PRINTER'S NO. 959
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
21
Session of
2019
INTRODUCED BY HELM, KORTZ, BARRAR, BOBACK, BROWN, CALTAGIRONE,
CIRESI, A. DAVIS, T. DAVIS, DeLUCA, GILLEN, GOODMAN, HILL-
EVANS, IRVIN, MACKENZIE, MATZIE, McNEILL, MEHAFFIE, MILLARD,
MIZGORSKI, MURT, NEILSON, POLINCHOCK, RAVENSTAHL, READSHAW,
SAYLOR, STRUZZI, WARREN, WEBSTER AND JOZWIAK, MARCH 18, 2019
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, MARCH 18, 2019
AN ACT
Amending the act of May 23, 1945 (P.L.913, No.367), entitled "An
act relating to and regulating the practice of the profession
of engineering, including civil engineering, mechanical
engineering, electrical engineering, mining engineering and
chemical engineering, the profession of land surveying and
the profession of geology and constituent parts and
combinations thereof as herein defined; providing for the
licensing and registration of persons practicing said
profession, and the certification of engineers-in-training
and surveyors-in-training, and the suspension and revocation
of said licenses, registrations and certifications for
violation of this act; prescribing the powers and duties of
the State Registration Board for Professional Engineers, Land
Surveyors and Geologists, the Department of State and the
courts; prescribing penalties; and repealing existing laws,"
providing for the regulation of the practice of home
inspection; and making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title of the act of May 23, 1945 (P.L.913,
No.367), known as the Engineer, Land Surveyor and Geologist
Registration Law, is amended to read:
AN ACT
Relating to and regulating the practice of the profession of
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engineering, including civil engineering, mechanical
engineering, electrical engineering, mining engineering and
chemical engineering, the profession of land surveying [and],
the profession of geology and the profession of home
inspection and constituent parts and combinations thereof as
herein defined; providing for the licensing and registration
of persons practicing said profession, and the certification
of engineers-in-training [and], surveyors-in-training,
geologists-in-training and home inspectors-in-training and
the suspension and revocation of said licenses, registrations
and certifications for violation of this act; prescribing the
powers and duties of the State Registration Board for
Professional Engineers, Land Surveyors and Geologists, the
Department of State and the courts; prescribing penalties;
and repealing existing laws.
Section 2. Section 2 of the act is amended by adding
subsections to read:
Section 2. Definitions.--As used in this act--
* * *
(u) "Home Inspection" shall mean a noninvasive visual
examination of the systems and the essential components of a
residential dwelling designed to identify material defects in
those systems and components and performed for a fee in
connection with or preparation for a proposed or possible
residential real estate transfer. The term:
(1) Includes a consultation regarding the property that is
represented to be a home inspection or that is described by a
confusingly similar term.
(2) Does not include any of the following:
(i) An examination of a single system or component of a
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residential dwelling, such as an electrical or plumbing system
or roof.
(ii) An examination that is limited to inspection for or of
one or more of the following:
(A) Wood destroying insects.
(B) Underground tanks and wells.
(C) Septic systems.
(D) Swimming pools and spas.
(E) Alarm systems.
(F) Air and water quality.
(G) Tennis courts and playground equipment.
(H) Pollutants, toxic chemicals and environmental hazards.
(iii) An examination associated with moving into or out of a
leased home.
(v) "Home Inspection Report" shall mean a typewritten report
on the results of a home inspection.
(w) "Home Inspector" shall mean an individual licensed by
the board to perform home inspections. The term does not include
an individual licensed under any of the following laws when
acting under the individual's registration or license:
(1) This act, as to professional engineers, professional
land surveyors and professional geologists.
(2) The act of January 24, 1966 (1965 P.L.1535, No.537),
known as the "Pennsylvania Sewage Facilities Act."
(3) The act of March 1, 1974 (P.L.90, No.24), known as the
"Pennsylvania Pesticide Control Act of 1973."
(4) The act of December 14, 1982 (P.L.1227, No.281), known
as the "Architects Licensure Law."
(5) The act of July 9, 1987 (P.L.238, No.43), known as the
"Radon Certification Act."
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(x) "Home Inspector-in-training" shall mean a candidate for
licensure as a home inspector who has been granted a certificate
as a home inspector-in-training who shall be eligible, upon
completion of the requisite number of mentored home inspections,
for the board-approved examination prescribed for licensure as a
home inspector.
(y) "Material Defect" shall mean a problem with a
residential real property or any portion of it that would have a
significant adverse impact on the value of the property or that
involves an unreasonable risk to people on the property. The
fact that an essential component, system or subsystem is near,
at or beyond the end of its normal useful life is not by itself
a material defect.
(z) "Client" shall mean, when the term is applied to a home
inspector, a person or person acting through a legal
representative who contracts with a licensed home inspector to
obtain a home inspection and subsequent written home inspection
report.
Section 3. Sections 3, 4(a), (b) introductory paragraph, (1)
and (3), (c), (d), (f), (g) and (i) and 4.1(a), (c) and (f) of
the act are amended to read:
Section 3. Practice of Engineering, Land Surveying [or],
Geology or Home Inspection Without Licensure and Registration
Prohibited.--(a) In order to safeguard life, health or property
and to promote the general welfare, it is unlawful for any
person to practice or to offer to practice engineering in this
Commonwealth, unless he is licensed and registered under the
laws of this Commonwealth as a professional engineer, for any
person to practice or to offer to practice land surveying,
unless he is licensed and registered under the laws of this
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Commonwealth as a professional land surveyor [or], for any
person to practice or to offer to practice geology unless he is
licensed and registered under the laws of this Commonwealth as a
professional geologist or for any person to practice or to offer
to practice home inspection unless he is licensed and registered
under the laws of this Commonwealth as a home inspector.
