TITLE 10.COMMUNITY DEVELOPMENT

Part 7. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION

Chapter 300. ADMINISTRATION

10 TAC §300.1

The Texas Residential Construction Commission of Texas (commission) proposes new §300.1, concerning Procedures for Resolving Vendor Protests. Proposed new §300.1 will provide procedures for resolving vendor protests relating to agency purchasing activities as required BY TEX. GOV'T CODE ANN. §2155.076. The proposed new section closely follows the rule on such protests promulgated by the Texas Building and Procurement Commission in Texas Administrative Code, Title 1, Part 5, Chapter 111, Subchapter A, §111.3. Project Number 2-04-021 is assigned to this proceeding.

Stephen D. Thomas, Executive Director, has determined that for each year of the first five-year period the proposed new rule is in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the new rule.

Mr. Thomas has also determined that for each year of the first five-year period the proposed new rule is in effect, the public benefit anticipated as a result of enforcing the section will be to provide readily available written protest procedures for vendors who wish to dispute issues related to agency purchases.

Mr. Thomas has also determined that there will be no effect on large or small businesses or micro-businesses as a result of enforcing this section.

Mr. Thomas has also determined that for each year of the first five-year period the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required pursuant to Administrative Procedure Act §2001.022.

Interested persons may submit written comments (16 copies) on the proposed rule to Susan K. Durso, General Counsel, Texas Residential Construction Commission, P.O. Box 13144, Austin, Texas, 78711. The deadline for submission of comments with the commission is 30 days from the date of publication of the proposed rule in the Texas Register . Comments should be organized in a manner consistent with the organization of the proposed rule. All comments should refer to Project Number 2-04-021.

The new rule is proposed under the Texas Residential Construction Commission Act, TEX. PROPERTY CODE ANN. §408.001 (Vernon 1995, Supplement 2004) (the Act), which provides the Texas Residential Construction Commission with the authority to adopt rules as necessary for the implementation of the Act and specifically, TEX. GOV'T CODE ANN. §2155.076, which requires the commission to develop and adopt protest procedures for vendors' protests concerning commission purchases that are consistent with the Texas Building and Procurement Commission rules on the same subject.

Cross Reference to Statutes: TEX. GOV'T CODE ANN. §2155.076 and TEX. PROPERTY CODE §408.001.

§300.1.Procedures for Resolving Vendor Protests.

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

(1) Commission--The Texas Residential Construction Commission.

(2) Purchasing Officer--The commission employee who has received certification as a Texas Public Purchaser and who is responsible for commission purchases.

(3) Interested parties--All vendors who have submitted bids or proposals for the provision of goods or services pursuant to a solicitation for a contract with the commission.

(b) Protest Procedures. Any actual or prospective bidder, respondent, offeror, proposer or contractor who considers himself to have been aggrieved in connection with the commission's solicitation, evaluation, or award of a contract may protest to the Purchasing Officer. Such protests must be made in writing and received by the Purchasing Officer within ten (10) working days after the protesting party knows, or should have known, of the occurrence of the action that is protested. Protests must conform to the requirements of this subsection and subsection (d) of this section, and shall be resolved through use of the procedures that are described in subsections (e) - (j) of this section. The protesting party must mail or deliver copies of the protest to the commission and other interested parties.

(c) Stay of Contract Award. In the event of a timely protest under this section, the commission will not proceed further with the solicitation or award of the contract unless the Executive Director, after consultation with the Purchasing Officer and the General Counsel, makes a written determination that the contract must be awarded without delay, to protect the best interests of the commission.

(d) Protest Requirements. A protest must be sworn and contain:

(1) a specific identification of the statutory or regulatory provision that the protesting party alleges has been violated;

(2) a specific description of each action taken by the commission that the protesting party alleges to be a violation of the statutory or regulatory provision that the protesting party has identified pursuant to paragraph (1) of this subsection;

(3) a precise statement of the relevant facts;

(4) a statement of any issues of law or fact that the protesting party contends must be resolved;

(5) a statement of the argument and authorities that the protesting party offers in support of the protest;

(6) a statement that copies of the protest have been mailed or delivered to the commission and all other identifiable interested parties; and

(7) the name, address and telephone number of a contact for the protesting party and for all other identified interested parties.

(e) Purchasing Officer's Role and Responsibilities. The Purchasing Officer shall conduct a review of issues raised by the protesting parties and shall have the following role and responsibilities in resolving the protest issues among the parties:

(1) The Purchasing Officer may settle and resolve the dispute over the solicitation or award of a contract at any time before the matter is submitted on appeal to the Executive Director.

(2) The Purchasing Officer may solicit written responses to the protest from other interested parties.

(3) If the protest is not resolved by mutual agreement, the Purchasing Officer will issue a written determination that resolves the protest. The Purchasing Officer may consult with the General Counsel in preparing a written determination.

(4) If the Purchasing Officer determines that no violation of statutory or regulatory provisions has occurred, the Purchasing Officer shall inform the protesting party, the Executive Director, and other interested parties by letter that sets forth the reasons for the determination.

(5) If the Purchasing Officer determines that a violation of any statutory or regulatory provisions has occurred in a situation in which a contract has not been awarded, then the Purchasing Officer shall inform the protesting party, the Executive Director, and other interested parties of that determination by letter that details the reasons for the determination and the appropriate remedy.

(6) If the Purchasing Officer determines that a violation of any statutory or regulatory provisions has occurred in a situation in which a contract has been awarded, then the Purchasing Officer shall inform the protesting party, the Executive Director, and other interested parties of that determination by letter that details the reasons for the determination. This letter may include a declaration that the contract is void.

(f) Appeal of Purchasing Officer Decision. The party against whom a determination is made may appeal a determination of a protest by the Purchasing Officer to the Executive Director of the commission. An appeal of the Purchasing Officer's determination must be in writing and received in the office of the commission's Executive Director by not later than ten (10) working days after the date on which the Purchasing Officer has sent written notice of his determination. The scope of the appeal shall be limited to review of the Purchasing Officer's determination. The party appealing the determination must mail or deliver to the Purchasing Officer and all other interested parties a copy of the appeal, which must contain a certified statement that such copies have been provided.

(g) Executive Director Review or Reference of Appeal. The Executive Director may confer with General Counsel in his review of the matter appealed. The Executive Director may, in his discretion, refer the matter to the commissioners for their review in a regularly scheduled open meeting or he may issue a written decision that resolves the protest.

(h) Appeals Referred to Commission. The following requirements shall apply to a protest that the Executive Director has referred to the commissioners.

(1) The Executive Director shall deliver copies of the original protest, the Purchasing Officer's determination letter, the notice of appeal and any responses by interested parties to the commissioners.

(2) The commissioners will issue a final order on any appeal referred to the commission.

(i) Written determination of Appeal. A written decision that either the commissioners or the Executive Director has issued shall be the final administrative action of the commission.

(j) Document Retention. The commission will maintain all documentation on the purchasing process that is the subject of a protest or appeal in accordance with the commission's retention schedule.

(k) Protest/Appeal Not Timely Filed. A protest or appeal that is not filed timely shall not be considered unless good cause for delay is shown or the Executive Director determines that an appeal raises issues that are significant to commission procurement practices or procedures in general.

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 23, 2004.

TRD-200401273

Susan Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: April 4, 2004

For further information, please call: (512) 475-0595


10 TAC §300.2

The Texas Residential Construction Commission of Texas (commission) proposes new §300.2, concerning Historically Underutilized Business Program. Proposed new §300.2 adopts by reference the Texas Building and Procurement Commission's rules related to the use of historically underutilized businesses in agency procurement procedures as required by TEX. GOV'T CODE ANN. §2161.003. The proposed new section adopts by reference the Texas Building and Procurement Commission's rules on Historically Underutilized Businesses as reported in the Texas Administrative Code, Title 1, Part 5, Chapter 111, Subchapter B, §§111.11 - 111.28. Project Number 2-04-022 is assigned to this proceeding.

Stephen D. Thomas, Executive Director, has determined that for each year of the first five-year period the proposed new rule is in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the new rule.

Mr. Thomas has also determined that for each year of the first five-year period the proposed new rule is in effect, the public benefit anticipated as a result of enforcing the section will be to increase opportunities for historically underutilized businesses to participate in agency purchases.

Mr. Thomas has also determined that there will be no effect on large or small businesses or micro-businesses as a result of enforcing this section.

Mr. Thomas has also determined that for each year of the first five-year period the proposed section is in effect there should be no effect on a local economy, and therefore no local employment impact statement is required pursuant to Administrative Procedure Act §2001.022.

Interested persons may submit written comments (16 copies) on the proposed rule to Susan K. Durso, General Counsel, Texas Residential Construction Commission, P.O. Box 13144, Austin, Texas, 78711. The deadline for submission of comments with the commission is 30 days from the date of publication of the proposed rule in the Texas Register . Comments should be organized in a manner consistent with the organization of the proposed rule. All comments should refer to Project Number 2-04-022.

The new rule is proposed under the Texas Residential Construction Commission Act, TEX. PROPERTY CODE ANN. §408.001 (Vernon 1995, Supplement 2004) (the Act), which provides the Texas Residential Construction Commission with the authority to adopt rules as necessary for the implementation of the Act and specifically, TEX. GOV'T CODE ANN. §2161.003, which requires the commission to adopt the Texas Building and Procurement Commission's rules on historically underutilized businesses.

