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Minnesota Legislature

Office of the Revisor of Statutes

HF 3393

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to health and safety of homes; regulating home inspections; authorizing
rulemaking; imposing penalties; amending Minnesota Statutes 2004, section
116J.70, subdivision 2a; proposing coding for new law as Minnesota Statutes,
chapter 326B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 116J.70, subdivision 2a, is amended to
read:


Subd. 2a.

License; exceptions.

"Business license" or "license" does not include
the following:

(1) any occupational license or registration issued by a licensing board listed in
section 214.01 or any occupational registration issued by the commissioner of health
pursuant to section 214.13;

(2) any license issued by a county, home rule charter city, statutory city, township, or
other political subdivision;

(3) any license required to practice the following occupation regulated by the
following sections:

(i) abstracters regulated pursuant to chapter 386;

(ii) accountants regulated pursuant to chapter 326A;

(iii) adjusters regulated pursuant to chapter 72B;

(iv) architects regulated pursuant to chapter 326;

(v) assessors regulated pursuant to chapter 270;

(vi) athletic trainers regulated pursuant to chapter 148;

(vii) attorneys regulated pursuant to chapter 481;

(viii) auctioneers regulated pursuant to chapter 330;

(ix) barbers and cosmetologists regulated pursuant to chapter 154;

(x) boiler operators regulated pursuant to chapter 183;

(xi) chiropractors regulated pursuant to chapter 148;

(xii) collection agencies regulated pursuant to chapter 332;

(xiii) dentists, registered dental assistants, and dental hygienists regulated pursuant
to chapter 150A;

(xiv) detectives regulated pursuant to chapter 326;

(xv) electricians regulated pursuant to chapter 326;

(xvi) mortuary science practitioners regulated pursuant to chapter 149A;

(xvii) engineers regulated pursuant to chapter 326;

(xviii) insurance brokers and salespersons regulated pursuant to chapter 60A;

(xix) certified interior designers regulated pursuant to chapter 326;

(xx) midwives regulated pursuant to chapter 147D;

(xxi) nursing home administrators regulated pursuant to chapter 144A;

(xxii) optometrists regulated pursuant to chapter 148;

(xxiii) osteopathic physicians regulated pursuant to chapter 147;

(xxiv) pharmacists regulated pursuant to chapter 151;

(xxv) physical therapists regulated pursuant to chapter 148;

(xxvi) physician assistants regulated pursuant to chapter 147A;

(xxvii) physicians and surgeons regulated pursuant to chapter 147;

(xxviii) plumbers regulated pursuant to chapter 326;

(xxix) podiatrists regulated pursuant to chapter 153;

(xxx) practical nurses regulated pursuant to chapter 148;

(xxxi) professional fund-raisers regulated pursuant to chapter 309;

(xxxii) psychologists regulated pursuant to chapter 148;

(xxxiii) real estate brokers, salespersons, and others regulated pursuant to chapters
82 and 83;

(xxxiv) registered nurses regulated pursuant to chapter 148;

(xxxv) securities brokers, dealers, agents, and investment advisers regulated
pursuant to chapter 80A;

(xxxvi) steamfitters regulated pursuant to chapter 326;

(xxxvii) teachers and supervisory and support personnel regulated pursuant to
chapter 125;

(xxxviii) veterinarians regulated pursuant to chapter 156;

(xxxix) water conditioning contractors and installers regulated pursuant to chapter
326;

(xl) water well contractors regulated pursuant to chapter 103I;

(xli) water and waste treatment operators regulated pursuant to chapter 115;

(xlii) motor carriers regulated pursuant to chapter 221;

(xliii) professional firms regulated under chapter 319B;

(xliv) real estate appraisers regulated pursuant to chapter 82B;

(xlv) residential building contractors, residential remodelers, residential roofers,
manufactured home installers, and specialty contractors regulated pursuant to chapter 326;

(xlvi) licensed professional counselors regulated pursuant to chapter 148B;new text begin and
new text end

new text begin (xlvii) home inspectors licensed according to chapter 326B;
new text end

(4) any driver's license required pursuant to chapter 171;

(5) any aircraft license required pursuant to chapter 360;

(6) any watercraft license required pursuant to chapter 86B;

(7) any license, permit, registration, certification, or other approval pertaining to a
regulatory or management program related to the protection, conservation, or use of or
interference with the resources of land, air, or water, which is required to be obtained
from a state agency or instrumentality; and

(8) any pollution control rule or standard established by the Pollution Control
Agency or any health rule or standard established by the commissioner of health or any
licensing rule or standard established by the commissioner of human services.

