Professional Learning Institute, LLC v. Commonwealth of Kentucky, Kentucky Real Estate Authority

Summary

The Kentucky Court of Appeals reviewed disciplinary action taken by the Kentucky Board of Home Inspectors and the Kentucky Real Estate Authority against Professional Learning Institute, a provider of home-inspector education. The court held that the Board exceeded its statutory authority by investigating and disciplining the non-licensee education provider, while recognizing narrower authority to regulate approval of courses and providers. The court vacated the circuit court’s opinion and order, set aside the Hearing Officer’s final order, and dismissed the disciplinary action.

Holdings

1. KRS 198B.706(4) and (12), KRS 198B.728, and KRS 198B.730 authorize KBHI to investigate complaints and impose disciplinary actions against licensees, not non-licensee education providers such as PLI.
2. 831 KAR 2:040 Sec. (10)(2) is valid insofar as it permits KBHI to deny, suspend, or revoke an education provider's registration, but the term 'probate' is unauthorized and is stricken.
3. 831 KAR 2:040 Sec. (10)(1) and (3), and related provisions purporting to authorize KBHI to investigate, initiate complaints against, and discipline non-licensee providers, are null and void to that extent.
4. 831 KAR 2:040 Sec. (9)(1), prohibiting a provider from advertising a course as approved before approval is granted, is within KBHI's statutory authority.

Questions Presented

1. Whether KBHI's enabling statutes authorized it to investigate, initiate complaints against, and discipline a non-licensee education provider.
2. Whether 831 KAR 2:040 Sec. (10)(2) validly authorized KBHI to deny, suspend, probate, or revoke an education provider's registration.
3. Whether KBHI's regulatory provisions allowing investigation and disciplinary action against non-licensee education providers were valid under the governing statutes.
4. Whether the Jefferson Circuit Court erred by dismissing PLI's Chapter 13B appeal and adopting the agency's interpretation of its statutory authority.

Disposition

vacated