(a) Grounds for disciplinary action. The State Board of Appraisers, Abstracters, and Home Inspectors may take appropriate disciplinary action for, but not limited to, the following:

1. (1) Any violation of the provisions of the Arkansas Home Inspectors Registration Act, Arkansas Code § 17-52-301 et seq., or this part;
2. (2) Falsifying any application for registration or otherwise providing false information to the board;
3. (3) Conviction of any felony listed under Arkansas Code § 17-3-102;

4. (4)

   1. (A) Any actions demonstrating untrustworthiness, incompetence, dishonesty, gross negligence, material misrepresentation, fraud, or unethical conduct in any dealings subject to the Arkansas Home Inspectors Registration Act or this part.
   2. (B) Dishonest, unethical, or unprofessional conduct may include, but is not limited to, the following:

(i) The home inspector expresses an opinion not based on practical experience or education and honest conviction;

1. (ii) The home inspector fails to act in good faith in dealing with a client;

   1. (iii)

(b) (b) If any dangerous situations exist, the home inspector is required to report those findings to the homeowner;

1. (iv) The home inspector accepts compensation from more than one (1) interested party for the same service without the consent of all interested parties;

   1. (v) The home inspector offers or accepts commissions or allowances, directly or indirectly, from other parties dealing with a client while providing a home inspection;

      1. (vi) The home inspector fails to promptly disclose in writing to a client any interest in a business or the subject property that may affect or have the potential to affect the client;
      2. (vii) The home inspector allows an interest in any business to affect the quality of the results of a home inspection;
      3. (viii) The home inspector fails to disclose in writing to the client prior to the home inspection any limitations or exclusions of systems or components being inspected;
      4. (ix) The home inspector aids or assists another in the violation of the Arkansas Home Inspectors Registration Act or this part;
      5. (x) The home inspector fails to satisfy a material term of a consent to administrative supervision order or consent order;
      6. (xi) The home inspector aids, assists, or facilitates another to use or appropriate credentials or a license for the purpose of preparing a home inspection report knowing that person to be unlicensed; and
      7. (xii) The home inspector advises a client as to whether the client should or should not engage in a real estate transaction or provides an opinion of value regarding the residential real property that is the subject of the home inspection;
2. (5) Adjudication of insanity;
3. (6) Use of advertising or solicitation that is false, misleading, or is otherwise deemed unprofessional by the board; or
4. (7) Habitual or excessive use of intoxicants or illegal drugs.

(b) Complaints.

1. (1) Complaints shall be filed within three (3) years from the date of the actions complained of.

2. (2)

   1. (A) For a complaint to be considered, the complainant shall file the complaint in writing.
   2. (B) The written complaint shall specifically state the issues of the complaint and the date or dates on which the events causing or leading to the complaint occurred.
3. (3) The board may initiate its own complaint when sufficient documents and information are available on which to conclude that the Standards of Practice, Code of Ethics, the state law, or the board rules may have been violated.

4. (4)

   1. (A) The registered home inspector will be notified in writing of the complaint.
   2. (B) A copy of the complaint and a request for a written response within thirty (30) days shall be furnished to the home inspector.
   3. (C) Failure to respond within thirty (30) days of receipt of the complaint will be deemed unresponsive and the complaint will be further considered without the benefit of the home inspector’s input.

5. (5)

   1. (A) The board’s staff, legal representative, and board investigator (appointed board member or contracted investigator) will review the complaint and all corresponding documents and make recommendations to the board.

   2. (B) Recommendations may include:

      1. (i) Dismissal of complaint;
      2. (ii) Informal proceedings, including, but not limited to, caution letters, corrective action agreements, or consent agreements; or
      3. (iii) Disciplinary hearing.

6. (6) All work papers submitted to the board for action on complaints and disciplinary procedures shall not be deemed public records under the Freedom of Information Act of 1967, Arkansas Code § 25-19-101 et seq.

   1. (c) Hearings.

7. (1)

   1. (A) Hearings to revoke or suspend a registration or to impose other disciplinary sanctions are adjudicative hearings.
   2. (B) The board acts in a quasi-judicial capacity when it conducts an adjudicative hearing.
8. (2) All adjudicative hearings before the board are held under the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq.