| 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 appropriation and |
| 15 | authorizing positions; providing an effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Section 501.935, Florida Statutes, is created |
| 20 | to read: |
| 21 | 501.935 Home inspection services; advisory council; |
| 22 | licensure requirements; exemptions; prohibited acts and |
| 23 | penalties; complaints and discipline; fees and insurance; |
| 24 | continuing education; reciprocity; limitations and |
| 25 | enforcement.-- |
| 26 | (1) INTENT.--It is the intent of this section to require |
| 27 | the licensing of home inspectors and to ensure that consumers of |
| 28 | home inspection services can rely on the competence of home |
| 29 | inspectors, as determined by educational and experience |
| 30 | requirements and testing. |
| 31 | (2) DEFINITIONS.--As used in this section, the term: |
| 32 | (a) "Department" means the Department of Business and |
| 33 | Professional Regulation. |
| 34 | (b) "Home" means any residential real property, or |
| 35 | manufactured or modular home, that is a single-family dwelling, |
| 36 | duplex, triplex, quadruplex, condominium unit, or cooperative |
| 37 | unit. The term does not include the common areas of condominiums |
| 38 | or cooperatives. |
| 39 | (c) "Home inspector" means any person who provides or |
| 40 | offers to provide a home inspection for a fee or other |
| 41 | compensation. |
| 42 | (d) "Home inspection" means a limited visual examination |
| 43 | of one or more of the readily accessible installed systems and |
| 44 | components of a home, including the structure, electrical |
| 45 | system, HVAC system, roof covering, plumbing system, interior |
| 46 | components, exterior components, and site conditions that affect |
| 47 | the structure, for the purposes of providing a written |
| 48 | professional opinion of the condition of the home. |
| 49 | (3) STANDARDS OF PRACTICE.--The department, in |
| 50 | consultation with the Florida Home Inspection Advisory Council, |
| 51 | shall adopt by rule pursuant to ss. 120.536(1) and 120.54 the |
| 52 | minimum standards of practice for home inspectors, which shall |
| 53 | be based on nationally recognized industry standards of practice |
| 54 | for home inspectors. |
| 55 | (4) FLORIDA HOME INSPECTION ADVISORY COUNCIL.-- |
| 56 | (a) The department shall appoint a Florida Home Inspection |
| 57 | Advisory Council to consist of eight members who are home |
| 58 | inspectors having a minimum of 5 years' experience each, one |
| 59 | consumer member, and one nonvoting member from the staff of the |
| 60 | department. |
| 61 | (b) The mission of the advisory council is to provide |
| 62 | industry input to the department and assist the department in |
| 63 | developing standards of practice and rules pursuant to this |
| 64 | section. |
| 65 | (c) The advisory council shall assist the department in |
| 66 | the review of complaints filed against home inspectors. |
| 67 | (d) The advisory council shall meet at least three times |
| 68 | each year. |
| 69 | (5) EXEMPTIONS.--The following persons are not required to |
| 70 | comply with this section with regard to any valuation condition, |
| 71 | report, survey, evaluation, or estimate rendered within the |
| 72 | scope of practice authorized by such license, except when such |
| 73 | persons are operating within the scope of this section: |
| 74 | (a) A construction contractor licensed under chapter 489. |
| 75 | (b) An architect licensed under chapter 481. |
| 76 | (c) An engineer licensed under chapter 471. |
| 77 | (d) A building code administrator, plans examiner, or |
| 78 | building code inspector licensed under part XII of chapter 468. |
| 79 | (e) A certified real estate appraiser, licensed real |
| 80 | estate appraiser, or registered real estate appraiser licensed |
| 81 | under part II of chapter 475. |
| 82 | (f) An inspector whose report is being provided to, and is |
| 83 | solely for the benefit of, the Federal Housing Administration or |
| 84 | the Veterans Administration. |
| 85 | (g) An inspector conducting inspections for wood- |
| 86 | destroying organisms on behalf of a licensee under chapter 482. |
| 87 | (h) A firesafety inspector certified under s. 633.081. |
| 88 | (i) An insurance adjuster licensed under part VI of |
| 89 | chapter 626. |
| 90 | (j) An officer appointed by the court. |
| 91 | (k) A master septic tank contractor licensed under part |
| 92 | III of chapter 489. |
| 93 | (l) A certified energy auditor performing an energy audit |
| 94 | of any home or building conducted under chapter 366 or rules |
| 95 | adopted by the Public Service Commission. |
| 96 | (6) LICENSE CRITERIA.-- |
| 97 | (a) A person may not provide or represent himself or |
| 98 | herself as able to perform a professional home inspection for |
| 99 | compensation unless the person is licensed in accordance with |
| 100 | this section. |
| 101 | (b) A business entity may not provide or offer to provide |
| 102 | home inspection services unless each of the home inspectors |
| 103 | employed by the business entity is licensed in accordance with |
| 104 | this section. |
| 105 | (c) A business entity may not use, in connection with the |
| 106 | name or signature of the business entity, the title "home |
| 107 | inspectors" to describe the business entity's services unless |
| 108 | each of the home inspectors employed by the business entity is |
| 109 | licensed in accordance with this section. |
| 110 | (7) ELIGIBILITY.--To be eligible for a license as a home |
| 111 | inspector, an applicant must: |
| 112 | (a) Be of good moral character. |
| 113 | (b) Have successfully completed high school or its |
| 114 | equivalent. |
| 115 | (c) Have completed a course of study of no less than 90 |
| 116 | hours that covers all of the following components of a home: |
| 117 | structure, electrical system, HVAC system, roof covering, |
| 118 | plumbing system, interior components, exterior components, and |
| 119 | site conditions that affect the structure. |
| 120 | (d) Pass an examination that is psychometrically valid and |
| 121 | meets the standards of the Council on Licensure, Enforcement, |
| 122 | and Regulation, as determined by the department. |
| 123 | (8) GRANDFATHERING.--For the first year after the |
| 124 | enactment of this section, to be eligible for a license as a |
| 125 | home inspector, an applicant must: |
| 126 | (a) Be of good moral character. |
| 127 | (b) Have successfully completed high school, its |
| 128 | equivalent, or have been in the business of home inspection |
| 129 | services for at least 5 years. |
| 130 | (c) Have been engaged in the practice of home inspection |
| 131 | for compensation for not fewer than 3 years prior to the |
| 132 | effective date of this section. |
| 133 | (d) Have performed not fewer than 250 home inspections for |
| 134 | compensation. |
| 135 | (e) Have passed a psychometrically valid examination that |
| 136 | meets the standards in the Council on Licensure, Enforcement, |
| 137 | and Regulation publication "A Resource Brief on Licensure |
| 138 | Examinations," as determined by the department. |
| 139 | (9) PROHIBITED ACTS; PENALTIES.-- |
| 140 | (a) A home inspector, a company that employs a home |
| 141 | inspector, or a company that is controlled by a company that |
| 142 | also has a financial interest in a company employing a home |
| 143 | inspector may not: |
| 144 | 1. Perform or offer to perform, prior to closing, for any |
| 145 | additional fee, any repairs to a home on which the inspector or |
| 146 | the inspector's company has prepared a home inspection report. |
| 147 | This paragraph does not apply to a home warranty company that is |
| 148 | affiliated with or retains a home inspector to perform repairs |
| 149 | pursuant to a claim made under a home warranty contract. |
| 150 | 2. Inspect for a fee any property in which the inspector |
| 151 | or the inspector's company has any financial or transfer |
| 152 | interest. |
| 153 | 3. Offer or deliver any compensation, inducement, or |
| 154 | reward to the owner of the inspected property, or any broker or |
| 155 | agent therefor, for the referral of any business to the |
| 156 | inspector or the inspection company. |
| 157 | 4. Accept an engagement to make an omission or prepare a |
| 158 | report in which the inspection itself, or the fee payable for |
| 159 | the inspection, is contingent upon either the conclusions in the |
| 160 | report, preestablished findings, or the close of escrow. |
| 161 | (b) Any person who violates any provision of this |
| 162 | subsection commits a misdemeanor of the second degree, |
| 163 | punishable as provided in s. 775.082 or s. 775.083. |
| 164 | (10) COMPLAINTS; DISCIPLINE.-- |
| 165 | (a) Complaints concerning a home inspector subject to the |
| 166 | provisions of this section shall be referred to the department. |
| 167 | (b) In lieu of investigation, the department may place in |
| 168 | a registry a copy of a complaint received by the department |
| 169 | against a licensed home inspector, the inspector's response to |
| 170 | the complaint, and a copy of any records of the department |
| 171 | concerning the complaint. |
| 172 | (c) The department shall provide to the home inspector a |
| 173 | copy of the complaint no later than 30 days after the date the |
| 174 | complaint is received by the department alleging that the |
| 175 | inspector has engaged in conduct that is grounds for discipline. |
| 176 | (d) After receiving a copy of the complaint, the home |
| 177 | inspector may place in a registry a statement within 30 days |
| 178 | that describes the inspector's view of the correctness or |
| 179 | relevance of any of the information contained in the complaint. |
| 180 | (e) The department shall make the complaint and the home |
| 181 | inspector's response to the complaint available to the public. |
| 182 | (f) The department shall remove all complaints against and |
| 183 | other information concerning a home inspector from the registry |
| 184 | if, for a period of 2 years from the date of the most recent |
| 185 | complaint filed in the registry, no further complaints have been |
| 186 | filed against the inspector. |
| 187 | (g) Unworthy or frivolous complaints shall be discarded |
| 188 | and shall not be retained. |
| 189 | (h) The department may make investigations or conduct |
| 190 | hearings pursuant to chapter 120 to determine whether a |
| 191 | violation of this section has occurred. |
| 192 | (i) The department may refuse to grant a home inspector |
| 193 | license or may suspend or revoke a home inspector license upon |
| 194 | proof to the satisfaction of the department that the applicant |
| 195 | or licensee has participated in an unfair business practice |
| 196 | relating to the provision of home inspection services. |
| 197 | (11) FEES.--The department shall by rule establish the |
| 198 | fees for licensure, renewal of licensure, and other services |
| 199 | provided by the department under this section. Fees established |
| 200 | under this subsection may not exceed amounts sufficient to |
| 201 | defray the administrative costs to the state under this section |
| 202 | and shall be comparable to those charged for other similar, |
| 203 | regulated professions. |
| 204 | (12) INSURANCE.--A licensed home inspector must maintain a |
| 205 | commercial general liability insurance policy in an amount of |
| 206 | not less that $300,000. |
| 207 | (13) REPAIR COST ESTIMATES.--Home inspectors are not |
| 208 | required to provide estimates related to the cost of repair of |
| 209 | an inspected property. |
| 210 | (14) RECIPROCITY.--The department shall issue a home |
| 211 | inspector license to any person who holds a valid license, |
| 212 | certificate, or registration issued by another state, territory, |
| 213 | or possession of the United States or the District of Columbia |
| 214 | that has standards and licensing requirements substantially |
| 215 | equivalent to or exceeding those of this state, as determined by |
| 216 | the Florida Home Inspection Advisory Council, upon payment of |
| 217 | the fee imposed and submission of the written application |
| 218 | provided by the department. |
| 219 | (15) CONTINUING EDUCATION REQUIREMENTS.--A licensed home |
| 220 | inspector must complete at least 14 hours of continuing |
| 221 | education approved by the department during each calendar year |
| 222 | in order to maintain his or her license. |
| 223 | (16) STATUTE OF LIMITATIONS.--Chapter 95 governs when an |
| 224 | action to enforce an obligation, duty, or right arising under |
| 225 | this section must be commenced. |
| 226 | (17) ENFORCEMENT OF VIOLATIONS.--Any violation of this |
| 227 | section constitutes a deceptive and unfair trade practice, |
| 228 | punishable as provided in part II of this chapter. |
| 229 | Section 2. For the 2005-2006 fiscal year, the sum of |
| 230 | $642,463 is appropriated from the Professional Regulation Trust |
| 231 | Fund, and four positions are authorized, to the Department of |
| 232 | Business and Professional Regulation for the purpose of |
| 233 | conducting licensing and regulatory activities associated with |
| 234 | home inspection services. |
| 235 | Section 3. This act shall take effect July 1, 2005. |