HB 763-FN – AS INTRODUCED
2007 SESSION
10/04
HOUSE BILL 763-FN
AN ACT establishing the licensure and regulation of residential and building inspectors.
SPONSORS: Rep. Baroody, Hills 13; Rep. Kopka, Hills 26; Rep. D. Eaton, Ches 2
COMMITTEE: Executive Departments and Administration
This bill establishes the board of residential and building inspectors and the regulation of person engaged in inspections of residences and other buildings.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0035
10/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT establishing the licensure and regulation of residential and building inspectors.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Residential and Building Inspectors. Amend RSA by inserting after chapter 329-A the following new chapter:
CHAPTER 329-B
RESIDENTIAL AND 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 residential and building inspectors to assure that consumers of residential and commercial building inspection services can rely on the qualifications, expertise, and competence of a residential and building inspector.
329-B:2 Definitions. In this chapter:
I. “Apprentice’’ means any person who is engaged in learning and assisting in residential and building inspection under an apprenticeship program acceptable to the board.
II. “Board’’ means the board of residential and building inspectors, established by RSA 329-B:3.
III. “Commercial building” means a multi-unit building or any building designed for commercial usage or commercial purposes.
IV. “Residential and building inspection” means a visual analysis for the purposes of providing a professional opinion of the condition of a residential or commercial building and its related structures, any clearly visible and readily accessible 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. Residential and building inspection shall not require identifying concealed conditions or latent defects.
V. “Residential and building inspector” means any person who is licensed by the board as a residential and building inspector and who engages in the business of performing residential and building inspections and issuing any type of written residential and building inspection reports.
VI. “Residential and building inspection report” means a written report prepared by a residential and building inspector for compensation and issued after any type of residential or commercial building inspection. The inspector shall report:
(a) On those systems and 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, if not self-evident, the system or component is significantly deficient.
(c) The inspector’s recommendations to monitor the reported deficiency or to have a specialist further evaluate or correct the condition.
(d) Any visible and readily accessible systems and components designated for inspection which were present at the time of the inspection but were not inspected, and a reason they were not inspected.
VII. “Residential building” means a structure consisting of 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 condominium unit, wholly or partly used or occupied, or intended to be used or occupied, as the home or residence of one or more persons.
VIII. “Standards of practice” means a comprehensive set of guidelines for the performance of a residential and commercial building inspection. Standards of practice, as defined by the National Association of Certified Home Inspectors or as adopted by the board, shall be available to the public.
329-B:3 Board Established.
I. There shall be a board of residential and building inspectors, consisting of 7 members, including 4 residential and building inspectors representing one or more residential or commercial inspector associations or unaffiliated practice, one attorney licensed to practice in this state, one person who is either a licensed professional engineer or certified 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. Board members may be active or retired.
II. The public member of the board of residential and building inspectors shall be a person who is not, and never has been, a residential or commercial building inspector or the spouse of a residential or commercial building inspector, and who does not have, and never has had, a material financial interest in either the provision of residential and building inspection services or an activity directly related to the residential and building inspection profession, including the profession of real estate agent or broker, at any time during the 5 years preceding appointment.
III. The board shall be an administratively attached agency, under RSA 21-G:10, to the department of state.
IV. The failure of a board member to attend 2 or more meetings in a fiscal year shall be grounds for removal under RSA 4:1.
329-B:4 Compensation and Expenses. Members of the board shall each be allowed the sum of $30 per day 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 given at least 30 days in advance and 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 3 members.
329-B:6 Fees. The board shall establish fees for examination of applicants, for licensure and for biennial renewal of licensure to practice under this chapter, and for transcribing and transferring records and other services. Fees shall not exceed $250 per license period. 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.
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 shall lapse at the end of each fiscal year.
329-B:8 Examinations. The board shall have authority to examine and license residential and building inspectors. When issued, such license shall be valid throughout the state, and the licensee shall be entitled to perform the work of a licensed residential and building 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 licensure, containing such information as the board may require, accompanied by the required fee. Such examinations shall be held at such times and places as the board shall determine. The scope of such examinations and the methods of procedure shall be prescribed by the board.
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 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 time, place, type, and form of the examination.
V. The disposition of examinations, including provision of test results to examinees.
VI. How a license to practice under this chapter shall be renewed, including the requirements for continuing education.
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 residential and building inspectors, and of apprentices.
