815 KAR 6:010. Home inspector licensing requirements and maintenance of records.

GENERAL GOVERNMENT CABINET

Kentucky Board of Home Inspectors

(Amended After Comments)

815 KAR 6:010. Home inspector licensing requirements and maintenance of records.

RELATES TO: KRS 198B.700, KRS 198B.706, KRS 198B.712, KRS 198B.714, KRS 198B.716, KRS 198B.722, KRS 198B.724[~~, EO 2009-535~~]

STATUTORY AUTHORITY: KRS 198B.706, KRS 198B.722(7)[~~, EO 2009-535~~]

NECESSITY, FUNCTION AND CONFORMITY: KRS 198B.706(1) and (15) require the Kentucky Board of Home Inspectors to promulgate administrative regulations necessary to enforce the provisions of KRS 198B.700 to 198B.738 and to establish requirements for licensing and certification as well as prescribing forms and applications. KRS 198B.706(7) requires the board to inspect the records of a licensee. KRS 198B.706(11) requires the board to establish continuing education requirements. KRS 198B.722 requires the board to set the requirements for renewal of licenses and authorizes the board to establish an inactive license.[ EO 2009-535, effective June 12, 2009, reorganized the Office of Housing, Buildings and Construction as the Department of Housing, Buildings and Construction, and established the commissioner, rather than executive director, as the head of the department. ] This administrative regulation establishes the licensure and record requirements for home inspectors.

Section 1. Definitions. (1) "Applicant" is defined by KRS 198B.700(1).

(2) "Board" is defined by KRS 198B.700(2).

(3) "Contact hour" means fifty (50) minutes of instruction, exclusive of any breaks, recesses, or other time not spent in instruction.

(4)~~(3)~~ "Licensee" is defined by KRS 198B.700(8).

Section 2. Application Requirements. (1) An applicant for a home inspector license shall submit the following:

(a) A completed Application for Initial Licensure as a Kentucky Home Inspector, Form KBHI 1;

(b) A 2 in. x 2 in. passport photograph affixed to the application form;

(d) A certificate of insurance;

(e) If applicable, other state or local licensure, certification, registration, or permit;

(f) A report with the results of the state-wide background check; and

(g) A nonrefundable fee of $250.

(2) An applicant for a home inspector license shall:

(a) Complete and pass a board-approved, prelicensing training course administered by a provider who has been approved by the board in accordance with 815 KAR 6:040 and subsection (8) of this section; and

(b) Pass an examination conducted by a board-approved test provider.

(3) A request to sit for the examination shall be made directly to the test provider.

(4) The examination fee shall be set by the testing company and shall be paid directly to the test provider.

(5) A passing score on the examination shall be valid for a period of three (3) years.

(6) Failing the examination.

(a) An applicant who fails to pass the examination two (2) times shall wait at least fourteen (14) calendar days from the date of the second failed examination prior to retaking the examination.

(b) An applicant who fails to pass the examination three (3) or more times shall wait at least thirty (30) calendar days from the date of the third or subsequent failed examination failed examination prior to retaking the examination.

(c ) An applicant who fails to pass the examination three (3) times shall not be eligible to retake the examination until the applicant has again completed and again passed the prelicensing training course required by Section 2(2)(a) of this administrative regulation before retaking the examination a fourth (4th) time, and also for each subsequent examination failure thereafter.

(7) Procedures and conduct.

(a) The applicant shall follow:

1. Procedures and appropriate conduct established by the board or testing service administering an examination if the procedures and conduct requirements are provided or made available to each applicant or orally announced before the start of the examination; and

2. Written instructions communicated prior to the examination date and any instructions communicated at the testing site, either written or oral, on the date of the examination.

(b) Failure to comply with all procedures established by the board or the testing service with regard to conduct at the examination shall be grounds for denial of the application.

