To amend sections 121.08 and 4745.01 and to enact sections 4735.581, 4768.01 to 4768.19, and 4768.99 of the Revised Code to require the licensure of home inspectors and to create the Ohio Home Inspector Board to regulate the licensure and performance of home inspectors.

Section 1. That sections 121.08 and 4745.01 be amended and sections 4735.581, 4768.01, 4768.02, 4768.03, 4768.04, 4768.05, 4768.06, 4768.07, 4768.08, 4768.09, 4768.10, 4768.11, 4768.12, 4768.13, 4768.14, 4768.15, 4768.16, 4768.17, 4768.18, 4768.19, and 4768.99 of the Revised Code be enacted to read as follows:

Sec. 121.08.  (A) There is hereby created in the department of commerce the position of deputy director of administration. This officer shall be appointed by the director of commerce, serve under the director's direction, supervision, and control, perform the duties the director prescribes, and hold office during the director's pleasure. The director of commerce may designate an assistant director of commerce to serve as the deputy director of administration. The deputy director of administration shall perform the duties prescribed by the director of commerce in supervising the activities of the division of administration of the department of commerce.

(B) Except as provided in section 121.07 of the Revised Code, the department of commerce shall have all powers and perform all duties vested in the deputy director of administration, the state fire marshal, the superintendent of financial institutions, the superintendent of real estate and professional licensing, the superintendent of liquor control, the superintendent of industrial compliance, the superintendent of labor and worker safety, the superintendent of unclaimed funds, and the commissioner of securities, and shall have all powers and perform all duties vested by law in all officers, deputies, and employees of those offices. Except as provided in section 121.07 of the Revised Code, wherever powers are conferred or duties imposed upon any of those officers, the powers and duties shall be construed as vested in the department of commerce.

(C)(1) There is hereby created in the department of commerce a division of financial institutions, which shall have all powers and perform all duties vested by law in the superintendent of financial institutions. Wherever powers are conferred or duties imposed upon the superintendent of financial institutions, those powers and duties shall be construed as vested in the division of financial institutions. The division of financial institutions shall be administered by the superintendent of financial institutions.

(2) All provisions of law governing the superintendent of financial institutions shall apply to and govern the superintendent of financial institutions provided for in this section; all authority vested by law in the superintendent of financial institutions with respect to the management of the division of financial institutions shall be construed as vested in the superintendent of financial institutions created by this section with respect to the division of financial institutions provided for in this section; and all rights, privileges, and emoluments conferred by law upon the superintendent of financial institutions shall be construed as conferred upon the superintendent of financial institutions as head of the division of financial institutions. The director of commerce shall not transfer from the division of financial institutions any of the functions specified in division (C)(2) of this section.

(D) There is hereby created in the department of commerce a division of liquor control, which shall have all powers and perform all duties vested by law in the superintendent of liquor control. Wherever powers are conferred or duties are imposed upon the superintendent of liquor control, those powers and duties shall be construed as vested in the division of liquor control. The division of liquor control shall be administered by the superintendent of liquor control.

(E) The director of commerce shall not be interested, directly or indirectly, in any firm or corporation which is a dealer in securities as defined in sections 1707.01 and 1707.14 of the Revised Code, or in any firm or corporation licensed under sections 1321.01 to 1321.19 of the Revised Code.

(F) The director of commerce shall not have any official connection with a savings and loan association, a savings bank, a bank, a bank holding company, a savings and loan association holding company, a consumer finance company, or a credit union that is under the supervision of the division of financial institutions, or a subsidiary of any of the preceding entities, or be interested in the business thereof.

(G) There is hereby created in the state treasury the division of administration fund. The fund shall receive assessments on the operating funds of the department of commerce in accordance with procedures prescribed by the director of commerce and approved by the director of budget and management. All operating expenses of the division of administration shall be paid from the division of administration fund.

(H) There is hereby created in the department of commerce a division of real estate and professional licensing, which shall be under the control and supervision of the director of commerce. The division of real estate and professional licensing shall be administered by the superintendent of real estate and professional licensing. The superintendent of real estate and professional licensing shall exercise the powers and perform the functions and duties delegated to the superintendent under Chapters 4735., 4763., and 4767., and 4768. of the Revised Code.

(I) There is hereby created in the department of commerce a division of labor and worker safety, which shall have all powers and perform all duties vested by law in the superintendent of labor and worker safety. Wherever powers are conferred or duties imposed upon the superintendent of labor and worker safety, those powers and duties shall be construed as vested in the division of labor and worker safety. The division of labor and worker safety shall be under the control and supervision of the director of commerce and be administered by the superintendent of labor and worker safety. The superintendent of labor and worker safety shall exercise the powers and perform the duties delegated to the superintendent by the director under Chapters 4109., 4111., and 4115. of the Revised Code.

(J) There is hereby created in the department of commerce a division of unclaimed funds, which shall have all powers and perform all duties delegated to or vested by law in the superintendent of unclaimed funds. Wherever powers are conferred or duties imposed upon the superintendent of unclaimed funds, those powers and duties shall be construed as vested in the division of unclaimed funds. The division of unclaimed funds shall be under the control and supervision of the director of commerce and shall be administered by the superintendent of unclaimed funds. The superintendent of unclaimed funds shall exercise the powers and perform the functions and duties delegated to the superintendent by the director of commerce under section 121.07 and Chapter 169. of the Revised Code, and as may otherwise be provided by law.