Sec. 2.

new text begin [326B.01] HOME INSPECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The terms used in this chapter have the following
meanings unless otherwise provided for by text.
new text end

new text begin (a) "Client" means the specific person named as the client in an inspection report or,
if not named, the specific person for whom an inspection is provided.
new text end

new text begin (b) "Commissioner" means the commissioner of commerce.
new text end

new text begin (c) "Council" means the Minnesota Home Inspector Technical Advisory Council.
new text end

new text begin (d) "Department" means the Minnesota Department of Commerce.
new text end

new text begin (e) "Engage in home inspection" means to perform, or offer to perform, a home
inspection for compensation or other valuable consideration or to hold oneself out to the
public as qualified to perform a home inspection.
new text end

new text begin (f) "Examination" means an independent, national, and proctored examination,
approved by the commissioner, that was developed in conformance with psychometric
principles as evaluated by a service having qualified psychometricians and meets
development, maintenance, and administration standards of the National Commission
of Certifying Agencies and the "Standards for Educational and Psychological Testing"
developed jointly by the National Council on Measurement in Education, the American
Educational Research Association, and the American Psychological Association.
new text end

new text begin (g) "Home inspection" means the act of visually examining and reporting the
physical condition of readily accessible systems and components of a manufactured home
or a building containing one to four residential dwelling units.
new text end

new text begin (h) "Home inspector license" means the Minnesota license issued to individuals
under chapter 326B.
new text end

new text begin (i) "Home inspector" means an individual at least 18 years old to whom a valid
license is issued according to the provisions of this chapter.
new text end

new text begin Subd. 2. new text end

new text begin License required; exemptions. new text end

new text begin (a) Notwithstanding section 326.03,
subdivision 2, an individual must have a valid Minnesota home inspector license to engage
in home inspection within Minnesota.
new text end

new text begin (b) Nothing in this section prevents individuals from acting within the scope of the
individual's trade or profession, such as real estate appraisers, architects, professional
engineers, individuals licensed in the building trades, certified energy evaluators,
municipal truth-in-sale-of-housing or time-of-sale evaluators, and public employees.
However, to engage in home inspection in Minnesota, individuals must have a valid
Minnesota home inspector license.
new text end

new text begin Subd. 3. new text end

new text begin Rules; qualifications for licensure. new text end

new text begin (a) The commissioner with the advice
and assistance of the council shall: (1) establish an application and evaluation process
for issuing home inspector licenses to qualified individuals according to requirements
established by the commissioner; (2) establish other reasonable requirements for licensing
to protect the public, home inspection clients, or the home inspector profession; (3)
establish rules to enforce penalties; and (4) establish other reasonable rules necessary to
achieve and enforce the intent of this chapter. No rule shall limit information related to a
home inspection that a home inspector may provide to a client.
new text end

new text begin (b) The commissioner shall establish educational requirements for licensure and
continuing education requirements for home inspectors that include a minimum of 20
hours of yearly continuing education that is approved as to content by the council. A home
inspector must provide proof of attendance for license renewal.
new text end

new text begin (c) The commissioner shall issue a home inspector license valid for up to two years
to an individual who submits truthful information as required by the commissioner and on
forms designed by the commissioner. The individual shall pay a fee equal to $25 for each
quarter of a calendar year the license is valid. The individual:
new text end

new text begin (1) must have provided proof of passing a commissioner-approved examination that
met or exceeded the requirements of subdivision 1, paragraph (f), and proof of meeting the
continuing education requirements of paragraph (b) for license renewals;
new text end

new text begin (2) must not have plead guilty, plead nolo contendere, or been convicted of a crime
related to home inspection;
new text end

new text begin (3) must not have been adjudicated a predatory sex offender or other offender
required to be registered as described in section 243.166 or 244.052;
new text end

new text begin (4) must be free from any unfulfilled penalty or disciplinary action described in
subdivision 4; and
new text end

new text begin (5) must meet other requirements established by the commissioner according to
paragraph (a).
new text end

new text begin (d) The commissioner shall maintain a public register of home inspectors, identifying
all currently and formerly licensed individuals and licensed individuals whose license is
under disciplinary action.
new text end

new text begin Subd. 4. new text end

new text begin Prohibited acts and penalties. new text end

new text begin (a) A license may be denied, suspended, or
revoked, and/or a home inspector may be issued a public letter of reprimand or placed on
probation, until the reason for probation status is satisfied.
new text end

new text begin (b) If a majority of the entire council, after notice and hearing, determines an
individual has engaged in any one of the prohibited activities in clauses (1) to (14), the
disciplinary action in paragraph (a) may be enforced. If the individual:
new text end

new text begin (1) claimed to be qualified to engage in home inspection in Minnesota without
having a valid Minnesota home inspector license;
new text end

new text begin (2) agreed to engage in home inspection in Minnesota without having a valid
Minnesota home inspector license;
new text end

new text begin (3) engaged in home inspection in Minnesota without having a valid Minnesota
home inspector license;
new text end

