TITLE 10.COMMUNITY DEVELOPMENT

Part 7. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION

Chapter 303. REGISTRATION

Subchapter A. REGISTRATION OF BUILDERS

10 TAC §303.7

The Texas Residential Construction Commission (the "commission") proposes amendments to Title 10, Part 7, Chapter 303, Subchapter A, §303.7, the registration of designated agents for registered builders in the State of Texas as provided for in Title 16, Property Code. The amendments are proposed to correct errors in the rule language published for adoption in the June 9, 2006 issue of the Texas Register (31 TexReg 4729) effective June 12, 2006.

Ms. Susan Durso, General Counsel for the commission, has determined that for each year of the first five year period that the amended rule is in effect there will be no increase in expenditures or revenue for state government and no fiscal impact for local government as a result of enforcing or administering the section.

Ms. Durso has also determined that for the first five years the amended rule is in effect the public will benefit from having complete rule language available. There will not be an effect on individuals, or large, small or micro businesses. There is no anticipated economic cost to persons who are required to comply with the proposed section.

Ms. Durso has also determined that for each year of the first five-year period the proposed rules are in effect there should be no effect on a local economy; therefore, no local employment impact statement is required under the Administrative Procedure Act, Section 2001.022.

Interested persons may send written comments regarding these proposed amendments to the Texas Residential Construction Commission, P.O. Box 13144, Austin, TX 78711-3144. Comments regarding these proposed amendments will be accepted for fourteen days following the date of publication of this notice in the Texas Register . Thereafter, the comments will not be considered as timely filed. Comments may also be submitted electronically to comments@trcc.state.tx.us. For comments submitted electronically, please include "303.7 rule correction" in the subject line.

The amendments are proposed pursuant to Chapter 416, Property Code, which provides for the designation of registered agents for 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.

The statutory provisions affected by these proposed amendments adoption of these rules are those set forth in Property Code, Chapters 408 and 416.

No other statutes, articles, or codes are affected by the proposed amendments.

§303.7.Designated Agents.

(a) To be eligible to receive a certificate of registration under this subchapter all applicants must designate an individual as the primary designated agent.

(b) Each designated agent must adhere to the same registration requirements and meet the same eligibility requirements as any person applying for builder registration under this subchapter. There is no separate builder registration application form or fee required to register the primary agent designated by a registered builder.

(c) The primary designated agent of a sole proprietorship is limited to the individual proprietor.

(d) A corporation must designate one of its officers as the primary designated agent.

(e) A limited liability company must designate one of its managers or members as the primary designated agent.

(f) A partnership, limited partnership or limited liability partnership must designate one of its managing partners as the primary designated agent or, if there are no individuals serving as a managing partner, a partnership, limited partnership or limited liability partnership must designate an individual officer from among its managing partner entities as the designated agent.

(g) A corporation, limited liability company, partnership, limited partnership or limited liability partnership is not eligible for registration as a builder and may not act as a builder unless the entity's primary designated agent is individually eligible for registration as a builder.

(h) Individuals who are approved as registered designated agents of a corporation, limited liability company, partnership, limited partnership, limited liability partnership or other entity registered as builder, are registered builders.

(i) A corporation, limited liability company, partnership, limited partnership or limited liability partnership may submit a Secondary Agent Registration Form and fee to register one or more qualified individuals to serve as a secondary registered agent(s).

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 15, 2006.

TRD-200603289

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: July 30, 2006

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