LRB-1677/1
KP:skw
2021 - 2022 LEGISLATURE
February 5, 2021 - Introduced by Senators Bernier, Bewley and Cowles,
cosponsored by Representatives Brooks, Gundrum, Allen, Moses,
Ortiz-Velez and Skowronski. Referred to Committee on Insurance,
Licensing and Forestry.
SB74,1,6 1An Act to repeal 440.978 (4); to amend 440.97 (2m), 440.973 (3), 440.974 (2) and
2440.975 (3) (cm); and to create 440.972 (1) (bg), 440.972 (1m), 440.974 (1) (ag),
3440.975 (3) (bm) and 440.975 (3) (cr) of the statutes; relating to: regulation of
4home inspectors, extending the time limit for emergency rule procedures,
5providing an exemption from emergency rule procedures, and granting
6rule-making authority.
Analysis by the Legislative Reference Bureau
This bill does the following related to regulation of home inspectors:
1. Modifies the definition of what is considered to be a “defect,” for purposes of
a report submitted by a home inspector to a client. The bill also makes modifications
to what the report is required to contain, including by adding a number of required
elements and statements for the report, such as a summary page with required
statements, and requiring defects to be labeled as defects if they satisfy the legal
definition of defect.
2. Requires, in order to be granted a home inspector registration, that an
individual complete 40 hours of instruction. Current law generally requires a person
to be registered with the Department of Safety and Professional Services to act as
a home inspector, use the title “home inspector,” or represent himself or herself to be
a home inspector.
3. Exempts newly registered home inspectors from continuing education
requirements for the first two renewals of a registration. Current DSPS rules

exempt newly registered home inspectors from continuing education requirements
for the first renewal of a registration.
4. Provides for reciprocal registration of home inspectors licensed in other
states who have comparable or more stringent requirements.
5. Repeals a provision allowing DSPS to use an alternative professional
discipline procedure for home inspectors.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB74,1 1Section 1 . 440.97 (2m) of the statutes is amended to read:
SB74,2,72 440.97 (2m) “Defect” means a condition of any component of an improvement
3that a home inspector determines, on the basis of the home inspector's judgment on
4the day of an inspection,
would significantly impair the health or safety of future
5occupants of a property or that, if not repaired, removed, or replaced, would
6significantly shorten or adversely affect the expected normal life of the component
7of the improvement.
SB74,2 8Section 2 . 440.972 (1) (bg) of the statutes is created to read:
SB74,2,119 440.972 (1) (bg) Submits evidence satisfactory to the department that he or she
10has completed at least 40 hours of instruction approved by the department under s.
11440.974 (1) (ag).
SB74,3 12Section 3 . 440.972 (1m) of the statutes is created to read:
SB74,2,1713 440.972 (1m) The department shall register an individual under this
14subchapter if the individual is registered or licensed in good standing as a home
15inspector in another state, the individual complies with sub. (1) (a), (b), (c), and (d),
16and the other state has requirements that the department determines meet or exceed
17those required under sub. (1).
SB74,4 18Section 4 . 440.973 (3) of the statutes is amended to read:
SB74,3,3
1440.973 (3) An individual is not eligible for examination unless the individual
2has satisfied the requirements for registration under s. 440.972 (1) (a) to (c) and (b)
3at least 30 days before the date of the examination.
SB74,5 4Section 5 . 440.974 (1) (ag) of the statutes is created to read:
SB74,3,65 440.974 (1) (ag) Standards for instruction for purposes of the requirement
6under s. 440.972 (1) (bg).
SB74,6 7Section 6 . 440.974 (2) of the statutes is amended to read:
SB74,3,148 440.974 (2) The department shall promulgate rules establishing continuing
9education requirements for individuals registered under this subchapter. The rules
10promulgated under this subsection shall require the completion of at least 40 hours
11of continuing education every 2 years, except that the rules may not require
12continuing education for an applicant for renewal of a registration that expires on
13the 1st and 2nd renewal dates after the date on which the department initially
14granted the registration
.
SB74,7 15Section 7 . 440.975 (3) (bm) of the statutes is created to read:
SB74,3,1916 440.975 (3) (bm) States the property address, the name of the home inspector
17who conducted the home inspection, the date of the home inspection, the names of
18the individuals who prepared the report, the date the report was prepared, and, if
19applicable, the date the report was revised.
SB74,8 20Section 8 . 440.975 (3) (cm) of the statutes is amended to read:
SB74,4,221 440.975 (3) (cm) Describes any defect that is detected by the home inspector
22during his or her home inspection. A home inspector is not required to shall use the
23term “defect” in describing a defect condition in the written report required under
24this subsection. A home inspector may not use the term “defect” in a written report
25required under this subsection unless that use is consistent with s. 440.97 (2m)
if the

1home inspector believes the condition satisfies the definition of “defect” under s.
2440.97 (2m)
.
SB74,9 3Section 9 . 440.975 (3) (cr) of the statutes is created to read:
SB74,4,54 440.975 (3) (cr) 1. Includes a summary page that includes at least all of the
5following:
SB74,4,76 a. A list of conditions, labeled as defects, that are observed under par. (cm) to
7be defects, as defined in s. 440.97 (2m).
SB74,4,98 b. Other than items labeled as defects, a listing of components needing repairs,
9components needing further evaluation, items to monitor, and maintenance items.
SB74,4,1110 2. The summary page shall include references to the page, heading, or item
11number in the detailed account for further information.
SB74,4,1212 3. The summary page shall include all of the following statements:
SB74,4,1513 NOTE: This summary page is provided for convenience and is not a substitute
14for reading the entire report and should not be relied upon as the complete list for
15the client's reference.
SB74,4,2516 For the purposes of the report, “defect,” as defined in section 440.97 (2m), Wis.
17Stats., means a condition of any component of an improvement that a home inspector
18determines, on the basis of the home inspector's judgment on the day of an
19inspection, would significantly impair the health or safety of occupants of a property
20or that, if not repaired, removed, or replaced, would significantly shorten or
21adversely affect the expected normal life of the component of the improvement. The
22contract of sale may define “defect” to also include a condition that would have a
23significant adverse effect on the value of the property, but such a condition may not
24be labeled a defect in the report unless it meets the definition in section 440.97 (2m),
25Wis. Stats.
SB74,5,2
1NOTE: A home inspector may not report on the market value or marketability
2of a property or whether a property should or should not be purchased.
SB74,10 3Section 10 . 440.978 (4) of the statutes is repealed.
SB74,11 4Section 11 . Nonstatutory provisions.
SB74,5,95 (1) In requiring a home inspector, under s. 440.975 (3) (cm), to describe a defect,
6as defined in s. 440.97 (2m), by using the term “defect” in a home inspection
7consistent with the definition under s. 440.97 (2m), the legislature does not intend
8to modify the liability of a home inspector in any action relating to a home inspection
9conducted by the home inspector.
SB74,5,12 10(2) The rules promulgated under s. 440.974 (2), as affected by this act, shall first
11apply to an individual who is required to satisfy s. 440.972 (1) (bg) as provided in
12Section 12 (1) of this act.
SB74,5,2113 (3) The department of safety and professional services may promulgate
14emergency rules under s. 227.24 necessary to implement this act. Notwithstanding
15s. 227.24 (1) (c) and (2), emergency rules promulgated under this subsection remain
16in effect until May 1, 2023, or the date on which permanent rules take effect,
17whichever is sooner. Notwithstanding s. 227.24 (1) (a) and (3), the department is not
18required to provide evidence that promulgating a rule under this subsection as an
19emergency rule is necessary for the preservation of the public peace, health, safety,
20or welfare and is not required to provide a finding of emergency for a rule
21promulgated under this subsection.
SB74,12 22Section 12 . Initial applicability.
SB74,6,223 (1) The treatment of s. 440.972 (1) (bg) first applies to decisions by the
24department of safety and professional services to grant or deny a registration under

1s. 440.972 made on the date on which the rules promulgated under s. 440.974 (1) (ag)
2take effect.
SB74,6,43 (2) The treatment of s. 440.975 (3) (bm), (cm), and (cr) first applies to home
4inspection reports submitted to a client on the effective date of this subsection.
SB74,13 5Section 13 . Effective dates. This act takes effect on the day after publication,
6except as follows:
SB74,6,87 (1) The treatment of s. 440.975 (3) (bm), (cm), and (cr) and Section 12 (2 ) of this
8act takes effect on the first day of the 3rd month beginning after publication.
SB74,6,99 (End)
Loading...
Loading...