Home Inspectors License Law.

Existing law regulates a person who performs certain home inspections for a fee in connection with a transfer of real property. Existing law provides that it is the duty of a home inspector who is not licensed as a general contractor, structural pest control operator, or architect, or registered as a professional engineer to conduct a home inspection with the degree of care that a reasonably prudent home inspector would exercise. Under existing law, contractual provisions that purport to waive this duty, or limit the liability of the home inspector to the cost of the home inspection report, are contrary to public policy and invalid. Existing law prohibits commencement of a legal action for breach of duty arising from a home inspection report more than 4 years from the date of the inspection. Under existing law, certain activities by a home inspector or a company that employs a home inspector constitute unfair business practices. This bill, commencing January 1, 2023, would enact the Home Inspectors License Act, which would revise and recast those provisions, and would make various substantive changes. The bill would establish the Bureau of Home Inspectors in the Department of Consumer Affairs. The bill would also establish the position of Chief of the bureau and would require the chief to administer the licensing program for home inspectors, as provided. The bill would delete the provisions concerning a home inspector's duty of care and unlawful business practices. The bill would authorize the chief to investigate the actions of any applicant for a home inspector license or a home inspector within the state and to administer specified disciplinary actions if the applicant or licensee commits an act or omission constituting cause for disciplinary action, including a willful departure in any material respect, except as provided, from accepted standards of practice and codes of ethics. The bill would require a complaint against a licensee alleging commission of any act or omission that may constitute grounds for legal action to be filed in writing with the chief within 4 years of the alleged act or omission. This bill would establish the Home Inspectors License Fund, and would require all fees, fines, and penalties collected pursuant to these provisions to be deposited into the fund, which the bill would make available for administration of these provisions, upon appropriation by the Legislature. The bill would authorize the bureau to set reasonable fees according to a specified fee schedule. This bill would require the chief to adopt regulations governing the process of applying for a license and any conditions on the maintenance of a license once issued, as provided. The bill would prohibit a person from acting or holding oneself out as a home inspector, by advertisement or otherwise, unless that person is licensed in accordance with the act, except as specified. The bill would make a willful violation of this provision a public offense punishable by imprisonment, by a fine not exceeding $10,000, or by both imprisonment and fine. By creating a new crime, the bill would impose a state-mandated local program. This bill would make additional conforming changes. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.