Regular Session 2019-2020 House Bill 0021 P.N. 2581

PRIOR PRINTER'S NO. 959

PRINTER'S NO. 2581

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

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, JOZWIAK, MOUL, MARKOSEK AND

MULLINS, MARCH 18, 2019

AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF

REPRESENTATIVES, AS AMENDED, SEPTEMBER 25, 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. AMENDING THE ACT OF

JULY 10, 1990 (P.L.404, NO.98), ENTITLED "AN ACT PROVIDING

FOR THE CERTIFICATION OF REAL ESTATE APPRAISERS; SPECIFYING

REQUIREMENTS FOR CERTIFICATION; PROVIDING FOR SANCTIONS AND

PENALTIES; AND MAKING AN APPROPRIATION," FURTHER PROVIDING

FOR TITLE OF ACT, FOR DEFINITIONS, FOR STATE BOARD OF

CERTIFIED REAL ESTATE APPRAISERS, FOR POWERS AND DUTIES OF

BOARD AND FOR APPLICATION AND QUALIFICATIONS; PROVIDING FOR

APPLICATION AND QUALIFICATIONS OF HOME INSPECTORS AND HOME

INSPECTORS-IN-TRAINING, FOR CONDUCT OF HOME INSPECTION AND

FOR FIRM OR CORPORATION; FURTHER PROVIDING FOR RECIPROCITY,

FOR CERTIFICATION RENEWAL, LICENSURE RENEWAL AND RECORDS, FOR

DISCIPLINARY AND CORRECTIVE MEASURES, FOR REINSTATEMENT OF

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CERTIFICATE OR LICENSE, FOR REPORTING OF MULTIPLE

CERTIFICATION, FOR SURRENDER OF SUSPENDED OR REVOKED

CERTIFICATE OR LICENSE, FOR PENALTIES AND FOR INJUNCTIVE

RELIEF; PROVIDING FOR REMEDIES FOR HOME INSPECTION SERVICES

CONSUMERS, FOR HOME INSPECTION CONTRACTS AND FOR HOME

INSPECTION REPORTS; 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

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

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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

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.

(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:

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(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."

(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

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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

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

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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

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

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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],

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.

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,

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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

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

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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

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

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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

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],

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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

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.

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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

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

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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

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.

* * *

quorum. A member may not be counted as part of a quorum or vote

on any issue, other than temporary and automatic suspension,

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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

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.

* * *

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

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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.--

(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

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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

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

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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;

(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.

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

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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,

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.

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(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

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

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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

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."

20190HB0021PN2581 - 20 -

(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

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:

20190HB0021PN2581 - 21 -

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[;].

(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[;].

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:

20190HB0021PN2581 - 22 -

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[;].

* * *

(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.

20190HB0021PN2581 - 23 -

(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.

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.

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

20190HB0021PN2581 - 24 -

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.

* * *

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

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,

20190HB0021PN2581 - 25 -

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

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

20190HB0021PN2581 - 26 -

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

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.

20190HB0021PN2581 - 27 -

(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,

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

20190HB0021PN2581 - 28 -

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

the conclusions in the report, preestablished or prescribed

findings or the closing of the transaction.

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.

20190HB0021PN2581 - 29 -

(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

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

20190HB0021PN2581 - 30 -

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,

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.

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

20190HB0021PN2581 - 31 -

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.

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.

20190HB0021PN2581 - 32 -

(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.

(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.

SECTION 1. THE TITLE OF THE ACT OF JULY 10, 1990 (P.L.404,

NO.98), KNOWN AS THE REAL ESTATE APPRAISERS CERTIFICATION ACT,

IS AMENDED TO READ:

AN ACT

PROVIDING FOR THE CERTIFICATION OF REAL ESTATE APPRAISERS AND

LICENSURE OF HOME INSPECTORS; SPECIFYING REQUIREMENTS FOR

20190HB0021PN2581 - 33 -

<--

CERTIFICATION AND LICENSURE; PROVIDING FOR SANCTIONS AND

PENALTIES; AND MAKING AN APPROPRIATION.