Individuals licensed as professional engineers, professional
land surveyors or registered landscape architects may perform
geological work which is incidental to their engineering,
surveying or landscape architecture without being licensed as a
professional geologist.
(b) A person shall be construed to practice or offer to
practice engineering, land surveying [or], geology or home
inspection who practices any branch of the profession of
engineering, land surveying [or], geology or home inspection; or
who, by verbal claim, sign, advertisement, letterhead, card, or
in any other way represents himself to be an engineer, land
surveyor [or], geologist or home inspector, or through the use
of some other title implies that he is an engineer, land
surveyor [or], geologist or home inspector or that he is
registered under this act; or who holds himself out as able to
perform, or who does perform any engineering, land surveying
[or], geological or home inspection service or work or any other
service designated by the practitioner or recognized as
engineering, land surveying [or], geology or home inspection.
Section 4. General Powers of Board.--The board shall have
power--
(a) Approval of Engineering, Surveying [and], Geology and
Home Inspection Curricula.--To investigate and to approve or
disapprove engineering, surveying [and], geology and home
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inspection curricula of this State, and other states,
territories and countries for the education of students desiring
to be licensed to engage in the practice of engineering, land
surveying [or], geology or home inspection, and to revoke or
suspend approvals where they are no longer deemed proper.
(b) Licensing Professional Engineers, Professional Land
Surveyors [and], Professional Geologists and Home Inspectors.--
To provide for and to regulate the licensing, and to license to
engage in the practice of engineering, land surveying [or],
geology or home inspection any person of good moral character
and repute who speaks and writes the English language, if such
person either--
(1) Holds an unexpired license or certificate of
registration issued to him by proper authority of some other
state, foreign country or territory of the United States in
which the requirements and qualifications to engage in the
practice of engineering, land surveying [or], geology or home
inspection were at the time of the initial issuance of such
license or certificate of registration at least equal to the
existing standards of this Commonwealth: Provided, however, That
such other state, territory or foreign country shall similarly
license or register professional engineers, professional land
surveyors [or], professional geologists or home inspectors
licensed and registered in this Commonwealth. A person may be
licensed under this subsection without examination.
* * *
(3) Complies with the education and experience criteria and
successfully completes the two-examination process for licensing
as a professional engineer, as set forth in section 4.2, or as a
professional land surveyor, as set forth in section 4.3 [or],
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the examination process for licensing as a professional
geologist as set forth in section 4.4 or the examination process
for licensing as a home inspector as set forth in section 4.6.
(c) Investigations of Applications; Determination of
Competency of Applicants.--To investigate the allegations
contained in any application for licensure or certification
under this act in order to determine the truth of such
allegations and to determine the competency of any person
applying for licensure to assume responsible charge of the work
involved in the practice of engineering, land surveying [or],
geology or home inspection, such competency to be determined by
the grade and character of the engineering work, the grade and
character of the land surveying work [or], the grade and
character of geologic work or the grade and character of home
inspection work actually performed. In relation to engineers and
surveyors, the mere execution as a contractor of work designed
by a professional engineer, or the supervision of the
construction of such work as a foreman or superintendent, or the
operation or maintenance of machinery or equipment, or work
performed as a salesman of engineering equipment or apparatus,
shall not be deemed to be active practice in engineering, unless
such work has involved the actual practice of engineering.
Engineering and land surveying work, performed under the
supervision of a professional engineer or land surveyor,
respectively, shall be given full credit. Whenever the board
determines otherwise than by examination, that an applicant has
not produced sufficient evidence to show that he is competent to
be placed in responsible charge and shall refuse to examine or
to license such applicant, it shall set forth in writing its
findings and the reasons for its conclusions and furnish a copy
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thereof to the applicant.
(d) Examinations; Fees.--To prescribe the subjects, manner,
time and place of examinations for licenses as professional
engineers, professional land surveyors [and], professional
geologists and home inspectors and for certificates for
engineers-in-training, geologists-in-training [and], surveyors-
in-training and home inspectors-in-training, and the filing of
applications for such examinations, and to prepare or provide
for the preparation of such examinations, conduct or provide for
the conduct of such examinations, to make written reports of
such examinations, which reports shall be preserved for a period
of not less than three years, to collect such fees for such
examinations, and for licenses and certificates issued without
examination, as may be fixed according to law, and to issue
licenses and certificates to such persons as successfully pass
such examinations.
* * *
(f) Roster of Registrants.--To keep a roster showing the
names and addresses of professional engineers, professional land
surveyors [and], professional geologists and home inspectors
licensed under this act, and under prior laws, and registered by
the board, which roster shall be published in booklet form by
the board following each biennial renewal. Copies of the roster
shall be furnished upon request to each registered or certified
person and may be furnished to other persons upon such terms as
the board shall prescribe: Provided, however, That copies of the
roster shall be furnished to the Planning Commission and the
prothonotary of each county in the Commonwealth.
(g) Suspension and Revocation of Licenses; Registrations and
Certificates; Reinstatements.--To suspend or revoke the license
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and registration of any professional engineer, professional land
surveyor [or], professional geologist or home inspector or the
certificate of any engineer-in-training, geologist-in-training
[or], surveyor-in-training or home inspector-in-training, who is
found guilty by the board, by a majority vote of all its
members, of the practice of any fraud, deceit or
misrepresentation in obtaining his license, certification or
registration, or of gross negligence, incompetency or misconduct
in the practice of engineering, in the practice of land
surveying [or], in the practice of geology or in the practice of
home inspection, or of violation of the code of ethics of the
engineering profession, and to reinstate suspended licenses,
registrations and certificates in any cases where a majority of
all the members of the board shall determine the same to be just
and proper. Unless ordered to do so by a court, the board shall
not reinstate the license, certificate or registration of a
person to practice as a professional engineer, professional land
surveyor, professional geologist, home inspector or an engineer-
in-training, geologist-in-training [or a], surveyor-in-training
or home inspector-in-training which has been revoked, and such
person shall be required to apply for a license, certificate or
registration after a period of five years in accordance with
section 2 if he desires to practice at any time after such
revocation. The board shall require a person whose license or
registration has been suspended or revoked to return the license
or registration in such manner as the board directs. Failure to
do so shall be a misdemeanor of the third degree. Misconduct in
the practice of engineering, land surveying [or], geology or
home inspection shall include, but not be limited to conviction
for a criminal offense such as extortion, bribery or fraud or
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entry of a plea of nolo contendere to a charge thereof for
conduct relating to the practice of engineering, land surveying
[or], geology or home inspection, or has violated any provision
of this act or any regulation promulgated by the board. For the
purposes of this subsection, the code of ethics is as follows:
It shall be considered unprofessional and inconsistent with
honorable and dignified bearing for any professional engineer,
professional land surveyor [or], professional geologist or home
inspector:
(1) To act for his client or employer in professional
matters otherwise than as a faithful agent or trustee, or to
accept any remuneration other than his stated recompense for
services rendered.
(2) To attempt to injure falsely or maliciously, directly or
indirectly, the professional reputation, prospects or business
of anyone.
(3) To attempt to supplant another engineer, land surveyor
[or], geologist or home inspector after definite steps have been
taken toward his employment.
(4) To compete with another engineer, land surveyor [or],
geologist or home inspector for employment by the use of
unethical practices.
(5) To review the work of another engineer, land surveyor
[or], geologist or home inspector for the same client, except
with the knowledge of such engineer, land surveyor [or],
geologist or home inspector , or unless the connection of such
engineer, land surveyor [or], geologist or home inspector with
the work has terminated.
(6) To attempt to obtain or render technical services or
assistance without fair and just compensation commensurate with
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the services rendered: Provided, however, the donation of such
services to a civic, charitable, religious or eleemosynary
organization shall not be deemed a violation.
(7) To advertise in self-laudatory language, or in any other
manner, derogatory to the dignity of the profession.
(8) To attempt to practice in any field of engineering, land
surveying [or], geology or home inspection in which the
registrant is not proficient.
(9) To use or permit the use of his professional seal on
work over which he was not in responsible charge. This clause
does not apply to home inspectors.
(10) To aid or abet any person in the practice of
engineering, land surveying [or], geology or home inspection not
in accordance with the provision of this act or prior laws.
The board shall appoint, with the approval of the Governor,
such hearing examiners as shall be necessary to conduct hearings
as may be required under this subsection.
The board shall have the power to adopt and promulgate rules
and regulations setting forth the functions, powers, standards
and duties to be followed by the hearing examiners.
The hearing examiners shall have the power to conduct
hearings in accordance with the regulations of the board, and to
issue subpoenas requiring the attendance and testimony of
individuals or the production of, pertinent books, records,
documents and papers by persons whom they believe to have
information relevant to any matter pending before the examiner.
Such examiner shall also have the power to administer oaths.
The hearing examiner shall hear evidence submitted and
arguments of counsel, if any, with reasonable dispatch, and
shall promptly record his decision, supported by findings of
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fact, and a copy thereof shall immediately be sent to the board
and to counsel of record, or the parties, if not represented.
If application for review is made to the board within twenty
days from the date of any decision made as a result of a hearing
held by a hearing examiner, the board shall review the evidence,
and if deemed advisable by the board, hear argument and
additional evidence. As soon as practicable, the board shall
make a decision and shall file the same with its finding of the
facts on which it is based and send a copy thereof to each of
the parties in dispute.
* * *
(i) Administration and Enforcement of Laws.--To administer
and enforce the laws of the Commonwealth relating to the
practice of engineering, land surveying [and], geology and home
inspection, and to instruct and require its agents to bring
prosecutions for unauthorized and unlawful practices.
* * *
Section 4.1. State Registration Board for Professional
Engineers, Land Surveyors and Geologists.--(a) There is hereby
established within the Department of State the State
Registration Board for Professional Engineers, Land Surveyors
and Geologists. The board shall consist of the Commissioner of
Professional and Occupational Affairs, three members appointed
by the Governor who shall be persons representing the public at
large and [nine] eleven members appointed by the Governor, five
of whom shall be registered professional engineers, two of whom
shall be registered professional land surveyors [and], two of
whom shall be registered professional geologists and two of whom
shall be licensed home inspectors. Any land surveyor appointed
to serve on the board shall have received the land surveyor
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license upon the passage of the appropriate examination. Any
geologist licensed under section 4.4 of this act shall be
eligible for appointment to the board. The professional members
of the board shall be so selected that not more than two of them
shall specialize in any one of the five major disciplines of
engineering: civil, mining and metallurgical, mechanical,
electrical and chemical. Each member of the board shall be a
citizen of the United States and a resident of this
Commonwealth. Each professional member shall have been engaged
in the practice of the respective profession for at least ten
years and shall have been in responsible charge of work for at
least five years. The home inspectors initially appointed
pursuant to this subsection need not be licensed by the board
but, at the time of appointment, must have satisfied the
education and experience requirements of this act for licensure
as a home inspector.
* * *
(c) [Seven] Eight members of the board shall constitute a
quorum. A member may not be counted as part of a quorum or vote
on any issue, other than temporary and automatic suspension,
under this act unless he is physically in attendance at the
meeting.
* * *
[(f) The board is subject to evaluation, review and
termination within the time and in the manner provided in the
act of December 22, 1981 (P.L.508, No.142), known as the "Sunset
Act."]
* * *
Section 4. Section 4.5(a) and (c) introductory paragraph of
the act are amended and the section is amended by adding a
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subsection to read:
Section 4.5. Continuing Professional Competency
Requirements.--(a) In order to help safeguard life, health and
property and to promote the public welfare, the practice of
professional engineering, professional land surveying [and],
professional geology and professional home inspection in this
Commonwealth requires continuing professional competency.
* * *
(c) [Each] Except as provided under subsection (c.1), each
licensee shall be required to obtain twenty-four PDH units
during the biennial renewal period. If a licensee exceeds the
requirement in any renewal period, [a maximum of twelve] the
excess PDH units may be carried forward into the subsequent
renewal period. PDH units may be earned as follows:
* * *
(c.1) A home inspector shall be required to obtain thirty-
two PDH units during the biennial renewal period. PDH units may
be earned as follows:
(1) Completion of continuing education courses in the field
of home inspection during the immediately preceding two years as
approved by the board.
(2) Three of the total required PDH units must focus on the
difference between the National Manufactured Housing
Construction and Safety Standards Act of 1974 (Public Law 93-
383, 42 U.S.C. § 5401 et seq.) and the act of May 11, 1972
(P.L.286, No.70), known as the "Industrialized Housing Act," and
the installation of manufactured and modular homes.
* * *
Section 5. The act is amended by adding a section to read:
Section 4.6. Procedure for Licensing as Home Inspectors.--
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(a) An applicant shall be considered to be qualified for a
license as a home inspector if the applicant submits proof
satisfactory to the board of all of the following:
(1) The applicant is of good moral character.
(2) The applicant is at least eighteen years of age.
(3) The applicant has a high school diploma or its
equivalent or equivalent life or occupational experience.
(4) The applicant has completed a board-approved training
program or course of study involving the performance of home
inspections which shall consist of the following:
(i) No less than one hundred twenty hours of classroom
instruction which include six hours of education providing the
basic knowledge on the differences between the National
Manufactured Housing Construction and Safety Standards Act of
1974 (Public Law 93-383, 42 U.S.C. § 5401 et seq.) and the act
of May 11, 1972 (P.L.286, No.70), known as the "Industrialized
Housing Act," and the installation of manufactured and modular
homes.
(ii) No less than seventy-five mentored home inspections
completed in the presence of and under the direct supervision of
a home inspector licensed in this Commonwealth who oversees and
takes full responsibility for the home inspection and any report
provided to the client.
(5) The applicant has passed a board-approved
psychometrically valid licensing examination to be administered
pursuant to section 812.1 of the act of April 9, 1929 (P.L.177,
No.175), known as "The Administrative Code of 1929."
(6) The application is accompanied by the application fee as
established by the board by regulation.
(7) The applicant is not addicted to the habitual use of
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alcohol, narcotics or other habit-forming drugs.
(8) The applicant has not been convicted of a felony under
the act of April 14, 1972 (P.L.233, No.64), known as "The
Controlled Substance, Drug, Device and Cosmetic Act," or of an
offense under the laws of another jurisdiction which if
committed in this Commonwealth would be a felony under "The
Controlled Substance, Drug, Device and Cosmetic Act," unless the
applicant otherwise satisfies the qualifications contained in
this act and:
(i) at least five years have elapsed from the date of
conviction; or
(ii) the applicant satisfactorily demonstrates to the board
that the applicant has made significant progress in personal
rehabilitation since the conviction such that licensure of the
applicant should not be expected to create a substantial risk of
harm to the health and safety of clients or the public or a
substantial risk of further criminal violation,
in which case the board may issue a probationary license for the
remainder of the five years required in subclause (i).
(b) The board shall issue a license as a home inspector to
an applicant who applies within two years of the effective date
of this subsection and complies with all of the following:
(1) Is an active home inspector.
(2) Meets the qualifications described in subsection (a)(1),
(2), (3), (6), (7) and (8).
(3) Submits proof satisfactory to the board that the
applicant has:
(i) been in active, continuous practice for at least five
years immediately preceding the effective date of this section;
or
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(ii) has performed or participated in one hundred home
inspections and has passed a recognized or accredited
examination testing knowledge of the proper procedures for
conducting a home inspection.
(c) An individual may not practice home inspection or hold
himself out as a home inspector unless licensed by the board
except for the following:
(1) An individual licensed as a professional engineer under
this act.
(2) An individual licensed under the act of December 14,
1982 (P.L.1227, No.281), known as the "Architects Licensure
Law."
(d) Notwithstanding subsection (c), a person licensed or
registered as a professional engineer under this act, or a
person licensed or registered under the "Architects Licensure
Law," must comply with subsection (j) and sections 11.4, 11.5
and 11.6 when performing a home inspection. A person licensed or
registered as a professional engineer, or licensed or registered
as an architect, who violates this subsection shall be subject
to disciplinary action, including license or registration
suspension and revocation, and penalties under this act and the
"Architects Licensure Law," respectively.
(e) An individual who holds a license or is maintained on
inactive status may use the title "Licensed Home Inspector" and
the abbreviation "L.H.I." No other individual may use the title
"Licensed Home Inspector" or the title "Home Inspector" or hold
himself out to others as a home inspector. This subsection
includes advertising as a home inspector and adopting or using a
title or description, or a derivative of "Licensed Home
Inspector" or "Home Inspector" and their related abbreviations,
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which implies directly or indirectly that home inspection
services are being provided.
(f) A license under this section is not transferable.
(g) The board may grant a reciprocal license to an applicant
who is licensed or certified as a home inspector or similar
practice in another state and has demonstrated qualifications
which equal or exceed those required under this act in the
determination of the board. The board shall not grant a license
under this section to an applicant unless the state in which the
applicant is licensed affords reciprocal treatment to
individuals who are residents of this Commonwealth and who are
licensed under this act. The applicant must also submit a
notarized statement that the applicant has studied, is familiar
with and will abide by this act and regulations promulgated by
the board.
(h) The board may issue a home inspector license without
examination to an applicant holding a home inspector license in
another state who submits proof satisfactory to the board of all
of the following:
(1) The applicant is of good moral character.
(2) The applicant holds an unrestricted and active home
inspector license from another state whose licensure
requirements are substantially equivalent to the requirements
for licensure in this Commonwealth.
(3) The applicant has submitted an application accompanied
by the application fee.
(4) The applicant has not been convicted of a felony under
"The Controlled Substance, Drug, Device and Cosmetic Act," or of
an offense under the laws of another jurisdiction which if
committed in this Commonwealth would be a felony under "The
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Controlled Substance, Drug, Device and Cosmetic Act," unless the
applicant otherwise satisfies the qualifications contained in
this act and:
(i) at least five years have elapsed from the date of
conviction; or
(ii) the applicant satisfactorily demonstrates to the board
that the applicant has made significant progress in personal
rehabilitation since the conviction such that licensure of the
applicant should not be expected to create a substantial risk of
harm to the health and safety of clients or the public or a
substantial risk of further criminal violation, in which case
the board may issue a probationary license for the remainder of
the five years required in subclause (i).
(i) No agency or political subdivision of this Commonwealth,
other than the board, shall impose the following on individuals
licensed under this section:
(1) A registration or licensing requirement for conducting
home inspections.
(2) A license fee to obtain a local license, except that
this prohibition shall not prevent a local government from
imposing an occupational license tax on a person operating as a
home inspector within the jurisdiction of the local government.
(j) A person licensed as a home inspector shall maintain
insurance against errors and omissions in the performance of a
home inspection and general liability, with coverages of not
less than two hundred fifty thousand dollars per occurrence and
five hundred thousand dollars in the aggregate and with
deductibles of not more than fifteen thousand dollars. An
applicant must provide proof that the applicant has obtained
professional liability insurance. It is sufficient if the
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applicant files with the application a copy of a letter from the
applicant's professional liability insurance carrier indicating
that the applicant will be covered against professional
liability in the required amounts effective upon the issuance of
the applicant's license to practice home inspection in this
Commonwealth. Upon issuance of the license, the licensee must,
within thirty days, submit to the board the certificate of
insurance or a copy of the policy declaration page. A home
inspector shall maintain professional liability insurance for at
least one year after the latest home inspection report the home
inspector delivers, unless the home inspection report was
delivered prior to the effective date of this section.
(k) Nothing in this act shall be construed to allow a home
inspector who is not licensed under any of the following laws to
perform any activity that would constitute the practice of the
profession regulated by that law:
(1) This act, as to the practice of engineering, land
surveying or geology.
(2) The act of January 24, 1966 (1965 P.L.1535, No.537),
known as the "Pennsylvania Sewage Facilities Act."
(3) The act of March 1, 1974 (P.L.90, No.24), known as the
"Pennsylvania Pesticide Control Act of 1973."
(4) The "Architects Licensure Law."
(5) The act of July 9, 1987 (P.L.238, No.43), known as the
"Radon Certification Act."
(l) The requirements of this act relating to the licensing
of home inspectors shall not affect the obligations or
immunities of an individual licensed under the act of February
19, 1980 (P.L.15, No.9), known as the "Real Estate Licensing and
Registration Act," that are imposed or provided under that act
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or 68 Pa.C.S. Ch. 73 (relating to seller disclosures) when the
individual is acting under the individual's license, nor the
obligations or immunities of an individual certified under the
act of July 10, 1990 (P.L.404, No.98), known as the "Real Estate
Appraisers Certification Act," when the individual is acting
under the individual's license.
