Legislature(2003 - 2004)

01/29/2003 03:15 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 9-HOME INSPECTORS/CONTRACTORS                                                                                              
                                                                                                                                
Number 0055                                                                                                                     
                                                                                                                                
CHAIR ANDERSON  opened the hearing on  HOUSE BILL NO. 9,  "An Act                                                               
relating  to the  registration of  individuals  who perform  home                                                               
inspections; relating  to regulation of contractors;  relating to                                                               
registration  fees for  specialty  contractors, home  inspectors,                                                               
and  associate  home  inspectors;  relating  to  home  inspection                                                               
requirements for  residential loans purchased or  approved by the                                                               
Alaska Housing Finance Corporation;  relating to civil actions by                                                               
and against  home inspectors  and to  civil actions  arising from                                                               
residential  unit inspections;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
Number 0120                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG, sponsor  of  HB 9,  explained that  the                                                               
bill  has been  heard by  the House  Labor and  Commerce Standing                                                               
Committee twice in  past legislative sessions.  He  noted that HB                                                               
9  establishes  a method  of  licensure  for the  home  inspector                                                               
profession in Alaska.  The  intention is to protect consumers and                                                               
the  home inspection  industry by  requiring the  registration of                                                               
home inspectors.   Currently anybody  can call  himself/herself a                                                               
home  inspector.   For  many  consumers,  buying  a home  is  the                                                               
largest investment of their entire  life.  This bill relates only                                                               
to  residential  real  estate;   it  does  not  cover  commercial                                                               
property.   Home inspection is  becoming very commonplace.   Many                                                               
lenders  require home  inspections as  a condition  for making  a                                                               
loan.   Lenders have been the  primary force behind this  type of                                                               
occupational licensing.   In addition, real  estate practitioners                                                               
are  trying   to  protect  themselves  from   the  liability  for                                                               
misrepresenting the condition of a property.                                                                                    
                                                                                                                                
REPRESENTATIVE  ROKEBERG testified  that  all parts  of the  real                                                               
estate transaction are  currently regulated in Alaska.   The sale                                                               
of a  home in Alaska,  even by  a private individual,  requires a                                                               
disclosure  of the  residence's condition.   Home  inspectors can                                                               
help determine if there are any  defects in the home prior to the                                                               
closing of  a real estate  transaction.  Typically, if  there are                                                               
problems  identified with  a residence,  repairing those  defects                                                               
becomes part of  the bargaining process and  often influences the                                                               
final  price.   Registering  home  inspectors  helps prevent  the                                                               
"buyer beware" situation.                                                                                                       
                                                                                                                                
Number 475                                                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG  continued that this  legislation applies                                                               
to inspections  on existing homes  as well as new  homes financed                                                               
by  the Alaska  Housing  Finance Corporation  (AHFC).   New  home                                                               
inspections  are  subject  to  provisions  of  the  International                                                               
Conference of  Building Officials  (ICBO).  Many  home inspectors                                                               
have  certifications  to inspect  both  new  and existing  homes.                                                               
Additionally,  the  bill  exempts some  professionals  from  this                                                               
licensing  law,   for  example,  architects  and   engineers  and                                                               
municipal building  inspectors.   The bill identifies  two levels                                                               
of licensees:   the home  inspector and an  entry-level associate                                                               
home inspector who must be supervised by the former.                                                                            
                                                                                                                                
REPRESENTATIVE  ROKEBERG   explained  that  in  past   years,  he                                                               
considered setting up a board  of home inspectors.  Several years                                                               
ago,  the legislature  passed [AS]  08.01.065(c), which  requires                                                               
all   occupational   licensees  to   pay   the   full  costs   of                                                               
administering their  licensing programs.   The fees  are assessed                                                               
on a biennial or two-year cycle.   When considering the option of                                                               
creating  a  separate  home inspection  board,  the  Division  of                                                               
Occupational Licensing  estimated only  100 people  would qualify                                                               
for licenses, at  a cost of $1,500 to $1,600  every two years per                                                               
person.   That fee would  have probably  increased the cost  of a                                                               
home  inspection  fee   that  is  typically  $300.     Some  home                                                               
inspectors  favored having  their own  board so  they could  have                                                               
more control over their regulation by the state.                                                                                
                                                                                                                                
