16 TAC §§70.10, 70.20, 70.30, 70.50, 70.60, 70.70, 70.73, 70.75
The Texas Department of Licensing and Regulation ("Department")
proposes amendments to existing rules at 16 Texas Administrative Code, §§70.10,
70.20, 70.30, 70.50, 70.60, 70.70, 70.73, and 70.75, regarding the Industrialized
Housing and Buildings program. The proposed amendments are necessary to implement
statutory changes made by Senate Bill 443, 79th Legislature, and to clarify
and update requirements for manufacturers and industrialized builders.
The proposed amendment to §70.10(a) would remove from the definition
of "commercial structure" language concerning the types of buildings not included
in the definition. The substance of that language is moved to the list of
exemptions in §70.30(a). The proposed amendment is necessary to reflect
changes made by Senate Bill 443, 79th Legislature, to §1202.003 of the
Texas Occupations Code. Also in §70.10(a) the definition of "industrialized
builder" is amended to include a person who purchases industrialized housing
and buildings from other industrialized builders. The purpose of this change
is to clarify that industrialized builders may purchase industrialized housing
and buildings for sale or lease to the public from either manufacturers or
other industrialized builders.
The proposed amendment to §70.20(5) requires an industrialized builder
to notify the Department when a module or modular component is sold to another
industrialized builder and when an industrialized manufacturer takes possession
of units previously reported as shipped to an industrialized builder. The
proposed amendments are necessary to clarify that transfers to another industrialized
builder includes sales to industrialized builders and to clarify that transfers
to a manufacturer also need to be reported to the department so that the department
may assure compliance with the installation and site inspection requirements
of the statute and rules.
The proposed amendments to §70.30(a) add the exemption of commercial
structures that are installed in a manner other than on a permanent foundation
and are either not open to the public or less than 1,500 square feet in total
area and used other than as a school or a place of religious worship. In addition,
the exemption for construction site office buildings is changed to construction
site buildings. The proposed amendments are necessary to incorporate statutory
changes made by Senate Bill 443 to §§1202.001 and 1202.003 of the
Texas Occupations Code.
The proposed amendments to §70.50 require an industrialized builder
in subsection (b) to report to the department when a builder sells or transfers
a unit to another registered person and add new subsection (e) that requires
a manufacturer to report on its monthly report the disposition of units previously
reported as shipped. The proposed amendments are necessary to clarify that
transfers to another person include sales and to assure that manufacturers
report the disposition of repossessed units.
The proposed amendments to §70.60 restate the purpose of a certification
inspection, break subsection (a) into 2 subsections (a) and (b), re-letter
existing subsections (b) and (c), clarify when an inspection is terminated,
require both the manufacturer and the third party inspection agency responsible
for in-plant inspections to assure that conditions of certification are met,
require the addition of conditions of certification to the plant certification
report, and require that a non-compliance report be issued when a certification
team determines that a manufacturer is not capable of meeting the certification
requirements. The proposed amendments are necessary to provide a clearer understanding
of the purpose of the certification inspection and the requirements to become
certified.
The proposed amendments to §70.70(d) require a manufacturer to provide
critical load points for the attachment of an industrialized house or building
to the foundation instead of a foundation design and to provide minimum requirements
for connection and attachment of all modules and modular components to the
foundation system. The proposed amendments are necessary because a manufacturer
generally does not have enough information about the installation site to
provide a relevant foundation design. New subsection (e) is added to §70.70
requiring foundation system designs by licensed Texas engineers or architects
and specifies the minimum information required on the foundation system design.
The proposed amendment is necessary to assure compliance of the foundation
system with the mandatory building codes, since review of the foundation system
design by a design review agency is not required, and to assure that the foundation
system design contains all applicable information required for the industrialized
builder to properly install the industrialized housing or building. The proposed
amendments to existing §70.70(e) will renumber this as subsection (f),
remove the requirements for foundation system designs, and add the requirement
that unique on-site details shall comply with the mandatory building codes.
The proposed amendment is necessary since foundation requirements were added
to new subsection (e) and to clarify that construction on-site must also comply
with the mandatory building codes.
The proposed amendment to §70.73(a) requires that industrialized housing
and buildings sited within a municipality comply with the foundation system
design and any unique on-site details instead of to any unique foundation
system or on-site detailed drawings. The proposed amendment is necessary to
correlate with the proposed amendments to §70.70.
The proposed amendments to §70.73(b) require industrialized housing
and buildings sited outside the jurisdiction of a municipality to comply with
the foundation system design and any unique on-site details instead of to
any unique foundation system or on-site detailed drawings. New paragraphs
(1)-(3) are added to indicate when site inspections are required outside the
jurisdiction of a municipality. The proposed amendments are necessary to correlate
with the proposed amendments to §70.70 and to incorporate statutory changes
made by Senate Bill 443 to §1202.203 of the Texas Occupations Code.
The proposed amendment to §70.75(a) requires that the manufacturer
provide the builder or installation permit holder a set of approved plans
as necessary to complete construction of the house or buildings and that the
approved plans shall include critical load points for attachment of the house
or building to the foundation. The proposed amendments are necessary to correlate
with the proposed amendments to §70.70 and to clarify the requirements
for documentation provided to the industrialized builder or installation permit
holder. The proposed amendments to §70.75(b) require the industrialized
builder to provide certain documentation to either the purchaser or installation
permit holder including a copy of the foundation system design and any unique
on-site details. The proposed amendments are necessary to correlate with the
proposed amendments to §70.70 and to assure that installation permit
holders are also provided with necessary documentation.
William H. Kuntz, Jr., Executive Director, has determined that for the
first five-year period the proposed amendment is in effect there will be no
significant costs and no significant effect on revenue to state government.
There will be no costs or effect on revenue to local government as a result
of these rule amendments.
Mr. Kuntz also has determined that for each year of the first five-year
period the new rules are in effect, the public benefit will be clearer requirements
governing industrialized housing and buildings, which will promote public
safety.
Mr. Kuntz also has determined that for each year of the first five-year
period the new rules are in effect, there will be no significant economic
costs to persons who are required to comply with the amended rules, including
small and micro-businesses.
Comments on the proposal may be submitted to William H. Kuntz, Jr., Executive
Director, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin,
Texas 78711, or facsimile (512) 475-2872, or electronically: whkuntz@license.state.tx.us.
The deadline for comments is 30 days after publication in the
Texas Register
.
The amendments are proposed under Texas Occupations Code, Chapters
1202 and 51, which authorize the Department to adopt rules as necessary to
implement these chapters.
The statutory provisions affected by the proposal are those set forth in
Texas Occupations Code, Chapters 1202 and 51. No other statutes, articles,
or codes are affected by the proposal.
§70.10.Definitions.
(a)
The following words and terms, when used in this chapter,
shall have the following meanings, unless the context clearly indicates otherwise.
(1) - (6)
(No change.)
(7)
Commercial structure--An industrialized building classified
by the mandatory building codes for occupancy and use groups other than residential
for one or more families. [
The term shall not include a structure that
is not installed on a permanent foundation and either is not open to the public
or is less than 1,500 square feet in total area and not used as a school or
place of religious worship.
]
(8) - (14)
(No change.)
(15)
Industrialized builder--A person who is engaged in the
assembly, connection, and on-site construction and erection of modules or
modular components at the building site or who is engaged in the purchase
of industrialized housing or buildings or of modules or modular components
from a manufacturer
or from another industrialized builder
for
sale or lease to the public; a subcontractor of an industrialized builder
is not a builder for purposes of this chapter.
(16) - (40)
(No change.)
(b) - (c)
(No change.)
§70.20.Registration of Manufacturers and Industrialized Builders.
Manufacturers and industrialized builders shall not engage in any business
activity relating to the construction or location of industrialized housing
or buildings without being registered with the department.
(1) - (4)
(No change.)
(5)
A registered manufacturer or industrialized builder shall
notify the department in writing within 10 days if:
(A) - (F)
(No change.)
(G)
an industrialized builder transfers
or sells
a
module or modular component to another industrialized builder.
(H)
an industrialized manufacturer
takes possession of units previously reported as shipped to an industrialized
builder.
(6)
(No change.)
§70.30.Exemptions.
(a)
The scope of this chapter is limited by Chapter 1202; accordingly,
it does not apply to:
(1)
mobile homes or HUD-code manufactured homes as defined
in Texas Occupations code, Chapter 1201;
(2)
housing constructed of sectional or panelized systems not
utilizing modular components;
(3)
ready-built homes which are constructed so that the entire
living area is contained in a single unit or section at a temporary location
for the purpose of selling it and moving it to another location, provided
that modular components are not used in the construction of the ready-built
home;
(4)
any residential or commercial structure which is in excess
of three stories or 49 feet in height as measured from the finished grade
elevation at the entrance of the structure to the peak of the roof;
(5)
a commercial building or structure
that is:
(A)
installed in a manner other than on a permanent
foundation; and
(B)
either:
(i)
is not open to the public; or
(ii)
is less than 1,500 square feet in total area
and used other than as a school or a place of religious worship;
(6)
[
(5)
] buildings that are specifically
referenced in the mandatory building codes as exempt from permits;
(7)
[
(6)
] construction site [
office
] buildings; or
(8)
[
(7)
] any open construction.
(b)
The installation of an industrialized house or a permanent
industrialized building that is moved from the first installation site to
a new installation site is subject to the permitting and approval requirements
of the local authorities.
§70.50.Manufacturer's and Builder's Monthly Reports.
(a)
(No change.)
(b)
Each industrialized builder shall keep records of all industrialized
housing, buildings, modules, and modular components that were sold, leased,
or installed. These records shall be kept for a minimum of ten years from
the date of successful completion of the final site inspection and shall be
made available to the department for review upon request. If the builder is
not responsible for the installation, then the records shall be maintained
for a period of 5 years from the date of sale or lease and shall be made available
to the department upon request. An annual audit of units sold, leased, or
installed by the builders shall be conducted by the Department. The audit
will identify the modules or modular components by the name and Texas registration
number of the manufacturer of each unit and the assigned Texas decal or insignia
numbers and the corresponding identification, or serial numbers, as assigned
by the manufacturer. The builder shall report, or provide, the following information
to the Department for each unit identified in the audit within the timeframe
set by the audit.
(1) - (4)
(No change.)
(5)
If the builder is not responsible for the installation
and site work, or if the builder has transferred
or sold
[
the ownership of
] the unit to another person, then the builder shall
provide identification of the installation permit number, assigned by the
Department, or builder registration number, assigned by the Department, of
the person responsible.
(c) - (d)
(No change.)
(e)
A manufacturer that takes possession
of units previously reported as shipped shall report the disposition of those
units on the manufacturer’s monthly report in accordance with subsection
(a) of this section.
§70.60.Responsibilities of the Department--Plant Certification.
(a)
Prior to being issued decals or insignia, each manufacturing
facility will undergo a certification inspection. The plant certification
will be conducted by a department team normally consisting of an engineer
and one or more department inspectors or, when designated by the department,
third party inspectors. The inspection shall be conducted in accordance with
the procedures established by the Texas Industrialized Building Code Council.
A certification inspection has two primary purposes:
[
The purpose
of the plant certification inspection
]
(1)
to verify that the manufacturer
is capable of producing modules or modular components that comply with the
law and the rules, mandatory building codes, and approved design package;
and
(2)
to verify
[
will be to assure
] that the
manufacturer’s approved
compliance control
program
will ensure compliance now and in the future.
[
in
the manufacturing facility is capable of producing structures in compliance
with the approved design package.
]
(b)
The team will become familiar with all aspects
of the manufacturer's approved design package. Structures on the production
line will be checked to assure that failures to conform located by the inspection
team are being located by the plant compliance control program and are being
corrected by the plant personnel. The inspection team will work closely with
the plant compliance control personnel to assure that the approved design
package and compliance control manuals for the facility are clearly understood
and [
are being
] followed. If deemed necessary by the certification
inspection team, a representative of the design review agency must be present
during the inspection. [
The plant certification inspection will terminate
when the inspection team has fully evaluated all aspects of the manufacturing
facility.
] At least one module or modular component containing all systems,
or a combination of modules or modular components containing all systems,
shall be observed during all phases of construction. The team must inspect
all modules or modular components in the production line
for Texas
during
the certification.
The plant certification inspection will terminate
when the inspection team has fully evaluated all aspects of the manufacturing
facility.
(c)
[
(b)
]
The certification
[
Following completion of the plant certification inspection, the
] team
will issue a plant certification
, or facility evaluation,
report
to the manufacturer when the department has determined that the manufacturer
has met the requirements for certification. A copy of the plant certification
report will also be forwarded to the third party inspection agency responsible
for in-plant inspections. The manufacturer and third party inspection agency
will be responsible for ensuring that all conditions of certification as outlined
in the certification report are met
. The manufacturer must keep a copy
of this report in their permanent records. The [
plant certification
]
report will contain
, at a minimum, the following information
:
(1)
the name and address of the manufacturer;
(2)
the names and titles of personnel performing the certification
inspection;
(3)
the serial or identification numbers of the modules or
modular components inspected;
(4)
a list of nonconformances observed on the modules or modular
components inspected (with appropriate design package references) and corrective
action taken in each case;
(5)
a list of deviations from the approved compliance control
procedures (with section or manual references) observed during the certification
inspection with the corrective action taken in each case;
(6)
a list of conditions of certification
with which the manufacturer must comply to maintain the certification;
(7)
[
(6)
] the date of certification;
(8)
[
(7)
] the following statement: "This
report concludes that (name of agency), after evaluating the facility, certifies
that (name of factory) of (city) is capable of producing (industrialized housing
and buildings or modular components) in accordance with the approved building
system and compliance control manuals on file in the manufacturing facility
and in compliance with the requirements of the Texas Industrialized Building
Code Council"; and
(9)
[
(8)
] the signature of the inspection
team leader.
(d)
[
(c)
] If
the certification team
determines that
[
during the certification inspection
] the
manufacturer is [
judged
] not capable of
meeting the certification
requirements or that the manufacturer is unable to complete the certification
inspection requirements, then
[
building structures in compliance
with the approved design package and compliance control manual,
] the
certification team
[
agency
] will issue a
non-compliance
[
deviation
] report. The
non-compliance
[
deviation
] report will detail the specific areas in which the manufacturer
was found to be deficient and
may
[
will
] make recommendations
for improvement.
§70.70.Responsibilities of the Registrants--Manufacturer's Design Package.
(a) - (c)
(No change.)
(d)
On-site construction specifications or documentation. All
work to be performed on the building site shall be specifically identified
and distinguished from construction to be performed in the manufacturing facility,
e.g., assembly and connection of all modules, modular components, systems,
equipment, and appliances and attachment to the foundation system. The work
to be performed on-site shall be described in detail in documents (architectural
sheets, specifications, instructions, etc.) which shall be made available
to the builder for use at the site and provided as required for review and
inspection to the agency having local authority. The manufacturer shall provide
the design review agency on-site construction documentation which must, at
the minimum, contain the following:
(1)
critical load points for attachment of the house or
building or component to the foundation
[
foundation system designs
for all models in accordance with the applicable mandatory building code
];
(2)
details for module to module or modular component assembly
and connection;
(3)
minimum requirements
[
details
] for
connection and attachment of all modules and modular components to the foundation
system;
(4)
firestopping and draftstopping details;
(5)
details for fire exits, balconies, walkways, and other
site-built attachments;
(6)
exterior weatherproofing details;
(7)
details for thermal, condensation, decay, corrosion, and
insect protection;
(8)
electrical, mechanical, heating, cooling, and plumbing
system completion details;
(9)
electrical, mechanical, heating, cooling, and plumbing
system test procedures;
(10)
fire safety provisions; and
(11)
specifications and instructions for cooling equipment,
and complete information necessary to calculate sensible heat gain along with
information on the sizing of the air distribution system, if applicable, and
the R values of insulation in the ceiling, walls, and floors.
(e)
Foundation system designs.
A licensed professional engineer (or architect for one and two family dwellings
or buildings having one story and total floor area of 5,000 square feet or
less) shall design and seal the foundation systems for each industrialized
house or building. Review by a DRA is not needed or required. A municipality
that regulates the on-site construction or installation of industrialized
housing or buildings may require and review the foundation system design for
compliance with the mandatory building code. Foundation system designs shall
comply with the mandatory building code referenced in §70.100 and §70.101
and shall contain complete details for the construction and attachment of
the house or building on the foundation, including, but not limited to the
following:
(1)
address or area for which the foundation is
suitable;
(2)
minimum load specifications, including wind
loads, seismic design loads, soil bearing capacity, and if the foundation
is designed for expansive soils;
(3)
site preparation details;
(4)
material specifications;
(5)
requirements for corrosion resistance, protection
against decay, and termite resistance;
(6)
size, configuration, and depth below grade of
all footings, piers, and slabs including, but not limited to, details of concrete
reinforcement, spacing of footings and piers, capping of piers, and mortar
or concrete fill requirements for piers;
(7)
fastening requirements, including, but not limited
to, size, spacing, and corrosion resistance;
(8)
requirements for surface drainage; and
(9)
details for enclosure of the crawl space, including
details for ventilation and access.
(f)
[
(e)
] Unique on-site details. If
[
the typical foundation drawing in the on-site construction documentation
is not suitable for a specific site, or if the structure is only partially
constructed of modular components, or if
] the industrialized builder
will add unique on-site details,
or if the details provided by the manufacturer
for completing a house or building on site are incomplete or not suitable
for the installation site, then
a licensed Texas professional engineer
(or architect for one and two family dwellings or buildings having one story
and total floor area of 5,000 square feet or less) shall design and
seal the unique
[
stamp the unique foundation drawings or
]
on-site details and review by a DRA is not needed or required.
Unique
on-site details shall comply with the mandatory building code referenced in §70.100
and §70.101. A municipality that regulates the on-site construction or
installation of industrialized housing or buildings may require and review
the unique on-site details for compliance with the mandatory building code.
(g)
[
(f)
] Non-site specific buildings.
Whenever the manufacturer does not know, at the time of construction, where
the building is to be placed, in lieu of providing the site specific construction
details or typical site construction details as required in subsection (d)
of this section, the manufacturer may provide special conditions and/or limitations
on the placement of the building. These special conditions and/or limitations
will serve to alert the local building official of items, such as handicapped
accessibility and placement of the building on the property, which the local
building official may need to verify for conformance to the mandatory building
codes. Certain site-related details, such as module to module connections,
must still be provided by the manufacturer. It is the responsibility of the
DRA to verify that such site-related details are included in the manufacturer's
approved design package.
§70.73.Responsibilities of the Registrants--Building Site Inspections.
(a)
When the building site is within a municipality that has
a building inspection agency or department, the local building official will
inspect all on-site construction done at the site and the attachment of the
structure to the permanent foundation to assure completion and attachment
in accordance with the design package, the on-site construction documentation,
the foundation system design,
and any unique [
foundation system
or
] on-site
details.
[
detailed drawings.
]
(b)
When the building site is outside a municipality, or within
a municipality that has no building department or agency, a third party inspector
will perform the required inspections in accordance with this section and
the inspection procedures established by the Texas Industrialized Building
Code Council
to assure completion and attachment in accordance with the
design package, the on-site construction documentation, the foundation system
design, and any unique on-site details
. The on-site inspection is normally
accomplished in three phases: foundation inspection, set inspection, and final
inspection. The final inspection shall be completed within 180 days of the
start of construction. The department may grant an extension upon receipt
of a written request that demonstrates a justifiable cause.
(1)
Site inspections are
required for the first
installation of all industrialized housing and permanent industrialized buildings
installed outside the jurisdiction of a municipality. Exception: Site inspections
are
not required for the installation[
, on permanent foundations,
] of unoccupied industrialized buildings not open to the public
,
[
with a gross area of less than or equal to 400 square feet,
] such as communication equipment shelters, that are not also classified
as a hazardous occupancy by the mandatory building code.
(2)
Site inspections are required
for industrialized buildings that are designed to be moved from one commercial
site to another commercial site and that are installed outside the jurisdiction
of a municipality if the buildings are used as a school or place of religious
worship.
(3)
The builder, or installation permit holder,
is responsible for scheduling each phase of the inspection with the third
party inspector. Additional inspections will be scheduled as required for
larger structures and to correct discrepancies. The industrialized builder,
or installation permit holder, may utilize a different third party inspector
for different projects, but may not change the inspector for a project once
started without the written approval of the department. The inspector shall
provide the builder or permit holder a copy of the site inspection report,
shall keep a copy for a minimum of five years from the date of successful
completion of the final inspection, and make a copy of the inspection report
available to the department upon request. The report shall be on the form
and in the format required by the department and the Texas Industrialized
Building Code Council.
(c) - (e)
(No change.)
§70.75.Responsibilities of the Registrants--Permit/Owner Information.
(a)
The manufacturer shall provide the industrialized builder,
or a person who has obtained an installation permit in accordance with §70.20,
with the following information:
(1)
the name, Texas registration number, and address of the
manufacturer of the building;
(2)
the location of the decal(s) or insignia on the modules
or modular components;
(3)
a description of the location of the data plate and explanation
of the information thereon;
(4)
a set of approved plans, in accordance with §70.70,
as necessary to obtain a building permit
and as necessary to complete
construction of the house or building at the installation site. The documents
shall include critical load points for attachment of the house or building
to the foundation
;
(5)
the floor plan of the building and schematic drawings of
the plumbing, electrical, and heating/ventilation systems for the owner of
the building;
(6)
a completed signed copy of the energy compliance checklist
(reference subsection (c)(8)(C) of §70.70; and
(7)
the information required by §70.78(b).
(b)
The industrialized builder shall provide the purchaser
(owner)
or installation permit holder
of any industrialized house
or building the following information:
(1)
the name, Texas registration number, and address of the
manufacturer and industrialized builder;
(2)
a description of the location of the data plate and explanation
of the information thereon;
(3)
the floor plan of the building and schematic drawings of
the plumbing, electrical, and heating/ventilation systems;
(4)
a complete set of approved plans and specifications in
accordance with §70.70, including all records pertinent to alterations
of the house or building in accordance with §70.74;
(5)
a copy of the foundation system
design and any unique on-site details in accordance with §70.70;
(6)
[
(5)
] the location of the decal(s)
or insignia on the module or modular components;
(7)
[
(6)
] a site plan showing the on-site
location of all utilities and utility taps;
(8)
[
(7)
] a completed signed copy of
the energy compliance checklist (reference subsection (a)(6) of this section);
and
(9)
[
(8)
] the information required by §70.78(b).
(c)
The manufacturer must have written proof that the information
in subsection (a) of this section was delivered to the industrialized builder
or installation permit holder and keep this proof in the manufacturer's files
for a minimum of five years.
(d)
The builder must have written proof that the information
in subsection (b) of this section was delivered to the purchaser (owner)
or installation permit holder
and keep this proof in the industrialized
builder's files for a minimum of five years.
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 December 23, 2005.
TRD-200506098
William H. Kuntz, Jr.
Executive Director
Texas Department of Licensing and Regulation
Earliest possible date of adoption: February 5, 2006
For further information, please call: (512) 463-6208