Part 7.
TEXAS RESIDENTIAL CONSTRUCTION COMMISSION
Chapter 301.
GENERAL PROVISIONS
10 TAC §301.1
The Texas Residential Construction Commission ("commission")
proposes amendments to 10 TAC §301.1, concerning definitions used in
construing agency rules promulgated to implement the Texas Residential Construction
Commission Act ("Act"), Title 16, Property Code. The amendments are proposed
to add a definition for the term "builder in good standing".
Ms. Susan Durso, General Counsel for the commission, has determined that
for each year of the first five year period that the amended section 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
section is in effect the public will benefit from clarification in commission
definitions. 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 amended section is 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.
Comments on the proposed amendment may be submitted to Susan K. Durso,
General Counsel, Texas Residential Construction Commission, P.O. Box 13144,
Austin, Texas 78711-3144 or by fax to (512) 475-2453. Comments may also be
submitted electronically to comments@trcc.state.tx.us. For comments submitted
electronically, please include "301.1 amendment" in the subject line. The
deadline for submission of comments is thirty (30) days from the date of publication
of the proposed rules in the
Texas Register
.
Comments should be organized in a manner consistent with the organization
of the section under consideration. Comments not timely received or that are
submitted electronically but do not have "301.1 amendment" in the subject
line may not be considered.
The amendment is proposed 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.
§301.1.Definitions.
The following words and terms, when used in rules promulgated by the
commission, shall have the following meanings unless the context of the rule
clearly indicates otherwise.
(1) - (4)
(No change.)
(5)
Builder in good standing--a
builder or remodeler that has a current active certificate of registration
issued by the commission and that has no unpaid fees or administrative penalties
due and owing to the commission.
(6)
[
(7)
[
(8)
[
(9)
[
(A)
the failure of the design, construction or repair of a
home, an alteration of or a repair, addition or improvement to an existing
home, or an appurtenance to a home to meet the applicable warranty and building
and performance standards during the applicable warranty period; and
(B)
any physical damage to the home, an appurtenance to the
home, or real property on which the home or appurtenance is affixed that is
proximately caused by that failure.
(10)
[
(11)
[
(12)
[
(13)
[
(14)
[
(15)
[
(16)
[
(17)
[
(18)
[
(19)
[
(20)
[
(21)
[
(22)
[
(A)
review the recommendations of third-party inspectors;
(B)
provide consultation to third-party inspectors; and
(C)
administer the state-sponsored inspection and dispute resolution
process.
(23)
[
(A)
one year for workmanship and materials;
(B)
two years for plumbing, electrical, heating, and air conditioning
delivery systems;
(C)
ten years for major structural components of the home;
and
(D)
ten years for the warranty of habitability.
(24)
[
(25)
[
(26)
[
(27)
[
(A)
for the construction of a new home; or
(B)
for construction on an existing home that is:
(i)
a material improvement to the home other than an improvement
solely to replace or repair the roof; or
(ii)
an improvement to the interior of the home when the cost
paid for the work exceeds $20,000.
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 February 9, 2007.
TRD-200700391
Susan K. Durso
General Counsel
Texas Residential Construction Commission
Earliest possible date of adoption: March 25, 2007
For further information, please call: (512) 463-2886
Subchapter A. REGISTRATION OF BUILDERS
10 TAC §303.19
The Texas Residential Construction Commission (the "commission")
proposes amendments to Chapter 303, Subchapter A, §303.19 relating to
the builder/remodeler renewal process as provided for in Title 16, Property
Code. The amendments are proposed to streamline and unify builder registration
renewals, to reduce staff time spent on data entry, and to reduce errors in
data entered as a result of illegible handwriting.
Susan K. Durso, General Counsel, has determined that, for each year of
the first five-year period the proposed amendments are in effect, there will
be reduced fiscal implications to the state and no fiscal implications for
local governments as a result of enforcing or administering the proposed amendments.
Ms. Durso has also determined that, for each year of the first five-year
period the proposed amendments are in effect, the public will benefit from
reduced costs for processing paper work and uniform procedures for registered
builder renewal applications.
Ms. Durso has also determined that, for each year of the first five-year
period the proposed amendments are in effect, there will be no significant
effect on individuals or large, small, and micro-businesses because of the
adoption of the proposed amendments.
Ms. Durso has also determined that, for each year of the first five-year
period the proposed amendments are in effect, there should be no effect on
a local economy; therefore, no local employment impact statement is required
under Administrative Procedure Act §2001.022.
Interested persons may submit written comments (12 copies) on the proposed
amendments to Susan K. Durso, General Counsel, Texas Residential Construction
Commission, P.O. Box 13144, Austin, Texas 78711. The deadline for submission
of comments is thirty (30) days from the date of publication of the proposed
sections in the
Texas Register
. Comments received
after that date will not be considered. Comments should be organized in a
manner consistent with the organization of the proposed amendment. Comments
may be submitted electronically to comments@trcc.state.tx.us. For comments
submitted electronically, please include "303.19 amendments" in the subject
line. Comments not received timely or that are submitted electronically but
do not include "303.19 amendments" in the subject line may not be considered.
The amendments are proposed pursuant to Chapter 416, Property
Code, which provides for the registration of builders and remodelers 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 are those
set forth in Property Code, Chapters 408 and 416.
No other statutes, articles, or codes are affected by the proposed amendments.
§303.19.Renewal.
(a)
[
(b)
A builder
or remodeler
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
or
remodeler
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
or remodeler that
[
(d)
In order to renew a certificate of registration, a builder
or remodeler
shall submit a completed application for renewal of a certificate
of registration and the required fee to the commission
. The completed
application and fee must be received or, if mailed must be postmarked, no
later than the applicable registration renewal date
[
(e)
All individual and business
entities that file renewal applications with the commission and that have
registered more than twenty-five homes in the prior calendar year must file
their renewal applications via the commission's secure Web portal provided
for online builder/remodeler renewal registration. A completed renewal application
and renewal fee must be submitted for each named individual or business entity
under which the applicant intends to operate as a builder or remodeler in
this state.
(f)
Builders and remodelers that
are required to use the online renewal process under subsection (e) of this
section, but that are unable to utilize the online system may submit a sworn
affidavit to the Executive Director requesting a waiver from the required
use of the online process for renewal registration.
(g)
The Executive Director may
grant a waiver requested under subsection (f) of this section, if the builder
or remodeler submits a sworn affidavit stating that the builder or remodeler:
(1)
does not have the use of a
credit card or access to online banking for the purpose of making an online
payment;
(2)
does not have access to the
internet; or
(3)
other good cause for waiver
as determined in the sole discretion of the Executive Director.
(h)
A decision by the Executive
Director on whether to grant a waiver under subsection (g) of this section
is a final agency decision not subject to further administrative appeal.
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 February 12, 2007.
TRD-200700408
Susan K. Durso
General Counsel
Texas Residential Construction Commission
Earliest possible date of adoption: March 25, 2007
For further information, please call: (512) 463-2886
10 TAC §303.140
The Texas Residential Construction Commission (the "commission")
proposes amendments to Chapter 303, Subchapter B, §303.140 relating to
the home registration process as provided for in Title 16, Property Code.
The amendments are proposed to streamline and unify home registration, to
reduce staff time spent on data entry, and to reduce errors in data entered
as a result of illegible handwriting.
Susan K. Durso, General Counsel, has determined that, for each year of
the first five-year period the proposed amendments are in effect, there will
be reduced fiscal implications to the state and no fiscal implications for
local governments as a result of enforcing or administering the proposed amendments.
Ms. Durso has also determined that, for each year of the first five-year
period the proposed amendments are in effect, the public will benefit from
reduced costs for processing paper work and uniform procedures for home registration
by builders and remodelers.
Ms. Durso has also determined that, for each year of the first five-year
period the proposed amendments are in effect, there will be no significant
effect on individuals or large, small, and micro-businesses because of the
adoption of the proposed amendments.
Ms. Durso has also determined that, for each year of the first five-year
period the proposed amendments are in effect, there should be no effect on
a local economy; therefore, no local employment impact statement is required
under Administrative Procedure Act, §2001.022.
Interested persons may submit written comments (12 copies) on the proposed
amendments to Susan K. Durso, General Counsel, Texas Residential Construction
Commission, P.O. Box 13144, Austin, Texas 78711. The deadline for submission
of comments is thirty (30) days from the date of publication of the proposed
sections in the
Texas Register
. Comments received
after that date will not be considered. Comments should be organized in a
manner consistent with the organization of the proposed amendment. Comments
may be submitted electronically to comments@trcc.state.tx.us. For comments
submitted electronically, please include "303.140 amendments" in the subject
line. Comments not received timely or that are submitted electronically but
do not include "303.140 amendments" in the subject line may not be considered.
The amendments are proposed pursuant to Property Code, §426.003,
which provides for the registration of homes 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 are those
set forth in Property Code, Chapters 408 and 426.
No other statutes, articles, or codes are affected by the proposed amendments.
§303.140.Home Registration Process.
(a)
A person registering a home under
§303.100 or §303.110
of this subchapter shall
submit a completed
[
(b)
All individuals and business entities who are registered
with the commission and are required to file twenty-five or more home registration
forms each year with the commission must register homes online via the commission's
secure Web portal for online home registration, unless the builder or remodeler
has received a waiver of this requirement under subsection (d) of this section.
[
(c)
Builders and remodelers that
are unable to utilize the online home registration process may submit a sworn
affidavit to the Executive Director requesting a waiver from the required
use of the online process for home registration.
(d)
The Executive Director may
grant a waiver requested under subsection (c) of this section, if the builder
or remodeler submits a sworn affidavit stating that the builder or remodeler:
(1)
does not have the use of a
credit card or access to online banking for the purpose of making an online
payment;
(2)
does not have access to the
internet; or
(3)
other good cause for waiver
as determined in the sole discretion of the Executive Director.
(e)
A decision by the Executive
Director on whether to grant a waiver under subsection (d) of this section
is a final agency decision not subject to further administrative appeal.
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 February 12, 2007.
TRD-200700416
Susan K. Durso
General Counsel
Texas Residential Construction Commission
Earliest possible date of adoption: March 25, 2007
For further information, please call: (512) 463-2886
10 TAC §303.207
The Texas Residential Construction Commission proposes amendments
to 10 TAC §303.207, Subchapter C, which sets forth the training requirements
for third-party inspectors. The amendments clarify that third-party inspector
applicants must complete commission training or the commission will administratively
withdraw the application. Further, the amendments clarify that third-party
inspectors must maintain the eligibility requirements of their registration
by completing the continuing education requirements of any license or certificate
required for registration, such as continuing education requirements for licensed
architects and engineers and the continuing education requirements for certification
as a Code Combination Inspector by the International Code Council.
The proposed amendments add a new subsection that clearly states that initial
training requirements must be completed or an application will be administratively
withdrawn thirty days after notification of eligibility for the initial training
and fees paid will be forfeited. Other new subsections state the requirements
of maintaining continuing education and the need to show proof at the time
of renewal and the consequences of failure to do so.
Susan Durso, General Counsel for the commission, has determined that for
each year of the first five year period that the proposed amendment is in
effect there will be a decrease in expenditures or revenue for state government,
because the amendment eliminates the need to conduct a hearing before the
State Office of Administrative Hearings before an applicant can be denied.
No fiscal impact for local government as a result of enforcing or administering
the section.
Ms. Durso has also determined that for each year of the first five year
period the proposed amendments are in effect the public will benefit from
a reduction in administrative costs. 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 amendments.
Ms. Durso has also determined that for each year of the first five-year
period the proposed amendments 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, §2001.022.
Interested persons may send written comments regarding these proposed amendments
to the Texas Residential Construction Commission, P.O. Box 13144, Austin,
Texas 78711-3144. Comments regarding these amendments will be accepted for
thirty days following the date of publication 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 "303.207 amendments"
in the subject line.
Comments not received timely or that are submitted electronically but do
not do not include "303.207 amendment" in the subject line may not be considered.
The amendments are proposed 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 §427.001.
§303.207. Inspector Training.
(a)
The commission shall
provide
[
(b)
Third-party inspector applicants
must complete initial commission training within thirty days of notification
of eligibility for training or the commission will administratively withdraw
the application without refund of fees paid.