Cross Reference to Statutes: TEX. GOV'T CODE ANN. §2161.003 and TEX. PROPERTY CODE §408.001.

§300.2.Historically Underutilized Business Program.

The commission adopts by reference the rules of the Texas Building and Procurement Commission in 1 Texas Administrative Code (TAC) Chapter 111, Subchapter B, relating to the Historically Underutilized Business Program.

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 23, 2004.

TRD-200401274

Susan Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: April 4, 2004

For further information, please call: (512) 475-0595


Chapter 318. RESIDENTIAL CONSTRUCTION ARBITRATION

Subchapter A. ARBITRATIONS BETWEEN HOMEOWNERS AND BUILDERS

10 TAC §§318.1 - 318.3

The Texas Residential Construction Commission (the "commission") proposes for adoption a new rule at Title 10, Part 7, Chapter 318, Subchapter A, Arbitrations between Homeowners and Builders.

Section 318.1 states the purpose of the rule. Section 318.2, defines arbitration and arbitrator and §318.3 states the instances in which arbitration awards related to residential construction must be filed with the commission and the instances in which the filing is voluntary.

Stephen D. Thomas, Executive Director, has determined that for each year of the first five-year period the proposed rule is in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the proposed rule.

Mr. Thomas has also determined that for each year of the first five-year period the proposed rule is in effect the public will benefit from the information gathered by the commission from the filing of arbitration awards.

Mr. Thomas has also determined that there will be no effect on large, small and micro-businesses as a result of the adoption of the proposed rule.

Mr. Thomas has also determined that for each year of the first five-year period the proposed rule 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 (16 copies) on the proposed rule to Susan K. Durso, General Counsel, Texas Residential Construction Commission, PO Box 13144, Austin, Texas, 78711. 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 proposed rule.

The new rule is proposed to implement new legislation enacted during the 78th Legislative Session, Regular Session, House Bill 730 (Act effective Sept. 1, 2003, 78th Leg., R.S., ch. 458, §1.01), including Title 16, Property Code. Section 408.001 of the Property Code provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code. Section 430.001 requires that certain persons file arbitration awards relating to residential construction with the commission.

The proposed rule is being simultaneously adopted as an emergency rule in the Emergency Rules section of this issue of the Texas Register .

The statutory provisions affected by the proposal are those set forth in the Title 16, Property Code and House Bill 730, 78th Legislature, R.S.

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

§318.1.Purpose.

(a) This subchapter applies only to a dispute between a homeowner and a builder that involves an alleged construction defect.

(b) This subchapter supplements Chapter 171, Civil Practices and Remedies Code, and the Federal Arbitration Act (9 U.S.C. §§ 1-16), as amended.

§318.2.Definitions.

(a) Arbitration--the procedure for dispute resolution described by §154.027, Texas Civil Practices and Remedies Code, as it may be amended from time to time.

(b) Arbitrator--a neutral individual who hears the claims of the parties to a dispute and renders a decision and who is:

(1) chosen by the parties to the dispute; or

(2) appointed by a court; or

(3) selected by a third party under an agreement of the parties to the dispute or in accordance with applicable rules.

§318.3.Filing of Arbitration Awards.

(a) Mandatory. If an arbitration award to which this subchapter applies is filed in a court of competent jurisdiction in this state, the filer shall also file a summary of the arbitration award with the commission no later than the thirtieth day after the date the award is made by the arbitrator.

(b)   The award summary shall include:

(1) the names of the parties to the dispute;

(2) the name of each party’s attorney, if any;

(3) the name of the arbitrator(s) who conducted the arbitration;

(4) the name of the party who administered the arbitration, if any;

(5) the total fees charged to conduct the arbitration;

(6) a general statement of each issue in dispute;

(7) the arbitrator’s determination, including the party that prevailed in each issue in dispute; and;

(8) the date of the arbitrator’s award.

(c) An agreement to prohibit the disclosure of the information listed in subsection (b) of this section is unenforceable.

(d) If a person required to file an award under this section and fails to do so in the time period required by subsection (a) of this section, that person shall pay a late fee as established by the commission.

(e) A party to an arbitration or an attorney for a party may report to the commission the failure to file an award by the person responsible for filing under subsection (a) of this section.

(f) Voluntary filing. Any party to an arbitration award covered by this section may voluntarily file the information contained in subsection (b) of this section.

(g) This section applies only to an arbitration award in an arbitration that is initiated on or after January 1, 2004.

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 23, 2004.

TRD-200401275

Susan Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: April 4, 2004

For further information, please call: (512) 475-0595