HOUSE BILL NO. 1832 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE VIOLET.
3910H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 339, RSMo, by adding thereto fourteen new sections relating to the licensing of home inspectors, with penalty provisions and a delayed effective date.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 339, RSMo, is amended by adding thereto fourteen new sections, 2 to be known as sections 339.900, 339.903, 339.906, 339.909, 339.912, 339.915, 339.918, 3 339.921, 339.924, 339.927, 339.930, 339.933, 339.936, and 339.939, to read as follows: 339.900. As used in sections 339.900 to 339.939, the following terms mean: 2 (1) "Apprentice home inspector", an individual who desires to perform home 3 inspections as an apprentice and complies with the apprenticeship rules established by 4 the board; 5 (2) "Board", the Missouri home inspectors board; 6 (3) "Component", a part of a system, as defined in this section; 7 (4) "Division", the division of professional registration; 8 (5) "Home inspection", the process by which a home inspector, for payment, 9 visually examines the readily accessible systems and components of a residential 10 building and describes such systems in writing in accordance with the standards of 11 practice established by the board; 12 (6) "Home inspection report", a written report on the home inspection to 13 standards defined by the board; 14 (7) "Home inspector", an individual who is retained to perform a home 15 inspection for compensation;
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 1832 2
16 (8) "Home inspector apprentice supervisor", an individual who is a licensed 17 home inspector and is approved by the board to supervise home inspector apprentices; 18 (9) "Readily accessible", available for visual inspection without requiring the 19 movement of personal property, dismantling, destructive measures, or any action that in 20 the opinion of the home inspector would likely involve risk of injury to the state-licensed 21 home inspector, another person, or property; 22 (10) "Residential building", a structure of one to four dwelling units; 23 (11) "State-licensed home inspector", an individual licensed by the board under 24 sections 339.900 to 339.939; 25 (12) "System", a combination of interacting or interdependent components, as 26 defined by the board, assembled to carry out one or more functions. 339.903. 1. No person shall act as a home inspector, directly or indirectly engage 2 or assume to engage in the business of home inspection, or advertise or hold himself or 3 herself out as engaging in or conducting such business without first obtaining a license 4 issued by the board as provided in sections 339.900 to 339.939. 5 2. No license shall be issued under sections 339.900 to 339.939 to a partnership, 6 association, corporation, firm, limited liability company, or group. 7 3. Any person who is not a state-licensed home inspector under sections 339.900 8 to 339.939 may assist a state-licensed home inspector in the performance of a home 9 inspection, provided that the person is personally supervised by a state-licensed home 10 inspector and any home inspection report rendered in connection with the home 11 inspection is reviewed and signed by the state-licensed home inspector. 12 4. Sections 339.900 to 339.939 shall not be construed to require a license for: 13 (1) Any person, partnership, association, or corporation, or employee thereof, 14 who as owner performs inspections of residential property owned by such person, 15 partnership, association, or corporation; 16 (2) Any employee of a political subdivision, state, or federal agency who 17 performs inspection services within the scope of his or her employment; 18 (3) Any person providing the inspection of two or fewer of the following 19 components or systems in a residential building: heating system, cooling system, 20 electrical system, plumbing system, foundation, siding, roofing, masonry chimney, or the 21 structural frame or other essential components or systems of a residential dwelling; 22 (4) A real estate broker, real estate salesperson, real estate appraiser, architect, 23 or engineer acting within the scope of his or her license; 24 (5) Any person acting on behalf of the Federal Housing Administration (FHA) in 25 the capacity of an approved FHA fee inspector; HB 1832 3
26 (6) Any person employed by or acting on behalf of a licensed insurance company 27 doing business in this state; or 28 (7) Any person employed or retained by a residential home builder to inspect or 29 provide warranty services for such home builder with respect to any home built by such 30 builder. 31 5. A home inspection shall not be construed to include: 32 (1) A compliance inspection for any code or government regulation; or 33 (2) An examination for any of the following: 34 (a) The conditions and operation of kitchen-type appliances; laundry 35 equipment; onsite water supplies or wells; private waste systems; irrigation systems; 36 fire suppression systems; swimming pools and heaters; hot tubs, saunas, or spas; 37 exterior cooking equipment; and low-voltage systems; 38 (b) The determination of the presence of wood-destroying organisms or pests; 39 (c) The determination of the presence of fungi, mold, bacteria, asbestos, lead- 40 based paint, gases, or conditions of air quality; 41 (d) Acoustics; and 42 (e) Other components or conditions as identified by the board. 339.906. 1. There is hereby created within the division of professional 2 registration the "Missouri Home Inspectors Board", which shall consist of five members 3 appointed by the governor with the advice and consent of the senate. Each member 4 shall be a citizen of the United States, a resident of this state, and a registered voter for a 5 period of one year prior to the person's appointment. Four members shall be licensed 6 home inspectors, and one member shall be a public member. The public member or his 7 or her spouse shall have never been engaged in the business of home inspections, real 8 estate appraisal, real estate sales, or making loans secured by real estate. The board 9 shall elect from its membership a chair and vice chair, both of whom shall be elected at 10 the times and serve for the terms as are determined by the board. 11 2. The home inspector members initially appointed by the governor shall have 12 home inspection experience in the state of Missouri for not less than five years preceding 13 their initial appointment, have completed at least one thousand home inspections for 14 compensation, and be members in good standing of a nationally recognized home 15 inspector association requiring psychometrically valid and legally defensible 16 examination. The governor shall not exclude a state-licensed home inspector from 17 appointment as a successor inspector member of the board by virtue of membership or 18 lack of membership in any particular home inspector association. 19 3. Of the initial members appointed, two members shall be appointed for two- 20 year terms, two members for three-year terms, and one member for a four-year term. HB 1832 4
21 All successor members shall be appointed for four-year terms. All members shall serve 22 until their successors have been appointed and qualified. Vacancies occurring in the 23 membership of the board for any reason shall be filled by appointment by the governor 24 for the unexpired term. The governor may remove a member for cause. An executive 25 director for the board shall be employed by the division of professional registration. 26 4. The board shall meet at least once each year to conduct its business. The 27 board may hold such additional meetings as may be required in the performance of its 28 duties. A quorum of the board shall consist of a majority of its voting members. 29 5. Each member of the board shall be entitled to a per diem allowance of up to 30 seventy dollars for each meeting day or part of a day of the board at which the member 31 is present and shall be entitled to reimbursement of the member's actual and necessary 32 expenses incurred in the discharge of the member's official duties. 339.909. 1. The board shall have the following powers and duties and shall 2 adopt rules in accordance with the provisions of chapter 536 to establish: 3 (1) Qualifications for the licensing of home inspectors as the board deems 4 necessary for the public interest; 5 (2) Rules that prescribe and define the curriculum related to home inspection 6 that shall satisfy the qualification requirements for licensure; 7 (3) Approved courses of instruction that prescribe and define the curriculum 8 related to home inspection that shall satisfy the qualification requirements for licensure; 9 (4) Rules describing the minimum uniform standards of practice for a home 10 inspection; 11 (5) Rules establishing the criteria for the supervision and training of home 12 inspector apprentices; 13 (6) An application process and administrative procedures for processing 14 applications, issuing home inspector licenses, and conducting disciplinary proceedings 15 under the provisions of sections 339.900 to 339.939; 16 (7) Procedures by which the board may issue a license on a reciprocal basis with 17 other states without examination to a nonresident who is licensed or certified and in 18 good standing in another state under standards that are substantially equal to those 19 established by the board and in sections 339.900 to 339.939; 20 (8) Standards related to acceptable knowledge and competence necessary to 21 perform inspections of residential real estate as required by sections 339.900 to 339.939; 22 (9) Standards of professional and ethical conduct for home inspectors; 23 (10) Continuing education requirements for the renewal of licensure that shall 24 meet the requirements of sections 339.900 to 339.939; HB 1832 5
25 (11) Rules that define systems and items that are outside the scope of a home 26 inspection and that are not otherwise included in sections 339.900 to 339.939; and 27 (12) Reasonable rules as deemed necessary or desirable by the board to carry 28 out and enforce the provisions of sections 339.900 to 339.939. 29 2. The board: 30 (1) Shall prescribe the form and content of examinations to determine the 31 qualifications of persons who apply for licenses to engage in home inspection; 32 (2) Shall establish a list of approved education program providers and may 33 approve courses of instruction in an accredited college or university related to the 34 inspection of homes and such other areas deemed relevant by the board; 35 (3) May contract with a testing service to provide and conduct such 36 examinations; 37 (4) Shall have authority to determine who meets the criteria for licensure; 38 (5) Shall investigate to verify an applicant's qualifications. If the results of the 39 investigation are satisfactory to the board and the applicant is otherwise qualified, the 40 board shall issue to the applicant a license authorizing the applicant to act as a state- 41 licensed home inspector in Missouri; 42 (6) Shall set the amount of fees authorized by sections 339.900 to 339.939 and 43 required by rules promulgated under section 536.021. The fees shall be set at a level to 44 produce revenue that does not substantially exceed the cost and expense of 45 administering sections 339.900 to 339.939; and 46 (7) Shall perform such other functions and duties as may be necessary to carry 47 out the provisions of sections 339.900 to 339.939. 48 3. Any rule or portion of a rule, as that term is defined in section 536.010, that is 49 created under the authority delegated in this section shall become effective only if it 50 complies with and is subject to all of the provisions of chapter 536 and, if applicable, 51 section 536.028. This section and chapter 536 are nonseverable and if any of the powers 52 vested with the general assembly pursuant to chapter 536 to review, to delay the 53 effective date, or to disapprove and annul a rule are subsequently held unconstitutional, 54 then the grant of rulemaking authority and any rule proposed or adopted after January 55 1, 2027, shall be invalid and void. 339.912. 1. There is hereby created in the state treasury the "Missouri Home 2 Inspectors Fund", which shall consist of moneys collected under sections 339.900 to 3 339.939. The state treasurer shall be custodian of the fund. In accordance with sections 4 30.170 and 30.180, the state treasurer may approve disbursements. The fund shall be a 5 dedicated fund and, upon appropriation, moneys in this fund shall be used solely for the 6 administration of sections 339.900 to 339.939. HB 1832 6
