TITLE 10. COMMUNITY DEVELOPMENT

Part 6. OFFICE OF RURAL COMMUNITY AFFAIRS

Chapter 255. TEXAS COMMUNITY DEVELOPMENT PROGRAM

Subchapter A. ALLOCATION OF PROGRAM FUNDS

10 TAC §255.7

The Office of Rural Community Affairs (ORCA) proposes amendments to §255.7, concerning the Texas Capital Fund.

The proposed amendments to §255.7 are made to revise certain scoring elements of the Main Street Program and Downtown Revitalization Program. The proposed amendment to §255.7(c) will provide for discretion to permit an applicant with an extenuating circumstance, causing a delay in timely filing of an application by the deadline, to be included in the grant consideration. This proposed amendment will apply to the Main Street Program and Downtown Revitalization Programs, as well as the Texas Capital Fund grants. The proposed amendment to §255.7(h) requires a single application to be submitted to the Texas Department of Agriculture (TDA) and that applications will be evaluated both by the Texas Historical Commission (THC) and TDA. The proposed amendment to §255.7(i) requires poverty information to be based on 2000 Census data and makes other changes to point values and scoring for the Main Street Program. The proposed amendment to §255.7(l) makes changes to point values and scoring for the Downtown Revitalization Program.

Charles (Charlie) S. Stone, Executive Director, has determined that for the first five-year period the proposed amendments are in effect there will be no fiscal implications for state or local government as a result of enforcing or administering the section, as amended.

Mr. Stone also has determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of enforcing the section will be the equitable allocation of CDBG non-entitlement area funds to eligible units of general local government in Texas. There will be no effect on small or large businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed.

Comments on the proposal may be submitted to Karl Young, Finance Programs Coordinator, Texas Department of Agriculture, P.O. Box 12847, Austin, Texas 78711. Comments must be received no later than 30 days from the date of publication of the proposed amendments in the Texas Register.

The amendments to §255.7 are proposed under the Texas Government Code §487.052, which provides the Office of Rural Community Affairs with the authority to adopt rules and administrative procedures to carry out the provisions of Chapter 487 of the Texas Government Code.

The Texas Administrative Code, Title 10, Part 6, Chapter 255, is affected by the proposal.

§255.7.Texas Capital Fund.

(a) - (b) (No change.)

(c) Application Dates. The TCF (except for the main street program and the downtown revitalization program) is available up to four times during the year, on a competitive basis, to eligible applicants statewide. Applications for the main street program and the downtown revitalization program are accepted annually. Applications will not be accepted after 5:00 p.m. on the final day of submission, without extenuating circumstances. The application deadline dates are included in the program guidelines.

(d) - (g) (No change.)

(h) Application process for the main street program. The application and selection procedures consist of the following steps:

(1) Each applicant must submit one [two] complete application [applications] to TDA [Texas Historical Commission (THC) ]. No changes to the application are allowed after the application deadline date, unless they are a result of TDA staff recommendations. Any change that occurs will only be considered through the amendment/modification process after the contract is signed.

(2) Upon receipt of the applications, staff from the Texas Historical Commission (THC) and TDA evaluate the [ THC evaluates ] applications based on the scoring criteria and rank [ranks] them in descending order.

(3) - (8) (No change.)

(i) Scoring criteria for the main street program. There is a minimum 25-point threshold requirement. Applications will be reviewed for feasibility and placed in descending order based on the scoring criteria. There is a total of 100 points possible.

(1) In the event of a tie score, the following tie breaker criteria will be used.

(A) The tying applications are ranked from lowest to highest based on the applicant's [most recently available] annual [county] poverty rate, using 2000 Census data [ as provided in Appendix A of the application]. Thus, preference is given to the applicant with the higher poverty rate.

(B) (No change.)

(2) Project Feasibility (maximum 45 [70] points). Measures the applicant's potential for a successful project. Each applicant must submit detailed and complete support documentation for each category. Compliance with the ten criteria for Main Street Recognition is required. First year Main Street Cities must receive prior approval from THC to apply and must submit the Main Street Criteria for Recognition Survey with the TCF application. The criteria include the following:

(A) Broad-based public support for the proposed project--(10 points). Show letters of support from the following:

(i) Score 2 points for one letter from the County Historical Commission (A letter of support from the County Historical Commission is required to receive any points in this category.)

(ii) Score 2 [10] points for letters from 75% or more of the businesses and/or property owners directly impacted by the proposed project within the designated Main Street district [ in the proposed Texas Capital Fund project area].

(iii) Score 2 points for providing a map indicating location of businesses that have responded with letters under clause (ii) of this subparagraph.

(iv) Score 2 points for a letter from the Historic Preservation Officer, if applicable, or Main Street Manager, describing how the project enhances the community's historic assets and historic preservations goals. This letter should also describe the preservation benefit to the Main Street project area.

(v) Score 2 points for a letter of support from the Economic Development Corporation and/or Chamber of Commerce.

(B) Infrastructure Project Plan--(20 [10] points). [Show the city's plan for dealing with an infrastructure project. Develop a plan for access to local business during the infrastructure project. Provide public notification to support the project.]

(i) Score 4 points for providing the city's plan for dealing with an infrastructure project, including a detailed description of how access will be provided to affected businesses during project construction. Score an additional 4 points if this project mitigation plan is signed by the City Engineer, City Manager, or the Mayor (total 8 points).

(ii) Score 5 points for providing a published newspaper article describing the proposed project. The article must include locations of the proposed improvements, proposed timeline for construction, a description of the proposed activities, and how business access will be addressed.

(iii) Score 7 points for providing a letter from the City Engineer or local designee describing all future infrastructure projects, based on 5-year plan, and their potential to have a direct impact to the proposed project and project area. Phased projects should be identified and provide the plan for the proposed phase, as well as for the project in its entirety.

[(C) ADA Compliance Goals--(10 points). Does the project address ADA accessibility issues? How will ADA issues be addressed in the project. If project does not address ADA compliance issues, is the Main Street District in compliance with Federal ADA standards. If the project does not address ADA compliance, no points will be awarded for this category. Partial points may be awarded depending upon the degree in which the project addresses ADA compliance issues.]

(C) [(D)] [Historic] Preservation Ethic [ and Preservation Impact--Main Street's Role] (15 [10 ] points). [Preservation is a major component of the THC's Main Street program. Officially designated cities are eligible for the Texas Capital Fund grant based on their inclusion in the Texas Main Street program. Points will be awarded if the applicant has successfully addressed the criteria as follows: if the applicant successfully addressed the issue of enhancing historic assets and/or historic preservation goals, up to 5 points may be awarded. If the applicant has demonstrated that they have a current historic preservation ordinance, up to 3 points may be awarded based upon the content of the ordinance. Up to 2 points may be awarded for historic preservation-related programs or incentives. The THC mission is "To protect and preserve the state's historic and prehistoric resources for the use, education, enjoyment and economic benefit of present and future generations." Therefore, in the interest of accomplishing our mission, please answer the following:]

(i) Score 2 points if there have been no historic building demolitions within your Main Street project area during the past five years, unless approved by the THC. If you have had any building demolitions in the past five years, what was the age of the building(s) that were demolished?

(ii) Score 4 points if the city has a current historic preservation ordinance. Please provide documentation.

(iii) Score 4 points if the city has design guidelines for the Main Street program or project area. Please provide documentation.

(iv) Score 3 points if the city has participated in other THC programs (e.g., CLG, VIP, and NRHP). (1 point award for participation in each program up to a maximum of 3 points).

(v) Score 2 points if the city has participated in other non-THC historic preservation-related programs or incentives? Please provide documentation of the individual programs. (1 point will be awarded for participation in each non-THC program up to a maximum of 2 points).

[(i) Describe how the proposed Texas Capital Fund project enhances your historic assets or historic preservation goals.]

[(ii) Does the city have a current historic preservation ordinance?]

[(iii) Does the city have any historic preservation related programs or incentives?]

[(iv) List any building demolitions within your Main Street project area during the past five years. If you had any building demolitions in the past five years, what was the age of the buildings that were demolished?]

[(E) State Enterprise Zone and Economic Development Consideration--(10 points) Four points will be awarded if the city has a nominated or active Enterprise Zone project. Three points will be awarded if the city has the economic development sales tax (4A, 4B or both). Three points may be awarded for other viable economic development programs the city offers in order to further realize its full economic development potential. Please document any other economic development programs and strategies that your city is engaged in.]

[(F) Community Size--(10 points). Score 5 points if the population of the city is 12,000 or less; score additional 5 points if the population is less than 4,000, using 2000 census data. City population figures are net of the population held in adult or juvenile correctional institutions, as shown by the 2000 census data.]

[(G) Main Street Program Participation--(5 points). Points are awarded on the applicant's continuous participation in the Main Street program as follows: For every two years of continuous participation in the Main Street program, the applicant will be awarded 1 point. Points will only be awarded for every two consecutive years and will not be broken into half points for increments other than two-year increments. If a city leaves the Main Street program and then returns at a later date, "continuous participation" will be calculated from the date that they returned to the program. Applicants will receive the maximum amount of points if they have participated in the program for 10 continuous years.]

[(H) Texas Capital Fund Grant Training--(5 points). Has a city representative attended a Texas Capital Fund Main Street Improvements grant training workshop? At least one training workshop is held prior to each application deadline. List the date attended and the location. If the city is retaining a paid consultant to prepare the application, a city representative will still be required to attend training in order to receive the points in the category.]

(3) Applicant (maximum 55 [30] points). There are five [three] applicant scoring categories each worth 5 to 20 [10] points.

(A) Minority Hiring (maximum 10 points). Measures applicant's hiring practices. Percentage of minorities presently employed by the applicant divided by the percentage of minority residents within the local community. [Score 10 points if the applicant's minority employment rate is equal to or greater than the applicant's community minority rate.]

(i) Score 2 points if this equals 80% or more;

(ii) Score 4 points if this equals 85% or more;

(iii) Score 6 points if this equals 90% or more;

(iv) Score 8 points if this equals 95% or more;

(v) Score 10 points if this equals 100% or more.

(B) Leverage/Match (maximum 10 points). A 10% cash match is required for the grant. Additional points will be given for additional matching funds. 10% additional match equals 5 points. 20% additional match equals 10 points. The additional match can be cash and in-kind.

(C) Economic Development Consideration--(10 points)

(i) Poverty Rate--Scored if the county annual rate, using 2000 Census data, is higher than the annual state rate, as follows: score 2 points if their county rate meets or exceeds the state average and score 4 points if this rate is 15% over the state average.

(ii) Score 3 points if the city has adopted the 4A, 4B, or both 4A and 4B economic development sales tax.

(iii) Score 3 points if the city has a Tax Increment Financing Zone, a Main Street low interest loan program, or a grant program that specifically impacts the Main Street district.

(D) Community Size--(5 points). Score 3 points if the population of the city is 12,000 or less; score additional 2 points if the population is less than 4,000, using 2000 census data. City population figures are net of the population held in adult or juvenile correctional institutions, and use 2000 census data.

(E) Main Street Program Participation--(20 points).

(i) Score 1 point for every two years of continuous participation in the THC Main Street program up to a maximum of 10 years and 5 points. Points will only be awarded for every two consecutive years and will not be broken into half points for increments other than two-year increments. If a city leaves the Main Street program and then returns at a later date, "continuous participation" will be calculated form the date that they returned to the program.

(ii) Score 15 points if a city official/employee has attended a Texas Capital Fund, Main Street Improvements grant training workshop. At least one training workshop is held prior to each application deadline. List the date attended and the location. If the city is retaining a paid consultant to write the grant application, a city representative will still be required to attend training in order to receive the points in this category.

[(C) Main Street Standing (maximum 10 points). If the Main Street program received National Recognition the prior year, 10 points will be awarded.]

(j) - (k) (No change.)

(l) Scoring criteria for the downtown revitalization program. There are a total of 100 points.

(1) (No change.)

(2) Maximum 100 points.

(A) - (B) (No change.)

[(C) Enterprise/Empowerment/Defense Zone (maximum 5 points). A project located in a state designated enterprise zone, federal enterprise community, federal empowerment zone, or defense zone receives these five points.]

(C) [(D)] Previous Contracts (Maximum 10 points). Award 5 points if the community has been awarded one contract in the current calendar year or preceding 2 calendar years. Award 10 points if the community has been awarded zero contracts in the current calendar year or the preceding 2 calendar years.

(D) [(E)] Community Population (maximum 10 points). Points are awarded to applying cities with populations of 5,050 or less, using 2000 census data. Score 5 points if the city is located in a county with a population of 35,000 or less; and score 5 additional points if the population of the city is less than 5,050. Community population figures are net of the population held in adult or juvenile correctional institutions, as shown by the 2000 census data.

(E) [(F)] Per Capita Income (maximum 10 points). Awarded to cities that have a per capita income below $19,617.

(F) [(G)] Leverage/Match (maximum 10 points). A 10% cash match is required for the grant. Additional points will be given for additional matching funds. 10% additional match equals 5 points. 20% additional match equals 10 points. The additional match can be cash and in-kind.

(G) [(H)] Minority Hiring (maximum 10 points). Measures applicant's hiring practices. Award 5 points if the city's minority employment rate is equal to or greater than the community minority percentages rate. Award 10 points if the city's minority employment rate is equal to or greater than 125% of the community minority percentage rate or in cities where the minority population is 80% or greater, the applicant must employ 95% minorities.

(H) Score 10 points if a city official/employee has attended a Texas Capital Fund Main Street Improvements and/or Downtown Revitalization Program application training workshop. At least one training workshop is held prior to the application deadline. List the date attended and the location. If the city is retaining a paid consultant to write the grant application, a city representative will still be required to attend training in order to receive the points in this category.

[(I) Commercial Support (maximum 10 points). Award 5 points for letters from 50% or more of the businesses in the Downtown Revitalization area. Award 10 points for letters from 75% of the businesses in the Downtown Revitalization area.]

(I) [(J) Sidewalks and ADA Compliance (15 [ 10] points). Points awarded if a minimum of 70% of the requested funds will be used for sidewalk and/or ADA compliance activities.

(m) (No change.)

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 May 5, 2008.

TRD-200802358

Charles (Charlie) S. Stone

Executive Director

Office of Rural Community Affairs

Earliest possible date of adoption: June 15, 2008

For further information, please call: (512) 936-6734


Part 7. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION

Chapter 303. REGISTRATION

Subchapter A. REGISTRATION OF BUILDERS

10 TAC §303.20

The Texas Residential Construction Commission ("commission") proposes new §303.20, which sets forth the requirements for continuing education for all registered builders and remodelers. The new section will implement changes to the commission's enabling Act by describing builder continuing education requirements, the procedure for fulfilling them, the process for education sponsors to seek a determination of course eligibility for credit and the obligations of the commission in that process.

Susan K. Durso, General Counsel for the commission, has determined that for each year of the first five year period that the proposed rule is in effect there will be a modest increase in expenditures or revenue for state government contemplated by House Bill 1038, an Act passed in the 80th Texas Legislature, Regular Session, and provided for in the state budget through additional personnel to implement this continuing education program. There will be no fiscal impact for local government as a result of enforcing or administering the section.

Ms. Durso 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 assurance that builders and remodelers in this state receive continuing education to stay abreast of changes in the industry.

Ms. Durso 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 the Administrative Procedure Act, §2001.022.

Ms. Durso has also determined that for each year of the first five-year period the proposed rule is in effect there will be an insignificant adverse economic impact on small business to the extent that maintaining the continuing education requirements may require the expenditure of funds. Continuing education for a participant in the residential construction industry is required by state law. However, the proposed section includes options for accruing some of the continuing education requirements through self-study and through participation in meetings of trade organizations, to which the small businesses are likely to belong. Therefore, to the extent possible, the commission has provided methods for registered builders and remodelers to obtain the requisite continuing education credits without a significant expenditure of funds.

Interested persons may send written comments regarding the new section to the Texas Residential Construction Commission, P.O. Box 13509, Austin, Texas 78711-3509. Comments regarding the proposed section will be accepted for 30 days following the date of publication in the Texas Register. Thereafter, the comments will not be considered as timely filed. Comments may also be submitted electronically to comments@trcc.state.tx.us. For comments submitted electronically, please include "Continuing Education Requirements" in the subject line. Comments submitted electronically to another address or with a different subject line may not be considered.

The new section is proposed 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 §416.012.

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

§303.20.Required Builder/Remodeler Continuing Education.

(a) A person registered under this subchapter (registrant) must earn at least five hours of eligible continuing education credit in each applicable reporting period as further described in subsections (e) and (f) of this section. A registrant can earn continuing education credit for educational, technical, ethical, or professional management activities related to the practice of residential construction, including:

(1) successfully completing or auditing a course sponsored by an institution of higher education, including a correspondence course;

(2) successfully completing a course sponsored by a professional or trade organization, including a correspondence course;

(3) attending a seminar, tutorial, short course, videotaped course, or televised course on the practice of residential construction;

(4) participating in an in-house course sponsored by a corporation or other business entity;

(5) teaching a course described by paragraphs (1) - (4) of this subsection;

(6) publishing an article, paper, or book on the practice of residential construction;

(7) making or attending a presentation on residential construction practices, including technical, ethical, or professional management activities related to the practice of residential construction made at a meeting of a residential or builder association or organization or writing a paper on such a topic for presentation at the meeting;

(8) participating in the business activities of a residential or builder association, including serving on a committee of the organization; and

(9) engaging in self-directed study of the practice of residential construction.

(b) Continuing education credit hours are computed based on actual time spent participating in an eligible course, program, or activity.

(c) The continuing education credit hours required per applicable reporting period under this section must include at least:

(1) one hour of ethics, which may not be earned through self-study; and

(2) two hours of education that address:

(A) limited statutory warranties;

(B) building and performance standards; and

(C) requirements of the International Residential Code as adopted under Property Code §430.001 and other statutes and rules that apply to builders Title 16 of the Property Code.

(d) A registrant may not satisfy more than:

(1) two credit hours of the five hour minimum continuing education requirement in a reporting period for engaging in self-directed study, which may be fulfilled by:

(A) reading materials and completing the course work specifically prepared for an accredited course without attending the course;

(B) reading substantive residential construction articles in recognized home builder publications;

(C) viewing videotapes or digital media produced for instruction of the residential construction industry;

(D) listening to audiotapes or digital media produced for instruction of the residential construction industry; and

(E) reading materials specifically designed to instruct professionals on the proper use and installation of materials designed for use in residential construction; and

(2) one credit hour of the five hour minimum continuing education requirement in a reporting period by participating in the activities of a residential or builder association, including serving on a committee of the organization as described by subsection (a)(8) of this section.

(e) A registrant that registers with the commission for the first time on or after September 1, 2007:

(1) must earn five hours of continuing education credit within twelve months of the date of the initial registration; and

(2) must earn an additional five hours of continuing education credit every five years thereafter to remain in good standing.

(f) A registrant that was registered with the commission before September 1, 2007 and whose certificate of registration was in good standing on September 1, 2007:

(1) must earn five hours of continuing education credit by August 31, 2012; and

(2) must earn an additional five hours of continuing education credit every five years thereafter to remain in good standing.

(g) Each registrant must timely show proof of completion of the required credit hours in order to renew its registration and to maintain its certificate of registration in good standing.

(1) A course sponsor's failure to timely submit a registrant's proof of attendance at an eligible continuing education course is not an excuse for the registrant's failure to timely report its compliance.

(2) Registrants who fail to comply timely with the minimum continuing education requirements in violation of this section shall be given a notice of the intent to impose a suspension of their certificate of registration or, if the deadline for compliance with the requirements of this section coincides with the registrant's registration renewal deadline, the application for renewal will be denied.

(A) The notice shall clearly state the reason for the action taken under paragraph (2) of this subsection and shall provide the registrant thirty days within which to come into compliance with the requirements of this section or to appeal the suspension or denial as stated in the notice.

(B) The notice will be sent to the registrant's official mailing address of record.

(h) Reinstatement of Registration Status.

(1) A registrant whose certificate of registration has been suspended for a violation of this section may seek reinstatement after completing the required continuing education hours for the compliance period by submitting a written request for reinstatement of its certificate of registration.

(2) A registrant whose application for renewal is denied under this section may file an application for late renewal with proof of compliance with this section pursuant to §303.19 of this chapter.

(3) Credit hours earned during the period of non-compliance may not also be reported for credit toward the minimum credit hours required during the next compliance period.

(4) A registrant that fails to timely renew or whose certificate of registration is suspended may not continue to act as a builder or remodeler until their registration has been restored to a status in good standing.

(i) Continuing Education Eligibility Review.

(1) A course, program or activity must be submitted to the commission for review and confirmation of eligibility for credit to fulfill the requirements of this section.

(2) A registrant or course sponsor may submit continuing education credit information to the commission.

(3) The burden of proof that a course, program or activity meets the requirements of this section rests with the sponsor or registrant that submits the request for eligibility review.

(4) Continuing education credit information must be submitted to the commission and may be submitted via:

(A) a commission-approved form with the information as specified in paragraph (7) of this subsection;

(B) if provided by the commission, an internet portal designated for such submission; or

(C) any other attendance submission format approved by the commission.

(5) A separate request is required for each course or program unless it is being repeated in exactly the same format on different dates and locations.

(6) A registrant may submit a request for credit under this section.

(A) For a course not reviewed for eligibility prior to the date of the course, a registrant may submit a request for credit by submitting a course review form, which must include the name of the course, the name of the course sponsor, a copy of the agenda, a the length of each presentation including a brief description of the materials, and if the course is presented by one or more instructors or speakers, a list of speakers and copy of each speaker's curriculum vitae, resume or other evidence of qualifications to teach the subject matter, and a commission approved self-certification of attendance for the requested number of credit hours.

(B)For courses previously reviewed by the commission, a registrant may submit within thirty days from the date the course was attended an attendance form issued by the program sponsor that includes the course name, builder name, builder number, attendee name, attendance date, and commission-assigned course number.

(C) To receive credit for activities related to participation in the activities of a residential or builder association under subsection (a)(8) of this section, the registrant shall submit to the commission written verification of participation on association letterhead from the president or executive officer of the association or its designee.

(7) In order for the commission to list a program or course on its website, a program sponsor must submit its request for review at least 30 days in advance of the course or program and shall:

(A) submit the request on a form provided by the commission;

(B) submit all information and supporting documentation requested on the form, including:

(i) a sample brochure, agenda or program outline that describes the content, identifies the instructors, lists the time devoted to each topic and shows each date and location at which the program will be offered;

(ii) a calculation of the total number of continuing education hour credit to be satisfied by attendance;

(iii) include a method of presentation;

(iv) if the materials will be presented by one or more instructors or speakers, a resume, curriculum vitae, or other evidence demonstrating the qualifications of the instructors or presenters presenting the material; and

(v) registration contact and registration fee information that includes the sponsor's name, telephone and website address.

(8) Ethics courses previously approved and offered by the Texas State Bar Association, a nationally recognized professional organization, or an accredited Texas institution of higher learning are deemed eligible for continuing education credit upon submission of a request for credit.

(j) Upon a determination of eligibility for credit of a course submitted by a course sponsor, the commission within ten business days will:

(1) issue course numbers;

(2) post course or program information and contact information to the commission website, if the course or program is publicly offered; and

(3) provide attendance sheets to the course sponsor.

(k) Credit shall not unreasonably be withheld once complete information for eligibility determination as required under this section is received by the commission.

(l) The commission will remove courses and programs listed on its website within 30 days of receipt of a written request from the course sponsor.

(m) Registrants may not carry forward continuing education credit hours in excess of the required five-hour minimum from one reporting period to the next.

(n) A registrant that is a not an individual must designate an individual to earn the continuing education credit hours required under this section by submitting the name of the designated individual to the commission's registration department on the form provided for submitting earned continuing education credit information.

(1) An individual designated by registrant under this subsection must be either the registrant's primary registered agent or an individual employee involved in on-site construction activities who is responsible for residential construction activities that take place at the residential construction job site, including:

(A) acting as a project manager, superintendent, or foreman;

(B) supervising construction crews or subcontractors;

(C) scheduling the work of construction crews or subcontractors;

(D) inspecting the construction work of crews or subcontractors; or

(E) inventorying and inspecting the delivery of construction materials to the job site; or

(F) serving as an in-house construction trainer.

(2) All required credit hours earned in a single reporting period must be earned by the individual designated under this subsection except as provided in paragraph (3) of this subsection or unless undue hardship or good cause is established pursuant to subsection (o) of this section.

(3) If a registrant's designee leaves the employment of the registrant or becomes employed by another registrant, hours of credit earned remain with the original registrant.

(4) If a registrant or a registrant's designee is also an individual designated to earn continuing education credits for Texas Star Builder membership, credits earned under this section can be used as continuing education credit hours to satisfy the requirements of §303.300 of this chapter.

(o) Any registrant that is unable to satisfy the minimum continuing education requirements of this section during any reporting period may request a finding of undue hardship or good cause for failure to comply.

(1) A registrant may seek an extension of time to complete the requirements of this section for failure to comply due to undue hardship caused by illness, medical disability, or other extraordinary or extenuating circumstances beyond the control of the registrant.

(A) A request for extension for undue hardship must be accompanied by substantiating third-party documentation.

(B) An extension for undue hardship will be granted for a period of ninety days, unless a greater extension is approved by the Executive Director.

(2) A registrant that was unable to comply with this section for good cause may submit a request for a waiver of compliance to the Executive Director.

(A) The burden is on the registrant to demonstrate that good cause exists for failure to comply.

(B) A waiver granted by the Executive Director is a final agency decision not subject to further administrative appeal.

(3) Good cause or undue hardship shall not include: financial hardship, lack of time due to professional or personal schedule, or lack of information concerning continuing education requirements.

(4) A course sponsor's failure to timely submit a registrant's proof of attendance is not an excuse for the registrant's failure to timely report its compliance.

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 April 28, 2008.

TRD-200802226

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: June 15, 2008

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


Chapter 304. WARRANTIES AND BUILDING AND PERFORMANCE STANDARDS

Subchapter B. PERFORMANCE STANDARDS FOR COMPONENTS OF A HOME SUBJECT TO A MINIMUM WARRANTY OF ONE YEAR FOR WORKMANSHIP AND MATERIALS

10 TAC §§304.10, 304.12, 304.14, 304.19, 304.20, 304.25, 304.28, 304.32

The Texas Residential Construction Commission ("commission") proposes amendments to §304.10, concerning the standard for flaking of plaster adhesive on concrete slabs; §304.12, concerning nail holes in drywalls; §304.14, concerning gaps in siding and joints on exterior trim; §304.19, concerning carpet seams; §304.20, concerning the evenness of hard flooring; §304.25, concerning interior trim joints; §304.28, concerning the delaminating of counter top materials; and §304.32 concerning yard grading and standing water after unusually heavy rainfall. The commission is proposing these amendments to better define the performance standard for components of a home subject to a minimum warranty of one year for workmanship and materials.

Susan K. Durso, General Counsel, has determined that for each year of the first five-year period that the amendments are 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 amendments are in effect the public will benefit from having more complete and clearer understanding of the performance standards.

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

Ms. Durso has also determined that for each year of the first five-year period the proposed amendments are in effect there will be no adverse economic effect on small businesses. Therefore, no regulatory flexibility analysis is necessary.

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 13509, Austin, Texas 78701-3509. The deadline for submission of comments is 30 days from the date of publication of the proposed amendments in the Texas Register . Comments received after that date will not be considered. Comments should be arranged in the manner consistent with the organization of the amendments. Comments may be submitted electronically to comments@trcc.state.tx.us. For comments submitted electronically, please include "Performance Standards" in the subject line with the chapter number. Comments submitted electronically that are sent to a different address or that do not have "Performance Standards" in the subject line may not be considered.

The amendments are proposed pursuant to Property Code §408.001, which provides general authority for the commission to adopt rules necessary for the implementation of the Act, and §430.001, which requires the commission to adopt building and performance standards for residential construction.

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

§304.10.Performance Standards for Foundations and Slabs.

(a) - (b) (No change.)

(c) Performance Standards for Exterior Concrete including Patios, Stem Walls, Driveways, Stairs or Walkways.

(1) - (11) (No change.)

(12) Plaster adhesive over concrete slab underpinning shall not flake off more than one square foot in one spot within 36 square inches or more than 3 feet over the entire surface of the home.

§304.12.Performance Standards for Drywall.

(a) - (f) (No change.)

(g) Nails or screws shall not be visible in a drywall surface from a distance of 6 feet under normal lighting conditions. If nails or screws are visible, the builder shall take such action as is necessary to bring the variance within the standard.

§304.14.Performance Standards for Exterior Siding and Trim.

(a) Performance Standards for Exterior Siding.

(1) (No change.)

(2) Siding shall not gap or bow. A siding end joint shall not have a gap that leaks or that equals or exceeds 1/4 of an inch in width. Siding end joint gaps shall be caulked. A bow in siding shall not equal or exceed 3/8 of an inch out of line in a 32-inch measurement. If siding has gaps or bows that exceed the standards stated in this paragraph, the builder shall take such action as is necessary to bring the variance within the standard.

(3) - (8) (No change.)

(b) Performance Standards for Exterior Trim.

(1) A joint between two trim pieces shall not have a separation that leaks or is [at the joint] equal to or exceeding 1/4 of an inch in width and all trim joints shall be caulked. If there is a separation at a trim joint that fails to comply with the standard stated in this paragraph, the builder shall take such action as is necessary to bring the variance within the standard.

(2) - (6) (No change.)

§304.19.Performance Standards for Interior Flooring.

(a) (No change.)

(b) Performance Standards for Carpet.

(1) (No change.)

(2) Carpet seams may be visible but shall be smooth without a gap or overlap. If the carpet fails to meet the standards stated in this paragraph, the builder shall take such action as is necessary to bring the variance within the standard.

(3) (No change.)

(c) - (e) (No change.)

§304.20.Performance Standards for Hard Surfaces, including Ceramic Tile, Flagstone, Marble, Granite, Slate, Quarry Tile, Finished Concrete or Other Hard Surfaces.

(a) Performance Standards for Hard Surfaces Generally.

(1) - (8) (No change.)

(9) Hard surface floors located in a living space that is not otherwise designed for drainage, shall not have pits, depressions, or unevenness that equals or exceeds 3/8 of an inch in any 32 inches.

(A) If a finished hard surface floor located in a living space fails to meet the standard stated in paragraph (1) of this subsection, the builder shall take such action as is necessary to bring the variance within the standard.

(B) Finished hard surface floors located in living spaces that are designed for drainage, such as a laundry room, are excepted from the standards stated in paragraph (1) of this subsection.

(b) - (c) (No change.)

§304.25.Performance Standards for Interior Trim.

(a) Performance Standards for Trim.

(1) An interior trim joint separation shall not equal or exceed 1/8 of an inch in width or shall not separate from adjacent surfaces equal to or in excess of 1/8 inch and all joints shall be caulked or puttied. If an interior trim joint fails to meet the standard stated in this paragraph, the builder shall take such action as is necessary to bring the variance within the standard.

(2) - (4) (No change.)

(b) (No change.)

(c) Performance Standard for Cabinet Doors. Cabinet doors shall open and close with reasonable ease. Cabinet doors shall be even and shall not warp more than 1/4 inch when measured from the face to the point of the furthermost point of the door or drawer front when closed. Some warping, cupping, bowing or twisting is normal caused by surface temperature and humidity changes.

§304.28.Performance Standards for Countertops and Backsplashes.

(a) Performance Standards for Countertops and Backsplashes Generally.

(1) - (5) (No change.)

(6) Counter and vanity top material should not delaminate. If a countertop fails to meet the standard stated in this paragraph, the builder will take such action as is necessary to bring the variance within the standard.

(b) (No change.)

§304.32.Performance Standards for Yard Grading.

(a) Yards shall have grades and swales that provide for proper drainage away from the home in accordance with the Code or other governmental regulations.

(1) (No change.)

(2) The homeowner shall maintain the drainage pattern and protect the grading contours from erosion, blockage, over-saturation or any other changes. The possibility of standing water, not immediately adjacent to the foundation but in the yard, after prolonged or an unusually heavy rainfall event should be anticipated by the homeowner.

(b) (No change.)

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 April 28, 2008.

TRD-200802225

Susan K. Durso

General Counsel

Texas Residential Construction Commission

Earliest possible date of adoption: June 15, 2008

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