DRAFT Minutes of the North Carolina Home Inspector Licensure Board April 7, 2017 The regular meeting of the North Carolina Home Inspector Licensure Board ( Board ) was held at 9:00 am, Friday, April 7, 2017 in Raleigh, North Carolina. The following members of the Board were present: Butch Upton Fred Herndon Tony Jarrett Arthur Hall Joseph Ramsey Haywood Gainey Waverly Sawyer Department of Insurance staff members Mike Hejduk, Jennifer Hollyfield, Terri Tart and Phil Joyner were in attendance. Board Attorney Denise Stanford, NC Department of Justice ( NCDOJ ), was in attendance. Chairman Butch Upton chaired the meeting and welcomed visitors Phillip Gibson, N.C. Radon Program; Jeff Forsha, A-Pro Advantage; Auadou Jallow, DSHR-Radiation Protector; Stan Gregory, Gregory Enterprises, and; Bonnie Gregory, licensed home inspector and Board approved education sponsor. Agenda Chairman Upton opened the meeting and turned the meeting over to Vice-Chairman Joseph Ramsey. Ramsey reminded 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. Ramsey 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. Ramsey asked the members if anyone needed to recuse themselves for any listed agenda items. None noted. Chairman Upton requested a change in the agenda to allow Phillip Gibson, N.C. Radon Program Coordinator, to make his presentation under New Business following the approval of minutes. This request was approved by acclamation. Approval of January 13, 2017 Minutes Fred Herndon made a motion to approve the minutes as written. Arthur Hall seconded the motion. The minutes were approved by voice vote unanimously. Emergency Meeting February 23, 2017 Minutes Arthur Hall made a motion to approve the minutes as written. Fred Herndon seconded the motion. The minutes were approved by voice vote unanimously. N.C. Radon Program Presentation Phillip Gibson, N.C. Radon Program Coordinator based in Asheville, N.C. addressed the Board with a slide presentation. Mr. Gibson stated he is the sole program staff member covering the entire State of North Carolina. Butch Upton asked Gibson if there was already requirement for Realtors to take a mandatory four-hour education course on radon. Gibson replied that such a Page 1 of 8
course was being developed. Gibson s goal is to make the public aware of the dangers of radon. Gibson stated that radon esists throughout the state. Fred Herndon stated that the Board could add links to the home inspector web site about the N.C. Radon Program and the EPA. Mr. Gibson stated that he would provide the literature for the website. Fred Herndon made a motion to add the link. John Gainey seconded the motion. The motion passed unanimously. Butch Upton requested that Bonnie Gregory add Radon to the recommended language for the Board Update Course. Bonnie Gregory stated that prior to adopting recommended language, she wants to review related issues such as gas furnaces, back drafting, spillage etc. Mike Hejduk suggested a two-hour continuing education course as an elective for home inspectors on Radon. Upton stated, as an elective course, it would be up to the individual inspector whether to take the course or not. Gibson thanked the Board for their time and attention. Staff Reports Director Tony Jarrett asked Mike Hejduk who was replacing Chris Noles. Hejduk stated Rob Roegner would likely fill this position as the Commissioner s designee. Hejduk noted that no public comments were submitted as yet on the agency rules review. Hejduk stated several initiatives had been delayed due to staff s move to the Albemarle building citing the Invitation for Bid ( IFB ) still needed to be issued for the auditor. Hejduk noted that the contract for Ray Cox expires on June 30, 2017, and that if the Board wished to hire a contractor for complaints, then it would have to go out for bids to individual inspectors. Hejduk noted that the IFB for the update course has been successful. Hejduk noted the Board has a large fund balance and that the Budget Advisory Committee would need to meet to discuss a spending plan. Hejduk noted that contracts were one area where they would be getting some services for programs that the board wanted to do. Hejduk noted that Tony Jarrett s term on the board is due to expire on June 30, 2017, as well as Chairman Butch Upton s. Upton stated that he was reappointed and will serve an additional four years through July 1, 2021. Joseph Ramsey and Fred Herndon discussed meeting with Senator Andy Wells on March 7, 2017 regarding Senate Bill 8 / House Bill 57, Ease Occupational Licensing Burdens on Military Families, that would make temporary licenses available at no cost. **Note: since the approval of the April minutes were delayed, these bills were subsequently approved in Session Law 2017-28 on June 8, 2017 amending N.C. Gen. Stat. 93B-15.1 effective July 1, 2017 as shown below.** SECTION 3. G.S. 93B-15.1 reads as rewritten: " 93B-15.1. Licensure for individuals with military training and experience; proficiency examination; licensure by endorsement for military spouses; temporary license. (a) Except as provided by subsection (a2) of this section, and notwithstanding any other provision of law, an occupational licensing board, as defined in G.S. 93B-1, shall issue a license, certification, or registration to a military-trained applicant to allow the applicant to lawfully practice the applicant's occupation in this State if, upon application to an occupational licensing board, the applicant satisfies the following conditions: (3) Has not committed any act in any jurisdiction that would have constituted grounds for refusal, suspension, or revocation of a license to practice that occupation in this State at the time the act was committed.committed and has no pending complaints. Page 2 of 8
(4) Pays any fees required by the occupational licensing board for which the applicant is seeking licensure, certification, or registration in this State. (b) Notwithstanding any other provision of law, an occupational licensing board, as defined in G.S. 93B-1, shall issue a license, certification, or registration to a military spouse to allow the military spouse to lawfully practice the military spouse's occupation in this State if, upon application to an occupational licensing board, the military spouse satisfies the following conditions: (4) Is in good standing and standing; has not been disciplined by the agency that had jurisdiction to issue the license, certification, or permit.permit; and has no pending complaints. (5) Pays any fees required by the occupational licensing board for which the applicant is seeking licensure, certification, or registration in this State. (f) An occupational licensing board may shall issue a temporary practice permit to a military-trained applicant or military spouse licensed, certified, or registered in another jurisdiction while the military-trained applicant or military spouse is satisfying the requirements for licensure under subsection (a) or (b) of this section if that jurisdiction has licensure, certification, or registration standards substantially equivalent to the standards for licensure, certification, or registration of an occupation licensing board in this State. The military-trained applicant or military spouse may practice under the temporary permit shall remain valid for the later of one year or the required renewal date for the occupation the temporary practice permit was issued for or until a license, certification, or registration is granted or until a notice to deny a license, certification, or registration is issued in accordance with rules adopted by the occupational licensing board. (k) An occupational licensing board shall not charge a military-trained applicant or a military spouse an initial application fee for a license, certification, registration, or temporary practice permit issued pursuant to this section. Nothing in this subsection shall be construed to prohibit an occupational licensing board from charging its ordinary fee for a renewal application or prohibit a third party from charging actual costs for a service such as a background check." Tony Jarrett noted that if the fees are waived it would affect the Board s revenue. Hejduk stated that he would suggest looking at Tennessee and Virginia for possible reciprocity. Hejduk noted that Virginia s law is changing effective July 1, 2017 from voluntary certification to mandatory licensing to perform home inspections. Hejduk stated Georgia does not require licensing. Hejduk noted that the Board does have reciprocity with the Massachusetts. Hejduk stated that the Department of Insurance is military friendly and that Senator Well s agenda includes creation of a single licensing agency for the state or to group similar ones together under one agency. Hejduk noted that when we get the new designee there would be more discussion on the topic and that the Board could revisit the reciprocity subject with other states at the July 13, 2017 Board meeting. Hejduk then turned the staff report over to Terri Tart, License Administrator. Licensing Tart reported on the licensing activities in the chart below. Computer Based Testing (CBT) was discussed by Tart and Hejduk. Herndon and Ramsey emphasized completion of transition to CBT as soon as possible, and no later than October 2018. Page 3 of 8
Licensing Activities 1/13/17 thru 4/7/17 Applications Approved 74 New Licenses Issued 43 Paper Exams Administered Passed Failed Computer Base Exams Administered Passed Failed Reschedule 29 23 6 23 16 6 1 Active Licenses 1,331 Exam Registration for April 13, 2017 39 Education Jennifer Hollyfield, Education Coordinator, thanked the Board and staff for the condolences on the passing of her older brother. Jennifer Hollyfield reported on education activities in the chart below. Hollyfield reported that she was presenting three applicants for review and approval as pre-licensing education sponsors today. CE Activities 1/13/17 thru 4/7/17 Course Approvals 17 Course Renewals 14 Course Roster Uploads 56 Investigations Phil Joyner reported on the complaint investigations and presented a graph showing the number of complaints received per calendar year since the start of licensing in 1996. Joyner noted that there were six (6) complaints received year to date. Two new complaints were received on April 6, 2017. Joyner noted that two complaints were received in January and two in March. Joyner noted that there were nine investigations completed and Herndon will report on the IRC determinations during the committee reports. Joyner noted that there were four open complaints including the two received on April 6, 2017. Page 4 of 8
Committee Reports Application Evaluation Committee Waverly Sawyer reported for the committee. Sawyer noted that the committee met on April 4, 2017. Sawyer noted that four (4) applications were approved. Examination Committee No report. Finance Committee Arthur Hall noted that the fund balance is $893,564.36. Hall reported that the expenditures were $157,184.86. Hall noted that based on 1,200 inspectors the revenue would be $320,000.00. Hall noted that at the last meeting the board approved $10,000.00 for laptops and tablets. Hall reported that the Advisory committee on the budget has not met yet. Hall reported that the lease rate for the new building is $15.00 per square foot. Mike Hejduk noted that there is $8,000.00 set aside for the auditor. FY 2016-2017 Month Expenditures Revenues Fund Balance Jul $ 21,639.52 $ 20,465.00 $ 736,890.96 Aug $ 37,653.42 $ 86,245.00 $ 785,395.80 Sep $ 38,811.60 $ 95,855.00 $ 931,366.64 Oct $ 70,569.97 $ 273,565.00 $ 939,799.25 Nov $ 89,916.25 $ 281,370.00 $ 928,257.97 Dec $ 104,359.30 $ 283,925.00 $ 916,369.92 Jan $ 126,847.34 $ 302,950.00 $ 912,906.88 Feb $ 140,870.73 $ 311,125.00 $ 907,058.49 Mar $ 157,184.86 $ 313,945.00 $ 893,564.36 Apr May Jun Page 5 of 8
Legislative Committee Tony Jarrett addressed the status of industry discussions on video and audio surveillance with the N.C. Real Estate Commission (NCREC), N.C. Association of Realtors (NCAR), and N.C. Bar Association (NCBA). Board legal counsel Denise Stanford addressed SB 8 provisions. HB 142 had the list of boards to be consolidated (Barbers and Cosmetologists), SB 464 require additional reporting to legislature and other agencies, rules for complaints, disciplinary enforcement actions against licensees and unlicensed persons. Stanford discussed the ramifications of the Supreme Court Dental Case. Stanford noted the introduction of online electronic complaint submission including complaint form through web site as well as any rule adopted by the board that would increase fees must go through the legislature and the normal rule making process. Education Committee Fred Herndon noted that the committee met on April 6, 2017. Herndon noted that Gregory met with them at the committee meeting and provided a proposed outline. Herndon noted that the title would be How to Properly use the Board s Recommended Language. Herndon stated that inspectors don t know how to use the Board s language. Herndon noted that radon language would be added to the recommended language. Herndon noted that the board needs to start thinking about what needs to be covered in the 2018/2019 renewal year. Herndon asked if anyone had any suggestions. Upton noted that the new Residential Code comes out in the same year. Herndon noted that there will be future planning on the subject matter. Pre-licensing Field Trainer Consideration James Giuffre - Herndon made a motion to approve. Joseph Ramsey seconded the motion and the members voted unanimously to approve. Chris Brown - Herndon made a motion to approve. Joseph Ramsey seconded the motion and the members voted unanimously to approve. John Gainey - John Gainey requested to be recused from the vote and was recused by acclamation. Herndon made a motion to approve. Arthur Hall seconded the motion. Members, excluding Gainey, voted unanimously to approve. Page 6 of 8
Investigation Review Committee Herndon noted that the committee met on April 6, 2017, and made good progress. Herndon noted that the committee discussed Complaint #642 and #657 Hawley (#2215) and that that the hearing date would be scheduled for July 12, 2017 at 9:00 A.M. Consent Agreement 639 Bolden (#1775) Herndon made a motion to accept the proposed consent agreement as signed by the licensee. John Gainey seconded the motion and the members voted unanimously to approve the consent agreement. 646 Hall (#35) Herndon made a motion to accept the proposed consent agreement as signed by the licensee. John Gainey seconded the motion and the members voted unanimously to approve the consent agreement. Dismiss with Letter of Caution 660 McAlexander (#3594) Fred Herndon made a motion to dismiss with letter of caution. John Gainey seconded the motion and the members voted unanimously to approve. 664 Tilldall (#3566) Fred Herndon made a motion to dismiss with letter of caution. John Gainey seconded the motion and the members voted unanimously to approve. Dismiss 658 Hotchkiss (#1660) Fred Herndon made a motion to dismiss the complaint. John Gainey seconded the motion and the members voted unanimously to approve. 666 Payne (#1051) Fred Herndon made a motion to dismiss the complaint. John Gainey seconded the motion and the members voted unanimously to approve. 667 Howard (#3247) Fred Herndon made a motion to dismiss the complaint. John Gainey seconded the motion and the members voted unanimously. Standards of Practice Committee John Gainey noted that the committee met April 6, 2017. Gainey noted that the public comment period on the rules is May 8, 2017. Gainey reported that as of today no comments have been received. Gainey noted that we would need an IFB for report reviews. Butch Upton tasked Gainey to Chair the Advisory Committee for the Report Reviews. Upton noted that an Advisory Committee had been created to prepare a 1-3-year plan on the budget. Arthur Hall is chairman of this committee. Page 7 of 8
Personnel No report. Public Comments: None noted. New Business: The radon presentation agenda item was addressed above. Unfinished Business: Mike Hejduk invited the board members to visit the Albemarle Building. Adjournment: Fred Herndon made a motion to adjourn the meeting. The motion was seconded by John Gainey. The motion passed unanimously. Respectfully submitted, Fred Herndon Interim Secretary Page 8 of 8