7 2. Notwithstanding the provisions of section 33.080 to the contrary, any moneys 8 remaining in the fund at the end of the biennium shall not revert to the credit of the 9 general revenue fund until the amount in the fund at the end of the biennium exceeds 10 either two times the amount of the appropriation from the board's funds for the 11 preceding fiscal year or, if the board requires by rule license renewal less frequently 12 than yearly, three times the appropriation from the board's fund for the preceding fiscal 13 year. The amount, if any, in the fund that shall lapse is that amount in the fund that 14 exceeds the appropriate multiple of the appropriations from the board's funds for the 15 preceding fiscal year. 16 3. The state treasurer shall invest moneys in the fund in the same manner as 17 other funds are invested. Any interest and moneys earned on such investments shall be 18 credited to the fund. 339.915. 1. Applications for licensure as a home inspector shall be submitted to 2 the board on forms prescribed by the board and furnished to the applicant. The 3 application shall contain the applicant's statements showing the applicant's education, 4 experience, and such other information as the board may require. Each application 5 shall contain a statement that it is made under oath or affirmation and that the 6 information contained therein is true and correct to the best knowledge and belief of the 7 applicant, subject to the penalties provided for making a false affidavit or declaration. 8 Each application shall be accompanied by the fees required by the board. 9 2. Each applicant for licensure shall: 10 (1) Demonstrate the knowledge and competence necessary to perform 11 inspections of residential real estate as prescribed by rule; 12 (2) Be of good moral character; 13 (3) Have successfully completed a board-approved training program of at least 14 eighty classroom hours, a board-approved apprenticeship program, or a board- 15 approved program consisting of a combination of classroom hours and apprenticeship 16 field training hours; 17 (4) Have passed an examination approved by the board; and 18 (5) Pay the appropriate fee set by the board. 19 3. If an applicant is not licensed within three years after passing an examination 20 given under sections 339.900 to 339.939, the applicant shall be required to retake the 21 examination prior to state licensure. 22 4. An applicant who fails an examination taken under sections 339.900 to 23 339.939 may apply for reexamination as specified by board rule. 339.918. 1. Any person desiring to practice as an apprentice home inspector in 2 this state shall apply to the board, pay the appropriate fee, and comply with the HB 1832 7
3 apprenticeship rules established by the board. A home inspector apprentice license 4 shall be issued by the board before the person begins the apprenticeship program. To 5 satisfy requirements for licensure, the apprentice home inspector shall complete fifty 6 home inspections under the direct supervision of a licensed home inspector apprentice 7 supervisor and comply with other criteria determined by the board. 8 2. Any person desiring to act as a home inspector apprentice supervisor shall 9 have completed five hundred inspections for compensation, hold a current license with 10 the board, apply to the board for approval and receive a supervisor license, and pay the 11 appropriate fee. A home inspector apprentice supervisor license is required before 12 supervising apprentice home inspectors. 339.921. 1. The division shall mail a renewal notice to the last known address of 2 each licensee before the renewal date. Failure to provide the board with the information 3 required for renewal or to pay the renewal fee after such notice shall result in the license 4 expiring. The license shall be reinstated if, within two years of the renewal date, the 5 applicant submits the required documentation and pays the applicable fees as approved 6 by the board. 7 2. A new license to replace any lost, destroyed, or mutilated license may be 8 issued subject to the rules of the board. 9 3. The board is authorized to issue an inactive license to any licensee who applies 10 for such license on a form provided by the board and remits the fee for an inactive 11 license established by the board. An inactive license may be issued only to a person who 12 has previously been issued a license to practice as a home inspector in this state, who is 13 no longer regularly engaged in such practice, and who does not hold himself or herself 14 out to the public as being professionally engaged in such practice in this state. Each 15 inactive license shall be subject to all provisions of sections 339.900 to 339.939, except as 16 otherwise specifically provided. Each inactive license may be renewed by the board 17 subject to all provisions of this section and all other provisions of sections 339.900 to 18 339.939. An inactive licensee may apply for a license to regularly engage in the practice 19 of home inspection upon filing a written application on a form provided by the board, 20 submitting the reactivation fee established by the board, and submitting satisfactory 21 proof of current competency as established by the board. 339.924. 1. Each educational provider shall apply fo