PRINTER'S NO. 1615
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1196
Session of
2024
INTRODUCED BY FARRY AND FONTANA, MAY 17, 2024
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MAY 17, 2024
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
 1 licensure of home inspectors; specifying requirements for
2 certification and licensure; providing for sanctions and
3 penalties; and making an appropriation.
4 Section 2. Section 2 of the act is amended by adding
5 definitions to read:
6 Section 2. Definitions.
7 The following words and phrases when used in this act shall
8 have the meanings given to them in this section unless the
9 context clearly indicates otherwise:
10 * * *
11 "Client." When the term is applied to a home inspector, a
12 person or person acting through a legal representative who
13 contracts with a licensed home inspector to obtain a home
14 inspection and subsequent written home inspection report.
15 "Home inspection." A noninvasive visual examination of the
16 systems and essential components of a residential dwelling
17 designed to identify material defects in those systems and
18 components and performed for a fee in connection with or
19 preparation for a proposed or possible residential real estate
20 transfer. The term:
21 (1) Includes a consultation regarding the property that
22 is represented to be a home inspection or that is described
23 by a confusingly similar term.
24 (2) Does not include any of the following:
25 (i) An examination of a single system or component
26 of a residential dwelling, such as an electrical or
27 plumbing system or roof.
28 (ii) An examination that is limited to inspection
29 for or of one or more of the following:
30 (A) Wood destroying insects.
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 1 (B) Underground tanks and wells.
2 (C) Septic systems.
3 (D) Swimming pools and spas.
4 (E) Alarm and smart home systems.
5 (F) Air and water quality.
6 (G) Tennis courts and playground equipment.
7 (H) Pollutants, toxic chemicals and
8 environmental hazards.
9 (iii) An examination associated with moving into or
10 out of a leased home.
11 "Home inspection report." A typewritten report on the
12 results of a home inspection.
13 "Home inspector." An individual licensed by the State Board
14 of Certified Real Estate Appraisers to perform home inspections.
15 The term does not include an individual licensed under any of
16 the following laws when acting under the individual's
17 registration or license:
18 (1) The act of May 23, 1945 (P.L.913, No.367), known as
19 the Engineer, Land Surveyor and Geologist Registration Law,
20 as to professional engineers, professional land surveyors and
21 professional geologists.
22 (2) The act of January 24, 1966 (1965 P.L.1535, No.537),
23 known as the Pennsylvania Sewage Facilities Act.
24 (3) The act of March 1, 1974 (P.L.90, No.24), known as
25 the Pennsylvania Pesticide Control Act of 1973.
26 (4) The act of December 14, 1982 (P.L.1227, No.281),
27 known as the Architects Licensure Law.
28 (5) The act of July 9, 1987 (P.L.238, No.43), known as
29 the Radon Certification Act.
30 "Home inspector-in-training." A candidate for licensure as a
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 1 home inspector who has been granted a registration as a home
2 inspector-in-training.
3 "Material defect." A problem with a residential real
4 property or any portion of it that would have a significant
5 adverse impact on the value of the property or that involves an
6 unreasonable risk to people on the property. The fact that an
7 essential component, system or subsystem is near, at or beyond
8 the end of its normal useful life is not by itself a material
9 defect.
10 * * *
11 Section 3. Section 4(a), (b), (c.1) and (k) of the act are
12 amended and the section is amended by adding a subsection to
13 read:
14 Section 4. State Board of Certified Real Estate Appraisers.
15 (a) Creation.--There is hereby created the State Board of
16 Certified Real Estate Appraisers as a departmental
17 administrative board in the Department of State. The board shall
18 consist of the following members:
19 (1) The Secretary of the Commonwealth or a designee.
20 (2) The Attorney General or a designee.
21 (3) The Secretary of Banking or a designee.
22 (4) [Ten members who are citizens of the United States
23 and who have been residents of this Commonwealth for a two-
24 year period immediately prior to appointment. Six of the
25 members shall be State-certified real estate appraisers, two
26 of the members shall be certified Pennsylvania evaluators and
27 two of the members shall be public members. Nothing in this
28 paragraph shall prohibit the appointment of a professional
29 member who is a certified Pennsylvania evaluator and also a
30 State-certified real estate appraiser, except that the
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 1 appointment shall specify in which capacity the member is
2 being appointed.] Fourteen members who are citizens of the
3 United States and who have been residents of this
4 Commonwealth for a two-year period immediately prior to
5 appointment. Eight of the members shall be State-certified
6 real estate appraisers, two of the members shall be certified
7 Pennsylvania evaluators, two of the members shall be
8 qualified home inspectors and two of the members shall be
9 public members. If a member is qualified in more than one
10 profession specified in this paragraph, the appointment shall
11 specify in which capacity the member is being appointed.
12 (b) Term of office.--The professional and public members
13 shall serve four-year terms, except as provided in subsection
14 (c) or [(c.1)] (c.2), and shall be appointed by the Governor by
15 and with the advice and consent of a majority of the members
16 elected to the Senate.
17 * * *
18 [(c.1) Initial appointments of certified Pennsylvania
19 evaluators.--Within 90 days of the effective date of this
20 subsection, the Governor shall nominate one certified
21 Pennsylvania evaluator to serve a two-year term and one
22 certified Pennsylvania evaluator to serve a four-year term.]
23 (c.2) Appointments of certified Pennsylvania evaluators and
24 qualified home inspectors.--Within 90 days of the effective date
25 of this subsection, the Governor shall nominate one certified
26 Pennsylvania evaluator and one qualified home inspector to serve
27 a two-year term and one certified Pennsylvania evaluator and one
28 qualified home inspector to serve a four-year term.
29 * * *
30 (k) Notice.--Reasonable notice of all meetings shall be
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 1 given in conformity with [the act of July 3, 1986 (P.L.388,
2 No.84), known as the Sunshine Act] 65 Pa.C.S. Ch. 7 (relating to
3 open meetings).
4 * * *
5 Section 4. Sections 5(1), (3) and (6) and 6 heading of the
6 act are amended to read:
7 Section 5. Powers and duties of board.
8 The board shall have the following powers and duties:
9 (1) To pass upon the qualifications and fitness of
10 applicants for certification or licensure and to adopt and
11 revise rules and regulations requiring applicants for
12 registration, certification or licensure to pass examinations
13 relating to their qualifications for registration,
14 certification or licensure.
15 * * *
16 (3) To examine for, deny, approve, issue, revoke,
17 suspend or renew certificates of appraisers, registrations of
18 home inspectors-in-training and licenses of appraiser
19 trainees and home inspectors pursuant to this act and to
20 conduct hearings in connection therewith.
21 * * *
22 (6) To establish fees for the operation of the board,
23 including fees for the issuance and renewal of registrations,
24 certificates and licenses and for examinations.
25 * * *
26 Section 6. Application and qualifications of certified real
27 estate appraisers.
28 * * *
29 Section 5. The act is amended by adding sections to read:
30 Section 6.1. Application and qualifications of home inspectors
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 1 and home inspectors-in-training.
2 (a) Qualifications.--An applicant shall be considered to be
3 qualified for a license as a home inspector if the applicant
4 submits proof satisfactory to the board of all of the following:
5 (1) The applicant is of a good moral character. In
6 assessing the moral character of an applicant with a criminal
7 conviction, the board shall conduct an individualized
8 assessment in accordance with 63 Pa.C.S. § 3113 (relating to
9 consideration of criminal convictions).
10 (2) The applicant is at least 18 years of age.
11 (3) The applicant has a high school diploma or its
12 equivalent or equivalent life or occupational experience.
13 (4) The applicant:
14 (i) has completed no less than 80 hours of board-
15 approved instruction;
16 (ii) is registered as a home inspector-in-training;
17 and
18 (iii) has completed no less than 50 mentored home
19 inspections completed in the presence and under the
20 direct supervision of a home inspector licensed in this
21 Commonwealth. A home inspection report prepared by a home
22 inspector-in-training shall be used for training purposes
23 only and may not be provided to a client.
24 (5) The applicant has passed a psychometrically valid
25 licensing examination, which has been board-approved and
26 documented as psychometrically valid, to be administered
27 pursuant to section 812.1 of the act of April 9, 1929
28 (P.L.177, No.175), known as The Administrative Code of 1929.
29 (6) The application is accompanied by the application
30 fee as established by the board by regulation.
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 1 (7) The applicant is not addicted to the habitual use of
2 alcohol, narcotics or other habit-forming drugs.
3 (8) There is no criminal history which would impede the
4 applicant's eligibility, determined by the board based on the
5 applicant's submission of the following:
6 (i) A report of the applicant's criminal history
7 record information under 18 Pa.C.S. § 9121(b) (relating
8 to general regulations).
9 (ii) If the applicant has resided outside this
10 Commonwealth for any time in the five years immediately
11 preceding the date of application, a report to the board
12 of Federal criminal identification and crime records
13 under 28 U.S.C. § 534(a)(4) (relating to acquisition,
14 preservation, and exchange of identification records and
15 information; appointment of officials).
16 (b) Issuance of license.--The board shall issue a license as
17 a home inspector to an applicant who applies within two years of
18 the effective date of this subsection and complies with all of
19 the following:
20 (1) Is an active home inspector.
21 (2) Meets the qualifications described in subsection (a)
22 (2), (3), (6), (7) and (8).
23 (3) Submits proof satisfactory to the board that the
24 applicant has:
25 (i) been in active, continuous practice for at least
26 five years immediately preceding the effective date of
27 this section; or
28 (ii) performed or participated in 100 home
29 inspections and has passed a recognized or accredited
30 examination testing knowledge of the proper procedures
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 1 for conducting a home inspection.
2 (c) Practice of home inspection.--An individual may not
3 practice home inspection or hold himself out as a home inspector
4 unless licensed by the board except for the following:
5 (1) An individual licensed as a professional engineer
6 under the act of May 23, 1945 (P.L.913, No.367), known as the
7 Engineer, Land Surveyor and Geologist Registration Law.
8 (2) An individual licensed under the act of December 14,
9 1982 (P.L.1227, No.281), known as the Architects Licensure
10 Law.
11 (3) A home inspector-in-training practicing home
12 inspection in the presence and under the direct supervision
13 of a home inspector licensed in this Commonwealth, provided
14 the home inspector-in-training does not hold himself out as a
15 home inspector.
16 (d) Compliance.--Notwithstanding subsection (c), a person
17 licensed or registered as a professional engineer under the
18 Engineer, Land Surveyor and Geologist Registration Law, or a
19 person licensed or registered under the Architects Licensure
20 Law, must comply with subsection (i) and sections 6.2, 17.1,
21 17.2 and 17.3 when performing a home inspection. A person
22 licensed or registered as a professional engineer, or licensed
23 or registered as an architect, who violates this subsection
24 shall be subject to disciplinary action, including license or
25 registration suspension and revocation, and penalties under the
26 Engineer, Land Surveyor and Geologist Registration Law and the
27 Architects Licensure Law, respectively.
28 (e) Use of title.--An individual who holds a license or is
29 maintained on inactive status may use the title "Licensed Home
30 Inspector" and the abbreviation "L.H.I." No other individual may
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 1 use the title "Licensed Home Inspector" or the title "Home
2 Inspector" or hold himself out to others as a home inspector.
3 This subsection includes advertising as a home inspector and
4 adopting or using a title or description, or a derivative of
5 "Licensed Home Inspector" or "Home Inspector" and their related
6 abbreviations, which implies directly or indirectly that home
7 inspection services are being provided.
8 (f) Nontransferability of license.--A license under this
9 section is not transferable.
10 (g) Examination not required.--The board may issue a home
11 inspector license without examination to an applicant holding a
12 home inspector license in another state who submits proof
13 satisfactory to the board of all of the following:
14 (1) The applicant is of a good moral character. In
15 assessing the moral character of an applicant with a criminal
16 conviction, the board shall conduct an individualized
17 assessment in accordance with 63 Pa.C.S. § 3113.
18 (2) The applicant holds an unrestricted and active home
19 inspector license from another state whose licensure
20 requirements are substantially equivalent to the requirements
21 for licensure in this Commonwealth.
22 (3) The applicant has submitted an application
23 accompanied by the application fee.
24 (4) There is no criminal history which would impede the
25 applicant's eligibility, determined by the board based on the
26 appli