Senate Bill sb2016e1

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    SB 2016                                        First Engrossed



  1                      A bill to be entitled

  2         An act relating to home inspection services;

  3         creating s. 501.935, F.S.; providing for

  4         licensure of persons providing home inspection

  5         services; providing legislative intent and

  6         definitions; providing standards of practice;

  7         creating the Florida Home Inspection Advisory

  8         Council; providing licensure requirements,

  9         including grandfathering provisions; providing

10         exemptions; providing prohibited acts and

11         penalties; providing for complaints and

12         discipline; providing fees; requiring liability

13         insurance; exempting from duty to provide

14         repair cost estimates; providing for

15         reciprocity; providing continuing education

16         requirements; providing limitations; providing

17         for enforcement of violations; providing an

18         appropriation and authorizing positions;

19         providing an effective date.

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21  Be It Enacted by the Legislature of the State of Florida:

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23         Section 1.  Section 501.935, Florida Statutes, is

24  created to read:

25         501.935  Home inspection services; advisory council;

26  licensure requirements; exemptions; prohibited acts and

27  penalties; complaints and discipline; fees and insurance;

28  continuing education; reciprocity; limitations and

29  enforcement.--

30         (1)  INTENT.--It is the intent of this section to

31  require the licensing of home inspectors and to ensure that


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    SB 2016                                        First Engrossed



 1  consumers of home inspection services can rely on the

 2  competence of home inspectors, as determined by educational

 3  and experience requirements and testing.

 4         (2)  DEFINITIONS.--As used in this section, the term:

 5         (a)  "Department" means the Department of Business and

 6  Professional Regulation.

 7         (b)  "Home" means any residential real property, or

 8  manufactured or modular home, that is a single-family

 9  dwelling, duplex, triplex, quadruplex, condominium unit, or

10  cooperative unit. The term does not include the common areas

11  of condominiums or cooperatives.

12         (c)  "Home inspector" means any person who provides or

13  offers to provide a home inspection for a fee or other

14  compensation.

15         (d)  "Home inspection" means a limited visual

16  examination of one or more of the readily accessible installed

17  systems and components of a home, including the structure,

18  electrical system, HVAC system, roof covering, plumbing

19  system, interior components, exterior components, and site

20  conditions that affect the structure, for the purposes of

21  providing a written professional opinion of the condition of

22  the home.

23         (3)  STANDARDS OF PRACTICE.--The department, in

24  consultation with the Florida Home Inspection Advisory

25  Council, shall adopt by rule pursuant to ss. 120.536(1) and

26  120.54 the minimum standards of practice for home inspectors,

27  which shall be based on nationally recognized industry

28  standards of practice for home inspectors.

29         (4)  FLORIDA HOME INSPECTION ADVISORY COUNCIL.--

30         (a)  The department shall appoint a Florida Home

31  Inspection Advisory Council to consist of eight members who


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    SB 2016                                        First Engrossed



 1  are home inspectors having a minimum of 5 years' experience

 2  each, one consumer member, and one nonvoting member from the

 3  staff of the department.

 4         (b)  The mission of the advisory council is to provide

 5  industry input to the department and assist the department in

 6  developing standards of practice and rules pursuant to this

 7  section.

 8         (c)  The advisory council shall assist the department

 9  in the review of complaints filed against home inspectors.

10         (d)  The advisory council shall meet at least three

11  times each year.

12         (5)  EXEMPTIONS.--The following persons are not

13  required to comply with this section with regard to any

14  valuation condition, report, survey, evaluation, or estimate

15  rendered within the scope of practice authorized by such

16  license, except when such persons are operating within the

17  scope of this section:

18         (a)  A construction contractor licensed under chapter

19  489.

20         (b)  An architect licensed under chapter 481.

21         (c)  An engineer licensed under chapter 471.

22         (d)  A building code administrator, plans examiner, or

23  building code inspector licensed under part XII of chapter

24  468.

25         (e)  A certified real estate appraiser, licensed real

26  estate appraiser, or registered real estate appraiser licensed

27  under part II of chapter 475.

28         (f)  An inspector whose report is being provided to,

29  and is solely for the benefit of, the Federal Housing

30  Administration or the Veterans Administration.

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 1         (g)  An inspector conducting inspections for

 2  wood-destroying organisms on behalf of a licensee under

 3  chapter 482.

 4         (h)  A firesafety inspector certified under s. 633.081.

 5         (i)  An insurance adjuster licensed under part VI of

 6  chapter 626.

 7         (j)  An officer appointed by the court.

 8         (k)  A master septic tank contractor licensed under

 9  part III of chapter 489.

10         (l)  A certified energy auditor performing an energy

11  audit of any home or building conducted under chapter 366 or

12  rules adopted by the Public Service Commission.

13         (6)  LICENSE CRITERIA.--

14         (a)  A person may not provide or represent himself or

15  herself as able to perform a professional home inspection for

16  compensation unless the person is licensed in accordance with

17  this section.

18         (b)  A business entity may not provide or offer to

19  provide home inspection services unless each of the home

20  inspectors employed by the business entity is licensed in

21  accordance with this section.

22         (c)  A business entity may not use, in connection with

23  the name or signature of the business entity, the title "home

24  inspectors" to describe the business entity's services unless

25  each of the home inspectors employed by the business entity is

26  licensed in accordance with this section.

27         (7)  ELIGIBILITY.--To be eligible for a license as a

28  home inspector, an applicant must:

29         (a)  Be of good moral character.

30         (b)  Have successfully completed high school or its

31  equivalent.


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 1         (c)  Have completed a course of study of no less than

 2  90 hours that covers all of the following components of a

 3  home: structure, electrical system, HVAC system, roof

 4  covering, plumbing system, interior components, exterior

 5  components, and site conditions that affect the structure.

 6         (d)  Pass an examination that is psychometrically valid

 7  and meets the standards of the Council on Licensure,

 8  Enforcement, and Regulation, as determined by the department.

 9         (8)  GRANDFATHERING.--For the first year after the

10  enactment of this section, to be eligible for a license as a

11  home inspector, an applicant must:

12         (a)  Be of good moral character.

13         (b)  Have successfully completed high school or its

14  equivalent.

15         (c)  Have been engaged in the practice of home

16  inspection for compensation for not fewer than 3 years prior

17  to the effective date of this section.

18         (d)  Have performed not fewer than 250 home inspections

19  for compensation.

20         (e)  Have passed a psychometrically valid examination

21  that meets the standards in the Council on Licensure,

22  Enforcement, and Regulation publication "A Resource Brief on

23  Licensure Examinations," as determined by the department.

24         (9)  PROHIBITED ACTS; PENALTIES.--

25         (a)  A home inspector, a company that employs a home

26  inspector, or a company that is controlled by a company that

27  also has a financial interest in a company employing a home

28  inspector may not:

29         1.  Perform or offer to perform, prior to closing, for

30  any additional fee, any repairs to a home on which the

31  inspector or the inspector's company has prepared a home


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 1  inspection report. This paragraph does not apply to a home

 2  warranty company that is affiliated with or retains a home

 3  inspector to perform repairs pursuant to a claim made under a

 4  home warranty contract.

 5         2.  Inspect for a fee any property in which the

 6  inspector or the inspector's company has any financial or

 7  transfer interest.

 8         3.  Offer or deliver any compensation, inducement, or

 9  reward to the owner of the inspected property, or any broker

10  or agent therefor, for the referral of any business to the

11  inspector or the inspection company.

12         4.  Accept an engagement to make an omission or prepare

13  a report in which the inspection itself, or the fee payable

14  for the inspection, is contingent upon either the conclusions

15  in the report, preestablished findings, or the close of

16  escrow.

