A BILL TO BE ENTITLED
AN ACT amending the laws under the north carolina home inspector licensure act.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 143‑151.51 reads as rewritten:
"§ 143‑151.51.  Requirements to be licensed as a home inspector.
(a)	To be licensed as a home inspector, an applicant must do all of the following:
(1)	Submit a completed application to the Board upon a form provided by the Board.
(2)	Pass a licensing examination prescribed by the Board.
(3)	Have minimum net assets or a bond in an amount determined by the Board. The amount may not be less than five thousand dollars ($5,000) nor more than ten thousand dollars ($10,000).
(4)	Pay the applicable fees.
(5)	Meet one of the following three conditions:
a.	Have a high school diploma or its equivalent, have been engaged as a licensed associate home inspector for at least one year, and have completed 100 home inspections for compensation.
b.	Have education and experience the Board considers to be equivalent to that required by sub‑subdivision a. of this subdivision.
c.	Be licensed as a general contractor under Article 1 of Chapter 87 of the General Statutes, as an architect under Chapter 83A of the General Statutes, or as a professional engineer under Chapter 89C of the General Statutes.
(5a)	Effective October 1, 2011, meet one of the following conditions:
a.	Have satisfactorily completed an approved pre‑licensing education program consisting of no more than 200 hours of instruction in subjects determined by the Board at least three years before the date the application is made. The instruction may include requirements of field training, classroom instruction, distance learning, peer review, or other educational formats approved by the Board.
b.	Have education and experience the Board considers to be equivalent to the requirements of sub‑subdivision a. of this subdivision.
c.	Be licensed as a general contractor under Article 1 of Chapter 87 of the General Statutes, an architect under Chapter 83A of the General Statutes, or a professional engineer under Chapter 89C of the General Statutes. A person qualifying under this sub‑subdivision shall remain in good standing with the person's respective licensing board.
(b)	When an applicant has satisfactorily completed the requirements in subsection (a) of this section, the Board shall notify the applicant and the applicant shall submit evidence to the Board that the applicant has the following:
(1)	General liability insurance in the amount of two hundred fifty thousand dollars ($250,000), which insurance may be individual coverage or coverage under an employer policy, with coverage parameters established by the Board; and
(2)	One of the following:
a.	Minimum net assets in an amount determined by the Board, which amount may not be less than seventeen thousand five hundred dollars ($17,500) nor more than thirty‑five thousand dollars ($35,000);
b.	A bond in an amount determined by the Board, which amount may not be less than seventeen thousand five hundred dollars ($17,500) nor more than thirty‑five thousand dollars ($35,000); or
c.	Errors and omissions insurance in the amount of two hundred fifty thousand dollars ($250,000), which insurance may be individual coverage or coverage under an employer policy, with coverage parameters established by the Board.
Upon determining that an applicant has satisfied the requirements of this subsection, the Board shall issue a home inspector license to the applicant.
(c)	All home inspectors licensed on or before September 30, 2011, shall, no later than October 1, 2013, complete an abbreviated licensing education program prescribed by the Board of not less than 50 educational hours of instruction and not more than 75 educational hours of instruction. The instruction may include requirements of field training, classroom instruction, distance learning, peer review, or other educational formats approved by the Board. A home inspector licensed before October 1, 2006, shall not be required to complete the abbreviated licensing education program required by this subsection if the home inspector submits to the Board a request to waive the abbreviated licensing education program requirement and an affidavit stating that the home inspector has completed at least 750 home inspections that meet the standards of practice guidelines of two or more systems. The Board may require each licensed home inspector submitting a request for waiver and an affidavit to submit up to three inspection reports for the Board's random review. Upon reviewing the inspection reports, the Board may request further inspection reports or information from the home inspector or require the home inspector to complete the abbreviated licensing education program. The Board shall either approve or deny a request for waiver within 120 days from the date the request and the affidavit are submitted unless the Board requests that a home inspector submit three inspection reports for review or further information regarding the request.
(d)	All associate licensed home inspectors with an active license on October 1, 2011, shall do one of the following:
(1)	No later than September 30, 2013, complete the associate licensure program and the abbreviated licensing education program prescribed by the Board under subsection (c) of this section.
(2)	Enroll in the new licensing program prescribed by the Board pursuant to subsection (a)(5a) of this section.
Upon completing one of the options under subdivisions (1) or (2) of this subsection, the Board shall terminate the associate status of the associate home inspector's license and the associate home inspector shall be issued a home inspector license. If an associate home inspector fails to complete the requirements of this subsection before October 1, 2013, the Board shall cancel the associate home inspector's license."
SECTION 2.  G.S. 143‑151.54 reads as rewritten:
"§ 143‑151.54.  Miscellaneous license provisions.
(a)	License as Property of the Board and Display of License. –  A license issued by the Board is the property of the Board. If the Board suspends or revokes a license issued by it, the individual to whom it is issued must give it to the Board upon demand. An individual who is licensed by the Board must display the license certificate in the manner prescribed by the Board. A license holder whose address changes must report the change to the Board.
(b)	Report Criminal Convictions and Disciplinary Actions. – A license holder who is convicted of any felony or misdemeanor or is disciplined by any governmental agency in connection with any other occupational or professional license shall file with the Board a written report of the conviction or disciplinary action within 60 days of the final judgment, order, or disposition of the case."
SECTION 3.  G.S. 143‑151.55 reads as rewritten:
"§ 143‑151.55.  Renewal of license; inactive licenses; lapsed licenses.
