TITLE 22. EXAMINING BOARDS

PART 8. TEXAS APPRAISER LICENSING AND CERTIFICATION BOARD

CHAPTER 157. RULES RELATING TO PRACTICE AND PROCEDURE

SUBCHAPTER B. CONTESTED CASE HEARINGS

22 TAC §157.11

The Texas Appraiser Licensing and Certification Board (TALCB) proposes an amendment to 22 TAC §157.11, Contested Cases; Entry of Appearance; Continuance. The proposed amendment deletes an erroneous reference to the statute relating to notice of hearing and conforms it to general provisions regarding contested cases for appraisal management companies.

Devon V. Bijansky, General Counsel, has determined that for the first five-year period the proposed amendment is in effect, there is no anticipated cost to the state or to units of local government as a result of enforcing or administering the amendment. There is no anticipated impact on local or state employment as a result of implementing the amendment. There is no anticipated economic impact on persons required to comply with the rule as amended. There is no anticipated economic impact on small businesses or micro-businesses as a result of implementing the amendment.

Ms. Bijansky has also determined that the anticipated public benefit as a result of this amendment is clarity and standardization through extension of existing procedural rules to appraisal management companies.

Comments on the proposed amendments may be submitted to Devon V. Bijansky, General Counsel, P.O. Box 12188, Austin, Texas 78711-2188 or to general.counsel@talcb.texas.gov.

The amendment is proposed under the Texas Occupations Code, §1103.151, Rules Relating to Certificates and Licenses, and §1104.051, Rules.

The statutes affected by this proposal are Texas Occupations Code, Chapters 1103 and 1104. No other statute, code, or article is affected by the proposed amendment.

§157.11.Contested Cases; Entry of Appearance; Continuance.

(a) When a contested case has been instituted, the respondent or the representative of the respondent shall enter an appearance not later than 20 days after the date of receipt of notice of hearing [as provided in Tex. Occ. Code §1103.506].

(b) For the purposes of this section, a contested case shall mean any action that is referred by the Board to the State Office of Administrative Hearings.

(c) For purposes of this section, an entry of appearance shall mean the filing of a written answer or other responsive pleading with the State Office of Administrative Hearings.

(d) The filing of an untimely appearance by a party, or entering an appearance at the contested case hearing entitles the Board to a continuance of the hearing in the contested case at the Board's discretion for such a reasonable period of time as determined by the administrative law judge, but not for a period of less than 20 days. For purposes of this section, an untimely appearance is an appearance not entered within 20 days of the date the respondent has received notice.

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 October 14, 2011.

TRD-201104368

Devon V. Bijansky

General Counsel

Texas Appraiser Licensing and Certification Board

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-3652


PART 17. TEXAS STATE BOARD OF PLUMBING EXAMINERS

CHAPTER 361. ADMINISTRATION

SUBCHAPTER A. GENERAL PROVISIONS

22 TAC §361.1

The Texas State Board of Plumbing Examiners (Board) proposes amendments to §361.1, which sets forth the definitions of certain terms and words used in the Plumbing License Law and Board Rules, including the definition of Responsible Master Plumber.

The amendments to §361.1 are proposed in response to amendments made to §1301.002(9-a)(E) and §1301.3576, as amended by House Bill (HB) 2376, 82nd Regular Legislative Session, which require a Master Plumber to present evidence, satisfactory to the Board, of successful completion of a training program approved or administered by the Board regarding the laws and rules applicable to the operation of a plumbing business in this state, before working as a Responsible Master Plumber. HB 2376 provides an exemption to the requirement for any Responsible Master Plumber who has a Certificate of Insurance on file with the Board on January 1, 2012, that is effective for that date.

The amendments to §361.1 essentially reflect the language in §1310.002(9-a)(E), as amended by HB 2376.

Economic Impact Statement and Regulatory Flexibility Analysis

Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing Examiners, has determined that for the first five-year period the rule amendments are in effect there will be no fiscal impact on state and local government, as a result of enforcement of the rule. Because the Board licenses only individuals and not businesses, there should be no significant fiscal impact to small businesses. Master Plumbers who are required to comply with the proposed rule amendments will be impacted by paying a one-time cost for obtaining the training. The rule does not regulate the amount that a Course Provider may charge for providing the training course.

Mr. Maxwell also has determined that for each year of the first five years the rule amendments are in effect the public benefit anticipated as a result of enforcing these rule amendments will be better protection for the consumer of plumbing services through Responsible Master Plumbers who receive awareness training in the laws and rules applicable to the operation of a plumbing business in this state.

Comments on the proposed rule amendments may be submitted within 30 days of publication of these proposed rule amendments in the Texas Register, to Lisa Hill, Interim Executive Director, Texas State Board of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200.

The amendments to §361.1 are proposed under and affect Title 8, Chapter 1301, Occupations Code ("Plumbing License Law" or "Law") as amended by HB 2376, the 82nd Legislature, Regular Session, §§1301.251, 1301.002(9-a), 1301.3576 and the rule it amends. Section 1301.251 requires the Board to adopt and enforce rules necessary to administer the Plumbing License Law. Section 1301.002(9-a) defines a Responsible Master Plumber as a person who has completed a training program as required by §1301.3576. Section 1301.3576 requires a Master Plumber to complete a training program applicable to the operation of a plumbing business in this state prior to working as a Responsible Master Plumber. The rule amendments are also proposed under Texas Government Code §2006.002, as amended by the 80th Legislature, HB 3430, which requires an agency to perform an Economic Impact Statement and Regulatory Flexibility Analysis if a proposed rule could have an adverse economic impact on small businesses.

No other statute, article or code is affected by these proposed amendments.

§361.1.Definitions.

The following words and terms, when used in this part, have the following meanings, unless the context clearly indicates otherwise:

(1) Act--The Plumbing License Law, Title 8, Chapter 1301, Occupations Code, as amended.

(2) Administrative Act--The Administrative Procedure Act, the Texas Government Code, §2001.001, et seq, as amended.

(3) Administrator--The Board-appointed executive director of all Board staff.

(4) Adopted Plumbing Code--A plumbing code, including a fuel gas code adopted by the Board or a political subdivision, including any city, town, village, municipality, public water system, municipal utility district, in compliance with §1301.255 and §1301.551 of the Plumbing License Law.

(5) Advisory Committee--A Board appointed committee subject to §1301.258 of the Plumbing License Law, §361.12 of the Board Rules [these rules] and Chapter 2110 of the Government Code, of which the primary function is to advise the Board.

(6) Appliance Connection--An appliance connection procedure using only a code approved appliance connector that does not require cutting into or altering the existing plumbing system.

(7) Applicant--An individual seeking to obtain a License, Registration or Endorsement.

(8) Board--The Texas State Board of Plumbing Examiners.

(9) Board Member--An individual appointed by the governor and confirmed by the senate to serve on the Board.

(10) Building Sewer--The part of the sanitary drainage system outside of the building, which extends from the end of the building drain to a public sewer, private sewer, private sewage disposal system, or other point of sewage disposal.

(11) Certificate of Insurance--A form submitted to the Board certifying that the Responsible Master Plumber carries insurance coverage as specified in §1301.522 of the Plumbing License Law and §367.3 of the Board Rules [this title (relating to Requirements for Plumbing Companies, Responsible Master Plumbers; Certificate of Insurance)].

(12) Chief Examiner--An employee of the Board who, under the direction of the Administrator, coordinates and supervises the activities of the Board examinations and registrations.

(13) Chief Field Representative--The Director of Enforcement who is an employee of the Board who meets the definition of "Field Representative" and, under the direction of the Executive Director, coordinates and supervises the activities of the Field Representatives.

(14) Cleanout--A fitting, other than a p-trap, approved by the adopted plumbing code and designed to be installed in a sanitary drainage system to allow easy access for cleaning the sanitary drainage system.

(15) Code-Approved Appliance Connector--A semi-rigid or flexible assembly of tube and fittings approved by the adopted plumbing code and designed for connecting an appliance to the existing plumbing system without cutting into or altering the existing plumbing system.

(16) Code Approved Existing Opening--For the purposes of drain cleaning activities described in §1301.002(3) of the Plumbing License Law, a code approved existing opening is any existing cleanout fitting, inlet of any p-trap or fixture, or vent terminating into the atmosphere that has been approved and installed in accordance with the adopted plumbing code.

(17) Complaint--A written charge alleging a violation of state law, Board rules or orders, local codes or ordinances, or standards of competency; or the presence of fraud, false information, or error in the attempt to obtain a License, Registration or Endorsement.

(18) Contested Case--A proceeding, including but not limited to rulemaking, licensing and registering, in which the agency determines the legal right, duties, and privileges of a party after allowing an opportunity for adjudicative hearing of the case.

(19) Continuing Professional Education--Board-approved courses/programs required for a licensee to renew his or her License, Registration and/or Endorsement.

(20) Direct Supervision--

(A) The on-the-job oversight and direction of a Registered Plumber's Apprentice performing plumbing work by a licensed plumber who is fulfilling his or her responsibility to the client and employer by ensuring the following:

(i) that the plumbing materials for the job are properly prepared prior to assembly according to the material manufacturers recommendations and the requirements of the adopted plumbing code; and

(ii) that the plumbing work for the job is properly installed to protect health and safety by meeting the requirements of the adopted plumbing code and all requirements of local and state ordinances, regulations and laws.

(B) The on-the-job oversight and direction by a licensed Plumbing Inspector of an individual training to qualify for the Plumbing Inspector Examination.

(C) For plumbing work performed only in the construction of a new one-family or two-family dwelling in an unincorporated area of the state, a Responsible Master Plumber is not required to provide for the continuous or uninterrupted on-the-job oversight of a Registered Plumber's Apprentice's work by a licensed plumber, however, the Responsible Master Plumber must:

(i) provide for the training and management of the Registered Plumber's Apprentice by a licensed plumber;

(ii) provide for the review and inspection of the Registered Plumber's Apprentice's work by a licensed plumber to ensure compliance with subparagraph (A)(i) and (ii) of this paragraph; and

(iii) upon request by the Board, provide the name and plumber's license number of the licensed plumber who is providing on-the-job training and management of the Registered Plumber's Apprentice and who is reviewing and inspecting the Registered Plumber's Apprentice's work on the job, or the name and plumber's license number of the licensed plumber who trained and managed the Registered Plumber's Apprentice and who reviewed and inspected the Registered Plumber's Apprentice's work on a job.

(21) Drain Cleaner--An individual who has completed at least 4,000 hours working under the supervision of a Responsible Master Plumber as a registered Drain Cleaner-Restricted Registrant, who has fulfilled the requirements of and is registered with the Board, and who installs cleanouts and removes and resets p-traps to eliminate obstructions in building drains and sewers.

(22) Drain Cleaner-Restricted Registrant--An individual who has worked as a registered Plumber's Apprentice under the supervision of a Responsible Master Plumber, who has fulfilled the requirements of and is registered with the Board, and who clears obstructions in sewer and drain lines through any code-approved existing opening.

(23) Endorsement--A certification issued by the Board in addition to the Master or Journeyman Plumber License.

(24) Field Representative--For the purposes of the Board Rules: [these sections,]

(A) "Field Representative" means an employee of the Board who is:

(i) knowledgeable of this Act and of municipal ordinances relating to plumbing;

(ii) qualified by experience and training in good plumbing practice and compliance with this Act;

(iii) designated by the Board to assist in the enforcement of this Act and rules adopted under this Act; and

(iv) licensed by the Board as a plumber.