(K) The department of commerce or a division of the department created by the Revised Code that is acting with authorization on the department's behalf may request from the bureau of criminal identification and investigation pursuant to section 109.572 of the Revised Code, or coordinate with appropriate federal, state, and local government agencies to accomplish, criminal records checks for the persons whose identities are required to be disclosed by an applicant for the issuance or transfer of a permit, license, certificate of registration, or certification issued or transferred by the department or division. At or before the time of making a request for a criminal records check, the department or division may require any person whose identity is required to be disclosed by an applicant for the issuance or transfer of such a license, permit, certificate of registration, or certification to submit to the department or division valid fingerprint impressions in a format and by any media or means acceptable to the bureau of criminal identification and investigation and, when applicable, the federal bureau of investigation. The department or division may cause the bureau of criminal identification and investigation to conduct a criminal records check through the federal bureau of investigation only if the person for whom the criminal records check would be conducted resides or works outside of this state or has resided or worked outside of this state during the preceding five years, or if a criminal records check conducted by the bureau of criminal identification and investigation within this state indicates that the person may have a criminal record outside of this state.

In the case of a criminal records check under section 109.572 of the Revised Code, the department or division shall forward to the bureau of criminal identification and investigation the requisite form, fingerprint impressions, and fee described in division (C) of that section. When requested by the department or division in accordance with this section, the bureau of criminal identification and investigation shall request from the federal bureau of investigation any information it has with respect to the person who is the subject of the requested criminal records check and shall forward the requisite fingerprint impressions and information to the federal bureau of investigation for that criminal records check. After conducting a criminal records check or receiving the results of a criminal records check from the federal bureau of investigation, the bureau of criminal identification and investigation shall provide the results to the department or division.

The department or division may require any person about whom a criminal records check is requested to pay to the department or division the amount necessary to cover the fee charged to the department or division by the bureau of criminal identification and investigation under division (C)(3) of section 109.572 of the Revised Code, including, when applicable, any fee for a criminal records check conducted by the federal bureau of investigation.

Sec. 4735.581. (A) The superintendent of real estate and professional licensing shall create a brochure to educate consumers about home inspections. The superintendent, with the advice and consent of the Ohio real estate commission, shall adopt rules to specify the topics that must be covered in the brochure, including both of the following topics:

(1) The home inspection process and the process for inspections related to home inspections, including, but not limited to, inspections for pests, radon gas, or both, and inspections conducted by a person who is employed by or whose services otherwise are retained by this state or a political subdivision of this state for the purpose of enforcing building codes;

(2) Issues a consumer should consider when selecting a home inspector.

The superintendent shall distribute a copy of the brochure the superintendent creates pursuant to this section to each licensee licensed under this chapter. The superintendent shall provide additional copies to a licensee, upon request.

(B) A licensee shall provide a copy of the brochure created pursuant to division (A) of this section to a client at the time a licensee enters into an agency disclosure agreement pursuant to section 4735.58 of the Revised Code.

Sec. 4745.01.  (A) "Standard renewal procedure," as used in Chapters 905., 907., 909., 911., 913., 915., 918., 921., 923., 927., 942., 943., 953., 1321., 3710., 3713., 3719., 3742., 3748., 3769., 3783., 3921., 3951., 4104., 4105., 4143., 4169., 4561., 4703., 4707., 4709., 4713., 4715., 4717., 4723., 4725., 4727., 4728., 4729., 4731., 4733., 4734., 4735., 4739., 4741., 4747., 4749., 4752., 4753., 4755., 4757., 4758., 4759., 4761., 4766., 4768., 4773., and 4775. of the Revised Code, means the license renewal procedures specified in this chapter.

(B) "Licensing agency," as used in this chapter, means any department, division, board, section of a board, or other state governmental unit subject to the standard renewal procedure, as defined in this section, and authorized by the Revised Code to issue a license to engage in a specific profession, occupation, or occupational activity, or to have charge of and operate certain specified equipment, machinery, or premises.

(C) "License," as used in this chapter, means a license, certificate, permit, card, or other authority issued or conferred by a licensing agency by authority of which the licensee has or claims the privilege to engage in the profession, occupation, or occupational activity, or to have control of and operate certain specific equipment, machinery, or premises, over which the licensing agency has jurisdiction.

(D) "Licensee," as used in this chapter, means either the person to whom the license is issued or renewed by a licensing agency, or the person, partnership, or corporation at whose request the license is issued or renewed.

(E) "Renewal" and "renewed," as used in this chapter and in the chapters of the Revised Code specified in division (A) of this section, includes the continuing licensing procedure provided in Chapter 3748. of the Revised Code and rules adopted under it and in sections 1321.05 and 3921.33 of the Revised Code, and as applied to those continuing licenses any reference in this chapter to the date of expiration of any license shall be construed to mean the due date of the annual or other fee for the continuing license.

Sec. 4768.01. As used in this chapter:

(A) "Client" means a person who enters into a contract with a licensed home inspector to retain for compensation or other valuable consideration the services of that licensed home inspector to conduct a home inspection and to provide a written report on the condition of a residential building.

(B) "Home inspection" means the process by which a home inspector conducts a visual examination of the readily accessible components of a residential building for a client. "Home inspection" does not include pest inspections; environmental testing; inspection of any property or structure conducted by an employee or representative of an insurer licensed to transact business in this state under Title XXXIX of the Revised Code for purposes related to the business of insurance; or determination of compliance with applicable statutes, rules, resolutions, or ordinances, including, without limitation, building, zoning, or historic codes.

(C) "Licensed home inspector" means an individual who holds a valid license issued pursuant to section 4768.07 or 4768.10 of the Revised Code to conduct a home inspection for compensation or other valuable consideration.

(D) "Residential building" has the same meaning as in section 3781.06 of the Revised Code but also includes the individual dwelling units within an apartment or condominium complex containing four or more dwelling units.

(E) "Parallel inspection" means the process by which a licensed home inspector observes and evaluates an on-site home inspection performed by an applicant for a home inspector license and reviews and verifies the applicant's compliance with the standards of practice specified in rules adopted by the Ohio home inspector board pursuant to division (A)(13) of section 4768.05 of the Revised Code, while concurrently performing the primary home inspection of the same residential building for the licensed home inspector's client.