(8) Course requirements. To be approved by the board, a prelicensing training course shall require a minimum of:

(a) Sixty-four (64) credit hours of training in the following subject areas for at least the number of hours specified:

1. Manufactured housing: three (3) hours;

2. Standards of practice, licensing law and administrative regulations, contracts, report writing, and communications: eleven (11) hours;

3. Exterior, roofing, insulation, and ventilation: six (6) hours;

4. Structure and interior: nine (9) hours;

5. Electrical and plumbing: nine (9) hours;

6. Heating and air conditioning: six (6) hours;

7. Field training: sixteen (16) hours, including not more than eight (8) hours in a laboratory;

8. General residential construction: three (3) hours; and

9. Environmental hazards, mitigation, water quality, and indoor air quality: one (1) hour;

(b) The completion of three (3) unpaid home inspections with satisfactory written reports submitted to the course provider in addition to the sixteen (16) hours of field training required by paragraph (a)7 of this subsection; and

(9) Criminal background checks and other disciplinary proceedings.

(a) Each applicant shall undergo a state-wide criminal background check administered by a law enforcement agency capable of conducting a state-wide background check and submit the results of the check along with the applicant’s application.

(b) If an applicant has resided in a state for less than five (5) years prior to application, the applicant shall also obtain and submit a state-wide criminal background check by a law enforcement agency capable of conducting a state-wide background check from the state where the applicant previously resided.

1. Has pleaded guilty to or has been convicted of a:

a. Felony;

b. Misdemeanor[~~involving theft or dishonesty; or~~

~~c. Sex offense~~]; or

2. Has had disciplinary action taken against a professional license, certificate, registration, or permit held by the applicant or licensee in any jurisdiction or state, including Kentucky.

Section 3. Reciprocity. An applicant seeking a license through reciprocity in accordance with KRS 198B.714 shall:

(1) Submit a completed Application for Initial Licensure as a Kentucky Home Inspector, Form KBHI 1, and attachments established in Section 2(1)(b) through (f) of this administrative regulation;

(2) Pay a nonrefundable fee of $250; and

(3) Meet the conditions of KRS 198B.714(1).

Section 4. Nonresident Licensees. A nonresident licensee shall:

(1) Submit a completed Application for Initial Licensure as a Kentucky Home Inspector, Form KBHI 1, and attachments established in Section 2(1)(b) through (f) of this administrative regulation;

(2) Pay the fee established in Section 2(1)(b) of this administrative regulation; and

(3) Comply with the provisions set forth in KRS 198B.716 and this administrative regulation.

Section 5. Renewal of Licenses. In addition to the requirements set forth in KRS 198B.722, to renew a license, the licensee shall:

(1) Satisfy the continuing education requirements of Section 7 of this administrative regulation;

(2) Pay a nonrefundable renewal fee of $200[~~$250~~] per year for each license that expires on or after July 1, 2012, to and including June 30, 2014, or;

(3) Pay a nonrefundable renewal fee of $250 per year for each license that expires on or after July 1, 2014;

(4)[~~(3)~~] Submit a fully-completed Application for Renewal of Kentucky Home Inspector License, Form KBHI 2 and attachments, including:

(a) A certificate of completion for continuing education;

(b) A certification of insurance information;

(d) A state-wide criminal background check; and

(5)[~~(4)~~] Submit a copy of a completed inspection report that has been compiled within the previous twelve (12) months immediately preceding renewal.

Section 6. Continuing Education. (1) The continuing education requirements of this section shall apply only to those licensees who will have been licensed at least twelve (12) months at license renewal.

(2) Each licensee shall be required to have at least fourteen (14) hours of continuing education per license year.

(3) Prior to any renewal, the continuing education shall include a minimum of the following:

(a) Three (3) hours in manufactured housing;

(b) Three (3) hours in Kentucky laws and administrative regulations; and

(c) Eight (8) hours in technical courses, including identification, determination, and report writing as applicable within the standards of practice

(4) Continuing education shall be obtained from those providers approved by the board as provided in 815 KAR 6:040.

(5) An approved prelicensing course shall to satisfy the initial fourteen (14) hour continuing education requirement.

