PRINTER'S NO. 510
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: 19890H0468B0510 - 2 -
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. A19L63RZ/19890H0468B0510 - 7 -