2017 Regular Session ENROLLED SENATE BILL NO. 257(Substitute of Senate Bill No. 205 by Senator Morrell) BY SENATOR MORRELL 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 18 provisions of this Chapter, holds himself out as a home inspector to the general 19 public or engages in the business of performing home inspections on resale 20 residential buildings for compensation or and who examines any component of a 21 building, through visual means and through normal user controls, without the use of 22 mathematical sciences. 23 * * * Page 1 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 257 ENROLLED 1 §1474. Louisiana State Board of Home Inspectors; creation; qualifications; 2 domicile; terms of office; confirmation; oath of office; compensation 3 * * * 4 B. The board shall be composed of one member from each congressional 5 district and one at-large member appointed by the governor from a list of names 6 submitted by the board of directors of the Louisiana Chapter of the American Society 7 of Home Inspectors, the Louisiana Realtors Association, and the Louisiana 8 Homebuilders Home Builders Association, and the Louisiana Mortgage Lenders 9 Association. Each member of the board shall be a United States citizen and a resident 10 of the state, and shall have been actively engaged in the home inspection business 11 on a full-time basis for one year three years preceding the appointment. The initial 12 board members shall be required to obtain a license in accordance with the 13 provisions of this Chapter. Thereafter, each member of the board shall be a licensed 14 home inspector. 15 * * * 16 D.(1) Initially, one member of the board shall be appointed for a two-year 17 term, three members for four-year terms, and three members for six-year terms. No 18 person shall be appointed for more than one full six-year term. Thereafter On and 19 after August 1, 2017, all members shall be appointed for six four years. Any 20 Except as provided in Paragraph (2) of this Subsection for the at-large member, 21 any vacancy on the board caused by death, resignation, or disability of a member 22 shall be filled for the unexpired term by appointment by the governor from the 23 congressional district where the vacancy occurred. 24 (2) On and after August 1, 2017, the board member from the Third 25 Congressional District who was appointed to the board on July 27, 2012, is 26 designated as the at-large member. Any vacancy of the at-large member 27 caused by death, resignation, or disability shall be filled for the unexpired term 28 by appointment by the governor. 29 * * * 30 §1477. Qualifications for licensure; application; fees Page 2 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 257 ENROLLED 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) Submission of a criminal background request form to the office of 10 state 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 30 coverage for the annual policy at least thirty days prior to the annual renewal date. Page 3 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. SB NO. 257 ENROLLED 1 Each licensee who chooses not to participate in the group insurance program 2 administered by the board shall file with the board a certificate of coverage showing 3 compliance with the required terms and conditions of coverage by the annual license 4 renewal date. 5 * * * PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE OF REPRESENTATIVES GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 4 of 4 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions.