HOUSE BILL No. 4076

 

January 27, 2005, Introduced by Rep. Accavitti and referred to the Committee on Regulatory Reform.

 

      A bill to amend 1980 PA 299, entitled

 

"Occupational code,"

 

by amending section 303a (MCL 339.303a), as amended by 1995 PA

 

183, and by adding article 14.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 303a. The terms provided for in this act shall commence

 

 2  on the following dates:

Accountancy                                 July 1

Architects                                  April 1

Athletic board of control                   April 1

Barbers                                     October 1

Collection agencies                         July 1

Community planners                          July 1


Cosmetology                                 January 1

Employment agencies                         October 1

Foresters                                   April 1

Hearing aid dealers                         October 1

5  Home inspectors                             July 1

Land surveyors                              April 1

Landscape architects                        July 1

Marriage counselors                         October 1

Mortuary science                            July 1

10 Nursing home administrators                 January 1

11 Professional engineers                      April 1

12 Real estate appraisers                      July 1

13 Real estate brokers and salespersons        July 1

14 Residential builders                        April 1

15 Social workers                              October 1

16                            ARTICLE 14

 

17        Sec. 1401. As used in this article:

 

18        (a) "Accessories" means appliances that are fixtures in the

 

19  residence. Accessories include built-in appliances and vacuum

 

20  systems but do not include a security system.

 

21        (b) "Client" means the person on whose behalf a home

 

22  inspector is acting.

 

23        (c) "Electrical system" means the total system in a

 

24  residence that facilitates the flow of electricity beginning with

 

25  the main panel and extending to the subpanels and including

 

26  branch circuits, and directly wired electrical and lighting

 

27  fixtures.

 

28        (d) "Foundation" means 1 or more of the following upon which

 

29  a residence is placed:

 


 1        (i) Slab.

 

 2        (ii) Crawl space.

 

 3        (iii) Basement.

 

 4        (iv) Piers.

 

 5        (e) "Heating and air conditioning system" means a separate

 

 6  or combined system used to distribute or radiate heat or cool air

 

 7  throughout all or part of a residence. The radiation or

 

 8  distribution of heat may be accomplished by means of a central

 

 9  heat source or thermostatically controlled heat sources in 1 or

 

10  more rooms of a residence. Air conditioning does not include a

 

11  unit mounted in a wall or a window unless the unit utilizes ducts

 

12  to distribute the air.

 

13        (f) "Home inspector" means a person engaged in, or offering

 

14  to engage in, the business of providing home inspection services

 

15  but does not include any of the following:

 

16        (i) A person acting on behalf of a local, state, or federal

 

17  governmental unit or agency conducting an inspection or

 

18  investigation concerning compliance with either or both of the

 

19  following:

 

20        (A) Health or safety laws or regulations.

 

21        (B) Construction or building laws, codes, or regulations.

 

22        (ii) A person licensed, registered, or certified under 1 or

 

23  more of the following while conducting an inspection that is

 

24  reasonably related to a task or prospective task within the scope

 

25  of licensure, registration, or certification:

 

26        (A) Article 20.

 

27        (B) Article 24.

 


 1        (C) Article 25.

 

 2        (D) Article 26.

 

 3        (E) The state plumbing act, 2002 PA 733, MCL 338.3511 to

 

 4  338.3569.

 

 5        (F) The electrical administrative act, 1956 PA 217, MCL

 

 6  338.881 to 338.892.

 

 7        (G) The Forbes mechanical contractors act, 1984 PA 192, MCL

 

 8  338.971 to 338.988.

 

 9        (g) "Home inspection services" means services provided to a

 

10  client, for consideration, that are designed to identify and

 

11  disclose the functional condition of the major systems and

 

12  accessories in a residence at the time of the inspection. Home

 

13  inspection services do not include an inspection designed only to

 

14  disclose any of the following:

 

15        (i) Compliance with local, state, or federal building or

 

16  construction laws, codes, or regulations.

 

17        (ii) Compliance with local, state, or federal health and

 

18  safety laws or regulations.

 

19        (iii) The presence or absence of pests, termites, or other

 

20  vermin or damage resulting from the presence of pests, termites,

 

21  or vermin.

 

22        (h) "Major deficiency" means a defect in 1 or more major

 

23  systems or accessories that may cause the reasonable likelihood

 

24  of harm to the safety of the occupants so as to require their

 

25  evacuation of the residence for more than 3 days or that may

 

26  result in the reasonable likelihood of a major system or

 

27  accessory becoming nonoperational.

 


 1        (i) "Major system" means any 1 of the following:

 

 2        (i) Electrical system.

 

 3        (ii) Heating and air conditioning system.

 

 4        (iii) Plumbing system.

 

 5        (iv) Structure and foundation.

 

 6        (j) "Plumbing system" means that system regulating the

 

 7  inward and outward flow of water and sewage in a residence and

 

 8  includes, but is not limited to, water heaters, fixtures,

 

 9  faucets, valves, and pipes. Plumbing does not include wells,

 

10  septic systems, water softeners, or sump pumps unless included in

 

11  writing in the contract for home inspection services.

 

12        (k) "Residence" means a building used primarily for family

 

13  living quarters and designed for occupancy of not more than 4

 

14  families in separate living quarters.

 

15        (l) "Structure" means the walls, windows, doors, and roof on

 

16  the exterior of a residence and the walls, ceilings, floors,

 

17  windows, and doors on the interior of a residence.

 

18        Sec. 1402. There is created a home inspectors board.

 

19        Sec. 1403. (1) Beginning the effective date of the rules

 

20  promulgated by the department under subsection (2), an individual

 

21  shall not provide, or offer to provide, home inspection services

 

22  unless licensed under this article or unless the individual or

 

23  services are exempted from licensure under this article as

 

24  described in section 1401(f)(i) or (ii). An individual shall not

 

25  use the term "home inspector" or any other similar title that

 

26  connotes licensure under this article.

 

27        (2) Within 180 days after the effective date of this

 


 1  article, the department shall promulgate rules to set minimum

 

 2  standards for education and experience regarding eligibility for

 

 3  licensure under this article. The department, in consultation

 

 4  with the board, may promulgate rules to set standards for

 

 5  examination of applicants who do not meet the education and

 

 6  experience standards described in the rules promulgated under

 

 7  this subsection.

 

 8        (3) The department shall license an individual as a home

 

 9  inspector if the individual is licensed or otherwise regulated in

 

10  another state that has substantially the same standards for

 

11  licensure as this state, as determined by the board, and that

 

12  offers reciprocity to licensees in this state.

 

13        Sec. 1404. (1) Beginning the effective date of this article,

 

14  an individual providing or offering to provide home inspection

 

15  services shall comply with the requirements of this section and

 

16  section 1405.

 

17        (2) A home inspector who enters into a contract for home

 

18  inspection services that is not in conformance with this article

 

19  is subject to an action for damages brought by the client or

 

20  suspension or revocation of his or her license, or both.

 

21        (3) A home inspector shall inspect those major systems and

 

22  accessories of a residence that are the subject of a contract for

 

23  home inspection services only to the extent that those major

 

24  systems and accessories are readily accessible and visible to the

 

25  home inspector. A home inspector shall indicate in writing any

 

26  accessory or major system, or any part of an accessory or major

 

27  system, that was not able to be inspected and the reasons for the

 


 1  inability to inspect.

 

 2        (4) A home inspector who inspects a residence shall not

 

 3  repair or offer to repair a residence that was the subject of

 

 4  home inspection services provided by that home inspector unless

 

 5  the repair is pursuant to a home warranty provided by the home

 

 6  inspector.

 

 7        (5) The home inspector shall disclose whether he or she, an

 

 8  employee or agent, or an immediate family member has an ownership

 

 9  interest in the residence being inspected.

 

10        (6) A home inspector shall disclose whether he or she, an

 

11  employee or agent, or an immediate family member is a member of a

 

12  board of directors of, or an officer of, an entity that has an

 

13  ownership interest in the residence being inspected.

 

14        (7) A home inspector shall furnish to the client a document

 

15  entitled "disclosure statement", which shall be presented at the

 

16  time the written home inspection report is conveyed to the client

 

17  and shall contain, at a minimum, both of the following:

 

18        (a) The scope of the home inspection services with a

 

19  detailed description of the major systems and accessories to be

 

20  inspected, the type of major deficiencies the home inspection is

 

21  designed to reveal, and items that are excluded from coverage

 

22  under the contract of home inspection services.

 

23        (b) A statement that a home inspector inspecting a

 

24  particular residence shall not repair or offer to repair a

 

25  residence that was the subject of home inspection services

 

26  provided by that home inspector unless the repair is pursuant to

 

27  a home warranty provided by the home inspector.

 


 1        Sec. 1405. (1) A contract for home inspection services shall

 

 2  be in writing, executed by the home inspector and either the

 

 3  client or the client's agent, and in conformance with subsection

 

 4  (4). A copy of the executed contract for home inspection services

 

 5  shall be provided to the client at the time of its execution.

 

 6        (2) All terms of the contract for home inspection services

 

 7  shall be contained in the written contract except that conditions

 

 8  of the residence affecting the home inspector's ability to

 

 9  conduct a home inspection shall be noted in a separate document

 

10  attached to the contract. Any changes or modifications of the

 

11  terms of the contract for home inspection services shall be

 

12  reduced to writing.

 

13        (3) Unless otherwise indicated in writing, the purchaser of

 

14  a residence being inspected is considered the client in the case

 

15  of a home inspection conducted as part of a sale of the

 

16  residence.

 

17        (4) The following shall be contained in a contract for home

 

18  inspection services:

 

19        (a) A description of the home inspection services to be

 

20  provided.

 

21        (b) Any disclaimers including, but not limited to, the

 

22  absence of any warranties as to the adequacy of future

 

23  performance of a major system or accessory and the fact that the

 

24  home inspection is considered a valid assessment of the condition

 

25  of the residence only as of the date the home inspection was

 

26  conducted.

 

27        (c) Any exclusion of defects not reasonably apparent by

 


 1  visual inspection.

 

 2        (d) Any exclusion of any major system or accessory not

 

 3  operable at the time of the conduct of the home inspection.

 

 4        (5) After performing home inspection services, a home

 

 5  inspector shall provide to the client a written home inspection

 

 6  report containing the results of the home inspection. The home

 

 7  inspection report shall include a list of the major systems or

 

 8  accessories inspected and any major systems or accessories not

 

 9  inspected. The home inspector shall list in the report any

 

10  conditions affecting or limiting the ability of the home

 

11  inspector to provide home inspection services pursuant to the

 

12  contract.

 

13        (6) The home inspection report shall include the following

 

14  statements:

 

15        (a) That defects not reasonably apparent by visual

 

16  inspection are excluded.

 

17        (b) That a major system or accessory not operable at the

 

18  time of the conduct of the home inspection is excluded.

 

19        (7) The home inspector shall indicate in the written home

 

20  inspection report the fact that the home inspection is considered

 

21  a valid assessment of the condition of the residence only as of

 

22  the date the home inspection was conducted.

 

23        (8) A home inspector shall retain a copy of the contract for

 

24  home inspection services and the written home inspection report

 

25  for at least 3 years after the date of the report.

 

26        Sec. 1406. (1) A client suffering damages due to a violation

 

27  of this article may bring an action for damages in a court of

 


 1  competent jurisdiction.

 

 2        (2) The remedies under this article are cumulative and the

 

 3  use of 1 remedy does not bar the use of any other remedy provided

 

 4  by law.

 

 5        Enacting section 1.  This amendatory act does not take

 

 6  effect unless Senate Bill No.____ or House Bill No. 4077(request

 

 7  no. 00658'05 a) of the 93rd Legislature is enacted into law.

 

 8        Enacting section 2.  This amendatory act takes effect

 

 9  October 1, 2005.