PRINTER'S NO. 1608
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1428
Session of
2023
INTRODUCED BY O'NEAL, JUNE 20, 2023
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, JUNE 20, 2023
AN ACT
1 Amending the act of July 10, 1990 (P.L.404, No.98), entitled "An
2 act providing for the certification of real estate
3 appraisers; specifying requirements for certification;
4 providing for sanctions and penalties; and making an
5 appropriation," further providing for title of act, for
6 definitions, for State Board of Certified Real Estate
7 Appraisers, for powers and duties of board and for
8 application and qualifications; providing for application and
9 qualifications of home inspectors and home inspectors-in-
10 training and for conduct of home inspection; further
11 providing for reciprocity, for certification renewal,
12 licensure renewal and records, for disciplinary and
13 corrective measures, for reinstatement of certificate or
14 license, for reporting of multiple certification, for
15 surrender of suspended or revoked certificate or license, for
16 penalties and for injunctive relief; providing for remedies
17 for home inspection services consumers, for home inspection
18 contracts and for home inspection reports; and making a
19 repeal.
20 The General Assembly of the Commonwealth of Pennsylvania
21 hereby enacts as follows:
22 Section 1. The title of the act of July 10, 1990 (P.L.404,
23 No.98), known as the Real Estate Appraisers Certification Act,
24 is amended to read:
25 AN ACT
26 Providing for the certification of real estate appraisers and
27 licensure of home inspectors; specifying requirements for
 1 certification and licensure; providing for sanctions and
2 penalties; and making an appropriation.
3 Section 2. Section 2 of the act is amended by adding
4 definitions to read:
5 Section 2. Definitions.
6 The following words and phrases when used in this act shall
7 have the meanings given to them in this section unless the
8 context clearly indicates otherwise:
9 * * *
10 "Client." When the term is applied to a home inspector, a
11 person or person acting through a legal representative who
12 contracts with a licensed home inspector to obtain a home
13 inspection and subsequent written home inspection report.
14 "Home inspection." A noninvasive visual examination of the
15 systems and essential components of a residential dwelling
16 designed to identify material defects in those systems and
17 components and performed for a fee in connection with or
18 preparation for a proposed or possible residential real estate
19 transfer. The term:
20 (1) Includes a consultation regarding the property that
21 is represented to be a home inspection or that is described
22 by a confusingly similar term.
23 (2) Does not include any of the following:
24 (i) An examination of a single system or component
25 of a residential dwelling, such as an electrical or
26 plumbing system or roof.
27 (ii) An examination that is limited to inspection
28 for or of one or more of the following:
29 (A) Wood destroying insects.
30 (B) Underground tanks and wells.
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 1 (C) Septic systems.
2 (D) Swimming pools and spas.
3 (E) Alarm and smart home systems.
4 (F) Air and water quality.
5 (G) Tennis courts and playground equipment.
6 (H) Pollutants, toxic chemicals and
7 environmental hazards.
8 (iii) An examination associated with moving into or
9 out of a leased home.
10 "Home inspection report." A typewritten report on the
11 results of a home inspection.
12 "Home inspector." An individual licensed by the State Board
13 of Certified Real Estate Appraisers to perform home inspections.
14 The term does not include an individual licensed under any of
15 the following laws when acting under the individual's
16 registration or license:
17 (1) The act of May 23, 1945 (P.L.913, No.367), known as
18 the Engineer, Land Surveyor and Geologist Registration Law,
19 as to professional engineers, professional land surveyors and
20 professional geologists.
21 (2) The act of January 24, 1966 (1965 P.L.1535, No.537),
22 known as the Pennsylvania Sewage Facilities Act.
23 (3) The act of March 1, 1974 (P.L.90, No.24), known as
24 the Pennsylvania Pesticide Control Act of 1973.
25 (4) The act of December 14, 1982 (P.L.1227, No.281),
26 known as the Architects Licensure Law.
27 (5) The act of July 9, 1987 (P.L.238, No.43), known as
28 the Radon Certification Act.
29 "Home inspector-in-training." A candidate for licensure as a
30 home inspector who has been granted a registration as a home
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 1 inspector-in-training.
2 "Material defect." A problem with a residential real
3 property or any portion of it that would have a significant
4 adverse impact on the value of the property or that involves an
5 unreasonable risk to people on the property. The fact that an
6 essential component, system or subsystem is near, at or beyond
7 the end of its normal useful life is not by itself a material
8 defect.