(c)
[
(d)
Registered third-party inspectors
must complete continuing education developed by the commission as required
periodically to stay abreast of changes in the Act or commission rules affecting
the third-party inspector's role in the state-sponsored inspection and dispute
resolution process and the commission-adopted warranties and performance standards.
(e)
Registered third-party inspectors
must complete the continuing education requirements of any license or certification
required to maintain their qualifications to serve as a third-party inspector
in the state-sponsored inspection and dispute resolution process and must
provide evidence of the completion of such continuing education at the time
of renewal of their third-party inspector registration.
(f)
Failure to timely participate
in training, to maintain qualifications or provide proof of completion of
the continuing education requirements mandated by this section may result
in disciplinary action, including the denial of a renewal application or the
revocation of a third-party inspector registration.
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 February 9, 2007.
TRD-200700392
Susan K. Durso
General Counsel
Texas Residential Construction Commission
Earliest possible date of adoption: March 25, 2007
For further information, please call: (512) 463-2886
10 TAC §303.268
The Texas Residential Construction Commission proposes new §303.268
of 10 TAC Chapter 303, Subchapter D, to prohibit third-party warranty companies
from conducting business with unregistered builders and remodelers or a builder
or remodeler that is not in good standing with the commission.
Susan Durso, General Counsel, has determined that for each year of the
first five-year period the new section is in effect there will be no fiscal
implications for state and local governments as a result of enforcing or administering
the proposed amendments.
Ms. Durso has also determined that for each year of the first five-year
period the new section is in effect the public will benefit from having an
additional safeguard in place to ensure that builders and remodelers are properly
registered with the commission.
Ms. Durso has also determined that for each year of the first five-year
period the new section is in effect there will be no significant fiscal impact
on individuals or large, small and micro-businesses. Third-party warranty
companies that have previously contracted with unregistered builders and remodelers
or builders and remodelers not in good standing with the commission will be
required to check the commission website prior to executing a contract to
assure that the builder/remodeler is registered and in good standing.
Ms. Durso has also determined that for each year of the first five-year
period the new section is in effect there should be no effect on a local economy;
therefore, no local employment impact statement is required under Administrative
Procedure Act §2001.022.
Interested persons may submit written comments (12 copies) on the proposed
new section to Susan Durso, General Counsel, Texas Residential Construction
Commission, P.O. Box 13144, Austin, Texas 78711. The deadline for submission
of comments is thirty (30) days from the date of publication of the proposed
new section in the
Texas Register
. Comments
received after that date will not be considered. Comments should be organized
in a manner consistent with the organization of the proposed rule. Comments
may be submitted electronically to comments@.trcc.state.tx.us. For comments
submitted electronically, please include "new rule 303.268" in the subject
line. Comments not received timely or that are submitted electronically but
do not include "new rule 303.368" in the subject line may not be considered.
The new section is proposed pursuant to Property Code §408.001,
which provides rulemaking authority to the commission, and Property Code §430.008
and §430.009, which provide for the registration and obligations of third-party
warranty companies.
No other statutes, articles, or codes are affected by the proposal.
§303.268.Conducting Business with Unregistered Builders/Remodelers Prohibited.
A commission-approved third-party warranty company shall not enter
into any contract or agreement to provide warranty coverage pursuant to Property
Code §430.009 or to act as a guarantor for a builder or a remodeler that
is not properly registered or not in good standing with the commission.
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 February 9, 2007.
TRD-200700393
Susan K. Durso
General Counsel
Texas Residential Construction Commission
Earliest possible date of adoption: March 25, 2007
For further information, please call: (512) 463-2886
Subchapter B. DISCIPLINARY PROCEEDINGS
(5)
] Building and performance standards--those
standards that apply to home construction built pursuant to a transaction
governed by the Act.
(6)
] Commission--the Texas Residential
Construction Commission.
(7)
] Construction Activities--actions
taken by the builder or at the direction of the builder by an employee, agent,
contractor or subcontractor of the builder during the process of building
the home or the improvement to the home.
(8)
] Construction defect--
(9)
] Cosmetic deficiency--any
marred, scuffed, scratched or smudged painted surface or countertop; chipped
or stained porcelain, tile, grout, or fiberglass; chipped surfaces of appliances
or plumbing fixtures; torn or defective window or door screens; marred, smudged,
scratched or stained cabinet surfaces or finishes; or, broken, chipped or
scratched glass, window or mirror.
(10)
] Dwelling unit--a single
unit providing complete independent living facilities for one or more persons,
including permanent provisions for living, sleeping, eating, cooking and sanitation.
(11)
] Executive Director--the
individual employed by the commission as the chief executive for the agency
or any person to whom the Executive Director has delegated the authority to
act on behalf of the Executive Director.
(12)
] Home--the real property,
improvements and appurtenances thereto for a single-family residential dwelling
unit or duplex.
(13)
] ICC--the International Code
Council, Inc., currently located at 5203 Leesburg Pike, Suite 600, Falls Church,
Virginia, 22041-3401, or at a subsequent address, and any successor organization
that performs substantially the same functions that the ICC performs as of
December 1, 2003.
(14)
] Improvement to the interior
of an existing home when the cost of the work exceeds $20,000--any modification
to the interior living space of a home, which includes the addition or installation
of permanent fixtures inside the home, pursuant to an agreement for work for
total consideration in excess of $20,000 to be paid by a homeowner to a single
builder.
(15)
] Living space--the enclosed
area in a home that is suitable for year-round residential use.
(16)
] Local building official--the
agency or department of a municipality, county or other local political subdivision
with authority to make inspections and to enforce the laws, ordinances, and
regulations applicable to the construction, alteration, or repair of homes
in that locality.
(17)
] Material improvement--a
modification to an existing home that either increases or decreases the home's
total square footage of living space that also modifies the home's foundation,
perimeter walls or roof. A material improvement does not include modifications
to an existing home if the modifications are designed primarily to repair
or replace the home's component parts.
(18)
] Person--an individual, partnership,
company, corporation, association, or any other legal entity, however organized.
(19)
] Remodeler--any business
entity or individual who, for a fixed price, commission, fee, wage, or other
compensation, constructs or supervises or manages the construction of a material
improvement to an existing home or an improvement to the interior of an existing
home when the cost of the work exceeds $20,000.
(20)
] Single-family residential
dwelling--a building that contains one or two dwelling units, including a
townhouse, complete with independent living facilities for one or more persons
suitable for one household, including permanent provisions for living, sleeping,
eating, cooking and sanitation.
(21)
] State inspector--a person
employed by the commission whose duties include serving as a member of an
appellate panel to:
(22)
] Statutory warranty--the
legal requirement that the component parts of a home perform to the building
and performance standards applicable to the construction for the number of
years as set in statute, to wit:
(23)
] Structural failure--for
purposes of Property Code §429.001(b) only, the term means non-compliance
with the commission-adopted performance standards for major structural components.
(24)
] Third-party inspector--a
person approved by the commission to conduct an objective home inspection
and prepare a report of that inspection as part of the state-sponsored inspection
and dispute resolution process.
(25)
] Townhouse--a single-family
dwelling unit constructed in a group of three or more attached dwelling units
in which each unit extends from foundation to roof and with open space on
at least two sides not more than three stories in height with a separate means
of ingress and egress.
(26)
] Transaction governed by
the Act--an agreement between a homeowner and a builder:
Chapter 303.
REGISTRATION
After March 1, 2004,
]
An individual or
business entity
[
a person
] operating as a builder
or
remodeler
in this state must keep a current certificate of registration
and must timely renew its certificate of registration.
who
]
fails to maintain a current certificate of registration may be subject to
a late fee
, other
[
and either an
] administrative penalty
,
or other disciplinary action, as determined by 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.
Subchapter B. REGISTRATION OF HOMES
use the
] Home Registration Form
with the appropriate fee
.
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.
]
Subchapter C. REGISTRATION OF THIRD-PARTY INSPECTORS
develop
]
an initial training program for all registered third-party inspectors.
(b)
] Registered third-party inspectors
must complete the commission-developed training prior to participation in
the state-sponsored inspection and dispute resolution process.
Subchapter D. THIRD-PARTY WARRANTY COMPANIES
Chapter 305.
PRACTICE AND PROCEDURES FOR HEARINGS AND DISCIPLINARY ACTIONS