2007 SESSION

07-1271

10/01

SENATE BILL 212-FN

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill establishes the board of home inspectors for the licensure and regulation of persons engaged in performing home inspections.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

07-1271

10/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Subdivision; Home Inspectors. Amend RSA 310-A by inserting after section 160 the following new subdivision:

Home Inspectors

310-A:161 Purpose. The purpose of this subdivision is to assure that a home inspector performs professional services only when the home inspector is qualified by education and training in the specific technical areas involved.

310-A:162 Definitions. In this subdivision:

I. “Associate home inspector” means a board-approved trainee who has completed 25 instructional inspections, and who participates in the training program, pursuant to this subdivision.

II. “Auxiliary services” means any fee paid services provided by the home inspector to the client in addition to a home inspection.

III. “Board” means the board of home inspectors.

IV. “Client” means an individual who signs a home inspection agreement in order to have a home inspection performed.

V. “Code of ethics” means the code of ethics followed by home inspectors who are licensed as home inspectors by the board.

VI. “Home inspection” means the process by which an home inspector visually examines the readily accessible systems and components of a home and which describes those systems and components in accordance with the board approved standards of practice and code of ethics.

VII. “Home inspector” means a person who, by reason of professional education or practical experience, or both, is qualified to engage in the practice of home inspections as attested by licensing as a home inspector.

VIII. “Instructional inspection” means a home inspection performed by a trainer, with an associate home inspector in attendance who physically observes the home inspection. The trainer produces the report that goes to the client. The associate home inspector will produce a mock home inspection report for review by the trainer.

IX. “Mock home inspection report” means a home inspection report created by a trainee participating in the training program created in accordance with the standards of practice and code of ethics as described in this subdivision and is used for training purposes only.

X. “Standards of practice” means the minimum and uniform standard for home inspectors who are licensed as home inspectors.

XI. “Supervised inspection” means a home inspection performed by an associate home inspector with physical, direct, on-site supervision by a trainer of all aspects of the home inspection and creation of the home inspection report. The trainer must counter-sign all reports produced by the supervised associate home inspector.

XII. “Trainee” means a board approved license applicant who has completed the eligibility testing and educational requirements in RSA 310-A:169 and who participates in the training program, pursuant to this subdivision.

XIII. “Trainer” means a home inspector licensed by the board who has performed a minimum of 1,000 home inspections and has been approved by the board as a trainer.

310-A:163 Standards Of Practice. The following standards of practice shall apply to New Hampshire home inspectors and be enforced by the board:

1. Glossary. For the purpose of the standards of practice, the following terms shall have the following meanings:

ALARM SYSTEMS:

Warning devices installed or free-standing including but not limited to smoke detectors, carbon monoxide detectors, flue gas, and other spillage detectors, and security equipment

ARCHITECTURAL SERVICE:

Any practice involving the art and science of building design for construction of any structure or grouping of structures and the use of space within and surrounding the structures or the design for construction, including but not specifically limited to, schematic design, design development, preparation of construction contract documents, and administration of the construction contract.

AUTOMATIC SAFETY CONTROLS:

Devices designed and installed to protect systems and components from unsafe conditions

COMPONENT:

A part of a system.

DECORATIVE:

Ornamental; not required for the operation of the essential systems and components of a home

DESCRIBE:

To identify (in writing) the condition of a system or component.

DISMANTLE:

To take apart or remove any component, device or piece of equipment that would not be taken apart or removed by a homeowner in the course of normal and routine home owner maintenance

ENGINEERING:

The application of scientific knowledge for the design, control, or use of building structures, equipment, or apparatus building structures, equipment, or apparatus

FURTHER EVALUATION:

Examination and analysis by a qualified professional, tradesman, or service technician beyond that provided by the home inspection.

HOME INSPECTION:

The process by which an inspector visually examines the readily accessible systems and components of a home and which describes those systems and components in accordance with these Standards of Practice

HOUSEHOLD APPLIANCES:

Kitchen, laundry, and similar appliances, whether installed or free-standing

INSPECT:

To examine any system or component of a building in accordance with these Standards of Practice, using normal operating controls and opening readily openable access panels

INSPECTOR:

A person hired to examine any system or component of a building in accordance with these Standards of Practice

INSTALLED:

Attached such that removal requires tools

NORMAL OPERATING CONTROLS:

Devices such as thermostats, switches or valves intended to be operated by the homeowner

READILY ACCESSIBLE:

Available for visual inspection without requiring moving of personal property, dismantling, destructive measures, or any action which will likely involve risk to persons or property

READILY OPENABLE ACCESS PANEL:

A panel provided for homeowner inspection and maintenance that is readily accessible, within normal reach, can be removed by one person, and is not sealed in place

RECREATIONAL FACILITIES:

Spas, saunas, steam baths, swimming pools, exercise, entertainment, athletic, playground or other similar equipment, and associated accessories

REPORT:

Communicate in writing

REPRESENTATIVE NUMBER:

One component per room for multiple similar interior components such as windows, and electric receptacles; one component on each side of the building for multiple similar exterior components

ROOF DRAINAGE SYSTEMS:

Components used to carry water off a roof and away from a building

SIDING:

Exterior wall covering and cladding; such as: aluminum, asphalt, brick, cement/asbestos, EIFS, stone, stucco, veneer, vinyl, wood, etc.

SIGNIFICANTLY DEFICIENT:

Unsafe or not functioning

SHUT DOWN:

A state in which a system or component cannot be operated by normal operating controls

SOLID FUEL BURNING APPLIANCES:

A hearth and fire chamber or similar prepared place in which a fire may be built and that is built in conjunction with a chimney; or a listed assembly of a fire chamber, its chimney, and related factory-made parts designed for unit assembly without requiring field construction

STRUCTURAL COMPONENT:

A component that supports non-variable forces or weights (dead loads) and variable forces or weights (live loads)

SYSTEM:

A combination of interacting or interdependent components, assembled to carry out one or more functions

TECHNICALLY EXHAUSTIVE:

An investigation that involves dismantling, the extensive use of advanced techniques, measurements, instruments, testing, calculations, or other means

UNDERFLOOR CRAWL SPACE:

The area within the confines of the foundation and between the ground and the underside of the floor

UNSAFE:

A condition in a readily accessible, installed system or component that is judged to be a significant risk of bodily injury during normal, day-to-day use; the risk may be due to damage, deterioration, improper installation, or a change in accepted residential construction standards

WIRING METHODS:

Identification of electrical conductors or wires by their general type, such as non-metallic sheathed cable, armored cable, or knob and tube, etc.

2. Purpose and scope.

2.1 The purpose of these standards of practice is to establish a minimum and uniform standard for home inspectors who are licensed home inspections performed to these standards of practice are intended to provide the client with objective information regarding the condition of the systems and components of the home as inspected at the time of the home inspection. Redundancy in the description of the requirements, limitations, and exclusions regarding the scope of the home inspection is provided for emphasis only.

2.2 Inspectors shall:

A. Adhere to the Code of Ethics in this subdivision.

B. Inspect readily accessible, visually observable, installed systems and components listed in these Standards of Practice.

C. Report:

1. those systems and components inspected that, in the professional opinion of the inspector, are not functioning properly, significantly deficient, unsafe.

2. recommendations to correct, or monitor for future correction, the deficiencies reported in 2.2.C.1, or items needing further evaluation. (Per Exclusion 13.2.A.5 inspectors are not required to determine methods, materials, or costs of corrections.)

3. systems and components designated for inspection in these Standards of Practice that were present at the time of the home inspection but were not inspected and the reason(s) they were not inspected.

2.3 These standards of practice are not intended to limit inspectors from:

A. including other inspection services or systems and components in addition to those required in Section 2.2.B.

B. excluding systems and components from the inspection if requested by the client.

3. Structural system.

3.1 The inspector shall

A. inspect:

1. the structural components including the foundation, framing, floor structure, wall structure, ceiling structure and roof structure.

2. by probing a representative number of structural components where deterioration is suspected or where clear indications of possible deterioration exist. Probing is not required when probing would damage any finished surface or where no deterioration is visible or presumed to exist.

B. describe:

1. the foundation.

2. the floor structure.

3. the wall structure.

4. the ceiling structure.

5. the roof structure.

C. report:

1. the methods used to inspect under-floor crawl spaces and attics.

3.2 The inspector is not required to:

A. provide any engineering or architectural service or analysis.

B. offer an opinion as to the adequacy of any structural system or component

4. Exterior

4.1 The inspector shall:

A. inspect:

1. siding, flashing and trim.

2. all exterior doors.

3. attached decks, balconies, stoops, steps, porches, and their associated railings.

4. eaves, soffits, and fascias where accessible from the ground level.

5. entryway walkways, patios, driveways, vegetation, grading, surface drainage, and retaining walls that are likely to adversely affect the building.

B. describe:

1. siding, flashing and trim.

2. all exterior doors.

3. attached decks, balconies, stoops, steps, porches, and their associated railings.

4. eaves, soffits, and fascias where accessible from the ground level.

5. entryway walkways, patios, driveways, vegetation, grading, surface drainage, and retaining walls that are likely to adversely affect the building.

4.2 The inspector is not required to inspect:

A. screening, shutters, awnings, and similar seasonal accessories.

B. fences.

C. geological and/or soil conditions.

D. recreational facilities.

E. outbuildings or detached structures.

F. seawalls, break-walls, and docks.

G. erosion control and earth stabilization measures.

5. Roof System

5.1 The inspector shall:

A. inspect:

1. roofing materials.

2. roof drainage systems.

3. flashing.

4. skylights, chimney exteriors, and roof penetrations.

B. describe:

1. roofing materials.

2. roof drainage systems.

3. flashing.

4. skylights, chimney exteriors, and roof penetrations.

C. report:

1. methods used to inspect the roofing.

5.2 The inspector is not required to inspect:

A. antennae.

B. interiors of flues or chimneys.

C. other installed accessories.

6. Plumbing System

6.1 The inspector shall:

A. inspect:

1. interior water supply and distribution systems including all fixtures and faucets.

2. drain, waste and vent systems including all fixtures.

3. water heating equipment and hot water supply system.

4. vent systems and chimney exteriors.

5. fuel storage and fuel distribution systems within the structure.

6. drainage sumps, sump pumps, and related piping.

B. describe:

1. interior water supply and distribution systems including all fixtures and faucets.

2. drain, waste and vent systems including all fixtures.

3. water heating equipment and hot water supply system.

4. vent systems and chimney exteriors.

5. fuel storage and fuel distribution systems within the structure.

C. report:

1. water supply, drain, waste, and vent piping materials.

2. water heating equipment including energy source(s).

3. location of main water and main fuel shut-off valves.

6.2 The inspector is not required to:

A. inspect:

1. clothes washing machine connections.

2. interiors of flues or chimneys.

3. wells, well pumps, or water storage related equipment.

4. water conditioning systems.

5. solar water heating systems.

6. fire and lawn sprinkler systems.

7. private waste disposal and sewer ejector systems.

8. whether water supply and waste disposal systems are public or private.

9. water supply quantity or quality.

10. automatic safety controls or manual stop valves.

7. Electrical System

7.1 The inspector shall:

A. inspect:

1. service drop.

2. service entrance conductors, cables, and raceways.

3. service equipment and main disconnects.

4. service grounding.

5. interior components of service panels and sub panels.

6. conductors.

7. overcurrent protection devices.

8. a representative number of installed lighting fixtures, switches, and receptacles.

9. ground fault circuit interrupters.

B. describe:

1. service drop.

2. service entrance conductors, cables, and raceways.

3. service equipment and main disconnects.

4. service grounding.

5. interior components of service panels and sub panels.

6. conductors.

7. overcurrent protection devices.

8. a representative number of installed lighting fixtures, switches, and receptacles.

9. ground fault circuit interrupters.

C. report:

1. amperage and voltage rating of the service.

2. the location of main disconnect(s) and sub panels.

3. presence of solid conductor aluminum branch circuit wiring.

4. presence or absence of smoke detectors.

5. wiring methods.

7.2 The inspector is not required to:

A. inspect:

1. remote control devices.

2. alarm systems and components.

3. low voltage wiring systems and components.

4. ancillary wiring systems and components not a part of the primary electrical power distribution system within the house structure.

5. generators, and their control and distribution systems.

B. measure amperage, voltage or impedance.

8. Heating System

8.1 The inspector shall:

A. open readily openable access panels.

B. inspect:

1. installed central heating system.

2. distribution system.

3. vent systems and chimney exteriors.

C. describe:

1. installed central heating system.

2. distribution system.

3. vent systems and chimney exteriors.

D. report:

1. energy source(s).

8.2 The inspector is not required to:

A. inspect:

1. interiors of flues or chimneys.

2. heat exchangers.

3. humidifiers or dehumidifiers.

4. electronic air filters.

5. solar space heating systems.

6. mechanical dampers.

B. determine heat supply adequacy or distribution balance.

9. Air Conditioning Systems

9.1 The inspector shall:

A. open readily openable access panels.

B. inspect:

1. permanently installed central systems.

2. distribution systems.

C. describe:

1. permanently installed central systems.

2. distribution systems.

9.2 The inspector is not required to:

A. inspect electronic air filters.

B. determine cooling supply adequacy or distribution balance.

C. inspect window or wall mounted air conditioning units.

D. operate air conditioning systems when the conditions adversely affect the operation of the equipment.

10. INTERIOR

10.1 The inspector shall:

A. inspect:

1. walls, ceilings, and floors.

2. steps, stairways, and railings.

3. countertops and a representative number of installed cabinets.

4. garage doors and garage door operators.

5. a representative number of windows and doors.

B. describe:

1. walls, ceilings, and floors.

2. steps, stairways, and railings.

3. countertops and a representative number of installed cabinets.

4. garage doors and garage door operators.

5. a representative number of windows and doors.

10.2 The inspector is not required to inspect:

A. paint, wallpaper, and other finish treatments.

B. finished floor coverings.

C. window treatments.

D. central vacuum systems.

E. household appliances.

F. recreational facilities.

11. Insulation and Ventilation

11.1 The inspector shall:

A. inspect:

1. insulation in unfinished spaces.

2. ventilation of attics and foundation areas.

3. mechanical ventilation systems.

B. describe:

1. insulation in unfinished spaces.

2. ventilation of attics and foundation areas.

C. report:

1. absence of insulation in unfinished spaces at conditioned surfaces.

11.2 The inspector is not required to:

A. disturb insulation.

B. identify types of insulation.

C. inspect air-to-air exchangers or other similar systems.

12. Fireplaces

12.1 The inspector shall:

A. inspect:

1. built-in fireplaces

2. chimney exterior and vents.

B. describe:

1. built-in fireplaces

2. chimney exterior and vents.

12.2 The inspector is not required to:

A. inspect:

1. interiors of flues or chimneys.

2. fire screens and doors.

3. seals and gaskets.

4. automatic fuel feed devices.

5. mantles and fireplace surrounds.

6. combustion make-up air devices.

7. heat distribution assists (gravity fed and fan assisted).

8. solid fuel burning appliances.

9. gas appliances.

B. ignite or extinguish fires.

C. determine draft characteristics.

D. move fireplace inserts and stoves or firebox contents.

13. General Limitations And Exclusions

13.1 General limitations:

A. The inspector is not required to perform any action or make any determination not specifically stated in these standards of practice.

B. Inspections performed in accordance with these standards of practice:

1. are not technically exhaustive.

2. are not required to identify concealed conditions, latent defects, or consequential damage(s).

C. These standards of practice are applicable to buildings with four or fewer dwelling units, individual residential condominium units, and their attached garages or attached carports.

13.2 General exclusions:

A. Inspectors are not required to determine:

1. conditions of systems or components that are not readily accessible.

2. remaining life expectancy of any system or component.

3. strength, adequacy, effectiveness, or efficiency of any system or component.

4. the causes of any condition or deficiency.

5. methods or materials necessary for corrections.

6. the suitability of the property for any specialized use.

7. compliance with regulatory requirements (codes, regulations, laws, ordinances, etc.).

8. the presence of potentially hazardous plants or animals including, but not limited to wood destroying organisms or diseases harmful to humans including molds or mold-like substances.

9. the presence of any environmental hazards including, but not limited to toxins, carcinogens, noise, and contaminants in soil, water, and air.

10. the effectiveness of any system installed or method utilized to control or remove suspected hazardous substances.

11. soil conditions relating to geotechnical or hydrologic specialties.

B. Inspectors are not required to offer:

1. or perform any act or service contrary to law.

2. or perform work in any trade or any professional service other than home inspection.

3. warranties or guarantees of any kind.

C. Inspectors are not required to operate:

1. shut-off valves or manual stop valves.

D. Inspectors are not required to enter:

1. any area that will, in the opinion of the inspector, likely be dangerous to the inspector or other persons or damage the property or its systems or components.

2. under-floor crawl spaces of less than 3 feet of height or that are not readily accessible.

3. attics that are not readily accessible.

E. Inspectors are not required to inspect:

1. underground items including, but not limited to underground storage tanks or other underground indications of their presence, whether abandoned or active.

2. items that are not installed.

3. installed decorative items.

4. items in areas that are not entered in accordance with 13.2.D.

5. detached structures.

6. common elements or common areas in multi-unit housing, such as condominium properties or cooperative housing.

F. Inspectors are not required to:

1. perform any procedure or operation that will, in the opinion of the inspector, likely be dangerous to the inspector or other persons or damage the property or its systems or components.

2. use a ladder greater than 4 feet in height.

3. describe or report on any system or component that is not included in these Standards and was not inspected.

4. move personal property, furniture, equipment, plants, soil, snow, ice, or debris.

5. dismantle any system or component, except as explicitly required by these standards of practice.

6. walk on roofs.

G. Inspectors are prohibited from:

1. reporting on market value of property or its marketability.

2. reporting on the advisability or inadvisability of the purchase of the property.

3. offering or performing additional inspectional services such as engineering, architectural, surveying, plumbing, electrical, pest control, or any other inspectional service requiring an occupational license and or registration in the jurisdiction where the inspection is taking place, unless the inspector holds a valid registration and or occupational license, in which case he or she may inform the client that he or she is so registered/licensed, and is therefore qualified to go beyond this subdivision. Should the inspector offer any additional inspectional service requiring a registration and or occupational license he or she shall be required to specify and list additional services not required under these standards of basic home inspection.

4. determining the cost of repairs.

5. determining or verifying property lines.

6. operating any system or component that is shut down or otherwise inoperable.

7. operating any system or component, which does not respond to normal operating controls.

8. predicting future conditions, including but not limited to, failure of systems or components.

9. projecting operating costs of systems or components.

10. evaluating acoustical characteristics of any system or component.

11. determining any basement or crawlspace water tightness.

310-A:164 Code of Ethics for New Hampshire Home Inspectors.

I. The code of ethics details the core guidelines of home inspection professionalism and home inspection ethics, covering crucial issues such as conflicts of interest, good faith and public perception. Integrity, honesty, and objectivity are fundamental principles embodied by this code, which sets forth obligations of ethical conduct for the home inspection profession.

II. Inspectors shall comply with this code, avoid association with any enterprise whose practices violate this code, and strive to uphold, maintain, and improve the integrity, reputation, and practice of the home inspection profession.

III. Inspectors shall avoid conflicts of interest or activities that compromise, or appear to compromise, professional independence, objectivity, or inspection integrity. Inspectors shall not:

(a) Inspect properties for compensation in which they have, or expect to have, a financial interest.

(b) Inspect properties under contingent arrangements whereby any compensation or future referrals are dependent on reported findings or on the sale of a property.

(c) Directly or indirectly compensate realty agents, or other parties having a financial interest in closing or settlement of real estate transactions, for the referral of inspections or for inclusion on a list of recommended inspectors, preferred providers, or similar arrangements.

(d) Receive compensation for an inspection from more than one party unless agreed to by the client.

(e) Accept compensation, directly or indirectly, for recommending contractors, services, or products to inspection clients or other parties having an interest in inspected properties.

(f) Repair, replace, or upgrade, for compensation, systems or components covered by the standards of practice, for one year after the inspection.

IV. Inspectors shall act in good faith toward each client and other interested parties.

(a) Inspectors shall perform services and express opinions based on genuine conviction and only within their areas of education, training, or experience.

(b) Inspectors shall be objective in their reporting and not knowingly understate or overstate the significance of reported conditions.

(c) Inspectors shall not disclose inspection results or client information without client approval. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants exposed to such hazards, when feasible.

V. Inspectors shall avoid activities that may harm the public, discredit themselves, or reduce public confidence in the profession.

(a) Advertising, marketing, and promotion of inspectors’ services or qualifications shall not be fraudulent, false, deceptive, or misleading.

(b) Inspectors shall report substantive and willful violations of this code to the board.

310-A:165 Board of Home Inspectors.

I. A board of home inspectors is established to administer the provisions of this subdivision. The board shall consist of 5 persons appointed by the governor and council, 4 of whom shall be home inspectors, and one public member. The public member of the board shall be a person who is not, and never was, a member of the home inspection profession or the spouse of any such person, 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 home inspections, including the representation of the board or profession for a fee at any time during the 5 years preceding appointment.

II. Each member of the board shall be a citizen of the United States and a resident of this state. Each home inspector board member shall have completed not less than 2,000 non-supervised home inspections for compensation and shall actively practice home inspections for his or her means of livelihood during his or her appointment.

III. Members shall be appointed for 2-year terms, except that no more than 2 appointed members’ terms may expire at any one time. Appointments for terms of less than 2 years may be made in order to comply with this limitation. No appointed member shall be eligible to serve more than 2 full consecutive terms, provided that for this purpose only a period actually served which exceeds ½ of the 2-year term shall be deemed a full term. Upon expiration of a member’s term, the member shall serve until a successor is qualified and appointed. Vacancies occurring prior to the expiration of a specific term shall be filled by appointment for the unexpired term. A board member may be removed for cause by the governor and council under RSA 4:1.

IV. Members of the board shall receive $25 for each day actually engaged in the duties of their office and shall be reimbursed for all actual travel, incidental, and clerical expenses necessarily incurred in carrying out the provisions of this subdivision.

V. The board shall hold at least 3 regular meetings each year and special meetings at such times as it may deem necessary. Notice of all meetings shall be given in such a manner as rules adopted by the board may provide. The board shall biennially elect or appoint a chairperson, vice-chairperson, and secretary. Three members shall constitute a quorum.

VI(a) The board shall keep a record of its proceedings and a register of all applications for licensure, which shall show:

(1) The name, age, and residence of each applicant.

(2) The date of application.

(3) The place of business of such applicant.

(4) The applicant’s educational and other qualifications.

(5) Proof of passing home inspection exam.

(6) Whether the applicant was rejected and the reasons for such rejection.

(7) Whether a license was granted.

(8) The date of the action of the board.

(9) Such other information as may be deemed necessary by the board.

(b) The records of the board shall be prima facie evidence of the proceedings of the board, and a transcript of such records certified by the secretary of the board under seal shall be admissible in evidence with the same force and effect as if the original were produced. Biennially, as of December 31, the board shall submit to the governor a report of the transactions of the preceding biennium, and a complete statement of the receipts and expenditures of the board.

VII. The secretary of the board shall publish a roster listing the names and addresses of all home inspectors licensed under this subdivision by the board during February of each even-numbered year. Copies of this roster shall be sent to each person so licensed, placed on file with the secretary of state, and furnished to the public upon request at a fee to be established by the board. The board may include in such roster any other information it deems appropriate.

310-A:166 Rulemaking Authority.

I. The board shall adopt rules, pursuant to RSA 541-A, relative to:

(a) The application procedure for a license to practice under this subdivision.

(b) The qualifications of applicants in addition to requirements of this subdivision, and including the qualifications for satisfactory evidence of good professional character.

(c) Procedures for auditing applicants and licensees.

(d) How a license to practice under this subdivision shall be renewed or reinstated, including late fees and any requirements for continuing education.

(e) The establishment of all fees required under this subdivision.

(f) Disciplinary actions by the board that shall be implemented for violations of the standards of practice, code of ethics, and rules adopted by the board.

(g) Procedures for the conduct of hearings consistent with the requirements of due process.

(h) Procedures for approving education courses for eligibility requirements

and continuing education.

