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AB-1357 Home inspectors: roofing contractors: roof inspections.(2017-2018)

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Date Published: 05/17/2017 09:00 PM
AB1357:v97#DOCUMENT

Amended  IN  Assembly  May 17, 2017
Amended  IN  Assembly  May 02, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1357


Introduced by Assembly Member Chu

February 17, 2017


An act to amend Section 7197 of the Business and Professions Code, relating to home inspectors.


LEGISLATIVE COUNSEL'S DIGEST


AB 1357, as amended, Chu. Home inspectors: roofing contractors: roof inspections.
Existing law regulates a person who performs certain home inspections for a fee. Existing law provides that it is an unfair business practice for a home inspector, a company that employs the inspector, or a company that is controlled by a company that also has a financial interest in a company employing a home inspector, to do various acts, including performing or offering to perform, for an additional fee, any repairs to a structure on which the inspector, or the inspector’s company, has prepared a home inspection report in the past 12 months.
This bill would exempt from these provisions a licensed roofing contractor that performs repairs pursuant to his or her inspection of a roof for the specific purpose of providing a roof certification, as defined, if specified conditions are met.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 7197 of the Business and Professions Code is amended to read:

7197.
 (a) It is an unfair business practice for a home inspector, a company that employs the inspector, or a company that is controlled by a company that also has a financial interest in a company employing a home inspector, to do any of the following:
(1) To perform or offer to perform, for an additional fee, any repairs to a structure on which the inspector, or the inspector’s company, has prepared a home inspection report in the past 12 months.
(2) Inspect for a fee any property in which the inspector, or the inspector’s company, has any financial interest or any interest in the transfer of the property.
(3) To offer or deliver any compensation, inducement, or reward to the owner of the inspected property, the broker, or agent, for the referral of any business to the inspector or the inspection company.
(4) Accept an engagement to make an inspection or to prepare a report in which the employment itself or the fee payable for the inspection is contingent upon the conclusions in the report, preestablished findings, or the close of escrow.
(b) A home protection company that is affiliated with or that retains the home inspector does not violate this section if it performs repairs pursuant to claims made under the home protection contract.
(c) This section shall not affect the ability of a structural pest control operator to perform repairs pursuant to Section 8505 as a result of a structural pest control inspection.
(d) Paragraph (1) of subdivision (a) shall not affect the ability of a roofing contractor who holds a C-39 license, as defined in Section 832.39 of Title 16 of the California Code of Regulations, to perform repairs pursuant to the contractor’s inspection of a roof for the specific purpose of providing a roof certification if all of the following conditions are met:
(1) Different employees perform the home inspection and the roof inspection.

(2)The offer to repair the roof is accepted before the home inspection is started.

(2) The roof inspection is ordered prior to, or at the same time as, the home inspection, or the roof inspection is completed before the commencement of the home inspection.
(3) The consumer is provided a consumer disclosure before he or she authorizes the home inspection that includes all of the following:
(A) The same company that performs the roof inspection and roof repairs will perform the home inspection on the same property.
(B) Any repairs that are authorized by the consumer are for the repairs identified in the roofing contractor’s roof inspection report and no repairs identified in the home inspection are authorized or allowed.
(C) The consumer has the right to seek a second opinion.
(4) For purposes of this subdivision, “roof certification” means a written statement by a licensed C-39 Roofing Contractor who has performed a roof inspection, made any necessary repairs, and warrants that the roof is free of visible defects at the time that the certification is issued and should perform as designed for the specified term of the certification.