DEPARTMENT OF SAFETY AND PROFESSIONAL SERVICES
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IN THE MATTER OF RULEMAKING : ORDER OF THE
PROCEEDINGS BEFORE THE : DEPARTMENT OF SAFETY AND
DEPARTMENT OF SAFETY AND : PROFESSIONAL SERVICES
PROFESSIONAL SERVICES : (CLEARINGHOUSE RULE 22-004) ADOPTING RULES
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ORDER
An order of the Department of Safety and Professional Services to repeal SPS 131.33 (2m) and (3m), and 131.43 (2); to amend SPS 131.11 (title) and (intro.), 131.12 (intro.) and (2), 131 sub. V (title), and 131.41 (2); to repeal and recreate SPS 131.11 (1) (note), 131.11 (4), 131.21 (1) (note) and (2), 131.24 (note), 131.33 (1) (d); and to create SPS 131.11 (5), 131.113, 131.115, 131.33 (1) (bm) and (f), 131.40 and 131.405; relating to home inspections and home inspector education.
Analysis prepared by the Department of Safety and Professional Services.
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ANALYSIS
Explanation of agency authority:
Section 227.11 (2) (a), Stats.: “Each agency may promulgate rules interpreting the provisions of any statute enforced or administered by the agency, if the agency considers it necessary to effectuate the purpose of the statute, but a rule is not valid if the rule exceeds the bounds of correct interpretation.” Section 440.974, Stats. provides: “(1) The department shall promulgate rules necessary to administer this subchapter, including rules to establish all of the following: (a) Standards for acceptable examination performance by an applicant for registration.
(ag) Standards for instruction for purposes of the requirement under s. 440.972 (1) (bg). (b) Subject to s. 440.975, standards for the practice of home inspection by home inspectors and standards for specifying the mechanical and structural components of improvements to residential real property that are included in a home inspection. The rules promulgated under this paragraph shall include standards for the inspection of carbon monoxide detectors. The rules promulgated under this paragraph may not require a home inspector to use a specified form for the report required under s. 440.975 (3). (c) Subject to s. 440.975, the information that a home inspector is required to provide to a client concerning the results of the home inspection conducted by the home inspector. (2) The department shall promulgate rules establishing continuing education requirements for individuals registered under this subchapter. The rules promulgated under this subsection shall require the completion of at least 40 hours of continuing education every 2 years, except that the rules may not require continuing education for an applicant for renewal of a registration that expires on the 1st and 2nd renewal dates after the date on which the department initially granted the registration.”
Related statute or rule: None.
Plain language analysis:
This rule project implements 2021 Wisconsin Act 17, which required the department to create rules relating to the following matters pertinent to home inspection registration and practice: — Require at least 40 hours of pre-registration education experience and provide standards for the department to approve applicant education. The rules require 40 hours of instruction, with at least 20 hours coming from hand-on instruction in the performance of home inspections and home inspection report writing.
— Provide a pathway for individuals credentialed as a home inspector in another state to apply for reciprocal registration as a home inspector in Wisconsin.
— Eliminate the requirement that registrants complete continuing education during their first two renewal periods as a registered home inspector.
— Revise the department’s rules regarding home inspection standards to reflect that home inspection reports must include a summary page with references to the full report, list any defects discovered by the home inspector, and disclosures to the client including a reminder that the summary page is not a substitute for reading the entire report, as well as a statement reminding the client that the home inspector may not provide an opinion on the marketability of the home nor provide an opinion as to whether or not the home should be purchased.
The rule project also brings the department’s rules into compliance with other recent legislative enactments, including the arrest record and conviction discrimination provisions in 2017 Act 278; the special pathway for service members, former service members, and their spouses to obtain reciprocity created under 2019 Act 143; and removed the continuing education audit provision as required by 2017 Act 59. Finally, notes containing incorrect agency contact information have been revised.
Summary of, and comparison with, existing or proposed federal regulation:
None.
Summary of public comments received on statement of scope and a description of how and to what extent those comments and feedback were taken into account in drafting the proposed rule:
A preliminary hearing on statement of scope was held on June 18, 2021. The following people and entities commented on the proposed scope:
— Julie Arnstein with the Wisconsin Association of Home Inspectors (WAHI) expressed support for the requirement that home inspectors complete pre-registration education and stated that many already do so as part of the process of studying for and taking the required examination. She also expressed support for requiring that at least some of the pre-registration education include field training in the performance of home inspections. She expressed interest in working with the department on providing input in the drafting of the administrative rules.
— Scott Newcomer and Joel Kleefisch with the All American Association of Home Inspectors (AAAHI) also expressed support for requiring field training as part of the pre-registration education requirement. Mr. Newcomer suggested that ½ of the required 40 hours involve field training. He also recommended that education providers be approved by the department in advance. Mr. Newcomer and Mr. Kleefisch expressed interest in working with the department on providing input in the drafting of the administrative rules.
The input received from the WAHI and AAAHI was considered in drafting this rule. A requirement that at least 20 of the 40 hours of required education involve training in the performance of home inspections was incorporated into the rule based on this input.
Comparison with rules in adjacent states:
Illinois: Illinois requires 60 hours of pre-licensure education for home inspectors. Programs must be preapproved by the board. The program must include study of exteriors, interiors, roofing, plumbing, electrical, HVAC, structural components, miscellaneous appliances, laws and regulations, and standards of practice including report writing and required disclosures. The program must also include at least 5 field inspection events. (See 68 Ill. Admin. Code § 1410.520).
Each biennium home inspectors are required to complete at least 12 hours of continuing education, unless it has been less than one year since initial licensure, in which case no continuing education is required. If more than one year has passed since initial licensure, at least 6 continuing education hours are required. (See 68 Ill. Admin. Code § 1410.160).
Illinois requires the home inspector to provide the client with a written report that includes the home inspector’s name, address and license number, components that will be inspected, and report on any significant deficiencies, why there is a deficiency, and whether the deficiency needs to be corrected. A summary document is not required. (See 68 Ill. Admin. Code § 1410.200).
Iowa: Iowa does not credential home inspectors.
Michigan: Michigan does not credential home inspectors.
Minnesota: Minnesota does not credential home inspectors.
Summary of factual data and analytical methodologies:
The department reviewed the provisions of 2021 Wisconsin Act 17 and revised its administrative rules in ch. SPS 131 to bring them into conformity with Act 17 and other state statutes. The department received and considered input from several organizations, including the Wisconsin Association of Home Inspectors (WAHI) and the All American Association of Home Inspectors (AAAHI) in drafting these rules, particularly as it relates to the required pre-registration education requirement. Analysis and supporting documents used to determine effect on small business or in preparation of economic impact analysis:
The rule was posted on the department’s website for 14 days to solicit economic impact comments from small businesses. No comments were received.
Fiscal Estimate and Economic Impact Analysis:
The Fiscal Estimate and Economic Impact Analysis are attached.
Effect on small business:
These proposed rules do not have an economic impact on small businesses, as defined in s. 227.114 (1), Stats. The Department’s Regulatory Review Coordinator may be contacted by email at Jennifer.Garrett@wisconsin.gov, or by calling (608) 266-2112. Agency contact person:
