TITLE 16.ECONOMIC REGULATION

Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 70. INDUSTRIALIZED HOUSING AND BUILDINGS

The Texas Department of Licensing and Regulation ("Department") proposes amendments to existing rules at 16 Texas Administrative Code, §§70.10, 70.50, 70.70, and 70.73, and the repeal of existing rule §70.91 regarding the industrialized housing and buildings (IHB) program.

The amendment to §70.10 has been proposed to revise the definition of "Alteration" to indicate that only ordinary repairs are not considered alterations. The revision is necessary to correct a discrepancy in the definition of alteration with the procedures approved by the Texas Industrialized Building Code Council, which are adopted by reference in §70.74. The procedures indicate that only ordinary repairs are exempt from the review and inspection requirements for alterations to industrialized buildings and the definition has been revised to reflect this.

The amendments to §70.50(b) and (d) have been proposed to clarify when the clock starts for the retention of records by an industrialized builder, to require that certain records be retained for 10 years instead of 5, to require that the industrialized builder make a copy of the foundation plans available to the department upon request for units installed within the jurisdiction of a municipality, and to require that installation permit holders retain certain records and make those records available to the department upon request. The amendments are necessary to assure that the records necessary to resolve conflicts between industrialized builders or permit holders and local officials or to resolve consumer complaints are available to the department.

The amendments to §70.70(a)(4) have been proposed to require that manufacturers retain a copy of approved documents for a period of 10 years and make a copy of those documents available to the department upon request, to clarify when the clock starts for the retention of records by a design review agency, and to require that the design review agency make a copy of those records available to the department upon request. The amendments are necessary to assure that the records necessary to resolve conflicts between manufactures and local officials and to resolve consumer complaints are available to the department.

The amendments to §70.73(b) have been proposed to set a time limit on the completion of the site inspection requirements for the installation of industrialized housing and buildings, to clarify when the clock starts for the retention of inspection records by inspectors, to require that inspectors make a copy of the inspection report available to the department upon request, and to require that site inspections be recorded on a form and in the format required by the department. The amendments are necessary to assure timely completion of the required site inspections, to assure that inspection records are made available to the department to aid in resolving disputes, and to assure that information necessary to assure compliance with the site inspection requirements of the IHB program is recorded.

The amendments to §70.73(e) have been proposed to require that the industrialized builder retain a copy of the completed inspection report for 10 years, to clarify when the clock starts for the retention of the inspection report, and to require that a copy of the report be provided to the department upon request. The amendments are necessary to assure that inspection records are made available to the department to aid in resolving disputes.

Section 70.91 relates to sanctions, denial, revocation, or suspension of a license because of a criminal conviction. This section is no longer necessary because the Department has issued Criminal Conviction Guidelines pursuant to Texas Occupations Code, §53.025(a) which addresses the factors that the Department considers when determining whether a criminal conviction renders an applicant an unsuitable candidate for the license, or whether a conviction warrants revocation or suspension of a license previously granted.

William H. Kuntz, Jr., Executive Director, has determined that for the first five-year period the proposed amendments and repeal are in effect there will be no cost to state or local government as a result of enforcing or administering the proposed amendments and repeal.

Mr. Kuntz also has determined that for each year of the first five-year period the amendments and repeal are in effect, the public benefit will be the rules will be more concise and clear, and assure that the department can respond quickly to resolve compliance disputes and the public benefit for the proposed repeal will be less redundancy and a better clarification of the rules.

There will be no effect on small or micro-businesses as a result of the proposed amendments and repeal. There may be a very minimal economic cost to persons who are required to comply with the amendments and repeal in the form of increased costs for document retention.

Comments on the proposal may be submitted to William H. Kuntz, Jr., Executive Director, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711, or facsimile 512/475-2872, or electronically: whkuntz@license.state.tx.us. The deadline for comments is 30 days after publication in the Texas Register .

16 TAC §§70.10, 70.50, 70.70, 70.73

The amendments are proposed under Texas Occupations Code, Chapter 51 and Chapter 1202 which authorize the Department to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the proposal are those set forth in Texas Occupations Code, Chapter 51 and Chapter 1202. No other statutes, articles, or codes are affected by the proposal.

§70.10.Definitions.

(a) The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Alteration--Any construction, other than ordinary repairs [ repair ] of the house or building, to an existing industrialized house or building after affixing of the decal by the manufacturer. Industrialized housing or buildings that have not been maintained shall be considered altered.

(2) - (39) (No change.)

(b) - (c) (No change.)

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

(a) (No change.)

(b) Each industrialized builder shall keep records of all industrialized housing, buildings, modules, and modular components that were sold, leased, or installed. These records shall be kept for a minimum of ten [ five ] years from the date of successful completion of the final site inspection [ sale, lease, or installation ] and shall be made available to the department for review upon request. If the builder is not responsible for the installation, then the records shall be maintained for a period of 5 years from the date of sale or lease and shall be made available to the department upon request. An annual audit of units sold, leased, or installed by the builders shall be conducted by the Department. The audit will identify the modules or modular components by the name and Texas registration number of the manufacturer of each unit and the assigned Texas decal or insignia numbers and the corresponding identification, or serial numbers, as assigned by the manufacturer. The builder [ builders ] shall report , or provide , the following information to the Department for each unit identified in the audit within the timeframe set by the audit . [ : ]

(1) Evidence [ evidence ] of compliance with §70.75 . [ ; ]

(2) The [ the ] address where each unit was installed. If the builder is not responsible for the installation, then the address to where each unit was delivered. If the unit has not been installed, then the address where the unit is stored . [ ; ]

(3) The [ the ] occupancy use of each building containing modules or modular components, i.e., classroom, restaurant, bank, equipment shelter, etc . [ ; and ]

(4) If [ if ] the builder is responsible for the installation and site work, then the builder:

(A) shall, for units installed outside the jurisdiction of a municipality, keep a copy of the foundation plans and keep a copy of the site inspection report in accordance with §70.73. A copy of these documents shall be made available to the department upon request; or

(B) shall, if installed within the jurisdiction of a municipality, provide the name of the city responsible for the site inspection . The department may also request a copy of the foundation plans as part of the audit. [ ; or ]

(5) If [ if ] the builder is not responsible for the installation and site work, or if the builder has transferred the ownership of the unit to another person, then the builder shall provide identification of the installation permit number, assigned by the Department, or builder registration number, assigned by the Department, of the person responsible.

(c) The manufacturer's monthly reports must be filed with the department no later than the 10th day of the following month.

(d) An installation permit holder shall keep a copy of the foundation plans and, for units installed outside the jurisdiction of a municipality, the site inspection report in accordance with §70.73 for a period of ten years from the date of successful completion of the final inspection of the industrialized house or building. A copy of these records shall be provided to the department upon request.

§70.70.Responsibilities of the Registrants--Manufacturer's Design Package

(a) Review and approval. The manufacturer's design package must be reviewed and approved in accordance with the following.

(1) - (3) (No change.)

(4) The DRA will signify approval of a drawing, specification, calculation, or any other document in the manufacturer's design package by applying the council's stamp to each page. An alternate council stamp as approved by the council may be used on all designs, plans, specifications, calculations, and other documentation with the exception of the first or cover page and the table of contents or index pages of the design package. The original council stamp with original signature will be required on these pages. The signature on the original council stamp must be the signature of the manager or chief executive officer of the DRA. The manager or chief executive officer of the DRA must be licensed in the State of Texas as a professional engineer or architect in accordance with the criteria for approval of DRA's established by the council. The stamp shall not be placed on any designs, plans, or specifications which do not meet the requirements of the applicable mandatory building codes or the requirements of these sections. The manufacturer and the DRA shall [ must ] keep copies of the approved documents. The manufacturer shall keep a copy of all approved documents for a minimum of ten years from the date the last unit constructed from the documents is shipped and make a copy of these documents available to the Department upon request. The DRA shall keep a copy on file of all approved documents for a minimum of five years from the date that these documents are superseded by adoption of later editions of the mandatory building codes and make a copy of these documents available to the Department upon request. [ The DRA must keep a copy on file of all approved documents deleted or superseded from a design package for a minimum of five years. ] The manufacturer shall [ must ] make a copy available to the person performing in-plant inspections. A DRA will forward one approved copy of the design package, including additions and revisions, to the department within five days of approval and will return one approved copy to the manufacturer.

(5) - (8) (No change.)

(b) - (f) (No change.)

§70.73.Responsibilities of the Registrants--Building Site Inspections.

(a) (No change.)

(b) When the building site is outside a municipality, or within a municipality that has no building department or agency, a third party inspector will perform the required inspections in accordance with this section and the inspection procedures established by the Texas Industrialized Building Code Council. The on-site inspection is normally accomplished in three phases: foundation inspection, set inspection, and final inspection. The final inspection shall be completed within 180 days of the start of construction. The department may grant an extension upon receipt of a written request that demonstrates a justifiable cause. Site inspections are not required for the installation, on permanent foundations, of unoccupied industrialized buildings not open to the public with a gross area of less than or equal to 400 square feet, such as communication equipment shelters, that are not also classified as a hazardous occupancy by the mandatory building code. The builder, or installation permit holder, is responsible for scheduling each phase of the inspection with the third party inspector. Additional inspections will be scheduled as required for larger structures and to correct discrepancies. The industrialized builder, or installation permit holder, may utilize a different third party inspector for different projects, but may not change the inspector for a project once started without the written approval of the department. The inspector shall provide the builder or permit holder a copy of the site inspection report , [ and ] shall keep a copy for a minimum of five years from the date of successful completion of the final inspection, and make a copy of the inspection report available to the department upon request . The report shall be on the form and in the format required by the department and the Texas Industrialized Building Code Council. [ may be in whatever format the inspector desires as long as the following information is included on the inspection report: ]

[ (1) dates of all inspections;]

[ (2) the name, Texas registration number or license number, and signature of the inspector who performed the inspection;]

[ (3) the name and Texas industrialized builder registration number, or the installation permit number, of the person responsible for the foundation and installation. Installation permit numbers are assigned by the Department in accordance with §70.20;]

[ (4) the name and Texas registration number of the manufacturer of the modules or modular components inspected;]

[ (5) the name and address of the owner of the building or buildings inspected;]

[ (6) the complete site address of the modules or modular components inspected;]

[ (7) the Texas decal or insignia numbers and manufacturer's identification or serial numbers of the modules or modular components inspected;]

[ (8) the building codes the  modules or modular components were designed to meet in accordance with the data plate on the building;]

[ (9) the occupancy group and the building construction type of the building in accordance with the data plate on the building;]

[ (10) a record of all system testing observed; and]

[ (11) the date and description of any deviations to the approved plans, unique site completion documentation, or mandatory building codes and the corrective action, including the date of the corrective action, taken by the industrialized builder, or installation permit holder. If no deviations were observed, then this shall be noted on the report. The inspector shall notify the department of any deviations that cannot be corrected or that the builder, or installation permit holder, refuses to correct.]

(c) Destructive disassembly shall not be performed at the site in order to conduct tests or inspections, nor shall there be imposed standards or test criteria different from those required by the approved installation instructions, on-site construction documentation, and the applicable mandatory building code. Nondestructive disassembly may be performed only to the extent of opening access panels and cover plates.

(d) If an inspector finds a structure, or any part thereof, at the building site to be in violation of the approved design package and/or the unique on-site plans and specifications, the inspector shall immediately post a deviation notice and notify the industrialized builder or installation permit holder. The industrialized builder, or installation permit holder, is responsible for assuring that all deviations are corrected and inspected prior to occupation of the building.

(e) The industrialized builder, or installation permit holder, shall not permit occupancy of a structure until a successful final inspection has been completed and a certificate of occupancy issued by the local authorities. For industrialized housing and buildings installed outside the jurisdiction of a municipality, the [ The ] industrialized builder, or installation permit holder, shall keep a copy of the completed inspection report for the site inspection [ in the files ] for a minimum of ten [ five ] years from the date of successful completion of the final inspection and make a copy of the inspection report available to the department upon request .

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 28, 2004.

TRD-200404266

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: August 8, 2004

For further information, please call: (512) 463-7348


16 TAC §70.91

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Department of Licensing and Regulation or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under Texas Occupations Code, Chapter 51 and Chapter 1202 which authorizes the Department to adopt rules as necessary to implement this chapter and any other law establishing a program regulated by the Department.

