Reprinted
March 4, 2003
HOUSE BILL No. 1515
_____
DIGEST OF HB 1515
(Updated March 3, 2003 7:41 PM - DI 84)
Citations Affected: IC 25-1; IC 25-20.2; IC 34-30; noncode.
Synopsis: Licensure of home inspectors. Establishes the home
inspectors licensing board to regulate home inspectors and associate
home inspectors. Establishes requirements for licensed home
inspectors and associate home inspectors. Provides that a person who
performs home inspections for compensation without a license
commits a Class B infraction. Provides that a civil action based upon
the professional services of a licensed home inspector must be filed
within two years after the date of the act or omission that is the subject
of the complaint.
Effective: Upon passage; July 1, 2003.
Welch
, Stevenson
, Frizzell
, Behning
January 16, 2003, read first time and referred to Committee on Commerce and Economic
Development.
February 6, 2003, amended, reported _ Do Pass; recommitted to Committee on Ways and
Means.
February 27, 2003, reported _ Do Pass.
March 3, 2003, read second time, amended, ordered engrossed.
Reprinted
March 4, 2003
First Regular Session 113th General Assembly (2003)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in
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Additions: Whenever a new statutory provision is being enacted (or a new constitutional
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NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in
this style type or
this style type reconciles conflicts
between statutes enacted by the 2002 Regular or Special Session of the General Assembly.
HOUSE BILL No. 1515
A BILL FOR AN ACT to amend the Indiana Code concerning
professions and occupations.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 25-1-2-2.1; (03)HB1515.3.1. -->
SECTION 1. IC 25-1-2-2.1, AS AMENDED BY P.L.162-2002,
SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 2.1. Rather than being issued annually, the
following permits, licenses, certificates of registration, or evidences of
authority granted by a state agency must be issued for a period of two
(2) years or for the period specified in the article under which the
permit, license, certificate of registration, or evidence of authority is
issued if the period specified in the article is longer than two (2) years:
(1) Certified public accountants, public accountants, and
accounting practitioners.
(2) Architects and landscape architects.
(3) Dry cleaners.
(4) Professional engineers.
(5) Land surveyors.
(6) Real estate brokers.
(7) Real estate agents.
(8) Security dealers' licenses issued by the securities
commissioner.
(9) Dental hygienists.
(10) Dentists.
(11) Veterinarians.
(12) Physicians.
(13) Chiropractors.
(14) Physical therapists.
(15) Optometrists.
(16) Pharmacists and assistants, drugstores or pharmacies.
(17) Motels and mobile home park licenses.
(18) Nurses.
(19) Podiatrists.
(20) Occupational therapists and occupational therapy assistants.
(21) Respiratory care practitioners.
(22) Social workers, marriage and family therapists, and mental
health counselors.
(23) Real estate appraiser licenses and certificates issued by the
real estate appraiser licensure and certification board.
(24) Wholesale legend drug distributors.
(25) Physician assistants.
(26) Dietitians.
(27) Hypnotists.
(28) Athlete agents.
(29) Manufactured home installers.
(30) Home inspectors and associate home inspectors.
SOURCE: IC 25-1-2-6; (03)HB1515.3.2. -->
SECTION 2. IC 25-1-2-6, AS AMENDED BY P.L.162-2002,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 6. (a) As used in this section, "license" includes
all occupational and professional licenses, registrations, permits, and
certificates issued under the Indiana Code, and "licensee" includes all
occupational and professional licensees, registrants, permittees, and
certificate holders regulated under the Indiana Code.
(b) This section applies to the following entities that regulate
occupations or professions under the Indiana Code:
(1) Indiana board of accountancy.
(2) Indiana grain buyers and warehouse licensing agency.
(3) Indiana auctioneer commission.
(4) Board of registration for architects and landscape architects.
(5) State board of barber examiners.
(6) State board of cosmetology examiners.
(7) Medical licensing board of Indiana.
(8) Secretary of state.
(9) State board of dentistry.
(10) State board of funeral and cemetery service.
(11) Worker's compensation board of Indiana.
(12) Indiana state board of health facility administrators.
(13) Committee of hearing aid dealer examiners.
(14) Indiana state board of nursing.
(15) Indiana optometry board.
(16) Indiana board of pharmacy.
(17) Indiana plumbing commission.
(18) Board of podiatric medicine.
(19) Private detectives licensing board.
(20) State board of registration for professional engineers.
(21) Board of environmental health specialists.
(22) State psychology board.
(23) Indiana real estate commission.
(24) Speech-language pathology and audiology board.
(25) Department of natural resources.
(26) State boxing commission.
(27) Board of chiropractic examiners.
(28) Mining board.
(29) Indiana board of veterinary medical examiners.
(30) State department of health.
(31) Indiana physical therapy committee.
(32) Respiratory care committee.
(33) Occupational therapy committee.
(34) Social worker, marriage and family therapist, and mental
health counselor board.
(35) Real estate appraiser licensure and certification board.
(36) State board of registration for land surveyors.
(37) Physician assistant committee.
(38) Indiana dietitians certification board.
(39) Indiana hypnotist committee.
(40) Attorney general (only for the regulation of athlete agents).
(41) Manufactured home installer licensing board.
(42)
Home inspectors licensing board.
(43) Any other occupational or professional agency created after
June 30, 1981.
(c) Notwithstanding any other law, the entities included in
subsection (b) shall send a notice of the upcoming expiration of a
license to each licensee at least sixty (60) days prior to the expiration
of the license. The notice must inform the licensee of the need to renew
and the requirement of payment of the renewal fee. If this notice of
expiration is not sent by the entity, the licensee is not subject to a
sanction for failure to renew if, once notice is received from the entity,
the license is renewed within forty-five (45) days of the receipt of the
notice.
SOURCE: IC 25-1-6-3; (03)HB1515.3.3. -->
SECTION 3. IC 25-1-6-3, AS AMENDED BY P.L.162-2002,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 3. (a) There is established the Indiana professional
licensing agency. The licensing agency shall perform all administrative
functions, duties, and responsibilities assigned by law or rule to the
executive director, secretary, or other statutory administrator of the
following:
(1) Indiana board of accountancy (IC 25-2.1-2-1).
(2) Board of registration for architects and landscape architects
(IC 25-4-1-2).
(3) Indiana auctioneer commission (IC 25-6.1-2-1).
(4) State board of barber examiners (IC 25-7-5-1).
(5) State boxing commission (IC 25-9-1).
(6) State board of cosmetology examiners (IC 25-8-3-1).
(7) State board of funeral and cemetery service (IC 25-15-9).
(8) State board of registration for professional engineers
(IC 25-31-1-3).
(9) Indiana plumbing commission (IC 25-28.5-1-3).
(10) Indiana real estate commission (IC 25-34.1).
(11) Real estate appraiser licensure and certification board
(IC 25-34.1-8-1).
(12) Private detectives licensing board (IC 25-30-1-5.1).
(13) State board of registration for land surveyors
(IC 25-21.5-2-1).
(14) Manufactured home installer licensing board (IC 25-23.7).
(15) Home inspectors licensing board (IC 25-20.2-3-1).
(b) Except for appeals of denials of license renewals to the
executive director authorized by section 5.5 of this chapter, nothing in
this chapter may be construed to give the licensing agency policy
making authority, which remains with each board.
SOURCE: IC 25-1-7-1; (03)HB1515.3.4. -->
SECTION 4. IC 25-1-7-1, AS AMENDED BY P.L.162-2002,
SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1. As used in this chapter:
"Board" means the appropriate agency listed in the definition of
regulated occupation in this section.
"Director" refers to the director of the division of consumer
protection.
"Division" refers to the division of consumer protection, office of
the attorney general.
"Licensee" means a person who is:
(1) licensed, certified, or registered by a board listed in this
section; and
(2) the subject of a complaint filed with the division.
"Person" means an individual, a partnership, a limited liability
company, or a corporation.
"Regulated occupation" means an occupation in which a person is
licensed, certified, or registered by one (1) of the following:
(1) Indiana board of accountancy (IC 25-2.1-2-1).
(2) Board of registration for architects and landscape architects
(IC 25-4-1-2).
(3) Indiana auctioneer commission (IC 25-6.1-2-1).
(4) State board of barber examiners (IC 25-7-5-1).
(5) State boxing commission (IC 25-9-1).
(6) Board of chiropractic examiners (IC 25-10-1).
(7) State board of cosmetology examiners (IC 25-8-3-1).
(8) State board of dentistry (IC 25-14-1).
(9) State board of funeral and cemetery service (IC 25-15-9).
(10) State board of registration for professional engineers
(IC 25-31-1-3).
(11) Indiana state board of health facility administrators
(IC 25-19-1).
(12) Medical licensing board of Indiana (IC 25-22.5-2).
(13) Indiana state board of nursing (IC 25-23-1).
(14) Indiana optometry board (IC 25-24).
(15) Indiana board of pharmacy (IC 25-26).
(16) Indiana plumbing commission (IC 25-28.5-1-3).
(17) Board of podiatric medicine (IC 25-29-2-1).
(18) Board of environmental health specialists (IC 25-32-1).
(19) State psychology board (IC 25-33).
(20) Speech-language pathology and audiology board
(IC 25-35.6-2).
(21) Indiana real estate commission (IC 25-34.1-2).
(22) Indiana board of veterinary medical examiners (IC 15-5-1.1).
(23) Department of natural resources for purposes of licensing
water well drillers under IC 25-39-3.
(24) Respiratory care committee (IC 25-34.5).
(25) Private detectives licensing board (IC 25-30-1-5.1).
(26) Occupational therapy committee (IC 25-23.5).
(27) Social worker, marriage and family therapist, and mental
health counselor board (IC 25-23.6).
(28) Real estate appraiser licensure and certification board
(IC 25-34.1-8).
(29) State board of registration for land surveyors
(IC 25-21.5-2-1).
(30) Physician assistant committee (IC 25-27.5).
(31) Indiana athletic trainers board (IC 25-5.1-2-1).
(32) Indiana dietitians certification board (IC 25-14.5-2-1).
(33) Indiana hypnotist committee (IC 25-20.5-1-7).
(34) Indiana physical therapy committee (IC 25-27).
(35) Manufactured home installer licensing board (IC 25-23.7).
(36)
Home inspectors licensing board (IC 25-20.2-3-1).
(37) Any other occupational or professional agency created after
June 30, 1981.
SOURCE: IC 25-1-8-1; (03)HB1515.3.5. -->
SECTION 5. IC 25-1-8-1, AS AMENDED BY P.L.162-2002,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1. As used in this chapter, "board" means any of
the following:
(1) Indiana board of accountancy (IC 25-2.1-2-1).
(2) Board of registration for architects and landscape architects
(IC 25-4-1-2).
(3) Indiana auctioneer commission (IC 25-6.1-2-1).
(4) State board of barber examiners (IC 25-7-5-1).
(5) State boxing commission (IC 25-9-1).
(6) Board of chiropractic examiners (IC 25-10-1).
(7) State board of cosmetology examiners (IC 25-8-3-1).
(8) State board of dentistry (IC 25-14-1).
(9) State board of funeral and cemetery service (IC 25-15).
(10) State board of registration for professional engineers
(IC 25-31-1-3).
(11) Indiana state board of health facility administrators
(IC 25-19-1).
(12) Medical licensing board of Indiana (IC 25-22.5-2).
(13) Mining board (IC 22-10-1.5-2).
(14) Indiana state board of nursing (IC 25-23-1).
(15) Indiana optometry board (IC 25-24).
(16) Indiana board of pharmacy (IC 25-26).
(17) Indiana plumbing commission (IC 25-28.5-1-3).
(18) Board of environmental health specialists (IC 25-32-1).
(19) State psychology board (IC 25-33).
(20) Speech-language pathology and audiology board
(IC 25-35.6-2).
(21) Indiana real estate commission (IC 25-34.1-2-1).
(22) Indiana board of veterinary medical examiners
(IC 15-5-1.1-3).
(23) Department of insurance (IC 27-1).
(24) State police department (IC 10-1-1-1), for purposes of
certifying polygraph examiners under IC 25-30-2.
(25) Department of natural resources for purposes of licensing
water well drillers under IC 25-39-3.
(26) Private detectives licensing board (IC 25-30-1-5.1).
(27) Occupational therapy committee (IC 25-23.5-2-1).
(28) Social worker, marriage and family therapist, and mental
health counselor board (IC 25-23.6-2-1).
(29) Real estate appraiser licensure and certification board
(IC 25-34.1-8).
(30) State board of registration for land surveyors
(IC 25-21.5-2-1).
(31) Physician assistant committee (IC 25-27.5).
(32) Indiana athletic trainers board (IC 25-5.1-2-1).
(33) Board of podiatric medicine (IC 25-29-2-1).
(34) Indiana dietitians certification board (IC 25-14.5-2-1).
(35) Indiana physical therapy committee (IC 25-27).
(36) Manufactured home installer licensing board (IC 25-23.7).
(37) Home inspectors licensing board (IC 25-20.2-3-1).
(38) Any other occupational or professional agency created after
June 30, 1981.
SOURCE: IC 25-1-11-1; (03)HB1515.3.6. -->
SECTION 6. IC 25-1-11-1, AS AMENDED BY P.L.162-2002,
SECTION 6, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2003]: Sec. 1. As used in this chapter, "board" means any of
the following:
(1) Indiana board of accountancy (IC 25-2.1-2-1).
(2) Board of registration for architects and landscape architects
(IC 25-4-1-2).
(3) Indiana auctioneer commission (IC 25-6.1-2).
(4) State board of barber examiners (IC 25-7-5-1).
(5) State boxing commission (IC 25-9-1).
(6) State board of cosmetology examiners (IC 25-8-3-1).
(7) State board of registration of land surveyors (IC 25-21.5-2-1).
(8) State board of funeral and cemetery service (IC 25-15-9).
(9) State board of registration for professional engineers
(IC 25-31-1-3).
(10) Indiana plumbing commission (IC 25-28.5-1-3).
(11) Indiana real estate commission (IC 25-34.1-2-1).
(12) Real estate appraiser licensure certification board
(IC 25-34.1-8).
(13) Private detectives licensing board (IC 25-30-1-5.1).
(14) Manufactured home installer licensing board (IC 25-23.7).
(15) Indiana home inspectors licensing board (IC 25-20.2-3-1).
SOURCE: IC 25-20.2; (03)HB1515.3.7. -->
SECTION 7. IC 25-20.2 IS ADDED TO THE INDIANA CODE AS
A
NEW ARTICLE TO READ AS FOLLOWS [EFFECTIVE JULY 1,
2003]:
ARTICLE 20.2. HOME INSPECTIONS
Chapter 1. Application of Article
Sec. 1. (a) This article applies to an individual who conducts
home inspections for compensation.
(b) This article does not apply to the following:
(1) An individual who is acting within the scope of the
individual's employment as:
(A) a code enforcement official for the state or a political
subdivision of the state; or
(B) a representative of a state or local housing agency or
authority acting under the authority of the United States
Department of Housing and Urban Development.
(2) An individual who is:
(A) either:
(i) registered as an architect under IC 25-4;
(ii) registered as a professional engineer under IC 25-31;
or
(iii) licensed as a plumbing contractor or journeyman
plumber under IC 25-28.5; and
(B) acting within the scope of the individual's registration
or license.
(3) An individual who is licensed under IC 25-34.1 as a real
estate broker, broker-salesperson, or salesperson and is acting
within the scope of the individual's license.
(4) An individual who is licensed or certified under IC 25-34.1
as a real estate appraiser and is acting within the scope of the
individual's license or certificate.
(5) An individual who holds a certificate of authority under
IC 27-1-27-2 as a public adjuster and is acting within the
scope of the individual's certificate.
(6) An individual who holds a permit, certificate, or license to:
(A) use and apply pesticides; or
(B) make diagnostic inspections and reports for wood
destroying pests;
under IC 15-3-3.6 and is acting within the scope of the
individual's certificate or license.
(7) An individual who holds a license from a political
subdivision as a tradesperson or home builder and is acting
within the scope of the individual's license.
Chapter 2. Definitions
Sec. 1. The definitions in this chapter apply throughout this
article.
Sec. 2. "Agency" refers to the Indiana professional licensing
agency established by IC 25-1-6-3.
Sec. 3. "Applicant" means an individual who applies for a
license as a home inspector or an associate home inspector.
Sec. 4. "Board" refers to the home inspectors licensing board
established by IC 25-20.2-3-1.
Sec. 5. "Client" means an individual who hires or seeks to hire
a licensed home inspector or licensed associate home inspector to
obtain a home inspection or home inspection report.
Sec. 6. "Home inspection" means a visual analysis for the
purpose of providing a professional opinion of the condition of a
residential dwelling and the dwelling's carports or garages, any
reasonably accessible installed components, and the operation of
the dwelling's systems, including any controls normally operated
by the owner of the dwelling, for the following components:
(1) Heating systems.
(2) Cooling systems.
(3) Electrical systems.
(4) Plumbing systems.
(5) Structural components.
(6) Foundations.
(7) Roof coverings.
(8) Exterior and interior components.
(9) Any other site aspects that affect the residential dwelling.
The term does not include a code compliance inspection.
Sec. 7. "Home inspection report" means a legibly written report
prepared for compensation and issued after a home inspection. The
report must include the following:
(1) A report on any system or component inspected that, in
the professional opinion of the inspector, is significantly
deficient or near the end of the system or component's service
life. A report under this subdivision must include the reason
why the system or component is significantly deficient or near
the end of the system or component's service life, unless the
reason is self-evident.
(2) The inspector's recommendation on how to remedy or
monitor a deficiency reported under subdivision (1).
(3) A list of any systems or components that were designated
for inspection in the standards of performance adopted by the
board but that were not inspected.
(4) The reason a system or component listed under
subdivision (3) was not inspected.
(5) A statement that the report does not address
environmental hazards, including:
(A) lead-based paint;
(B) radon;
(C) asbestos;
(D) cockroaches;
(E) rodents;
(F) pesticides;
(G) treated lumber;
(H) mold;
(I) mercury;
(J) carbon monoxide; or
(K) other similar environmental hazards.
Sec. 8. "Licensed associate home inspector" means an individual
who is licensed
under this article as an associate home inspector.
Sec. 9. "Licensed home inspector" means an individual who is
licensed under this article as a home inspector.
Sec. 10. "Licensee" means a person who performs home
inspections and who is licensed under this article as a home
inspector or an associate home inspector.
Sec. 11. "Residential dwelling" means a structure consisting of
at least one (1) but not more than five (5) units, each designed for
occupancy by a single family, whether the units are occupied or
unoccupied.
Sec. 12. "Supervising inspector" means a board approved
licensed home inspector who supervises one (1) or more associate
home inspectors in connection with the requirements of
IC 25-20.2-5-3(b).
Chapter 3. Home Inspectors Licensing Board
Sec. 1. The home inspectors licensing board is established.
Sec. 2. (a) The board is composed of seven (7) members
appointed by the governor as follows:
(1) Four (4) members, each of whom:
(A) is licensed in Indiana as a home inspector; and
(B) has been actively engaged in performing home
inspections in Indiana for at least five (5) years
immediately before the member's appointment to the
board.
(2) One (1) member who:
(A) is a home builder; and
(B) has been actively engaged in home building in Indiana
for at least five (5) years immediately before the member's
appointment to the board.
(3) One (1) member who:
(A) is a licensed real estate salesperson under
IC 25-34.1-3-3.1 or a licensed real estate broker under
IC 25-34.1-3-4.1; and
(B) has been actively engaged in selling, trading,
exchanging, optioning, leasing, renting, managing, listing,
or appraising residential real estate in Indiana for at least
five (5) years immediately before the member's
appointment to the board.
(4) One (1) member who represents the public at large and is
not associated with the home inspection, home building, or
real estate business other than as a consumer.
(b) The members of the board must be residents of Indiana.
Sec. 3. (a) Each member of the board serves a term of three (3)
years and until a successor is appointed and qualified.
(b) The governor may remove a board member at any time for
incompetency, neglect of duty, or unprofessional conduct.
(c) If a vacancy occurs in the membership of the board, the
governor shall appoint an individual recommended by the
appropriate agency under section 2 of this chapter to serve for the
remainder of the unexpired term.
(d) A member may not serve on the board for more than six (6)
consecutive years.
Sec. 4. (a) Each year the board shall elect a member as
chairperson and a member as vice chairperson.
(b) The chairperson and the vice chairperson shall serve in their
respective capacities for one (1) year and until a successor is
elected.
(c) The chairperson and the vice chairperson may not serve in
those capacities for more than two (2) consecutive years.
Sec. 5. (a) The chairperson shall preside at all meetings at which
the chairperson is present. The vice chairperson shall preside at
meetings in the absence of the chairperson and shall perform other
duties as the chairperson directs.
