Senate File 2256 - Introduced SENATE FILE 2256 BY JOCHUM A BILL FOR An Act establishing a home inspector licensing program, 1 establishing a home inspector examining board, providing 2 civil and criminal penalties, and including effective date 3 and applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5676XS (3) 83 md/sc
S.F. 2256 Section 1. NEW SECTION . 104.1 Title. 1 This chapter may be known and cited as the “Iowa Home 2 Inspector Licensing Act” . 3 Sec. 2. NEW SECTION . 104.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Applicant” means a person who applies to the board for 7 a license under this chapter. 8 2. “Board” means the home inspector examining board as 9 established pursuant to section 104.3. 10 3. “Department” means the Iowa department of public safety. 11 4. “Governmental subdivision” means any city, county, or 12 combination thereof. 13 5. “Home inspection” means the examination and evaluation 14 of the exterior and interior components of residential real 15 property, which includes the inspection of any two or more 16 of the following components of residential real property in 17 connection with or to facilitate the sale, lease, or other 18 conveyance of, or the proposed sale, lease, or other conveyance 19 of, residential real property: 20 a. Heating, ventilation, or air conditioning system. 21 b. Plumbing system. 22 c. Electrical system. 23 d. Structural composition. 24 e. Foundation. 25 f. Roof. 26 g. Masonry structure. 27 h. Any other residential real property component established 28 by rule under this chapter. 29 6. “Home inspector” means a person who, for compensation 30 either direct or indirect, performs home inspections. 31 7. “Residential real property” means real property that is 32 an owner-occupied single-family or two-family dwelling located 33 in this state and occupied or used or intended to be occupied 34 or used for residential purposes, including an interest in any 35 -1- LSB 5676XS (3) 83 md/sc 1/ 17
S.F. 2256 real property covered under chapter 499B. 1 Sec. 3. NEW SECTION . 104.3 Home inspector examining board. 2 1. A home inspector examining board is created within the 3 Iowa department of public safety. 4 2. The board shall be comprised of nine members as follows: 5 a. The commissioner of public safety or the commissioner’s 6 designee. 7 b. The director of public health or the director’s designee. 8 c. The state building code commissioner or the 9 commissioner’s designee. 10 d. The state fire marshal or the fire marshal’s designee. 11 e. One plumbing inspector. 12 f. One mechanical inspector. 13 g. One electrical inspector. 14 h. One contractor who primarily works in rural areas. 15 i. One contractor who primarily works in urban areas. 16 The board members enumerated in paragraphs “e” through 17 “i” , shall be appointed by the governor and are subject to 18 confirmation by the senate. 19 3. Members enumerated in subsection 2, paragraphs “e” 20 through “i” , shall serve three-year staggered terms and 21 shall serve no more than three full terms. A vacancy in the 22 membership of the board shall be filled in the same manner as 23 the original appointment. 24 4. If a person who has been appointed to serve on the board 25 has ever been disciplined by the board, all board complaints 26 and statements of charges, settlement agreements, findings of 27 fact, and orders pertaining to the disciplinary action shall be 28 made available to the senate committee to which the appointment 29 is referred at the committee’s request before the full senate 30 votes on the person’s appointment. 31 5. The board shall organize annually and shall select a 32 chairperson and a secretary from its membership. A quorum 33 shall consist of a majority of the members of the board. 34 6. Members of the board shall receive actual expenses for 35 -2- LSB 5676XS (3) 83 md/sc 2/ 17
S.F. 2256 their duties as a member of the board. Each member of the board 1 may also be eligible to receive compensation as provided in 2 section 7E.6. 3 Sec. 4. NEW SECTION . 104.4 Rules. 4 The board shall adopt all rules necessary to carry out the 5 licensing and other provisions of this chapter. 6 Sec. 5. NEW SECTION . 104.5 Standards of practice. 7 1. All persons licensed under this chapter shall comply 8 with the standards of practice established by the board by rule 9 pursuant to chapter 17A. 10 2. Standards of practice may include recognized standards 11 and codes to be used in a home inspection. The board shall 12 consider nationally recognized standards and codes prior to 13 adopting rules for the standards of practice. 14 3. The board’s standards of practice shall include all of 15 the following: 16 a. Requirements for home inspection reports. A home 17 inspection report is a written evaluation prepared and issued 18 by a home inspector upon completion of a home inspection. 