(a)	Renewal. – A license expires on September 30 of each year. A license may be renewed by filing an application for renewal with the Board and paying the required renewal fee. The Board must notify license holders at least 30 days before their licenses expire. The Board must renew the license of a person who files an application for renewal, pays the required renewal fee, has fulfilled the continuing education requirements set by the Board, and is not in violation of this Article when the application is filed. If the Board imposes a continuing education requirement as a condition of renewing a license, the Board must ensure that the courses needed to fulfill the requirement are available in all geographic areas of the State.
(b)	Late Renewal. – The Board may provide for the late renewal of a license upon the payment of a late fee, but no late renewal of a license may be granted more than one year after the license expires.
(c)	Inactive License. – A license holder may apply to the Board to be placed on inactive status. An applicant for inactive status must follow the procedure set by the Board. A license holder who is granted inactive status is not subject to the license renewal requirements during the period the license holder remains on inactive status.
A license holder whose application is granted and is placed on inactive status may apply to the Board to be reinstated to active status at any time. To change a license from inactive status to active status, the license holder must complete the same number of continuing education credit hours that would have been required of the license holder had the license holder maintained an active license. The number of continuing education credit hours required to return an inactive license to active status shall not exceed 24 credit hours. The Board may set conditions for reinstatement to active status. An individual who is on inactive status and applies to be reinstated to active status must comply with the conditions set by the Board.
(d)	Lapsed License. – The license of a licensed home inspector shall lapse if the licensee fails to continuously maintain minimum net assets or a bond as required by G.S. 143‑151.58. The license of a licensed associate home inspector shall lapse if the licensee fails to continuously be employed by or affiliated with a licensed home inspector as required by G.S. 143‑151.58."
SECTION 4.  G.S. 143‑151.56(a) is amended by adding the following new subdivision to read:
"(a)	The Board may deny or refuse to issue or renew a license, may suspend or revoke a license, or may impose probationary conditions on a license if the license holder or applicant for licensure has engaged in any of the following conduct:
...
(8)	Failed to maintain the requirements prescribed by G.S. 143‑151.51(b)."
SECTION 5.  G.S. 143‑151.57(b) reads as rewritten:
"(b)	Subsequent Application. – An individual who applied for a license as a home inspector and who failed the home inspector examination is not required to pay an additional application fee if the individual submits another application for a license as a home inspector. The individual must pay the examination fee, however, to be eligible to take the examination again. An individual may take the examination only once every 180 days."
SECTION 6.  G.S. 143‑151.58 reads as rewritten:
"§ 143‑151.58.  Duties of licensed home inspector or licensed associate home inspector.
(a)	Home Inspection Report. – A licensed home inspector or licensed associate home inspector must give to each person for whom the inspector performs a home inspection for compensation a written report of the home inspection. The inspector must give the person the report by the date set in a written agreement by the parties to the home inspection. If the parties to the home inspection did not agree on a date in a written agreement, the inspector must give the person the report within three business days after the inspection was performed.
(a1)	Summary Page. – A licensed home inspector or licensed associate home inspector must provide a summary page with each written report of the home inspection for each prepurchase home inspection of three or more systems. The summary page must describe any system or component of the home that does not function as intended, warrants further investigation by a specialist, or requires subsequent observation. The summary page may also describe any system or component that poses a safety concern. All other subject matter pertaining to the home inspection must appear in the body of the report. The summary page must contain the following statement: 'This summary page is not the entire report. The complete report may include additional information of interest or concern to you. It is strongly recommended that you promptly read the complete report. For information regarding the negotiability of any item in this report under the real estate purchase contract, contact your North Carolina real estate agent or an attorney.'
(a2)	North Carolina State Building Code. – If a licensed home inspector or licensed associate home inspector includes a deficiency in the written report of the home inspection that is stated as a violation of the North Carolina State Residential Building Code, the home inspector or associate home inspector is responsible for determining the construction dates of the home, State, and municipal building codes in effect at the time of construction and must conduct the home inspection using the building codes in effect at the time of the construction.
(b)	Insurance, Net Assets, and Bond Requirements. – A licensed home inspector must continuously maintain general liability insurance and minimum net assets, a bond, or errors and omissions insurance as required in G.S. 143‑151.51(b).
(c)	Supervision. – A licensed associate home inspector must be continuously employed by or affiliated with a licensed home inspector as required in G.S. 143‑151.52(5).
(d)	Record Keeping. – All licensees under this Article shall make and keep full and accurate records of business done under their licenses. Records shall include the written, signed contract and the written report required by the standards of practice referred to in G.S. 143‑151.49(a)(2) and any other information the Board requires by rule. Records shall be retained by licensees for not less than three years. Licensees shall furnish their records to the Board on demand."
SECTION 7.  G.S. 143‑151.64(a) reads as rewritten:
"(a)	Requirements. – The Board may establish programs of continuing education for licensees under this Article. A licensee subject to a program under this section shall present evidence to the Board upon the license renewal following initial licensure, and every renewal thereafter, that during the 12 months preceding the annual license expiration date the licensee has completed the required number of classroom hours of instruction in courses approved by the Board. Annual continuing education hour requirements shall be determined by the Board, but shall be no less than 12 credit hours and no more than 20 credit hours. No member of the Board shall provide or sponsor a continuing education course under this section while that person is serving on the Board."
SECTION 8.  Effective September 30, 2011, the Board shall not issue associate home inspector licenses. The Board shall not accept any applications for licensure as an associate home inspector after April 1, 2011.
SECTION 9.  G.S. 143‑151.51(a)(3) and (5) are repealed effective September 30, 2011.
SECTION 10.  G.S. 143‑151.52 is repealed effective September 30, 2013.
SECTION 11.  Sections 2, 3, and 7 of this act become effective September 1, 2009. Sections 4 and 6 of this act become effective October 1, 2011. The remainder of this act is effective when it becomes law.