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SF 460 – Registration of Home Inspectors (LSB2328SV)
Staff Contact: Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 460 relates to home inspections, including persons authorized to perform home
inspections and requirements for independent home inspection reports and does the following:
• Establishes regulations for home inspectors, including requiring home inspectors to adhere
to industry standards and a national code of ethics.
• Prohibits conflicts of interest for home inspectors.
• Establishes penalties for violation of the Bill, which are considered unfair practices and may
result in civil penalties up to $40,000.
• Requires home inspection reports to be in writing and to include specific elements, such as
the scope of the inspection and a list of material defects. Failure to meet these
requirements may result in a simple misdemeanor, punishable by a fine of up to $500.
• Restricts the disclosure of home inspection reports and limits cost estimates unless they
include a specified source and range of costs.
• Requires home inspectors to maintain liability insurance with minimum coverage of
$100,000 per occurrence and $500,000 in total. Failure to meet this requirement or falsely
claiming to be a home inspector may result in a simple misdemeanor for a first offense and a
serious misdemeanor for subsequent offenses. Penalties may range from fines to
confinement.
Background
Home inspectors are not currently required to be licensed in Iowa, although they may receive
certification from a national inspector association.
A simple misdemeanor is punishable by up to 30 days and a fine of at least $105 but not more
than $855. A serious misdemeanor is punishable by up to one year of confinement and a fine of
at least $430 but not more than $2,560.
Assumptions
• The following will not change over the projection period: charge, conviction, and sentencing
patterns and trends; prisoner length of stay (LOS); revocation rates; plea bargaining; and
other criminal justice system policies and practices.
• A delay of six months is assumed from the effective date of this Bill to the date of first entry
of affected offenders into the correctional system.
• Marginal costs for county jails cannot be estimated due to a lack of data. For purposes of
this analysis, the marginal cost for county jails is assumed to be $50 per day.
• According to the Department of Corrections (DOC), crimes involving professionals are rare,
and it is anticipated that home inspectors would comply with the legislation.
Fiscal Note
Fiscal Services Division 2
Correctional Impact
Senate File 460 creates new criminal offenses; however, crimes involving professionals are
rare. As a result, the correctional impact cannot be estimated due to a lack of existing
conviction data. Figure 1 shows estimates for sentencing to State prison, parole, probation, or
Community-Based Corrections (CBC) residential facilities; LOS in months under those
supervisions; and supervision marginal costs per day for a serious misdemeanor. Refer to the
Legislative Services Agency (LSA) memo addressed to the General Assembly, Cost Estimates
Used for Correctional Impact Statements, dated January 13, 2025, for information related to the
correctional system.
Figure 1 — Sentencing Estimates and Length of Stay (LOS) in Months
Minority Impact
Senate File 460 creates new criminal offenses. As a result, Criminal and Juvenile Justice
Planning (CJJP) of the Department of Management (DOM) cannot use existing data to estimate
the minority impact of the Bill. Refer to the LSA memo addressed to the General Assembly,
Minority Impact Statement, dated January 13, 2025, for information related to minorities in the
criminal justice system.
Fiscal Impact
Senate File 460 establishes new criminal offenses. The fiscal impact cannot be estimated, but
is anticipated to be minimal. Figure 2 shows the average State cost per offense for a simple
misdemeanor and a serious misdemeanor. The estimated impact to the General Fund includes
operating costs incurred by the Judicial Branch, the Indigent Defense Fund, and the DOC. It is
not estimated that the fiscal impact of this Bill will be significant.
Figure 2 — Average State Cost Per Offense
Sources
Criminal and Juvenile Justice Planning (CJJP), Department of Management (DOM)
Department of Corrections
Department of Inspections, Appeals, and Licensing
/s/ Jennifer Acton
March 12, 2025
Doc ID 1523598
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov Conviction Offense Class
Percent
Ordered to
State
Prison
FY 2024 Avg
LOS in
Prison (All
Releases)
Marginal
Cost Per
Day
Percent
Ordered to
Probation
FY24 Field
Avg LOS on
Probation
Avg Cost
Per Day on
Probation
Marginal
Cost CBC
Per Day
Marginal
Cost Per
Day Jail
FY24 Field
Avg LOS on
Parole
Marginal
Cost Per
Day Parole
Serious Misdemeanor 2.4% N/A $24.51 53.4% 18.8 $7.68 $18.37 $50.00 N/A $7.68 Offense Class Average Cost
Simple Misdemeanor$40 to $420
Serious Misdemeanor$420 to $5,000