NCHILB Meeting Minutes Page 1 Minutes of the North Carolina Home Inspector Licensure Board October 14, 2011 The meeting of the North Carolina Home Inspector Licensure Board was held at 9:00 am, Friday, October 14, 2011, in Raleigh, North Carolina. The following members of the North Carolina Home Inspector Licensure Board were present: Talmadge Jones Tony Jarrett David Jones Gerald Canipe Marion Peeples Chris Noles Waverly Sawyer Department of Insurance staff members Mike Hejduk, Phil Joyner, Terri Tart and Jennifer Hollyfield were in attendance. Board Attorney Rebecca Lem was in attendance. Outgoing board member Ted Triebel was not in attendance. Also in attendance were 4 visitors. Agenda Chairman Talmadge Jones presided over the meeting. After welcoming all the visitors in attendance he then turned the meeting over to Vice-Chair Marion Peeples to remind all board members of the State Government Ethics Act provisions to avoid conflicts of interest, the appearance of conflicts of interest, and the potential for conflicts of interest. Mr. Peeples asked if there were any such conflicts, none were voiced. Mr. Peeples reminded members of the Board who are licensed home inspectors that they have the potential for a conflict of interest because they serve on the Board that licenses them. Chairman Talmadge Jones presented an Appreciation Plaque to outgoing Board Member, David Jones. Chairman Talmadge Jones stated David Jones served on several committees consisting of the Standards of Practice, Continuing Education and Investigation Review Committee during his tenure on the Board. David Jones stated the past 7 years have been interesting, and he enjoyed his time on the Board. Chairman Talmadge Jones then directed staff to swear in the two new Board appointees; Joseph Ramsey (Public) and Fred Herndon (Home Inspector). Chairman Talmadge Jones welcomed the two new Board members. Approval of July 8, 2011 Minutes Gerald Canipe made a motion to approve the minutes. Chris Noles seconded the motion and the motion passed without dissent. Staff Reports-Director Director Mike Hejduk stated the Prelicensing Program became effective October 1, 2011. Director Hejduk turned the presentation over to Wilson Fausel (contract inspector) to report on the New Licensee Report Audit efforts. Wilson Fausel reported there are 48 total report audits. The inspector s report checklist is the criteria used to review the report audits.
NCHILB Meeting Minutes Page 2 In discussion of this matter, the checklist will go to the Standards of Practice Committee to be changed to better cover the issues of the audits. Fausel stated 42% didn t use the DDID. Fred Herndon stated with the Prelicensing Program in place, this should resolve some of the report writing issues regarding the report audits. Director Hejduk stated there are 894 active home inspectors and 27 active associate home inspectors as of the beginning of the current annual license period 2011-2012. Director Hejduk asked the Board to review the Action Item List to determine if changes are needed. Hejduk also asked that if changes are needed, let staff know. Director Hejduk stated that Correction Enterprises was mailing out the pocket ID Cards and a copy of the new Standards effective October 1, 2011. Director Hejduk reported that staff has received 15 complaints against inspectors in 2011. Staff is working to keep the complaint investigation report and disciplinary action process within a 6 month period. Director Hejduk presented a series of graphs that reflect the future of home inspector licensure trends, which Tony Jarrett requested at the last Board meeting. (Appendix A) Director Hejduk asked Terri Tart to provide additional information regarding her tasks. Tart stated the renewal period went very well this year, including the online renewals. Tart reported that 894 home inspectors renewed and 240 of those renewed online. There have been some modifications done to the home inspector application to reflect rule changes including the General Liability Insurance and Prelicensing Program requirements. Director Hejduk asked Jennifer Hollyfield to provide additional information regarding her tasks. Hollyfield thanked, Director Hejduk, Terri Tart and Phil Joyner for the online sponsor entry of the continuing education. There are 7 sponsors and 5 of the sponsors actively entered in the CE, which helped with the work load of entering the CE. The sponsors were very pleased with online entry of CE. Director Hejduk asked Phil Joyner for an investigators report. Joyner stated currently there are 11 complaints and 5 investigation reports are in the process of being completed. Director Hejduk asked the Board about renting a room to hold the committee meetings on the Thursday prior to the Board Meeting on Friday, at the Holiday Inn. Marion Peeples made a motion to approve $250.00 for the committee room rental at the Holiday Inn. Gerald Canipe seconded the Director Hejduk told the Board that home inspector Scott Monroe passed away September 25, 2011 after paying his renewal and prior to the beginning of the new license period. Mrs. Monroe called to ask if his renewal fee could be refunded. Gerald Canipe made a motion to refund the renewal fee in the amount of $160.00. Fred Herndon seconded the