(6) A maximum of three (3) hours per license year shall be awarded for teaching part of a home inspection credit course or home inspection continuing education course as applied to the appropriate content area set forth in Section 3(a)-( c) of this administrative regulation.

(7) A maximum of three (3) hours per license year shall be awarded for appointment to the Board for a board member who is licensed and who has attended not less than eighty-per cent (80%) of the board meetings each license year as applied to the content area set forth in Section 3(b) of this administrative regulation.

Section 7. Inactive License. (1) Placement of a license in inactive status.

(a)1. To place a license in inactive status, a licensee shall submit a notarized statement indicating the desire to have the license placed in inactive status.

2. This notarized statement shall be mailed to the board and shall be accompanied by the following:

a. A check for ten (10) dollars made payable to the Kentucky State Treasurer;

b. The actual license card of the licensee; and

c. A current mailing address for the licensee.

(b) Licensees in inactive status shall not engage in any home inspection activities within the Commonwealth of Kentucky.

(2) Renewal of license in inactive status.

(a) A licensee with an inactive license shall pay an annual inactive status fee equal to fifty (50) percent of the current renewal fee for an active license.

(b) Failure to pay this annual fee shall result in the expiration of the license on the last day of the licensee’s birth month.

(3) Insurance coverage for licensees with inactive license. A licensee with an inactive status license shall not be required to maintain the insurance coverage required by KRS 198B.712(3)(d) during inactive status.

Section 8. Reactivation of Inactive License to Active Status. (1) A licensee who wishes to reactivate a license shall contact the board and submit a notarized statement requesting approval to return to active status.

(2) This request shall be accompanied by the following:

(a) The name of the licensee requesting activation;

(b) The license number of the licensee requesting reactivation;

(d) A current mailing address for the licensee requesting reactivation;

(e) A check in the amount of ten (10) dollars made payable to the Kentucky State Treasurer;

(f) Proof of liability insurance naming the individual in the amount of $250,000 as required by KRS 198B.712(3)(d);

(g) A state-wide criminal background check administered by a law enforcement agency capable of conducting a state-wide background check; and

(h) Proof of continuing education as required by Section 9 of this administrative regulation; and

(3) A license that has been inactive for a period of five (5) years from the date of board action shall be considered expired.

Section 9. Continuing Education Requirements for Licensees in Inactive Status Returning to Active Status. A licensee with an inactive status who wishes to reactivate the license shall complete the following continuing education requirements prior to application to return to active status:

(1) Fourteen (14) hours per year that the license has been inactive. This fourteen (14) hours shall include:

(a) Three (3) hours in manufactured housing;

(b) Three (3) hours of Kentucky law and administrative regulations; and

1. Electrical;

2. Plumbing;

3. Heating, ventilation and air conditioning;

4. Roofing; or

5. Report writing.

(2) A board approved sixty-four (64) hour prelicensing training course may be used to satisfy this requirement.

Section 10. Maintenance of Records. (1) Address.

(a) A license holder shall report a change of address to the board in writing within ten (10) days after the change.

(b) The board shall not be responsible for the license holder’s failure to receive notices, communications, and correspondence caused by the license holder’s failure to promptly notify the board of a change of address.

(2) Names.

(a) A license holder shall notify the board in writing of a name change within thirty (30) days of the change.

(b) The notification shall be accompanied by a copy of a marriage certificate, divorce decree, court order, or other documentation that verifies the name change.

(c) The board shall not be responsible for the license holder's failure to receive notices, communications, and correspondence caused by the license holder's failure to promptly notify the board of a name change.

(3) Inspection records.

(a) A licensed home inspector shall retain the following records for a period of three (3) years from the date of the inspection:

1. The written reports;

2. The contract; and

3. Supporting documentation, if applicable.

(b) Records may be retained in retrievable, electronic format.

(c) The licensee shall provide all records requested by the board within ten (10) days of receipt of the request.[~~(d) The licensee shall not destroy any records, if notified by the board that it is requesting the records.~~ ]

Section 11. Incorporation by Reference. (1) The following material is incorporated by reference:

(a) "Application for Licensure as a Kentucky Home Inspector", Form KBHI 1, 1-2012; and

(b) "Application for Renewal of Kentucky Home Inspector License", Form KBHI 2, 1-2012.

(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Office of Occupations and Professions, 911 Leawood Drive, Frankfort, Kentucky 40601,[~~Department of Housing, Buildings and Construction, 101 Sea Hero Road, Suite 100, Frankfort, Kentucky 40601-5405~~,] Monday through Friday, 8 a.m. to 5[~~4:30~~] p.m.

CONTACT PERSON: Tony Crockett, Board Administrator, Office of Occupations and Professions, 911 Leawood Drive, Frankfort, Kentucky 40601, phone (502) 564-3296, fax (502) 564-4818.

MARK SCHMIDT, Chair

APPROVED BY AGENCY: April 11, 2012

FILED WITH LRC: April 11, 2012 at 4 p.m.

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

Contact Person: Tony Crockett

(1) Provide a brief summary of:

(a) What this administrative regulation does: This amended administrative regulation sets forth the requirements for an initial applicant for licensure as a home inspector, the reciprocity requirements for licensure by reciprocity, the nonresident requirements for nonresident licensure, the requirements for an applicant to renew licensure, the required continuing education standards, inactive licenses, reactivation of inactive licenses, continuing education requirements for reactivation of inactive licenses, and maintenance of records.

(b) The necessity of this administrative regulation: This administrative is necessary to set the various requirements for licensure as a home inspector.

(c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 198B.706, KRS 198B.722(7) allow the Board to set various requirements for licensure. The Board is amending this administrative regulation establishing the various requirements for licensure as a home inspector.

(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This amended administrative regulation establishing the various requirements for licensure as a home inspector.

(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

(a) How the amendment will change this existing administrative regulation: This amended administrative regulation will change the criminal convictions that may be grounds for denial of licensure, sets the amount of hours for continuing education obtained from teaching approved courses, limits the number of times an applicant has to pass the required examination, and reduces the renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(b) The necessity of the amendment to this administrative regulation: This amended administrative regulation is necessary to update these applicable standards and to reduce renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(c) How the amendment conforms to the content of the authorizing statutes: This amended administrative regulation conforms to the content of the authorizing statutes by establishing the requirements for licensure, continuing education, and reducing renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(d) How the amendment will assist in the effective administration of the statutes: This amended administrative regulation will assist in the effective administrative of the statutes by updating the established requirements for licensure, continuing education, and reducing renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Approximately 350 licensed home inspectors and potential applicants for a license as a home inspector.

(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: This amended administrative regulation updates the established requirements for licensure, continuing education, and reduces the renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): The cost to the entities identified will remain the same for initial applicants and will be reduced for renewals of existing licensees of the Board. A very few licensees of the Board may have slight increased costs by limiting the number of hours available to satisfy the continuing education requirements for hours received by teaching applicable courses

(c) As a result of compliance, what benefits will accrue to the entities identified in question (3): The benefits include updating the established standards and reducing the renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:

(a) Initially: $1,000 or more based on the administrative costs to the Board to issue and to renew licenses.

(b) On a continuing basis: $1,000 or more based on the administrative costs to the Board to issue and to renew licenses.

(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: The Board’s operation is funded by fees paid by the licensees and applicants.

(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment: This amended administrative regulation reduces the renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: This amended administrative regulation reduces the renewal fees for the Fiscal Year July 1, 2012, to June 30, 2014.

(9) TIERING: Is tiering applied? No, this amended administrative regulation applies to all applicants for a license and to all applicants for renewal of licensure.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)? Yes.

2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? Kentucky Board of Home Inspectors.

3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 198B.706, KRS 198B.722(7)

4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.

(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? Approximately $70,000 from both applicants for an initial license and license renewals.

(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? Approximately $70,000 from both applicants for an initial license and license renewals.

(d) How much will it cost to administer this program for subsequent years? $70,000

Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

Revenues (+/-):

Expenditures (+/-):

Other Explanation: