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Minutes for SB168 - Committee on Commerce
Short Title
Enacting the Kansas home inspectors professional competence and financial responsibility act.
Minutes Content for Tue, Feb 19, 2019
Chairperson Lynn opened the hearing on SB 168 and requested Revisor Charles Reimer to provide an overview of the bill.
Senator Holland requested an analysis comparing SB 168 with the prior home inspection legislation. He asked for information concerning why the Legislature allowed the home inspection legislation to sunset in 2013. He inquired what applicability the Kansas Consumer Protection Act has over home inspection services and asked how many complaints have been received under the Kansas Consumer Protection Act for home inspection issues. Reed Holwegner, Legislative Research Department, responded the sunset on the bill was extended in 2013 and was then vetoed by Governor Brownback. A copy of the veto message will be provided.
Chairperson Lynn recognized Patrick Vogelsburg, Kansas Association of Realtors, who provided testimony in support of the bill. The bill would re-enact the Kansas Home Inspectors Competence and Financial Responsibility Act. Mr. Vogelsberg provided a review of the legislative history of Kansas regulation of the home inspector industry. (Attachment 1)
The intent of this legislation is not to enact burdensome regulations on the home inspection industry or restrict actions in the private marketplace. The intent is to create a minimum level of regulation so that consumers receive at least a basic level of service in the home inspection setting.
Key provisions of SB 168 are:
- Provides definitions for the purposes of the act.
- Establishes the Kansas home inspector licensing board and gives the board duties and powers.
- Establishes conduct that would cause a licensee to be suspended, revoked, penalized, or an applicant being denied licensure.
- Establishes criminal history prohibitions.
- Sets fees for licensure and renewal.
- Requires general liability insurance and proof of financial responsibility.
- Establishes pre-licensure education and experience.
- Provides exemptions to home inspector licensure.
- Prohibits limiting liability to below $2,000 and if limiting liability at all, must be provided to client in writing.
- Provides a statutory limit to 12 months from the home inspection to bring a claim. Claim may only be brought by the client that inspection was conducted for.
Mr. Vogelsberg's testimony included a requested amendment to the bill.
Senator Holland said he wanted to understand how the bill protects the public versus shifting liability or cost away from the realtors.
Senator Rucker asked how the current provisions relate to appraisers and their potential liability. Mr. Vogelsberg responded the appraisers are subject to their own regulatory board and their own set of statutes. Senator Rucker questioned whether an accurate appraisal of property can be reached by appraisers independent of reviewing the information from the home inspection report.
From a lender's standpoint, Senator Suellentrop asked Mr. Vogelsburg about requirements in the secondary market concerning inspection. Mr. Vogelsberg responded he was not familiar with the requirements and would need to do some research before responding.
Chairperson Lynn recognized Jeff Barnes, Kansas real estate inspector, who provided testimony in support of the bill. He indicated SB 168 is the same bill that has been passed twice by the Legislature, with only a few updates and the addition of a criminal background check requirement. He said it was his hope, with the passage of this bill, that inspectors could work within a level playing field in both rural and urban environments, and consumers can enjoy better trained, consistent and responsive inspectors. (Attachment 2)
Senator Pilcher-Cook noted there are many types of home services which do not require a criminal background check.
Chairperson Lynn recognized Miki Mertz, President, Kansas Association of Real Estate Inspectors, who provided testimony in support of the bill. She said the home inspection client has a right to expect at least a minimal level of knowledge and competence in a home inspector. The bill establishes that inspectors have specific training or experience and have demonstrated their ability by passing a test or having been in the business long enough to accumulate that knowledge. She indicated the bill protects inspectors from substandard competition and might limit those fly-by-night inspectors who do not want to meet the requirements of the bill. She said she believed the bill was fair and did not place a financial burden on the home inspector. (Attachment 3)
Chairperson Lynn recognized Stacey Van Houton, Certified Building Inspector, Mold and Moisture Analyst, who provided testimony in opposition to the bill. Home inspecting work is largely the same from state to state, but licensing requirements differ. Many states require a home inspector license, but a good portion do not. Licensed or unlicensed, inspectors tend to perform equally well from state to state. There is consistency among most home inspectors, in part, due to widespread home inspector training, provided and required by national home inspection associations such as American Society of Home Inspectors and International Association of Certified Home Inspectors. A license alone does not make a better inspector. From 2009 to 2013, no demonstrated need, by consumer complaints, was shown in Kansas for home inspection licensing. (Attachment 4)
Chairperson Lynn said the hearing on SB 168 would continue February 20, 2019.
The meeting adjourned at 9:25 a.m. The next meeting is scheduled for February 20, 2019.