17         (b)  Any person who violates any provision of this

18  subsection commits a misdemeanor of the second degree,

19  punishable as provided in s. 775.082 or s. 775.083.

20         (10)  COMPLAINTS; DISCIPLINE.--

21         (a)  Complaints concerning a home inspector subject to

22  the provisions of this section shall be referred to the

23  department.

24         (b)  In lieu of investigation, the department may place

25  in a registry a copy of a complaint received by the department

26  against a licensed home inspector, the inspector's response to

27  the complaint, and a copy of any records of the department

28  concerning the complaint.

29         (c)  The department shall provide to the home inspector

30  a copy of the complaint no later than 30 days after the date

31  the complaint is received by the department alleging that the


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    SB 2016                                        First Engrossed



 1  inspector has engaged in conduct that is grounds for

 2  discipline.

 3         (d)  After receiving a copy of the complaint, the home

 4  inspector may place in a registry a statement within 30 days

 5  that describes the inspector's view of the correctness or

 6  relevance of any of the information contained in the

 7  complaint.

 8         (e)  The department shall make the complaint and the

 9  home inspector's response to the complaint available to the

10  public.

11         (f)  The department shall remove all complaints against

12  and other information concerning a home inspector from the

13  registry if, for a period of 2 years from the date of the most

14  recent complaint filed in the registry, no further complaints

15  have been filed against the inspector.

16         (g)  Unworthy or frivolous complaints shall be

17  discarded and shall not be retained.

18         (h)  The department may make investigations or conduct

19  hearings pursuant to chapter 120 to determine whether a

20  violation of this section has occurred.

21         (i)  The department may refuse to grant a home

22  inspector license or may suspend or revoke a home inspector

23  license upon proof to the satisfaction of the department that

24  the applicant or licensee has participated in an unfair

25  business practice relating to the provision of home inspection

26  services.

27         (11)  FEES.--The department shall by rule establish the

28  fees for licensure, renewal of licensure, and other services

29  provided by the department under this section. Fees

30  established under this subsection may not exceed amounts

31  sufficient to defray the administrative costs to the state


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 1  under this section and shall be comparable to those charged

 2  for other similar, regulated professions.

 3         (12)  INSURANCE.--A licensed home inspector must

 4  maintain a commercial general liability insurance policy in an

 5  amount of not less that $300,000.

 6         (13)  REPAIR COST ESTIMATES.--Home inspectors are not

 7  required to provide estimates related to the cost of repair of

 8  an inspected property.

 9         (14)  RECIPROCITY.--The department shall issue a home

10  inspector license to any person who holds a valid license,

11  certificate, or registration issued by another state,

12  territory, or possession of the United States or the District

13  of Columbia that has standards and licensing requirements

14  substantially equivalent to or exceeding those of this state,

15  as determined by the Florida Home Inspection Advisory Council,

16  upon payment of the fee imposed and submission of the written

17  application provided by the department.

18         (15)  CONTINUING EDUCATION REQUIREMENTS.--A licensed

19  home inspector must complete at least 14 hours of continuing

20  education approved by the department during each calendar year

21  in order to maintain his or her license.

22         (16)  STATUTE OF LIMITATIONS.--Chapter 95 governs when

23  an action to enforce an obligation, duty, or right arising

24  under this section must be commenced.

25         (17)  ENFORCEMENT OF VIOLATIONS.--Any violation of this

26  section constitutes a deceptive and unfair trade practice,

27  punishable as provided in part II of this chapter.

28         Section 2.  For the 2004-2005 fiscal year, the sum of

29  $642,463 is appropriated from the Professional Regulation

30  Trust Fund, and four positions are authorized, to the

31  Department of Business and Professional Regulation for the


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    SB 2016                                        First Engrossed



 1  purpose of conducting licensing and regulatory activities

 2  associated with home inspection services.

 3         Section 3.  This act shall take effect July 1, 2004.

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