new text begin (4) advertised or engaged in home inspection under another individual's name;
new text end

new text begin (5) knowingly allowed the individual's license and name to be used by an unlicensed
individual while the other individual engaged in home inspection;
new text end

new text begin (6) employed or supplied for employment an individual to perform a home
inspection in Minnesota who did not have a valid Minnesota home inspector license;
new text end

new text begin (7) performed any act for which a Minnesota home inspector license is required after
expiration, revocation, or suspension of the license or during probation;
new text end

new text begin (8) plead guilty to, plead nolo contendere to, or has been convicted of a crime related
to home inspection or a crime that would require registration as a predatory, sex, or other
offender described in section 243.166 or 244.052;
new text end

new text begin (9) made a material misstatement in an application for a license or renewal of
a license;
new text end

new text begin (10) advertised in a manner that is false, deceptive, or misleading;
new text end

new text begin (11) performed a home inspection while the individual's ability was impaired by
alcohol or other legal or illegal drugs;
new text end

new text begin (12) engaged in conduct while performing a home inspection that indicated a lack of
knowledge or ability to apply professional principles or skills;
new text end

new text begin (13) performed a home inspection of a property for which the individual also acted
as a real estate appraiser, a real estate salesperson, real estate broker, or a loan officer; or
new text end

new text begin (14) failed to provide a written home inspection report to a client by the date agreed
on by the home inspector and the client and for which the home inspector had been
compensated.
new text end

new text begin Subd. 5. new text end

new text begin Hearings and appeals. new text end

new text begin The commissioner, with or without technical
information or advice from the council, may hold hearings under chapter 14 on any matter
under the provisions of this section. Any person aggrieved by an order or decision of the
commissioner may appeal the order or decision according to the provisions of chapter 14.
new text end

new text begin Subd. 6. new text end

new text begin Professional liability. new text end

new text begin All home inspectors shall carry a general liability
insurance policy in an amount determined by the commissioner with the advice and
assistance of the council. The general liability insurance policy shall provide that
cancellation or renewal of the policy shall not be effective until at least ten days' notice of
cancellation or renewal has been received in writing by the department.
new text end

new text begin Subd. 7. new text end

new text begin Minnesota Home Inspector Technical Advisory Council. new text end

new text begin (a) The
Minnesota Home Inspector Technical Advisory Council is created under the jurisdiction
of the commissioner. The council shall advise the commissioner on matters relating to:
(1) the scope of home inspections; (2) home inspection capabilities; (3) home inspection
procedures and methods; (4) questions of materiality; (5) business ethics; (6) what
activities constitute engaging in or performing home inspection; and (7) other technical
matters determined by the commissioner.
new text end

new text begin (b) The council shall consist of seven home inspectors appointed by the
commissioner no later than November 1, 2006.
new text end

new text begin (c) Each council member must, at the time of appointment:
new text end

new text begin (1) be a resident of the state of Minnesota and physically residing primarily in the
state of Minnesota;
new text end

new text begin (2) be a home inspector licensed under subdivision 3, except the initial council
members, when first appointed, are not required to be licensed if they meet or exceed the
requirements for licensing under subdivision 3;
new text end

new text begin (3) be able to communicate regularly by e-mail including receiving and sending
electronic documents; and
new text end

new text begin (4) have performed home inspections in the state of Minnesota for at least five years
immediately preceding their appointment.
new text end

new text begin (d) No later than 30 days after all members have been appointed to the council, the
council shall meet for the purpose of organizing by electing a chair and other officers as
the council finds necessary and appropriate.
new text end

new text begin (e) The council shall meet at least semiannually on a date and at a time and place
determined by the council and at other times as may be specified upon the call of the
chair, the commissioner, or a majority of the council members. Participation in a meeting
by teleconference is authorized provided all participants can adequately hear all other
participants.
new text end

new text begin (f) A majority of the current council members constitutes a quorum.
new text end

new text begin (g) A council member who fails to attend three consecutive meetings, fails to attend
50 percent of all meetings during any calendar year, ceases to have primary residence
in Minnesota, or ceases to conduct home inspections is deemed to have resigned from
the council.
new text end

new text begin (h) Council members' terms are two years, except that the initial council has four
members with terms of two years and three members with an initial term of one year.
new text end

new text begin (i) Council members may not serve for more than two consecutive terms, except if
no successor has been appointed or approved, the member may continue to serve until a
successor is appointed or approved.
new text end

new text begin (j) Council members shall not receive compensation for their services, but as
described in section 15.059 shall be reimbursed for necessary expenses incurred in the
performance of their duties and as approved by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except section 326B.01, subdivision 2, is effective January 1, 2007. For individuals who
engage in home inspection within Minnesota prior to enactment of section 326B.01, this
section is effective July 1, 2007.
new text end