X. Standards of practice for both residential and commercial building inspections based on the residential and commercial standards of practice adopted by the National Association of Certified Home Inspectors and the ASTM standard guide for property condition assessments, E2018-01.
XI. Procedures for the conduct of hearings consistent with the requirements of due process, and for the imposition and disposition of administrative fines.
329-B:10 License Criteria.
I. No person shall provide, present, call, or represent himself or herself as able to provide a residential or commercial building inspection for compensation unless licensed in accordance with the provisions of this chapter. No business entity may provide residential and building inspection services unless each of the residential and building 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 inspectors” or “residential and building inspectors” 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.
II. To be eligible for a license as a residential and building inspector, an applicant shall fulfill the following requirements:
(a) Be of good moral character.
(b) Be a United States citizen at least 18 years of age, and have successfully completed high school or its equivalent.
(c) Have completed the required apprenticeship training and experience requirements as established by the board.
(d) Obtain sufficient professional insurance as required in rules adopted by the board.
(e) Submit to the board a notarized criminal history records release form, as provided by the New Hampshire division of state police, which authorizes the release of the person’s criminal records, if any. The applicant shall be responsible for the cost of any background investigation or criminal records check required under this subparagraph.
329-B:11 Expiration and Renewal. All licenses issued by the board shall expire after 2 years 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 residential and building inspector shall complete at least 20 hours of board approved continuing education during each calendar year in order to maintain his or her license.
329-B:12 Exclusions. A licensed residential and building inspector shall not be required to perform any action or make any determination unless specifically required by lawful authority. If an inspector determines an area to be inspected is unsafe, unsanitary, or poses a safety or health hazard, the area shall not be inspected. 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, and ordinances.
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 plants or animals including, but not limited to, wood boring insects or wood destroying organisms or diseases harmful to humans, asbestos, lead, and mold which present a safety hazard. Notwithstanding the exclusions in this paragraph, if the inspector suspects one or more items exist, he or she shall inform the client and recommend further action by a certified specialist.
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. The acoustical properties of any system or component.
XVII. The soundness, permanence, or remaining life of a roof by walking on it.
XVIII. An evaluation or endorsement of any item or component that is not covered by the manufacturer’s warranty or that is not readily accessible or is concealed, including but not limited to such items as subterranean ducts, pipes, or conduits within walls, floors, or ceilings, obstructed switches and outlets, the slab or floor beneath carpets or finished floors, the interior of heat exchangers, the interior of furnaces, air-conditioning coils and supply ducts, dirty or ash filled fireplace hearths, significant and non visible portions of chimney flues, “closed” or abandoned hearths/chimneys, fireplace inserts, pre-fabricated fireplaces, gas/propane fireplaces, portable heaters, and the waterproof membrane beneath roofs, balconies or shower pans. In addition, he or she is not required to evaluate or endorse the following specific components: computerized systems, radio or remotely controlled components, central vacuum systems, alarm, telephone, cable, intercom systems; private sewage systems, private water supply systems, artesian wells, water softeners, water softening systems, water circulating devices, water filtration or purification devices, or automatic lawn sprinkler systems; the hermetic seal of dual-glazed sliding glass doors, safety glass, windows, skylights, solar systems, fire-sprinkler systems, shut-off valves that are not in daily use; elevators, lifts, saunas, steam showers, humidifiers/dehumidifiers, electronic air cleaners, in-line duct motors or dampers, washers, dryers, refrigerators, their knobs, hoses, connections, filters, duct work, valves or drain pipes, and condensate pumps; thermostats, timers, clocks, portable or any free-standing appliances such as, rotisseries, natural gas, propane or electric stoves, including decorative and low-voltage lighting, portable spas, fountains and ponds, barbecues, fire-pits, pool sweep chemicals, assemblies, in-line chlorinators, or similar devices dispensing bromine or ozone, and the coatings on pools, spas, countertops, fixtures, appliances, decks and walkways retaining walls, landscaping or landscape items.
329-B:13 Reciprocity. Upon payment to the board of a fee, the submission of a written application form provided by the board, and meeting any other criteria established by the board, the board may issue a residential and building inspector license to any person who holds a valid license, certificate, or registration issued by another state or possession of the United States or the District of Columbia that has standards substantially equivalent to, or exceeding, those of this state, as determined by the board. The board may enter into written reciprocity agreement with other jurisdictions.
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 and commercial buildings if the inspection is within official duties and responsibilities.
II. A person who is employed as a property manager for a residential or commercial structure and whose official duties and responsibilities include inspecting the 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 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) 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 incompetency 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 incompetency 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 reprimand;
(b) By suspension, limitation or restriction of license or certification for a period of up to 2 years;
(c) By revocation of license or certification;
(d) By requiring the person to participate in a program of continuing education in the area or areas in which he or she has been found deficient;
(e) By requiring the residential and building inspector to obtain additional insurance against loss, expense, and liability resulting from errors and omissions or neglect in the performance of services as a residential and building inspector; or
(f) By requiring the residential and building inspector to file with the board a bond of not less than $25,000 that is furnished by a company authorized to do business in this state and is in the amount approved by the board.
329-B:16 Prohibited Acts. A licensed residential and building 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 residential and building inspection report in the past 12 months, except that a residential or commercial building protection company that is affiliated with or that retains a residential and building inspector does not violate this section if it performs repairs pursuant to a claim made under a residential or commercial building 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, or any broker or agent or real estate sales company, 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, preestablished findings, or the close of escrow.
V. Revealing or discussing any findings or conclusions about the inspection, other than an imminent safety hazard, to anyone other than the client, without the client’s express written permission.
VI. Providing anyone other than the client, or the board upon its request, with the original or a copy of the inspection report without the client’s express written permission.
329-B:17 Liability of Residential and Building Inspectors.
I. An action to recover damages for any act or omission of a residential and building inspector relating to a residential or commercial building inspection that he or she conducts may only be commenced within one year after the date that a residential or commercial building inspection is completed.
II. Only a client and no other party shall file a complaint or have an action to recover damages arising from a residential and building inspection or a residential and commercial building inspection report. In this paragraph, “client” means the actual person who commissioned and has responsibility for paying or has paid for the inspection.
329-B-18 Identification Cards and Mandatory Disclosures.
I. Upon the issuance of a license by the board, a license and an identification card shall be issued to each licensee. When conducting inspections, every licensee is required to have this identification card in his or her possession.
II. All licensees shall include their license number on all advertising materials, brochures, company websites, contracts, business cards, inspection reports, and invoices. This license number shall be displayed in a conspicuous manner.
329-B:19 Appeals. Any person affected by a final decision of the board may appeal such final decision pursuant to RSA 541.
329-B:20 Violations; Penalty. Any person who practices or offers to practice residential or commercial building inspection in this state for others for compensation without a license in accordance with this subdivision, or any person presenting or attempting to use the license or seal of another, or any person who gives any false or forged evidence of any kind to the board or to any board member in obtaining or attempting to obtain a license, or any person who falsely impersonates any other licensed residential and building inspector, or any person who attempts to use an expired or nonexistent or revoked license, or any person who violates any of the provisions of this chapter, shall be guilty of a class B misdemeanor if a natural person, or guilty of a felony if any other person. The board may also impose administrative fines for violations of this chapter in accordance with rules adopted by the board which shall not exceed $2,000 per offense, or in the case of a continuing offense, $250 for each day the violation continues.
2 Grandfathering; Authority of Board. For one year following the effective date of this act, the board of residential and building inspectors under RSA 329-B as inserted by this act may grant an initial license, without examination, to any resident of New Hampshire engaged in the practice of home inspections or residential or commercial building inspections this state, provided the board determines that the person meets the criteria for applicants for licensure under RSA 329-B. Applicants shall be responsible for fees required by the board.
3 Effective Date. This act shall take effect January 1, 2008.
LBAO
07-0035
01/26/07
HB 763-FN - FISCAL NOTE
AN ACT establishing the licensure and regulation of residential building inspectors.
FISCAL IMPACT:
The Department of State is not able to determine the fiscal impact of this bill on state revenue or expenditures. There will be no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of State states this bill establishes the board of residential building inspectors and administratively attaches the board to the Department under RSA 21-G:10. The Department is required to provide support services if agreed to in writing on a cost allocation basis. The Department does not know the extent of support services the board may require. The Department is not able to determine the fiscal impact on the state, but assumes fees assessed by the board will cover costs.