HB 0509 2004
   
1 A bill to be entitled
2          An act relating to home inspection services; creating s.
3    501.935, F.S.; providing for licensure of persons
4    providing home inspection services; providing legislative
5    intent and definitions; providing standards of practice;
6    creating the Florida Home Inspection Advisory Council;
7    providing licensure requirements, including grandfathering
8    provisions; providing exemptions; providing prohibited
9    acts and penalties; providing for complaints and
10    discipline; providing fees; requiring liability insurance;
11    exempting from duty to provide repair cost estimates;
12    providing for reciprocity; providing continuing education
13    requirements; providing limitations; providing for
14    enforcement of violations; providing an effective date.
15         
16          Be It Enacted by the Legislature of the State of Florida:
17         
18          Section 1. Section 501.935, Florida Statutes, is created
19    to read:
20          501.935 Home inspection services; advisory council;
21    licensure requirements; exemptions; prohibited acts and
22    penalties; complaints and discipline; fees and insurance;
23    continuing education; reciprocity; limitations and
24    enforcement.--
25          (1) INTENT.--It is the intent of this section to require
26    the licensing of home inspectors and to ensure that consumers of
27    home inspection services can rely on the competence of home
28    inspectors, as determined by educational and experience
29    requirements and testing.
30          (2) DEFINITIONS.--As used in this section, the term:
31          (a) "Department" means the Department of Agriculture and
32    Consumer Services.
33          (b) "Home" means any residential real property, or
34    manufactured or modular home, that is a single-family dwelling,
35    duplex, triplex, quadruplex, condominium unit, or cooperative
36    unit. The term does not include the common areas of condominiums
37    or cooperatives.
38          (c) "Home inspector" means any person who provides or
39    offers to provide a home inspection for a fee or other
40    compensation.
41          (d) "Home inspection" means a limited visual examination
42    of one or more of the readily accessible installed systems and
43    components of a home, including the structure, electrical
44    system, HVAC system, roof covering, plumbing system, interior
45    components, exterior components, and site conditions that affect
46    the structure, for the purposes of providing a written
47    professional opinion of the condition of the home.
48          (3) STANDARDS OF PRACTICE.--The department, in
49    consultation with the Florida Home Inspection Advisory Council,
50    shall adopt by rule pursuant to ss. 120.536(1) and 120.54 the
51    minimum standards of practice for home inspectors, which shall
52    be based on nationally recognized industry standards of practice
53    for home inspectors.
54          (4) FLORIDA HOME INSPECTION ADVISORY COUNCIL.--
55          (a) The department shall appoint a Florida Home Inspection
56    Advisory Council to consist of eight members who are home
57    inspectors having a minimum of 5 years' experience each, one
58    consumer member, and one nonvoting member from the staff of the
59    department.
60          (b) The mission of the advisory council is to provide
61    industry input to the department and assist the department in
62    developing standards of practice and rules pursuant to this
63    section.
64          (c) The advisory council shall assist the department in
65    the review of complaints filed against home inspectors.
66          (d) The advisory council shall meet at least three times
67    each year.
68          (5) EXEMPTIONS.--The following persons are not required to
69    comply with this section with regard to any valuation condition,
70    report, survey, evaluation, or estimate rendered within the
71    scope of practice authorized by such license, except when such
72    persons are operating within the scope of this section:
73          (a) A construction contractor licensed under chapter 489.
74          (b) An architect licensed under chapter 481.
75          (c) An engineer licensed under chapter 471.
76          (d) A building code administrator, plans examiner, or
77    building code inspector licensed under part XII of chapter 468.
78          (e) A certified real estate appraiser, licensed real
79    estate appraiser, or registered real estate appraiser licensed
80    under part II of chapter 475.
81          (f) An inspector whose report is being provided to, and is
82    solely for the benefit of, the Federal Housing Administration or
83    the Veterans Administration.
84          (g) An inspector conducting inspections for wood-
85    destroying organisms on behalf of a licensee under chapter 482.
86          (h) A firesafety inspector certified under s. 633.081.
87          (i) An insurance adjuster licensed under part VI of
88    chapter 626.
89          (j) An officer appointed by the court.
90          (6) LICENSE CRITERIA.--
91          (a) A person may not provide or represent himself or
92    herself as able to perform a professional home inspection for
93    compensation unless the person is licensed in accordance with
94    this section.
95          (b) A business entity may not provide or offer to provide
96    home inspection services unless each of the home inspectors
97    employed by the business entity is licensed in accordance with
98    this section.
99          (c) A business entity may not use, in connection with the
100    name or signature of the business entity, the title "home
101    inspectors" to describe the business entity's services unless
102    each of the home inspectors employed by the business entity is
103    licensed in accordance with this section.
104          (7) ELIGIBILITY.--To be eligible for a license as a home
105    inspector, an applicant must:
106          (a) Be of good moral character.
107          (b) Have successfully completed high school or its
108    equivalent.
109          (c) Have completed a course of study of no less than 90
110    hours that covers all of the following components of a home:
111    structure, electrical system, HVAC system, roof covering,
112    plumbing system, interior components, exterior components, and
113    site conditions that affect the structure.