The statutory provisions affected by the repeal are those set forth in Texas Occupations Code, Chapter 51 and Chapter 1202. No other statutes, articles, or codes are affected by the repeal.

§70.91.Sanctions--Revocation, Suspension, or Denial Because of a Criminal Record.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 28, 2004.

TRD-200404267

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Earliest possible date of adoption: August 8, 2004

For further information, please call: (512) 463-7348


Part 6. TEXAS MOTOR VEHICLE BOARD

Chapter 111. GENERAL DISTINGUISHING NUMBERS

16 TAC §111.9

The Texas Motor Vehicle Board proposes amendments to §111.9, by adding subsection §111.9(o). The amendment will limit the number of metal dealer license plates a Texas motor vehicle dealer may obtain, depending on the type of license and the number of vehicles sold per year. The proposed subsection provides for a waiver of the limits if a licensee states in writing why the additional plates are necessary to the continuation of the applicant's business.

Metal plates are a benefit to a licensed dealer, allowing the dealer and its employees to drive vehicles in inventory without registering or titling them. Currently, there is no limit on the number of metal dealer plates a dealer can order for business use. A growing trend has been discovered where Texas metal dealer plates are being rented to persons who cannot afford insurance or tax and title fees. Many of these plates are issued to dealers who do not sell or buy vehicles in Texas, but obtain a license solely to obtain plates. The licensee in turn rents plates to people in other states who wish avoid tax and insurance requirements in those states. The amendment is intended to curtail the excessive use of plates by those dealers who do little or no business in Texas and discourage sham license applications.

Brett Bray, Director, Motor Vehicle Board, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the amendment.

Mr. Bray has also determined that for each of the first five years the amendment is in effect, the public benefit anticipated from enforcement of the amendment will be a reduction of the number of plates used to avoid tax and insurance requirements within Texas and other states. The rule is expected to increase vehicle registrations, decrease the number of uninsured motorists, and help curb fraudulent dealer license applications. There is no anticipated cost to small business associated with complying with the rule.

Comments on the proposed amendments may be submitted to Brett Bray, Director, Motor Vehicle Division, P.O. Box 2293, Austin, Texas 78768. The deadline for comments is August 20, 2004. Please submit fifteen copies. The Texas Motor Vehicle Board will consider the adoption of the proposed amendments at its meeting on September 9, 2004.

The amendments is proposed under the Texas Transportation Code, §503.002, which provides the Board with authority to amend and adopt rules as necessary and convenient to effectuate the provisions of Transportation Code Chapter 503.

Texas Transportation Code §§503.061, 503.066, 503.068, and 503.069 are affected by the proposed amendment.

§111.9.Metal Dealer License Plates and Temporary Cardboard Tags.

(a) - (n) (No change.)

(o) The number of metal dealer plates a dealer may order for business use shall be allocated based on the type of license applied for and the number of vehicles sold during the previous year. New license applicants shall be allotted a predetermined number of metal dealer plates during the first license term.

(1) New license applicants may receive metal dealer plates during the first term of licensure in accordance with the following schedule:

(A) Franchised motor vehicle dealer - 5

(B) Franchised motorcycle dealer - 5

(C) Independent motor vehicle dealer - 2

(D) Independent motorcycle dealer - 2

(E) Franchised or independent travel trailer dealer - 2

(F) Utility trailer or semi-trailer dealer - 2

(G) Wholesale dealer - 1.

(2) A newly licensed dealership is not subject to the initial allotment limits described in paragraph (1), and may rely on the previous license status to obtain dealer plates, if it is:

(A) a franchised dealership that has been subject to a buy-sell agreement, regardless of a change in the entity or ownership, or

(B) any dealership that relocates, if it has been licensed for a period of one year or more.

(3) Upon renewal, the maximum number of dealer plates issued to a motor vehicle dealer per license term shall be as follows:

(A) Franchised motor vehicle dealer - 30

(B) Franchised motorcycle dealer - 10

(C) Independent motor vehicle dealer - 3

(D) Independent motorcycle dealer - 3

(E) Franchised or independent travel trailer dealer - 3

(F) Utility trailer or semi-trailer dealer - 3

(G) Wholesale dealer - 1.

(4) To obtain more than the maximum number of plates set out in paragraph (3), a dealer must submit proof of sales to qualify for additional plates.

(A) Additional plates above the amounts set out in paragraph (3) shall be as follows:

(i) Wholesale Dealers - 1

(ii) Dealers selling less than 50 vehicles - 1

(iii) Dealers selling 50 to 99 vehicles - 2

(iv) Dealers selling 99 to 200 vehicles - 5

(v) Dealers selling 201 or more vehicles may obtain any number of dealer plates at the dealer's discretion.

(B) Proof of sales shall consist of a copy of the most recently filed Vehicle Inventory Tax Declaration or monthly statements duly filed with the proper taxing authority in the county of the dealership's location. Said copies should be stamped received by the tax authority. Any franchised dealer's renewal license application that indicates sales of 201 or more units shall be considered proof of sales of 201 or more and no additional proof is needed.

(5) The director or director's designee may waive the dealer plate issuance restrictions if the waiver both serves the purposes of this chapter and is essential to the continuation of the business. To determine the number of dealer plates the dealer needs, the director or the director's designee may base the decision on the dealer's past sales, inventory and any other pertinent factors as the director may determine.

(A) All requests for waivers shall be in writing and specifically state why the additional plates are necessary to the continuation of the applicant's business;

(B) All requests for waivers must be accompanied by proof of the dealer's sales for the previous year. Such proof shall consist of a copy of the most recently filed Vehicle Inventory Tax Declaration or monthly statements duly filed with the proper taxing authority in the county of the dealership's location. Said copies should be stamped received by the tax authority.

(C) Wholesale dealers may not apply for waiver of dealer plate issuance restrictions.

(D) Once a waiver is granted authorizing a certain number of plates, the authorization under that waiver is good for three (3) years.

(E) Waivers issued by the director or the director's designee shall be reported to the Board.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 21, 2004.

TRD-200404086

Brett Bray

Director

Texas Motor Vehicle Board

Proposed date of adoption: September 9, 2004

For further information, please call: (512) 416-4899


16 TAC §111.10

The Texas Motor Vehicle Board of the Texas Department of Transportation proposes amendments to §111.10 by adding paragraph (5), requiring public posting of a dealer's license at its place of business.

The addition of §111.10(5) requires a dealer to conspicuously display to the public the license issued by the Board at each place of business maintained by the dealer. This will inform the public that they are dealing with a properly licensed business.

Brett Bray, Director, Motor Vehicle Division, has determined that for the first five year period the proposed section is in effect, there will no fiscal implications for state or local government as a result of enforcing or administering the rule.

Mr. Bray also determined that for each year of the first five years the amendment is in effect, the anticipated public benefit will be to more easily determine the current license status of any dealer while at the dealership. The rule will be of no cost to small businesses. Mr. Bray has also certified that there will be no impact on local economies or overall employment as a result of enforcing or administering the section.

Comments (15 copies), may be submitted to Brett Bray Director, Motor Vehicle Division, Texas Department of Transportation, P.O. Box 2293, Austin, Texas 78767, (512) 416-4899. The Motor Vehicle Board will consider adoption of this proposed rule at its meeting on September 9, 2004. The deadline for comments on the proposed new rule is 5:00 p.m. on August 20, 2004.

The amendment is proposed under the Texas Occupations Code §2301.155, and Texas Transportation Code §503.002, which provides the Board with authority to adopt rules as necessary and convenient to effectuate the provisions of the Act and to govern practice and procedure before the agency.

Texas Transportation Code §503.038 is affected by the proposed amendment.

§111.10.Established and Permanent Place of Business.

All dealers must meet the following requirements at each location where vehicles are sold or offered for sale.

(1) - (4) (No change.)

(5) A dealer shall at all times display the dealer license issued by the Board in a manner that makes the license easily readable by the public, in a conspicuous place at each place of business for which it is issued. For dealers whose license applies to more than one location, a copy of the original license may be displayed in the supplemental location.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 24, 2004.

TRD-200404220

Brett Bray

Director

Texas Motor Vehicle Board

Proposed date of adoption: September 9, 2004

For further information, please call: (512) 416-4899