(m) A home inspector-in-training certificate holder shall
keep a record of the mentored home inspections completed, which
shall, at a minimum, include the following information:
(1) Date and time of the inspection.
(2) Address of the residence inspected.
(3) Business name of the supervising inspector.
(4) Name of the supervising inspector.
(5) License number of the supervising inspector.
(6) Signature of the supervising inspector.
(n) As used in this section, the term "convicted" includes a
judgment, an admission of guilt or a plea of nolo contendere.
Section 6. Section 5(a), (b), (c), (d) and (e) of the act
are amended and the section is amended by adding a subsection to
read:
Section 5. Exemption from Licensure and Registration.--
Except as specifically provided in this section, this act shall
not be construed to require licensure and registration in the
following cases:
(a) The practice of engineering, land surveying or geology
by any person who acts under the supervision of a professional
engineer, professional land surveyor or geologist, respectively,
or by an employe of a person lawfully engaged in the practice of
engineering, land surveying or geology and who, in either event,
does not assume responsible charge of design or supervisions[;].
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(b) The practice of engineering, land surveying or geology,
not exceeding thirty days in the aggregate in one calendar year,
by a nonresident not having a place of business in this
Commonwealth, if such person is legally qualified to engage in
the practice of engineering, land surveying or geology in the
state or territory of his residence: Provided, That standards of
such state or territory are at least equal to the standards of
this Commonwealth[;].
(c) The practice of engineering, land surveying [or],
geology or home inspection by officers and employes of the
United States Government for the said government[;] and the
practice of home inspection by an officer or employe of a
municipality or local authority when acting in the individual's
official capacity.
(d) Except as otherwise provided in subsection (g) of this
section, the practice of engineering or land surveying by a
regular employe of a public utility company, as defined by the
Public Utility Code (66 Pa.C.S. § 101 et seq.) in connection
with the facilities of such public utility, which are subject to
regulation by the Pennsylvania Public Utility Commission:
Provided, That such public utility shall employ at least one
professional engineer, as defined in this act, who shall be in
responsible charge of such utility's engineering work and shall
employ at least one professional land surveyor, as defined in
this act, who shall be in responsible charge of such utility's
land surveying[;].
(e) The practice of architecture by a duly registered
architect, and the doing of such engineering work as is
incidental to his architectural work[;].
* * *
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(l) The performance of rental property inspections by an
employe of a property management entity.
Section 7. Sections 6, 7(a), 9(a) and (c), 10.2, 11(a) and
(b) and 11.1 of the act are amended to read:
Section 6. Practice by Firms and Corporations.--(a) The
practice of engineering, of land surveying and of geology being
the function of an individual or of individuals working in
concerted effort, it shall be unlawful for any firm or
corporation to engage in such practice, or to offer to practice,
or to assume use or advertise any title or description,
including the use of the term "engineer" or "engineering" in its
firm or corporate name, conveying the impression that such firm
or corporation is engaged in or is offering to practice such
profession, unless the directing heads and employes of such firm
or corporation in responsible charge of its activities in the
practice of such profession are licensed and registered in
conformity with the requirements of this act, and whose name,
seal and signature, along with the date of signature, shall be
stamped on all plans, specifications, plats and reports issued
by such firm or corporation.
(b) A firm or corporation may not employ an individual in
home inspection unless the individual is licensed as a home
inspector by the board.
(c) A firm or corporation may not utilize in connection with
a business name or activity the words "home inspector," "home
inspection" or a derivative of "home inspector" or "home
inspection" and abbreviations, which implies directly or
indirectly that home inspection services are being provided,
unless the services of the business are provided by licensed
home inspectors.
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Section 7. Seal of Registrants.--(a) Each person,
registered under this act, shall obtain a seal of a design
authorized by the board which shall bear the registrant's name
and number and the legend "Registered Professional Engineer,"
"Registered Professional Land [Surveyor" or] Surveyor,"
"Registered Professional [Geologist."] or "Licensed Home
Inspector." Such seal, or a facsimile imprint of same, shall be
stamped on all plans, specifications, plats and reports issued
by a professional engineer, professional land surveyor [or],
professional geologist or home inspector.
* * *
Section 9. Fees.--(a) The fee for an applicant for
licensure as a professional engineer, professional land surveyor
[or], professional geologist or home inspector, including
examination, and for examination or certification, or both, as
an engineer-in-training or a surveyor-in-training, shall be as
fixed by the board by regulation and shall be subject to review
in accordance with the act of June 25, 1982 (P.L.633, No.181),
known as the "Regulatory Review Act." If the revenues generated
by fees, fines and civil penalties imposed in accordance with
the provisions of this act are not sufficient to match
expenditures over a two-year period, the board shall increase
those fees by regulation, subject to review in accordance with
the "Regulatory Review Act," such that the projected revenues
will meet or exceed projected expenditures.
* * *
(c) All persons now qualified and engaged in the practice of
engineering, land surveying [and], geology and home inspection,
or who shall hereafter be licensed by the board, shall register,
biennially, with the board and pay the fee for each biennial
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registration. All fees collected under the provisions of this
act shall be received by the board and shall be paid into the
Professional Licensure Augmentation Account.
Section 10.2. Reporting of Multiple Licensure.--Any licensee
of this Commonwealth who is also licensed to practice
engineering, land surveying [or], geology or home inspection in
any other state, territory or country shall report this
information to the board on the biennial renewal application.