SECTION 2. SECTION 2 OF THE ACT IS AMENDED BY ADDING

DEFINITIONS TO READ:

SECTION 2. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL

HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

* * *

"CLIENT." 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.

"HOME INSPECTION." A NONINVASIVE VISUAL EXAMINATION OF THE

SYSTEMS AND 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 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.

20190HB0021PN2581 - 34 -

(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.

"HOME INSPECTION REPORT." A TYPEWRITTEN REPORT ON THE

RESULTS OF A HOME INSPECTION.

"HOME INSPECTOR." AN INDIVIDUAL LICENSED BY THE STATE BOARD

OF CERTIFIED REAL ESTATE APPRAISERS 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) THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS

THE ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW,

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.

"HOME INSPECTOR-IN-TRAINING." A CANDIDATE FOR LICENSURE AS A

HOME INSPECTOR WHO HAS BEEN GRANTED A REGISTRATION AS A HOME

20190HB0021PN2581 - 35 -

INSPECTOR-IN-TRAINING.

"MATERIAL DEFECT." 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.

* * *

SECTION 3. SECTION 4(A) AND (K) OF THE ACT ARE AMENDED TO

READ:

SECTION 4. STATE BOARD OF CERTIFIED REAL ESTATE APPRAISERS.

(A) CREATION.--THERE IS HEREBY CREATED THE STATE BOARD OF

CERTIFIED REAL ESTATE APPRAISERS AS A DEPARTMENTAL

ADMINISTRATIVE BOARD IN THE DEPARTMENT OF STATE. THE BOARD SHALL

CONSIST OF THE FOLLOWING MEMBERS:

(1) THE SECRETARY OF THE COMMONWEALTH OR A DESIGNEE.

(2) THE ATTORNEY GENERAL OR A DESIGNEE.

(3) THE SECRETARY OF BANKING OR A DESIGNEE.

(4) [EIGHT] TWELVE MEMBERS WHO ARE CITIZENS OF THE

UNITED STATES AND WHO HAVE BEEN RESIDENTS OF THIS

COMMONWEALTH FOR A TWO-YEAR PERIOD IMMEDIATELY PRIOR TO

APPOINTMENT, TWO OF WHOM SHALL BE PUBLIC MEMBERS [AND SIX]

EIGHT OF WHOM SHALL BE PERSONS WHO ARE STATE-CERTIFIED REAL

ESTATE APPRAISERS[.], ONE OF WHOM SHALL BE A TAX ASSESSOR AND

ONE OF WHOM SHALL BE A PERSON WHO IS A LICENSED AND QUALIFIED

HOME INSPECTOR UNDER THIS ACT, EXCEPT THAT THE HOME INSPECTOR

INITIALLY APPOINTED PURSUANT TO THIS PARAGRAPH NEED NOT BE

LICENSED BY THE BOARD BUT, AT THE TIME OF APPOINTMENT, MUST

HAVE SATISFIED THE EDUCATION AND EXPERIENCE REQUIREMENTS OF

20190HB0021PN2581 - 36 -

THIS ACT FOR LICENSURE AS A HOME INSPECTOR.

* * *

(K) NOTICE.--REASONABLE NOTICE OF ALL MEETINGS SHALL BE

GIVEN IN CONFORMITY WITH [THE ACT OF JULY 3, 1986 (P.L.388,

NO.84), KNOWN AS THE SUNSHINE ACT] 65 PA.C.S. CH. 7 (RELATING TO

OPEN MEETINGS).

* * *

SECTION 4. SECTIONS 5(1), (3) AND (6) AND 6 HEADING OF THE

ACT ARE AMENDED TO READ:

SECTION 5. POWERS AND DUTIES OF BOARD.

THE BOARD SHALL HAVE THE FOLLOWING POWERS AND DUTIES:

(1) TO PASS UPON THE QUALIFICATIONS AND FITNESS OF

APPLICANTS FOR CERTIFICATION OR LICENSURE AND TO ADOPT AND

REVISE RULES AND REGULATIONS REQUIRING APPLICANTS FOR

CERTIFICATION OR LICENSURE TO PASS EXAMINATIONS RELATING TO

THEIR QUALIFICATIONS FOR CERTIFICATION OR LICENSURE.

* * *

(3) TO EXAMINE FOR, DENY, APPROVE, ISSUE, REVOKE,

SUSPEND OR RENEW CERTIFICATES OF APPRAISERS, REGISTRATIONS OF

HOME INSPECTORS-IN-TRAINING AND LICENSES OF APPRAISER

TRAINEES AND HOME INSPECTORS PURSUANT TO THIS ACT AND TO

CONDUCT HEARINGS IN CONNECTION THEREWITH.

* * *

(6) TO ESTABLISH FEES FOR THE OPERATION OF THE BOARD,

INCLUDING FEES FOR THE ISSUANCE AND RENEWAL OF REGISTRATIONS,

CERTIFICATES AND LICENSES AND FOR EXAMINATIONS.

* * *

SECTION 6. APPLICATION AND QUALIFICATIONS OF CERTIFIED REAL

ESTATE APPRAISERS.

* * *

20190HB0021PN2581 - 37 -

SECTION 5. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 6.1. APPLICATION AND QUALIFICATIONS OF HOME INSPECTORS

AND HOME INSPECTORS-IN-TRAINING.

(A) QUALIFICATIONS.--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 18 YEARS OF AGE.

(3) THE APPLICANT HAS A HIGH SCHOOL DIPLOMA OR ITS

EQUIVALENT OR EQUIVALENT LIFE OR OCCUPATIONAL EXPERIENCE.

(4) THE APPLICANT:

(I) HAS COMPLETED NO LESS THAN 120 HOURS OF BOARD-

APPROVED CLASSROOM INSTRUCTION, WHICH INCLUDES 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) IS REGISTERED AS A HOME INSPECTOR-IN-TRAINING;

AND

(III) HAS COMPLETED NO LESS THAN 75 MENTORED HOME

INSPECTIONS COMPLETED IN THE PRESENCE AND UNDER THE

DIRECT SUPERVISION OF A HOME INSPECTOR LICENSED IN THIS

COMMONWEALTH. A HOME INSPECTION REPORT PREPARED BY A HOME

INSPECTOR-IN-TRAINING SHALL BE USED FOR TRAINING PURPOSES

ONLY AND MAY NOT BE PROVIDED TO A CLIENT.

(5) THE APPLICANT HAS PASSED A BOARD -APPROVED

PSYCHOMETRICALLY VALID LICENSING EXAMINATION TO BE

20190HB0021PN2581 - 38 -

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

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, IN WHICH CASE

THE BOARD MAY ISSUE A PROBATIONARY LICENSE FOR THE

REMAINDER OF THE FIVE YEARS REQUIRED IN SUBPARAGRAPH (I).

(B) ISSUANCE OF LICENSE.--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.

20190HB0021PN2581 - 39 -

(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

(II) HAS PERFORMED OR PARTICIPATED IN 100 HOME

INSPECTIONS AND HAS PASSED A RECOGNIZED OR ACCREDITED

EXAMINATION TESTING KNOWLEDGE OF THE PROPER PROCEDURES

FOR CONDUCTING A HOME INSPECTION.

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 THE ACT OF MAY 23, 1945 (P.L.913, NO.367), KNOWN AS THE

ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW .

(2) AN INDIVIDUAL LICENSED UNDER THE ACT OF DECEMBER 14,

1982 (P.L.1227, NO.281), KNOWN AS THE ARCHITECTS LICENSURE

LAW.

(3) A HOME INSPECTOR-IN-TRAINING PRACTICING HOME

INSPECTION IN THE PRESENCE AND UNDER THE DIRECT SUPERVISION

OF A HOME INSPECTOR LICENSED IN THIS COMMONWEALTH, PROVIDED

THE HOME INSPECTOR-IN-TRAINING DOES NOT HOLD HIMSELF OUT AS A

HOME INSPECTOR.

(D) COMPLIANCE.--NOTWITHSTANDING SUBSECTION (C), A PERSON

LICENSED OR REGISTERED AS A PROFESSIONAL ENGINEER UNDER THE

ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW, OR A

PERSON LICENSED OR REGISTERED UNDER THE ARCHITECTS LICENSURE

LAW, MUST COMPLY WITH SUBSECTION (I) AND SECTIONS 6.2, 17.1,

20190HB0021PN2581 - 40 -

17.2 AND 17.3 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 THE

ENGINEER, LAND SURVEYOR AND GEOLOGIST REGISTRATION LAW AND THE

ARCHITECTS LICENSURE LAW, RESPECTIVELY.

(E) USE OF TITLE.--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, WHICH IMPLIES DIRECTLY OR INDIRECTLY THAT HOME

INSPECTION SERVICES ARE BEING PROVIDED.

(F) NONTRANSFERABILITY OF LICENSE.--A LICENSE UNDER THIS

SECTION IS NOT TRANSFERABLE.

(G) EXAMINATION NOT REQUIRED.--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.

20190HB0021PN2581 - 41 -

(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 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, IN WHICH CASE

THE BOARD MAY ISSUE A PROBATIONARY LICENSE FOR THE

REMAINDER OF THE FIVE YEARS REQUIRED IN SUBPARAGRAPH (I).

(H) PROHIBITIONS.--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.

(I) INSURANCE.--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

20190HB0021PN2581 - 42 -

COVERAGES OF NOT LESS THAN $250,000 PER OCCURRENCE AND $500,000

IN THE AGGREGATE AND WITH DEDUCTIBLES OF NOT MORE THAN $15,000.

AN APPLICANT MUST PROVIDE PROOF THAT THE APPLICANT HAS OBTAINED

PROFESSIONAL LIABILITY INSURANCE. IT IS SUFFICIENT IF THE

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 30 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.

(J) CONSTRUCTION.--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) THE ENGINEER, LAND SURVEYOR AND GEOLOGIST

REGISTRATION LAW, 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.

20190HB0021PN2581 - 43 -

(K) OTHER LICENSEES.--THE REQUIREMENTS OF THIS ACT RELATING

TO THE LICENSING OF HOME INSPECTORS SHALL NOT AFFECT THE

OBLIGATIONS OR IMMUNITIES OF AN INDIVIDUAL LICENSED AS OTHER

THAN A HOME INSPECTOR UNDER THIS ACT THAT ARE IMPOSED OR

PROVIDED UNDER THIS ACT 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 THIS ACT AS A REAL ESTATE APPRAISER

WHEN THE INDIVIDUAL IS ACTING UNDER THE INDIVIDUAL'S LICENSE.

(L) HOME INSPECTOR-IN-TRAINING REGISTRANT.--

(1) THE BOARD SHALL, UPON APPLICATION AND PAYMENT OF THE

APPLICATION FEE ESTABLISHED BY THE BOARD, ISSUE A HOME

INSPECTOR-IN-TRAINING REGISTRATION, WITHOUT EXAMINATION, TO

ANY PERSON WHO MEETS THE HOME INSPECTOR-IN-TRAINING

EDUCATIONAL REQUIREMENTS SET BY THE BOARD.

(2) A HOME INSPECTOR-IN-TRAINING REGISTRANT SHALL KEEP A

RECORD OF THE MENTORED HOME INSPECTIONS COMPLETED, WHICH

SHALL, AT A MINIMUM, INCLUDE THE FOLLOWING INFORMATION:

(I) DATE AND TIME OF THE INSPECTION.

(II) ADDRESS OF THE RESIDENCE INSPECTED.

(III) BUSINESS NAME OF THE SUPERVISING INSPECTOR.

(IV) NAME OF THE SUPERVISING INSPECTOR.

(V) LICENSE NUMBER OF THE SUPERVISING INSPECTOR.

(VI) SIGNATURE OF THE SUPERVISING INSPECTOR.

(M) DEFINITION.--AS USED IN THIS SECTION, THE TERM

"CONVICTED" INCLUDES A JUDGMENT, AN ADMISSION OF GUILT OR A PLEA

OF NOLO CONTENDERE.

SECTION 6.2. CONDUCT OF HOME INSPECTION.

(A) GENERAL RULE.--A HOME INSPECTOR SHALL CONDUCT A HOME

INSPECTION WITH THE DEGREE OF CARE THAT A REASONABLY PRUDENT

20190HB0021PN2581 - 44 -

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) IMMEDIATE THREAT TO HEALTH OR SAFETY.--IF AN IMMEDIATE

THREAT TO HEALTH OR SAFETY IS OBSERVED DURING THE COURSE OF A

HOME INSPECTION AND THE HOME IS OCCUPIED, THE HOME INSPECTOR

SHALL DISCLOSE THE IMMEDIATE THREAT 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 6. SECTION 7 OF THE ACT IS AMENDED TO READ:

SECTION 7. RECIPROCITY.

THE BOARD SHALL HAVE THE POWER TO GRANT A RECIPROCAL

CERTIFICATION TO AN APPLICANT WHO IS CERTIFIED AS AN APPRAISER

OR LICENSED AS AN APPRAISER TRAINEE OR HOME INSPECTOR IN ANOTHER

STATE AND HAS DEMONSTRATED QUALIFICATIONS WHICH EQUAL OR EXCEED

THOSE REQUIRED PURSUANT TO THIS ACT IN THE DETERMINATION OF THE

BOARD.

SECTION 7. SECTION 10(A) AND (C) OF THE ACT ARE AMENDED AND

THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

SECTION 10. CERTIFICATION RENEWAL, LICENSURE RENEWAL AND

RECORDS.

(A) RENEWAL TERM.--

(1) EXCEPT AS PROVIDED UNDER PARAGRAPH (2), RENEWAL OF

REGISTRATION, CERTIFICATION OR LICENSURE SHALL BE ON A

BIENNIAL BASIS FOR PERSONS IN GOOD STANDING.

(2) THE BOARD MAY PRESCRIBE LIMITATIONS ON THE NUMBER OF

20190HB0021PN2581 - 45 -

TIMES A REGISTERED HOME INSPECTOR-IN-TRAINING AND A LICENSED

APPRAISER TRAINEE MAY RENEW A REGISTRATION OR LICENSE.

* * *

(B.3) CONTINUING EDUCATION FOR HOME INSPECTORS.--A HOME

INSPECTOR SHALL BE REQUIRED TO OBTAIN 32 HOURS OF CONTINUING

EDUCATION DURING THE BIENNIAL RENEWAL PERIOD. CONTINUING

EDUCATION HOURS MAY BE EARNED BY C OMPLETION OF CONTINUING

EDUCATION COURSES IN THE FIELD OF HOME INSPECTION DURING THE

IMMEDIATELY PRECEDING TWO YEARS AS APPROVED BY THE BOARD. THREE

OF THE TOTAL REQUIRED HOURS OF CONTINUING EDUCATION 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.

TRAINEES [AND] OR HOME INSPECTORS, ALL PERSONS CERTIFIED AS REAL

ESTATE APPRAISERS AND ALL PERSONS REGISTERED AS HOME INSPECTORS-

IN-TRAINING IN THIS COMMONWEALTH SHALL BE KEPT IN THE OFFICE OF

THE BOARD, SHALL BE OPEN TO PUBLIC INSPECTION AND COPYING UPON

PAYMENT OF A NOMINAL FEE FOR COPYING THE RECORD AND SHALL BE

ACCESSIBLE ON THE BOARD'S INTERNET WEBSITE. EACH REGISTRANT,

CERTIFICATEHOLDER AND LICENSEE SHALL ADVISE THE BOARD OF THE

ADDRESS OF HIS OR HER PRINCIPAL PLACE OF BUSINESS.

SECTION 8. SECTIONS 11(A)(1), (3), (5) AND (15) AND (B), 12,

13, 14, 15(B) AND 17(A) OF THE ACT ARE AMENDED TO READ:

SECTION 11. DISCIPLINARY AND CORRECTIVE MEASURES.

(A) AUTHORITY OF BOARD.--THE BOARD MAY DENY, SUSPEND OR

REVOKE REGISTRATIONS, CERTIFICATES OR LICENSES, OR LIMIT,

RESTRICT OR REPRIMAND A REGISTRANT, CERTIFICATEHOLDER OR

20190HB0021PN2581 - 46 -

LICENSEE FOR ANY OF THE FOLLOWING CAUSES:

(1) PROCURING OR ATTEMPTING TO PROCURE A REGISTRATION,

CERTIFICATE OR LICENSE OR RENEWAL OF A REGISTRATION,

CERTIFICATE OR LICENSE PURSUANT TO THIS ACT BY KNOWINGLY

MAKING A FALSE STATEMENT, SUBMITTING FALSE INFORMATION OR

REFUSING TO PROVIDE COMPLETE INFORMATION IN RESPONSE TO A

QUESTION IN AN APPLICATION FOR REGISTRATION, CERTIFICATION OR

LICENSURE OR RENEWAL OF REGISTRATION, CERTIFICATION OR

LICENSURE THROUGH ANY FORM OF FRAUD OR MISREPRESENTATION.

* * *

(3) PAYING, OR OFFERING TO PAY, ANY VALUABLE

CONSIDERATION OTHER THAN PROVIDED FOR BY THIS ACT TO ANY

MEMBER OR EMPLOYEE OF THE BOARD TO PROCURE A REGISTRATION,

CERTIFICATE OR LICENSE UNDER THIS ACT.

* * *

(5) PERFORMING AN ACT OR OMITTING AN ACT WHEN SUCH

PERFORMANCE OR OMISSION INVOLVES DISHONESTY, FRAUD OR

MISREPRESENTATION WITH INTENT TO SUBSTANTIALLY BENEFIT THE

REGISTRANT, CERTIFICATEHOLDER OR LICENSEE IN HIS PROFESSION

OR WITH THE INTENT TO SUBSTANTIALLY INJURE ANOTHER PERSON.

* * *

(15) HAVING A LICENSE OR CERTIFICATE TO PERFORM

APPRAISALS OR HOME INSPECTIONS SUSPENDED, REVOKED OR REFUSED

BY AN APPRAISAL LICENSURE OR CERTIFICATION AUTHORITY OF

ANOTHER STATE, TERRITORY OR COUNTRY, OR RECEIVING OTHER

DISCIPLINARY ACTIONS BY THE APPRAISAL OR HOME INSPECTION

LICENSURE OR CERTIFICATION AUTHORITY OF ANOTHER STATE,

TERRITORY OR COUNTRY.

* * *

(B) BOARD ACTION.--WHEN THE BOARD FINDS THAT THE

20190HB0021PN2581 - 47 -

REGISTRATION, CERTIFICATE OR LICENSE, APPLICATION FOR

REGISTRATION, CERTIFICATION OR LICENSURE OR RENEWAL OF

REGISTRATION, CERTIFICATION OR LICENSURE OF ANY PERSON MAY BE

DENIED, REVOKED, RESTRICTED OR SUSPENDED UNDER THE TERMS OF

SUBSECTION (A), THE BOARD MAY:

(1) DENY THE APPLICATION FOR REGISTRATION, CERTIFICATION

OR LICENSURE OR FOR RENEWAL OF REGISTRATION, CERTIFICATION OR

LICENSURE.

(2) ADMINISTER A PUBLIC REPRIMAND.

(3) REVOKE, SUSPEND, LIMIT OR OTHERWISE RESTRICT A

REGISTRATION, CERTIFICATE OR LICENSE AS DETERMINED BY THE

BOARD.

(4) SUSPEND ENFORCEMENT OF ITS FINDINGS THEREOF AND

PLACE A REGISTRANT, CERTIFICATEHOLDER OR LICENSEE ON

PROBATION WITH THE RIGHT TO VACATE THE PROBATIONARY ORDER FOR

NONCOMPLIANCE.

(5) RESTORE A SUSPENDED REGISTRATION, CERTIFICATE OR

LICENSE AND IMPOSE ANY DISCIPLINARY OR CORRECTIVE MEASURE

WHICH IT MIGHT ORIGINALLY HAVE IMPOSED.

* * *

SECTION 12. REINSTATEMENT OF CERTIFICATE OR LICENSE.