(i) Matters related to the proper administration of this subdivision.

II. The board shall adopt one eligibility examination required for licensure that is an independent nationally recognized proctored examination designed to test competence in home inspection practice, as determined by recognized role definition methodology and developed and administered in a manner consistent with the American Educational Research Association’s “Standards for Educational and Psychological Testing;” the Equal Employment Opportunity Commission’s “Uniform Guidelines for Employee Selection Procedures;” the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990; and similar applicable standards.

III. The board shall adopt rules relative to the training program, including:

(a) Procedures and forms for the training program.

(b) Additional qualifications for a trainer, trainee, and associate home inspector.

(c) Applications for trainers, trainees, and associate home inspectors.

(d) Maintenance of a public list of all approved trainers, trainees, and associate home inspectors.

IV. At least 40 days prior to any hearing to be held pursuant to RSA 541-A:11, the board shall furnish a copy of any proposed rules of or amendments thereto, to all affected professionals licensed by the board.

310-A:167 Fees. The board shall adopt rules, under RSA 541-A, which shall establish fees required under this subdivision, which shall be sufficient to produce estimated revenues equal to 125 percent of the direct operating expenses of the board, including the following:

I. Application for licensure.

II. Training program.

III. Biennial renewal for licensed home inspectors.

IV. Late fees for a late renewal of license.

V. Replacement of a lost or mutilated license.

VI. Transcribing and transferring records and other services.

VII. Reinstatement fees.

VIII. Other fees or fines deemed necessary by the board.

310-A:168 License Required. No person shall practice as a home inspector or conduct home inspections in this state, except as permitted in RSA 310-A:163, without a home inspector’s license issued by the board under this subdivision.

310-A:169 Eligibility Requirements For Licensure As A Home Inspector.

I. Each applicant for licensure as a home inspector shall meet the following minimum requirements:

(a) Completion of no less than 80 hours of board-approved education covering all of the following core components of a residential building of 4 units or less:

(1) Heating system,

(2) Cooling system,

(3) Plumbing system,

(4) Electrical system,

(5) Structural components,

(6) Foundation,

(7) Roof covering,

(8) Exterior and interior components,

(9) Site aspects as they affect the building.

(b) Completion of the training program, pursuant to this subdivision.

(c ) Proof of passing the board adopted examination required for licensure.

(d) Have successfully completed high school or its equivalent

II. The board shall have the discretion to reject an applicant who is not of good professional character, as evidenced by:

(a) Conviction for commission of a felony;

(b) Misstatement of facts by the applicant in connection with the application;

(c) Violation of any of the standards of practice or code of ethics as they are set forth in this subdivision or in rules adopted by the board; or

(d) Practicing home inspections without being licensed in violation of laws of the jurisdiction in which the practice took place.

310-A: 170 Training Program. To satisfy experience requirements, all license applicants shall complete the training program with 2 stages, as follows:

I. Stage one: The trainee shall complete 25 instructional inspections under one or more trainers, at which point the trainee becomes an associate home inspector.

(a) The trainee shall maintain a log in a form required by the board listing the instructional inspection addresses completed, with signatures from the trainer for each inspection.

(b) The trainer shall offer constructive criticism on the trainee’s mock home inspection report and answer trainee’s questions after the instructional inspection.

(c) The trainee may use any board approved trainer and is encouraged to use more than one trainer to gain more experience.

II. Stage 2: To become eligible for a license, the associate home inspector shall complete 75 supervised inspections under a trainer. The trainer shall countersign any reports given to the client that were produced by the associate home inspector, and the trainer shall sign off that each home inspection performed by the associate home inspector under the trainer’s direct supervision was performed in accordance with the standards of practice and code of ethics as described in this subdivision.

(a) Prior to stage 2, the associate home inspector and trainer shall sign an agreement, in a form adopted by the board, committing to work with each other as student and teacher.

(b) A trainer may supervise more than one associate home inspector at a time, but only one trainer and associate home inspector may attend the same supervised inspection.

310-A:171 Initial Licensure.

I. Prior to the implementation of the training program under RSA 310-A:170, the board shall issue to an individual, upon application, a home inspector license if such individual provides satisfactory proof to the board that he or she:

(a) Has satisfied at least one of the following 2 requirements:

(1) The applicant has performed not less than 200 non-supervised home inspections for compensation; or

(2) The applicant has done all of the following:

(A) Performed not less than 50 non-supervised home inspections for compensation;

(B) Passed the eligibility testing requirement in RSA 310-A:169; and

(C) Completed not less than 80 hours of board approved education covering all of the following core components of a residential building of 4 units or less: heating system, cooling system, plumbing system, electrical system, structural components, foundation, roof covering, exterior and interior components, site aspects as they affect the building.

(b) Has successfully completed high school or its equivalent.

II. The board shall have the discretion to reject an applicant who is not of good professional character, as evidenced by:

(a) Conviction for commission of a felony.

(b) Misstatement of facts by the applicant in connection with the application.

