State Rep Benjamin Baroody sponsors InterNACHI Home Inspection Bill.
HOUSE BILL: # Yet to be Determined
AN ACT, relative to the Regulation and Licensure of Home / Residential / Building Inspectors.
SPONSORS:
State Representatives:
Benjamin Baroody,
Angeline Kopka,
COMMITTEE: Municipal and County Government
AMENDED ANALYSIS
This bill establishes the licensure of persons providing home inspection services and the regulation of such persons by a board of home inspectors.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struck through.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT relative to the Regulation and Licensure of Home / Residential / Building Inspectors.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter;
Home / Residential / Building Inspectors. Amend RSA by inserting after chapter 329-A the following new chapter:
Footnotes are designated by items with the following brackets { }
CHAPTER 329-B??
HOME / RESIDENTIAL / BUILDING INSPECTORS
329-B:1 Purpose. The purpose of this chapter is to protect the people of the state of New Hampshire by requiring the licensing of “Home / Residential / Building Inspectors” to assure that consumers of Home / Residential / Building inspection services can rely on the qualifications and competence of a Home Residential / Building inspector. {1.}
329-B:2 Definitions. In this chapter:
I. “Apprentice’’ means any person who is engaged in learning and assisting in Home Residential / Building inspection under an apprenticeship program acceptable to the NH Licensing board. {2.}
II. “Board’’ means the New Hampshire Licensing board of Home Residential / Building inspectors, established by RSA 329-B:3.??
III. “Home /Residential / Building inspection” means a visual analysis for the purposes of providing a professional opinion of the condition of a residential building and its related structures, any clearly visible and Readily accessible {3.} installed components and the operation of the building systems, including the controls normally operated by the owner, for the following components of a residential building: heating system, electrical system, cooling system, plumbing system, structural components, foundation, roof covering, exterior and interior components and site aspects as they affect the building. A Home /Residential / Building inspection shall not require identifying concealed conditions or latent defects. NOTE: The visual inspection must adhere to the Standards of Practice as outlined and dictated in the attached document. {See Attachment}
IV. “Home /Residential / Building inspector” means any person who is licensed by the New Hampshire State board as a “Home / Residential / Building inspector” and who engages in the business of performing home inspections and writing any type of inspection reports.
V. Home Residential / Building report means a written {and or verbal} report prepared by any person and or inspector for compensation and issued after any type of inspection of the items and components described and listed in Section III. The inspector shall report:
(A.) On those visible, and readily accessible systems & components inspected
which, in the professional opinion of the inspector, are significantly deficient.
or are near the end of their service lives.
(B.) A reason why “On the Day of the Inspection.”, if not self- evident, the visible, readily accessible system or component is
significantly deficient or near the end of its service life. {4.}
(C.) The inspector’s recommendations to monitor the reported deficiency, or to have a “Certified Specialist” further evaluate and or conduct corrections / repairs. [IE. Licensed Electrician, Licensed Plumber, Structural Engineer, etc.] {5.}
(D.) Any visible and readily accessible systems & components designated for inspection, which were present at the time of the inspection but were not inspected, and a reason they were not inspected. {6.}
VI. “Residential building” means a structure consisting of from one or more family dwelling units, and including a single-family home, a multifamily dwelling, manufactured housing as defined in RSA 384:16-d, II, and any single family Townhouse / Condominium unit(s), wholly or partly used or occupied, or intended to be used or occupied, as the home /residence or office of one or more persons.
329-B:3?? New Hampshire, Home / Residential / Building Inspector’s Licensing Board.
I. There shall be a board of home inspectors, consisting of 7-members, including 3-home inspectors from different Home Inspector associations and/or one non affiliated independent inspector {7.}, One attorney licensed to practice in this state, One Architect, One PE and/or one Code Compliance Inspector, and one public member, each to be appointed by the governor, with the approval of the council, to a term of 4 years. No member of the board shall be appointed to more than 2 terms.
{A.} The Home Inspectors should not be dominated by just one organization or affiliation.
{IE. ASHI, InterNACHI, etc.}
{B.} Any or all of the “Certified / Licensed” Board members maybe active or retired.
II. The Public Member of the board of home inspectors shall be a person who is not, and never has been, a past or present Real Estate Agent, Home / Residential / Building inspector or the spouse of an inspector, or who is related to or living with a home inspector or past or present real estate agent, and who does not have, and never has had, a material financial interest in either the provision of home inspection services or an activity directly related to the home inspection profession at any time during the 5 years preceding appointment. {8.}
III. The board shall be an administratively attached agency, under RSA 21-G:10??, to the department of state.
329-B:4?? Compensation and Expenses. Members of the board shall each be allowed the sum of $30 per day or Minimum Wage whichever is greater. {9.} {This is below minimum wage and is thereby illegal.} and their necessary traveling expenses incurred in carrying out their official duties.
