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2017 Regular Session
SENATE BILL NO. 257(Substitute of Senate Bill No. 205 by Senator Morrell)
BY SENATOR MORRELL
COMMERCIAL REGULATIONS. Provides relative to the Louisiana State Board of Home
Inspectors. (8/1/17)
1 AN ACT
2 To amend and reenact R.S. 37:1473(5), 1474(B) and (D), 1479(D), and 1481(A)(2) and (3)
3 and to enact R.S. 37:1477(B)(8) and (C)(6), relative to Louisiana State Board of
4 Home Inspectors; to provide for definitions; to provide for board membership and
5 membership terms; to provide relative to fees collected by the board; to provide for
6 qualifications of home inspectors; to provide for insurance requirements for home
7 inspectors; to provide certain terms and conditions relative to home inspectors; and
8 to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 37:1473(5), 1474(B) and (D), 1479(D), and 1481(A)(2) and (3) are
11 hereby amended and reenacted and R.S. 37:1477(B)(8) and (C)(6) are hereby enacted to read
12 as follows:
13 §1473. Definitions
14 As used in this Chapter, the following words shall have the following
15 meanings unless the context clearly indicates otherwise:
16 * * *
17 (5) "Home inspector" means any person who, in accordance with the
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words in boldface type and underscored are additions. SB NO. 257
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1 provisions of this Chapter, holds himself out as a home inspector to the general
2 public or engages in the business of performing home inspections on resale
3 residential buildings for compensation or and who examines any component of a
4 building, through visual means and through normal user controls, without the use of
5 mathematical sciences.
6 * * *
7 §1474. Louisiana State Board of Home Inspectors; creation; qualifications;
8 domicile; terms of office; confirmation; oath of office; compensation
9 * * *
10 B. The board shall be composed of one member from each congressional
11 district and one at large member appointed by the governor from a list of names
12 submitted by the board of directors of the Louisiana Chapter of the American Society
13 of Home Inspectors, the Louisiana Realtors Association, and the Louisiana
14 Homebuilders Association, and the Louisiana Mortgage Lenders Association. Each
15 member of the board shall be a United States citizen and a resident of the state, and
16 shall have been actively engaged in the home inspection business on a full-time basis
17 for one year three years preceding the appointment. The initial board members shall
18 be required to obtain a license in accordance with the provisions of this Chapter.
19 Thereafter, each member of the board shall be a licensed home inspector.
20 * * *
21 D. Initially, one member of the board shall be appointed for a two-year term,
22 three members for four-year terms, and three members for six-year terms. No person
23 shall be appointed for more than one full six-year term. Thereafter, all members shall
24 be appointed for six four years. Any vacancy on the board caused by death,
25 resignation, or disability of a member shall be filled for the unexpired term by
26 appointment by the governor from the congressional district where the vacancy
27 occurred.
28 * * *
29 §1477. Qualifications for licensure; application; fees
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1 * * *
2 B. The board may charge and collect fees not in excess of the following:
3 * * *
4 (8) Credit card service fees not to exceed the amount charged to the
5 board by the financial institution.
6 C. An applicant for licensure as a home inspector shall meet the following
7 requirements:
8 * * *
9 (6) Submit a criminal background request form to the office of state
10 police.
11 * * *
12 §1479. License issuance and renewal; appearance on documents
13 * * *
14 D. The term "licensed home inspector" or "L.H.I." along with the license
15 number of the inspector, shall appear on all advertising, correspondence, reports,
16 and documents incidental to a home inspection.
17 * * *
18 §1481. Insurance requirements
19 A.(1) * * *
20 (2) The board shall, by rule, establish or approve an association or
21 associations for the purposes of availing licensees to the benefits of group insurance
22 rates. The board shall establish the terms and conditions of errors and omissions
23 insurance coverage, including but not limited to the permissible deductible, limits
24 of liability, and permissible exclusions. exemptions. However, licensees shall have
25 the option of obtaining errors and omissions insurance independently that complies
26 with the coverage requirements established by the board. Such terms and
27 conditions shall be established by rule in accordance with the Administrative
28 Procedure Act.
29 (3) Each licensee shall be notified of the required terms and conditions of
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1 coverage for the annual policy at least thirty days prior to the annual renewal date.
2 Each licensee who chooses not to participate in the group insurance program
3 administered by the board shall file with the board a certificate of coverage showing
4 compliance with the required terms and conditions of coverage by the annual license
5 renewal date.
6 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Michelle Ridge.
DIGEST
SB 257 Engrossed 2017 Regular Session Morrell
Present law provides relative to the La. Home Inspector Board.
Present law defines "home inspector" as any person who, in accordance with the provisions
of this Chapter, holds himself out as a home inspector to the general public or engages in the
business of performing home inspections on resale residential buildings for compensation
or who examines any component of a building, through visual means and through normal
user controls, without the use of mathematical sciences.
Proposed law defines "home inspector" as any person who, in accordance with the
provisions of this Chapter, holds himself out as a home inspector to the general public or
engages in the business of performing home inspections on resale residential buildings for
compensation and who examines any component of a building, through visual means and
through normal user controls, without the use of mathematical sciences.
Present law provides that board members shall be appointed by the governor from a list of
names submitted by the board of directors of the La. Chapter of the American Society of
Home Inspectors, the La. Realtors Association, the La. Homebuilders Association, and the
La. Mortgage Lenders Association.
Proposed law adds a member at large to the board and removes the ability of the board of
directors of the La. Mortgage Lenders Association to contribute to the list of names
submitted to the governor for appointment consideration.
Present law provides that members shall be appointed for six years.
Proposed law reduces the length of the term from six years to four years.
Present law provides that the board may charge and collect fees not in excess of certain
amounts.
Proposed law adds authorization for the board to collect credit card service fees not to
exceed the amount charged to the board by the financial institution.
Present law requires home inspectors to satisfy certain criteria.
Proposed law retains present law and adds that applicant shall submit a criminal background
request form to the office of state police.
Present law provides that the term "licensed home inspector" along with the license number
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shall appear on all advertising, correspondence, and documents incidental to a home
inspection.
Proposed law retains present law and adds that the term "licensed home inspector" or "L.H.I"
shall appear on reports.
Present law provides for insurance requirements for home inspectors.
Proposed law provides that the board shall establish terms and conditions of errors and
omissions insurance coverage, including but not limited to the permissible deductible, limits
of liability, and permissible exclusions. Such terms and conditions of errors shall be
established by rule in accordance with the Administrative Procedure Act.
Present law provides that each licensee shall be notified of the required terms and conditions
of coverage for the annual policy at least thirty days prior to the annual renewal date. Each
licensee who chooses not to participate in the group insurance program administered by the
board shall file with the board a certificate of coverage showing compliance with the
required terms and conditions of coverage by the annual license renewal date.
Proposed law provides that each licensee shall file with the board a certificate of coverage
showing compliance with the required terms and conditions of coverage by the annual
license renewal date.
Effective August 1, 2017.
(Amends R.S. 37:1473(5), 1474(B) and (D), 1479(D), and 1481(A)(2) and (3), adds R.S.
37:1477(B)(8) and (C)(6))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.