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:
PART I. CONTINUING EDUCATION REQUIREMENTS
SECTION 1.1.  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 not be less than 12 credit hours and no more than 20 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 1.2.  The North Carolina Home Inspector Licensure Board has the authority under G.S. 143‑151.49(a)(12) and G.S. 143‑151.55(a) to establish continuing education requirements as a condition of licensure renewal. Under that authority, the Board must require home inspectors and associate home inspectors licensed on or before September 30, 2011, to complete a continuing education program that focuses on inspection techniques and reporting requirements. The program must consist of 48 hours of instruction, composed of three separate 16‑hour segments. A separate segment must be offered each renewal period. A licensee must complete one segment of the program for each of the three license renewal periods beginning with the license renewal period that starts on October 1, 2011. A licensee must complete the three‑year program by October 1, 2014. Completion of each program segment satisfies the continuing education requirements under G.S. 143‑151.64 for the renewal period in which it is completed. The Board may not allow continuing education credit for an unapproved course under G.S. 143‑151.64(c) to be substituted for the continuing education requirements of this section.
SECTION 1.3.  This Part becomes effective October 1, 2009.
PART II. LICENSURE REQUIREMENTS
SECTION 2.1.  G.S. 143‑151.49 reads as rewritten:
"§ 143‑151.49.  Powers and responsibilities of Board.
(a)	General. – The Board has the power to do all of the following:
(1)	Examine and determine the qualifications and fitness of applicants for a new or renewed license.
(2)	Adopt and publish a code of ethics and standard of practice for persons licensed under this Article.
(3)	Issue, renew, deny, revoke, and suspend licenses under this Article.
(4)	Conduct investigations, subpoena individuals and records, and do all other things necessary and proper to discipline persons licensed under this Article and to enforce this Article.
(5)	Employ professional, clerical, investigative, or special personnel necessary to carry out the provisions of this Article.
(6)	Purchase or rent office space, equipment, and supplies necessary to carry out the provisions of this Article.
(7)	Adopt a seal by which it shall authenticate its proceedings, official records, and licenses.
(8)	Conduct administrative hearings in accordance with Article 3A of Chapter 150B of the General Statutes.
(9)	Establish fees as allowed by this Article.
(10)	Publish and make available upon request the licensure standards prescribed under this Article and all rules adopted by the Board.
(11)	Request and receive the assistance of State educational institutions or other State agencies.
(11a)	Establish education requirements for licensure.
(12)	Establish continuing education requirements for persons licensed under this Article.
(13)	Adopt rules necessary to implement this Article.
(b)	Education Requirements. – The education program adopted by the Board may not consist of more than 200 hours of instruction. The instruction may include field training, classroom instruction, distance learning, peer review, and any other educational format approved by the Board."
SECTION 2.2.  G.S. 143‑151.51 reads as rewritten:
"§ 143‑151.51.  Requirements to be licensed as a home inspector.
(a)	Licensure Eligibility. – To be eligible 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.
	
(4)	Pay the applicable fees.
(5)	Meet one of the following three conditions:
a.	Have a high school diploma or its equivalent and satisfactorily complete an education program approved by the Board. The program must be completed within three years of the date the applicant submits an application for licensure under this section.
b.	Have education and experience the Board considers to be equivalent to that required by sub‑subdivision a. of this subdivision.
c.	Be licensed for at least six months 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. A person qualifying under this sub‑subdivision on or after October 1, 2011, must remain in good standing with the person's respective licensing board.
(b)	License. – Upon compliance with the conditions of licensure under subsection (a) of this section, to be eligible to be licensed as a home inspector, an applicant must meet all of the insurance requirements of this subsection.
(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.
(2)	One of the following:
a.	Minimum net assets in an amount determined by the Board, which amount may not be less than five thousand dollars ($5,000) nor more than ten thousand dollars ($10,000).
b.	A bond in an amount determined by the Board, which amount may not be less than five thousand dollars ($5,000) nor more than ten thousand dollars ($10,000).
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."
SECTION 2.3.  G.S. 143‑151.55(d) reads as rewritten:
"(d)	Lapsed License. – The license of a licensed home inspector shall lapse if the licensee fails to continuously maintain the requirements provided in G.S. 143‑151.58(b). 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 2.4.  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 provided in G.S. 143‑151.58(b)."
SECTION 2.5.  G.S. 143‑151.58(b) reads as rewritten:
"(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)."
SECTION 2.6.  This Part becomes effective October 1, 2011.
PART III. ASSOCIATE HOME INSPECTOR LICENSURE SUNSET
SECTION 3.1.  The Board may not accept an application for licensure as an associate home inspector after April 1, 2011. The Board may not issue a license for an associate home inspector on or after October 1, 2011. The Board may not renew an associate home inspector license on or after October 1, 2013.
SECTION 3.2.  Notwithstanding G.S. 143‑151.51, as rewritten by Section 2.2 of this act, a person who holds a license as an associate home inspector on October 1, 2011, may satisfy the education program requirement for licensure as a home inspector by being engaged as a licensed associate home inspector for one year and completing 100 home inspections for compensation. A person licensed as a home inspector under this section must complete the continuing education requirements of Section 1.2 of this act. An associate home inspector may take one or more of the program segments required under Section 1.2 of this act while licensed as an associate home inspector.
SECTION 3.3.  G.S. 143‑151.45(1), 143‑151.52, 143‑151.58(c), and 143‑151.61 are repealed.
SECTION 3.4.  G.S. 143‑151.50 reads as rewritten:
"§ 143‑151.50.  License required to perform home inspections for compensation or to claim to be a "licensed home inspector".
(a)	Requirement. – To perform a home inspection for compensation or to claim to be a licensed home inspector, an individual must be licensed by the Board. An individual who is not licensed by the Board may perform a home inspection without compensation.
(b)	Form of License. – The Board may issue a license only to an individual and may not issue a license to a partnership, an association, a corporation, a firm, or another group. A licensed home inspector, however, may perform home inspections for or on behalf of a partnership, an association, a corporation, a firm, or another group, may conduct business as one of these entities, and may enter into and enforce contracts as one of these entities."
SECTION 3.5.  G.S. 143‑151.55(d), as amended by Section 2.3 of this act, reads as rewritten:
"(d)	Lapsed License. – The license of a licensed home inspector shall lapse if the licensee fails to continuously maintain the insurance requirements provided in G.S. 143‑151.51(b). "
SECTION 3.6.  G.S. 143‑151.57(a) reads as rewritten:
"(a)	Maximum Fees. – The Board may adopt fees that do not exceed the amounts set in the following table for administering this Article:
Item	Maximum Fee
Application for home inspector license	$25.00
	
Home inspector examination	75.00
Issuance of home inspector license	150.00
	
Late renewal of home inspector license	25.00
	
Application for course approval	150.00
Renewal of course approval	75.00
Course fee, per credit hour per license	5.00
Credit for unapproved continuing education course	50.00
Copies of Board rules or licensure standards	Cost of printing and mailing."
SECTION 3.7.(a)  The catch line of G.S. 143‑151.58 reads as rewritten:
"§ 143‑151.58.  Duties of licensed home inspector."
SECTION 3.7.(b)  G.S. 143‑151.58(a) reads as rewritten:
"(a)	Home Inspection Report. – A licensed 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."
SECTION 3.8.  Sections 3.3 through 3.7 of this Part become effective October 1, 2013. The remainder of this Part is effective when it becomes law.
PART IV. HOME INSPECTION REPORTS
SECTION 4.1.  G.S. 143‑151.58 is amended by adding two new subsections to read:
"(a1)	Summary Page. – A written report provided under subsection (a) of this section for a prepurchase home inspection of three or more systems must include a summary page that contains the information required by this subsection. All other subject matters 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.'
The summary page must describe any system or component of the home that does not function as intended, allowing for normal wear and tear that does not prevent the system or component from functioning as intended. The summary page must also describe any system or component that appears not to function as intended, based upon documented tangible evidence, and that requires either subsequent examination or further investigation by a specialist. The summary page may describe any system or component that poses a safety concern.
(a2)	State Building Code. – If a licensee includes a deficiency in the written report of a home inspection that is stated as a violation of the North Carolina State Residential Building Code, the licensee must do all of the following:
(1)	Determine the date of construction, renovation, and any subsequent installation or replacement of any system or component of the home.
(2)	Determine the State Building Code in effect at the time of construction, renovation, and any subsequent installation or replacement of any system or component of the home.
(3)	Conduct the home inspection using the building codes in effect at the time of the construction, renovation, and any subsequent installation or replacement of any system or component of the home.
In order to fully inform the client, if the licensee describes a deficiency as a violation of the State Building Code in the written report, then the report shall include the information described in subdivision (1) of this subsection and photocopies of the relevant provisions of the State Building Code used pursuant to subdivision (2) of this subsection to determine any violation stated in the report. The Board may adopt rules that are more restrictive on the use of the State Building Code by home inspectors."
SECTION 4.2.  G.S. 143‑151.58(d) reads as rewritten:
"(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 subsection (a) of this section and 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 4.3.  This Part becomes effective October 1, 2009.
PART V. OTHER LICENSURE CHANGES
SECTION 5.1.  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 5.2.  G.S. 143‑151.55(b) and (c) read as rewritten:
"(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."
SECTION 5.3.  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 5.4.  Sections 5.1 and 5.2 of this Part become effective October 1, 2009. The remainder of this Part is effective when it becomes law.
PART VI. EFFECTIVE DATE
SECTION 6.  Except as otherwise provided, this act is effective when it becomes law.