9 * * *
10 Section 3. Section 4(a), (b), (c.1) and (k) of the act are
11 amended and the section is amended by adding a subsection to
12 read:
13 Section 4. State Board of Certified Real Estate Appraisers.
14 (a) Creation.--There is hereby created the State Board of
15 Certified Real Estate Appraisers as a departmental
16 administrative board in the Department of State. The board shall
17 consist of the following members:
18 (1) The Secretary of the Commonwealth or a designee.
19 (2) The Attorney General or a designee.
20 (3) The Secretary of Banking or a designee.
21 (4) [Ten members who are citizens of the United States
22 and who have been residents of this Commonwealth for a two-
23 year period immediately prior to appointment. Six of the
24 members shall be State-certified real estate appraisers, two
25 of the members shall be certified Pennsylvania evaluators and
26 two of the members shall be public members. Nothing in this
27 paragraph shall prohibit the appointment of a professional
28 member who is a certified Pennsylvania evaluator and also a
29 State-certified real estate appraiser, except that the
30 appointment shall specify in which capacity the member is
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 1 being appointed.] Fourteen members who are citizens of the
2 United States and who have been residents of this
3 Commonwealth for a two-year period immediately prior to
4 appointment. Eight of the members shall be State-certified
5 real estate appraisers, two of the members shall be certified
6 Pennsylvania evaluators, two of the members shall be
7 qualified home inspectors and two of the members shall be
8 public members. If a member is qualified in more than one
9 profession specified in this paragraph, the appointment shall
10 specify in which capacity the member is being appointed.
11 (b) Term of office.--The professional and public members
12 shall serve four-year terms, except as provided in subsection
13 (c) or [(c.1)] (c.2), and shall be appointed by the Governor by
14 and with the advice and consent of a majority of the members
15 elected to the Senate.
16 * * *
17 [(c.1) Initial appointments of certified Pennsylvania
18 evaluators.--Within 90 days of the effective date of this
19 subsection, the Governor shall nominate one certified
20 Pennsylvania evaluator to serve a two-year term and one
21 certified Pennsylvania evaluator to serve a four-year term.]
22 (c.2) Appointments of certified Pennsylvania evaluators and
23 qualified home inspectors.--Within 90 days of the effective date
24 of this subsection, the Governor shall nominate one certified
25 Pennsylvania evaluator and one qualified home inspector to serve
26 a two-year term and one certified Pennsylvania evaluator and one
27 qualified home inspector to serve a four-year term.
28 * * *
29 (k) Notice.--Reasonable notice of all meetings shall be
30 given in conformity with [the act of July 3, 1986 (P.L.388,
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 1 No.84), known as the Sunshine Act] 65 Pa.C.S. Ch. 7 (relating to
2 open meetings).
3 * * *
4 Section 4. Sections 5(1), (3) and (6) and 6 heading of the
5 act are amended to read:
6 Section 5. Powers and duties of board.
7 The board shall have the following powers and duties:
8 (1) To pass upon the qualifications and fitness of
9 applicants for certification or licensure and to adopt and
10 revise rules and regulations requiring applicants for
11 registration, certification or licensure to pass examinations
12 relating to their qualifications for registration,
13 certification or licensure.
14 * * *
15 (3) To examine for, deny, approve, issue, revoke,
16 suspend or renew certificates of appraisers, registrations of
17 home inspectors-in-training and licenses of appraiser
18 trainees and home inspectors pursuant to this act and to
19 conduct hearings in connection therewith.
20 * * *
21 (6) To establish fees for the operation of the board,
22 including fees for the issuance and renewal of registrations,
23 certificates and licenses and for examinations.
24 * * *
25 Section 6. Application and qualifications of certified real
26 estate appraisers.
27 * * *
28 Section 5. The act is amended by adding sections to read:
29 Section 6.1. Application and qualifications of home inspectors
30 and home inspectors-in-training.
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 1 (a) Qualifications.--An applicant shall be considered to be
2 qualified for a license as a home inspector if the applicant
3 submits proof satisfactory to the board of all of the following:
4 (1) The applicant is of a good moral character. In
5 assessing the moral character of an applicant with a criminal
6 conviction, the board shall conduct an individualized
7 assessment in accordance with 63 Pa.C.S. § 3113 (relating to
8 consideration of criminal convictions).
9 (2) The applicant is at least 18 years of age.
10 (3) The applicant has a high school diploma or its
11 equivalent or equivalent life or occupational experience.
12 (4) The applicant:
13 (i) has completed no less than 80 hours of board-
14 approved instruction;
15 (ii) is registered as a home inspector-in-training;
16 and
17 (iii) has completed no less than 50 mentored home
18 inspections completed in the presence and under the
19 direct supervision of a home inspector licensed in this
20 Commonwealth. A home inspection report prepared by a home
21 inspector-in-training shall be used for training purposes
22 only and may not be provided to a client.
