Part 1. TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS
Subchapter A. GENERAL POLICIES AND PROCEDURES
The Texas Department of Housing and Community Affairs (Department) hereby adopts the repeal of §1.11, concerning development reporting; §1.13, concerning applicant compliance with laws prohibiting discrimination; and §1.14, concerning tenant selection, without changes to the proposal as published in the March 23, 2007, issue of the Texas Register (32 TexReg 1692).
The Department determined as part of a rule review that these sections more effectively belong in 10 TAC Chapter 60 (relating to Compliance Administration).
No comments were received concerning the adoption of the proposed repeal.
The repeal is adopted under Texas Government Code, Chapter 2306.
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 April 23, 2007.
TRD-200701529
Michael Gerber
Executive Director
Texas Department of Housing and Community Affairs
Effective date: May 13, 2007
Proposal publication date: March 23, 2007
For further information, please call: (512) 475-4595
Chapter 301. GENERAL PROVISIONS
The Texas Residential Construction Commission ("commission") adopts amendments to 10 TAC §301.1, concerning definitions used in construing agency rules promulgated to implement the Texas Residential Construction Commission Act ("Act"), Title 16, Property Code, without changes to the text as published in the February 23, 2007, issue of the Texas Register (32 TexReg 691). The adoption adds a definition for the term "builder in good standing".
The commission received no comments on the proposed amendment.
The amendment is adopted pursuant to Property Code §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code.
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 April 19, 2007.
TRD-200701490
Susan Durso
General Counsel
Texas Residential Construction Commission
Effective date: May 9, 2007
Proposal publication date: February 23, 2007
For further information, please call: (512) 475-0595
Subchapter C. REGISTRATION OF THIRD-PARTY INSPECTORS
The Texas Residential Construction Commission adopts amendments to 10 TAC §303.207, Subchapter C, setting forth the training requirements for third-party inspectors, without changes to the proposed text as published in the February 23, 2007, issue of the Texas Register (32 TexReg 694).
The amendments clarify that third-party inspector applicants must complete commission training or the commission will administratively withdraw the application. Further, the amendments clarify that third-party inspectors must maintain the eligibility requirements of their registration by completing the continuing education requirements of any license or certificate required for registration, such as continuing education requirements for licensed architects and engineers and the continuing education requirements for certification as a Code Combination Inspector by the International Code Council.
The amendment adopted hereby adds a new subsection that clearly states that initial training requirements must be completed or an application will be administratively withdrawn thirty days after notification of eligibility for the initial training and fees paid will be forfeited. Other new subsections state the requirements of maintaining continuing education and the need to show proof at the time of renewal and the consequences of failure to do so.
The commission received no comments on the proposed new sections.
The amendments are adopted pursuant to Property Code §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of Title 16, Property Code and Property Code §427.001.
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 April 19, 2007.
TRD-200701493
Susan Durso
General Counsel
Texas Residential Construction Commission
Effective date: May 9, 2007
Proposal publication date: February 23, 2007
For further information, please call: (512) 475-0595
The Texas Residential Construction Commission adopts new §303.268 of 10 TAC Chapter 303, Subchapter D, to prohibit third-party warranty companies from knowingly conducting business with unregistered builders and remodelers or builders or remodelers that are not in good standing with the commission.
The adoption includes changes to the proposed text that was published in the February 23, 2007, issue of the Texas Register (32 TexReg 695). The changes are the result of comments received.
The commission received comments from Greg Harwell, an attorney with Gardere, Wynne & Sewell, LLP, in Dallas, Texas. Mr. Harwell submitted the comments on behalf of himself as an individual. Mr. Harwell suggested that the commission add the word "knowingly" in order to make clear that a third-party warranty company that unknowingly entered into a contract for coverage with a builder or remodeler not properly registered with the commission would not be subject to disciplinary action. The point is well-taken and the commission accepted the suggested change by including the term "knowingly" in the new section. Mr. Harwell also suggested that the commission could provide further guidance by adding that a warranty company complies with the rules if it contacts the commission or visits the commission's web-site to confirm a person's status prior to entering or renewing a membership agreement. The commission agrees that Mr. Harwell's suggestion would provide guidance to those affected by the rule. Therefore, the commission has also adopted Mr. Harwell's second suggestion in principle.
The commission received a similar comment from Max Hoyt, President of Aces Builder's Warranty. However, Mr. Hoyt suggested that the commission send a notice to all registered warranty companies each time a builder or remodeler falls out of compliance with the commission requirements. The commission finds that Mr. Hoyt's suggestion would shift the burden of responsibility to the commission when the commission has no way of identifying those builders or remodelers who may be seeking coverage from a third-party warranty company. Since Mr. Hoyt's concerns are adequately addressed by the changes resulting from Mr. Harwell's comments, the commission declines to adopt Mr. Hoyt's suggestion.
The new section is adopted pursuant to Property Code §408.001, which provides rulemaking authority to the commission, and Property Code §430.008 and §430.009, which provide for the registration and obligations of third-party warranty companies.
No other statutes, articles, or codes are affected by the proposal.
§303.268.Conducting Business with Unregistered Builders/Remodelers Prohibited.
A commission-approved third-party warranty company shall not enter knowingly into any contract or agreement to provide warranty coverage pursuant to Property Code §430.009 or to act as a guarantor for a builder or a remodeler that is not properly registered or not in good standing with the commission. A commission-approved third party warranty company complies with this section if it contacts the commission or reviews the commission's web-site to confirm a person's status prior to entering or renewing a contract or agreement to provide warranty coverage.
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 April 19, 2007.
TRD-200701491
Susan Durso
General Counsel
Texas Residential Construction Commission
Effective date: May 9, 2007
Proposal publication date: February 23, 2007
For further information, please call: (512) 475-0595
Subchapter B. DISCIPLINARY PROCEEDINGS
The Texas Residential Construction Commission adopts amendments to §305.28 of 10 TAC Chapter 305, Subchapter B, regarding referral of matters to the State Office of Administrative Hearings (SOAH), without changes to the proposed text as published in the February 23, 2007, issue of the Texas Register (32 TexReg 696). The amendments provide that if the Executive Director believes that a registrant no longer meets the eligibility requirements or qualifications for registration, the Executive Director shall refer the matter to the SOAH. Additional changes adopted will improve the readability of the section.
The commission received no comments on the proposal.
The amendments are adopted pursuant to Property Code §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of title 16 of the Property Code, the commission's enabling act and the Administrative Procedure Act, Texas Government Code ch. 2001; Property Code §416.005 and §416.006 regarding eligibility requirements for individuals and business entities; Property Code §418.001 regarding agency disciplinary actions; and Property Code §430.008 regarding eligibility for third-party warranty companies.
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 April 19, 2007.
TRD-200701492
Susan Durso
General Counsel
Texas Residential Construction Commission
Effective date: May 9, 2007
Proposal publication date: February 23, 2007
For further information, please call: (512) 475-0595