(b) If the chairperson and vice chairperson are absent from a
meeting of the board when a quorum exists, the members who are
present may elect a presiding officer who shall serve as acting
chairperson until the conclusion of the meeting or until the arrival
of the chairperson or vice chairperson.
Sec. 6. (a) The board shall meet at least two (2) times each
calendar year upon the call of the chairperson or the written
request of a majority of the members of the board.
(b) The chairperson shall establish the time and place for each
meeting.
(c) A majority of the current members of the board constitutes
a quorum.
(d) Unless otherwise provided by this article, the affirmative
vote of a majority of the members appointed to the board is
necessary for the board to take official action.
Sec. 7. Each member of the board is entitled to the minimum
salary per diem as provided by IC 4-10-11-2.1(b). Each member of
the board is entitled to reimbursement for traveling expenses and
other expenses actually incurred in connection with the member's
duties as provided in the state policies and procedures established
by the Indiana department of administration and approved by the
budget agency.
Sec. 8. The board shall:
(1) administer and enforce this article;
(2) adopt rules under IC 4-22-2 that are reasonably necessary
or appropriate for the administration and enforcement of this
article;
(3) prescribe the requirements for and the form of licenses,
applications, and other documents that are required by this
article;
(4) prescribe the number of home inspections that must be
performed under the direction of a supervising inspector to
obtain a license under this article, which number may not
exceed two hundred fifty (250) home inspections;
(5) issue, deny, suspend, and revoke licenses in accordance
with this article;
(6) in accordance with IC 25-1-7, investigate complaints
concerning licensees or persons the board has reason to
believe should be licensees, including complaints concerning
failure to comply with this article or rules adopted under this
article, and, when appropriate, take action under
IC 25-20.2-8;
(7) bring actions in the name of the state in an appropriate
circuit court in order to enforce compliance with this article
or rules adopted under this article;
(8) establish fees in accordance with IC 25-1-8;
(9) inspect the records of a licensee in accordance with rules
adopted by the board;
(10) conduct or designate a member or other representative
to conduct public hearings on any matter for which a hearing
is required under this article and exercise all powers granted
under IC 4-21.5;
(11) adopt a seal containing the words "Indiana Home
Inspectors Licensing Board" and, through the board's
executive director, certify copies and authenticate all acts of
the board;
(12) in accordance with IC 25-1-6:
(A) use counsel, consultants, and other persons;
(B) enter into contracts; and
(C) authorize expenditures;
that are reasonably necessary or appropriate to administer
and enforce this article and rules adopted under this article;
(13) establish continuing education requirements for licensed
home inspectors in accordance with IC 25-1-4;
(14) maintain the board's office, files, records, and property
in the city of Indianapolis; and
(15) exercise all other powers specifically conferred on the
board by this article.
Sec. 9. The board shall adopt rules under IC 4-22-2 establishing:
(1) standards for the competent performance of home
inspections;
(2) a code of ethics for licensed home inspectors and licensed
associate home inspectors;
(3) standards for home inspection reports prepared by
licensed home inspectors and licensed associate home
inspectors; and
(4) standards for licensed home inspectors who serve as
supervising inspectors under IC 25-20.2-5-3(b).
Chapter 4. Licensing Agency; Board Secretary
Sec. 1. The agency shall provide the board with a competent
person to serve as secretary of the board. The secretary is not a
member of the board. The secretary, through the agency, shall:
(1) provide reasonable notice to board members of the time
and place of each meeting;
(2) keep a complete and accurate record of all:
(A) meetings;
(B) votes taken by the board; and
(C) other proceedings, transactions, communications,
official acts, and records of the board;
(3) keep a current file of all licenses and licensees; and
(4) perform any other duties assigned by the board.
Sec. 2. The agency shall provide the board with clerical or other
assistants, including investigators, necessary for the proper
performance of the board's duties.
Sec. 3. The secretary shall receive and account for all money
collected under this article and, at the end of each month, report to
the auditor of state and deposit the money into the state general
fund with the treasurer of state.
Sec. 4. All expenses incurred in the administration of this article
shall be paid from the state general fund.
Chapter 5. Licensing Requirements
Sec. 1. Unless exempt under this article, a person may not
conduct a home inspection for compensation without first
obtaining a license as a home inspector or an associate home
inspector.
Sec. 2. (a) An individual who applies for a license as a home
inspector must do the following:
(1) Furnish evidence satisfactory to the board showing that
the individual:
(A) is at least eighteen (18) years of age;
(B) has graduated from high school or earned an Indiana
general educational development (GED) diploma;
(C) has not been:
(i) convicted of an act that would constitute a ground for
disciplinary sanction under IC 25-1-11;
(ii) convicted of a crime that has a direct bearing on the
individual's ability to perform competently and fully as
a licensee;
(iii) listed on a national or state registry of sex offenders;
or
(iv) the subject of a disciplinary or enforcement action
by another state or a local jurisdiction in connection with
the performance of home inspections or the licensing or
certification of home inspectors;
(D) has performed at least the required number of home
inspections under the direction of a supervising inspector
and in compliance with the home inspection standards
established by the board; and
(E) has been licensed as an associate home inspector for at
least one (1) year.
(2) Verify the information submitted on the application form.