UNLESS ORDERED TO DO SO BY COMMONWEALTH COURT OR AN APPEAL

THEREFROM, THE BOARD SHALL NOT REINSTATE THE CERTIFICATE [OR],

LICENSE OR REGISTRATION OF A PERSON TO PRACTICE AS A CERTIFIED

REAL ESTATE APPRAISER OR AS AN APPRAISER TRAINEE OR AS A

LICENSED HOME INSPECTOR OR AS A REGISTERED HOME INSPECTOR-IN-

TRAINING, PURSUANT TO THIS ACT, WHICH HAS BEEN REVOKED. ANY

PERSON WHOSE CERTIFICATE [OR], LICENSE OR REGISTRATION HAS BEEN

REVOKED MAY APPLY FOR REINSTATEMENT, AFTER A PERIOD OF AT LEAST

FIVE YEARS, BUT MUST MEET ALL OF THE CERTIFICATION [OR],

20190HB0021PN2581 - 48 -

LICENSURE OR REGISTRATION QUALIFICATIONS OF THIS ACT, INCLUDING

THE EXAMINATION REQUIREMENT, IF HE OR SHE DESIRES TO HOLD

HIMSELF OR HERSELF OUT OR TO PRACTICE AS A REAL ESTATE APPRAISER

OR HOME INSPECTOR OR HOME INSPECTOR-IN-TRAINING PURSUANT TO THIS

ACT AT ANY TIME AFTER SUCH REVOCATION.

SECTION 13. REPORTING OF MULTIPLE CERTIFICATION OR LICENSURE.

ANY APPRAISER CERTIFIED IN THIS COMMONWEALTH WHO IS ALSO

CERTIFIED OR LICENSED TO PERFORM APPRAISALS IN ANY OTHER STATE,

TERRITORY OR COUNTRY SHALL REPORT THIS INFORMATION TO THE BOARD

ON THE BIENNIAL RENEWAL APPLICATION. ANY HOME INSPECTOR LICENSED

IN THIS COMMONWEALTH WHO IS ALSO CERTIFIED OR LICENSED TO

PERFORM HOME INSPECTIONS IN ANY OTHER STATE, TERRITORY OR

COUNTRY SHALL REPORT THIS INFORMATION TO THE BOARD ON THE

BIENNIAL RENEWAL APPLICATION. ANY DISCIPLINARY ACTION TAKEN IN

ANY OTHER STATE, TERRITORY OR COUNTRY SHALL BE REPORTED TO THE

BOARD ON THE BIENNIAL RENEWAL APPLICATION, OR WITHIN 90 DAYS OF

DISPOSITION, WHICHEVER IS SOONER. MULTIPLE LICENSURE OR

CERTIFICATION SHALL BE NOTED BY THE BOARD ON THE CERTIFIED

APPRAISER'S OR LICENSED HOME INSPECTOR'S RECORD, AND SUCH STATE,

TERRITORY OR COUNTRY SHALL BE NOTIFIED BY THE BOARD OF ANY

DISCIPLINARY ACTIONS TAKEN AGAINST SAID CERTIFIED APPRAISER OR

LICENSED HOME INSPECTOR IN THIS COMMONWEALTH.

SECTION 14. SURRENDER OF SUSPENDED OR REVOKED REGISTRATION,

CERTIFICATE OR LICENSE.

THE BOARD SHALL REQUIRE A PERSON WHOSE REGISTRATION,

CERTIFICATE OR LICENSE HAS BEEN SUSPENDED OR REVOKED TO RETURN

THE REGISTRATION, CERTIFICATE OR LICENSE IN SUCH MANNER AS THE

BOARD DIRECTS. FAILURE TO DO SO SHALL BE A MISDEMEANOR OF THE

THIRD DEGREE.

SECTION 15. PENALTIES.

