CSHB 207(JUD): "An Act relating to the licensure and registration of individuals who perform home inspections; relating to home inspection requirements for residential loans purchased or approved by the Alaska Housing Finance Corporation; relating to civil actions by and against home inspectors; and providing for an effective date."
00CS FOR HOUSE BILL NO. 207(JUD) 01 "An Act relating to the licensure and registration of individuals who perform 02 home inspections; relating to home inspection requirements for residential loans 03 purchased or approved by the Alaska Housing Finance Corporation; relating to 04 civil actions by and against home inspectors; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 08 is amended by adding a new chapter to read: 07 Chapter 57. Home Inspectors. 08 Article 1. Board of Home Inspectors. 09 Sec. 08.57.010. Creation and membership of board. There is created the 10 Board of Home Inspectors consisting of five members. Three members shall be 11 licensed under this chapter and shall have been engaged in the practice of home 12 inspection in the state for three years immediately preceding appointment, one member 13 shall be a licensed real estate broker or certified real estate appraiser, and one member 14 shall be a public member.
01 Sec. 08.57.020. General duties. The board shall 02 (1) administer and enforce this chapter; 03 (2) regulate the practice of home inspection; 04 (3) establish education and experience requirements that must be met 05 for licensure under this chapter; the requirements established by the board must include 06 Alaska or northern education or experience in Arctic construction or building; 07 (4) establish standards for continuing education of home inspectors; 08 (5) adopt a code of ethics for home inspectors; and 09 (6) in addition to the meeting required under AS 08.01.070(2), meet 10 when requested by a majority of the members of the board. 11 Sec. 08.57.030. Meetings. The board may meet by teleconference. 12 Article 2. Licensure. 13 Sec. 08.57.050. Licensure required. (a) Unless exempt under AS 08.57.900 14 or serving lawfully as an associate home inspector under (b) of this section, an 15 individual may not perform a home inspection 16 (1) for new construction unless that individual is licensed as a home 17 inspector for new construction under this chapter; 18 (2) for previously occupied construction unless that individual is 19 licensed as a home inspector for previously occupied construction under this chapter. 20 (b) Notwithstanding (a) of this section, an individual who is not licensed under 21 this chapter may perform a home inspection as an associate home inspector if the 22 individual 23 (1) is employed by a licensed home inspector who supervises the 24 associate's work and the inspection is of the type that the supervising individual is 25 authorized to perform; and 26 (2) is registered with the board as an associate home inspector. 27 (c) A home inspector who employs an associate home inspector under (b) of 28 this section is liable for the work done by the associate home inspector. 29 (d) An individual who holds a joint license is considered to be licensed as both 30 a home inspector for new construction and a home inspector for previously occupied 31 construction.
01 Sec. 08.57.060. Qualifications. The board shall authorize the department to 02 issue a home inspector license for new construction, previously occupied construction, 03 or both, as appropriate, to an individual who 04 (1) passes the appropriate home inspection examination; the 05 examination, which must include a written portion and other test methodologies as 06 determined by the board, must test competence in relation to Alaska construction 07 techniques and other matters as determined by the board; the examination may be 08 based on a recognized national examination or other methodology; 09 (2) meets the educational and experience requirements adopted by the 10 board in regulations for the type of license applied for; 11 (3) submits a complete application for licensure within one year after 12 passing the examination required under (1) of this section; 13 (4) within the seven years preceding the date of application, has not 14 been under a sentence for an offense related to forgery, theft in the first or second 15 degree, extortion, or conspiracy to defraud creditors or for a felony involving 16 dishonesty; and 17 (5) pays the appropriate fees. 18 Sec. 08.57.070. License renewal; continued competency. (a) A license 19 issued under this chapter may not be renewed unless the applicant submits proof of 20 continued competency relating to home inspecting that satisfies the board. 21 (b) A lapsed license may be reinstated within two years after the lapse upon 22 proof of continued competency, payment of a renewal fee for the intervening time 23 period, and payment of any penalty fee established under AS 08.01.100(b). If the 24 license has been lapsed for more than two years, the license may not be reinstated until 25 the individual also passes the appropriate home inspection examination described in 26 AS 08.57.060. 27 (c) The license of an applicant whose license has been suspended or against 28 whom a fine has been imposed under this chapter may not be renewed until the period 29 of suspension has expired and any fine has been paid. 30 Sec. 08.57.080. Fees. (a) The department shall set fees under AS 08.01.065 31 for
