198.00.12 Ark. Code R. 001

Current through Register Vol. 49, No. 10, October, 2024

Rule 198.00.12-001 - Amendments to Rules: 103 R - Standards of Practice and Code of Ethics; and 603 C - Delinquent renewal fee

Benefits of the Proposed Rule or Regulation

1. Explain the need for the proposed change(s). Did any complaints motivate you to pursue regulatory action? If so, please explain the nature of such complaints.

No complaints motivated the proposed changes. The two changes we are requesting will be referred to throughout this document as A & B.

A) We are requesting that the current Rules be updated to reference the most recent version of the Standards of Practice and Code of Ethics of the American Society of Home Inspectors which have been used by the profession since 2006 rather than the 2001 Standards currently referenced.

B) We are also requesting that our Rules be changed to formally implement a graduated scale of late registration fees rather than collecting the entire $250 maximum penalty as currently stated in the Rules. The Board feels that the imposition of a $250 penalty for late submission of registration renewal materials is excessive.

2. What are the top three benefits of the proposed rule or regulation?

A) Uniformity with nationwide industry standards of practice, and continuation of licensure of home inspectors in Arkansas.

B) The financial burden of an excessive penalty would be eased, except in those cases where a larger penalty is merited.

3. What, in your estimation, would be the consequence of taking no action, thereby maintaining the status quo?

A) Confusion would develop among licensees who already follow the current (2006) Standards of Practice. Current home inspectors or prospective home inspectors would not be able to acquire training or testing in the older Standards of Practice and Code of Ethics. Licensure of home inspectors would cease because education providers and testing services no longer cover the older Standards of Practice and Code of Ethics.

B) Taking no action would impose an undue hardship on home inspectors who only commit a minor infraction of the Rules.

4. Describe market-based alternatives or voluntary standards that were considered in place of the proposed regulation and state the reason(s) for not selecting those alternatives.

A) The market based alternative is what we are asking to implement, i.e. the industry standards.

B) Not Applicable

impact of Proposed Rule or Regulation

5. Estimate the cost to state government of collecting information, completing paperwork, filing, recordkeeping, auditing and inspecting associated with this new rule or regulation.

A) None

B) None

6. What types of small businesses will be required to comply with the proposed rule or regulation? Please estimate the number of small businesses affected.

A & B - Home inspection businesses. Approximately 230 to 250.

7. Does the proposed regulation create barriers to entry? If so, please describe those barriers and why those barriers are necessary.

A& B - No.

8. Explain the additional requirements with which small business owners will have to comply and estimate the costs associated with compliance.

A & B - None

9. State whether the proposed regulation contains different requirements for different sized entities, and explain why this is, or is not, necessary.

A & B - No.

10. Describe your understanding of the ability of small business owners to implement changes required by the proposed regulation.

A & B - There would be no change required of the small business owners.

11. How does this rule or regulation compare to similar rules and regulations in other states or the federal government?

A) The Standards of Practice and the Code of Ethics which we wish to implement are already the most widely used by other States. The federal government does not license home inspectors.

B) Levels of penalties in other states for the late submission of license renewal materials are unknown. The downward adjustment of the penalty in question in Arkansas has achieved the desired result of imposing a reasonable penalty without increasing the number of offenders. The previous penalty was simply too high for the gravity of the offense.

12. Provide a summary of the input your agency has received from small business or small business advocates about the proposed rule or regulation.

A) The adoption of the most current Standards of Practice and Code of Ethics in the agency Rules was thought to have already occurred by the industry in Arkansas.

B) The graduated scale of penalties is preferred by the industry in Arkansas, with no complaints that it is too excessive or lenient.

SUMMARY

Proposed Amendments to the Rules and Procedures of the Arkansas Home Inspector Registration Board

Proposed changes to Section 103 R would reference the current (2006) version of the American Society of Home Inspectors (ASHI) Standards of Practice, and the current (2004) version of the ASHI Code of Ethics. The current version of the Rules and Procedures reference the versions of the Standards of Practice and the Code of Ethics which were in effect on January 1, 2000. The more current version of each has been adopted by the Board and are followed as a national standard. Training and testing are no longer available for the previous versions.

Proposed changes to Section 603 C would replace a lump sum penalty of $250 on home inspectors who do not submit license renewal paperwork on time with a graduated penalty of $50 per month of delinquency according to the schedule shown in the proposed language.

Proposed Rules

Rules arid Procedures of the Arkansas Home Inspector Registration Board

"103 R."Standards of Practice and Code of Ethics" - A document delineating the minimum level of diligence to which a home inspector may perform in the conduct and reporting of a home inspection. The document also defines the minimum level of ethical behavior acceptable in conducting their home inspection practice. The Standards of Practice of the American Society of Home Inspectors, Inc. of Des Planes, Illinois which were effective October 15, 2006 are the standards of practice to be followed by persons conducting home inspections in Arkansas. The Code of Ethics of the American Society of Home Inspectors, Inc. of Des Planes, Illinois which were effective June 13, 2004 are the code of ethics to be followed by persons conducting home inspections in Arkansas However, when deemed necessary by the inspector, he may release appropriate information, or otherwise appropriately act, to prevent imminent danger to the public or the property occupant.'

"603 C. Delinquent renewal fee: Is a fee which must be paid in addition to the renewal fee for all renewal applications received after the renewal deadline of December 1 of each year. It is also imposed when document(s) to make an application complete are not received until after the renewal deadline. That fee, as noted below, is non-refundable and must be paid in addition to all other renewal fees and is due upon submission of all renewal documents.

Required renewal documents received from:

December 2 to December 31	$50
January 1 to January 31	$100
February 1 to last day of February	$150
March 1 to March 31	$200
April 1 and thereafter	$250"

Mark-up

Proposed Amendments to the Rules and Procedures of the Arkansas Home Inspector Registration Board

"103 R. "Standards of Practice and Code of Ethics" - A document delineating the minimum level of diligence to which a home inspector may perform in the conduct and reporting of a home inspection. The document also defines the minimum level of ethical behavior acceptable in conducting their home inspection practice. The Standards of Practice a of the American Society of Home Inspectors, Inc. of Des Planes, Illinois which were effective October 15, 2006 are the standards of practice to be followed by persons conducting home inspections in Arkansas. The Code of Ethics of the American Society of Home Inspectors, Inc. of Des Planes. Illinois which were effective June13, 2004 are the code of ethics to be followed by persons conducting home inspections in Arkansas. However, when deemed necessary by the inspector, he may release appropriate information, or otherwise appropriately act, to prevent imminent danger to the public or the property occupant."

"603 C. Delinquent renewal fee: Is a fee which must be paid in addition to the renewal fee for all renewal applications received after the renewal deadline of December 1 of each year. It is also imposed when document(s) to make an application complete are not received until after the renewal deadline. That fee, as noted below, is non-refundable and must be paid in addition to all other renewal fees and is due upon submission of all renewal documents.

Required renewal documents received from:

December 2 to December 31	$50
January 1 to January 31	$100
February 1 to last day of February	$150
March 1 to March 31	$200
April 1 and thereafter	$250"

198.00.12 Ark. Code R. 001

2/1/2013