HB1305: HB1305 Home Inspector Licensing Act of Georgia; enact

26 LC 62 0425S The House Committee on Regulated Industries offers the following substitute to HB 1305: A BILL TO BE ENTITLED AN ACT To amend Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to1 residential and commercial general contractors, so as to provid e for licensure of home2 inspectors; to provide for reciprocity of licensure; to provide for licensure of companies3 performing home inspections; to provide for minimum requirements to apply for licensure;4 to provide for requirements to maintain license; to require hom e inspectors to maintain5 insurance; to provide for standards of practice and unfair trad e practices; to provide for6 exceptions; to provide for definitions; to provide for a short title; to provide for a legislative7 purpose; to provide for related matters; to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 This Act shall be known and may be cited as the "Home Inspector Licensing Act of11 Georgia."12 H. B. 1305 (SUB) - 1 - 26 LC 62 0425S SECTION 2.13 The purpose of this Act is to regulate the practice of home ins pection within this state by14 establishing minimum qualifications, education, experience, and unfair trade practices for15 home inspectors, thereby protecting consumers from unqualified or unethical practitioners.16 SECTION 3.17 Chapter 41 of Title 43 of the Official Code of Georgia Annotated, relating to residential and18 commercial general contractors, is amended by designating Code Sections 43-41-1 through19 43-41-18 as Article 1.20 SECTION 4.21 Said chapter is further amended by adding a new article to read as follows:22 "ARTICLE 223 43-41-20.24 As used in this article, the term:25 (1) 'Ancillary services' means specialized inspections that a home inspector may offer26 but are not considered part of a general home inspection unless specifically advertised or27 performed outside the scope of the standards of practice.28 (2) 'Client' means the party for whom the home inspection is performed, including, but29 not limited to, a prospective purchaser or seller of a home.30 (3) 'Home inspection' means a limited, noninvasive examination of the condition of a31 home by a home inspector.32 (4) 'Home inspector' means any person, except an employee of a county, municipality,33 or political subdivision while engaged in the performance of th e duties of his or her34 employment, who, for consideration, inspects and reports on the condition of any home35 H. B. 1305 (SUB) - 2 - 26 LC 62 0425S or single-family dwelling or the grounds, roof, exterior surfac e, garage or carport,36 structure, attic, basement or crawl space, electrical system, h eating system,37 air-conditioning system, plumbing, on-site sewerage disposal, pool or hot tub, fireplace,38 kitchen, appliances, or any combination thereof for a prospective purchaser or seller.39 (5) 'Standards of practice' means the minimum standards for ho me inspections40 established by the board.41 (6) 'Unfair trade practices' means practices that violate the code of conduct that governs42 home inspectors as established by the board.43 43-41-21.44 (a) Home inspectors shall be licensed by the board beginning January 1, 2028.45 (b) The residential contractor division shall have jurisdictio n and authority over home46 inspectors.47 (c) The board shall provide by regulation for reciprocity with other states or territories of48 the United States in the licensing of home inspectors, provided that such other states have49 requirements substantially equal to the requirements in force in this state for registration,50 licensure, or certification, and that any such home inspector h olding a current and valid51 license, certificate, or registration from another state or territory seeking licensure by way52 of reciprocity shall demonstrate that such applicant meets the qualifications, requirements,53 and criteria set forth in this article and that such applicant is otherwise in compliance with54 all requirements of this state for the transaction of such business; provided, further, that a55 similar privilege is offered to residents of this state by such other state or territory.56 43-41-22.57 (a) An applicant for a home inspector license shall:58 (1) Be at least 18 years of age;59 H. B. 1305 (SUB) - 3 - 26 LC 62 0425S (2) Possess a high school diploma, or its equivalent, or ten y ears of experience in the60 home inspection or residential contractor industry;61 (3) Pass a criminal background check; and62 (4) Submit a complete application with all required documentation and fees.63 (b) Applicants shall pass an examination approved by the board.64 (c) Such licenses shall be renewable every four years by birth month of the licensee.65 43-41-23.66 Applicants and home inspectors shall maintain:67 (1) A minimum of $250,000.00 per occurrence and $500,000.00 ag gregate general68 liability insurance for third-party claims for bodily injury or property damage; and69 (2) A minimum of $250,000.00 per occurrence and $500,000.00 ag gregate errors and70 omissions insurance for claims of professional mistakes, oversights, or negligence. Such71 errors and omissions insurance shall include coverage for liability arising from referrals.72 43-41-24.73 To maintain licensure, home inspectors shall maintain competency in the current standards74 of practice and residential building codes.75 43-41-25.76 (a) Companies that perform home inspections shall be licensed by the board beginning77 January 1, 2028.78 (b) To be licensed by the board, companies that perform home inspections shall:79 (1) Register with the board;80 (2) Provide the board a list of all licensed home inspectors e mployed or contracted by81 the company;82 (3) Ensure all home inspections are performed by individuals holding active licenses;83 H. B. 1305 (SUB) - 4 - 26 LC 62 0425S (4) Maintain records of all inspections performed, including, but not limited to, home84 inspection reports and client information; and85 (5) Be subject to audit and disciplinary action by the board.86 43-41-26.87 (a) The board shall adopt and periodically update comprehensive standards of practice and88 unfair trade practices that all licensed home inspectors shall comply with. Such standards89 shall define the scope of a home inspection, include what is an d is not required to be90 inspected, and establish a baseline for the protection of public interest.91 (b) Licensed home inspectors shall provide clients with a written disclosure of the current92 standards of practice and unfair trade practices, a written dis closure of any ancillary93 services to be performed, and a sample home inspection report p rior to commencing an94 inspection.95 43-41-27.96 (a) The board shall open an investigation when there is:97 (1) A sworn written complaint from a client who hired a home inspector or company that98 performs home inspections;99 (2) A referral from another licensing entity; or100 (3) Probable cause established in the course of another investigation, or that is available101 in the public domain, that the home inspector or company that performs home inspections102 violated the standards of practice or engaged in unfair trade practices.103 (b) If an investigation finds a violation of this article, the board may:104 (1) Issue cease and desist orders to home inspectors or compan ies performing home105 inspections;106 (2) Impose fines;107 (3) Suspend or revoke licenses;108 H. B. 1305 (SUB) - 5 - 26 LC 62 0425S (4) Require additional education or training;109 (5) File a criminal complaint with the Attorney General; or110 (6) Any combination thereof.111 (c) Before imposing penalties for violations of this article, such violations shall be heard112 and determined by the residential contractor division in accordance with the provisions of113 Chapter 13 of Title 50, the 'Georgia Administrative Procedure Act.'114 43-41-28.115 The board shall establish reasonable fees for applications, examinations, licenses, license116 renewals, and other administrative services. All such fees collected shall be used to fund117 the operations and enforcement activities of the board.118 43-41-29.119 This article shall not apply to:120 (1) A real estate appraiser licensed pursuant to Chapter 39A of this title;121 (2) A real estate broker or salesperson licensed pursuant to Chapter 40 of this title;122 (3) A residential contractor licensed pursuant to Article 1 of this chapter; or123 (4) Any officer or employee of a government agency conducting official duties.124 43-41-30.125 Beginning July 1, 2027, any person working as a home inspector on or before such date126 may apply to the board for licensure without meeting the initial education requirements if127 they pass the National Home Inspector Examination or meet an eq uivalent competency128 measure as approved by the board."129 SECTION 5.130 All laws and parts of laws in conflict with this Act are repealed.131 H. B. 1305 (SUB) - 6 -