01 (1) licensure and renewal of licensure for a home inspector qualified 02 to inspect new construction; 03 (2) licensure and renewal of licensure for a home inspector qualified 04 to inspect previously occupied construction; 05 (3) joint licenses and renewal of joint licenses; 06 (4) registration and renewal of registration as an associate home 07 inspector; 08 (5) examinations; and 09 (6) board and departmental publications and seminars related to this 10 chapter. 11 (b) An individual who fails a home inspector examination shall pay the 12 examination fee set by the department if the individual applies to retake an 13 examination. 14 Sec. 08.57.090. Identification requirements. (a) Except as provided 15 otherwise by law, an individual who is licensed under this chapter by one name may 16 not act in the capacity of a home inspector under any other name unless the individual 17 is also licensed under that name. 18 (b) All advertising and business cards prepared by a licensed home inspector 19 for the home inspection business must show the home inspector's name, mailing 20 address, and license number. 21 (c) Individual licensed home inspectors and partners, associates, agents, 22 salespeople, solicitors, officers, and employees of licensed home inspectors shall use 23 their true names and addresses and the true name of the home inspecting firm at all 24 times while acting in the capacity of a licensed home inspector or performing related 25 activities. 26 (d) Regardless of whether they are exempt from licensure and registration 27 under AS 08.57.900, persons who perform home inspections may not hold themselves 28 out to be licensed home inspectors or use words or titles that may reasonably be 29 confused with the title of "licensed home inspector" unless they are licensed under this 30 chapter. 31 Article 3. Insurance Requirement.
01 Sec. 08.57.200. Types of insurance. Each applicant, at the time of applying 02 for licensure or for renewal of licensure, shall file with the board satisfactory evidence 03 that there is in effect for the applicant public liability and property damage insurance 04 covering the applicant's home inspecting operations in this state in the sum of not less 05 than $20,000 for damage to property, $50,000 for injury, including death, to any one 06 person, and $100,000 for injury, including death, to more than one person. 07 Sec. 08.57.210. Suspension of license. If the insurance required in 08 AS 08.57.200 ceases to be in effect, the license of the home inspector shall 09 immediately be suspended until the insurance has been reinstated. 10 Article 4. Disciplinary Actions; Other Enforcement Mechanisms. 11 Sec. 08.57.300. Grounds for disciplinary sanctions or other license 12 decisions. The board may take disciplinary action authorized under AS 08.01.075 or 13 refuse to grant or renew a license or registration under this chapter on a finding that 14 (1) the application is fraudulent or misleading; 15 (2) the individual has knowingly violated this chapter or a lawful order 16 or regulation of the department or the board; 17 (3) the individual is incompetent or has engaged in fraudulent practices 18 relating to home inspection. 19 Sec. 08.57.310. Administrative Procedure Act applicable. Proceedings for 20 the denial, suspension, or revocation of a license or registration under this chapter are 21 governed by AS 44.62 (Administrative Procedure Act). 22 Sec. 08.57.320. Injunction. In an action instituted in the superior court by the 23 board or the department, the court may enjoin an individual from performing a home 24 inspection in violation of this chapter. In addition to other relief, the court may 25 impose a civil penalty of not more than $500 for each violation. Each day that an 26 unlawful act continues constitutes a separate violation. 27 Sec. 08.57.330. Violations. (a) An individual who knowingly violates 28 AS 08.57.050 is guilty of a class B misdemeanor. A person who violates another 29 provision of this chapter is guilty of a violation punishable under AS 12. 30 (b) Criminal prosecution for a violation of this chapter does not preclude the 31 board or the department from seeking available civil remedies.
