TITLE economic-regulation

Part IV. Texas Department of Licensing and Regulation

Chapter 70. Industrialized Housing and Buildings

16 TAC §§70.20, 70.22, 70.23, 70.50, 70.60, 70.61, 70.70, 70.71, 70.75, 70.80

The Texas Department of Licensing and Regulation adopts amendments to §§70.20, 70.22, 70.23, 70.50, 70.60, 70.61, 70.70, 70.71, 70.75 and 70.80 concerning industrialized housing and buildings. Sections 70.20, 70.50, 70.71 and 70.80 are adopted with changes to the proposed text as published in the September 19, 1997, issue of the Texas Register (22 TexReg 9405). Sections 70.22, 70.23, 70.60, 70.61, 70.70 and 70.75 are adopted without changes and will not be republished.

The amendment in §70.20 broadens the scope of the installation permit as recommended by the Texas Industrialized Building Code Council. The amendments to §70.22 and §70.23 will permit the acceptance of the Building Officials and Code Administrators International, Inc. (BOCA) certifications as well as the International Conference of Building Officials (ICBO) and the Southern Building Code Congress International (SBCCI) certifications.

The amendments to §70.50 clarify changes in reporting requirements due to the addition of the installation permit and the changes in §70.60 clarify that the Industrialized Building Code Council is responsible for establishing procedures for certification inspections.

The amendments to §70.61(a) clarify that third party inspection agencies and third party inspectors must conduct Texas IHB inspections in accordance with the procedures established by the Council. The changes in §70.61(c) clarify that manufacturers must designate in writing the third party inspection agency responsible for inspections in their facility.

The amendments in §70.70 eliminate the requirement that plans be submitted on 8-1/2 inch by 11 inch pages. The changes in §70.71 from what was proposed is to correct a typographical error and the changes in §70.75 revises permit/owner information requirements to include installation permit holders.

The changes in §70.80 (f), (g), (i) and (j) will permit travel costs to be reimbursed directly to contract providers. The amendments to §70.80(h) and (k) raise fees for decals and insignia, eliminate fees for alteration inspections, and add a fee for an installation permit.

The Department received a recommendation from the Texas Industrialized Building Code Council in favor of the proposed amendments with minor changes.

The amendments will function by increasing program integrity.

The amendments are adopted under Texas Revised Civil Statutes Annotated, article 5221f-1 (Vernon 1989) which provides the Texas Department of Licensing and Regulation the authority to promulgate and enforce a code of rules and take action necessary to assure compliance with the intent and purpose of the Act.

The Article that is affected by the amendment is Texas Revised Civil Statutes Annotated, article 5221f-1 (Vernon 1989).

§70.20. Registration of Manufacturers and Industrialized Builders.

Manufacturers and industrialized builders shall not engage in any business activity relating to the construction or location of industrialized housing or buildings without being registered with the department.

(1)

An application for registration shall be submitted on a form supplied by the department, and shall contain such information as may be required by the department. The application must be verified under oath by the owner of a sole proprietorship, the managing partner of a partnership, or the chief executive or chief operating officer of a corporation. The application must be accompanied by the fee set forth in §70.70 of this title (relating to Commission Fees).

(2)

A person who does not purchase industrialized housing or buildings from a manufacturer for sale or lease to the public may file for an installation permit in lieu of registering as an industrialized builder. A person who is not registered as an industrialized builder and who buys or leases industrialized housing or buildings from an industrialized builder and assumes responsibility for the installation of the unit or units shall apply for an installation permit. The application shall be submitted on a form supplied by the department and shall contain such information as may be required by the Department. A separate application must be submitted for each building containing industrialized housing and buildings modules or modular components. The application must be accompanied by the fee set forth in §70.80 of this title (relating to Commission Fees).

(3)

The registration shall be valid for 12 months and must be renewed annually. Every corporate entity must be separately registered. Each separate manufacturing facility must be registered; a manufacturing facility is separate if it is not on property which is contiguous to a registered manufacturing facility. An industrialized builder must register each separate sales office but is not required to register each job location.

(4)

A registered manufacturer or industrialized builder shall notify the department in writing within 10 days if:

(A)

the corporate or firm name is changed;

(B)

the main address of the registrant is changed;

(C)

there is a change in 25% or more of the ownership interest of the company within a 12-month period;

(D)

the location of any manufacturing facility is changed;

(E)

a new manufacturing facility is established; or

(F)

there are changes in principal officers of the firm.

(5)

A manufacturer certified pursuant to §70.61 of this title (relating to Responsibilities of the Department - Plant Certification), whose registration expires shall have his certification revoked if the registration is not renewed within 30 day of the expiration date. A manufacturer whose certification has been revoked must undergo another certification inspection to reinstate the certification.

(6)

An application for original registration or renewal may be rejected if any information contained on, or submitted with, the application is incorrect. The certificate of registration may be revoked or suspended or a penalty or fine may be imposed for any violation of the Act, violation of the rules and regulations in this chapter or administrative orders of the department, or violations of the instructions and determinations of the council in accordance with §70.90 of this title (relating to Sanctions - Administrative Sanctions/Penalties), and §70.91 of this title (relating to Revocation or Suspension because of a Criminal Conviction).

§70.50. Manufacturer's and Builder's Monthly Reports.

(a)

The manufacturer shall submit a monthly report to the department, of all industrialized housing, buildings, modules, and modular components which were constructed and to which decals and insignia were applied during the month. The manufacturer shall keep a copy of the monthly report on file for a minimum of five years. The report must state the name and address of the industrialized builder to whom the structures, modules, or modular components were sold, consigned, or shipped. If any such units were produced and stored, the report must state the storage location. The report shall also contain:

(1)-(2)

(No change.)

(3)

the registration number of the industrialized builder (as assigned by the department) to whom the units were sold, consigned, and shipped or the installation permit number issued by the Department;

(4)-(7)

(No Change.)

(b)

Each industrialized builder shall submit a monthly report to the department of all industrialized housing, buildings, modules, and modular components which were installed during the month. A copy of the report shall be kept on file by the industrialized builder for a minimum of five years. The report shall contain:

(1)

(No change.)

(2)

identification of the type of foundation system in accordance with the following:

(A)

if the unit was installed within the corporate limits of a city, the name of the city responsible for the site inspection;

(B)

if the unit was installed outside the corporate limits of a city and if the builder is not responsible for the installation and site work, then identification of the installation permit number or builder registration number obtained from the Department by the person responsible;

(C)

if the unit was installed outside the corporate limits of a city and if the builder is responsible for the installation and site work and the unit is installed on a permanent foundation system, identification of the Texas approved inspector that performed the site inspection; or

(D)

if the unit was installed outside the corporate limits of a city and if the builder is responsible for the installation and the site work and the unit is installed on a temporary foundation system, then the builder shall provide a notarized statement certifying that the unit was installed on a temporary foundation system in compliance with the engineered plans and all applicable codes.

(3)-(5)

(No change.)

(c)-(d)

(No change.)

§70.71. Responsibilities of the Registrants - Manufacturer's Data Plate.

(a)

The manufacturer will attach a data plate to each dwelling unit of a residential structure containing industrialized housing and buildings modules and to each appropriate unit of a commercial structure containing industrialized housing and buildings modules. The data plate must be made of a material that will not deteriorate over time and be permanently placed so that it cannot be removed without destruction. The data plate will be placed on or near the electrical distribution panel or in some other easily accessible location as designated in the approved design package.

(b)

The data plate must contain, as a minimum, the following information:

(1)

the manufacturer's name, registration number, and address;

(2)

(No change.)

(3)

the State decal numbers;

(4)-(11)

(No change.)

(c)

All modular components shall be marked with, or otherwise have permanently affixed, a data plate containing the following information:

(1)

the manufacturer's name, registration number, and address;

(2)

the serial or identification number of the component or components;

(3)

the State insignia number or numbers;

(4)

the name and date of applicable codes;

(5)

the design loads for the component; and

(6)

any special conditions of use for the component.

(d)

The information required in subsection (c) of this section may be placed in the crate in which the component or components are shipped or on a tag attached to the crate or to the component if the component is such that the information may not be marked or permanently affixed to the component.

(e)

Structures designated by the manufacturer as not being designed for placement on a permanent foundation shall have a manufacturer's seal permanently attached inside the door of the electrical panel or near the entrance door if the unit does not have an electrical panel. The seal shall not be smaller than 2 by 1 - 1/2 inches and shall be constructed of a metallic alloy. The seal must contain the following capitalized statement: THIS STRUCTURE IS NOT DESIGNED FOR PLACEMENT ON A PERMANENT FOUNDATION AND DOES NOT MEET THE REQUIREMENTS OF TEXAS CIVIL STATUTES, ARTICLE 5221f-1, INDUSTRIALIZED HOUSING AND BUILDINGS.

§70.80. Commission Fees.

(a)-(e)

(No change.)

(f)

The fee for department personnel for certification inspections at a manufacturing facility shall be $40 per hour. Travel and per diem costs shall be reimbursed by the manufacturer in accordance with the current rate as established in the current Appropriations Act. The department shall present a billing statement to the manufacturer at the completion of the inspection that is payable upon receipt.

(g)

When the department acts as a design review agency, the fee for such services is $40 per hour. The manufacturer for whom the services are performed shall pay the fee before approval of the designs, plans, specifications, compliance control documents, and installation manuals and before the release of the documents to the manufacturer. Travel and per diem costs shall be reimbursed by the manufacturer in accordance with the current rate as established in the current Appropriations Act.

(h)

The fees for issuing decals and insignia are:

(1)

modules (decals): $0.07 per square foot of floor area, with a minimum of $25 for each decal; and

(2)

modular component (insignia): $0.02 per square foot of surface area with a minimum of $0.60 for each insignia or $0.07 per square foot of floor area with a minimum of $15 for each insignia.

(i)

The fee for department personnel for special inspections shall be $40 per hour. A special inspection is any inspection for industrialized housing and buildings that is not covered by other fees. The Department will present a billing statement at the conclusion of the inspection that is payable upon receipt. Travel and per diem costs shall be reimbursed in accordance with the current rate as established in the current Appropriation Act.

(j)

The fee for department monitoring of design review agencies and third party inspection agencies outside headquarters shall be $40 per monitor hour. Travel and per diem costs shall be reimbursed in accordance with the current rate as established in the current Appropriations Act. The department will present the agency or manufacturer a statement at the conclusion of the monitoring trip, and it is payable upon receipt.

(k)

The fee for an installation permit shall be $75 for each building containing industrialized housing and buildings modules or modular components. A separate application must be submitted for each building containing industrialized housing and buildings modules or modular components.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on February 2, 1998.

TRD-9801441

Tommy V. Smith

Executive Director

Texas Department of Licensing and Regulation

Effective date: March 16, 1998

Proposal publication date: September 19, 1997

For further information, please call: (512) 463-7357