Part 7.
TEXAS RESIDENTIAL CONSTRUCTION COMMISSION
Chapter 301.
GENERAL PROVISIONS
Subchapter A. DEFINITIONS
10 TAC §301.1
The Texas Residential Construction Commission (the "commission")
adopts on an emergency basis a new rule at Title 10, Part 7, Chapter 301,
Subchapter A, Definitions, §301.1, concerning definitions to be used
in construing agency rules promulgated to implement the Texas Residential
Construction Commission Act, Title 16, Property Code.
Section 301.1, relating to definitions, defines words and terms that are
used in Part 7 of Title 10 of the Texas Administrative Code. It defines Accrual
or accrued, Act, Affiliate, Builder, Building and performance standards, Commission,
Construction defect, Executive Director, Home, ICC, Improvement to the interior
of an existing home when the cost of the work exceeds $20,000, Living space,
Local building official, Material improvement, Person, Statutory warranty,
State inspector, Third-party inspector and Transaction governed by the Act.
The rule is adopted on an emergency basis to clarify agency rules for persons
interested in the implementation of House Bill 730 enacted during the 78th
Legislative Session, Regular Session. The new rule is adopted under new Title
16, Property Code (Act effective Sept. 1, 2003, 78th Leg., R.S., ch. 458, §1.01),
which requires the commission to begin providing services to the affected
persons on January 1, 2004. The adoption of the emergency rule will provide
clarity to those who seek to utilize agency rules and those who are required
to comply with the provisions of House Bill 730 as set out in Title 16, Property
Code.
The statutory provisions affected by the emergency rule are those
set forth in Title 16, Property Code, and House Bill 730, 78th Legislature.
No other statutes, articles, or codes are affected by the rule.
§301.1.Definitions.
The following words and terms, when used in rules promulgated by the
commission, shall have the following meanings, unless the context clearly
indicates otherwise.
(1)
Accrual or accrued--when a homeowner first becomes aware
that the property damage in the home is a potential construction defect.
(2)
Act--the Texas Residential Construction Commission Act,
Title 16, Property Code.
(3)
Affiliate--a person who directly or indirectly through
one or more intermediaries controls, is controlled by or is under common control
with a specified person.
(4)
Builder--
(A)
as defined by Property Code §401.003 any business
entity or individual who, for a fixed price, commission, fee, wage, or other
compensation, constructs or supervises or manages the construction of:
(i)
a new home;
(ii)
a material improvement to a home, other than an improvement
solely to replace or repair a roof of an existing home; or
(iii)
an improvement to the interior of an existing home when
the cost of the work exceeds $20,000.
(B)
When required by the context the term may include:
(i)
an owner, officer, director, shareholder, partner, affiliate
or employee of the builder;
(ii)
a risk retention group governed by §21.54, Insurance
Code, that insures all or any part of builder's liability for the cost to
repair a residential construction defect; and
(iii)
a third-party warranty company and its administrator.
(5)
Building and performance standards--those standards adopted
by the commission pursuant to §430.001 of the Act.
(6)
Commission--the Texas Residential Construction Commission.
(7)
Construction defect--as defined in §401.004 of the
Act:
(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.
(8)
Executive Director--the individual employed by the commission
pursuant to §407.001 of the Act, which may include a person delegated
by the Executive Director to perform a specific function on behalf of the
Executive Director.
(9)
Home--the real property and improvements and appurtenances
thereto for a single-family residential dwelling or duplex.
(10)
ICC--the International Code Council, Inc., currently located
at 5203 Leesburg Pike, Suite 708, 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.
(11)
Improvement to the interior of an existing home when the
cost of the work exceeds $20,000--modifications to the interior living space
of a home that include the addition of permanent fixtures inside the home.
The commission shall determine whether such modifications meet the monetary
threshold for inclusion within the requirements of the Act by aggregating
the total consideration paid by a homeowner within a twelve-month period for
all such modifications to the home.
(12)
Living space--the enclosed area in a home that is suitable
for year-round use, embodying walls, floors, and ceilings that are similar
to the rest of the home.
(13)
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 residential structures in that
locality.
(14)
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.
(15)
Person--an individual, partnership, company, corporation,
association, or any other legal entity, however organized.
(16)
Statutory warranty--
(A)
that warranty defined in §430.001(b) of the Act covering:
(i)
one year for workmanship and materials;
(ii)
two years for plumbing, electrical, heating, and air-conditioning
delivery systems; and
(iii)
ten years for major structural components of the home;
or
(B)
that limited warranty of habitability created in §430.002
of the Act.
(17)
State inspector--a person employed by the commission pursuant
to §427.002 of the Act to:
(A)
review on an appeals panel the recommendations of third-party
inspectors;
(B)
provide consultation to third-party inspectors; and
(C)
administer the state-sponsored inspection and dispute resolution
process.
(18)
Third-party inspector--a person approved by the commission
to perform services under the state-sponsored inspection and dispute resolution
process.
(19)
Transaction governed by the Act--
(A)
the construction of a new home; or
(B)
for an existing home:
(i)
a material improvement to a home other than an improvement
solely to replace or repair the roof; or
(ii)
an improvement to the interior when the cost paid for
the work exceeds $20,000.
This agency hereby certifies that the emergency
adoption 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 December 19, 2003.
TRD-200308755
Susan K. Durso
General Counsel
Texas Residential Construction Commission
Effective Date: December 19, 2003
Expiration Date: April 16, 2004
For further information, please call: (512) 463-9524
Subchapter A. REGISTRATION OF BUILDERS
Chapter 303.
REGISTRATION