Any disciplinary action taken in other states, territories or
countries shall be reported to the board on the biennial renewal
application or within ninety days of final disposition,
whichever is sooner. Multiple licensure shall be noted by the
board on the engineer's, land surveyor's [or], geologist's or
home inspector's record, and each state, territory or country
shall be notified by the board of any disciplinary action taken
against the licensee in this Commonwealth.
Section 11. Penalties.--(a) Whoever shall engage in the
practice of engineering, the practice of land surveying [or],
the practice of geology or the practice of home inspection
without being licensed and registered as required by this act,
or exempted therefrom, as provided in this act, or shall present
or attempt to use, as his own, the license or certificate of
registration of another, or shall give any false or forged
evidence of any kind to the board, or to any member thereof, in
order to obtain a license or registration as a professional
engineer, professional land surveyor [or], professional
geologist or home inspector or a certificate as an engineer-in-
training [or], surveyor-in-training, geologist-in-training or
home inspector-in-training, or shall use any expired, suspended
or revoked certificate of registration, or shall otherwise
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violate the provisions of this act, shall be guilty of a summary
offense and upon conviction thereof for a first offense, shall
be sentenced to pay a fine not exceeding one thousand dollars,
or suffer imprisonment, not exceeding three months, or both and
for a second or subsequent offense shall be guilty of a felony,
and upon conviction thereof, shall be sentenced to pay a fine of
not less than two thousand dollars but not more than five
thousand dollars or to imprisonment for not less than one year
but not more than two years, or both.
(b) In addition to any other civil remedy or criminal
penalty provided for in this act, the board, by a vote of the
majority of the maximum number of the authorized membership of
the board as provided by law, or by a vote of the majority of
the duly qualified and confirmed membership or a minimum of
[six] seven members, whichever is greater, may levy a civil
penalty of up to one thousand dollars on any current licensee
who violates any provision of this act or on any person who
practices the profession of an engineer, land surveyor [or],
geologist or home inspector without being properly licensed to
do so under this act. The board shall levy this penalty only
after affording the accused party the opportunity for a hearing,
as provided in Title 2 of the Pennsylvania Consolidated Statutes
(relating to administrative law and procedure).
* * *
Section 11.1. Injunction Against Unlawful Practice.--It
shall be unlawful for any person to practice, or attempt to
offer to practice, engineering, land surveying [or], geology or
home inspection, as defined in this act, without having at the
time of so doing a valid, unexpired, unrevoked and unsuspended
license issued under this act. The unlawful practice of
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engineering, land surveying [or], geology or home inspection, as
defined in this act, may be enjoined by the courts on petition
of the board or the Commissioner of Professional and
Occupational Affairs. In any such proceeding, it shall not be
necessary to show that any person is individually injured by the
actions complained of. If the respondent is found guilty of the
unlawful practice of engineering, land surveying [or], geology
or home inspection, the court shall enjoin him from so
practicing unless and until he has been duly licensed. Procedure
in such cases shall be the same as in any other injunction suit.
The remedy by injunction hereby given is in addition to any
other civil or criminal prosecution and punishment.
Section 8. The act is amended by adding sections to read:
Section 11.3. Degree of Care of Home Inspectors.--(a) A
home inspector shall conduct a home inspection with the degree
of care that a reasonably prudent home inspector would exercise.
In ascertaining the degree of care that would be exercised by a
reasonably prudent home inspector, a court shall consider the
standards of practice and codes of ethics as established by the
board by regulation.
(b) If immediate threats to health or safety are observed
during the course of the inspection and the home is occupied,
the home inspector shall disclose the immediate threats to
health or safety to the property owner and occupants of the
property at the conclusion of the home inspection. Posting a
notice on a form prescribed by the board by regulation on the
front door of the occupied home in a position that ensures the
occupants see the notice shall constitute proper disclosure.
Section 11.4. Consumer Remedies.--(a) The performance of a
home inspection is a service subject to the act of December 17,
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1968 (P.L.1224, No.387), known as the "Unfair Trade Practices
and Consumer Protection Law."
(b) The following acts engaged in by a home inspector, an
employer of a home inspector or another business or person that
controls or has a financial interest in the employer of a home
inspector shall be deemed to be an unfair or deceptive act or
practice as defined by section 2(4) of the "Unfair Trade
Practices and Consumer Protection Law":
(1) Performing or offering to perform for an additional fee
any repairs to a structure with respect to which the home
inspector, the employer of the home inspector or other business
or person has prepared a home inspection report within the
preceding twelve months, except that this clause shall not apply
to remediation for radon or wood-destroying insects.
(2) Inspecting for a fee any property in which the home
inspector, the employer of the home inspector or other business
or person has a financial interest or an interest in the
transfer of the property, including receipt of a commission as
an agent, unless the financial interest or interest in the
transfer of the property is disclosed in writing to the buyer
before the home inspection is performed and the buyer signs an
acknowledgment of receipt of the disclosure.
(3) Offering or delivering a commission, referral fee or
kickback to the seller of the inspected property or to an agent
for the seller or buyer for the referral of business to the home
inspector, the employer of the home inspector or other business
or person.
(4) Accepting an engagement to perform a home inspection or
to prepare a home inspection report in which the employment
itself or the fee payable for the inspection is contingent upon
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the conclusions in the report, preestablished or prescribed
findings or the closing of the transaction.