19 b. Requirements for the retention of records by licensed 20 home inspectors. 21 Sec. 6. NEW SECTION . 104.6 Applications for examinations. 22 1. Any person desiring to take an examination for a license 23 issued pursuant to this chapter shall file an application 24 with the board at least fifteen days before a scheduled 25 examination, on a form provided by the board. The application 26 shall be signed by the applicant and shall be accompanied by 27 the examination fee and such documents and affidavits as are 28 necessary to show the eligibility of the applicant to take the 29 examination. The board may require that a recent photograph of 30 the applicant be attached to the application. 31 2. The form of the application shall be in accordance with 32 the rules of the department and the board. 33 Sec. 7. NEW SECTION . 104.7 Examinations. 34 1. The board shall give public notice of the time and place 35 -3- LSB 5676XS (3) 83 md/sc 3/ 17
S.F. 2256 of examinations to be held under this chapter. Such notice 1 shall be given in such manner as the board deems necessary to 2 provide adequate time to allow applicants for licensure to 3 comply with the provisions of this chapter. 4 2. Examinations for the licenses which may be issued 5 pursuant to this chapter shall be conducted by the board. 6 Examinations shall be conducted at least two times per year 7 at such time and location as the department, in consultation 8 with the board, may fix. Applicants who fail to pass an 9 examination shall be allowed to retake the examination at 10 the next scheduled time. If an applicant fails twice to 11 pass an examination, any subsequent opportunities to take 12 the examination shall be available only at the discretion 13 of the board. An applicant who has failed an examination 14 may request in writing information from the board concerning 15 the examination grade and subject areas or questions that 16 the applicant failed to answer correctly, except that if the 17 board administers a uniform, standardized examination, the 18 board shall only be required to provide to the applicant the 19 examination grade and such other information concerning the 20 applicant’s examination results that are available to the 21 board. 22 3. An examination shall be evaluated in accordance with 23 the rules of the board. After each examination, the board 24 shall certify the names of the successful applicants to the 25 department in the manner prescribed by the department. The 26 department shall then issue the proper license and make the 27 required entry in the registry pursuant to section 104.14. 28 4. All matters connected with an examination for a license 29 shall be filed with the department and preserved for such 30 period of time as specified by the state records commission as 31 a part of the records of the department. The records, except 32 for records which reveal the performance on an examination of 33 an identified candidate, shall be open to public inspection. 34 Sec. 8. NEW SECTION . 104.8 Examination rules. 35 -4- LSB 5676XS (3) 83 md/sc 4/ 17
S.F. 2256 The board shall adopt rules relating to all of the following: 1 1. The qualifications required for applicants seeking to 2 take examinations. 3 2. The denial of applicants seeking to take examinations. 4 3. The conducting of examinations. 5 4. The grading of examinations and passing upon the 6 technical qualifications of applicants, as shown by such 7 examinations. 8 5. The minimum scores required for passing examinations. 9 6. The selection of nationally recognized vendors providing 10 examinations. 11 Sec. 9. NEW SECTION . 104.9 Examination assistance. 12 Upon the request of the board, the department shall assign 13 one or more employees of the department to assist with 14 conducting an examination. A member of the board shall be 15 present and shall have charge of all candidates during the 16 examination. An employee assigned by the department shall 17 perform such duties to assist with the examination process 18 as the board may direct. If the duties of such employee are 19 performed away from the seat of government, the employee shall 20 receive necessary travel expenses which shall be reimbursed by 21 the board for costs incurred. 22 Sec. 10. NEW SECTION . 104.10 Fees. 23 1. The board shall set the fees for the examination of all 24 applicants, by rule, which fees shall be based upon the cost of 25 administering the examinations. 26 2. The board shall set the license fees and renewal fees for 27 all licenses issued pursuant to this chapter, by rule, based 28 upon the costs of sustaining the board and the actual costs of 29 licensing. 30 3. All fees collected under this chapter and penalties 31 collected under section 104.26 shall be retained by the board. 32 The moneys retained by the board shall be used for any of the 33 board’s duties under this chapter, including but not limited 34 to the addition of full-time equivalent positions for program 35 -5- LSB 5676XS (3) 83 md/sc 5/ 17
S.F. 2256 services and investigations. Revenues retained by the board 1 pursuant to this section shall be considered repayment receipts 2 as defined in section 8.2. Notwithstanding section 8.33, 3 moneys retained by the board pursuant to this section are not 4 subject to reversion to the general fund of the state. 5 4. Commencing July 2012 and every biennium thereafter, the 6 board shall review its revenue, including amounts generated 7 from license fees set pursuant to this chapter, and its 8 expenses for purposes of reevaluating its fee structures. 9 Sec. 11. NEW SECTION . 104.11 License required —— exception. 10 1. A person shall not perform a home inspection without 11 obtaining a license issued by the board. 12 2. A person shall not engage in the business of home 13 inspections unless at all times a licensed home inspector 14 is employed by the person and is actively in charge of 15 performing the home inspections. An individual who performs 16 home inspections pursuant to a business operated as a sole 17 proprietorship shall be a licensed home inspector. 18 3. The licensing requirements of this chapter shall not 19 apply to an employee of any unit of state or local government, 20 including but not limited to cities, counties, or school 21 corporations, performing home inspections while acting within 22 the scope of the government employee’s employment. 23 Sec. 12. NEW SECTION . 104.12 Form of license —— term of 24 license. 25 1. a. A home inspector license shall be in the form of a 26 certificate under the seal of the department, signed by the 27 Iowa director of public safety, and shall be issued in the name 28 of the board. The license number shall be noted on the face of 29 the license. 30 b. In addition to the certificate, the board shall provide 31 each licensee with a wallet-sized licensing identification 32 card. 33 2. A license issued pursuant to this chapter shall be issued 34 for a term of two years. 35 -6- LSB 5676XS (3) 83 md/sc 6/ 17
S.F. 2256 Sec. 13. NEW SECTION . 104.13 License presumptive evidence. 1 A license issued under this chapter shall be presumptive 2 evidence of the right of the holder to perform home inspections 3 in this state. 4 Sec. 14. NEW SECTION . 104.14 Registry of licenses. 5 The name, location, license number, and date of issuance 6 of the license of each person to whom a license has been 7 issued shall be entered in a registry kept in the office of 8 the department to be known as the home inspector registry. 9 The registry may be electronic and shall be open to public 10 inspection. However, the licensee’s home address, home 11 telephone number, and other personal information as determined 12 by rule shall be confidential. 13 Sec. 15. NEW SECTION . 104.15 Change of residence. 14 If a person licensed to perform home inspections under this 15 chapter changes the person’s residence or place of practice, 16 the person shall so notify the board. 17 Sec. 16. NEW SECTION . 104.16 Preemption of local licensing 18 requirements. 19 1. The provisions of this chapter regarding the licensing of 20 home inspectors shall supersede and preempt all home inspector 21 licensing provisions of all governmental subdivisions. On 22 and after the effective date of this Act, all home inspector 23 licensing provisions promulgated by any governmental 24 subdivision shall be null and void and of no further force and 25 effect, and a governmental subdivision may not prohibit a home 26 inspector licensed pursuant to this chapter from performing 27 services for which that person is licensed. 28 2. Nothing in this chapter shall prohibit a governmental 29 subdivision from assessing and collecting inspection fees 30 related to inspections performed by a licensed home inspector. 31 Sec. 17. NEW SECTION . 104.17 Qualifications and 32 requirements. 33 1. The board shall adopt, by rule, general qualifications 34 for licensure. The board may consider the past felony record 35 -7- LSB 5676XS (3) 83 md/sc 7/ 17