Number 0786                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG explained  that he  chose the  non-board                                                               
type of  occupational license instead,  making home  inspectors a                                                               
subset  of  specialty  contractors.   Their  licensing  would  be                                                               
handled by staff  in the Division of Occupational  Licensing.  He                                                               
noted  that  the  Alaska  Home  Builders  Association  originally                                                               
proposed  this idea.   About  2,695  people are  now licensed  as                                                               
specialty  contractors,  reducing  the estimated  cost  per  home                                                               
inspector  license to  $248 per  biennial cycle  or $125  a year.                                                               
This scheme  results in  lower licensing fees  and lower  cost to                                                               
the public, and gives the  division the authority to regulate the                                                               
industry, provide sanctions, and protect the public.                                                                            
                                                                                                                                
Number 0988                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG explained  that HB  9 requires  the home                                                               
inspector to  pass an exam by  a national trade organization.   A                                                               
home inspector can  register to inspect new or  existing homes or                                                               
both.  He noted that HB  9 requires a pre-inspection document and                                                               
a  written inspection  report.   The  bill  makes the  inspection                                                               
report  valid for  six months,  a provision  that recognizes  the                                                               
limitations of winter inspections  and the physical damage caused                                                               
by the  state's severe climate.   He  will offer an  amendment to                                                               
change the  six months to 180  days, he told members,  because it                                                               
is easier to count days.                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG described  other provisions of HB  9.  It                                                               
gives  the Division  of Occupational  Licensing the  authority to                                                               
require  continuing  education,  a  requirement  common  to  most                                                               
occupational   licenses.     This  bill   establishes  fees   for                                                               
registration, renewals  and examination fees.   The bill mandates                                                               
a surety bond  of $5,000, and directs claims against  the bond to                                                               
the small-claims section of District Court.                                                                                     
                                                                                                                                
Number 1195                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG described  the current  problem of  home                                                               
inspection  reports  that  circulate   far  beyond  the  original                                                               
purchaser.  In order to  control the distribution of this report,                                                               
HB 9 provides  that the report cannot be used  by anybody without                                                               
the written permission  of the person who bought the  report.  In                                                               
addition,  a person  cannot bring  legal action  based on  a home                                                               
inspection report  unless he  or she has  written consent  to use                                                               
it.   The bill sets the  statute of limitations for  legal claims                                                               
at  two years  for  new homes  and one  year  on existing  homes;                                                               
otherwise, the statute  of limitations on contracts  in Alaska is                                                               
three years.                                                                                                                    
                                                                                                                                
Number 1401                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  defined a  home inspection as  a visual,                                                               
general inspection of the residence.   It is not an analysis of a                                                               
specific component  of a home,  such as  a roof or  a foundation.                                                               
An  inspection   report  may  identify   problems,  such   as  "a                                                               
foundation which appears to have  problems," which should then be                                                               
reviewed separately by an engineer or other expert.                                                                             
                                                                                                                                
REPRESENTATIVE   ROKEBERG  testified   that  under   HB  9,   the                                                               
department  can   conduct  investigations  and   issue  citations                                                               
against a  home inspector for  violations.  The  bill establishes                                                               
workers'  compensation insurance  and  requires public  liability                                                               
and property damage  insurance.  He said the  bill has relatively                                                               
low  insurance  requirements:     $20,000  for  property  damage,                                                               
$50,000  for injury,  and $100,000  for  injury including  death.                                                               
The legislature  does not mandate  errors-and-omissions insurance                                                               
for occupational licensees  because of its high  cost and because                                                               
it is often not available.                                                                                                      
                                                                                                                                
Number 1677                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said that some  provisions of HB 9 relate                                                               
to AHFC.   Section 40 of the bill repeals  AS 18.56.300(c) of the                                                               
Alaska Housing Finance Corporation  statute because its standards                                                               
for gross  negligence are  so difficult  to prove  in court.   He                                                               
said  this  existing  standard  makes  it  nearly  impossible  to                                                               
litigate against  an inspector  of an  AHFC-financed home.   This                                                               
legislation repeals that  provision and allows a  person to bring                                                               
legal action in superior court  against a licensed home inspector                                                               
for misfeasance.                                                                                                                
                                                                                                                                
Number 1800                                                                                                                     
                                                                                                                                
RICK  URION,   Director,  Division  of   Occupational  Licensing,                                                               
Department of  Community &  Economic Development,  testified that                                                               
the division  does not  have an  official position on  HB 9.   He                                                               
said that division staff has  worked with Representative Rokeberg                                                               
on previous versions  of the legislation; they  believe the bill,                                                               
if passed, will accomplish the goals of the sponsor.                                                                            
                                                                                                                                
Number 1880                                                                                                                     
                                                                                                                                
JOHN  BITNEY,  Lobbyist  for  the   Alaska  State  Home  Builders                                                               
Association, offered general support for  HB 9.  Although he said                                                               
the group does not yet have a  position paper on the bill, it did                                                               
support  last  session's  legislation,  and  this  bill  is  very                                                               
similar.                                                                                                                        
                                                                                                                                
Number 1930                                                                                                                     
                                                                                                                                
STEVE   CLEARY,  Executive   Director,  Alaska   Public  Interest                                                               
Research Group (AkPIRG), said his  group followed the legislation                                                               
last year as well.  The group's  support of HB 9 is contingent on                                                               
several  minor  changes.   He  recommended  increasing  the  bond                                                               
amount for both contractors and  home inspectors from the $10,000                                                               
and $5,000, respectively,  proposed in the bill.   The remodeling                                                               
or  construction of  a house  can cost  several hundred  thousand                                                               
dollars, and he  said he believes these bond levels  are too low.                                                               
He also  said the period of  liability [one year for  an existing                                                               
home and  two years for  a new home]  is too  short.  He  said he                                                               
would like to hear testimony from homebuilders.                                                                                 
                                                                                                                                
Number 2010                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  responded that  the amount of  the bonds                                                               
is part  of the specialty-contractor licensing  statute, and that                                                               
he is reluctant to overhaul that system.                                                                                        
                                                                                                                                
Number 2103                                                                                                                     
                                                                                                                                
ROBERT   MILLER,  Chair,   State   Board   of  Registration   for                                                               
Architects,  Engineers,   and  Land   Surveyors,  spoke   to  the                                                               
provisions  of HB  9 that  exempt architects  and engineers  from                                                               
registering  as home  inspectors.   He pointed  out a  problem on                                                               
page 15,  lines 13-18.   Mr. Miller said architects  or engineers                                                               
must by current law affix  their seals, sign the written reports,                                                               
and add their  registration numbers.  But HB 9  allows the person                                                               
to either  seal or sign  the report.   He said  that a seal  is a                                                               
mechanical or electronic stamp; it must be signed to be valid.                                                                  
                                                                                                                                
Number 2316                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  said he appreciated this  suggestion and                                                               
that he would incorporate it into a conceptual amendment.                                                                       
                                                                                                                                
TAPE 03-3, SIDE B                                                                                                             
Number 2375                                                                                                                     
                                                                                                                                
FRANCO   VENUTI,   Homer,   introduced   himself   as   an   ICBO                                                               
(International  Conference  of Building  Inspectors)  combination                                                               
dwelling  inspector,  an  FHA  (Federal  Housing  Administration)                                                               
compliance inspector,  and a VA [Department  of Veterans Affairs]                                                               
compliance inspector.  He said  he inspects both new and existing                                                               
homes  in the  Homer  and Kenai  Peninsula areas.    He has  been                                                               
working in the  industry for 35 years and  inspecting homes since                                                               
1992.                                                                                                                           
                                                                                                                                
MR. VENUTI  testified that no  one in the inspection  industry is                                                               
in favor of the additional cost  and regulation of this bill.  He                                                               
asked whether other committee members  have heard complaints from                                                               
consumers.   Inspectors  are not  popular  with realtors  because                                                               
they often  point out things the  seller and realtor do  not want                                                               
to hear, he asserted.                                                                                                           
                                                                                                                                
Number 0495                                                                                                                     
                                                                                                                                
MR. VENUTI  listed his objections  to HB 9.   He said  he opposes                                                               
repealing AS 18.56.300(c),  the law that limits  the liability of                                                               
inspectors  to  damages  caused   by  negligence  or  intentional                                                               
misconduct.   Current law allows  inspectors to  make independent                                                               
decisions  and  frees  them  from  harassment  through  frivolous                                                               
lawsuits.    He  objected  to   the  requirement  for  continuing                                                               
education classes  from the American Society  of Home Inspectors.                                                               
Mr.  Venuti  said a  person  must  join  the society,  adding  an                                                               
additional $300 to the cost of  doing business, a cost that would                                                               
inevitably  find  its way  to  the  consumer.   Most  experienced                                                               
inspectors in the  business do not hold membership  in the group,                                                               
he  said,  and he  recommended  removing  any references  to  the                                                               
organization  from  the  bill.    Another  section  prohibits  an                                                               
inspector  accused   of  an   unresolved  complaint   from  doing                                                               
business.  He questioned the  fairness of applying this provision                                                               
to inspectors who are unfairly accused.                                                                                         
                                                                                                                                
MR. VENUTI offered  his belief that written  reports should apply                                                               
only to  existing homes.   For  new homes, he  uses an  AHFC form                                                               
that details  compliance with required  building codes.   He also                                                               
questioned  the  six-month validity  of  the  report because  the                                                               
summary  of inspection  on a  new  home stays  with the  property                                                               
indefinitely.    He  recommended   spelling  out  the  continuing                                                               
competency  requirements.    He  said AHFC  should  dictate  what                                                               
constitutes  continuing competency  for inspecting  its projects.                                                               
This bill  should regulate energy  raters because  energy ratings                                                               
are an essential part of the  inspection process for an AHFC loan                                                               
package.   Mr.  Venuti said  that engineers  are not  required to                                                               
carry insurance,  and that allowing  them to  perform inspections                                                               
sets up  two classes of  inspectors.  Permitting  other entities,                                                               
including general contractors, to  do inspections contradicts the                                                               
intent of this  bill.  He testified that HB  9 overlooks the fact                                                               
that an  exam for an  [AHFC] combined dwelling inspector  is more                                                               
exacting than the exam required in  the bill.  The cost of taking                                                               
redundant exams  adds an unnecessary  expense to the  process and                                                               
dilutes the qualification requirements.                                                                                         
                                                                                                                                
MR. VENUTI concluded by saying  that such legislation needs to be                                                               
written by members of the  inspection industry who understand the                                                               
process.                                                                                                                        
                                                                                                                                
Number 2050                                                                                                                     
                                                                                                                                
CHAIR ANDERSON invited Mr. Venuti  to put his comments in writing                                                               
and  send them  to  the  next committee  of  referral, the  House                                                               
Judiciary Standing Committee.                                                                                                   
                                                                                                                                
REPRESENTATIVE  ROKEBERG  expressed  his disappointment  that  no                                                               
other members  of the home  inspection industry  testified today.                                                               
He  said he  has worked  closely with  them and  that the  Alaska                                                               
chapter of  the American Society  of Home Inspectors grew  out of                                                               
those  meetings.     Representative  Rokeberg  agreed   with  Mr.                                                               
Venuti's  point  about  AHFC new-home  inspection  reports.    He                                                               
suggested that  AHFC could adopt  a similar form that  would meet                                                               
state law and give  AHFC a paper trail to show  that the work has                                                               
been done.                                                                                                                      
                                                                                                                                
CHAIR ANDERSON  responded to Mr. Venuti's  question about whether                                                               
any  committee  members  have heard  complaints  about  the  home                                                               
inspection industry.   He said  he has received four  comments in                                                               
favor of the bill in the last several days.                                                                                     
                                                                                                                                
Number 1887                                                                                                                     
                                                                                                                                
REPRESENTATIVE  LYNN observed  that as  an Anchorage  realtor, he                                                               
appreciates the work  of good inspectors.  He  offered his belief                                                               
that an  inspection report identifying defects  serves to protect                                                               
him,  the  buyer,  the  seller, the  mortgage  company,  and  the                                                               
general public.                                                                                                                 
                                                                                                                                
REPRESENTATIVE CRAWFORD  noted that  he has  fielded a  number of                                                               
complaints from constituents in the  past several years.  He said                                                               
he supports the bill.                                                                                                           
                                                                                                                                
Number 1777                                                                                                                     
                                                                                                                                
BILL BRADY, Legislative Chair, Anchorage  Board of Realtors, said                                                               
he  has testified  over  the past  five years  in  favor of  this                                                               
consumer  legislation.   The Alaska  Association of  Realtors and                                                               
the  Anchorage Board  of Realtors  supported similar  legislation                                                               
last year.   He  said his  organization will  send in  letters of                                                               
support for HB  9.  He said  most of his group's  members have no                                                               
problem  working  with home  inspectors;  they  do have  problems                                                               
working  with incompetent  home inspectors.   Fifty  dollars buys                                                               
[an Alaska business]  license to become a home  inspector for two                                                               
years,  and he  said problems  can erupt  in a  field so  easy to                                                               
enter.  Most consumers need someone  to evaluate a home.  He said                                                               
the American  Society of  Home Inspectors  chapter in  Alaska has                                                               
supported  this bill  and estimates  that 80-90  percent of  home                                                               
inspectors  support  this  bill.    Mr. Brady  said  he  is  very                                                               
concerned about  a growing number of  unqualified home inspectors                                                               
who  may be  grandfathered  in  under this  law.    He urged  the                                                               
committee to take action on the bill as soon as possible.                                                                       
                                                                                                                                
Number 1491                                                                                                                     
                                                                                                                                
CHAIR ANDERSON,  after asking if  anyone else wanted  to testify,                                                               
closed the public hearing.                                                                                                      
                                                                                                                                
JANET  SEITZ, Staff  to  Representative  Norman Rokeberg,  Alaska                                                               
State   Legislature,   helped  Representative   Rokeberg   answer                                                               
questions  about agency  fiscal notes  in the  bill packet.   She                                                               
explained that  the bill packet  included fiscal notes  from last                                                               
year's  legislation  because   Representative  Rokeberg  had  not                                                               
received  any  fiscal notes  on  the  current  bill.   Today  the                                                               
committee  received three  fiscal notes  on HB  9, and  the notes                                                               
were distributed to members before the meeting.                                                                                 
                                                                                                                                
Number 1275                                                                                                                     
                                                                                                                                
REPRESENTATIVE    ROKEBERG   replied    to   a    question   from                                                               
Representative Crawford about why the  inspection report on a new                                                               
home would not be valid  after 6 months.  Representative Rokeberg                                                               
said that it is a judgment  call over issues of harsh climate and                                                               
the changing conditions  of the dwelling.  He said  he objects to                                                               
the acceptance  of reports up  to 24 months  old on the  State of                                                               
Alaska Residential  Real Property Transfer  Disclosure Statement,                                                               
a form required by state law.                                                                                                   
                                                                                                                                
Number 1146                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CRAWFORD  asked  whether  any  municipalities  or                                                               
other   local  governments   are   issuing   licenses  for   home                                                               
inspectors.  If so, could  the municipality ordinance be stricter                                                               
than the bill?                                                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG   replied  that  he  did   not  think  a                                                               
municipality  could create  a  home  inspection program  stricter                                                               
than state law.  He said he would check on this point.                                                                          
                                                                                                                                
REPRESENTATIVE  CRAWFORD asked  how long  it would  be before  an                                                               
associate home inspector could become a full home inspector.                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG responded  that regulations would address                                                               
the length of the training period.   In any case, the person must                                                               
pass the home inspector examination to become fully qualified.                                                                  
                                                                                                                                
REPRESENTATIVE  CRAWFORD  commented  that he  thinks  the  $5,000                                                               
surety bond  is low,  but that  he is  not offering  an amendment                                                               
because he wants to see the bill moved out of committee.                                                                        
                                                                                                                                
Number 0871                                                                                                                     
                                                                                                                                
REPRESENTATIVE GATTO  questioned the words  "may not" on  page 8,                                                               
lines  14-17,  where it  says  the  home  inspector "may  not  be                                                               
required  to give  bond  in  applying for  or  holding a  license                                                               
issued by a political subdivision  for a similar occupation."  He                                                           
also  asked  for  a  definition  of  "similar  occupation".    He                                                               
expressed his concern about a  person becoming registered without                                                               
bothering to post the bond or follow the rules.                                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG  said the  intention of  this legislation                                                               
is  to "close  the barn  door" because  now anyone  can represent                                                               
himself or  herself as a home  inspector.  He said  he reads this                                                               
section to  mean that if a  home inspector already has  a license                                                               
through a municipality, that person does  not have to put up more                                                               
than  one  bond.    He  said  he will  ask  the  drafter  of  the                                                               
legislation  why  the term  "may  not"  is  used in  the  current                                                               
statute.                                                                                                                        
                                                                                                                                
