Originally Posted By: Nick Gromicko This post was automatically imported from our archived forum.
NACHI’s air fare bills over the years for flying our legal counsels around the country to watch inspectors get sued so that we have a contract that doesn’t lose, alone probably add up to many tens of thousands of dollars… or more money than the Kentucky Licensing Board of Home Inspectors has for a total budget.
Originally Posted By: Nick Gromicko This post was automatically imported from our archived forum.
And on top of NACHI’s contract protecting every NACHI member… no court in America has ever ruled any clause of our contract unconscionable. It has always held up in court, so to speak.
Besides, it is used by the largest association in KY, humility prevents me from telling you which association that is  .
Originally Posted By: tmattingly This post was automatically imported from our archived forum.
I’m with Erby on this since I’m a new inspector that just paid fairly big money for a protection plan (ie Inspection Agreement) that was approved by my E&O carrier and the my lawyer will stand by in court. I’m not sure of all the other details Mike, but agreements were never mentioned in the earlier HB resolution unless I’m mistaken. It did discuss insurance, licence requirements, ect, but I do not think the agreement was in the original HB. I know that the HB resolutions are subject to change before becoming law, but we cannot give input when not expecting this kind of change, that’s all Erby is stating.
Will Ky law represent me in court if the agreement is deemed unfair to the client? Or will my E&O carrier have to pay the bill even though they had no say in the agreement? This will make it harder for Ky Inspectors to get reasonable rates. [/quote]
Originally Posted By: dgreen1 This post was automatically imported from our archived forum.
Tim,
First, SB34 as passed gives a very broad authority to the Board of Home Inspectors to determine how the profession will operate in Kentucky. That includes the use of Service Agreements, standards of practice, ethical issues etc..
Concerning a standardized agreement, the standardized contract will contain all the provision that have been used in contracts for 20 years. All of the inspector Board members have submitted thier contracts as well as getting sample agreements from Allen & Associates (E&O Company) and I have now submited NACHI's agreement per Nick's eariler suggestion. Listen, I have been in this business for 20 years and I have to operate under the same conditions that are put in place for you...I do not intend to allow them to lessen the strength of the front door to my legal protection. We have legal counsel sitting at the Board table during every meeting advising us on everything we are doing. It was the feeling of the majority of the Board that by having a Standardized Contract we will know that every inspector is providing the proper disclosures to the consumer reducing the likelyhood for complaints. Additionally a State mandated Standardized Agreement is less likely to be thrown out of court so I cannot see it effecting your ability to get insured. If that begins to be a problem you need to let the Board know so we can take that we can deal with it.
Of greater concern to new inspectors such as yourself is the grandfathering clause written into the law. Per the law itself, in order to be eligle for grandfathering you had to have been actively in the inspection business for 1 year prior to the effective date of the law. You must also have completed a minimum of 25 fee paid inspections in the last 12 months or 100 inspections in a year. The part that is going to be a problem for many newer inspectors is being in business a year prior to the effective date of the law. The effective date of SB34 was July 13,2004 meaning that in order to qualify for grandfathering you had to be fully in business by July 13, 2003. You will also need to prove this with actual verifible reports. This is hardwritten in the law and the Board has no power to change it. So if you got into the business after July 13, 2003 you will be required to complete all educational, experience and testing requirements put in place by the Board for new inspectors before getting the license. Just thought you should know...
-- Michael Green
1-877-INSPECT/InspectorUSA
Kaesar & Blair Advertising Specialties Dealer
Originally Posted By: tmattingly This post was automatically imported from our archived forum.
When do you think the educational requirements will be in place or the testing requirements. For us who decided to join this business after the grandfathering clause as much notice as possible would be great. Do you think this will be in place before the law goes into effect with the timing running short for Ky politics?
Also, would it benefit a new inspector to receive a lic in Indiana since they have all laws written and then get a Ky lic using reciprocity?
Originally Posted By: dgreen1 This post was automatically imported from our archived forum.
Tim,
We are hard at work on that at this time...the Board is meeting every two weeks spending a full day in each meeting. Our goal is to get the regulations written and to the Legislative review committees by December. After that we have to wait on them to approve them before issuing licenses. The problem is we got appointed so late it has really put the industry and new inspectors especially in a bind. I am going to propose some sort of waiver for those who can demonstate competance but maybe did not make that cut-off. I don't know if it can be done though. I will do my best.
There is no reciprocity provided in the law unless you move from a state such as Indiana to Kentucky and then only if they provide the same for KY residents moving there. Someone with an Indiana license will still need to fulfill all requirements to get the Kentucky license.
-- Michael Green
1-877-INSPECT/InspectorUSA
Kaesar & Blair Advertising Specialties Dealer
Originally Posted By: jbushart This post was automatically imported from our archived forum.
dgreen1 wrote:
a very broad authority to the Board of Home Inspectors to determine how the profession will operate in Kentucky. That includes the use of Service Agreements, standards of practice, ethical issues etc..
Mike,
I must differ with you in your interpretation of the powers of your board. Instead of being "very broad", the powers granted to your board are narrow and specfic and are limited to administratively as opposed to judiciously assisting in the implementation of the home inspection law. Since the law did not mandate a common contract, your committee may not have the legislative authority to create one. A home inspector in your state may successfully win this argument by contacting his state representative for support.
I would like to congratulate you on your plan to introduce a motion to allow inspectors a grace period in complying with any rules your board may impose since they are so late in getting out. This would be of real benefit to many inspectors, especially since the law mandates that each board member must also be licensed by the effective date of the law or be considered to have resigned his position.
Originally Posted By: jbushart This post was automatically imported from our archived forum.
The good news to Kentucky home inspectors (and bad news for Indiana home inspectors) is that the new law will prohibit home inspections from outside the state, unless those inspectors hold a Kentucky license issued by the board (198B.716).
If you live in Indiana (or any other neighboring state) and practice in Kentucky, you will need to stay current on these requirements as they develop.
As is often the case of, and motivation behind, most state licensing laws, this particular law will (at least initially) restrict some competition.
Originally Posted By: jbushart This post was automatically imported from our archived forum.
dgreen1 wrote:
. Per the law itself, in order to be eligle for grandfathering you had to have been actively in the inspection business for 1 year prior to the effective date of the law. You must also have completed a minimum of 25 fee paid inspections in the last 12 months or 100 inspections in a year.
Mike,
I think you might need to reconsider this.
The law states that grandfathering will be provided if the inspector "Has engaged in the practice of home inspections for at least one (1) year prior to enactment of KRS 198B.700 to 198B.738..." While the law was effective on 7/13/2004, it will not be officially enacted until 7/1/2006. For example, the law (effective on 7/13/2004) calls for the board to create continuing education requirements. The enactment of these requirements cannot be prior to their existance, but can only be enacted on or after 7/1/2006 or later.
The grandfathering section states that this provision will expire on "1/1/2007".
Additionally, the law states that grandfathering will be provided if the inspector "documents the performance of at least twenty-five (25) home inspections performed for compensation in the previous twelve months or at least one hundred (100) home inspections performed for compensation in the individual's career.
Thus, it appears from this wording, that any inspector who achieves 25 compensated home inspections within the period of 7/1/05 and 6/30/06, and who meets the other criteria (insurance, etc), will be grandfathered.
Originally Posted By: tmattingly This post was automatically imported from our archived forum.
Thanks James.
Those are my thoughts. The grandfathering clause was a little vague and I thought that 25 inspections during that 364 day period would be enough. If Mike is right it would be impossible for anyone who joined the profession in the last two years to be grandfathered regardless of the number of inspections preformed.
It is hard to get into a business when the rules are still in flux. It is a little scary trying to navigate these laws when they are not written, just proposed. There are less than 9 months to get all of this done, written, agreed to and then signed by our governor (who by the way has his hands full right now) for any non-grandfather inspector to be licensed.
Seems like a big challenge and I would like to thank Mike for stepping up on this since I lack the experience at this time to effect this change.
Originally Posted By: bkelly1 This post was automatically imported from our archived forum.
dgreen1 wrote:
Tim,
We are hard at work on that at this time...the Board is meeting every two weeks spending a full day in each meeting. Our goal is to get the regulations written and to the Legislative review committees by December. After that we have to wait on them to approve them before issuing licenses. The problem is we got appointed so late it has really put the industry and new inspectors especially in a bind. I am going to propose some sort of waiver for those who can demonstate competance but maybe did not make that cut-off. I don't know if it can be done though. I will do my best.
There is no reciprocity provided in the law unless you move from a state such as Indiana to Kentucky and then only if they provide the same for KY residents moving there. Someone with an Indiana license will still need to fulfill all requirements to get the Kentucky license.
I was under the impression that when Tn license kicked in there would be reciprocity between the two. Is this incorrect. I have turned down several in Ky, already, as I have not been following the requirements. Have paid no dues and am planning on not getting licensed there. I figured it would allow the Ky inspectors to get some numbers, and it only seemed right. Maybe not?