S.F. 2256 of an applicant only if the felony conviction relates directly 1 to the practice of home inspections. References may be 2 required as part of the licensing process. 3 2. An applicant for a home inspector license shall be 4 at least twenty-one years of age at the time the applicant 5 completes the examination under this chapter. 6 3. Notwithstanding section 17A.9A, the board shall waive 7 the written examination requirements established by the board 8 if the applicant meets either of the following requirements: 9 a. The applicant has previously passed a written examination 10 which the board deems to be substantially similar to the 11 licensing examination otherwise required by the board to obtain 12 a license and the applicant has completed at least eight 13 classroom hours of continuing education in courses or seminars 14 approved by the board within the two-year period immediately 15 preceding the date of the applicant’s license application. 16 b. The applicant can demonstrate to the satisfaction of the 17 board that the applicant has five or more years of experience 18 prior to the effective date of this Act in home inspection 19 business, which experience is of a nature that the board 20 deems to be sufficient to demonstrate continuous professional 21 competency consistent with that expected of an individual who 22 passes the applicable licensing examination which the applicant 23 would otherwise be required to pass. 24 Sec. 18. NEW SECTION . 104.18 Insurance and surety bond 25 requirements. 26 1. An applicant for a license or renewal of an active 27 license shall provide evidence of a public liability insurance 28 policy and surety bond in an amount determined sufficient by 29 the board by rule. 30 2. If the applicant performs home inspections individually 31 through a business conducted as a sole proprietorship, the 32 applicant shall personally obtain the insurance and surety 33 bond required by this section. If the applicant is engaged 34 in the home inspection business as an employee or owner of a 35 -8- LSB 5676XS (3) 83 md/sc 8/ 17
S.F. 2256 legal entity, the insurance and surety bond required by this 1 section shall be obtained by the entity and shall cover all 2 home inspections performed by the entity. 3 3. The insurance and surety bond shall be written by an 4 entity licensed to do business in this state and each licensed 5 home inspector shall maintain on file with the department a 6 certificate evidencing that the insurance or surety bond shall 7 not be canceled without the entity first giving fifteen days 8 written notice to the department. 9 Sec. 19. NEW SECTION . 104.19 Renewal and reinstatement of 10 licenses —— fees and penalties —— continuing education. 11 1. A license issued under this chapter may be renewed as 12 provided by rule adopted by the board upon application by the 13 licensee pursuant to this section. A renewal license shall be 14 displayed in connection with the original license. 15 2. The department shall notify each licensee by mail at 16 least sixty days prior to the expiration of a license. 17 3. Applications for renewal shall be made in writing to the 18 department accompanied by the required renewal licensing fee at 19 least thirty days prior to the expiration date of the license. 20 4. Failure to renew a license within a reasonable time after 21 the expiration of the license shall not invalidate the license 22 for purposes of renewal or reinstatement, but a penalty may be 23 assessed as adopted by rule, in addition to the license renewal 24 fee, to allow reinstatement of the license. 25 5. a. A licensee who allows a license to lapse for a 26 period of one month or less may reinstate and renew the license 27 without examination upon payment of the applicable renewal and 28 reinstatement fees and any penalties if assessed. 29 b. A licensee who allows a license to lapse for a period of 30 time greater than one month is required to retake and pass the 31 applicable licensing examination, and pay the license renewal 32 fee and penalty if assessed, in addition to the examination 33 fee, in order to obtain reinstatement and renewal of that 34 person’s license. 35 -9- LSB 5676XS (3) 83 md/sc 9/ 17
S.F. 2256 6. The board shall establish continuing education 1 requirements pursuant to section 272C.2. The basic continuing 2 education requirement for renewal of a license shall be the 3 completion, during the immediately preceding license term, of 4 the number of classroom hours of instruction required by the 5 board in courses or seminars which have been approved by the 6 board. The board shall require at least eight classroom hours 7 of instruction during each two-year licensing term. 8 Sec. 20. NEW SECTION . 104.20 Reciprocal licenses. 9 The board may license without examination a nonresident 10 applicant who is licensed under home inspector licensing 11 statutes of another state having similar licensing requirements 12 as those set forth in this chapter and rules adopted under this 13 chapter if the other state grants the same reciprocal licensing 14 privileges to residents of Iowa who have obtained Iowa home 15 inspector licenses under this chapter. The department and the 16 board shall adopt the necessary rules, not inconsistent with 17 the law, for carrying out the reciprocal licensing relations 18 with other states. 19 Sec. 21. NEW SECTION . 104.21 Grounds for denial, 20 revocation, or suspension of license. 