(F) "Readily accessible" means available for visual inspection without requiring a person to move or dismantle personal property, take destructive measures, or take any other action that will involve risk to a person or to the property.

Sec. 4768.02. (A) No person shall conduct a home inspection or represent a qualification to conduct a home inspection for compensation or other valuable consideration unless that person is licensed pursuant to this chapter as a home inspector.

(B) No person shall perform a home inspection unless it is performed pursuant to a written contract entered into between a licensed home inspector and a client.

(C) No person shall perform a home inspection unless the home inspection conforms to requirements specified in rules adopted by the Ohio home inspector board pursuant to division (A)(13) of section 4768.05 of the Revised Code and the rules adopted pursuant to division (B)(2) of section 1345.05 of the Revised Code.

Sec. 4768.03. Section 4768.02 of the Revised Code does not apply to any person described as follows if the person is acting within the scope of practice of the person's respective profession:

(A) A person who is employed by or whose services otherwise are retained by this state or a political subdivision of this state for the purpose of enforcing building codes;

(B) A person holding a valid certificate to practice architecture issued under Chapter 4703. of the Revised Code;

(C) A person registered as a professional engineer under Chapter 4733. of the Revised Code;

(D) A heating, ventilating, and air conditioning contractor, refrigeration contractor, electrical contractor, plumbing contractor, or hydronics contractor who is licensed under Chapter 4740. or section 3781.102 of the Revised Code or who is licensed or registered under section 715.27 of the Revised Code;

(E) A real estate broker, real estate salesperson, foreign real estate dealer, or foreign real estate salesperson who is licensed under Chapter 4735. of the Revised Code;

(F) A real estate appraiser who is licensed under Chapter 4763. of the Revised Code;

(G) A public insurance adjuster who holds a valid certificate of authority issued under Chapter 3951. of the Revised Code or an employee or representative of an insurer licensed to transact business in this state under Title XXXIX of the Revised Code who conducts an inspection of any property or structure for purposes related to the business of insurance;

(H) A commercial applicator of pesticide who is licensed under Chapter 921. of the Revised Code.

Sec. 4768.04.  There is hereby created the Ohio home inspector board consisting of five members. The governor shall appoint three members who are licensed home inspectors and who each represent different national organizations that consist of and represent home inspectors. The president of the senate and the speaker of the house of representatives each shall appoint one member who represents the public and has no financial interest in the home inspection industry. Not more than three members of the board shall be members of the same political party.

The governor, president of the senate, and speaker of the house of representatives shall make the initial appointments to the board not later than ninety days after the effective date of this section. Of the initial appointments to the board, the governor shall appoint one member to a term ending one year after the effective date of this section, one member to a term ending three years after that date, and one member to a term ending five years after that date. The president of the senate shall appoint one member to a term ending two years after that date, and the speaker of the house of representatives shall appoint one member to a term ending four years after that date. Thereafter, each term shall be for five years, ending on the same day of the same month as the term that it succeeds. Each member shall hold office from the date of appointment until the end of the term for which the member was appointed. Vacancies shall be filled in the manner provided for original appointments. A member appointed to fill a vacancy prior to the expiration of a term shall hold office for the remainder of that term. A member shall continue in office subsequent to the expiration of the term until the member's successor takes office.

The members of the board shall not be compensated but shall be reimbursed for actual expenses reasonably incurred in the performance of their duties as members.

A member may be removed for misconduct, neglect of duty, incapacity, or malfeasance by the person who appointed that member.

Sec. 4768.05. (A) The Ohio home inspector board shall adopt rules in accordance with Chapter 119. of the Revised Code to do all of the following:

(1) Establish standards to govern disciplinary proceedings conducted pursuant to section 4768.13 of the Revised Code and the reinstatement of home inspector licenses the board suspends or revokes pursuant to those proceedings;

(2) Establish the amount of the following fees in an amount that is sufficient to defray necessary expenses incurred in the administration of this chapter:

(a) The fee, which shall not exceed five hundred dollars, for applying for and receiving a license issued under section 4768.07 of the Revised Code;

(b) The fee, which shall not exceed five hundred dollars, for renewal of a license under section 4768.09 of the Revised Code;

(c) Any other fees as required by this chapter.

(3) Specify the information that must be provided on an application for licensure under this chapter;

(4) Establish procedures for processing, approving, and denying applications for licensure under this chapter;

(5) In accordance with division (C)(1) of this section, specify methods and procedures the board shall use to approve a curriculum of education individuals must successfully complete to obtain a license under this chapter;

(6) In accordance with division (C)(2) of this section, specify methods and procedures the board shall use to approve a curriculum of experience that an individual may elect to complete the proof of experience requirement specified in division (A)(6) of section 4768.07 of the Revised Code;

(7) Establish the administrative reporting and review requirements for parallel inspections or field experience to assure that an applicant for a license satisfies the requirements of division (A)(6) of section 4768.07 of the Revised Code, as applicable;

(8) Establish a curriculum for continuing education that a licensed home inspector shall complete to satisfy the requirements for continuing education specified in section 4768.08 of the Revised Code and procedures to assure continuing education requirements are updated periodically to make those requirements consistent with home inspection industry practices;

(9) Establish requirements an institution, organization, company, or individual shall satisfy to obtain approval to provide courses or programs that enable a licensed home inspector to satisfy the requirements for continuing education specified in section 4768.08 of the Revised Code and establish procedures that the superintendent of real estate and professional licensing shall use to approve an institution, organization, company, or individual that satisfies the requirements the board establishes;

(10) Establish procedures and standards that the superintendent shall use to approve courses and programs, including online courses and programs, offered by an entity that is approved by the superintendent to offer continuing education courses or programs pursuant to the rules adopted by the board under division (A)(9) of this section;

(11) Establish both of the following fees:

(a) The fee an entity described in division (A)(9) of this section shall pay to receive approval to offer continuing education courses and programs;

(b) The fee an entity that is approved to offer continuing education courses and programs shall pay for each course or program that the entity wishes to have the superintendent approve pursuant to the rules adopted by the board under division (A)(10) of this section.

(12) Establish reporting requirements for a licensed home inspector to follow to demonstrate that the licensed home inspector successfully completed the continuing education requirements specified in section 4768.08 of the Revised Code, and procedures for the superintendent to follow to determine the veracity of the licensed home inspector's continuing education report;

(13) Establish requirements for conducting home inspections and standards of practice for home inspectors and conflict of interest prohibitions to the extent that those provisions do not conflict with divisions (A) to (D) of section 4768.14 of the Revised Code;

(14) Specify the format and content of all affidavits and other documents required for the administration of this chapter;

(15) Specify requirements for settlement agreements entered into between the superintendent and a licensed home inspector under division (C) of section 4768.13 of the Revised Code;

(16) Establish procedures, in accordance with division (K) of section 121.08 of the Revised Code, to have criminal records checks conducted by the bureau of criminal identification and investigation for all applicants for licensure.

(B) The board shall approve a nationally recognized examination that the board determines is valid and reliable that individuals must pass to obtain a license issued under this chapter.

(C) The board shall approve a curriculum of experience that an individual may elect to complete to satisfy the proof of experience requirement specified in division (A)(6) of section 4768.07 of the Revised Code and a curriculum of education individuals must successfully complete to obtain a license issued under this chapter. The approved experience requirement shall consist of forty hours of work in the home inspection field, as specified in division (C)(2) of this section, and the approved education shall consist of forty hours of classroom instruction, as specified in division (C)(1)(a) of this section.

(1) The board shall approve only a curriculum of education that satisfies both of the following requirements:

(a) The curriculum includes a requirement that an individual, in order to successfully complete the curriculum, complete at least forty hours of classroom instruction, including instruction about compliance with the requirements specified in this chapter, inspection safety, report writing, and any other administrative matters required by the board.

(b) The curriculum satisfies any other requirements the board established in rules it adopts.

(2) The board shall approve only a curriculum of experience that includes a requirement that an individual, in order to successfully complete the curriculum, must perform at least forty hours of work in the home inspection field that allows the individual to obtain practical experience or training regarding home inspections.

Sec. 4768.06.  (A) The superintendent of real estate and professional licensing shall do all of the following:

(1) Administer this chapter;

(2) Provide the Ohio home inspector board with meeting space, staff services, and other technical assistance required by the board to carry out the duties of the board under this chapter;

(3) Provide each applicant for a home inspector license with a copy of the requirements for home inspections specified in rules adopted by the board pursuant to division (A)(13) of section 4768.05 of the Revised Code, and make those requirements available to the public by posting them on the web site maintained by the department of commerce;

(4) In accordance with division (B) of this section, issue a home inspector license to, or renew a home inspector license for, any person who satisfies the requirements specified in this chapter for such licensure or renewal;

(5) Retain all licensure application materials submitted to the superintendent, or an electronic image of such materials, for a period of five years after the date of the receipt of the materials and maintain a register of the names and addresses of all individuals to whom the superintendent has issued or renewed a license under this chapter for a period of five years after the date of issuance, renewal, or expiration of a license, whichever is later;

(6) Have criminal records checks conducted for each applicant in accordance with section 121.08 of the Revised Code and the procedures specified in rules adopted by the board pursuant to division (A)(16) of section 4768.05 of the Revised Code;

(7) In accordance with the procedures specified in rules adopted by the board in accordance with division (A)(9) of section 4768.05 of the Revised Code, approve an institution, organization, company, or individual wishing to provide continuing education courses or programs if that institution, organization, company, or individual satisfies the requirements specified in rules adopted by the board in accordance with that division and pays the fee established in rules adopted by the board pursuant to division (A)(11)(a) of that section;

(8) In accordance with the procedures specified in rules adopted by the board in accordance with division (A)(10) of section 4768.05 of the Revised Code, approve a course or program that a licensed home inspector may complete to satisfy the continuing education requirements specified in section 4768.08 of the Revised Code if all of the following are satisfied:

(a) The course or program is offered by an entity approved by the superintendent pursuant to division (A)(7) of this section.

(b) The course or program satisfies the standards established in rules adopted by the board pursuant to division (A)(10) of section 4768.05 of the Revised Code.

(c) The entity pays the fee established in rules adopted by the board pursuant to division (A)(11)(b) of section 4768.05 of the Revised Code.

(9) Issue all orders necessary to implement this chapter;

(10) In accordance with section 4768.12 of the Revised Code, investigate complaints concerning an alleged violation of this chapter or the conduct of any licensee and subpoena witnesses in connection with those investigations, as provided in that section.

(B) The superintendent shall issue a home inspector license only to an individual and shall not issue a license to a corporation, limited liability company, partnership, or association, although a licensed home inspector may sign a home inspection report in a representative capacity on behalf of any of those types of entities.

(C) The superintendent may establish and maintain an investigation and audit section to investigate complaints and conduct inspections, audits, and other inquiries as in the judgment of the superintendent are appropriate to enforce this chapter. The superintendent may utilize the investigators and auditors employed pursuant to division (B)(4) of section 4735.05 of the Revised Code or licensees to assist in performing the duties specified in division (A)(10) of this section.

Sec. 4768.07. (A) To obtain a license to perform home inspections, an individual shall submit an application to the superintendent of real estate and professional licensing on a form the superintendent provides, the fee established in rules adopted by the Ohio home inspector board pursuant to division (A)(2) of section 4768.05 of the Revised Code, the information necessary for the superintendent to have a criminal records check conducted in accordance with section 121.08 of the Revised Code and the procedures the board adopts in rules pursuant to division (A)(16) of section 4768.05 of the Revised Code, and the fee established by the board to cover the costs of that criminal records check; and shall satisfy the requirements set forth in this section. Except as otherwise specified in division (B) of this section, the application shall include all of the following:

(1) A pledge the applicant signs, agreeing to comply with the rules adopted by the board pursuant to division (A)(13) of section 4768.05 of the Revised Code;

(2) A statement that the applicant understands the grounds for any disciplinary action that may be initiated under this chapter;

(3) Proof of holding a comprehensive general liability insurance policy or a commercial general liability insurance policy in accordance with section 4768.11 of the Revised Code;

(4) Proof of successfully passing, within two years before the date of the application, the home inspector examination approved by the board pursuant to division (B) of section 4768.05 of the Revised Code;

(5) Proof of successfully completing a curriculum of education approved by the board in accordance with rules the board adopts pursuant to division (A)(5) of section 4768.05 of the Revised Code;

(6) Proof that the applicant has experience in the field of home inspections by successfully completing a curriculum of experience approved by the board in accordance with rules the board adopts pursuant to division (A)(6) of section 4768.05 of the Revised Code or by successfully completing ten parallel inspections;

(7) Proof that the applicant is at least eighteen years of age;

(8) Proof that the applicant has graduated from the twelfth grade, received a general educational development diploma, or satisfactorily completed a program that is the equivalent to graduating from the twelfth grade or receiving a general educational development diploma;

(9) Any other information the board requires that the board determines is relevant to receiving a license to practice as a licensed home inspector.

(B) The superintendent shall not require a person described in division (B) or (C) of section 4768.03 of the Revised Code who wishes to obtain a license to perform home inspections under this chapter to submit proof of education and experience as required under divisions (A)(5) and (6) of this section in the person's application in order for that person to receive a license. Such a person, however, shall satisfy all other requirements specified in division (A) of this section in order to receive a license.

(C) The act of submitting an application to the superintendent does not create, shall not be construed as creating, and is not intended to indicate licensure as a home inspector.

Sec. 4768.08. During each one-year period that a license is valid, a licensed home inspector shall successfully complete not less than six hours of continuing education instruction in courses or programs directly applicable to the standards of practice and requirements specified in rules adopted by the Ohio home inspector board pursuant to division (A)(13) of section 4768.05 of the Revised Code.

The superintendent of real estate and professional licensing shall accept only those courses and programs the superintendent approves in accordance with division (A)(8) of section 4768.06 of the Revised Code prior to the date the licensed home inspector completes the course or program. The superintendent shall not include parallel inspections completed by a person for credit toward satisfying the continuing education requirements specified in this section.

Sec. 4768.09. (A) A home inspector license issued or renewed pursuant to this chapter expires one year after the date of issuance or renewal.

(B)(1) To renew a home inspector license, a licensed home inspector shall file a renewal application within the ninety-day period immediately preceding the date the license expires with the superintendent of real estate and professional licensing pursuant to the procedures set forth in Chapter 4745. of the Revised Code, along with proof of holding or being covered by a comprehensive general liability insurance policy or a commercial general liability insurance policy in accordance with section 4768.11 of the Revised Code and proof of satisfying the continuing education requirements specified in section 4768.08 of the Revised Code.

(2) A licensed home inspector who fails to renew a license before its expiration may, during the three months following the expiration, renew the license by following the procedures in division (B)(1) of this section and paying a late fee in an amount the Ohio home inspector board establishes. A licensed home inspector who applies for a late renewal pursuant to this division shall not engage in any activities permitted under the license being renewed until the superintendent notifies the licensed home inspector that the licensed home inspector's license has been renewed.

(3) A licensed home inspector who fails to renew a license prior to its expiration or during the three months following its expiration may obtain a license by complying with the application procedures and meeting the requirements for obtaining a license set forth in section 4768.07 of the Revised Code and by paying the application and licensure fee established in rules adopted by the board pursuant to division (A)(2) of section 4768.05 of the Revised Code.

(C) The superintendent shall not renew a license if any of the following conditions apply:

(1) The licensed home inspector is in violation of any provision of this chapter or order of the board or the superintendent.

(2) The licensed home inspector fails to submit proof of holding a comprehensive general liability insurance policy or a commercial general liability insurance policy in accordance with section 4768.11 of the Revised Code.

(3) The licensed home inspector fails to submit proof of satisfying the continuing education requirements specified in section 4768.08 of the Revised Code.

(D) A licensed home inspector who fails to submit the proof required under division (C)(2) or (3) of this section may obtain a license by following the application procedures and meeting the requirements for obtaining a license set forth in section 4768.07 of the Revised Code and by paying the application and licensure fee established in rules adopted by the board pursuant to division (A)(2) of section 4768.05 of the Revised Code.

Sec. 4768.10. The superintendent of real estate and professional licensing may issue a home inspector license to an individual who holds a license, registration, or certification as a home inspector in another jurisdiction if that individual submits an application on a form the superintendent provides, pays the fee the Ohio home inspector board prescribes, and satisfies all of the following requirements:

(A) The individual is licensed, registered, or certified as a home inspector in a jurisdiction the board determines grants the same privileges to persons licensed under this chapter as this state grants to persons in that jurisdiction, and that jurisdiction has licensing, registration, or certification requirements that are substantially similar to, or exceed, those of this state.

(B) The individual files proof of signing a pledge with the board stating that the individual is familiar with and shall comply with this chapter and the rules adopted by the board pursuant to division (A)(13) of section 4768.05 of the Revised Code.

(C) The individual agrees to all of the following in a written statement that the individual submits to the superintendent:

(1) To provide the superintendent the name and address of an agent to receive service of process in this state or that the individual authorizes the superintendent to act as agent for that individual;

(2) That service of process in accordance with the Revised Code is proper and the individual is subject to the jurisdiction of the courts of this state;

(3) That any cause of action arising out of the conduct of the individual's business in this state shall be filed in the county in which the events that gave rise to that cause of action occurred.

Sec. 4768.11. Every licensed home inspector shall maintain, or be covered by, a comprehensive general liability insurance policy or a commercial general liability insurance policy with coverage limits of not less than one hundred thousand dollars per occurrence and not less than a three hundred thousand dollar aggregate limit, providing coverage against liability of the licensed home inspector for loss, damage, or expense as a result of an act that occurred while the licensed home inspector was on the premises performing a home inspection. If the employer of a licensed home inspector maintains such an insurance policy covering the licensed home inspector, the licensed home inspector is not required to maintain the licensed home inspector's own comprehensive general liability insurance policy or commercial general liability insurance policy.

Sec. 4768.12. (A) The superintendent of real estate and professional licensing shall investigate complaints against licensed home inspectors on receipt of a complaint concerning any alleged violation of this chapter. The superintendent may employ investigators and auditors to assist in investigating complaints and conducting investigations, audits, and other inquiries that the superintendent considers appropriate to enforce this chapter. The investigators and auditors may review and audit, during normal business hours, the licensed home inspector's business records that are directly related to complaints.

(B) Within five days after a person files a complaint against a licensed home inspector with the superintendent, the superintendent shall provide to that person an acknowledgment of the receipt of the complaint and send a notice regarding that complaint to the licensee who is the subject of the complaint. The superintendent shall include in that notice a description of the activities in which the licensed home inspector allegedly engaged that violate this chapter. Within twenty days after the superintendent sends the notice to the complainant and the licensed home inspector who is the subject of the complainant's complaint, the complainant and the licensed home inspector may file with the superintendent a request to have an informal mediation hearing. If both the complainant and the licensed home inspector file such a request, the superintendent shall notify the complainant and the licensed home inspector of the date and time of the informal mediation hearing. An investigator employed by the superintendent shall conduct the informal mediation hearing. If the complainant and the licensed home inspector reach an accommodation during that informal mediation hearing, the investigator shall send a written report describing the accommodation to the superintendent, complainant, and licensee. Notwithstanding division (C) of this section, the written report describing the accommodation is a public record for purposes of section 149.43 of the Revised Code. The superintendent shall close the complaint upon satisfactory completion of the accommodation. If the licensee or the complainant fails to file a request for an informal mediation hearing, or if the parties fail to agree on an accommodation during that informal mediation hearing, the superintendent shall proceed with an investigation of the complaint.

(C) All information related to investigations and audits is confidential and is not a public record under section 149.43 of the Revised Code. Nothing in this section shall be construed as prohibiting the superintendent from releasing information relating to a licensed home inspector to a law enforcement officer, the attorney general, or the appropriate prosecutorial authority. If the attorney general, a law enforcement officer, or a prosecutorial authority receives information relating to a licensed home inspector from the superintendent under this section the attorney general, law enforcement officer, or prosecutorial authority shall comply with the same requirements regarding confidentiality as those with which the superintendent must comply, notwithstanding any conflicting provision of the Revised Code or procedure of the attorney general, law enforcement officer, or prosecutorial authority that applies when the attorney general, law enforcement officer, or prosecutorial authority is dealing with other information in its possession.

(D) The Ohio home inspector board or the superintendent may compel, by order or subpoena, the attendance of witnesses to testify in relation to any matter over which the board or superintendent has jurisdiction and which is the subject of inquiry and investigation by the board or superintendent, and require the production of any book, paper, or document pertaining to such matter. For such purpose, the board or superintendent shall have the same power as judges of county courts to administer oaths, compel the attendance of witnesses, and punish them for refusal to testify. Service of the subpoena may be made by sheriffs or constables, or by certified mail, return receipt requested, and the subpoena shall be considered served on the date delivery is made or the date the person refused to accept delivery. A witness shall receive, after the witness's appearance before the board or superintendent, the fees and mileage allowed in civil actions in courts of common pleas. If two or more witnesses travel together in the same vehicle, the mileage fee shall be paid to only one of those witnesses, but the witnesses may agree to divide the fee among themselves in any manner.

(E) In addition to the powers granted to the board and superintendent under this section, in case any person fails to file any statement or report, obey any subpoena, give testimony, answer questions, or produce any books, records, or papers as required by the board or superintendent under this chapter, the court of common pleas of any county in the state, upon application made to it by the board or superintendent setting forth such failure, may make an order awarding process of subpoena or subpoena duces tecum for the person to appear and testify before the board or superintendent, and may order any person to give testimony and answer questions, and to produce books, records, or papers, as required by the board or superintendent. Upon the filing of such order in the office of the clerk of the court of common pleas, the clerk, under the seal of the court, shall issue process of subpoena for the person to appear before the board or superintendent at a time and place named in the subpoena, and each day thereafter until the examination of such person is completed. The subpoena may contain a direction that the witness bring with the witness to the examination any books, records, or papers mentioned in the subpoena. The clerk shall also issue, under the seal of the court, such other orders, in reference to the examination, appearance, and production of books, records, or papers, as the court directs. If any person so summoned by subpoena fails to obey the subpoena, to give testimony, to answer questions as required, or to obey an order of the court, the court, on motion supported by proof, may order an attachment for contempt to be issued against the person charged with disobedience of any order or injunction issued by the court under this chapter. If the person is brought before the court by virtue of the attachment, and if upon a hearing the disobedience appears, the court may order the offender to be committed and kept in close custody.

Sec. 4768.13. (A) If, upon examining the results of an investigation, the superintendent of real estate and professional licensing determines that reasonable evidence exists that a licensed home inspector has violated this chapter or Chapter 1345. of the Revised Code or engaged in an activity described in divisions (A) to (H) of section 4768.14 of the Revised Code, the superintendent shall proceed in accordance with the notice and hearing requirements prescribed in Chapter 119. of the Revised Code. After a hearing officer conducts a hearing and issues a report and recommendations pursuant to division (D) of this section, the Ohio home inspector board shall review the report and recommendations and shall order the disciplinary action the board considers appropriate, which may include any one or more of the following:

(1) A reprimand;

(2) A fine not exceeding one thousand dollars per violation;

(3) Completion of hours of education in subjects related to the underlying cause of the violation in an amount determined by the board;

(4) Suspension of the license until the licensed home inspector complies with conditions the board establishes;

(5) Suspension of the license for a specific period of time;

(6) Revocation of the license.

(B) The superintendent shall not credit any hours of education a licensed home inspector completes in accordance with division (A)(3) of this section toward satisfying the requirements for continuing education specified in section 4768.08 of the Revised Code.

(C) At any time after the superintendent notifies a licensed home inspector in accordance with division (A) of this section that a hearing will be held but before the date of the hearing, the licensed home inspector may apply to the superintendent to enter into a settlement agreement regarding the alleged violation. The superintendent and the licensed home inspector shall comply with the requirements for settlement agreements established in rules adopted by the board pursuant to division (A)(15) of section 4768.05 of the Revised Code. If the parties enter into the settlement agreement and comply with all of the requirements set forth in that agreement, the investigation regarding that alleged violation is considered closed. Notwithstanding division (C) of section 4768.12 of the Revised Code, the settlement agreement is a public record for purposes of section 149.43 of the Revised Code.

(D) The superintendent shall appoint a hearing officer to conduct adjudication hearings in accordance with Chapter 119. of the Revised Code. The superintendent shall appoint a person who has been admitted to the practice of law in this state to serve as the hearing officer.

In accordance with section 119.09 of the Revised Code, after conducting a hearing, a hearing officer shall submit to the board a report of the hearing and a recommendation for the action to be taken against the licensed home inspector. All parties may file objections to the report and recommendations as permitted under that section, and the board shall issue an order in accordance with the procedures prescribed in that section.

(E) The decision and order of the board is final, subject to review in the manner provided in Chapter 119. of the Revised Code and appeal to the court of common pleas in Franklin county.

Sec. 4768.14. The superintendent of real estate and professional licensing may refuse to issue or renew a license if the applicant for the license or renewal has done any of the following:

(A) Accepted compensation or other valuable consideration from more than one interested party for the same service without the written consent of all interested parties;

(B) Accepted commissions, allowances, or other valuable consideration, directly or indirectly, from other parties who deal with a client in connection with the home inspection for which the home inspector is responsible, or from other parties who are involved in any part of the real estate transaction involving a residential building for which that home inspector conducted a home inspection;

(C) Repaired, replaced, or upgraded, or solicited to repair, replace, or upgrade, for compensation or other valuable consideration, systems or components in a residential building within one year after completing a home inspection of that residential building;

(D) Failed to disclose promptly to a client written information about any business interest of the home inspector that may affect the client in connection with the home inspection;

(E) Pleaded guilty to or been convicted of, in a court of competent jurisdiction and during the five years immediately preceding the date the applicant submits the applicant's application for licensure or renewal, a felony or an equivalent offense under the laws of any other state or the United States;

(F) Pleaded guilty to or was convicted of, in a court of competent jurisdiction, any crime of moral turpitude or was required to register under Chapter 2950. of the Revised Code;

(G) Failed to satisfy the continuing education requirements specified in section 4768.08 of the Revised Code;

(H) Failed to maintain or be covered by a comprehensive general liability insurance policy or a commercial general liability insurance policy as required under section 4768.11 of the Revised Code;

(I) Violated a provision of this chapter or Chapter 1345. of the Revised Code.

Sec. 4768.15. The superintendent of real estate and professional licensing may apply to any court of common pleas to enjoin a violation of this chapter. Upon a showing by the superintendent that a person has violated or is violating this chapter, the court shall grant an injunction, restraining order, or other appropriate relief.

Sec. 4768.16. (A) Upon receipt of a written complaint or upon the motion of the superintendent of real estate and professional licensing, the superintendent may investigate any person that has allegedly violated section 4768.02 of the Revised Code, except that the superintendent shall not investigate a complaint under this section if the person who is the subject of the complaint held a valid license issued under this chapter any time during the twelve months preceding the date of the alleged violation. At any time before, during, or after the investigation, the superintendent may refer any complaint or investigation to the consumer protection section of the attorney general's office for enforcement action authorized by Chapter 1345. of the Revised Code.

(B) The superintendent has the same powers to investigate an alleged violation of section 4768.02 of the Revised Code as those powers specified in section 4768.12 of the Revised Code. If, after an investigation pursuant to section 4768.12 of the Revised Code, the superintendent determines that reasonable evidence exists that a person has violated section 4768.02 of the Revised Code, within seven days after that determination, the superintendent shall send a written notice to that person by regular mail and shall include in the notice the information specified in section 119.07 of the Revised Code for notices given to licensees, except that the notice shall specify that a hearing will be held and specify the date, time, and place of the hearing.

(C) The Ohio home inspector board shall hold a hearing regarding the alleged violation in the same manner prescribed for an adjudication hearing under section 119.09 of the Revised Code. If the board, after the hearing, determines a violation has occurred, the board may impose a fine on the person, not exceeding five hundred dollars per violation. Each day a violation occurs or continues is a separate violation. The board shall determine the terms of payment. The board shall maintain a transcript of the proceedings of the hearing and issue a written opinion to all parties, citing its findings and grounds for any action taken. The board's determination regarding a violation of section 4768.02 of the Revised Code is an order that the person may appeal in accordance with section 119.12 of the Revised Code.

(D) If the person who allegedly committed a violation of section 4768.02 of the Revised Code fails to appear for a hearing, the board may request the court of common pleas of the county where the alleged violation occurred to compel the person to appear before the board for a hearing.

(E) If the board assesses a person a civil penalty for a violation of section 4768.02 of the Revised Code and the person fails to pay that civil penalty within the time period prescribed by the board, the superintendent shall forward to the attorney general the name of the person and the amount of the civil penalty for the purpose of collecting that civil penalty. In addition to the civil penalty assessed pursuant to this section, the person also shall pay any fee assessed by the attorney general for collection of the civil penalty.

Sec. 4768.17. (A) Except as provided in divisions (B) and (C) of this section, nothing in this chapter shall be construed to create or imply a private cause of action against a licensed home inspector for a violation of this chapter if that action is not otherwise maintainable under common law. Nothing in this chapter shall be construed to waive or remove any cause of action that may arise under Chapter 1345. of the Revised Code.

(B) An action for damages that is based on professional services that were rendered or that should have been rendered by a licensed home inspector shall not be brought, commenced, or maintained unless the action is filed within two years after the date that the home inspection is performed.

(C) The statute of limitations specified in division (B) of this section shall be tolled for the period that begins on the date the client files a complaint with the superintendent of real estate and professional licensing as provided in section 4768.16 of the Revised Code and ends on any of the following dates, whichever occurs latest:

(1) The date the superintendent declines to investigate the client's complaint;

(2) The date the superintendent determines reasonable evidence does not exist that the person has violated section 4768.02 of the Revised Code;

(3) The date the Ohio home inspector board determines whether a violation has occurred.

(D) The remedies provided under sections 4768.12 to 4768.15 of the Revised Code are the exclusive remedies for alleged violations of any conflict of interest prohibitions specified in the rules adopted by the board pursuant to division (A)(13) of section 4768.05 of the Revised Code.

(E) Nothing in this section shall be construed to prohibit the superintendent of real estate and professional licensing from investigating, or to prohibit the board from taking action against a licensed home inspector for violations of this chapter if the investigation commences more than one year after the date that the licensed home inspector conducts the home inspection that is the subject of the investigation and action.

Sec. 4768.18. The superintendent of real estate and professional licensing shall deposit all money collected under this chapter in the state treasury to the credit of the home inspectors fund, which is hereby created. Money credited to the fund shall be used solely by the superintendent to pay costs associated with the administration and enforcement of this chapter.

Sec. 4768.19. On receipt of a notice pursuant to section 3123.43 of the Revised Code, the superintendent of real estate and professional licensing shall comply with sections 3123.41 to 3123.50 of the Revised Code and any applicable rules adopted under section 3123.63 of the Revised Code with respect to a license issued pursuant to this chapter.

Sec. 4768.99. Whoever violates division (A) of section 4768.02 of the Revised Code is guilty of a misdemeanor of the third degree on a first offense and a misdemeanor of the first degree on each subsequent offense. A violation of section 4768.02 of the Revised Code is an unfair and deceptive act or practice in violation of section 1345.02 of the Revised Code.

Section 2.  That existing sections 121.08 and 4745.01 of the Revised Code are hereby repealed.

Section 3.  Section 4768.02 of the Revised Code takes effect two hundred ten days after the effective date of this act.

Section 4.  Notwithstanding section 4768.04 of the Revised Code as enacted by this act, persons appointed to the Ohio Home Inspector Board during the first year after the effective date of this act need not be licensed as required under that section.

Section 5.  Not later than one hundred eighty days after the effective date of this act, the Ohio Home Inspector Board shall adopt the rules the Board is required to adopt under this act.

Section 6. (A) Notwithstanding section 4768.07 of the Revised Code, as enacted by this act, and except as provided under section 4768.14 of the Revised Code, as enacted by this act, during the period of time beginning on the date the last initial member of the Ohio Home Inspector Board is appointed pursuant to section 4768.04 of the Revised Code, as enacted by this act, and ending one hundred twenty days after that date, the Superintendent of Real Estate and Professional Licensing shall issue a home inspector license if an individual applies for a license on a form the Superintendent provides and pays the fee specified in section 4768.05 of the Revised Code, as enacted by this act, and if the applicant demonstrates all of the following:

(1) Proof of maintaining or being covered by a comprehensive general liability insurance policy or a commercial general liability insurance policy in accordance with section 4768.11 of the Revised Code, as enacted by this act;

(2) Proof by direct documentation or signed affidavit attesting to having met any one of the following requirements to demonstrate participation in the home inspection field prior to the effective date of this act:

(a) Having performed at least two hundred home inspections for clients for compensation or other valuable consideration;

(b) Having successfully passed the National Home Inspector Examination offered by the Examination Board of the Professional Home Inspectors or having successfully passed the nationally recognized examination approved by the Board pursuant to division (B) of section 4768.05 of the Revised Code, as enacted by this act;

(c) Having actively operated a home inspection business in this state for three years before the effective date of this act under a business name officially registered with the Secretary of State;

(d) Having been employed as a home inspector for the consecutive twenty-four months before the effective date of this act by an inspection company or individual whose owner or manager meets the license requirement specified in this section.

(3) Proof of signing a pledge agreeing to comply with the requirements specified in rules adopted by the Board pursuant to division (A)(13) of section 4768.05 of the Revised Code, as enacted by this act;

(4) In a written statement, acknowledge that the individual understands the grounds for any disciplinary action that may be initiated under Chapter 4768. of the Revised Code, as enacted by this act.

If the Board determines necessary, the Board may request the Superintendent to have a criminal records check conducted pursuant to section 121.08 of the Revised Code and the rules adopted by the Board pursuant to division (A)(16) of section 4768.05 of the Revised Code, as enacted by this act, on any applicant who applies for a license under this section.

(B) Any license issued under this section shall expire one year after the date the license was issued. A licensed home inspector may renew the licensed home inspector's license in accordance with section 4768.09 of the Revised Code, as enacted by this act.

(C) As used in this section, "home inspection" and "residential building" have the same meanings as in section 4768.01 of the Revised Code, as enacted by this act. "Home inspector" means an individual who conducts home inspections for compensation or other valuable consideration.