329-B:5?? Organization and Meetings. The board shall hold at least 4 regular meetings each year, and special meetings may be held at such times as the business of the board may require. Notice of all meetings shall be posted a minimum of 30-days in advance or given in such manner as the rules of the board may provide. The board shall annually elect a chairperson and a vice-chairperson from among its members. A quorum of the board shall consist of not less than 4 members, at least one of whom shall be a public member. If the Public Member fails to attend and a quorum exists then the meeting shall continue. Failure to attend two or meetings without just cause is reason for expulsion of any member.
329-B:6 Fees. The board shall establish fees for examination of applicants, for licensure and for renewal of licensure to practice under this chapter, and for transcribing and transferring records and other services. The fees established by the board shall be sufficient to produce estimated revenues equal to 125 percent of the direct operating expenses of the board for the previous fiscal year. NOTE: {There was no “previous year” for a home inspectors Board, so what is the operating cost going to be based on?}
329-B:7 Receipts and Disbursements. The board shall receive and account at least monthly for all moneys derived under the provisions of this chapter, and shall pay the same to the state treasurer. The board may employ such clerical or other assistants as are necessary for the proper performance of its work, and may make expenditures from this fund for any purpose which, in the opinion of the board, is reasonably necessary for the proper performance of its duties under this chapter. Under no circumstances shall the total amount of payments made hereunder exceed the amount of the fees collected hereunder. Any balance in the account at the end of each fiscal year shall be carried over for operating expenses for the next fiscal year.
329-B:8 Examinations. The New Hampshire board for Licensing & Regulating Home / Residential / Building Inspectors shall have authority to examine and license Home / Residential / Building Inspectors. When issued, such license shall be valid throughout the state for a period of 24-months, and the licensee shall be entitled to perform the work of a Home / Residential / Building Inspectors inspector anywhere within the state without any payment or additional fee. Each applicant for a license shall present to the board on a blank furnished by the board a written application for license, containing such information as the board may require, for a Grandfathering License, New Applicants, and renewals.
329-B:9 Rulemaking. The board shall adopt rules, pursuant to RSA 541-A??, relative to:
I. The design and content of all forms and applications required under this chapter.
II. The application procedure for a Grandfathering License, a New License, and a Renewal license to practice under this chapter.
III. The qualifications of applicants in addition to those requirements set under this chapter.
IV. How an applicant shall be examined, including the type and form of the examination.
V. For New Applicants and apprentices the disposition of one or more of the following Nationally Recognized proctored examinations {IE. ICC, InterNACHI, NHIE} given and administered by an independent testing facility including provision for immediate test results to examinees.
VI. How a license to practice under this chapter shall be renewed every 24-months, including the requirements for continuing education. For renewals, The Board will recognize and honor the length time limitations / expiration dates of the above mentioned tests.
For CEU’s the State will require 6-per Calendar year, and recognize {10.} any certification, certificate / diploma of a CEU issued by any established New Hampshire State Home Inspectors associations and/or Nationally Recognized Non Profit / Not for Profit Home Inspector Association, or for profit association and or their State Chapter. IE. The International Code Council ICC, The American Society of Home Inspectors ASHI, or The National Association of Certified Home Inspectors InterNACHI, etc. All certifications, certificates / diplomas must be signed and dated, and the course / subject matter must be pertinent to the Home / Residential / Building inspection industry. Inspectors having acquired or acquiring more than 6-CEU’s may present them to the board for future credit.
VII. The establishment of all fees required under this chapter.
VIII. Ethical and professional standards required to be met by each holder of a license to practice under this chapter and how disciplinary actions by the board shall be implemented for violations of these standards.
IX. The training and experience requirements of New Applicants and of apprentices.
X. Procedures for the conduct of hearings consistent with the requirements of due process.
329-B:10 License Criteria.
I. No person shall provide, nor present, call or represent him or herself as able to provide a home or building inspection for compensation unless licensed in accordance with the provisions of this chapter. No business entity may provide home / building inspection services unless each of the inspectors employed by the business entity is licensed in accordance with the provisions of this chapter. No business entity may use, in connection with the name or signature of the business entity, the title “Home / Residential / Building Inspectors” or any deviation thereof to describe the business entity’s services, unless each of the inspectors employed by the business entity is licensed in accordance with the provisions of this chapter, or is an apprentice who has passed one of the proctored written requirements listed above, is fully insured, and is conducting visual inspections following the attached Standards of Practice while under the direct supervision of a duly licensed NH inspector.
II. To be eligible for a Grandfathered license as a home inspector, an applicant shall fulfill the following requirements:
(A.) Be a Resident of New Hampshire for the previous 12-months and provide proof that they are a legal Resident of New Hampshire and or the United States.
{IE. Birth / Baptism Certificate, Registered Voter, Driver’s License, Green Card, or documentation as required by the Immigration and Naturalization Service. Etc}
(B.) Be of good moral character.
(C.) Have successfully competed high school or its equivalent. {IE Trade school, Technical school}
(D.) Have written proof IE. A diploma, Certification card, Certificate of completion, Certificate of a Certified Membership, etc. of having successfully passed a nationally recognized Home / Residential / Building Inspectors written examination. {IE. ICC, NHIE, InterNACHI} This Certification must be current. {11.}
(D.) Have been registered with the State Of New Hampshire {Secretary of State Corporate Division} as being a Certified Inspector or in the Home /Residential / Building Inspection business for the last calendar year, and or 12-months before this law comes into effect.
NOTE: For a Grandfathering license, copies of written inspection reports, invoices, or proof of payment for performing Home / Residential / Building inspections for the last 12-months will suffice.
(E.) Have conducted 12-or more Residential / Building inspections in the last 12-months.
NEW APPLICANTS
III. To be eligible for a New Hampshire license as a New Applicant for a Home / Residential / Building inspector, an applicant shall fulfill the following requirements:
(A.) Provide proof that they are a legal Resident of New Hampshire and or the United States.
{IE. Birth / Baptism Certificate, Registered Voter, Driver’s License, Green Card, or documentation as required by the Immigration and Naturalization Service. Etc}
(B.) Be of good moral character.
(C.) Have successfully competed high school or its equivalent.
(D.) Have written proof IE. A diploma, a Full Member Certification card, Certificate of completion, a Certified Inspector Membership Card, etc. of having successfully passed a nationally recognized proctored Home / Residential / Building Inspectors written examination. {IE. ICC, NHIE, InterNACHI} Such test / tests shall have been administered at or by an independent testing company, school, or independent testing facility. {11.}
(D.) Be registered with the State Of New Hampshire {Secretary of State Corporate Division} as being in the Home /Residential / Building Inspection business.
(E.) Having successfully completed the written examination as described above, in order to show competency, Following the Standards of Practice attached below, the new applicant must have successfully completed 100-home inspections under the apprenticeship and the direct supervision of a New Hampshire licensed Home / Residential / Building inspector. {12.}
(F.) In order or protect the trainer / mentor, and the consumer, the New Applicant must have Errors & Omissions insurance, or a Surety Bond and General Liability insurance. {12.}
{G.} The applicant may not be under suspension by another State.
{H.} The applicant may not have a criminal history, and or convictions for violent crimes, and moral turpitude.
329-B:11 Expiration and Renewal. Notwithstanding any outstanding license to the contrary, all licenses issued by the board shall be valid for 24-months and expire on the last day of the month of the licensee’s birth, but may be renewed during the following month, retroactive to the first day of the month. The fee for renewal of all licenses issued under this chapter shall be established by the board. Upon failure to pay the renewal fee within the required period, a licensee may renew his or her license by submitting the required fee plus $10 before the last day of the second month following the month of his or her birth. Any application received thereafter shall be rejected, unless accompanied by proof of successful completion of the examination required under RSA 329-B:8. A licensed home inspector shall complete at least 6-hours of verifiable continuing education during each calendar year in order to maintain his or her license.
{See section 329-B:9, Item VI, 2nd paragraph}
329-B:12 Exclusions. A New Hampshire licensed Home / Residential / Building inspector shall not be required to perform any action or make any determination unless specifically required by lawful authority. Inspectors are not required to determine:
I. The condition of systems or components, which are not clearly visible and readily accessible.
II. The remaining life of any system or component.
III. The strength, adequacy, effectiveness or efficiency of any system or component.
IV. The causes of any condition or deficiency.
V. The methods, materials, or costs of corrections.
VI. Future conditions including, but not limited to, failure of systems and components.
VII. The suitability of the property for any specialized use.
VIII. Compliance with regulatory requirements (codes, regulations, laws, ordinances, etc.).
IX. The market value of the property or its marketability.
X. The advisability of the purchase of the property.
XI. The presence of potentially hazardous insects, plants or animals including, but not limited to, wood destroying insects / organisms or diseases harmful to humans.
XII. The presence of any environmental hazards including, but not limited to, toxins, carcinogens, noise, and contaminants in soil, water and air.
XIII. The effectiveness of any system installed or methods utilized to control or remove suspected hazardous substances.
XIV. The operating costs of systems or components.
XV. The cost to remove, replace or repair any system and or components.
XVI. Any household appliance and their components to include but not specifically limited to, stoves, refrigerators, icemakers, dishwashers, microwaves, any free standing appliance etc.
XVII. The acoustical properties of any system or component.
329-B:13 Reciprocity. The State of New Hampshire will only recognize any State that we have a written agreement with. Once this state recognizes our standards and allows our Home / Residential / Building inspectors to conduct business free and unhindered in their state will we allow and recognize “Reciprocity.” {13.}
329-B: 14 Persons Not Required to be Licensed. Nothing in this chapter prevents:
I. A person who is employed by a governmental entity from inspecting residential buildings if the inspection is within official duties and responsibilities.
II. A person who is employed as a property manager for a residential structure and whose official duties and responsibilities include inspecting the residential structure from performing an inspection on the structure if the person does not receive separate compensation for the inspection work.
III. A person who is regulated in another profession from acting within the scope of that person’s license, registration or certification.
329-B:15 Disciplinary Action.
I. The board may undertake disciplinary proceedings:
(A.) Upon its own initiative; or
(B.) Upon written complaint of any “Paid Client” of a Home / Residential / Building inspector which charges that a person licensed by the board has committed misconduct under paragraph II and which specifies the grounds therefore. The client must be the actual person who commissioned and paid for the inspection. Second and third parties are specifically excluded. {14.}
II. Misconduct sufficient to support disciplinary proceedings under this section shall include:
(a) The practice of fraud or deceit in procuring or attempting to procure a license to practice under this chapter;
(b) Conviction of a felony or any offense involving moral turpitude;
(c) Any unprofessional conduct, or dishonorable conduct unworthy of, and affecting the practice of, the profession;
(d) Unfitness or incompetence by reason of negligent habits or other causes; or negligent or willful acts performed in a manner inconsistent with the health or safety of persons under the care of the licensee;
E) Addiction to the use of alcohol or other habit-forming drugs to a degree, which renders him or her unfit to practice under this chapter;
(f) Mental or physical incompetence to practice under this chapter;
(g) Willful or repeated violation of the provisions of this chapter; or
(H.) Suspension or revocation of a license, similar to one issued under this chapter, in another jurisdiction and not reinstated.
III. The board may take disciplinary action in any one or more of the following ways:
(A.) By written reprimand;
(B.) By suspension, limitation or restriction of license or certification for a period of up to 2 to years, or one “License renewal cycle”, whichever is greater.
(C.) By revocation of license or certification;
(d) By requiring the person to participate in a program of continuing education only in the area or areas in which he or she has been found deficient; Said program must be locally available, or proctored , offered “on-line” and offered by a more than one National Association or training facility.
(E.) By requiring the home inspector to obtain insurance against loss, expense and liability resulting from errors and omissions or neglect in the performance of services as a home inspector; or {The E&O policy should be for the minimum amount that is obtainable.}
(f) By requiring the home inspector to file with the board a Surety Bond in the amount of $25,000.00, or bond that is furnished by a company authorized to do business in this state. {15.}
329-B:16 Prohibited Acts. A licensed home inspector shall be prohibited from the following:
I. Performing or offering to perform, for an additional fee, any repairs to a structure on which the inspector, or the inspector’s company, has prepared a home inspection report in the past 12 months, except that a home protection company that is affiliated with or that retains a home inspector does not violate this section if it performs repairs pursuant to a claim made under a home protection contract.
II. Inspecting for a fee any property in which the inspector, or the inspector’s company, has any financial interest or any interest in the transfer of the property.
III. Offering or delivering any compensation, inducement or reward to the owner of the inspected property, the broker or agent, for the referral of any business to the inspector or the inspection company.
IV. Accepting an engagement to make an inspection or to prepare a report in which the inspection itself, or the fee payable for the inspection, is contingent upon either the conclusions in the report, pre-established findings, or the close of escrow.
329-B:17 Liability of Home Inspectors.
I. An action to recover damages for any act or omission of a home inspector relating to a home inspection that he or she conducts may only be commenced within 1 year {365-days} after the date that a home inspection is completed.
II. Only a client and no other party shall have an action to recover damages arising from a home inspection or a home inspection report. {The client should be defined as the actual person who commissioned and paid for the inspection}
329-B:18 Appeals. Any person affected by a final decision of the board may appeal such final decision pursuant to RSA 541. 2 Effective Date. This act shall take effect January 1, 2007