114          (d) Pass an examination that is psychometrically valid and
115    meets the standards of the Council on Licensure, Enforcement,
116    and Regulation, as determined by the department.
117          (8) GRANDFATHERING.--For the first year after the
118    enactment of this section, to be eligible for a license as a
119    home inspector, an applicant must:
120          (a) Be of good moral character.
121          (b) Have successfully completed high school or its
122    equivalent.
123          (c) Have been engaged in the practice of home inspection
124    for compensation for not fewer than 3 years prior to the
125    effective date of this section.
126          (d) Have performed not fewer than 250 home inspections for
127    compensation.
128          (e) Have passed a psychometrically valid examination that
129    meets the standards in the Council on Licensure, Enforcement,
130    and Regulation publication "A Resource Brief on Licensure
131    Examinations," as determined by the department.
132          (9) PROHIBITED ACTS; PENALTIES.--
133          (a) A home inspector, a company that employs a home
134    inspector, or a company that is controlled by a company that
135    also has a financial interest in a company employing a home
136    inspector may not:
137          1. Perform or offer to perform, prior to closing, for any
138    additional fee, any repairs to a home on which the inspector or
139    the inspector's company has prepared a home inspection report.
140    This paragraph does not apply to a home warranty company that is
141    affiliated with or retains a home inspector to perform repairs
142    pursuant to a claim made under a home warranty contract.
143          2. Inspect for a fee any property in which the inspector
144    or the inspector's company has any financial or transfer
145    interest.
146          3. Offer or deliver any compensation, inducement, or
147    reward to the owner of the inspected property, or any broker or
148    agent therefor, for the referral of any business to the
149    inspector or the inspection company.
150          4. Accept an engagement to make an omission or prepare a
151    report in which the inspection itself, or the fee payable for
152    the inspection, is contingent upon either the conclusions in the
153    report, preestablished findings, or the close of escrow.
154          (b) Any person who violates any provision of this
155    subsection commits a misdemeanor of the second degree,
156    punishable as provided in s. 775.082 or s. 775.083.
157          (10) COMPLAINTS; DISCIPLINE.--
158          (a) Complaints concerning a home inspector subject to the
159    provisions of this section shall be referred to the department.
160          (b) In lieu of investigation, the department may place in
161    a registry a copy of a complaint received by the department
162    against a licensed home inspector, the inspector's response to
163    the complaint, and a copy of any records of the department
164    concerning the complaint.
165          (c) The department shall provide to the home inspector a
166    copy of the complaint no later than 30 days after the date the
167    complaint is received by the department alleging that the
168    inspector has engaged in conduct that is grounds for discipline.
169          (d) After receiving a copy of the complaint, the home
170    inspector may place in a registry a statement within 30 days
171    that describes the inspector's view of the correctness or
172    relevance of any of the information contained in the complaint.
173          (e) The department shall make the complaint and the home
174    inspector's response to the complaint available to the public.
175          (f) The department shall remove all complaints against and
176    other information concerning a home inspector from the registry
177    if, for a period of 2 years from the date of the most recent
178    complaint filed in the registry, no further complaints have been
179    filed against the inspector.
180          (g) Unworthy or frivolous complaints shall be discarded
181    and shall not be retained.
182          (h) The department may make investigations or conduct
183    hearings pursuant to chapter 120 to determine whether a
184    violation of this section has occurred.
185          (i) The department may refuse to grant a home inspector
186    license or may suspend or revoke a home inspector license upon
187    proof to the satisfaction of the department that the applicant
188    or licensee has participated in an unfair business practice
189    relating to the provision of home inspection services.
190          (11) FEES.--The department shall by rule establish the
191    fees for licensure, renewal of licensure, and other services
192    provided by the department under this section. Fees established
193    under this subsection may not exceed amounts sufficient to
194    defray the administrative costs to the state under this section
195    and shall be comparable to those charged for other similar,
196    regulated professions.
197          (12) INSURANCE.--A licensed home inspector must maintain a
198    commercial general liability insurance policy in an amount of
199    not less that $300,000.
200          (13) REPAIR COST ESTIMATES.--Home inspectors are not
201    required to provide estimates related to the cost of repair of
202    an inspected property.
203          (14) RECIPROCITY.--The department shall issue a home
204    inspector license to any person who holds a valid license,
205    certificate, or registration issued by another state, territory,
206    or possession of the United States or the District of Columbia
207    that has standards and licensing requirements substantially
208    equivalent to or exceeding those of this state, as determined by
209    the Florida Home Inspection Advisory Council, upon payment of
210    the fee imposed and submission of the written application
211    provided by the department.
212          (15) CONTINUING EDUCATION REQUIREMENTS.--A licensed home
213    inspector must complete at least 14 hours of continuing
214    education approved by the department during each calendar year
215    in order to maintain his or her license.
216          (16) STATUTE OF LIMITATIONS.--Chapter 95 governs when an
217    action to enforce an obligation, duty, or right arising under
218    this section must be commenced.
219          (17) ENFORCEMENT OF VIOLATIONS.--Any violation of this
220    section constitutes a deceptive and unfair trade practice,
221    punishable as provided in part II of this chapter.
222          Section 2. This act shall take effect July 1, 2004.