HB173 By Representative Bracy RFD Boards, Agencies and Commissions Rd 1 06-FEB-20

SYNOPSIS: Under existing law, persons who are engaged in the business of performing home inspections for compensation are licensed and regulated by the Division of Construction Management within the Department of Finance. Existing law does not define an aggrieved party for the purpose of violations of the code of ethics or standards of practice by a home inspector.

This bill would define the term "aggrieved party" for the purpose violations of the code of ethics or standards of practice by home inspectors. The bill would also provide that the Alabama Home Inspectors Registration Act would be subject to sunset review.

A BILL TO BE ENTITLED AN ACT

Relating to the licensure and regulation of home inspectors by the Division of Construction Management within the Department of Finance; to amend Sections 34-14B-1 and 34-14B-2 of the Code of Alabama 1975; to define the term "aggrieved party" for the purposes of the Alabama Home Inspectors Registration Act and to provide that the act would be subject to sunset review.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Sections 34-14B-1 and 34-14B-2 of the Code of Alabama 1975, is amended to read as follows:

§34-14B-1.

"(a) This chapter shall be known and may be cited as "The Alabama Home Inspectors Registration Act."

"(b) This chapter shall be subject to the Alabama Sunset Law, Chapter 20, Title 41, as an enumerated agency pursuant Section 40-20-3, and shall have a termination date of October 1, 2021, and every four years thereafter, unless continued pursuant to the Alabama Sunset Law.

§34-14B-2.

"The following words shall have the following meanings:

"(1) AGGRIEVED PARTY. Any person or entity that is a party to the sale or purchase of real estate and whose financial, personal, or property rights or interests are adversely affected by the actions of a home inspector due to a violation by a home inspector of the code of ethics or standards of practice adopted pursuant to this chapter.

"(1) (2) BUILDING COMMISSION. The Building Commission established pursuant to Article 6, commencing with Section 41-9-140, Division 1, Chapter 9, Title 41 Division of Construction Management within the Department of Finance established pursuant to Section 41-4-400.

"(2) (3) EXTERIOR INSULATION AND FINISH SYSTEMS (EIFS) INSPECTOR. A person who engages in the business of performing inspections of exterior insulation and finish systems for compensation and who, in the pursuit of that independent business, undertakes or offers to undertake, or submits a bid to, or contracts or undertakes to inspect, or assumes charge of, in a supervisory capacity or otherwise, or inspects the condition of or the installation of EIFS on a private, commercial, or other building on behalf of another person.

"(3) (4) HOME INSPECTOR. A person who engages in the business of performing home inspections for compensation and, who, in the pursuit of that independent business, undertakes or offers to undertake, or submits a bid to, or contracts or undertakes to inspect, or assumes charge, in a supervisory capacity or otherwise, or inspects the condition of, the construction of or erection of a private residence on behalf of another person.

"(4) (5) PERSON. Any natural person, limited or general partnership, association, corporation, or other legal entity, or any combination thereof.

"(5) (6) RESIDENCE. Any dwelling, from one to four units in design intended principally for residential purposes by one or more individuals."

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Real Estate

Property, Real and Personal

Home Inspectors

Sunset Law

Licenses and Licensing

Finance Department

Construction Management Division

Code Amended