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

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Date Published: 02/17/2017 09:00 PM
AB1357:v99#DOCUMENT


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 introduced, 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 and would prohibit a home inspector from performing a roof, inspection on the same home upon which the home inspector performed an inspection.
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.
(5) To perform a roof inspection on the same home upon which the home inspector performed an inspection.

(5)

(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.

(b)

(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) This section does 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 his or her inspection of a roof.