(3) Pass the national home inspector examination offered by
the examination board of professional home inspectors or by
another entity approved by the examination board of
professional home inspectors. Passage of an examination
before, on, or after July 1, 2003, satisfies this subdivision.
(4) Submit to the board a certificate of insurance or other
evidence of financial responsibility that is acceptable to the
board and that:
(A) is issued by an insurance company or other legal entity
authorized to transact business in Indiana;
(B) provides for general liability coverage of at least one
hundred thousand dollars ($100,000);
(C) lists the state as an additional insured;
(D) states that cancellation and nonrenewal of the
underlying policy or other evidence of financial
responsibility is not effective until the board receives at
least ten (10) days prior written notice of the cancellation
or nonrenewal; and
(E) contains any other terms and conditions established by
the board.
(5) Pay a licensing fee established by the board.
(b) An individual applying for a license as a home inspector
must apply on a form prescribed and provided by the board.
Sec. 3. (a) An individual who applies for a license as an associate
home inspector must do the following:
(1) Furnish evidence satisfactory to the board showing that
the individual:
(A) meets the requirements set forth in section 2(a)(1) of
this chapter for licensing as a home inspector, except for
the work experience requirement of section 2(a)(1)(D) and
2(a)(1)(E) of this chapter;
(B) is associated with a supervising inspector for the
purposes of subsection (b); and
(C) has successfully completed a board approved training
program or course of study involving the performance of
home inspections and the preparation of home inspection
reports and passed an exit examination.
(2) Apply on a form prescribed and provided by the board.
(b) In performing the home inspections that must be performed
under section 2(a)(1)(D) of this chapter to qualify for licensing as
a home inspector, a licensed associate home inspector must comply
with the following conditions:
(1) Perform, at intervals determined by the board, at least ten
(10) home inspections under the guidance of a supervising
inspector, who shall provide comments and guidance to
ensure that the licensed associate home inspector complies
with the standards of performance, code of ethics, and report
writing standards established by the board.
(2) In conjunction with the associate inspector's supervising
inspector, maintain separate logs of all supervised home
inspections. The log must contain at least the following
information:
(A) The client's name and address.
(B) The address of the inspected property.
(C) The date of the inspection.
(D) The date the written report was reviewed by the
supervising inspector.
(E) Any appropriate comments.
(3) Prepare at least the required number of additional home
inspection reports for review by a supervising inspector, who
shall provide comments and guidance to ensure that the
licensed associate home inspector complies with the standards
of performance, code of ethics, and report writing standards
established by the board.
(4) Successfully complete all additional and appropriate
training established, with board approval, by the associate
inspector's supervising inspector to advance the skills of the
licensed associate home inspector.
(5) Pay any fees charged by the supervising inspector for
serving as a supervising inspector.
Sec. 4. (a) The other licensing requirements of this chapter may
be waived for an individual moving to Indiana from another
jurisdiction and the individual may be granted a license as a home
inspector if the individual meets the following requirements:
(1) The other jurisdiction grants the same privileges to
licensees of Indiana as Indiana grants to licensees of that
other jurisdiction.
(2) The individual is licensed in the other jurisdiction.
(3) The licensing requirements of the other jurisdiction are
substantially similar to the requirements of this article.
(4) The individual states that the individual has studied, is
familiar with, and will abide by this article and the rules
adopted by the board under this article.
(b) An individual seeking a license as a home inspector under
this section must:
(1) apply on a form prescribed and provided by the board;
and
(2) pay the applicable licensing fee established by the board.
Sec. 5. (a) A nonresident whom the board determines meets the
requirements of this article and who files the written consent
described in subsection (b) may be licensed as a home inspector or
an associate home inspector in Indiana.
(b) A nonresident applicant shall file with the board a written
consent stating that, if licensed:
(1) the applicant agrees to the commencement of any action
arising out of the conduct of the applicant's business in
Indiana in the county in which the events giving rise to the
cause of action occurred;
(2) the applicant:
(A) agrees to provide to the board the name and address of
an agent to receive service of process in Indiana; or
(B) consents to the board acting as the applicant's agent for
the purpose of receiving service of process, if:
(i) an agent's name and address have not been filed with
the board; or
(ii) the agent's name and address on file with the board
are incorrect; and
(3) the applicant agrees that service of process in accordance
with the Indiana Rules of Trial Procedure is proper service
and subjects the applicant to the jurisdiction of Indiana
courts.
Sec. 6. All licenses issued by the board remain the property of
the board.
Sec. 7. A licensee shall notify the board immediately of any
change of:
(1) name;
(2) name under which the licensee conducts business; or
(3) business address.
Chapter 6. License Renewal
Sec. 1. A license for a home inspector issued under this article
expires two (2) years after the date of issuance.
Sec. 2. Notwithstanding IC 25-1-2-2.1, a license for an associate
home inspector issued under this article expires one (1) year after
the date of issuance.
Sec. 3. An individual who applies to renew a license as a licensed
home inspector or a licensed associate home inspector must:
(1) furnish evidence showing successful completion of the
continuing education requirements of this chapter; and
(2) pay the renewal fee established by the board.
Sec. 4. (a) Renewal notices must be sent in accordance with
IC 25-1-2-6(c).
(b) The renewal fee must be paid in accordance with
IC 25-1-8-2(d).
Sec. 5. Before the end of each license period, each licensee must
complete the continuing education required by the board. This
requirement may not exceed twenty (20) hours per year.
Sec. 6. (a) The board shall adopt rules concerning the continuing
education required for the renewal of a license under this chapter.
(b) The rules must do the following:
(1) Establish procedures for approving organizations that
provide continuing education.
(2) Establish a fee for each hour of continuing education that
is required after a license is issued or renewed.
(3) Prescribe the content, duration, and organization of
continuing education courses that contribute to the general
competence of home inspectors.
Sec. 7. An individual may not hold an associate home inspector
license for more than five (5) years. If, after holding an associate
home inspector license for five (5) years, a licensed associate home
inspector has not met all the requirements to become a licensed
home inspector, the individual's associate home inspector's license
expires and may not be further renewed. A person whose associate
home inspector license has expired under this section may reapply
for a new associate home inspector's license under this article.
Chapter 7. Authority of Other Jurisdictions to License Home
Inspectors
Sec. 1. As used in this chapter, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
Sec. 2. An agency or political subdivision of the state (other than
the board) may not:
(1) impose a registration or licensing requirement; or
(2) charge a license, employment, or other fee;
on individuals licensed under this article for activities defined in
this article.
Chapter 8. Disciplinary Proceedings; Enforcement
Sec. 1. The board may take disciplinary actions against or
impose sanctions on a licensee under IC 25-1-11 for any of the
following:
(1) Disclosing information concerning the results of a home
inspection without the approval of a client or the client's legal
representative, except under a court order.
(2) Accepting compensation for the same service from more
than one (1) party without the consent of all interested parties.
(3) Accepting commissions or allowances, directly or
indirectly, from other parties dealing with the licensee's client
in connection with any work for which the licensee is
responsible.
(4) Accepting compensation, directly or indirectly, from other
parties dealing with the licensee's client in connection with
any repair work for which the licensee is responsible.
(5) Failing to disclose to a client information about a business
interest of the licensee that may affect the client in connection
with any work for which the licensee is responsible.
(6) Knowingly making a false or misleading representation
about:
(A) the condition of a residential dwelling for which the
licensee has performed or has contracted to perform a
home inspection; or
(B) the extent of the services the licensee has performed or
will perform.
(7) Committing a felony in the course of the practice of home
inspection or committing any act constituting a violation of
IC 25-20.2-5-2(a)(1)(C).
(8) Violating any provisions of this article or rules adopted by
the board under this article.
(9) Making a false or misleading representation:
(A) in a license or renewal application form; or
(B) in information provided to the board.
(10) Failing to pay any fees or fines required by this article.
(11) Failing to continuously maintain the insurance or other
evidence of financial responsibility required by this article.
(12) Communicating to the public false or misleading
information about the type of license held by the licensee.
(13) Engaging in a course of lewd or immoral conduct in
connection with the delivery of services to clients.
(14) Failing to complete the continuing education
requirements established by the board.
Sec. 2. The procedures set forth in IC 4-21.5 govern the board's
conduct of disciplinary hearings.
Sec. 3. The board may summarily suspend a license for up to
ninety (90) days before a final adjudication or during an appeal of
the board's determination if the board finds that the licensee would
represent a clear and immediate danger to the public's health,
safety, or property if allowed to perform home inspections. The
summary suspension may be renewed upon a hearing before the
board for up to ninety (90) days.
Sec. 4. (a) If the board determines that an individual not
licensed under this article is engaged in or believed to be engaged
in activities for which a license is required under this article, the
board may issue an order to that individual requiring the
individual to show cause why the individual should not be ordered
to cease and desist from such activities. The show cause order must
set forth a time and place for a hearing at which the affected
individual may appear and show cause why the individual should
not be subject to licensing under this article.
(b) If the board, after a hearing, determines that the activities
in which the individual is engaged are subject to licensing under
this article, the board may issue a cease and desist order that
identifies the individual and describes activities that are the
subjects of the order.
(c) A cease and desist order issued under this section is
enforceable in circuit courts.
Sec. 5. (a) An individual who:
(1) performs or offers to perform home inspections without
being licensed as a home inspector or an associate home
inspector and without being exempt from licensing under law;
(2) presents as the individual's own the license of another;
(3) intentionally gives false or materially misleading
information to the board or to a board member in connection
with licensing matters;
(4) impersonates another licensee;
(5) uses an expired, suspended, revoked, or otherwise
restricted license; or
(6) otherwise violates this article;
commits a Class B infraction.
(b) When entering a judgment for an infraction under this
section, the court shall add to any penalty imposed the amount of
any fee or other compensation earned by the individual in the
commission of the infraction.
(c) Each transaction involving activities defined by this article
constitutes a separate violation of this section.
Sec. 6. In all actions for the collection of a fee or other
compensation for performing home inspections, the party seeking
relief must allege and prove that, at the time the cause of action
arose, the party seeking relief was not in violation of section 5 of
this chapter.
Sec. 7. An individual who applies for a license or a licensee who
is aggrieved by an order or determination of the board is entitled
to a judicial review under IC 4-21.5.
Sec. 8. The attorney general shall act as the legal adviser for the
board and provide any legal assistance necessary to carry out this
article.
Chapter 9. Liability and Immunity From Liability
Sec. 1. (a) An action for damages, whether brought in contract
or tort or on any other basis, based upon professional services that
were rendered or that should have been rendered by a licensed
home inspector or a licensed associate home inspector, may not be
brought, commenced, or maintained unless the action is filed not
more than two (2) years after the date of the alleged act or
omission.
(b) A licensed home inspector or a licensed associate home
inspector is not liable to a person for damages that arise from an
act or omission relating to a home inspection if the person is not a
party to the contract under which the home inspection is
conducted.
(c) A person who:
(1) is a professional licensed in Indiana;
(2) acts within the scope of the person's profession; and
(3) is not a licensed home inspector or a licensed associate
home inspector;
is not liable for the findings, errors, or omissions of a home
inspection unless the person has fraudulently provided or
concealed information that induced a licensed home inspector's or
a licensed associate home inspector's finding, error, or omission
that is the basis of the claim.
(d) A person who in good faith recommends or endorses a
licensed home inspector or a licensed associate home inspector
without compensation, remuneration, rebate, or other form of
consideration is not liable for the actions of the licensed home
inspector or licensed associate home inspector, including errors,
omissions, the failure to perform contracted duties of a home
inspection, or the failure to meet the standards of performance,
report writing standards, or code of ethics established by the
board.
Sec. 2. A licensed home inspector who acts as a supervising
inspector of:
(1) a licensed associate home inspector under
IC 25-20.2-5-3(b); or
(2) a licensed home inspector or licensed associate home
inspector placed on probation after a disciplinary proceeding
under IC 25-20.2-8-1;
and who does not charge a fee for acting as a supervising inspector
is not liable to any person for damages that arise from an act or
omission relating to a home inspection that the licensed home
inspector supervised.
SOURCE: IC 34-30-2-98.8; (03)HB1515.3.8. -->
SECTION 8. IC 34-30-2-98.8 IS ADDED TO THE INDIANA
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2003]: Sec. 98.8. IC 25-20.2-9-1 and
IC 25-20.2-9-2 (Concerning actions of home inspectors and
associate home inspectors).
SOURCE: ; (03)HB1515.3.9. -->
SECTION 9. [EFFECTIVE JULY 1, 2003]
(a) As used in this
SECTION, "board" refers to the home inspectors licensing board
established by IC 25-20.2-3-1, as added by this act.
(b) An individual who performs home inspections after June 30,
2003, does not violate IC 25-20.2-5-1 or IC 25-20.2-8-5(a)(1), both
as added by this act, and may not be disciplined or sanctioned for
failure to have a home inspector's or an associate home inspector's
license if the person obtains a home inspector's or an associate
home inspector's license not later than July 1, 2005.
(c) Notwithstanding the requirements of IC 25-20.2-5-2, as
added by this act, before July 1, 2005, the board may issue to an
individual, upon the individual's application and payment of fees,
a home inspector license, if the individual:
(1) meets the requirements of IC 25-20.2-5-2(a), as added by
this act, excluding IC 25-20.2-5-2(a)(1)(D),
IC 25-20.2-5-2(a)(1)(E), and IC 25-20.2-5-2(a)(3);
(2) has been engaged in the practice of home inspections for
at least six (6) months; and
(3) has performed at least the number of home inspections
required for licensure in Indiana.
(d) The board may consider and accept the successful
completion of equivalent licensing requirements in another state
instead of one (1) or more of the requirements of IC 25-20.2-5-2(a),
as added by this act.
(e) This SECTION expires January 1, 2006.
SOURCE: ; (03)HB1515.3.10. -->
SECTION 10. [EFFECTIVE UPON PASSAGE] (a) As used in this
SECTION, "board" refers to the home inspectors licensing board
established by IC 25-20.2-3-1, as added by this act.
(b) Before July 1, 2004, the governor shall make the initial
appointments to the board. In making each initial appointment, the
governor shall indicate the length of the term for which the
individual is appointed.
(c) Notwithstanding IC 25-20.2-3-3, as added by this act, the
initial terms of office for the seven (7) individuals appointed to the
board by the governor are as follows:
(1) Three (3) members for a term of three (3) years;
(2) Two (2) members for a term of two (2) years; and
(3) Two (2) members for a term of one (1) year.
(d) The initial terms begin July 1, 2004.
(e) An individual who does not meet all of the requirements of
IC 25-20.2-5-2(a)(1), as added by this act, may be appointed to the
board under IC 25-20.2-3-2(a)(1), as added by this act, if the
individual:
(1) meets the requirements of IC 25-20.2-5-2(a)(1)(A) through
IC 25-20.2-5-2(a)(1)(C), as added by this act;
(2) has been performing home inspections for at least six (6)
months immediately before the person's appointment;
(3) has performed at least the number of home inspections
required for licensure in Indiana; and
(4) intends to obtain a license in accordance with
IC 25-20.2-5-2, as added by this act, not later than July 1,
2005.
(f) A board member appointed in accordance with subsection (e)
who does not obtain the requisite license in accordance with
IC 25-20.2-5-2, as added by this act, on or before July 1, 2005, shall
be considered to have resigned from the board on July 1, 2005, and
the governor shall fill the vacancy in accordance with
IC 25-20.2-3-3(c), as added by this act.
(g) Not later than January 1, 2005, the board shall adopt rules
under IC 4-22-2 to carry out this act.
(h) This SECTION expires June 30, 2007.
SOURCE: ; (03)HB1515.3.11. -->
SECTION 11.
An emergency is declared for this act.