TITLE 16.ECONOMIC REGULATION

Part 4. TEXAS DEPARTMENT OF LICENSING AND REGULATION

Chapter 70. INDUSTRIALIZED HOUSING AND BUILDINGS

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") adopts 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 industrialized housing and buildings, as published in the January 6, 2006, issue of the Texas Register (31 TexReg 10). These amendments are adopted without changes and will not be republished.

The amendments are necessary to implement statutory changes made by Senate Bill 443, 79th Legislature, Regular Session, which took effect September 1, 2005. The amendments also clarify and update requirements for manufacturers and builders of industrialized housing and buildings. These amendments were approved by the Industrialized Building Code Council on November 16, 2005.

The proposed new rules were published in the Texas Register on January 6, 2006 and the comments period closed on February 6, 2006.

The amendment to §70.10(a) removes language from the definition of "commercial structure" that excluded certain types of buildings. The substance of this language is moved to the list of exemptions in §70.30(a). The 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 recognize that industrialized builders may purchase industrialized housing and buildings for sale or lease to the public from either manufacturers or other industrialized builders.

The amendments to §70.20(5) require 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 amendments are to clarify that the rule encompasses a sale to another industrialized builder. The amendments also clarify that transfers to a manufacturer must 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 amendments to §70.30(a) add to the list of exemptions 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 amendments are necessary to implement statutory changes made by Senate Bill 443 to §1202.001 and §1202.003 of the Texas Occupations Code.

The amendment to §70.50(b) requires an industrialized builder to report to the Department when the builder sells or transfers a unit to another registered person. An amendment adds new subsection (e) requiring a manufacturer to report on its monthly report the disposition of units previously reported as shipped. The amendments are necessary to clarify that the rule encompasses a sale to another person and to assure that manufacturers report the disposition of repossessed units.

The amendments to §70.60 restate the purpose of a certification inspection, divide subsection (a) into two subsections (a) and (b), and re-letter existing subsections (b) and (c). The amendments also 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 amendments are necessary to provide a clearer understanding of the purpose of the certification inspection and the requirements to become certified.

The 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, rather than requiring the manufacturer to provide a foundation design. The amendments also require the manufacturer to provide minimum requirements for connection and attachment of all modules and modular components to the foundation system. The 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 specifying the minimum information required in a foundation system design. The 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 amendments concerning unique on-site details re-letter this provision 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 amendments are necessary since foundation requirements were added to new subsection (e), and the amendments are necessary to clarify that construction on-site must also comply with the mandatory building codes.

For consistency with changes to §70.70, the amendments to §70.73(a) require that industrialized housing and buildings sited within a municipality comply with the foundation system design and any unique on-site details. Similarly, the 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. Paragraphs (1) and (2) are added to §70.73(b) to indicate when site inspections are required outside the jurisdiction of a municipality. The new paragraphs are necessary to implement statutory changes made by Senate Bill 443 to §1202.203 of the Texas Occupations Code. Section 1202.203 now specifies that the Commission is to determine by rule if on-site inspections are required for industrialized buildings located outside a municipality.

The 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 building and that the approved plans shall include critical load points for attachment of the house or building to the foundation. This amendment is necessary to correlate with the amendments to §70.70 and to clarify the requirements for documentation provided to the industrialized builder or installation permit holder. The 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. These amendments, and a corresponding amendment to subsection (d), are necessary for consistency with the amendments to §70.70 and to assure that installation permit holders are also provided with necessary documentation.

The department drafted and distributed the proposed rules to persons internal and external to the agency. No comments were received in response to the proposed amendments.

The amendments are adopted under Texas Occupations Code, Chapters 51 and 1202, which authorizes the Commission to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department. In particular, the adopted rules implement provisions of Senate Bill 443, 79th Legislature, Regular Session.

The statutory provisions affected by the adoption are those set forth in Texas Occupations Code, Chapters 51 and 1202. No other statutes, articles, or codes are affected by the adoption. No other statutes, articles, or codes are affected by the adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on May 12, 2006.

TRD-200602658

William H. Kuntz, Jr.

Executive Director

Texas Department of Licensing and Regulation

Effective date: June 1, 2006

Proposal publication date: January 6, 2006

For further information, please call: (512) 463-6208