which is known to be untrue or misleading.
19 (2) Failing to provide a customer with a copy of an
20 inspection report.
21 (3) Failing to insure or guarantee for a reasonable
22 period of time those items which were inspected and found to
23 be in good condition.
24 (4) A pattern of conduct which includes any of the acts
25 or omissions prohibited in this section or any other
26 unconscionable or fraudulent commercial practice prohibited
27 by the department pursuant to regulations promulgated under
28 this act.
29 Section 6. Notice to home inspection company.
30 Upon refusal to grant a license, or the suspension or
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1 revocation of a license of a home inspection company, the
2 department shall notify the company in writing by certified
3 mail. The company shall be given a hearing by the department if,
4 within 60 days thereafter, it files with the department a
5 written request for a hearing concerning the refusal to grant a
6 license or suspension or revocation of the license.
7 Section 7. Civil penalties.
8 The department may impose upon a home inspection company
9 violating this act a civil penalty of not more than $2,000 for
10 the first offense and not more than $5,000 for the second and
11 each subsequent offense. This penalty shall be issued for and
12 recovered by and in the name of the department and shall be
13 collected and enforced by summary proceedings.
14 Section 8. Home Inspection Fund.
15 (a) Establishment.--There is hereby established in the State
16 Treasury, the Home Inspection Fund. The fund shall be
17 administered by the department and shall be used for the
18 administration and enforcement of this act.
19 (b) Disposition of penalties and appropriation.--All civil
20 penalties collected under this act shall be paid into the fund.
21 All moneys in the fund are hereby appropriated to the Department
22 of Labor and Industry on a continuing basis for administration
23 of this act.
24 Section 9. Rules and regulations.
25 The department shall, in the manner provided by law,
26 promulgate the rules and regulations necessary to carry out this
27 act.
28 Section 10. Effective date.
29 This act shall take effect in 90 days.
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