REPRESENTATIVE GATTO asked  whether the realtor who  insists on a                                                               
home inspection will accept the report  of a friend of the seller                                                               
who is,  for example, an  engineer but  not registered as  a home                                                               
inspector.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  ROKEBERG  clarified  that the  realtor  does  not                                                               
require a home  inspection under any law, and the  bill grants an                                                               
exemption to  engineers to  do home inspections  if they  use and                                                               
sign  their stamp.   Whoever  requires the  home inspection,  for                                                               
example, the seller or the  lender, decides whether the report is                                                               
acceptable.                                                                                                                     
                                                                                                                                
Number 0161                                                                                                                     
                                                                                                                                
REPRESENTATIVE   ROKEBERG,    in   reply   to    questions   from                                                               
Representative Guttenberg,  said HB  9 is the  same bill  as last                                                               
year's legislation.   He said the bill does not  require that all                                                               
home  inspectors be  engineers because  inspection reports  would                                                               
become phenomenally  expensive.  The number  of engineers willing                                                               
to do this  work might be limited, although in  some areas of the                                                               
state, such  as Juneau, it  is mostly  engineers who do  the home                                                               
inspections.   Plus,  the competency  of  many non-engineers  who                                                               
currently do home inspections would be lost.                                                                                    
                                                                                                                                
TAPE 03-4, SIDE A                                                                                                             
Number 0001                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  commented  that  there  has  been  no                                                               
testimony from  the Alaska Housing Finance  Corporation, which is                                                               
one of the most influential  agencies in the home building field,                                                               
or  from lenders  or  other  home inspectors.    He  asked for  a                                                               
definition of "joint  registration" on page 2, line 29.   He also                                                               
pointed out a  possible typographical error on page  6, lines 14-                                                               
15.                                                                                                                             
                                                                                                                                
MS. SEITZ  explained that the definition  of "joint registration"                                                               
is found  on page 18, lines  16-17, and means that  an individual                                                               
is authorized to inspect both new homes and existing homes.                                                                     
                                                                                                                                
Number 0306                                                                                                                     
                                                                                                                                
BRYAN  BUTCHER,  Legislative   Liaison,  Alaska  Housing  Finance                                                               
Corporation, testified  at the invitation of  Chair Anderson that                                                               
AHFC supports this legislation.                                                                                                 
                                                                                                                                
Number 0397                                                                                                                     
                                                                                                                                
REPRESENTATIVE    ROKEBERG   answered    Representative   Gatto's                                                               
questions about  why the [previous]  bill didn't pass  the Senate                                                               
and  whether   there  were  unresolved  issues   with  the  bill.                                                               
Representative  Rokeberg  explained  that  the  bill  passed  the                                                               
Senate  Labor  and  Commerce Committee  and  the  Senate  Finance                                                               
Committee.  It was on the  calendar for the final day of session,                                                               
but  it died  because it  didn't come  off the  Senate's "rolling                                                               
calendar" before the midnight deadline.                                                                                         
                                                                                                                                
Number 0559                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG pointed out  for the record the inclusion                                                               
of language on page 5, lines 2  and 14, that was requested by the                                                               
Division of  Occupational Licensing.   The section states  that a                                                               
person  must have  been  free  for seven  years  after serving  a                                                               
sentence for certain  types of criminal conviction.   He said the                                                               
term "sentence" includes the probation period.                                                                                  
                                                                                                                                
Number 0642                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG moved to adopt Amendment 1, which reads:                                                                
                                                                                                                                
