TITLE 10.COMMUNITY DEVELOPMENT

Part 7. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION

Chapter 300. ADMINISTRATION

10 TAC §300.5

The Texas Residential Construction Commission adopts amendments to 10 TAC Chapter 300, §300.5, regarding agency task forces, with no changes to the proposed text as published in the February 17, 2006, issue of the Texas Register (31 TexReg 953).

The amendments eliminate references to the Mold Reduction and Remediation Task Force and the Rain Harvesting and Water Recycling Task Force, which were dissolved by the commission on December 31, 2005.

The commission received no comments on the proposed amendments.

The amendments are adopted under Property Code §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code; §430.003, regarding use of a mold reduction and remediation task force; and §430.004, regarding use of a rain harvesting and water recycling task force; and Government Code Chapter 2110, regarding a state agency's use of an advisory committee or task force.

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 May 23, 2006.

TRD-200602877

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 12, 2006

Proposal publication date: February 17, 2006

For further information, please call: (512) 463-2886


Chapter 303. REGISTRATION

Subchapter A. REGISTRATION OF BUILDERS

10 TAC §§303.1, 303.5, 303.7, 303.9, 303.13, 303.15, 303.17, 303.19

The Texas Residential Construction Commission adopts amendments to 10 TAC Chapter 303, Subchapter A, §§303.1, 303.5, 303.7, 303.9, 303.13, 303.15, 303.17, and 303.19, relating to the registration of builders. Sections 303.1, 303.5, 303.7, 303.13, 303.15, and 303.17 are adopted without changes to the proposed text as published in the April 7, 2006, issue of the Texas Register (31 TexReg 2956). Section 303.9 and §303.19 are adopted with non-substantive changes to the proposed text as published. The change to §303.9(a)(2) was made to correct a spelling error. The changes to §313.19(a) and (c) were made for grammatical clarification.

The amendments are adopted to clarify procedures and intent and to add additional requirements for registration to the current rules.

The commission received no comments on the proposed amendments.

The amendments are adopted pursuant to Chapter 416, Property Code, which provides for the registration of builders and, generally, pursuant to Property Code §408.001, which provides authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code.

§303.9.Eligibility Requirements.

(a) At the time the application for registration is filed with the commission:

(1) individual applicants must be at least 18 years of age and a citizen of the United States or a lawfully admitted alien and must demonstrate to the satisfaction of the commission that the applicant is honest, trustworthy and has integrity.

(2) individuals who apply as the designated agents of a corporation, limited liability company, partnership, limited partnership, limited liability partnership or other entity must be at least 18 years age and citizen of the United States or a lawfully admitted alien and must demonstrate to the satisfaction of the commission that the individual is honest, trustworthy and has integrity.

(3) a corporation, limited liability company, partnership, limited partnership, limited liability partnership or other entity must demonstrate that it is properly registered and in good standing with the Secretary of State and must demonstrate to the satisfaction of the commission that the entity has acted honestly, with trustworthiness and with integrity in its business dealings.

(b) The commission may consider a registered builder's complaint history, history of homeowner-filed requests for participation in the SIRP, compliance with state and federal law, compliance with the commission rules and requests for information, history of unsatisfied judgments and unpaid arbitration awards, history of bankruptcies, compliance history with the Secretary of State regulations and payment of taxes, and history of use of corporate and partnership structures as a means to avoid liability in evaluating whether an applicant is honest, trustworthy and has integrity.

§303.19.Renewal.

(a) After March 1, 2004, a person operating as a builder in this state must keep a current certificate of registration and must timely renew its certificate of registration.

(b) A builder that has been issued an even-numbered builder registration certificate must renew its registration by the last day of February of each even-numbered year. A builder that has been issued an odd-number certificate of registration must renew its registration by February 28 of each odd-numbered year.

(c) A builder who fails to maintain a current certificate of registration may be subject to a late fee and either an administrative penalty or other disciplinary action, as determined by the commission.

(d) In order to renew a certificate of registration, a builder shall submit a completed application for renewal of a certificate of registration and the required fee to the commission not later than thirty (30) days prior to the end of the applicable registration period as provided in subsection (b) of this section.

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 May 23, 2006.

TRD-200602879

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 12, 2006

Proposal publication date: April 7, 2006

For further information, please call: (512) 463-2886


10 TAC §303.3, §303.11

The Texas Residential Construction Commission repeals §303.3 and §303.11, relating to provisional registration of builders and information on past criminal history of builders. The provisional registration rule is repealed because the statutory authorization expired on January 1, 2005. The criminal history information section of §303.11 has been subsumed into other amendments to Chapter 303.

No comments were received regarding the proposed repeal of these sections, which was published in the April 7, 2006, issue of the Texas Register (31 TexReg 2959).

The repeal of these sections are ordered pursuant to Property Code, §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code and Property Code, §416.003, which provided for a provisional registration but expired by operation of law on January 1, 2005.

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 May 22, 2006.

TRD-200602870

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 11, 2006

Proposal publication date: April 7, 2006

For further information, please call: (512) 463-2886


Subchapter B. REGISTRATION OF HOMES

10 TAC §§303.110, 303.115, 303.140

The Texas Residential Construction Commission adopts amendments to 10 TAC Chapter 303, Subchapter B, §§303.110, 303.115, and 303.140, relating to registration of homes by a builder. Section 303.110 and §303.115 are adopted without changes to the proposed text as published in the February 17, 2006, issue of the Texas Register (31 TexReg 955). Section 303.140 is adopted with non-substantive changes to the proposed text as published.

The adopted amendments identify appropriate forms to be used for home registration. The change to the text of §303.140 does not affect any persons not affected by the published proposed text of the rule.

The commission received no comments on the proposed amendments.

The amendments are adopted under Property Code §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of Title 16; and §426.003, which requires the commission to adopt rules to specify the information that a registrant must provide in order to register a home.

§303.140.Home Registration Process.

(a) A person registering a home under this subchapter shall use the Home Registration Form.

(b) A completed home registration form must be submitted to the commission with the appropriate fee by first class mail, personal delivery or via the commission's secure Web portal provided for online home registrations by builders.

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 May 22, 2006.

TRD-200602871

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 11, 2006

Proposal publication date: February 17, 2006

For further information, please call: (512) 463-2886


Subchapter C. REGISTRATION OF THIRD-PARTY INSPECTORS

10 TAC §303.205

The Texas Residential Construction Commission adopts amendments to 10 TAC §303.205, relating to denial of registration of a third-party inspector, with no changes to the proposed text as published in the February 24, 2006, issue of the Texas Register (31 TexReg 1137).

The amendments provide additional grounds for which the commission may deny an application to be a third party inspector.

The commission received no comments on the proposed amendments.

The section is adopted under Property Code §408.001 which provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code and Property Code §427.001, regarding third-party inspector qualifications.

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 May 22, 2006.

TRD-200602867

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 11, 2006

Proposal publication date: February 24, 2006

For further information, please call: (512) 463-2886


Chapter 305. PRACTICE AND PROCEDURES FOR HEARINGS AND DISCIPLINARY ACTIONS

Subchapter C. PROCEEDINGS AT SOAH

10 TAC §305.33

The Texas Residential Construction Commission adopts new section 10 TAC Chapter 305, Subchapter C, §305.33 without changes to the text as published in the February 24, 2006, issue of the Texas Register (31 TexReg 1138). The new section clarifies the agency's post-settlement dismissals of actions at the State Office of Administrative Hearings (SOAH), giving the Executive Director the authority to request a dismissal from the SOAH docket once certain criteria are met by the builder.

Subchapter D was incorrectly cited in the preamble for the proposed version (31 TexReg 1138), February 24, 2006. Subchapter C is the correct chapter.

The commission received no comments on the proposed new section.

The new section is adopted under Property Code §408.001, which provides general authority for the commission to adopt rules, Property Code Chapters, 418 and 419 and Government Code, Chapter 2001.

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 May 22, 2006.

TRD-200602868

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 11, 2006

Proposal publication date: February 24, 2006

For further information, please call: (512) 463-2886


Subchapter D. POST-SETTLEMENT AND POST-HEARING MATTERS

10 TAC §305.42, §305.43

The Texas Residential Construction Commission adopts new 10 TAC Chapter 305, Subchapter D, §305.42, regarding the imposition of expenses and costs incurred in a contested case when a violation or denial is upheld. There were no changes in the text.

The commission also adopts new 10 TAC Chapter 305, Subchapter D, §305.43, regarding injunctive relief, with non-substantive changes to the proposed text. Both new sections were published in the February 24, 2006, issue of the Texas Register (31 TexReg 1138). The changes from the proposed text for §305.43 further clarify the commission's procedure for seeking injunctive relief against a person acting as builder or remodeler without proper registration. The changes do not affect any persons not previously notified of the substance of the regulation in the published version of the text.

The commission received no comments on either section.

The new sections are adopted under Property Code, §408.001, which provides general authority for the commission to adopt rules, Property Code, Chapters 418 and 419 and Government Code, Chapter 2001.

§305.43.Injunction.

(a) Prior to seeking injunctive relief, the commission will inform unregistered builders and remodelers in writing of the requirements to register and of the potential consequences of failing to do so.

(b) The commission may seek the assistance of the Attorney General to bring an action in district court to enjoin the person from engaging in or continuing a violation of the Act or commission rules or doing an act that furthers a violation of the Act or commission rules. In the action, the court may enter as proper an order awarding a preliminary or final injunction.

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 May 22, 2006.

TRD-200602869

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 11, 2006

Proposal publication date: February 24, 2006

For further information, please call: (512) 463-2886


Chapter 306. COMPLAINTS

10 TAC §306.1

The Texas Residential Construction Commission adopts new §306.1, relating to the complaint process with no changes to the proposed text as published in the April 7, 2006, issue of the Texas Register (31 TexReg 2961).

The new rule sets forth the information and process related to complaints filed with the commission.

The commission received no comments on the new section.

The new section is adopted under Property Code §408.001 which provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code; and §409.001, which requires the commission to have procedures for responding to complaints received.

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 May 23, 2006.

TRD-200602876

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Effective date: June 12, 2006

Proposal publication date: April 7, 2006

For further information, please call: (512) 463-2886