21 A license to practice as a home inspector may be revoked 22 or suspended, or an application for licensure may be denied, 23 pursuant to procedures established pursuant to chapter 272C 24 by the board, or the licensee may be otherwise disciplined in 25 accordance with that chapter, when the licensee commits any of 26 the following acts or offenses: 27 1. Fraud in procuring a license. 28 2. Professional incompetence. 29 3. Knowingly making misleading, deceptive, untrue, or 30 fraudulent misrepresentations in the practice of the profession 31 or engaging in unethical conduct or practice harmful or 32 detrimental to the public. Proof of actual injury need not be 33 established. 34 4. Conviction of a felony related to the profession or 35 -10- LSB 5676XS (3) 83 md/sc 10/ 17
S.F. 2256 occupation of the licensee or the conviction of any felony 1 that would affect the licensee’s ability to practice within 2 the profession. A copy of the record of conviction or plea of 3 guilty shall be conclusive evidence of such conviction. 4 5. Fraud in representations as to skill or ability. 5 6. Use of untruthful or improbable statements in 6 advertisements. 7 7. Willful or repeated violations of this chapter. 8 8. Aiding and abetting a person who is not licensed pursuant 9 to this chapter in that person’s pursuit of an unauthorized and 10 unlicensed home inspection practice. 11 9. Failure to meet the commonly accepted standards of 12 professional competence. 13 10. Any other such grounds as established by rule by the 14 board. 15 Sec. 22. NEW SECTION . 104.22 Jurisdiction of revocation and 16 suspension proceedings. 17 The board shall have exclusive jurisdiction of all 18 proceedings to revoke or suspend a license issued pursuant 19 to this chapter. The board may initiate proceedings under 20 this chapter or chapter 272C, following procedures set out in 21 section 272C.6, either on its own motion or on the complaint of 22 any person. Before scheduling a hearing, the board may request 23 the department to conduct an investigation into the charges 24 to be addressed at the board hearing. The department shall 25 report its findings to the board. The board, in connection 26 with a proceeding under this chapter, may issue subpoenas to 27 compel attendance and testimony of witnesses and the disclosure 28 of evidence and may request the attorney general to bring an 29 action to enforce the subpoena. 30 Sec. 23. NEW SECTION . 104.23 Notice and default. 31 1. A written notice stating the nature of the charge or 32 charges against a licensee and the time and place of the 33 hearing before the board on the charges shall be served on the 34 licensee, either personally or by mailing a copy by certified 35 -11- LSB 5676XS (3) 83 md/sc 11/ 17
S.F. 2256 mail to the last known address of the licensee, not less than 1 thirty days prior to the date of the hearing. 2 2. If, after having been served with the notice of hearing, 3 the licensee fails to appear at the hearing, the board may 4 proceed to hear evidence against the licensee and may enter 5 such order as is justified by the evidence. 6 Sec. 24. NEW SECTION . 104.24 Advertising —— violations —— 7 criminal penalties. 8 1. Only a person who is duly licensed pursuant to this 9 chapter may advertise the fact that the person is licensed as a 10 home inspector by the state of Iowa. 11 2. All written advertisements distributed in this state by a 12 person who is engaged in the business of home inspections shall 13 include the listing of at least one home inspector’s license 14 number. A licensed home inspector shall not allow the home 15 inspector’s license number to be used in connection with the 16 advertising for more than one person engaged in the business of 17 home inspections. 18 3. A person who fraudulently claims to be a licensed home 19 inspector pursuant to this chapter, either in writing, cards, 20 signs, circulars, advertisements, or other communications, is 21 guilty of a simple misdemeanor. 22 4. In order to be entitled to use a home inspector’s license 23 number, the home inspector must be employed by the person in 24 whose name the business of inspecting homes is being performed. 25 A person who fraudulently lists a home inspector’s license 26 number in connection with that person’s advertising or falsely 27 displays a home inspector’s license number is guilty of a 28 simple misdemeanor. 29 Sec. 25. NEW SECTION . 104.25 Injunction. 30 A person performing home inspections without a license 31 issued under this chapter may be restrained by injunction. 32 Sec. 26. NEW SECTION . 104.26 Civil penalty. 33 1. In addition to any other penalties provided for in this 34 chapter, the board may, by order, impose a civil penalty, not 35 -12- LSB 5676XS (3) 83 md/sc 12/ 17
S.F. 2256 to exceed five thousand dollars per offense, upon a person 1 violating any provision of this chapter. Each day of a 2 continued violation constitutes a separate offense. Before 3 issuing an order under this section, the board shall provide 4 the person written notice and the opportunity to request a 5 hearing on the record. The hearing must be requested within 6 thirty days of the issuance of the notice. 7 2. A person aggrieved by the imposition of a civil penalty 8 under this section may seek judicial review in accordance with 9 section 17A.19. 10 3. If a person fails to pay a civil penalty within thirty 11 days after entry of an order under subsection 1 or, if the 12 order is stayed pending an appeal, within ten days after the 13 court enters a final judgment in favor of the board, the board 14 shall notify the attorney general. The attorney general may 15 commence an action to recover the amount of the penalty, 16 including reasonable attorney fees and costs. 17 4. An action to enforce an order under this section may be 18 joined with an action for an injunction under section 104.25. 19 5. Civil penalties collected under this section shall be 20 deposited in the same account that fees under section 104.10 21 are deposited. 22 Sec. 27. NEW SECTION . 104.27 Enforcement. 23 The board shall enforce the provisions of this chapter. 24 Every licensee and member of the board shall furnish the 25 board with such evidence as the licensee or member may have 26 relative to any alleged violation of this chapter that is being 27 investigated. 28 Sec. 28. NEW SECTION . 104.28 Report of violators. 29 Each licensee and each member of the board shall report to 30 the department the name of any person who is practicing as 31 a home inspector without a license issued pursuant to this 32 chapter, according to the knowledge or reasonable belief of the 33 person making the report. The opening of an office or place of 34 business for the purpose of providing any services for which 35 -13- LSB 5676XS (3) 83 md/sc 13/ 17
S.F. 2256 a license is required by this chapter, the announcing to the 1 public in any way the intention to provide any such service, 2 the use of any professional designation, or the use of any 3 sign, card, circular, device, vehicle, or advertisement, as a 4 provider of any such services shall be prima facie evidence of 5 engaging in the practice of home inspections. 6 Sec. 29. NEW SECTION . 104.29 Attorney general. 7 Upon request of the board, the attorney general shall 8 institute in the name of the state the proper proceedings 9 against any person charged by the department with violating any 10 provision of this chapter. 11 Sec. 30. Section 272C.1, subsection 6, Code Supplement 12 2009, is amended by adding the following new paragraph: 13 NEW PARAGRAPH . ag. The home inspector examining board, 14 created pursuant to chapter 104. 15 Sec. 31. Section 272C.3, subsection 2, paragraph a, Code 16 Supplement 2009, is amended to read as follows: 17 a. Revoke a license, or suspend a license either until 18 further order of the board or for a specified period, upon any 19 of the grounds specified in section 100D.5, 104.21, 105.22, 20 147.55, 148.6, 148B.7, 152.10, 153.34, 154A.24, 169.13, 21 455B.219, 542.10, 542B.21, 543B.29, 544A.13, 544B.15, or 22 602.3203 or chapter 151 or 155, as applicable, or upon any 23 other grounds specifically provided for in this chapter 24 for revocation of the license of a licensee subject to the 25 jurisdiction of that board, or upon failure of the licensee 26 to comply with a decision of the board imposing licensee 27 discipline. 28 Sec. 32. Section 272C.4, subsection 6, Code Supplement 29 2009, is amended to read as follows: 30 6. Define by rule acts or omissions that are grounds for 31 revocation or suspension of a license under section 100D.5, 32 104.21, 105.22, 147.55, 148.6, 148B.7, 152.10, 153.34, 154A.24, 33 169.13, 455B.219, 542.10, 542B.21, 543B.29, 544A.13, 544B.15, 34 or 602.3203 or chapter 151 or 155, as applicable, and to define 35 -14- LSB 5676XS (3) 83 md/sc 14/ 17
S.F. 2256 by rule acts or omissions that constitute negligence, careless 1 acts, or omissions within the meaning of section 272C.3, 2 subsection 2, paragraph “b” , which licensees are required to 3 report to the board pursuant to section 272C.9, subsection 2. 4 Sec. 33. Section 272C.5, subsection 2, paragraph c, Code 5 Supplement 2009, is amended to read as follows: 6 c. Shall state whether the procedures are an alternative 7 to or an addition to the procedures stated in sections 100D.5, 8 104.22, 104.23, 105.23, 105.24, 148.6 through 148.9, 152.10, 9 152.11, 153.33, 154A.23, 542.11, 542B.22, 543B.35, 543B.36, and 10 544B.16. 11 Sec. 34. Section 558A.4, subsection 2, Code 2009, is amended 12 to read as follows: 13 2. The disclosure statement may include a report or written 14 opinion prepared by a home inspector licensed under chapter 104 15 or a person qualified to make judgment based on education or 16 experience, as provided by rules adopted by the commission, 17 including but not limited to a land surveyor licensed pursuant 18 to chapter 542B, a geologist, a structural pest control 19 operator licensed pursuant to section 206.6, or a building 20 contractor. The report or opinion on a matter within the scope 21 of the home inspector’s or person’s practice, profession, or 22 expertise shall satisfy the requirements of this section or 23 rules adopted by the commission regarding that matter required 24 to be disclosed. If the report or opinion is in response 25 to a request made for purposes of satisfying the disclosure 26 statement, the report or opinion shall indicate which part of 27 the disclosure statement the report or opinion satisfies. 28 Sec. 35. Section 558A.6, subsection 2, Code 2009, is amended 29 to read as follows: 30 2. The home inspector or person submitting a report or 31 opinion within the scope of the home inspector’s or person’s 32 practice, profession, or expertise, as provided in section 33 558A.4, for purposes of satisfying the disclosure statement, 34 shall not be liable under this chapter for any matter other 35 -15- LSB 5676XS (3) 83 md/sc 15/ 17
S.F. 2256 than a matter within the home inspector’s or person’s practice, 1 profession, or expertise, and which is required by the 2 disclosure statement, unless the home inspector or person 3 failed to use care ordinary in the home inspector’s or person’s 4 profession, practice, or area of expertise in preparing the 5 information. 6 Sec. 36. EFFECTIVE DATE. This Act takes effect July 1, 7 2011. 8 EXPLANATION 9 This bill establishes a home inspector licensing program in 10 new Code chapter 104. The bill supersedes and preempts all 11 licensing requirements of government subdivisions that relate 12 to home inspections, as defined in the bill. 13 The bill establishes a home inspector examining board to 14 test, license, and discipline persons licensed under the bill. 15 The board is comprised of nine members, including the heads of 16 the department of public safety and the department of public 17 health, the state building code commissioner, the state fire 18 marshal, and five members from various industries related to 19 home construction. The board is created as part of the Iowa 20 department of public safety, which is required to provide staff 21 support for certain board operations. The board is required 22 to adopt all rules necessary to carry out the board’s duties 23 and is authorized to establish standards of practice for home 24 inspectors by rule. 25 The bill specifies certain requirements for home inspector 26 license applications, examinations administered by the board, 27 license documents, and the home inspector license registry. 28 The bill imposes restrictions on the business of home 29 inspections without a license, imposes insurance requirements 30 for licensees, and authorizes the imposition and collection of 31 examination and license fees by the board. 32 The bill requires the board to adopt, by rule, general 33 qualifications for licensure and requires that an applicant for 34 a home inspector license be at least 21 years old at the time 35 -16- LSB 5676XS (3) 83 md/sc 16/ 17
S.F. 2256 the applicant takes the licensing examination. The bill also 1 identifies the grounds for denial, revocation, or suspension 2 of a license, specifies the conditions under which the board 3 may waive the written examination requirement, establishes 4 requirements and procedures for the renewal and reinstatement 5 of licenses, and directs the board to establish continuing 6 education requirements for licensees. 7 The bill limits advertising for home inspection services to 8 those persons who are licensed or those businesses who employ a 9 licensed home inspector. The bill provides for the issuance of 10 reciprocal licenses if certain conditions are met. 11 The bill specifies the enforcement authority of the board 12 and authorizes the board to impose a civil penalty, not to 13 exceed $5,000 per offense upon a person who violates any 14 provision of new Code chapter 104. The bill also provides that 15 any violation of new Code chapter 104 is a simple misdemeanor 16 for a first offense, and a serious misdemeanor for any 17 subsequent offense. 18 A simple misdemeanor is punishable by confinement for no 19 more than 30 days or a fine of at least $65 but not more than 20 $625 or by both. A serious misdemeanor is punishable by 21 confinement for no more than one year and a fine of at least 22 $315 but not more than $1,875. 23 The bill takes effect July 1, 2011. 24 -17- LSB 5676XS (3) 83 md/sc 17/ 17