(c) A home warranty company that is affiliated with or
retains the home inspector does not violate subsection (b) if
the home warranty company performs repairs in accordance with
claims made under a home warranty contract.
(d) In addition to other remedies available under the
"Unfair Trade Practices and Consumer Protection Law" or other
applicable provision of law, the owner of a property on which
repairs are performed in violation of subsection (b)(1) shall be
entitled to a full refund of money paid for those repairs, and a
promissory note or another obligation to pay given to the person
performing those repairs shall be void.
Section 11.5. Home Inspection Contracts.--(a) A home
inspection contract must be typewritten and include all of the
following:
(1) Signature of client.
(2) Scope of home inspection.
(3) Fee charged to client.
(4) Contact information of home inspector.
(5) License number of home inspector.
(6) A statement explaining the confidentiality between the
home inspector and the client.
(b) The following types of provisions in a contract with a
home inspector for the performance of a home inspection are
contrary to public policy and the clause shall be unenforceable
as it relates to:
(1) A limitation on the liability of the home inspector for
gross negligence or willful misconduct.
(2) A waiver or modification of any provision of this
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section or section 11.3, 11.4, or 11.6.
Section 11.6. Home Inspection Reports.--(a) A home
inspection report must be typewritten and include all of the
following:
(1) A description of the scope of the inspection, including
identification of the essential components and systems and
subsystems covered by the report.
(2) A description of material defects noted during the
inspection, along with a recommendation that certain experts be
retained to determine the extent of the defects and the
corrective action that should be taken.
(3) If, at the time of the inspection, there is visible
evidence of the presence of interior mold, the home inspector
must disclose in the home inspection report the visible evidence
and the location and advise the client to obtain a professional
evaluation.
(4) The following statements, set forth conspicuously:
(i) A home inspection is intended to assist in evaluation of
the overall condition of the dwelling. The inspection is based
on observation of the visible and apparent condition of the
structure and its components on the date of inspection.
(ii) The results of this home inspection are not intended to
make a representation regarding the presence or absence of
latent or concealed defects that are not reasonably
ascertainable in a competently performed home inspection. No
warranty or guaranty is expressed or implied.
(iii) If the person conducting your home inspection is not a
licensed structural engineer or other professional whose license
authorizes the rendering of an opinion as to the structural
integrity of a building or the building's other component parts,
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you may be advised to seek a professional opinion as to any
defects or concerns mentioned in the report.
(iv) This home inspection report is not to be construed as
an appraisal and may not be used as such for any purpose.
(b) Except as otherwise required by this subsection or by
law, a home inspector may not deliver a home inspection report
to a person other than the client of the home inspector without
the client's consent. The property owner shall have the right,
upon request, to receive without charge a copy of a home
inspection report from the person for whom the home inspection
report was prepared. If immediate threats to health or safety
are observed during the course of the inspection and if the
premises are occupied, the client hereby consents to allow the
home inspector to disclose the immediate threats to health or
safety to the property owner and occupants of the property.
(c) A home inspector may not express either orally or in
writing an estimate of the cost to repair a defect found during
a home inspection.
(d) A home inspector shall not be held liable for the
contents or omissions of a home inspection report if relied upon
by any individual or person other than the client as identified
by the executed contract for the specific home inspection.
(e) An action to recover damages arising from a home
inspection report must be commenced within one year after the
date the report is delivered regardless of when the claim is
discovered by the client.
Section 9. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate this act.
(2) The provisions of 68 Pa.C.S. Ch. 75 are repealed.
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Section 10. The State Registration Board for Professional
Engineers, Land Surveyors and Geologists shall promulgate final
regulations to carry out this act within 18 months of the
effective date of this section. The board shall report, within
60 days of the effective date of this section and every 30 days
thereafter, on the status of the regulations to the Consumer
Protection and Professional Licensure Committee of the Senate
and the Professional Licensure Committee of the House of
Representatives.
Section 11. This act shall take effect as follows:
(1) The following provisions shall take effect
immediately:
(i) The amendment of section 4.1(a), (c) and (f) of
the act.
(ii) Section 10 of this act.
(iii) This section.
(2) The amendment or addition of the following
provisions shall take effect in two years:
(i) Section 2(u), (v), (w) and (x) of the act.
(ii) Section 3 of the act.
(iii) Section 4(a), (b)(1) and (3), (c), (d), (f),
(g) and (i) of the act.
(iv) Section 4.5(a), (c) introductory paragraph and
(c.1) of the act.
(v) Section 4.6 of the act, except as set forth in
paragraph (3).
(vi) Section 5(a), (b), (c), (d), (e) and (l) of the
act.
(vii) Section 6 of the act.
(viii) Section 7(a) of the act.
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(ix) Section 9(a) and (c) of the act.
(x) Section 10.2 of the act.
(xi) Section 11(a) and (b) of the act.
(xii) Section 11.1 of the act.
(xiii) Section 11.3 of the act.
(xiv) Section 11.4 of the act.
(xv) Section 11.5 of the act.
(xvi) Section 11.6 of the act.
(xvii) Section 9 of this act.
(3) The addition of section 4.6(c) and (d) of the act
shall take effect 90 days after the effective date of the
regulations promulgated under section 10 of this act.
(4) The remainder of this act shall take effect in 60
days.
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