01 Article 5. Miscellaneous Provisions. 02 Sec. 08.57.800. Legal actions by home inspector. An individual may not 03 bring an action in a court of this state for the collection of compensation for the 04 performance of a home inspection or for breach of a contract for which a license is 05 required under this chapter without alleging and proving that the individual was a 06 licensed home inspector or registered associate home inspector at the time of 07 contracting for the performance of the work. 08 Sec. 08.57.810. Legal actions against home inspector. A person may not 09 bring an action against an individual licensed or registered under this chapter based on 10 a written home inspection report prepared by the inspector if the report is more than 11 one year old or was unlawfully disclosed to the person bringing the action. 12 Sec. 08.57.820. Inspection report required. (a) Before performing a home 13 inspection, a licensee or an associate home inspector shall provide to the person on 14 whose behalf a home is inspected a written document specifying 15 (1) the scope of intended inspection, including the structural elements, 16 systems, and subsystems that will be inspected; and 17 (2) that the inspector will notify in writing the person on whose behalf 18 the inspection is being made of defects noted during the inspection along with a 19 recommendation, if any, that experts be retained to determine the extent of defects and 20 corrective action necessary to address the defects. 21 (b) After performing a home inspection, a licensee shall provide to the person 22 on whose behalf the inspection was performed a written description of defects noted 23 during the inspection along with a recommendation, if any, that experts be retained to 24 determine the extent and corrective action necessary to address the defects. 25 Sec. 08.57.830. Prohibited acts. (a) An individual licensed or registered 26 under this chapter, a company that employs an individual licensed or registered under 27 this chapter, or a company that is controlled by a company that also has a financial 28 interest in a company employing an individual licensed or registered under this chapter 29 may not 30 (1) perform or offer to perform, for an additional fee, repairs to a 31 structure on which the home inspector or the home inspector's company has prepared
01 a home inspection report in the past 12 months; 02 (2) inspect for a fee any property in which the home inspector or the 03 home inspector's company has a financial interest or an interest in the transfer of the 04 property; 05 (3) offer or deliver compensation, an inducement, or a reward to the 06 owner of the inspected property, the broker, or the agent, for the referral of business 07 to the home inspector or the home inspector's company; 08 (4) without the written consent of the home inspection client or the 09 client's legal representative, disclose information from a home inspection report 10 prepared by the home inspector or the home inspector's company unless the disclosure 11 is made 12 (A) more than one year after the date of the report; or 13 (B) to a subsequent client who requests a home inspection of 14 the same premises; 15 (5) without the written consent of all interested parties, accept 16 compensation from more than one interested party for the same services; 17 (6) accept from a person who has other dealings with a home 18 inspection client a commission or allowance, directly or indirectly, for work for which 19 the home inspector or the home inspector's company is responsible; 20 (7) accept an engagement to make an inspection or to prepare a report 21 in which the employment itself or the fee payable for the inspection is contingent upon 22 the conclusions in the report, preestablished findings, or the close of escrow. 23 (b) Contractual provisions that purport to limit the liability of a home inspector 24 to the cost of the home inspection report are contrary to public policy and void. 25 Sec. 08.57.840. Limitation on activities. A license or registration issued 26 under this chapter does not authorize the holder to perform an activity for which a 27 license is required under provisions of this title that are outside of this chapter. 28 Article 6. General Provisions. 29 Sec. 08.57.900. Exemptions. Notwithstanding other provisions of this chapter, 30 an individual who performs a home inspection is not required to be licensed or 31 registered under this chapter if the individual is
