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69th Legislature 2025 HB 225.1
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1 HOUSE BILL NO. 225
2 INTRODUCED BY E. TILLEMAN
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING LAWS RELATED TO HOME INSPECTIONS;
5 ALIGNING THE HOME INSPECTION PROGRAM WITH OTHER DEPARTMENTAL LICENSING PROGRAMS;
6 PROVIDING DEFINITIONS; PROVIDING FEES; PROVIDING RULEMAKING AUTHORITY; REVISING LAW
7 RELATED TO HOME INSPECTION LICENSURE; PROVIDING STANDARDS FOR THE PRACTICE OF
8 HOME INSPECTIONS; AMENDING SECTIONS 37-1-401, 39-9-101, 39-9-102, 39-9-206, 39-9-207, 39-9-301,
9 AND 39-9-303, MCA; REPEALING SECTIONS 39-9-212 AND 39-9-213, MCA; AND PROVIDING A DELAYED
10 EFFECTIVE DATE.”
11
12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
13
14 NEW SECTION. Section 1. As used in [sections 1 through 4], the following definitions
15 apply:
16 (1) "Department" means the department of labor and industry.
17 (2) (a) "Home inspection" means a physical examination of a residential dwelling to identify major
18 defects in various attributes of or attachments to the dwelling, including mechanical, electrical, and plumbing
19 systems in addition to structural and other essential components. Home inspections are performed for
20 compensation and employ visual observation and the testing of user controls but not mathematical or
21 specialized engineering sciences.
22 (b) The term does not mean a physical examination of a residential dwelling when the owner or a
23 representative of the owner requests the examination by an individual who is licensed in this state and acting
24 within the scope of practice of the individual's profession or occupation.
25 (3) "Home inspection report" means a written document prepared by a home inspector for a client
26 and issued to the client in exchange for compensation after a home inspection has been completed. The report
27 must clearly identify and describe:
28 (a) the inspected systems, structures, and other relevant components of the dwelling; ****
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1 (b) any major visible defects in the inspected systems, structures, and other relevant components
2 of the dwelling; and
3 (c) any recommendations for further evaluation of the property by other appropriate persons.
4 (4) "Home inspector" means an individual who performs a home inspection for compensation.
5 (5) "Practice" means to engage in the services of home inspection as the term is defined in this
6 section.
7
8 NEW SECTION. Section 2. (1) The department may adopt rules
9 necessary to implement [sections 1 through 4].
10 (2) The fees collected under [sections 1 through 4] in accordance with 37-1-134 must be deposited
11 in a special revenue account for administration and enforcement of [sections 1 through 4].
12
13 NEW SECTION. Section 3. (1)
14 An individual may not practice home inspection without a home inspector license issued under Title 37, chapter
15 1, and [sections 1 through 4].
16 (2) An applicant for a home inspection license must have:
17 (a) successfully completed a minimum of 40 hours of comprehensive home inspection instruction
18 approved by the department;
19 (b) membership in a national home inspection association; and
20 (c) a minimum of $100,000 liability insurance coverage in errors and omissions insurance.
21 (3) The requirements in subsections (2)(b) and (2)(c) of this section must be maintained for
22 continued licensure.
23
24 NEW SECTION. Section 4. (1) A home inspector shall
25 issue a written home inspection report to a client after completing a home inspection unless the client agrees in
26 writing to release the home inspector from this obligation.
27 (2) The home inspection report must clearly identify and describe:
28 (a) the inspected systems, structures, and other relevant components of the dwelling; ****
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1 (b) any major visible defects in the inspected systems, structures, and other relevant components
2 of the dwelling; and
3 (c) any recommendations for further evaluation of the property by other appropriate persons.
4 (3) A home inspector may not:
5 (a) disclose information concerning the results of a home inspection without the written approval of
6 the home inspector’s client or the client’s representative;
7 (b) accept compensation from more than one party with a financial interest in the residential
8 dwelling without written approval from all parties with a financial interest in the residential dwelling;
9 (c) accept a commission or allowance, directly or indirectly, from another individual or business
10 entity associated with the client in connection with work for which the home inspector is responsible to the
11 client; or
12 (d) refuse or otherwise fail to disclose promptly to a client information about any business interest
13 or relationship of the home inspector that may affect the client in connection with a home inspection.
14
15 Section 37-1-401, MCA, is amended to read:
16 "37-1-401.
17 As used in this part, the following definitions apply:
18 (1) "Complaint" means a written allegation filed with the department that, if true, warrants an
19 injunction, disciplinary action against a licensee, or denial of an application submitted by a license applicant.
20 (2) "Department" means the department of labor and industry provided for in 2-15-1701.
21 (3) "Investigation" means the inquiry, analysis, audit, or other pursuit of information by the
22 department, with respect to a complaint or other information before the department, that is carried out for the
23 purpose of determining:
24 (a) whether a person has violated a provision of law justifying discipline against the person;
25 (b) the status of compliance with a stipulation or order of the department;
26 (c) whether a license should be granted, denied, or conditionally issued; or
27 (d) whether the department should seek an injunction.
28 (4) "License" means permission in the form of a license, permit, endorsement, certificate, ****
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1 recognition, or registration granted by the state of Montana to engage in a business activity or practice at a
2 specific level in a profession or occupation governed by:
3 (a) Title 37, chapter 2, part 6;
4 (b) Title 37, chapter 16, 40, 56, 60, 72, or 73, or [sections 1 through 4]; or
5 (c) Title 50, chapter 39, 74, or 76.
6 (5) "Profession" or "occupation" means a profession or occupation regulated by the department
7 under the provisions of:
8 (a) Title 37, chapter 2, part 6;
9 (b) Title 37, chapter 16, 40, 49, 56, 60, 72, or 73, or [sections 1 through 4]; or
10 (c) Title 50, chapter 39, 74, or 76. (Terminates June 30, 2031--sec. 10, Ch. 628, L. 2023.)
11
12 As used in this part, the following definitions apply:
13 (1) "Complaint" means a written allegation filed with the department that, if true, warrants an
14 injunction, disciplinary action against a licensee, or denial of an application submitted by a license applicant.
15 (2) "Department" means the department of labor and industry provided for in 2-15-1701.
16 (3) "Investigation" means the inquiry, analysis, audit, or other pursuit of information by the
17 department, with respect to a complaint or other information before the department, that is carried out for the
18 purpose of determining:
19 (a) whether a person has violated a provision of law justifying discipline against the person;
20 (b) the status of compliance with a stipulation or order of the department;
21 (c) whether a license should be granted, denied, or conditionally issued; or
22 (d) whether the department should seek an injunction.
23 (4) "License" means permission in the form of a license, permit, endorsement, certificate,
24 recognition, or registration granted by the state of Montana to engage in a business activity or practice at a
25 specific level in a profession or occupation governed by:
26 (a) Title 37, chapter 16, 40, 56, 60, 72, or 73, or [sections 1 through 4]; or
27 (b) Title 50, chapter 39, 74, or 76.
28 (5) "Profession" or "occupation" means a profession or occupation regulated by the department ****
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1 under the provisions of:
2 (a) Title 37, chapter 16, 40, 49, 56, 60, 72, or 73, or [sections 1 through 4]; or
3 (b) Title 50, chapter 39, 74, or 76."
4
5 Section 39-9-101, MCA, is amended to read:
6 "39-9-101. It is the purpose of this chapter to ensure that all construction contractors and
7 home inspectors are competing fairly and in compliance with state laws."
8
9 Section 39-9-102, MCA, is amended to read:
10 "39-9-102.
11 (1) "Construction contractor" means a person, firm, or corporation that:
12 (a) in the pursuit of an independent business, offers to undertake, undertakes, or submits a bid to
13 construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish for another a building,
14 highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real
15 estate, including the installation of carpeting or other floor covering, the erection of scaffolding or other
16 structures or works, or the installation or repair of roofing or siding; or
17 (b) in order to do work similar to that described in subsection (1)(a) upon the construction
18 contractor's property, employs members of more than one trade on a single job or under a single building
19 permit, except as otherwise provided.
20 (2) "Department" means the department of labor and industry.
21 (3) (a) "Home inspection" means a physical examination of a residential dwelling to identify major
22 defects in various attributes of or attachments to the dwelling, including mechanical, electrical, and plumbing
23 systems in addition to structural and other essential components. Home inspections are performed for
24 compensation and employ visual observation and the testing of user controls but not mathematical or
25 specialized engineering sciences.
26 (b) The term does not mean a physical examination of a residential dwelling when the owner or a
27 representative of the owner requests the examination by an individual who is licensed, certified, or registered in
28 this state and who is acting within the scope of practice of the individual's profession or occupation. ****
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1 (4) "Home inspection report" means a written document prepared by a home inspector for a client
2 and issued to the client in exchange for compensation after a home inspection has been completed. The report
3 must clearly identify and describe:
4 (a) the inspected systems, structures, and other relevant components of the dwelling;
5 (b) any major visible defects in the inspected systems, structures, and other relevant components
6 of the dwelling; and
7 (c) any recommendations for further evaluation of the property by other appropriate persons.
8 (5) "Home inspector" means a person who performs a home inspection for compensation."
9
10 Section 39-9-206, MCA, is amended to read:
11 "39-9-206.
12 contractors and home inspectors for:
13 (a) issuance, renewal, and reinstatement of certificates of registration; and
14 (b) change of name, address, or business structure.
15 (2) The department shall set the fees by administrative rule. The fees must cover the full cost of
16 issuing certificates, filing papers and notices, and administering and enforcing this chapter. The costs include
17 reproduction, travel, per diem, and administrative and legal support costs.
18 (3) The fees charged in subsection (1)(a) may not exceed:
19 (a) for a construction contractor:
20 (i) $70 for the initial registration certificate; or
21 (ii) $70 for the renewal or reinstatement of a registration certificate; or
22 (b) for a home inspector, an amount determined in rule for the initial registration certificate or for
23 the renewal or reinstatement of a registration certificate. $70 for the initial registration certificate or for the
24 renewal or reinstatement of a registration certificate.
25 (4) The fees collected under this section must be deposited in a state special revenue account to
26 the credit of the department for the administration and enforcement of this chapter and independent contractor
27 certification provided for in Title 39, chapter 71, part 4.
28 (5) The department shall establish, cooperatively with representatives of the building industry, and ****
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1 the home inspection industry, an industry and consumer information program, funded with 15% of the fees, to
2 educate the building industry and home inspectors about the registration requirements and to educate the
3 public regarding the hiring of building construction contractors and home inspectors.
4 (6) The fee for a joint application for a certificate of registration and an independent contractor
5 exemption certificate may not exceed the total fee charged for a certificate of registration and an independent
6 contractor exemption certificate that are obtained separately. The fee paid for the independent contractor
7 exemption certificate may be used by the department to offset the cost of administering independent contractor
8 certification provided for in Title 39, chapter 71, part 4."
9
10 Section 39-9-207, MCA, is amended to read:
11 "39-9-207. A person who, pursuant to an oral or written contract,
12 engages a construction contractor or a home inspector who is registered under this chapter on the date of the
13 contract is not liable as an employer for workers' compensation coverage under 39-71-405, for unemployment
14 insurance coverage, or for wages and fringe benefits for:
15 (1) the registered construction contractor or home inspector;
16 (2) the employees of the registered construction contractor or home inspector; or
17 (3) any subsequent subcontractor or the employees of any subsequent subcontractor engaged to
18 fulfill a part of or all of the obligations of the oral or written contract of the registered construction contractor or
19 home inspector listed in subsection (1)."
20
21 Section 39-9-301, MCA, is amended to read:
22 "39-9-301. (1) Except as provided in 39-9-205, a person who has
23 registered under one name as provided in this chapter may not engage in the business or act in the capacity of
24 a construction contractor or a home inspector under any other name unless that name also is registered under
25 this chapter.
26 (2) Use of a falsified registration number in connection with a solicitation or identification as a
27 construction contractor or a home inspector is prohibited.
28 (3) A partner, associate, agent, salesperson, solicitor, officer, or employee of a construction ****
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1 contractor or a home inspector shall use a true name and address at all times while engaged in the business or
2 capacity of a construction contractor or a home inspector or in activities related to a construction contractor or a
3 home inspector.
4 (4) A construction contractor may not:
5 (a) hire a person as an independent contractor who does not have an independent contractor
6 exemption certificate if required by 39-71-417;
7 (b) hire a person as an independent contractor if the department has suspended, revoked, or
8 denied the person's independent contractor's exemption certificate;
9 (c) hire an independent contractor to work in a trade, business, occupation, or profession not listed
10 on the independent contractor's registration;
11 (d) allow an independent contractor to perform work not in the trade, business, occupation, or
12 profession listed on the independent contractor exemption certificate; or
13 (e) classify an employee as an independent contractor if the person does not have an independent
14 contractor exemption certificate required by 39-71-417.
15 (5) (a) The finding of a violation of this section by the department at a hearing held in accordance
16 with the Montana Administrative Procedure Act subjects the person who commits the violation to a penalty of
17 not more than $5,000, as determined by the department. The required hearing may be held by telephone or by
18 videoconference. A penalty collected under this section must be deposited in the state special revenue account
19 to the credit of the department for administration and enforcement of this chapter.
20 (b) Penalties under this section do not apply to a violation that is determined to be an inadvertent
21 error."
22
23 Section 39-9-303, MCA, is amended to read:
24 "39-9-303. (1) The
25 department shall compile a list of all construction contractors and home inspectors registered under this chapter
26 and update the list at least bimonthly. list of construction contractors at least bimonthly and the list of home
27 inspectors as provided by rule. The list is public information and must be available to the public upon request
28 for a reasonable fee or posted on the department's website. ****
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1 (2) The department shall inform a person, firm, or corporation whether a construction contractor or
2 a home inspector is registered. The department shall provide the information without charge, except for a
3 reasonable fee for any copies made."
4
5 NEW SECTION. Section 12. The following sections of the Montana Code Annotated are
6 repealed:
7 39-9-212. Home inspector registration -- penalty -- rulemaking.
8 39-9-213. Requirement -- prohibitions.
9
10 NEW SECTION. Section 13. [Sections 1 through 4] are intended to be
11 codified as an integral part of Title 37, and the provisions of Title 37 apply to [sections 1 through 4].
12
13 NEW SECTION. Section 14. [This act] is effective January 1, 2026.
14
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