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91_HB0757ham001
LRB9103853LDdvam01
1 AMENDMENT TO HOUSE BILL 757
2 AMENDMENT NO. . Amend House Bill 757 on page 1, by
3 inserting the following immediately after line 5:
4 "Section 5. Legislative intent. It is the intent of
5 the legislature that this Act provide for the licensing and
6 regulation of home inspectors thereby to protect the public.
7 Section 10. Definitions. As used in this Act:
8 "Client" means any person who engages or seeks to engage
9 the services of a home inspector for the purpose of obtaining
10 an inspection of and written report on the conditions of a
11 residential building.
12 "Commissioner" means the Commissioner of Banks and Real
13 Estate.
14 "Home inspection" means an inspection of the following
15 components of a residential building: heating system, cooling
16 system, plumbing system, electrical system, structural
17 composition, foundation, roof, masonry structure, exterior
18 and interior components, or any other related residential
19 building component as determined by the OBRE by rule.
20 "Home inspection report" means a written evaluation
21 prepared and issued upon completion of a home inspection
22 which meets standards set by OBRE by rule.
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1 "Home inspector" means any person licensed as a home
2 inspector pursuant to the provisions of this Act.
3 "OBRE" means the Office of Banks and Real Estate.
4 "Residential building" means a structure intended to be
5 or that is in fact used as a residence and consisting of one
6 to 4 family dwelling units.
7 Section 15. Administration of the Act. This Act shall
8 be administered and enforced by the OBRE, which shall have
9 the duties and powers to:
10 (1) issue and renew licenses to home inspectors;
11 (2) suspend, revoke, or deny renewal of a license of a
12 home inspector;
13 (3) prescribe and adopt regulations, standards,
14 procedures and policies governing the manner and conditions
15 under which credit shall be given for pre-license and
16 continuing education courses;
17 (4) report to the Attorney General of Illinois all
18 persons violating the provisions of this Act;
19 (5) develop and adopt a licensing examination to
20 determine the knowledge of an applicant of the home inspector
21 profession;
22 (6) develop the application and license forms and set
23 any rules necessary to carry out the provisions of this Act;
24 and
25 (7) impose fees and fines, which shall be paid to the
26 OBRE and deposited into the General Revenue Fund.
27 Section 20. Application for license; examination
28 requirements.
29 (a) An application for an original license shall be made
30 in writing to the OBRE and shall be accompanied by the
31 required fee and proof of liability insurance and errors and
32 omissions insurance.
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1 (b) To qualify for a license under this Act, a person
2 shall:
3 (1) be of good moral character;
4 (2) have successfully completed high school or its
5 equivalent;
6 (3) be at least 21 years of age;
7 (4) have successfully completed an approved course
8 of study of at least 20 hours as prescribed by the OBRE;
9 and
10 (5) have passed an examination as prescribed by the
11 OBRE.
12 Section 25. Insurance.
13 (a) All home inspectors are required to carry general
14 liability insurance and errors and omissions insurance.
15 (b) Such policy and certificates shall provide that
16 cancellation or non-renewal of the policy shall not be
17 effective unless and until at least 10 days notice of
18 cancellation or non-renewal has been received in writing by
19 the OBRE.
20 (c) Insurance coverage limits shall be $100,000 for
21 general liability and $100,000 for errors and omissions, per
22 occurrence.
23 Section 30. Liability.
24 (a) An action by a client of a home inspector to recover
25 damages for any act or omission of a home inspector relating
26 to a home inspection that he or she conducts shall be
27 commenced within one year after the date a home inspection is
28 completed or the action shall be barred.
29 (b) A home inspector is not liable to a person for
30 damages that arise from an act or omission relating to a home
31 inspection that he or she conducts if that person is not
32 party to the contract for which the home inspection is
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1 conducted.
2 (c) Any professional who is licensed by the State of
3 Illinois when acting within the scope of his or her
4 profession and is not a licensed home inspector shall not be
5 liable for the findings, errors, or omissions of the home
6 inspection, provided that he or she has not provided physical
7 work on the residential building; has not committed proven
8 fraud in the real estate transaction; and has no personal or
9 financial interest in the ownership of the residential
10 building.
11 (d) Any person who in good faith or intention recommends
12 or endorses a home inspector without compensation,
13 remuneration, rebate, or any other form of consideration
14 shall not be liable for the actions of that home inspector,
15 including errors, omissions, failure to perform any
16 contracted duties of a home inspection, or failure to meet
17 the standards of practice, report writing standards, or code
18 of ethics.
19 Section 35. Standards of Practice and Code of Ethics.
20 (a) A licensed home inspector is required to follow the
21 Standards of Practice and Code of Ethics as written by the
22 Advisory Council by Rule.
23 (b) A home inspection report must be issued by a home
24 inspector to a client as specified in the Standards of
25 Practice.
26 Section 40. Exemptions. The provisions of this Act shall
27 not apply to:
28 (1) any person who is employed as a code
29 enforcement official by the State of Illinois or a
30 political subdivision thereof when acting within the
31 scope of that government employment;
32 (2) any person regulated by the State of Illinois
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1 as an architect, professional engineer, electrical
2 contractor, or master plumber who is acting within the
3 scope of practice of his or her State license;
4 (3) any real estate broker or real estate
5 salesperson who is registered by the State of Illinois
6 when acting within the scope of his or her profession;
7 (4) any State of Illinois registered real estate
8 appraiser or certified general or residential real estate
9 appraiser who is acting within the scope of his or her
10 profession;
11 (5) any person regulated by the State of Illinois
12 as an insurance adjuster who is acting within the scope
13 of his or her profession;
14 (6) any person regulated by the State of Illinois
15 or a local jurisdiction as an electrician, plumber,
16 heating or cooling technician, or general building
17 contractor who is acting within the scope of his or her
18 profession;
19 (7) any person certified or registered within the
20 State of Illinois as a pesticide applicator or inspector
21 who is acting within the scope of his or her profession.
22 Section 45. Expiration of license; renewal. A license
23 under this Act shall expire 2 years after the date of
24 issuance. The OBRE shall issue a renewal license without
25 examination, on submission of a completed renewal
26 application, payment of the required license renewal fee, and
27 successful completion of continuing education requirements.
28 Section 50. Home Inspector Advisory Council.
29 (a) There is hereby created the Home Inspector Advisory
30 Council to the OBRE and the Commissioner, which shall consist
31 of 6 members appointed by the Governor. The membership of
32 the Council shall consist of (i) 4 licensed home inspectors
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1 and (ii) 2 members of the public.
2 (b) The Home Inspector Advisory Council shall advise
3 the OBRE on matters relating to licensing and education. The
4 Advisory Council shall meet as needed, but no less than 6
5 times annually and shall be reimbursed for expenses.
6 Section 55. Continuing education; compliance with
7 requirements.
8 (a) Each person who applies for renewal of his or her
9 license must successfully complete home inspector continuing
10 education courses approved by the Advisory Council at the
11 rate of 6 hours per year or its equivalent. No license may
12 be renewed except upon the successful completion of the
13 required courses or their equivalent or upon a waiver of
14 those requirements for good cause shown as determined by the
15 Commissioner with the recommendation of the Advisory Council.
16 (b) A person who is issued an initial license as a home
17 inspector less than one year prior to the expiration date of
18 that license shall not be required to complete continuing
19 education as a requirement for license renewal.
20 (c) The continuing education requirement for home
21 inspectors shall be established by the Advisory Council. In
22 meeting the continuing education requirements of this Act,
23 the Advisory Council shall consider subjects that will
24 educate licensees on recent changes in applicable laws and
25 new laws and refresh the licensee on areas of the license law
26 and OBRE policy that the Advisory Council deems appropriate
27 and any other areas that the Advisory Council deems timely
28 and applicable in order to prevent violations of this Act and
29 to protect the public.
30 (d) Each renewal applicant shall certify, on his or her
31 renewal application, full compliance with continuing
32 education requirements. The continuing education school
33 shall retain and submit to OBRE, after the completion of each
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1 course, evidence of those successfully completing the course
2 as provided by rule.
3 Section 60. Reciprocity; nonresident home inspector. The
4 OBRE has the authority to enter into reciprocal agreements
5 with other states. A home inspector's license may be issued
6 by OBRE to a home inspector licensed in another state of the
7 United States that has standards substantially equivalent to
8 or greater than the minimum standards in the State of
9 Illinois, upon submission to the OBRE of application
10 including proof of liability and errors and omissions
11 insurance and payment of required fees.
12 Section 65. Unlicensed practice; civil penalty;
13 prohibited acts.
14 (a) On or after the effective date of this Act, any
15 person who acts as a home inspector, or holds himself or
16 herself out as a home inspector, without being licensed under
17 this Act, shall, in addition to any other penalty provided by
18 law, be liable for a civil penalty not to exceed $500 for a
19 first offense and not to exceed $1,000 for a second or
20 subsequent offense as determined by the OBRE.
21 (b) The OBRE has the authority and power to investigate
22 any and all unlicensed activity.
23 (c) No licensed home inspector may perform repairs on a
24 residential building as part of or result of the home
25 inspection.
26 Section 70. Disciplinary provisions. The OBRE may refuse
27 to issue or to renew or may revoke or suspend a license or
28 may place on probation, censure, reprimand, or take other
29 disciplinary action with regard to any license issued under
30 this Act, including the issuance of fines for each violation,
31 for any one or combination of the following causes:
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1 (1) violations of this Act or its rules;
2 (2) violation of terms of license probation;
3 (3) conviction of a felony in a federal court within 5
4 years prior to the date of application; and
5 (4) operating without adequate insurance coverage
6 required for licensees.
7 Section 75. Investigation; notice; hearing.
8 (a) The OBRE may investigate the actions of an applicant
9 or of a person holding or claiming to hold a license upon
10 complaint in writing of any person setting forth facts which,
11 if proved, would constitute a violation of this Act.
12 (b) The OBRE shall, before taking any disciplinary
13 action that it may deem proper with regard to a license, at
14 least 20 days prior to the date set for a hearing, notify the
15 applicant or licensee in writing of any charges made and the
16 time and place for a hearing of the charges. Such written
17 notice may be served by personal delivery or certified or
18 registered mail at the person's last known address.
19 (c) The Commissioner shall, after a hearing, issue an
20 order either issuing, renewing, refusing to issue or renew,
21 reinstating, or revoking the license.
22 Section 80. Surrender of license; restoration of license.
23 (a) Upon the revocation or suspension of a license, the
24 licensee shall immediately surrender the license to the OBRE.
25 If the licensee fails to do so, the OBRE shall have the right
26 to seize the license.
27 (b) If circumstances of suspension or revocation so
28 indicate, the OBRE may require an examination of the licensee
29 before restoring his or her license.
30 Section 85. Roster. The OBRE shall maintain a roster of
31 the names and addresses of all licensees and of all persons
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1 whose licenses have been suspended or revoked. This roster
2 shall be available upon written request and payment of the
3 required fee.
4 Section 90. Cease and desist order.
5 (a) If a person violates a provision of this Act, the
6 Commissioner, in the name of the People of the State of
7 Illinois through the Attorney General of the State of
8 Illinois, or the State's Attorney of a county in which the
9 violation occurs, may petition for an order enjoining the
10 violation or for an order enforcing compliance with this Act.
11 (b) Whenever in the opinion of OBRE a person violates a
12 provision of this Act, OBRE may issue a rule to show cause
13 why an order to cease and desist should not be entered
14 against him or her. The rule shall clearly set forth the
15 grounds relied upon by OBRE and shall provide a period of 7
16 days from the date of the rule to file an answer to the
17 satisfaction of OBRE. Failure to answer to the satisfaction
18 of OBRE shall cause an order to cease and desist to be issued
19 immediately.
20 Section 95. Illinois Administrative Procedure Act. The
21 Illinois Administrative Procedure Act is hereby expressly
22 adopted and incorporated in this Act as if all of the
23 provisions of that Act were included in this Act, except that
24 the provisions of subsection
25 (d) of Section 10-65 of the Illinois Administrative
26 Procedure Act, providing that at hearings the licensee has
27 the right to show compliance with all lawful requirements for
28 retention, continuation, or renewal of the license, are
29 specifically excluded. For the purposes of this Act, the
30 notice required under Section 10-25 of the Illinois
31 Administrative Procedure Act is deemed sufficient when mailed
32 to the last known address of a party.
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1 Section 100. Administrative Review Law; certificate of
2 record.
3 (a) All final administrative decisions of OBRE shall be
4 subject to judicial review pursuant to the provisions of the
5 Administrative Review Law and its rules. The term
6 "administrative decision" is defined as in Section 3-101 of
7 the Code of Civil Procedure.
8 (b) The OBRE shall not be required to certify any record
9 or file any answer or otherwise appear unless the party
10 filing the complaint pays to OBRE the certification fee.
11 Failure on the part of the plaintiff to make such a deposit
12 shall be grounds for dismissal of the action.".