(c) Practicing home inspections without being licensed in violation of laws of the jurisdiction in which the practice took place.

310-A:172 Initial Licensure; Applications.

I. Applications for initial licensure shall be on forms prescribed and furnished by the board.

II. Applications shall be accepted by the board until the effective start date of the training program under RSA 310-A:170.

III. Applicants for initial licensure shall show proof of completion of requirements under RSA 310-A:171, I(a) and (b).

IV. Applicants shall pay the applicable fees adopted by the board, and shall include any other information or attachment as required by board.

V. If the board denies the issuance of a license to an applicant, any fee paid shall be retained as an application fee.

310-A:173 License Applications.

I. Applications for licensure shall be on forms prescribed and furnished by the board.

II. Applicants shall include the following:

(a) Proof of required 80 hours of education, pursuant to RSA 310-A:171.

(b) Proof of completing training program.

(c) Proof of passing the eligibility testing requirements under RSA 310-A:169.

(d) Payment of applicable fees.

(e) Any other attachments as required by board.

III. If the board denies the issuance of a license to any applicant, any fee paid shall be retained as an application fee.

310-A:174 Continuing Education. Evidence satisfactory to the board of the completion in each biennial renewal period of a minimum of 20 hours of continuing education shall be required for license renewal. One hour of the 20 required hours shall be from a board approved course on license regulation review. The board shall approve educational courses and activities that would further the professional competence of licensees. The continuing education credits shall be determined on the basis of one credit for each contact hour of course instruction or professional development activity actually attended by a licensee.

310-A:175 Issuance of Licenses. The board shall issue a license upon payment of the license fee established by the board, to any applicant who, in the opinion of the board, has satisfactorily met all the requirements of this subdivision. Licenses shall show the full name of the licensee, have a serial number, and be signed by the chairperson or the secretary of the board. The issuance of a license by the board shall be prima facie evidence that the person named in the license is entitled to all the rights and privileges of a licensed home inspector while the license remains valid. It shall be a class B misdemeanor for the licensee to perform home inspections after the license of the licensee has expired or has been revoked, unless such license shall have been renewed, reinstated, or reissued.

310-A:176 Interstate Licensure. The board in its discretion may grant a home inspector’s license to any applicant who is similarly licensed in any other state, provided the other state’s licensing requirements meet or exceed those of this state.

310-A:177 Expiration and Renewals.

I. Initial licenses issued under RSA 310-A:171 shall expire on a date chosen by the board that is not less than 2 years and not more than 4 years after the effective date of initial adoption of the rules by the board.

II. The board shall send by mail or otherwise notification of the impending license expiration to each licensee at least one month prior to the expiration of the license, along with a request for payment of a renewal fee. Licensees in good standing may renew their licenses by paying the renewal fee prior to the expiration date of the license, and by presenting evidence satisfactory to the board of completion of the continuing education requirements. If properly renewed, a license shall remain in effect continuously from the date of issuance, unless suspended or revoked by the board for just cause.

III. If the renewal fee is not submitted within 12 months after the expiration date of the license, the licensee’s name shall be removed from the mailing list and roster. The board, pursuant to rules adopted under RSA 310-A:166, shall charge up to a 20 percent late fee for each month or fraction of a month the renewal is late, up to 12 months, in addition to the renewal fee.

IV. If the renewal fee is not submitted within one year of the expiration date, an application for reinstatement shall be required and approved by the board to reinstate the license.

V. Licensees who have been activated by the military shall be exempt from any penalties or fees for renewal or reinstatement due to their absence, as approved by the board.

310-A:178 Disciplinary Action.

I. The board may undertake disciplinary proceedings:

(a) Upon its own initiative; or

(b) Upon written complaint of any person which charges that a person licensed by the board has committed misconduct under paragraph II and which specifies the grounds therefor.

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 subdivision.

(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 interests of persons relying on the expertise of the licensee.

(e) Addiction to the use of alcohol or other habit-forming drugs to a degree which renders the licensee unfit to practice under this subdivision.

(f) Mental or physical incompetence to practice under this subdivision.

(g) Willful or repeated violation of the provisions of this subdivision.

(h) Suspension or revocation of a license, similar to one issued under this subdivision, in another jurisdiction and not reinstated.

(i) Violations of the code of ethics for home inspectors, or any other rule adopted by the board.

(j) Providing false testimony before the board.

(k) Failure to provide, within 30 calendar days of receipt of notice by certified mail, return receipt requested, information requested by the board as a result of any formal complaint to the board alleging a violation of this subdivision.

(l) Knowingly making or signing any false statement, certificate, or affidavit in connection with the practice of home inspections.

310-A:179 Hearings.

I. The board shall take no disciplinary action without a hearing. At least 14 days prior to hearing, both parties to a disciplinary proceeding shall be served, either personally or by certified mail, return receipt requested, with a written copy of the complaint filed and notice of the time and place for hearing. All complaints shall be objectively received and appropriately pursued by the board. Written complaints received by the board shall be acknowledged within 3 months of the date of notice to the board. Written notice of all disciplinary decisions made by the board shall be given to both parties to the proceeding upon their issuance.

II.(a) The board shall have the power to administer oaths or affirmations, preserve testimony, subpoena witnesses, and to compel, by subpoena duces tecum, the production of all books, records, files and documents, whether originals, copies, or in electronic or other form, and other materials, relevant to its investigation of any grievance, complaint, or disciplinary proceeding before the board.

(b) The board may issue subpoenas with the approval of the office of the attorney general.

(c) A minimum of 10 business days’ notice shall be given for compliance with a subpoena under this subdivision.

III. At any hearing, the named person or licensee shall have the right to:

(a) Appear in person, by counsel, or both.

(b) Produce evidence and witnesses.

(c) Cross-examine witnesses.

IV. If the named person fails or refuses to appear, the board may proceed to hear and determine the validity of the charges.

V. The board, upon making an affirmative finding under RSA 310-A:178, II, may take disciplinary action in any one or more of the following ways:

(a) By written reprimand.

(b) By suspension, refusal to renew, limitation or restriction of a license, or probation for a period of time determined to be reasonable by the board.

(c) By revocation of a license.

(d) By requiring the person to participate in a program of continuing education in the area or areas in which the person has been found deficient.

(e) By requiring the person to practice under the direct supervision of a licensed home inspector for a period of time specified by the board.

(f) By assessing civil penalties, after notification and due process, in amounts established by the board which shall not exceed $2,000 per offense or, in the case of continuing offenses, $200 for each day the violation continues, whichever is greater.

(g) 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.

VI. Any applicant or licensee aggrieved by any action of the board may appeal the decision in accordance with RSA 541.

VII. In addition to any other action, the board may assess all reasonable costs incurred in connection with any disciplinary proceeding, including investigations, stenographers, and attorneys’ fees, as a condition of probation or reinstatement.

VIII. Any disciplinary action by the board shall be published in the report of the board and shall be a public record in accordance with RSA 91-A.

310-A:180 Reissuance Of Licenses. The board, for reasons it may deem sufficient, may reissue a license to any person whose license has been suspended or revoked, provided 3 or more members of the board vote in favor of such reissuance. A new license may be issued, subject to the rules of the board, and a fee shall be charged for such issuance.

310-A:181 Violations; Penalty. It shall be a class B misdemeanor for any natural person or a felony for any business organization to:

I. Present or attempt to use the license another as one’s own;

II. Give any false or forged evidence of any kind to the board or to any board member in obtaining a license;

III. Falsely impersonate any other licensee of like or different name;

IV. Attempt to use an expired or revoked license;

V. Practice home inspections or to offer, advertise or hold oneself out to the public as being in the practice of home inspection in this state without a license; or

VI. Violate any of the provisions of this subdivision.

310-A:182 Restraint Of Violations. The superior court shall have jurisdiction in equity to restrain violations of RSA 310-A:181 on proceedings brought by the attorney general, the board, or any society of licensed home inspectors duly incorporated under the laws of this state.

310-A:183 Exemptions. Nothing in this subdivision shall be construed to prevent or affect:

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 from performing a home inspection if the inspection will be used solely by a bank, savings and loan association or credit union to monitor progress on the construction of a residential structure.

III. 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.

IV. A person who is regulated in another profession from acting within the scope of that person’s license, registration or certification.

310-A:184 Liability of Home Inspectors.

I. An action to recover damages for any act or omission of a home inspector related to a home inspection that he or she conducts may only be commenced within one year 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.

2 Reference to Joint Board. Amend RSA 5:13 to read as follows:

5:13 Commissions and Boards Functioning Within Department. The ballot law commission, the boxing and wrestling commission, the board of accountancy and the joint board of [engineers, architects, land surveyors, and natural scientists] licensure and certification shall each function within the department of state as a separate organizational entity and with all the powers and duties as heretofore provided, except as otherwise provided by law.

3 Chapter Heading; Joint Board. The chapter heading preceding RSA 310-A is repealed and reenacted to read as follows:

JOINT BOARD OF LICENSURE AND CERTIFICATION

4 Joint Board Established. Amend RSA 310-A:1 to read as follows:

310-A:1 Joint Board Established. There shall be a joint board of licensure and certification for professional engineers, architects, land surveyors, foresters, professional geologists, natural scientists, [and] landscape architects, and home inspectors consisting of each of the members of the board of professional engineers, board of architects, state board of licensure for land surveyors, foresters’ board, board of professional geologists, the board of natural scientists, [and] the board of landscape architects, and the board of home inspectors. The joint board shall meet at least quarterly to carry out its duties established under this chapter.

5 Repeal. RSA 310-A:97, relative to the joint board chapter title reference, is repealed.

6 Effective Date. This act shall take effect July 1, 2007.

LBAO

07-1271

01/26/07

SB 212-FN - FISCAL NOTE

FISCAL IMPACT:

METHODOLOGY: