TITLE 10.COMMUNITY DEVELOPMENT

Part 7. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION

Chapter 303. REGISTRATION

Subchapter C. REGISTRATION OF THIRD-PARTY INSPECTORS

10 TAC §303.205

The Texas Residential Construction Commission ("commission") proposes amendments to Title 10, Part 7, Chapter 303, Subchapter C, §303.205, relating to the denial of a third-party inspector application for registration. The proposed amendments delineate certain grounds for denial of an inspector application for registration or renewal.

The amendments are proposed to incorporate into rule certain grounds for denial of a third-party inspector application for registration or renewal.

The amendments are proposed under Property Code §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code §427.001, which requires the commission to adopt rules to specify the information that a third-party inspector must provide in order to register with the commission.

Susan K. Durso, General Counsel, has determined that for each year of the first five-year period the proposed amendment is in effect there will be no fiscal implications for state or 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 amendment is in effect the public benefit will be knowing the process the third-party inspectors are to follow in performing work assigned by the commission and the criteria upon which applications for renewal will be judged.

Ms. Durso has also determined that for each year of the first five-year period the proposed amendment is in effect there will be no significant effect on individuals or large, small and micro-businesses as a result of the adoption of the proposed amendment.

Ms. Durso has also determined that for each year of the first five-year period the proposed amendment 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 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 "Third-party Inspector Rule Amendments" in the subject line. Comments submitted electronically to another electronic address or that do not include "Third-party Inspector Rule Amendments" in the subject line may not be considered.

The amendments are proposed to implement Property Code §408.001 and §427.001.

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

§303.205.Denial of Registration.

(a) The commission shall deny a certificate of registration or a renewal of registration if the commission determines that the individual is unqualified or unfit to perform the duties of a third-party inspector.

(b) If the commission denies a certificate of registration or a renewal of registration, the commission shall provide written notice to the individual via certified mail, return receipt requested, not later than the 15th day after the commission receives the completed application for registration or renewal and the appropriate fee.

(c) The commission shall state the reason(s) for denial of a certificate of registration in its written notice to the individual and provide notice of the opportunity for appeal.

(d) The commission may deny a registration or renewal for any of the following reasons, including but not limited to:

(1) refusal to perform an inspection without cause;

(2) refusal to file reports in a timely manner;

(3) refusal to correct reports remanded by the commission or an appellate panel;

(4) failure to complete an assignment; or

(5) failure to provide report information in a format approved for use by 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 10, 2006.

TRD-200600699

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: March 26, 2006

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


Chapter 305. PRACTICE AND PROCEDURES FOR HEARINGS AND DISCIPLINARY ACTIONS

Subchapter D. POST-SETTLEMENT AND POST-HEARING MATTERS

10 TAC §§305.33, 305.42, 305.43

The Texas Residential Construction Commission proposes new §§305.33, 305.42 and 305.43 of 10 TAC Chapter 305, regarding its procedures for hearings and disciplinary actions. New §305.33 provides for dismissal of a contested case proceeding upon completion of a pre-hearing settlement. New §305.42 provides for the imposition of costs and expenses incurred by the commission in pursuing a disciplinary action on a respondent if the action results in the finding of a violation of the Act or denial of a registration. New §305.43 provides that the commission may utilize the assistance of the Office of the Attorney General to pursue injunctive relief against a person who is acting as a builder without registration or in violation of a commission order.

Susan K. Durso, General Counsel, has determined that for each year of the first five-year period the new sections are in effect there will be no fiscal implications for state or local governments as a result of enforcing or administering the proposed new sections.

Ms. Durso has also determined that for each year of the first five-year period the new sections are in effect the public will benefit from more precise disciplinary actions and hearings procedures.

Ms. Durso has also determined that for each year of the first five-year period the new sections are in effect there will be no significant effect on individuals or large, small and micro-businesses because of the adoption of the proposed new sections.

Ms. Durso has also determined that for each year of the first five-year period the new sections 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 new sections to Susan K. Durso, General Counsel, Texas Residential Construction Commission, P.O. Box 13144, Austin, Texas 78711. The deadline for submission of comments is 30 days from the date of publication of the proposed new 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 new sections. Comments may be submitted electronically to comments@trcc.state.tx.us. For comments submitted electronically, please include "New Procedural Rules" in the subject line. Comments submitted electronically to another electronic address or that do not include "New Procedural Rules" in the subject line may not be considered.

The new sections are proposed pursuant to Property Code §408.001, which provides rulemaking authority to the commission, Property Code Chapters 418 and 419 and Government Code Chapter 2001 regarding administrative procedures and contested case hearings.

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

§305.33.Dismissal upon Pre-Hearing Settlement.

The Executive Director may request dismissal of contested cases from SOAH's docket when a respondent has signed and met all requirements of either a proposed agreed order or a voluntary revocation of registration.

§305.42.Imposition of Costs.

The commission may impose on a respondent the expenses or costs incurred in connection with a contested case in which a violation has been found or denial upheld.

§305.43.Injunction.

(a) The commission will inform unregistered builders in writing of the requirements to register and of the potential consequences of failing to do so.

(b) The commission, on relation of the Attorney General at the request of the commission, may also bring an action in district court to enjoin the person from engaging in or continuing a violation of the Act, commission rules or commission order, 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 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 10, 2006.

TRD-200600704

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: March 26, 2006

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