20190HB0021PN2581 - 49 -

* * *

(B) CIVIL PENALTY.--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 THREE MEMBERS, WHICHEVER IS GREATER, MAY LEVY A CIVIL

PENALTY OF UP TO $10,000 ON ANY CERTIFICATEHOLDER [OR], LICENSEE

OR REGISTRANT WHO VIOLATES ANY PROVISION OF THIS ACT [OR], ANY

NONCERTIFICATEHOLDER WHO HOLDS HIMSELF OUT AS A REAL ESTATE

APPRAISER IN THIS COMMONWEALTH OR WHO PERFORMS AN APPRAISAL FOR

WHICH CERTIFICATION OR LICENSURE IS REQUIRED UNDER THE FINANCIAL

INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989

(PUBLIC LAW 101-73, 103 STAT. 183) AN APPRAISAL IN ANY FEDERALLY

RELATED OR NONFEDERALLY RELATED TRANSACTION OR ANY OTHER

APPRAISAL[.] OR ANY NONLICENSED INDIVIDUAL WHO HOLDS HIMSELF OUT

AS A HOME INSPECTOR IN THIS COMMONWEALTH OR WHO PERFORMS A HOME

INSPECTION FOR WHICH CERTIFICATION OR LICENSURE IS REQUIRED. THE

BOARD SHALL LEVY THIS PENALTY ONLY AFTER AFFORDING THE ACCUSED

PARTY THE OPPORTUNITY FOR A HEARING, AS PROVIDED IN 2 PA.C.S.

(RELATING TO ADMINISTRATIVE LAW AND PROCEDURE).

* * *

SECTION 17. INJUNCTIVE RELIEF.

(A) INJUNCTION.--A VIOLATION OF SECTION 3 OR 6(C) OR (E) MAY

BE ENJOINED BY THE COURTS UPON PETITION OF THE SECRETARY OR THE

BOARD. IN ANY PROCEEDING UNDER THIS SECTION, IT SHALL NOT BE

NECESSARY TO SHOW THAT ANY PERSON IS INDIVIDUALLY INJURED BY THE

ACTIONS COMPLAINED OF. IF THE COURT FINDS THAT THE RESPONDENT

HAS VIOLATED SECTION 3 OR 6.1(C) OR (E), IT SHALL ENJOIN HIM OR

HER FROM SO PRACTICING OR HOLDING HIMSELF OR HERSELF OUT UNTIL

20190HB0021PN2581 - 50 -

HE OR SHE HAS BEEN DULY CERTIFIED OR LICENSED. PROCEDURE IN SUCH

CASES SHALL BE THE SAME AS IN ANY OTHER INJUNCTION SUIT.

* * *

SECTION 9. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 17.1. REMEDIES FOR HOME INSPECTION SERVICES CONSUMERS.

(A) UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW.--THE

PERFORMANCE OF A HOME INSPECTION IS A SERVICE SUBJECT TO THE ACT

OF DECEMBER 17, 1968 (P.L.1224, NO.387), KNOWN AS THE UNFAIR

TRADE PRACTICES AND CONSUMER PROTECTION LAW.

(B) WRONGFUL ACTS.--THE FOLLOWI NG 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 12 MONTHS, EXCEPT THAT THIS PARAGRAPH

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 BOARD 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.

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(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 THE CONCLUSIONS IN THE REPORT, PREESTABLISHED

OR PRESCRIBED FINDINGS OR THE CLOSING OF THE TRANSACTION.

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) OTHER REMEDIES.--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 17.2. HOME INSPECTION CONTRACTS.

(A) REQUIRED PROVISIONS.--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

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THE HOME INSPECTOR AND THE CLIENT.

(B) PROHIBITED PROVISIONS.--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

SECTION OR SECTION 6.2, 17.1 OR 17.3.

SECTION 17.3. HOME INSPECTION REPORTS.

(A) CONTENTS.--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.

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(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, 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) DELIVERY OF REPORT.--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.

EITHER ORALLY OR IN WRITING AN ESTIMATE OF THE COST TO REPAIR A

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DEFECT FOUND DURING A HOME INSPECTION.

(D) LIABILITY.--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) LIMITATION PERIOD.--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 10. 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.

SECTION 11. THE STATE BOARD OF CERTIFIED REAL ESTATE

APPRAISERS 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 12. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:

(1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT

IMMEDIATELY:

(I) THIS SECTION.

(II) SECTION 11 OF THIS ACT.

(III) THE AMENDMENT OF SECTION 4(A) OF THE ACT.

(2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN TWO

YEARS.

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