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1 1 Section 1. NEW SECTION. 543E.1 SHORT TITLE.
1 2 This chapter shall be known and may be cited as the "Iowa
1 3 home inspection professional licensing Act".
1 4 Sec. 2. NEW SECTION. 543E.2 DEFINITIONS.
1 5 As used in this chapter, unless the context otherwise
1 6 requires:
1 7 1. "Board" means the home inspection licensing board
1 8 established pursuant to section 543E.3.
1 9 2. "Client" means a person who engages, or seeks to
1 10 engage, the services of a home inspector for the purpose of
1 11 obtaining inspection of and the written evaluation of the
1 12 condition of a residential building.
1 13 3. "Home inspection" means an inspection and written
1 14 evaluation of the following components of a residential
1 15 building: heating system, cooling system, plumbing system,
1 16 electrical system, structural components, foundation, roof,
1 17 masonry structure, exterior and interior components, or any
1 18 other related residential housing component as determined by
1 19 the board by regulation.
1 20 4. "Home inspector" means a person licensed as a home
1 21 inspector pursuant to the provisions of this chapter who
1 22 performs home inspections.
1 23 5. "Home inspector in training" means a person licensed as
1 24 a home inspector in training to become a licensed home
1 25 inspector pursuant to the provisions of this chapter.
1 26 6. "Residential building" means a structure consisting of
1 27 from one to four family dwelling units.
1 28 Sec. 3. NEW SECTION. 543E.3 HOME INSPECTION LICENSING
1 29 BOARD – CREATION – MEMBERSHIP.
1 30 1. A home inspection licensing board is established within
1 31 the professional licensing and regulation division of the
1 32 department of commerce. The board shall consist of five
1 33 members each of which meets all of the following requirements:
1 34 a. Is a resident of the state.
1 35 b. Is a licensed home inspector.
2 1 c. Is a certified member of the Iowa association of home
2 2 inspectors.
2 3 d. Has been actively engaged in the business of making
2 4 home inspections in this state for at least five years.
2 5 e. Has performed not less than five hundred home
2 6 inspections during the five-year period immediately preceding
2 7 the member's appointment.
2 8 2. For a period of one year after the effective date of
2 9 this Act, and notwithstanding any other provisions of this
2 10 chapter to the contrary, the first five home inspectors
2 11 appointed as members of the home inspection licensing board
2 12 shall not be required, at the time of their first appointment,
2 13 to be licensed to perform home inspections.
2 14 3. Members of the board shall be appointed by the governor
2 15 subject to confirmation by the senate. Each board member
2 16 shall be appointed for a term of three years, except that of
2 17 the members first appointed, two shall serve for terms of
2 18 three years, two shall serve for terms of two years, and one
2 19 shall serve for a term of one year beginning and ending as
2 20 provided by section 69.19. Upon expiration of their terms,
2 21 members of the board shall continue to hold office until the
2 22 appointment and qualification of their successors. Any
2 23 vacancy in the membership of the board shall be filled for the
2 24 unexpired term in the manner provided for the original
2 25 appointment. A person shall not serve as a member of the
2 26 board for more than two consecutive terms in addition to any
2 27 unexpired term to which the person has been appointed.
2 28 4. Members of the board are entitled to receive all actual
2 29 expenses incurred in the discharge of their duties within the
2 30 limits of funds appropriated to the board. The administrator
2 31 of the professional licensing and regulation division of the
2 32 department of commerce shall hire and provide staff to assist
2 33 the board with administering this chapter. Each member of the
2 34 board may also be eligible to receive compensation as provided
2 35 in section 7E.6.
3 1 5. The board shall annually elect from among its members a
3 2 chairperson and a vice chairperson and may appoint a
3 3 secretary, who need not be a member of the board.
3 4 6. The board shall meet at least twice each year to
3 5 conduct its business and may hold additional meetings as
3 6 necessary to discharge its duties.
3 7 Sec. 4. NEW SECTION. 543E.4 POWERS OF THE BOARD.