23 (5) The applicant has passed a psychometrically valid
24 licensing examination, which has been board-approved and
25 documented as psychometrically valid, to be administered
26 pursuant to section 812.1 of the act of April 9, 1929
27 (P.L.177, No.175), known as The Administrative Code of 1929.
28 (6) The application is accompanied by the application
29 fee as established by the board by regulation.
30 (7) The applicant is not addicted to the habitual use of
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 1 alcohol, narcotics or other habit-forming drugs.
2 (8) There is no criminal history which would impede the
3 applicant's eligibility, determined by the board based on the
4 applicant's submission of the following:
5 (i) A report of the applicant's criminal history
6 record information under 18 Pa.C.S. § 9121(b) (relating
7 to general regulations).
8 (ii) If the applicant has resided outside this
9 Commonwealth for any time in the five years immediately
10 preceding the date of application, a report to the board
11 of Federal criminal identification and crime records
12 under 28 U.S.C. § 534(a)(4) (relating to acquisition,
13 preservation, and exchange of identification records and
14 information; appointment of officials).
15 (b) Issuance of license.--The board shall issue a license as
16 a home inspector to an applicant who applies within two years of
17 the effective date of this subsection and complies with all of
18 the following:
19 (1) Is an active home inspector.
20 (2) Meets the qualifications described in subsection (a)
21 (2), (3), (6), (7) and (8).
22 (3) Submits proof satisfactory to the board that the
23 applicant has:
24 (i) been in active, continuous practice for at least
25 five years immediately preceding the effective date of
26 this section; or
27 (ii) performed or participated in 100 home
28 inspections and has passed a recognized or accredited
29 examination testing knowledge of the proper procedures
30 for conducting a home inspection.
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 1 (c) Practice of home inspection.--An individual may not
2 practice home inspection or hold himself out as a home inspector
3 unless licensed by the board except for the following:
4 (1) An individual licensed as a professional engineer
5 under the act of May 23, 1945 (P.L.913, No.367), known as the
6 Engineer, Land Surveyor and Geologist Registration Law.
7 (2) An individual licensed under the act of December 14,
8 1982 (P.L.1227, No.281), known as the Architects Licensure
9 Law.
10 (3) A home inspector-in-training practicing home
11 inspection in the presence and under the direct supervision
12 of a home inspector licensed in this Commonwealth, provided
13 the home inspector-in-training does not hold himself out as a
14 home inspector.
15 (d) Compliance.--Notwithstanding subsection (c), a person
16 licensed or registered as a professional engineer under the
17 Engineer, Land Surveyor and Geologist Registration Law, or a
18 person licensed or registered under the Architects Licensure
19 Law, must comply with subsection (i) and sections 6.2, 17.1,
20 17.2 and 17.3 when performing a home inspection. A person
21 licensed or registered as a professional engineer, or licensed
22 or registered as an architect, who violates this subsection
23 shall be subject to disciplinary action, including license or
24 registration suspension and revocation, and penalties under the
25 Engineer, Land Surveyor and Geologist Registration Law and the
26 Architects Licensure Law, respectively.
27 (e) Use of title.--An individual who holds a license or is
28 maintained on inactive status may use the title "Licensed Home
29 Inspector" and the abbreviation "L.H.I." No other individual may
30 use the title "Licensed Home Inspector" or the title "Home
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 1 Inspector" or hold himself out to others as a home inspector.
2 This subsection includes advertising as a home inspector and
3 adopting or using a title or description, or a derivative of
4 "Licensed Home Inspector" or "Home Inspector" and their related
5 abbreviations, which implies directly or indirectly that home
6 inspection services are being provided.
7 (f) Nontransferability of license.--A license under this
8 section is not transferable.
9 (g) Examination not required.--The board may issue a home
10 inspector license without examination to an applicant holding a
11 home inspector license in another state who submits proof
12 satisfactory to the board of all of the following:
13 (1) The applicant is of a good moral character. In
14 assessing the moral character of an applicant with a criminal
15 conviction, the board shall conduct an individualized
16 assessment in accordance with 63 Pa.C.S. § 3113.
17 (2) The applicant holds an unrestricted and active home
18 inspector license from another state whose licensure
19 requirements are substantially equivalent to the requirements
20 for licensure in this Commonwealth.
21 (3) The applicant has submitted an application
22 accompanied by the application fee.
23 (4) There is no criminal history which would impede the
24 applicant's eligibility, determined by the board based on the
25 applicant's submission of the followin