S.F. 497 Section 1. NEW SECTION . 104.1 Title. 1 This chapter may be known and cited as the “Iowa Home 2 Inspector Registration and Bonding Act” . 3 Sec. 2. NEW SECTION . 104.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Registrant” means a person who registers under this 7 chapter. 8 2. “Department” means the Iowa department of public safety. 9 3. “Governmental subdivision” means any city, county, or 10 combination thereof. 11 4. “Home inspection” means the examination and evaluation 12 of the exterior and interior components of residential real 13 property, which includes the inspection of any two or more 14 of the following components of residential real property in 15 connection with or to facilitate the sale, lease, or other 16 conveyance of, or the proposed sale, lease, or other conveyance 17 of, residential real property: 18 a. Heating, ventilation, or air conditioning system. 19 b. Plumbing system. 20 c. Electrical system. 21 d. Structural composition. 22 e. Foundation. 23 f. Roof. 24 g. Masonry structure. 25 h. Any other residential real property component established 26 by rule under this chapter. 27 5. “Home inspector” means a person who, for compensation 28 either direct or indirect, performs home inspections. 29 6. “Residential real property” means real property that is 30 an owner-occupied single-family or two-family dwelling located 31 in this state and occupied or used or intended to be occupied 32 or used for residential purposes, including an interest in any 33 real property covered under chapter 499B. 34 Sec. 3. NEW SECTION . 104.3 Rules. 35 -1- SF 497 (5) 84 md/sc 1/ 5

S.F. 497 The department shall adopt rules necessary to implement this 1 chapter. 2 Sec. 4. NEW SECTION . 104.4 Fees. 3 1. A registrant under this chapter shall pay an annual 4 registration fee of fifty dollars to the department. 5 2. All fees collected under this chapter shall be considered 6 repayment receipts as defined in section 8.2 and shall be 7 retained by the department and shall be used for any of the 8 department’s duties under this chapter. Moneys retained by the 9 department pursuant to this section are not subject to transfer 10 or reversion to the general fund of the state. 11 Sec. 5. NEW SECTION . 104.5 Registration required —— 12 exception. 13 1. A person shall not perform a home inspection without 14 being registered under this chapter. 15 2. Following an initial registration, each registrant shall 16 file an annual registration renewal with the department. 17 3. A person shall not engage in the business of home 18 inspections unless at all times a registered home inspector 19 is employed by the person and is actively in charge of 20 performing the home inspections. An individual who performs 21 home inspections pursuant to a business operated as a sole 22 proprietorship shall be a registered home inspector. 23 4. The registration requirements of this chapter shall not 24 apply to any of the following: 25 a. An employee of any unit of state or local government, 26 including but not limited to cities, counties, or school 27 corporations, performing home inspections while acting within 28 the scope of the government employee’s employment. 29 b. An employee or an agent of an insurer organized or 30 operating under chapter 515, 518, or 518A, while acting within 31 the scope of the employee’s or agent’s employment or agency. 32 c. Real estate brokers or salespersons as defined in chapter 33 543B. 34 d. Professional engineers licensed under chapter 542B. 35 -2- SF 497 (5) 84 md/sc 2/ 5

S.F. 497 e. Architects registered pursuant to chapter 544A. 1 f. Certified real estate appraisers under chapter 543D. 2 g. An employee or agent of a financial institution, as 3 defined in section 527.2, subsection 9, while acting within the 4 scope of the employee’s or agent’s employment or agency. 5 Sec. 6. NEW SECTION . 104.6 Change of residence. 6 If a person registered to perform home inspections under 7 this chapter changes the person’s residence or place of 8 practice, the person shall so notify the department. 9 Sec. 7. NEW SECTION . 104.7 Local licensing or registration 10 requirements. 11 1. The provisions of this chapter regarding the 12 registration of home inspectors shall not be construed to 13 supersede or preempt home inspector licensing or registration 14 provisions of a governmental subdivision. 15 2. Nothing in this chapter shall prohibit a governmental 16 subdivision from assessing and collecting inspection fees 17 related to inspections performed by a registered home 18 inspector. 19 Sec. 8. NEW SECTION . 104.8 Insurance and surety bond 20 requirements. 21 1. A person who registers or renews a registration pursuant 22 to this chapter shall, prior to approval of the registration 23 or renewal by the department, provide evidence of a public 24 liability insurance policy and surety bond in an amount of not 25 less than fifteen thousand dollars. 26 2. If the registrant performs home inspections individually 27 through a business conducted as a sole proprietorship, the 28 registrant shall personally obtain the insurance and surety 29 bond required by this section. If the registrant is engaged 30 in the home inspection business as an employee or owner of a 31 legal entity, the insurance and surety bond required by this 32 section shall be obtained by the entity and shall cover all 33 home inspections performed by the entity. 34 3. The insurance and surety bond shall be written by 35 -3- SF 497 (5) 84 md/sc 3/ 5

S.F. 497 an entity licensed to do business in this state and each 1 registered home inspector shall maintain on file with the 2 department a certificate evidencing that the insurance or 3 surety bond shall not be canceled without the entity first 4 giving fifteen days’ written notice to the department. 5 Sec. 9. NEW SECTION . 104.9 Deceptive representations of 6 registration —— violations. 7 1. Only a person who is duly registered pursuant to this 8 chapter may represent in connection with the sale of home 9 inspection services the fact that the person is registered as a 10 home inspector in the state of Iowa. 11 2. A violation of this chapter or a rule adopted pursuant 12 to this chapter is an unlawful practice pursuant to section 13 714.16. The provisions of section 714.16, including but not 14 limited to provisions relating to investigation, injunctive 15 relief, and penalties, shall apply to this chapter. 16 Sec. 10. Section 558A.4, subsection 2, Code 2011, is amended 17 to read as follows: 18 2. The disclosure statement may include a report or written 19 opinion prepared by a home inspector registered under chapter 20 104 or a person qualified to make judgment based on education 21 or experience, as provided by rules adopted by the commission, 22 including but not limited to a land surveyor licensed pursuant 23 to chapter 542B , a geologist, a structural pest control 24 operator licensed pursuant to section 206.6 , or a building 25 contractor. The report or opinion on a matter within the scope 26 of the home inspector’s or person’s practice, profession, or 27 expertise shall satisfy the requirements of this section or 28 rules adopted by the commission regarding that matter required 29 to be disclosed. If the report or opinion is in response 30 to a request made for purposes of satisfying the disclosure 31 statement, the report or opinion shall indicate which part of 32 the disclosure statement the report or opinion satisfies. 33 Sec. 11. Section 558A.6, subsection 2, Code 2011, is amended 34 to read as follows: 35 -4- SF 497 (5) 84 md/sc 4/ 5

S.F. 497 2. The home inspector or person submitting a report or 1 opinion within the scope of the home inspector’s or person’s 2 practice, profession, or expertise, as provided in section 3 558A.4 , for purposes of satisfying the disclosure statement, 4 shall not be liable under this chapter for any matter other 5 than a matter within the home inspector’s or person’s practice, 6 profession, or expertise, and which is required by the 7 disclosure statement, unless the home inspector or person 8 failed to use care ordinary in the home inspector’s or person’s 9 profession, practice, or area of expertise in preparing the 10 information. 11 Sec. 12. EFFECTIVE DATE. This Act takes effect January 1, 12 2012. 13 -5- SF 497 (5) 84 md/sc 5/ 5