Wisconsin 2019-2020 Regular Session Status: Passed Assembly Bipartisan · 4 R · 3 D cosponsors

AB 655 — Relating to: regulation of home inspectors, extending the time limit for emergency rule procedures, providing an exemption from emergency rule procedures, and granting rule-making authority. (FE)

Last action — Failed to concur in pursuant to Senate Joint Resolution 1

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

151 added · 217 removed

Plain-language change summary

The changes to Assembly Bill 655 involve updating the regulations surrounding home inspectors. A specific section of the law that previously provided certain restrictions on home inspector requirements (440.978(4)) has been removed. This repeal and other amendments extend the time limit for emergency rule procedures, allow for exemptions from these procedures, and grant new rule-making authority to relevant bodies. This matters because it streamlines the process for home inspectors and potentially makes it easier for them to operate, ensuring more flexibility and responsiveness to market needs.

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- 2020 LEGISLATURE LRB-2682/4 MED:ahe&cjs ASSEMBLY BILL 655 December 5, 2019 - Introduced by Representatives B ROOKS, M AGNAFIC, ALLEN , B ROSTOFF, NOVAK , SINICK, SKOWRONSKI , SPIROS, SUBECK and C .
- 2020 LEGISLATURE LRB-5804/1 MED:wlj ENGROSSED 2019 ASSEMBLY BILL 655 March 9, 2020 - Printed by direction oENATE C HIEFC LERK.
TAYLOR , cosponsored by Senators B ERNIER and O LSEN.
A N A CT to repeal 440.978 (4);
Referred to Committee on Regulatory Licensing Reform.
to amend 440.97 (2m), 440.973 (3), 440.974 (2) and 440.975 (3) (cm);
A N A CT to repeal 440.9715 (title);
and to create 440.972 (1) (bg), 440.972 (1m), 440.974 (1) (ag), 440.975 (3) (bm) and 440.975 (3) (cr) of the statutes;
to renumber 440.9715 (1) and 440.9715 (3);
to renumber and amend 440.9712 (1), 440.9715 (intro.) and 440.9715 (2);
to amend 440.9712 (title), 440.9712 (1m), 440.9712 (2), 440.972 (title) and (1) (intro.), (a) and (c), 440.972 (2), 440.973 (1), 440.973 (2), 440.973 (3), 440.974 (1) (a), 440.974 (2), 440.975 (3) (cm), 440.978 (2) (intro.), (a) and (c), 440.978 (4) (intro.), 440.978 (5) (intro.) and 440.979 (1);
and to create 440.972 (1) (bg) and (br), 440.972 (1m), 440.974 (1) (ag) and (ar), 440.975 (3) (bm) and 440.975 (3) (cr) of the statutes;
Analysis by the Legislative Reference Bureau Under current law, subject to certain exceptions, no individual may act as a home inspector, use the title “home inspector," use any title or description that implies that he or she is a home inspector, or represent himself or herself to be a home inspector unless the individual is registered with the Department of Safety and Professional Services.
Analysis by the Legislative Reference Bureau Engrossment information:
Similarly, no business entity may provide home inspection - 2020 Legislature - 2 - LRB-2682/4 MED:ahe&cjs ASSEMBLY BILL 655 services, and no business entity may use the title “home inspectors" to describe the business entity's services, unless each of the home inspectors employed by the business entity is so registered.
The text of Engrossed 2019 Assembly Bill 655, as passed by the assembly on February 20, 2020, consists of the following documents adopted in the assembly on February 20, 2020:
Assembly Substitute Amendment 1 as affected by Assembly Amendments 1, 2, and 3.
The text also includes the March 9, 2020, chief clerk's correction to Assembly Amendment 2.
Content of Engrossed 2019 Assembly Bill 655:
Under current law, subject to certain exceptions, no individual may act as a home inspector, use the title “home inspector," use any title or description that implies that he or she is a home inspector, or represent himself or herself to be a home inspector unless the individual is registered with the Department of Safety and Professional Services.
Similarly, no business entity may provide home inspection - 2020 Legislature - 2 - LRB-5804/1 MED:wlj ENGROSSED ASSEMBLY BILL 655 services, and no business entity may use the title “home inspectors" to describe the business entity's services, unless each of the home inspectors employed by the business entity is so registered.
Requires home inspectors to be licensed, rather than registered.
Requires, in order to be granted a home inspector registration, that an individual complete 40 hours of instruction.
The bill grandfathers current registrants in as licensees.
Requires, in order to be granted a home inspector license, that an individual complete 120 hours of instruction and 40 hours of field training, as well as the requirements under current law for a home inspector registration.
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.
Provides for reciprocal licensure of home inspectors licensed in other states who have comparable or more stringent requirements.
Provides for reciprocal registration of home inspectors licensed in other states who have comparable or more stringent requirements.
Adjusts the contents that a report submitted by a home inspector to a client is required to contain, including by adding a number of required elements for the report and requiring defects to be identified as such.
Modifies the definition of what is considered to be a “defect,” for purposes of a report submitted by a home inspector to a client.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
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.
5.
Repeals a provision allowing DSPS to use an alternative professional discipline procedure for home inspectors.
S ECTION 1.
S ECTION 1g.
440.9712 (title) of the statutes is amended to read:
440.97 (2m) of the statutes is amended to read:
440.9712 (title) Registration License required;
440.97 (2m) “Defect” means a condition of any component of an improvement that a home inspector determines, on the basis of the home inspector's judgment on the day of an inspection, would significantly impair the health or safety of future occupants of a property or that, if not repaired, removed, or replaced, would significantly shorten or adversely affect the expected normal life of the component of the improvement.
exceptions.
S ECTION 1m.
S ECTION 2.
440.972 (1) (bg) of the statutes is created to read:
440.9712 (1) of the statutes is renumbered 440.9712 (1) (a) and amended to read:
LRB-5804/1 - 2020 Legislature - 3 - MED:wlj SECTION 1m ENGROSSED ASSEMBLY BILL 655 440.972(1) (bg) Submits evidence satisfactory to the department that he or she has completed at least 40 hours of instruction approved by the department under s.
440.9712 (1) (a) Except as provided in s.
440.9715 par.
(b), no individual may act as a home inspector, use the title “home inspector", inspector,” use any title or description that implies that he or she is a home inspector, or represent himself or herself to be a home inspector unless the individual is registeredensed under this subchapter.
S ECTION 3.
440.9712 (1m) of the statutes is amended to read:
LRB-2682/4 - 2020 Legislature - 3 - MED:ahe&cjs SECTION 3 ASSEMBLY BILL 655 440.9712(1m) No business entity may provide home inspection services unless each of the home inspectors employed by the business entity is registered licensed under this subchapter.
SECTION 4.
440.9712 (2) of the statutes is amended to read:
440.9712 (2) No business entity may use, in connection with the name or signature of the business entity, the title “home inspectors" to describe the business entity's services, unless each of the home inspectors employed by the business entity is registeredcensed under this subchapter.
SECTION 5.
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440.9715 (title) of the statutes is repealed.
SECTION 6.
440.9715 (intro.) of the statutes is renumbered 440.9712 (1) (b) (intro.) and amended to read:
440.9712 (1) (b) (intro.) A registratilicense is not required under this subchapter for any of the following:
SECTION 7.
440.9715 (1) of the statutes is renumbered 440.9712 (1) (b) 1.
SECTION 8.
440.9715 (2) of the statutes is renumbered 440.1912 (1) (b) 2.
and amended to read:
440.1912 (1) (b) 2.
An individual who constructs, repairs, or maintains improvements to residential real property, if the individual conducts home inspections only as part of his or her business of constructing, repairing, maintaining improvements to real property and if the individual does not describe himself or herself as a registeredsed home inspector or convey the impression that he or she is a registered licensed home inspector.
SECTION 9.
440.9715 (3) of the statutes is renumbered 440.9712 (1) (b) 3.
SECTION 10.
440.972 (title) and (1) (intro.), (a) and (c) of the statutes are amended to read:
- 2020 Legislature - 4 - LRB-2682/4 MED:ahe&cjs ASSEMBLY BILL 655 SECTION 10 440.972 (title) RegistrationLicensure of home inspectors.
(1) (intro.) The department shall register grant a home inspector license to an individual under this subchapter applicant if the individual applicant does all of the following:
(a) Submits an application for registration to the department on a form provided by the department.
(c) Submits evidence satisfactory to the department that he or she is not subject to a pending criminal charge, or has not been convicted of a felony, misdemeanor or other offense, the circumstances of which substantially relate to the practice of home inspection subject to ss.
111.321, 111.322, and 111.335.
SECTION 11.
440.972 (1) (bg) and (br) of the statutes are created to read:
440.972(1) (bg) Submits evidence satisfactory to the department that he or she has completed at least 120 hours of instruction approved by the department under s.
No more than 60 hours of the required hours may be satisfied through remote learning, online programs or other comparable means that do not involve in-person, classroom instruction.
SECTION 2.
(br) Submits evidence satisfactory to the department that he or she has completed at least 40 hours of field training approved by the department under under s.
440.974 (1) (ar) that is conducted by a home inspector licensed in this state.
SECTION 12.
440.972 (1m) The department shall grant a home inspector license to an applicant who is licensed in good standing as a home inspector in another state if the applicant complies with sub.
440.972 (1m) The department shall register an individual under this subchapter if the individual is registered or licensed in good standing as a home inspector in another state, the individual complies with sub.
(1) (a), (b), (c), and (d) and the other state has licensing requirements that the department determines meet or exceed those required under sub.
(1) (a), (b), (c), and (d), and the other state has requirements that the department determines meet or exceed those required under sub.
SECTION 13.
SECTION 3.
440.972 (2) of the statutes is amended to read:
LRB-2682/4 - 2020 Legislature - 5 - MED:ahe&cjs S ECTION 13 ASSEMBLY BILL 655 440.972 (2) The renewal date for certificatesicenses granted under this section is specified under s.
440.08 (2) (a), and the renewal fee for such certificates licenses is determined by the department under s.
440.03 (9) (a).
SECTION 14.
440.973 (1) of the statutes is amended to read:
440.973(1) No person may be registeredcensed under this subchapter unless he or she passes an examination approved by the department.
In approving an examination under this subsection, the department shall consider the use of an examination that is similar to an examination that is required for membership in the American Society of Home Inspectors.
SECTION 15.
440.973 (2) of the statutes is amended to read:
440.973 (2) The department shall conduct examinations for home inspector registrationicensure at least semiannually at times and places determined by the department.
SECTION 16.
440.973 (3) An individual is not eligible for examination unless the individual has satisfied the requirements for registrationsure under s.
440.973 (3) An individual is not eligible for examination unless the individual has satisfied the requirements for registration under s.
440.972 (1) (a) to (c) and (b) at least 30 days before the date of the examination.
440.972 (1and (b)o (c) at least 30 days before the date of the examination.
SECTION 17.
SECTION 4.
440.974 (1) (a) of the statutes is amended to read:
440.974 (1) (ag) of the statutes is created to read:
440.974 (1) (a) Standards for acceptable examinationperformance by an applicant for registration licensure under this subchapter on an examination under s.
440.973 (1).
SECTION 18.
440.974 (1) (ag) and (ar) of the statutes are created to read:
- 2020 Legislature - 6 - LRB-2682/4 MED:ahe&cjs ASSEMBLY BILL 655 SECTION 18 (ar) Standards for field training for purposes of the requirement under s.
SECTION 5.
440.972 (1) (br).
SECTION 19.
440.974 (2) The department shall promulgate rules establishing continuing education requirements for individuals registered licensed under this subchapter.
440.974 (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.
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.
The rules promulgated under this subsection may not require continuing education for an applicant for renewal of a license that expires on the first renewal date after the date on which the department initially granted the license.
SECTION 6.
SECTION 20.
440.975 (3) (bm) States the property address, the name of the home inspector who conducted the home inspection, the date of the home inspection, the names of the individuals who prepared the report, the date the report was prepared, and, if applicable, the date the report was revised.
- 2020 Legislature - 4 - LRB-5804/1 MED:wlj ENGROSSED ASSEMBLY BILL 655 SECTION 6 440.975 (3) (bm) States the property address, the name of the home inspector who conducted the home inspection, the date of the home inspection, the names of the individuals who prepared the report, the date the report was prepared, and, if applicable, the date the report was revised.
SECTION 21.
SECTION 7.
A home inspector is not required to shall use the term “defect” in describing a defect in the written report required under this subsection.
A home inspector is not required to shall use the term “defect” in describing a defectition in the written report required under this subsection.
440.97 (2m) if the home inspector believes the condition satisfies the definition of “defect” under s.
SECTION 22.
SECTION 8.
440.975 (3) (cr) Includes a summary page listing and labeling, in the following order, conditions observed as defects, safety concerns, components needing repairs, components needing further evaluation, items to monitor, and maintenance items;
440.975 (3) (cr) 1.
LRB-2682/4 - 2020 Legislature - 7 - MED:ahe&cjs S ECTION 22 ASSEMBLY BILL 655 and including references to the page or item number in the detailed account for further information.
Includes a summary page that includes at least all of the following:
SECTION 23.
a.
440.978 (2) (intro.), (a) and (c) of the statutes are amended to read:
A list of conditions, labeled as defects, that are observed under par.
440.978 (2) (intro.) Subject to the rules promulgated under s.
(cm) to be defects, as defined in s.
440.03 (1), the department may reprimand a home inspector or deny, limit, suspend, or revoke a certificatecense under this subchapter if the department finds that the applicant or home inspector has done any of the following:
440.97 (2m).
(a) Made a material misstatement in an application for a certificate license or renewal of a certificateense.
b.
(c) Subject to ss.
A listing of components needing repairs, components needing further evaluation, items to monitor, and maintenance items.
111.321, 111.322 and 111.335, been arrested or convicted of an offense committed while registered licensed under this subchapter.
2.
SECTION 24.
The summary page shall include references to the page, heading, or item number in the detailed account for further information.
440.978 (4) (intro.) of the statutes is amended to read:
3.
440.978 (4) (intro.) In lieu of proceeding under sub.
The summary page shall include all of the following statements:
(1) or (2), the department may place, in a registry information file, a copy of a complaint received by the department against a Wisconsin registered licensed home inspector, the inspector's response to the complaint and a copy of any records of the department concerning the complaint.
NOTE:
If the department establishes a registry information file under this subsection, the department shall use the following procedure:
This summary page is provided for convenience and is not a substitute for reading the entire report and should not be relied upon as the complete list for the client's reference.
SECTION 25.
LRB-5804/1 - 2020 Legislature - 5 - MED:wlj SECTION 8 ENGROSSED ASSEMBLY BILL 655 For the purposes of the report, “defect,” as defined in section 440.97 (2m), Wis.
440.978 (5) (intro.) of the statutes is amended to read:
Stats., means a condition of any component of an improvement that a home inspector determines, on the basis of the home inspector's judgment on the day of an inspection, would significantly impair the health or safety of occupants of a property or that, if not repaired, removed, or replaced, would significantly shorten or adversely affect the expected normal life of the component of the improvement.
440.978 (5) (intro.)The department may, as a condition of removing a limitation on a certificatense issued under this subchapter or of reinstating a certificalicense that has been suspended or revoked under this subchapter, do any of the following:
The contract of sale may define “defect” to also include a condition that would have a significant adverse effect on the value of the property, but such a condition may not be labeled a defect in the report unless it meets the definition in section 440.97 (2m), Wis.
SECTION 26.
Stats.
440.979 (1) of the statutes is amended to read:
NOTE:
- 2020 Legislature - 8 - LRB-2682/4 MED:ahe&cjs ASSEMBLY BILL 655 S ECTION 26 440.979 (1) The number of home inspectors who are registeredcensed under this subchapter.
A home inspector may not report on the market value or marketability of a property or whether a property should or should not be purchased.
S ECTION 27.Nonstatutory provisions.
S ECTION 8m.
(1) Notwithstanding s.
440.978 (4) of the statutes is repealed.
440.972, on the effective date of this subsection, a person who, immediately prior to the effective date of this subsection, held a valid home inspector registration under s.
S ECTION 9.Nonstatutory provisions.
440.972, 2017 stats., shall be a licensed home inspector under s.
(1) In requiring a home inspector, under s.
440.972.
440.975 (3) (cm), to describe a defect, as defined in s.
440.97 (2m), by using the term “defect” in a home inspection consistent with the definition under s.
440.97 (2m), the legislature does not intend to modify the liability of a home inspector in any action relating to a home inspection conducted by the home inspector.
(1m) The rules promulgated under s.
440.974 (2), as affected by this act, shall first apply to an individual who is required to satisfy s.
440.972 (1) (bg) as provided in ECTION 10 (1) of this act.
227.24 (1) (c) and (2), emergency rules promulgated under this subsection remain in effect until May 1, 2022, or the date on which permanent rules take effect, whichever is sooner.
227.24 (1) (c) and (2), emergency rules promulgated under this subsection remain - 2020 Legislature - 6 - LRB-5804/1 MED:wlj ENGROSSED ASSEMBLY BILL 655 S ECTION 9 in effect until May 1, 2022, or the date on which permanent rules take effect, whichever is sooner.
S ECTION 28.Initial applicability.
SECTION 10.Initial applicability.
440.972 (1) (bg) and (br) first applies to decisions by the department of safety and professional services to grant or deny a license under s.
440.972 (1) (bg) first applies to decisions by the department of safety and professional services to grant or deny a registration under s.
440.974 (1) (ag) and (ar) take effect.
440.974 (1) (ag) take effect.
S ECTION 29.Effective dates.
(2) The treatment of s.
440.975 (3) (bm), (cm), and (cr) first applies to home inspection reports submitted to a client on the effective date of this subsection.
SECTION 11.0Effective dates.
LRB-2682/4 - 2020 Legislature - 9 - MED:ahe&cjs S ECTION 29 ASSEMBLY BILL 655 (1) The treatment of s.
(1) The treatment of s.
440.975 (3) (bm), (cm), and (cr) takes effect on September 1, 2020.
440.975 (3) (bm), (cm), and (crECTIONS10 (2) of this act take effect on January 1, 2021.
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Action History

  1. Failed to concur in pursuant to Senate Joint Resolution 1

  2. Available for scheduling

  3. Report concurrence recommended by Committee on Utilities and Housing, Ayes 5, Noes 0

  4. Executive action taken

  5. LRB correction (Assembly Amendment 2 to Assembly Substitute Amendment 1)

  6. Printed engrossed by the direction of the Senate Chief Clerk-5804

  7. Read first time and referred to committee on Utilities and Housing

  8. Received from Assembly

  9. Ordered immediately messaged

  10. Read a third time and passed

  11. Rules suspended

  12. Ordered to a third reading

  13. Assembly Substitute Amendment 1 adopted

  14. Assembly Amendment 3 to Assembly Substitute Amendment 1 adopted

  15. Assembly Amendment 2 to Assembly Substitute Amendment 1 adopted

  16. Assembly Amendment 1 to Assembly Substitute Amendment 1 adopted

  17. Read a second time

  18. Assembly Amendment 3 to Assembly Substitute Amendment 1 offered by Representative Brooks

  19. Made a special order of business at 10:26 AM on 2-20-2020 pursuant to Assembly Resolution 21

  20. Referred to committee on Rules

  21. Report passage as amended recommended by Committee on Regulatory Licensing Reform, Ayes 7, Noes 0

  22. Report Assembly Substitute Amendment 1 adoption recommended by Committee on Regulatory Licensing Reform, Ayes 7, Noes 0

  23. Report Assembly Amendment 1 to Assembly Substitute Amendment 1 adoption recommended by Committee on Regulatory Licensing Reform, Ayes 7, Noes 0

  24. Assembly Amendment 2 to Assembly Substitute Amendment 1 offered by Representative Brooks

  25. Executive action taken

  26. Assembly Amendment 1 to Assembly Substitute Amendment 1 offered by Representatives Stuck and Brooks

  27. Assembly Substitute Amendment 1 offered by Representative Brooks

  28. Assembly Amendment 2 offered by Representatives Stuck and Brooks

  29. Public hearing held

  30. Assembly Amendment 1 offered by Representative Brooks

  31. Fiscal estimate received

  32. Read first time and referred to Committee on Regulatory Licensing Reform

  33. Introduced by Representatives Brooks, Magnafici, Allen, Brostoff, Novak, Sinicki, Skowronski, Spiros, Subeck and C. Taylor; cosponsored by Senators Bernier and Olsen

Sponsors

Sponsorship breakdown

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10 sponsors · 0 co-sponsors · 122 not signed on

Sponsors (10)

Co-sponsors (0)

None.

Not signed on (122)

122 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors AB 655?
AB 655 is sponsored by Magnafici, Allen, Scott (Republican), Brostoff, Novak, Todd (Republican), Sinicki, Christine (Democrat), Skowronski, Spiros, John (Republican), Subeck, Lisa (Democrat), Taylor, Sequanna (Democrat), and Brooks, Robert (Republican).
What is the current status of AB 655?
This bill died with 2019-2020 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 655?
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