     Page 4, Line 23:                                                                                                           
          After "examination"                                                                                                   
          DELETE:  "or set of applicable courses"                                                                               
     Page 4, Line 24:                                                                                                           
          After "American Society of Home Inspectors"                                                                           
         INSERT:  ", American Home Inspectors Training                                                                          
     Institute, or National Association of Home Inspectors"                                                                     
     Page 4, line 25:                                                                                                           
          After "examination"                                                                                                   
          DELETE:  "or set of applicable courses"                                                                               
     Page 6, line 11:                                                                                                           
          After "valid for"                                                                                                     
          DELETE: "six months"                                                                                                  
           INSERT: "180 days after the date the home                                                                            
     inspector signs and dates the report"                                                                                      
     Page 6, line 21:                                                                                                           
          After "competency requirements."                                                                                      
        INSERT:   "The department shall require at least                                                                        
     8 hours continuing competency per licensing period."                                                                       
     Page 22, line 25:                                                                                                          
          After "American Society of Home Inspectors"                                                                           
         INSERT:  ", American Home Inspectors Training                                                                          
     Institute, or National Association of Home Inspectors"                                                                     
                                                                                                                                
Number 0600                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG objected for discussion purposes.                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG  explained  that  proposed  Amendment  1                                                               
reflects changes made in the  Senate version of last year's bill.                                                               
On page 4, lines  23 and 25, the choice of  taking either an exam                                                               
or coursework is  reduced to the exam.   On page 4,  line 24, and                                                               
page 22, line  25, two other trade organizations  that offer home                                                               
inspector exams are  added.  On page 6, line  11, "six months" is                                                               
replaced by  180 days,  which is  easier to count.   He  said the                                                               
language "signs and dates the  report" clarifies the start of the                                                               
six-month period.   On page  6, line 21, the  amendment specifies                                                               
eight  hours  of  continuing   competency  training  rather  than                                                               
allowing the regulation writer to set the number.                                                                               
                                                                                                                                
REPRESENTATIVE  GATTO   asked  whether   a  choice  of   exam  or                                                               
coursework  should be  dealt with  by regulation  rather than  in                                                               
statute.                                                                                                                        
                                                                                                                                
REPRESENTATIVE ROKEBERG  answered that it is  appropriate to make                                                               
the decision in law because it sets a standard.                                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG responded  to Representative Guttenberg's                                                               
question about whether  a person must be a member  of these trade                                                               
organizations to take the exam,  a question raised earlier by one                                                               
person who testified.  Representative  Rokeberg replied that this                                                               
bill does not  require membership in these  organizations, nor do                                                               
these organizations require membership to take their tests.                                                                     
                                                                                                                                
Number 0900                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG withdrew his objection to Amendment 1.                                                                
                                                                                                                                
Number 0916                                                                                                                     
                                                                                                                                
CHAIR  ANDERSON, upon  hearing  no  further objections,  declared                                                               
that Amendment 1 was adopted.                                                                                                   
                                                                                                                                
Number 0926                                                                                                                     
                                                                                                                                
REPRESENTATIVE  ROKEBERG   offered  conceptual  Amendment   2,  a                                                               
handwritten  amendment  that   reads  [original  punctuation  and                                                               
format provided]:                                                                                                               
                                                                                                                                
     p. 15 line 16                                                                                                              
          change "or"                                                                                                           
               to "and"                                                                                                         
     p. 15 line 22 after reports                                                                                                
          change "or" to                                                                                                        
               "and"                                                                                                            
     p. 15 lines 17 & 22                                                                                                        
          after "signs"                                                                                                         
          Insert "and dates"                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG  explained that this  amendment responded                                                               
to the issue raised earlier in  testimony by Mr. Miller, chair of                                                               
the State  Board of Registration  for Architects,  Engineers, and                                                               
Land Surveyors,  in which an  engineer or architect must  sign as                                                               
well as stamp a home inspection report.                                                                                         
                                                                                                                                
Number 1019                                                                                                                     
                                                                                                                                
CHAIR ANDERSON  announced, with no  objections, that  Amendment 2                                                               
was adopted.                                                                                                                    
                                                                                                                                
Number 1029                                                                                                                     
                                                                                                                                
REPRESENTATIVE  LYNN moved  to report  HB 9,  as amended,  out of                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
notes.  There  being no objection, CSHB 9(L&C)  was reported from                                                               
the House Labor and Commerce Standing Committee.                                                                                

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