Originally Posted By: jbushart This post was automatically imported from our archived forum.
bkelly1 wrote:
I was under the impression that when Tn license kicked in there would be reciprocity between the two. Is this incorrect. I have turned down several in Ky, already, as I have not been following the requirements. Have paid no dues and am planning on not getting licensed there. I figured it would allow the Ky inspectors to get some numbers, and it only seemed right. Maybe not?
Ben,
The law provides reciprocity only for those relocating to Kentucky. If you are a nonresident and you want to inspect in Kentucky, you will need to apply to that board for a license. This license will subject you to the jurisdiction of the courts of Kentucky, should a consumer or the board wish to take action against you. (198B.716).
Originally Posted By: dgreen1 This post was automatically imported from our archived forum.
First I want to thank all of you for posting your thoughts here, I can’t tell you how much it helps me better serve the industry. As Member At Large I represent your interest and your participation helps me do that.
Now, everyone please remember that what I post here is peliminary only, everything that we do at this point is open for revision or reversal...thats why...I post it, so I can get your input to take back to the Board. It is my honest belief that everything that is done by this Board should be examined by the Kentucky inspector community before it is final and not have it dropped on everyones head at once. With this in mind, after making some calls, it appears that the legal implications of a standardized contract have be questioned and will likely be revisited at the next meeting. So I suggest we table that discussion until later.
Next concerning grandfathering...the question of effective date and date of enactment. The problem is that a portion of KRS 198B.700 was deemed enacted last July. It is very confusing and is being reviewed by the Board Counsel. During my call with the Administrative office today they pointed out that the law requires the 1 year and 25 inspections OR the completion of 100 inspections. If you have completed 100 inspections you can be grandfathered no matter when you entered the industry. For the other areas we will see how it goes.
James,
In my opinion, you are correct in much of what you point out...keep keeping me on my toes!!!! 
-- Michael Green
1-877-INSPECT/InspectorUSA
Kaesar & Blair Advertising Specialties Dealer
Originally Posted By: jbushart This post was automatically imported from our archived forum.
No problem, Mike. You have a big job and we appreciate all that you are doing. It is hard to keep up on 100% of everything, especially while you are in the middle of creating it.
The job of our committee is to keep this information available and flowing. Your contributions toward that end are of tremendous value. Thanks.
Originally Posted By: dgreen1 This post was automatically imported from our archived forum.
I wanted to update everyone on what occured at the last Board meeting.
1. We received clarification on the grandfathering clause from the Board's General Counsel...
The law was in fact fully enacted on July 13, 2004 when signed into law by the Governor. The statute requires an applicant to have been in the home inspection business 1 year prior to the enactment date AND either have completed 25 inspections in the last 12 months OR completed 100 inspections over the length of your career. The 1 year requirement is mandatory in order to get grandfathered no matter how many inspections you may have done. So in order to qualify for grandfathering under the you had to be active in the business by July 13, 2003.
2. Inspection Service Agreements: The Board is still considering this but if the Board provides a contact it will be informational only not mandatory usage.
3. The pre-licensing training requirements are as follows:
64 Hours of classroom training in "Core Home Inspection Curriculum" by a Board Approved Education Provider.
64 Hours of Labrotory/Field Training with at least 50% being onsite at residential property. This must be provided by a Board Approved Education Provider as well.
OR
Completion of a minimum of 100 inspections under the direct supervision of a Kentucky Licensed Home Inspector.
The content of "Core Home Inspection Curriculum" is yet to be decided.
Applicants will also need to pass the Board approved Exam. (Content and source is yet to be determined.)
This very similar to the old Lexington/Fayette Co. license requirement.
4. Continuing Education- Each License holder will be required to complete 28 hours of approved continuing education every two years. A portion will be a Core Home Inspection Class and a Legal/Ethics Class.
That's pretty much it. Please feel free to comment or ask questions.
Thanks,
-- Michael Green
1-877-INSPECT/InspectorUSA
Kaesar & Blair Advertising Specialties Dealer
I’m with Erby on this since I’m a new inspector that just paid fairly big money for a protection plan (ie Inspection Agreement) that was approved by my E&O carrier and the my lawyer will stand by in court. I’m not sure of all the other details Mike, but agreements were never mentioned in the earlier HB resolution unless I’m mistaken. It did discuss insurance, licence requirements, ect, but I do not think the agreement was in the original HB. I know that the HB resolutions are subject to change before becoming law, but we cannot give input when not expecting this kind of change, that’s all Erby is stating.