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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 Wed, Feb 20, 2019
Chairperson Lynn continued the hearing on SB 168 which began on February 19, 2019.
Chairperson Lynn recognized Amanda Stanley, private citizen, who provided testimony in support of the bill. Ms. Stanley shared her experience with a home inspector missing items in need of repair which, in turn, increased the cost of her home purchase. (Attachment 1)
Senator Holland asked how long the home inspector had been in business. Ms. Stanley responded it was her understanding he had been in the business for twenty years.
Chairperson Lynn recognized Kerry Parham, Executive Director, Kansas Association of Real Estate Inspectors, who provided testimony in support of the bill. The previous bill from 2013 is nearly identical to the current bill that defines what is included in a home inspection, sets minimum education standards, and establishes financial assurances. Buyers and sellers rely upon the experience and knowledge of a competent home inspector to provide an unbiased and complete inspection, in order to protect both their financial interests and the health and safety of their families. The public interest can be protected by establishing minimum education requirements, defining what should be included in a home inspection, and verifying the trustworthiness of those who sometimes are allowed unfettered access to occupied homes. (Attachment 2)
Senator Rucker asked if the members of the previous five member board were all appointed by the governor and if the governor had appointed a consumer affairs attorney. Mr. Parham responded affirmatively.
Chairperson Lynn recognized Curtis Reeder, Diligent Home Inspection Services, LLC, who provided testimony in opposition to the bill. There is no supporting data which indicates licensing home inspectors protects consumers and reduces legal complaints. In April of 2013, past Governor Sam Brownback stated, "I see little evidence of large numbers of Kansas citizens being economically harmed by home inspectors. In fact, even the proponents believe the vast majority of Kansans who provide this service are honest people. Therefore, it appears the legislation passed in 2008 may simply add unnecessary fees and regulations to law abiding citizens". Licensing a home inspector provides a realtor or an upset home buyer with someone to blame if something fails. Licensing of home inspectors is an over-regulation and misappropriation of government. (Attachment 3)
Senator Holland asked Mr. Reeder if he had a concern about the fly-by-night home inspectors. Mr. Reeder responded the fly-by-night inspectors who are not educated will weed themselves out of business by providing poor quality work.
Senator Pilcher-Cook noted, in the service industry, businesses develop a reputation by word-of-mouth from the quality level of service provided by the business.
Senator Rucker asked Mr. Reeder his opinion about a bill that would require home inspectors to carry some form of Errors and Omission (E&O) insurance. Mr. Reeder responded he agreed home inspectors should carry E&O insurance.
Chairperson Lynn recognized Dan Bowers, Holmes Inspection Company, who provided testimony in opposition to the bill. In about 2000 or 2001, the National Association of Realtors set a long range legislative goal for getting home inspectors licensed or regulated in every state. Their attorneys felt if inspectors were licensed and something went wrong with the transaction, the real estate agents were less likely to be brought into a lawsuit. Mr. Bowers noted there is no state-wide licensure of tradesmen like builders, electricians, plumbers, sewer line inspectors, roof inspectors, etc. nor a state-wide building code or code enforcement. There is no significant difference between licensed or unlicensed home inspectors. (Attachment 4) (Attachment 5) (Attachment 6)
Chairperson Lynn recognized John Lyle, Professional Engineering Inspections, Inc., who provided testimony in opposition to the bill. Licensed professional engineers are and have been allowed to perform home inspections and are regulated by the Kansas State Board of Technical Professions when performing such inspections. During the previous legislative process, it was decided that licensed engineers would not be required to register with the Kansas Home Inspection Registration Board. He requested that Section 12 of the bill be clarified of any ambiguity that would imply that licensed professional engineers have to be registered as a home inspector under SB 168 in order to perform a home inspection. In addition, he requested that Section 14 be clarified such that licensed professional engineers may present themselves as a home inspector, use titles that identify them as a home inspector, and perform a home inspection without being registered as a home inspector under SB 168. (Attachment 7)
Chairperson Lynn recognized Ralph Pimental, National Building Consultants, Inc., who provided testimony neutral to the bill. Mr. Pimental indicated he has been a proponent of building regulations that assure the construction of safe, reliable, and sustainable buildings for the public, and has been directly involved in establishing licensing programs for contractors and individuals actively participating in the building industry. His testimony included suggestions on how to improve upon the outcome of the bill. With regards to any consideration of an exemption for engineers and architects licensed by the state of Kansas, it should be noted that one and two family dwellings are specifically excluded from the scope of an engineer or architect license. None of the provisions of a state engineer or architect license apply to a residential home inspection. He questioned whether the administration of the statute can be funded with revenue generated from the licensing fees. He noted a frequent complaint from the real estate industry is is the lack of consistency within the home inspection industry. This statute would not eliminate the disparity between one inspector's opinion and another inspector's opinion. (Attachment 8)
There was no written only testimony in support of the bill.
Written only testimony in opposition to the bill was provided by:
Scott Uhl, P.E., Kansas Society of Professional Engineers (Attachment 9)
Gary Martin, Integrity Building Inspections (Attachment 10)
Craig Lester, Lester Inspection Services, Inc. (Attachment 11)
Jeff Glendening, State Director, Americans for Prosperity - Kansas (Attachment 12)
Written only testimony neutral to the bill was provided by:
Scott Anglemyer, Executive Director, Kansas Association of Community Action Programs (Attachment 13)
Chairperson Lynn closed the hearing on SB 168.
