This is the preview version of the Wisconsin State Legislature site.
Please see http://docs.legis.wisconsin.gov for the production version.
LRBs0251/1
MED:all
2019 - 2020 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 655
February 10, 2020 - Offered by Representative Brooks.
AB655-ASA1,1,6 1An Act to amend 440.973 (3), 440.974 (2) and 440.975 (3) (cm); and to create
2440.972 (1) (bg) and (br), 440.972 (1m), 440.974 (1) (ag) and (ar), 440.975 (3)
3(bm) and 440.975 (3) (cr) of the statutes; relating to: regulation of home
4inspectors, extending the time limit for emergency rule procedures, providing
5an exemption from emergency rule procedures, and granting rule-making
6authority.
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. Similarly, no business entity may provide home inspection
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. In order to become a registered home inspector, an
individual must not have a disqualifying criminal record and must pass an
examination approved by DSPS. The practice of home inspectors is governed by

statutes and by rules promulgated by DSPS. This bill does the following with respect
to the law governing home inspectors:
1. Requires, in order to be granted a home inspector registration, that an
individual complete 120 hours of instruction and 40 hours of field training, as well
as the requirements under current law.
2. Provides for reciprocal registration of home inspectors licensed in other
states who have comparable or more stringent requirements.
3. 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, such as a summary page with required statements, and requiring defects to
be labeled as defects if they satisfy the legal definition of defect.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB655-ASA1,1 1Section 1. 440.972 (1) (bg) and (br) of the statutes are created to read:
AB655-ASA1,2,62 440.972 (1) (bg) Submits evidence satisfactory to the department that he or she
3has completed at least 120 hours of instruction approved by the department under
4s. 440.974 (1) (ag). No more than 60 hours of the required hours may be satisfied
5through remote learning, online programs or other comparable means that do not
6involve in-person, classroom instruction.
AB655-ASA1,2,107 (br) Submits evidence satisfactory to the department that he or she has
8completed at least 40 hours of field training approved by the department under
9under s. 440.974 (1) (ar) that is conducted by a home inspector registered in this
10state.
AB655-ASA1,2 11Section 2. 440.972 (1m) of the statutes is created to read:
AB655-ASA1,2,1612 440.972 (1m) The department shall register an individual under this
13subchapter if the individual is registered or licensed in good standing as a home
14inspector in another state, the individual complies with sub. (1) (a), (b), (c), and (d),
15and the other state has requirements that the department determines meet or exceed
16those required under sub. (1).
AB655-ASA1,3
1Section 3. 440.973 (3) of the statutes is amended to read:
AB655-ASA1,3,42 440.973 (3) An individual is not eligible for examination unless the individual
3has satisfied the requirements for registration under s. 440.972 (1) (a) to (c) and (b)
4at least 30 days before the date of the examination.
AB655-ASA1,4 5Section 4. 440.974 (1) (ag) and (ar) of the statutes are created to read:
AB655-ASA1,3,76 440.974 (1) (ag) Standards for instruction for purposes of the requirement
7under s. 440.972 (1) (bg).
AB655-ASA1,3,98 (ar) Standards for field training for purposes of the requirement under s.
9440.972 (1) (br).
AB655-ASA1,5 10Section 5. 440.974 (2) of the statutes is amended to read:
AB655-ASA1,3,1711 440.974 (2) The department shall promulgate rules establishing continuing
12education requirements for individuals registered under this subchapter. The rules
13promulgated under this subsection shall require the completion of at least 40 hours
14of continuing education every 2 years. The rules promulgated under this subsection
15may not require continuing education for an applicant for renewal of a registration
16that expires on the first renewal date after the date on which the department initially
17granted the registration.
AB655-ASA1,6 18Section 6 . 440.975 (3) (bm) of the statutes is created to read:
AB655-ASA1,3,2219 440.975 (3) (bm) States the property address, the name of the home inspector
20who conducted the home inspection, the date of the home inspection, the names of
21the individuals who prepared the report, the date the report was prepared, and, if
22applicable, the date the report was revised.
AB655-ASA1,7 23Section 7 . 440.975 (3) (cm) of the statutes is amended to read:
AB655-ASA1,4,524 440.975 (3) (cm) Describes any defect that is detected by the home inspector
25during his or her home inspection. A home inspector is not required to shall use the

1term “defect” in describing a defect condition in the written report required under
2this subsection if the home inspector believes the condition satisfies the definition
3of defect under s. 440.97 (2m)
. A home inspector may not use the term “defect” in a
4written report required under this subsection unless that use is consistent with s.
5440.97 (2m).
AB655-ASA1,8 6Section 8 . 440.975 (3) (cr) of the statutes is created to read:
AB655-ASA1,4,87 440.975 (3) (cr) 1. Includes a summary page that includes at least all of the
8following:
AB655-ASA1,4,109 a. A list of conditions, labeled as defects, that are observed under par. (cm) to
10be defects, as defined in s. 440.97 (2m).
AB655-ASA1,4,1211 b. A listing of components needing repairs, components needing further
12evaluation, items to monitor, and maintenance items.
AB655-ASA1,4,1413 2. The summary page shall include references to the page, heading, or item
14number in the detailed account for further information.
AB655-ASA1,4,1515 3. The summary page shall include all of the following statements:
AB655-ASA1,4,1816 NOTE: This summary page is provided for convenience and is not a substitute
17for reading the entire report and should not be relied upon as the complete list for
18the client's reference.
AB655-ASA1,5,219 For the purposes of the report, “defect,” as defined in section 440.97 (2m), Wis.
20Stats., means a condition of any component of an improvement that would
21significantly impair the health or safety of future occupants of a property or that, if
22not repaired, removed, or replaced, would significantly shorten or adversely affect
23the expected normal life of the component of the improvement. The contract of sale
24may define “defect” to also include a condition that would have a significant adverse

1effect on the value of the property, but such a condition may not be labeled a defect
2in the report unless it meets the definition in section 440.97 (2m), Wis. Stats.
AB655-ASA1,5,43 NOTE: A home inspector may not report on the market value or marketability
4of a property or whether a property should or should not be purchased.
AB655-ASA1,9 5Section 9. Nonstatutory provisions.
AB655-ASA1,5,106 (1) In requiring a home inspector, under s. 440.975 (3) (cm), to describe a defect,
7as defined in s. 440.97 (2m), by using the term “defect” in a home inspection
8consistent with the definition under s. 440.97 (2m), the legislature does not intend
9to modify the liability of a home inspector in any action relating to a home inspection
10conducted by the home inspector.
AB655-ASA1,5,1911 (2) The department of safety and professional services may promulgate
12emergency rules under s. 227.24 necessary to implement this act. Notwithstanding
13s. 227.24 (1) (c) and (2), emergency rules promulgated under this subsection remain
14in effect until May 1, 2022, or the date on which permanent rules take effect,
15whichever is sooner. Notwithstanding s. 227.24 (1) (a) and (3), the department is not
16required to provide evidence that promulgating a rule under this subsection as an
17emergency rule is necessary for the preservation of the public peace, health, safety,
18or welfare and is not required to provide a finding of emergency for a rule
19promulgated under this subsection.
AB655-ASA1,10 20Section 10 . Initial applicability.
AB655-ASA1,5,2421 (1) The treatment of s. 440.972 (1) (bg) and (br) first applies to decisions by the
22department of safety and professional services to grant or deny a registration under
23s. 440.972 made on the date on which the rules promulgated under s. 440.974 (1) (ag)
24and (ar) take effect.
AB655-ASA1,6,2
1(2) The treatment of s. 440.975 (3) (bm), (cm), and (cr) first applies to home
2inspection reports submitted to a client on the effective date of this subsection.
AB655-ASA1,11 3Section 11 . Effective dates. This act takes effect on the day after publication,
4except as follows:
AB655-ASA1,6,65 (1) The treatment of s. 440.975 (3) (bm), (cm), and (cr) and Section 10 (2 ) of this
6act take effect on January 1, 2021.
Loading...
Loading...