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                                                       PRINTER'S NO. 510

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 468 Session of 1989


        INTRODUCED BY NAHILL, BELFANTI, DeLUCA, J. L. WRIGHT, SAURMAN,
           DURHAM, HECKLER, REBER, MICOZZIE, FOX, RAYMOND, J. TAYLOR,
           PETRONE, SEMMEL, PERZEL, VEON, CIVERA, OLASZ, VROON, TRELLO,
           CAWLEY, BUNT, MICHLOVIC, BATTISTO, LASHINGER, SERAFINI,
           CORRIGAN, ROBINSON, CORNELL, STABACK, HOWLETT AND GEIST,
           FEBRUARY 14, 1989

        REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
           FEBRUARY 14, 1989

                                     AN ACT

     1  Providing for the licensing of professional home inspectors;
     2     granting powers to and imposing duties on the Secretary of
     3     Labor and Industry; and providing a civil penalty.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Professional
     8  Home Inspector Licensure Act.
     9  Section 2.  Definitions.
    10     The following words and phrases when used in this act shall
    11  have the meanings given to them in this section unless the
    12  context clearly indicates otherwise:
    13     "Associate home inspector."  A person who is employed by a
    14  licensed professional home inspector to conduct inspections of
    15  residential homes or buildings on behalf of the professional
    16  home inspector.

     1     "Professional home inspector."  A person who, for
     2  compensation, engages in the business of inspecting residential
     3  homes or buildings for buyers or others.
     4     "Secretary."  The Secretary of Labor and Industry of the
     5  Commonwealth.
     6  Section 3.  Professional home inspector to be licensed.
     7     (a)  System established.--The secretary shall establish a
     8  system for the licensure of professional home inspectors.
     9     (b)  License requirement.--No person may engage in the
    10  business of home inspections, either part time or full time, or
    11  in any other manner act as a professional home inspector or
    12  associate home inspector unless the person is licensed by the
    13  secretary.
    14     (c)  Application.--A professional home inspector or associate
    15  home inspector shall be licensed by the secretary upon
    16  submission of an application and payment of a reasonable
    17  application fee sufficient to cover the cost of implementing the
    18  provisions of this act. The fee shall be prescribed by the
    19  secretary.
    20     (d)  Renewals.--The secretary may require biennial renewal of
    21  application for licensure and may stagger the renewal dates and
    22  adjust the application fees accordingly.
    23  Section 4.  Application for professional home inspector license.
    24     (a)  License criteria.--The secretary shall establish the
    25  criteria for the granting of a license. The applicant for a
    26  professional home inspector's license shall, as a condition
    27  precedent to obtaining a license, take a licensing examination
    28  as prescribed by the secretary, and score a passing grade. Prior
    29  to taking the examination:
    30         (1)  the applicant shall:
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     1             (i)  be at least 21 years of age; and
     2             (ii)  be a high school graduate or produce proof
     3         satisfactory to the secretary of an education equivalent
     4         thereto; and
     5         (2)  the applicant shall:
     6             (i)  have been engaged as a licensed associate home
     7         inspector for at least two years and have completed 250
     8         fee-paid inspections; or
     9             (ii)  possess educational or experience
    10         qualifications which the secretary deems to be the
    11         equivalent of the qualifications listed in subparagraph
    12         (i). If this subparagraph is used as the basis for
    13         licensing, an equivalency examination shall be
    14         administered by the secretary and a passing grade shall
    15         be required.
    16     (b)  Written application.--An application for a license as a
    17  professional home inspector shall be made in writing, to the
    18  secretary, upon a form provided for the purpose by the
    19  secretary, and shall contain such information concerning the
    20  applicant as the secretary shall require.
    21     (c)  Place of business.--The application shall state the
    22  place of business for which the license is desired.
    23     (d)  Time for submission.--The application must be received
    24  by the secretary within three years of the date upon which the
    25  applicant took the examination.
    26  Section 5.  Application for associate home inspector license.
    27     (a)  Examination required.--Each applicant shall, as a
    28  condition precedent to obtaining a license, take the associate
    29  home inspector's license examination and score a passing grade.
    30  Prior to taking the examination, the applicant shall be at least
    19890H0468B0510                  - 3 -

     1  21 years of age.
     2     (b)  Written application.--An application for a license as an
     3  associate home inspector shall be made in writing, to the
     4  secretary, upon a form provided for the purpose by the
     5  secretary, and shall contain such information concerning the
     6  applicant as the secretary shall require.
     7     (c)  Sworn statement.--The applicant shall submit a sworn
     8  statement by the professional home inspector with whom he
     9  desires to be affiliated certifying that the professional home
    10  inspector will actively supervise and train the applicant.
    11     (d)  Time for submission.--The application must be received
    12  by the secretary within three years of the date upon which the
    13  applicant took the examination.
    14  Section 6.  Exceptions.
    15     (a)  Eligibility for professional home inspector's license.--
    16         (1)  A person who has engaged in the business of home
    17     inspections for a minimum of one year prior to the effective
    18     date of this act and has conducted at least 250 fee-paid
    19     inspections, and who successfully completes the written
    20     examination to be administered by the secretary, shall be
    21     eligible to apply for a professional home inspector's
    22     license.
    23         (2)  Any registered professional engineer in this
    24     Commonwealth who has at least 20 years of related working
    25     experience in design and inspection for residential or
    26     commercial construction shall be eligible to apply for and
    27     receive a professional home inspector's license.
    28         (3)  Any person who holds a current building inspection
    29     certification from the Pennsylvania Building Officials
    30     Conference shall be eligible to apply for and receive a
    19890H0468B0510                  - 4 -

     1     professional home inspector's license.
     2     (b)  Exemption.--A person eligible for licensing under
     3  subsection (a) shall be exempt from the provisions of this act
     4  relating to associate home inspectors.
     5     (c)  Duration of exception.--Subsection(a)(1) shall remain in
     6  effect for a period of three years after the effective date of
     7  this act.
     8  Section 7.  Secretary to investigate.
     9     The secretary shall, on his initiative or in response to
    10  complaints, investigate on a continuous basis allegations of
    11  violations of this act and gather evidence of violations of this
    12  act or any regulation adopted under this act.
    13  Section 8.  Grounds for fines or revocations.
    14     The secretary may fine or refuse to grant or may suspend or
    15  revoke a license of a professional home inspector for any of the
    16  following acts or omissions related to the conduct of the
    17  business of inspecting residential homes or buildings:
    18         (1)  Making or authorizing any material statement,
    19     written or oral, which is known to be untrue or misleading.
    20         (2)  Failing to carry appropriate general liability and
    21     professional liability insurance policies providing coverage
    22     for negligent acts.
    23         (3)  Expressing an opinion not based on practical
    24     experience and honest conviction.
    25         (4)  Acting in bad faith toward a client.
    26         (5)  Disclosing any information concerning the results of
    27     an inspection without first obtaining the approval of the
    28     client for whom the inspection was performed.
    29         (6)  Accepting compensation, monetary or otherwise, from
    30     more than one interested party for the same service without
    19890H0468B0510                  - 5 -

     1     first obtaining the consent of all interested parties.
     2         (7)  Accepting or offering commissions or allowances,
     3     directly or indirectly, from other parties dealing with his
     4     client in connection with work for which the professional
     5     home inspector is responsible.
     6         (8)  Failing to promptly disclose to a client any
     7     interest in a business that may affect the client.
     8         (9)  Allowing an interest in a business other than home
     9     inspection to affect the quality or result of an inspection.
    10         (10)  Using a home inspection as a vehicle to obtain
    11     additional work in another field.
    12         (11)  Attempting to appraise or express an opinion
    13     concerning the market value of any property under inspection.
    14         (12)  Engaging in a pattern of conduct which includes any
    15     of the acts or omissions prohibited in this section or any
    16     other unconscionable or fraudulent commercial practice
    17     prohibited by the secretary pursuant to regulations
    18     promulgated under this act.
    19  Section 9.  Notice to be given.
    20     Upon refusal to grant a license or upon suspension or
    21  revocation of a license issued to a professional home inspector,
    22  the secretary shall notify the professional home inspector, in
    23  writing, by certified mail. The person shall be given a hearing
    24  by a review board if, within 60 days after receipt of notice, he
    25  files with the secretary a written request for a hearing.
    26  Section 10.  Review board.
    27     The review board for the hearings provided for in section 9
    28  shall be convened and appointed by the secretary when necessary
    29  and shall consist of one professional home inspector, one lay
    30  person and the secretary. Appointments to the review board shall
    19890H0468B0510                  - 6 -

     1  be rotated to prevent any indication of permanent appointment.
     2  Section 11.  Civil penalties.
     3     The secretary may impose upon a professional home inspector
     4  who violates this act a civil penalty of not more than $2,000
     5  for the first offense and not more than $5,000 for the second
     6  and each subsequent offense. The civil penalty shall be issued
     7  for and recovered by and in the name of the secretary and shall
     8  be collected and enforced by summary proceedings.
     9  Section 12.  Rules and regulations.
    10     The secretary shall promulgate rules and regulations to
    11  administer and enforce this act.
    12  Section 13.  Effective date.
    13     This act shall take effect in 90 days.












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