3 8 The board shall do all of the following:
3 9 1. Administer and enforce the provisions of this chapter.
3 10 2. Issue and renew licenses to home inspectors and home
3 11 inspectors in training pursuant to this chapter.
3 12 3. Suspend, revoke, or fail to renew the license of a home
3 13 inspector or a home inspector in training pursuant to this
3 14 chapter.
3 15 4. Establish standards for the initial and continuing
3 16 education of home inspectors.
3 17 5. Adopt and publish a code of ethics, standards of
3 18 practice, and reporting requirements for home inspectors.
3 19 6. Establish and collect fees for examination, licensure,
3 20 renewal of licensure, and other services related to the
3 21 regulation and licensure of home inspectors performed by the
3 22 board.
3 23 7. Establish training and experience requirements for
3 24 licensure as a home inspector.
3 25 8. Establish rules for handling complaints from the public
3 26 concerning home inspectors or the performance of home
3 27 inspections.
3 28 9. Establish reporting requirements for home inspections
3 29 performed by home inspectors.
3 30 Sec. 5. NEW SECTION. 543E.5 LICENSURE REQUIRED.
3 31 A person shall not engage in the performance of a home
3 32 inspection for compensation unless licensed in accordance with
3 33 this chapter.
3 34 Sec. 6. NEW SECTION. 543E.6 ELIGIBILITY FOR LICENSURE AS
3 35 HOME INSPECTOR.
4 1 To be eligible for licensure as a home inspector, an
4 2 applicant shall fulfill all of the following requirements:
4 3 1. Be of good moral character.
4 4 2. Successfully complete high school or its equivalent.
4 5 3. Acquire the training and experience required by the
4 6 board.
4 7 4. Pass the national home inspector examination or the
4 8 American society of home inspectors examination. An applicant
4 9 may meet this requirement by passing the national home
4 10 inspector or American society of home inspectors examination
4 11 prior to the effective date of this Act.
4 12 5. Be engaged as a licensed inspector in training for at
4 13 least one year, and perform at least two hundred fifty home
4 14 inspections for compensation in compliance with the standards
4 15 of practice and code of ethics of this chapter.
4 16 Sec. 7. NEW SECTION. 543E.7 REQUIREMENTS FOR LICENSURE
4 17 AS A HOME INSPECTOR IN TRAINING.
4 18 To be eligible for licensure as a home inspector in
4 19 training, an applicant shall fulfill all of the following
4 20 requirements:
4 21 1. Be of good moral character.
4 22 2. Successfully complete high school or its equivalent.
4 23 3. Pass an approved course of study, as prescribed by the
4 24 board.
4 25 4. Perform at least ten home inspections in the presence
4 26 of and under the direct supervision of a home inspector.
4 27 5. Pass the national home inspector examination or the
4 28 American society of home inspectors examination. An applicant
4 29 may meet this requirement by passing the national home
4 30 inspector or American society of home inspectors examination
4 31 prior to the effective date of this Act.
4 32 Sec. 8. NEW SECTION. 543E.8 WHEN NOT APPLICABLE.
4 33 The provisions of this chapter shall not apply to:
4 34 1. A person who is employed by the government or a
4 35 governmental subdivision or agency and performs a home
5 1 inspection that is within the official duties and
5 2 responsibilities of the person.
5 3 2. A person who performs a home inspection, if the
5 4 inspection will be used solely by a financial institution to
5 5 monitor the progress of construction of a residential
5 6 building.
5 7 3. A person who is a real estate broker or salesperson as
5 8 defined in section 543B.3 or 543B.5 when that person is acting
5 9 within the scope of that person's license pursuant to chapter
5 10 543B.
5 11 4. A person who is performing home inspections for the
5 12 purpose of meeting the requirements of section 543E.7 in order
5 13 to qualify for licensure as a home inspector in training.
5 14 5. A person who is employed by an insurance company when
5 15 that person is performing a home inspection in relation to an
5 16 insurance policy either prior to or subsequent to a loss or a
5 17 claim made to the insurance company by the insured.
5 18 Sec. 9. NEW SECTION. 543E.9 HOME INSPECTIONS NOT
5 19 REQUIRED.
5 20 This chapter shall not be construed to require a home
5 21 inspection to be performed on a residential property in this
5 22 state.
5 23 Sec. 10. NEW SECTION. 543E.10 ISSUANCE OF HOME INSPECTOR
5 24 LICENSE – RECIPROCITY.
5 25 Upon payment of a fee and submission of a written
5 26 application to the board, the board shall issue a home
5 27 inspector license to any person who holds a valid home
5 28 inspector license issued under the laws of another state if
5 29 the board determines that the other state has standards that
5 30 are substantially equivalent to those of this state.
5 31 Sec. 11. NEW SECTION. 543E.11 LICENSURE OF PRACTICING
5 32 HOME INSPECTORS.
5 33 During the first three hundred sixty days after the
5 34 effective date of this Act, the board shall issue, upon
5 35 application, a home inspector license to a person who does all
6 1 of the following:
6 2 1. Meets the requirements of section 543E.6, subsections
6 3 1, 2, and 4.
6 4 2. Has engaged in the performance of home inspections for
6 5 compensation for at least three years prior to the effective
6 6 date of this Act.
6 7 3. Has performed at least three hundred home inspections
6 8 for compensation that conform to the standards of practice and
6 9 code of ethics set forth by the board pursuant to this
6 10 chapter.
6 11 Sec. 12. NEW SECTION. 543E.12 FEES FOR HOME INSPECTION
6 12 LICENSURE.
6 13 1. The board shall set fees for licenses, renewals of
6 14 licenses, or other services provided by the board pursuant to
6 15 this chapter. Licenses shall be issued for a period of two
6 16 years and shall be renewable biennially, except that the board
6 17 may, in order to stagger the expiration dates of licenses
6 18 issued, provide that those licenses first issued or renewed
6 19 after the effective date of this Act shall expire on a date
6 20 fixed by the board.
6 21 2. Fees and penalties shall be established and collected
6 22 by the board in an amount necessary to pay the administrative
6 23 costs of sustaining the board and administering this chapter.
6 24 Licensing fees set under this chapter shall be comparable to
6 25 those established by other licensing boards.
6 26 3. All fees and penalties imposed by the board shall be
6 27 paid to the board and shall be transmitted to the treasurer of
6 28 state who shall deposit the fees and penalties in the general
6 29 fund of the state.
6 30 Sec. 13. NEW SECTION. 543E.13 DENIAL, SUSPENSION, OR
6 31 REVOCATION OF HOME INSPECTOR LICENSE.
6 32 The board may deny, suspend, or revoke a home inspector
6 33 license or a home inspector in training license upon a
6 34 determination by the board that the licensee has done any of
6 35 the following:
7 1 1. Failed to fulfill any of the requirements in section
7 2 543E.6.
7 3 2. Disclosed information concerning the results of a home
7 4 inspection without the approval of a client or the client's
7 5 representatives.
7 6 3. Accepted compensation from more than one client for the
7 7 same service without the consent of all clients for whom the
7 8 service is being performed.
7 9 4. Accepted commissions or allowances, directly or
7 10 indirectly, from other parties dealing with a client of the
7 11 licensee in connection with work for which the licensee is
7 12 responsible.
7 13 5. Failed to promptly disclose information to a client
7 14 about a business interest of the licensee that might
7 15 constitute a conflict of interest for a licensee in performing
7 16 a home inspection for a client.
7 17 Sec. 14. NEW SECTION. 543E.14 PRACTICE OF ARCHITECTURE
7 18 OR ENGINEERING PROHIBITED.
7 19 A person licensed as a home inspector pursuant to this
7 20 chapter shall not engage in the practice of architecture or
7 21 the practice of professional engineering.
7 22 Sec. 15. NEW SECTION. 543E.15 ERRORS AND OMISSIONS –
7 23 INSURANCE REQUIRED.