01 (1) employed by the federal or state government, a political subdivision 02 of the state, or a municipality or unincorporated community and the employee is 03 performing only duties that are within the employee's official duties; 04 (2) performing a home inspection only with respect to property that is 05 the individual's residence or in which the individual has a financial interest; 06 (3) registered as a civil engineer or architect under AS 08.48 and the 07 individual either 08 (A) affixes the individual's seal to the home inspection report; 09 or 10 (B) signs the report and puts the individual's registration number 11 on the report; 12 (4) engaged as an engineer in training or architect in training who 13 works for and is supervised by a person described in (3) of this section and the person 14 described in (3) of this section affixes the person's seal to the home inspection report 15 or signs and puts the person's registration number on the report; 16 (5) licensed as a pesticide applicator by the Department of 17 Environmental Conservation and is performing only activities within the scope of that 18 license; 19 (6) registered as an engineer or architect under AS 08.48 and is 20 performing only activities that are authorized by the Board of Registration for 21 Architects, Engineers and Land Surveyors under that registration; or 22 (7) certified as any type of real estate appraiser under AS 08.87 and is 23 performing only activities that are authorized under that certification. 24 Sec. 08.57.990. Definitions. In this chapter, 25 (1) "board" means the Board of Home Inspectors; 26 (2) "department" means the Department of Community and Economic 27 Development; 28 (3) "home inspection" means an inspection of the condition of a 29 residence or intended residence performed for compensation on behalf of a prospective 30 buyer, seller, or lender in a real estate transaction or on behalf of the owner of the 31 residence;
01 (4) "joint license" means a license that authorizes an individual to 02 inspect both new construction and previously occupied residences; 03 (5) "real estate transaction" means the transfer or attempted transfer of 04 an interest in a unit of real property or an act conducted as a result of or in pursuit of 05 a contract to transfer an interest in a unit of real property; 06 (6) "residence" means 07 (A) a single-family home; 08 (B) a duplex, triplex, or four-plex; or 09 (C) a residential townhouse or residential condominium unit. 10 * Sec. 2. AS 08.01.010 is amended by adding a new paragraph to read: 11 (3) Board of Home Inspectors (AS 08.57.010). 12 * Sec. 3. AS 08.03.010(c) is amended by adding a new paragraph to read: 13 (22) Board of Home Inspectors (AS 08.57.010) -- June 30, 2004. 14 * Sec. 4. AS 18.56.300(b) is amended to read: 15 (b) As a condition of a commitment to purchase or approve a loan under this 16 section for residential housing the construction of which begins after June 30, 1992, 17 the corporation shall require inspection of the unit of residential housing that is the 18 subject of the loan. The inspection must be performed by a municipal building 19 inspector, by a person who is approved or certified to perform residential inspections 20 by the International Conference of Building Officials or the International Association 21 of Electrical Inspectors, by an individual who is licensed or registered under 22 AS 08.57.050 to perform home inspections [OR, WHEN THE UNIT OF 23 RESIDENTIAL HOUSING IS LOCATED IN A RURAL AREA], by an architect 24 licensed under AS 08.48, by an engineer licensed under AS 08.48, or by another 25 person approved by the corporation. When the unit of residential housing is located 26 in a rural area, the person who makes the inspection may use methods other than a 27 personal physical inspection to make the inspection if the method is approved by the 28 corporation, and variations from the applicable code may be accepted at the 29 corporation's discretion, if the person authorized to inspect the unit under this 30 subsection satisfies the corporation that the variation does not adversely affect the 31 structural integrity of the unit or the health and safety of the residents. The person
01 who makes the inspection shall determine whether the construction conforms to 02 relevant provisions of the construction codes of the municipality or of the state 03 building code, as applicable, at each of the following stages of construction: 04 (1) plan approval; 05 (2) completion of footings and foundations; 06 (3) completion of electrical installation, plumbing, and framing; 07 (4) completion of installation of insulation; 08 (5) final approval. 09 * Sec. 5. AS 18.56.300(b) is amended to read: 10 (b) As a condition of a commitment to purchase or approve a loan under this 11 section for residential housing the construction of which begins after June 30, 1992, 12 the corporation shall require inspection of the unit of residential housing that is the 13 subject of the loan. The inspection must be performed by a municipal building 14 inspector, [BY A PERSON WHO IS APPROVED OR CERTIFIED TO PERFORM 15 RESIDENTIAL INSPECTIONS BY THE INTERNATIONAL CONFERENCE OF 16 BUILDING OFFICIALS OR THE INTERNATIONAL ASSOCIATION OF 17 ELECTRICAL INSPECTORS,] by an individual who is licensed or registered under 18 AS 08.57.050 to perform home inspections, by an architect licensed under AS 08.48, 19 by an engineer licensed under AS 08.48, or by another person approved by the 20 corporation. When the unit of residential housing is located in a rural area, the person 21 who makes the inspection may use methods other than a personal physical inspection 22 to make the inspection if the method is approved by the corporation, and variations 23 from the applicable code may be accepted at the corporation's discretion, if the person 24 authorized to inspect the unit under this subsection satisfies the corporation that the 25 variation does not adversely affect the structural integrity of the unit or the health and 26 safety of the residents. The person who makes the inspection shall determine whether 27 the construction conforms to relevant provisions of the construction codes of the 28 municipality or of the state building code, as applicable, at each of the following stages 29 of construction: 30 (1) plan approval; 31 (2) completion of footings and foundations;
01 (3) completion of electrical installation, plumbing, and framing; 02 (4) completion of installation of insulation; 03 (5) final approval. 04 * Sec. 6. AS 44.62.330(a) is amended by adding a new paragraph to read: 05 (60) Board of Home Inspectors. 06 * Sec. 7. AS 45.50.471(b) is amended by adding a new paragraph to read: 07 (43) violating AS 08.57.830. 08 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section 09 to read: 10 REGULATIONS. The Board of Home Inspectors may proceed to adopt regulations 11 to implement this Act. A regulation adopted under this section takes effect under AS 44.62 12 (Administrative Procedure Act) but not before the effective date of the law implemented by 13 the regulation. 14 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section 15 to read: 16 INITIAL BOARD MEMBERS. Notwithstanding AS 08.57.010, added by sec. 1 of this 17 Act, the three home inspectors appointed to the initial Board of Home Inspectors are not 18 required to be licensed as home inspectors before appointment but must be licensed as home 19 inspectors in order to be appointed or reappointed after expiration of their first term in office. 20 * Sec. 10. The uncodified law of the State of Alaska is amended by adding a new section 21 to read: 22 TRANSITIONAL LICENSING PROVISIONS. (a) Notwithstanding AS 08.57, added 23 by sec. 1 of this Act, the Board of Home Inspectors shall issue a joint license that is valid 24 until January 1, 2002, to an individual who submits to the board satisfactory evidence of being 25 in the business of home inspection in the state at the time of application for a license under 26 this subsection and of having 27 (1) been in the business of home inspection in the state on October 1, 1999; 28 or 29 (2) passed the building inspector examination or property maintenance and 30 housing inspector examination given by the International Conference of Building Officials. 31 (b) Notwithstanding AS 08.57, added by sec. 1 of this Act, the Board of Home
01 Inspectors shall issue a license to practice home inspection of previously occupied residences 02 that is valid until January 1, 2002, to an individual who submits to the board satisfactory 03 evidence of being in the business of home inspection in the state at the time of application for 04 a license under this subsection and of having passed 05 (1) the national home inspector examination given by the American Society 06 of Home Inspectors; or 07 (2) the examination of the Examination Board of Professional Home Inspectors. 08 (c) Notwithstanding AS 08.57, added by sec. 1 of this Act, the Board of Home 09 Inspectors shall issue a license to practice home inspection of new construction that is valid 10 until January 1, 2002, to an individual who submits to the board satisfactory evidence of being 11 in the business of home inspection in the state at the time of application for a license under 12 this subsection and of having passed the combination inspector examination or the 13 combination dwelling inspector examination given by the International Conference of Building 14 Officials. 15 (d) Notwithstanding AS 08.57, added by sec. 1 of this Act, the Board of Home 16 Inspectors shall grant registration as an associate home inspector that is valid until January 1, 17 2002, to an individual who submits to the board satisfactory evidence of being employed by 18 an individual who is in the business of home inspection and is licensed under this section or 19 under AS 08.57. 20 (e) A license or registration issued under this section may not be renewed or extended. 21 (f) Except as provided in (e) of this section, a license or registration issued under this 22 section is considered to be a license or registration issued under AS 08.57, added by sec. 1 23 of this Act. 24 (g) In this section, "joint license" has the meaning given in AS 08.57.990, added by 25 sec. 1 of this Act. 26 * Sec. 11. AS 08.57.050, 08.57.090, 08.57.330(a), 08.57.800 - 08.57.820, enacted by sec. 1 27 of this Act, and the amendment of AS 18.56.300(b), made by sec. 4 of this Act, take effect 28 July 1, 2001. 29 * Sec. 12. Section 5 of this Act takes effect January 1, 2002. 30 * Sec. 13. Except as provided in secs. 11 - 12 of this Act, this Act takes effect immediately 31 under AS 01.10.070(c).