NCHILB Meeting Minutes Page 3 Director Hejduk reminded the Board to maintain their required Ethics Training and noted this requirement could be fulfilled online. Chris Noles stated that the staff is receiving new computers and the Board conference room will be getting a work station that will better facilitate the Board s work and webinars. Public Comment Eric Coates, President of the North Carolina Licensed Home Inspector Association (NCLHIA), Coates offered his congratulations to the two new Board members and looked forward to working with them in the future. Coates stated that mandatory education regarding DDID had been beat to death and until the Board starts auditing reports and talking with inspectors, it s not going to change what the inspectors do everyday. Committee Reports a) Application Evaluation Committee Waverly Sawyer stated the committee met and reviewed 4 applications. The committee approved 3 applications and 1 remains on hold until more information is received. b) Examination Committee Chris Noles stated the committee did not meet. The committee will have a meeting before the next board meeting. The priorities are to expand the exam test bank and LXR software making sure that the Board has better tests. c) Finance Committee Gerald Canipe stated the committee did meet, but turned it over to Director Hejduk to report. Director Hejduk reported the Budgeted Expenditures for 2011 are $384,086. The projected Revenues for 2011-2012 however are approximately $240,100. The projected Fund Balance for 2011-2012 may decrease to $468,259. d) Legislative Committee Tony Jarrett stated no report. e) Continuing Education Committee Marion Peeples stated the committee met. The committee dealt with two basic areas. The committee had a lengthy teleconference call with a couple of representatives from Pillar to Post Home Inspections. They are the first sponsor to submit a new Prelicensing Course to the committee. However, Pillar to Post does their classroom training in Toronto, Canada. The field training would be offered through a Charlotte, North Carolina franchisee. The committee had questions about the classroom hours that would be spent on each subject. Pillar to Post agreed to compile an estimate on time spent, on each individual topic and let Director Hejduk know. The committee should be able to make some recommendations whether to approve the course by the next Board meeting in November. There is a 45 day period between the time a course is approved and when it can be taught.
NCHILB Meeting Minutes Page 4 Marion Peeples stated a discussion arose in the committee meeting about the Mandatory Course for 2013-2014. The tentative topic for that course was Moisture Migration in Buildings. The discussion determined that Moisture Migration is probably covered in the other structural, interior and insulation courses to be taught in the 48 hour program. It was thought that perhaps a class in Home Inspector Ethics would be proper. There has never been a course on Ethics for the home inspectors and the committee will probably go forward in that direction. After some discussion, Peeples stated that the cost of the Ethics Course could be around $10,000 and would like to get a feel from the Board on moving in this direction. Peeples stated the committee would discuss this matter further and will report back to the Board in November. f) Standards/Rules and Interpretations Committee Marion Peeples stated the committee did meet and has no report. g) Investigation Review Committee Gerald Canipe turned it over to Marion Peeples. Peeples stated the committee has 5 signed consent agreements to be approved by the Board. Peeples asked the Board to accept the judgment of the Investigation Review Committee and staff s recommendations of the consent agreements for signature by the Chairman. The first consent agreement was Michael W. Cole (#1599). Tony Jarrett The second consent agreement was Adam D. Cole (#2169). Tony Jarrett The third consent agreement was Robert R. Baun (#A-754). Gerald Canipe The fourth consent agreement was Daryl K. Burgess (#1730). Gerald Canipe moved to accept the consent agreement. Waverly Sawyer seconded the The fifth consent agreement was Robert D. Bartos (#1190). Tony Jarrett Marion Peeples stated there are 5 in process and only 4 that had been assigned, but not completely worked through at this point. Peeples commended staff on their hard work on the complaints and he appreciated all that is being done. Marion Peeples made a motion to assign New Licensee Audits to the 4 contract inspectors until such time all new licensees are audited. Gerald Canipe seconded the
NCHILB Meeting Minutes Page 5 h) Personnel Committee Chairman Talmadge Jones stated no report. Unfinished Business Director Hejduk stated that Rule 11 NCAC 08.1006 was approved and became effective October 1, 2011. Director Hejduk stated he would look into the reciprocity request from Massachusetts. New Business Gerald Canipe discussed concerns about Appraisers doing home inspections. The Board discussed it at length. Chairman Talmadge Jones stated this Board has no jurisdiction over the appraisers doing home inspections. Canipe asked if there could be a meeting between the Home Inspector Board and Appraisal Board to work together on resolving some concerns. Director Hejduk will work to get something started. Adjournment Chairman Talmadge Jones asked for a motion to adjourn. Gerald Canipe made a motion to adjourn. Marion Peeples seconded the Respectfully submitted, Christian Noles, P.E. Secretary Note: This meeting has been recorded on CD. Anyone desiring copies should contact the NC Department of Insurance, Engineering Division, Home Inspection Section for reproduction costs.