7 24 1. Every licensee under this chapter who is engaged in the
7 25 performance of home inspections shall secure, maintain, and
7 26 file with the board proof of error and omissions insurance in
7 27 an amount of at least five hundred thousand dollars per
7 28 occurrence.
7 29 2. Errors and omissions insurance obtained by a licensee
7 30 in compliance with subsection 1 shall contain a provision that
7 31 cancellation or failure to renew the insurance shall not be
7 32 effective without at least ten days' notice of intention to
7 33 cancel or not renew the insurance given to the board in
7 34 writing by the licensee.
7 35 Sec. 16. NEW SECTION. 543E.16 LIMITATION OF ACTIONS.
8 1 1. An action to recover damages arising out of an act or
8 2 omission of a home inspector in connection with the
8 3 performance of a home inspection can only be commenced within
8 4 one year from the date the home inspection was performed.
8 5 2. An action to recover damages arising out of an act or
8 6 omission of a home inspector in connection with the
8 7 performance of a home inspection shall only be brought by the
8 8 client for whom the home inspection was performed.
8 9 Sec. 17. NEW SECTION. 543E.17 RULES.
8 10 The board shall adopt rules pursuant to chapter 17A and
8 11 consistent with this chapter for the administration and
8 12 enforcement of this chapter and may prescribe forms to be used
8 13 under this chapter.
8 14 EXPLANATION
8 15 This bill provides for the regulation and licensing of home
8 16 inspectors of residential real estate consisting of from one
8 17 to four family dwelling units. The bill creates a home
8 18 inspection licensing board within the professional licensing
8 19 and regulation division of the department of commerce whose
8 20 members are appointed by the governor subject to confirmation
8 21 by the senate.
8 22 The bill provides that the home inspection licensing board
8 23 is responsible for the issuance and renewal and suspension and
8 24 revocation of home inspector licenses; for adopting ethics,
8 25 standards of practice, and reporting requirements for home
8 26 inspectors; for establishing and collecting fees for
8 27 examination, licensure, and other services related to the
8 28 regulation and licensure of home inspectors performed by the
8 29 board; for establishing licensure requirements; and for
8 30 establishing complaint procedures for handling complaints
8 31 about home inspections from the public.
8 32 The bill requires that a person who performs home
8 33 inspections for compensation must be licensed in accordance
8 34 with the bill. The bill sets forth eligibility requirements
8 35 for licensure as a home inspector or as a home inspector in
9 1 training.
9 2 The bill specifies that the requirements of the bill are
9 3 not applicable to government employees performing home
9 4 inspections within their official duties, persons performing
9 5 home inspections for a financial institution to monitor new
9 6 house construction, persons acting as real estate brokers or
9 7 salespersons, persons performing home inspections in order to
9 8 qualify for licensure as a home inspector in training, or
9 9 insurance company employees performing home inspections
9 10 relating to a policy claim.
9 11 The bill provides for reciprocity with other states that
9 12 issue home inspector licenses pursuant to similar licensing
9 13 requirements. The bill also provides that practicing home
9 14 inspectors for at least three years prior to the effective
9 15 date of the bill can be issued licenses during the first 360
9 16 days after the bill's effective date by meeting certain
9 17 conditions.
9 18 The bill sets forth the conditions under which the board
9 19 may deny, suspend, or revoke a home inspector license or home
9 20 inspector in training license. The bill also prohibits a
9 21 licensed home inspector from practicing architecture or
9 22 professional engineering.
9 23 The bill requires that a licensee under the chapter obtain
9 24 errors and omissions insurance and provide proof of such
9 25 insurance to the home inspection licensing board.
9 26 The bill requires actions to recover damages arising out of
9 27 an act or omission of a home inspector to be filed within one
9 28 year from when the home inspection was performed by the client
9 29 for whom the home inspection was performed.
9 30 LSB 1594SV 80
9 31 av/cf/24
Text: SF00399 Text: SF00401 Text: SF00400 - SF00499 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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