(B) A field representative may:

(i) make on-site license and registration checks to determine compliance with this Act;

(ii) investigate consumer complaints filed under §1301.303 of the Plumbing License Law;

(iii) assist municipal plumbing inspectors in cooperative enforcement of this Act; and

(iv) issue citations as provided by §1301.502 of the Plumbing License Law.

(25) Journeyman Plumber--An individual licensed under this Act who has met the qualifications for registration as a Plumber's Apprentice or for licensure as a Tradesman Plumber-Limited Licensee, who has completed at least 8,000 hours working under the supervision of a Responsible Master Plumber, who supervises, engages in, or works at the actual installation, alteration, repair, service and renovating of plumbing, and who has successfully fulfilled the examinations and requirements of the Board.

(26) License--A document issued by the Board to certify that the named individual fulfilled the requirements of the Act and of the Board Rules [these rules ] to hold a license issued by the Board.

(27) Licensing and Registering--The process of granting, denying, renewing, revoking, or suspending a License, Registration or Endorsement.

(28) Maintenance Man or Maintenance Engineer--An employee, as opposed to an independent contractor, who performs plumbing maintenance work incidental to and in connection with other duties. "Incidental to and in connection with" includes the repair, maintenance and replacement of existing potable water piping, existing sanitary waste and vent piping, existing plumbing fixtures and existing water heaters. "Incidental to and in connection with" does not include cutting into fuel gas plumbing systems and the installation of gas fueled water heaters. An individual who erects, builds, or installs plumbing not already in existence may not be classified as a maintenance man or maintenance engineer. Plumbing work performed by a maintenance man or maintenance engineer is not exempt from state law and municipal rules and ordinances regarding plumbing codes, plumbing permits and plumbing inspections. Such maintenance individuals shall not engage in plumbing work for the general public.

(29) Master Plumber--An individual licensed under this Act who is skilled in the design, planning, superintending, and the practical installation, repair, and service of plumbing, who is knowledgeable about the codes, ordinances, or rules and regulations governing those matters, who alone, or through an individual or individuals under his supervision, performs plumbing work, and who has successfully fulfilled the examinations and requirements of the Board.

(30) Medical Gas Piping Installation Endorsement--A document entitling the holder of a Master or Journeyman Plumber License to install piping that is used solely to transport gases used for medical purposes including, but not limited to oxygen, nitrous oxide, medical air, nitrogen, medical vacuum.

(31) One Family Dwelling--A detached structure designed for the residence of a single family that does not have the characteristics of a multiple family dwelling, and is not primarily designed for transient guests or for providing services for rehabilitative, medical, or assisted living in connection with the occupancy of the structure.

(32) Party--Each person named or admitted in association with an action as a party.

(33) Paid Directly--As related to §1301.255(e) of the Plumbing License Law, "paid" and "directly" have the common meanings and "paid directly" means that compensation for plumbing inspections must be paid by the political subdivision to the individual Licensed Plumbing Inspector who performed the plumbing inspections or the plumbing inspection business which utilized the plumbing inspector to perform the inspections.

(34) Person--For the purposes of the Board [these ] Rules only, a person means an individual, partnership, corporation, limited liability company, association, governmental subdivision or public or private organization of any character other than an agency.

(35) Petitioner--A person asking the Board to adopt a rule.

(36) Plumber's Apprentice--Any individual other than a Master Plumber, Journeyman Plumber, or Tradesman Plumber-Limited Licensee who, as his or her principal occupation, is engaged in learning and assisting in the installation of plumbing, is registered by the Board, and works under the supervision of a licensed Responsible Master Plumber and the direct supervision of a licensed plumber.

(37) Plumbing--All piping, fixtures, appurtenances, and appliances, including disposal systems, drain or waste pipes, or any combination of these that: supply, distribute, circulate, recirculate, drain, or eliminate water, gas, medical gasses and vacuum, liquids, and sewage for all personal or domestic purposes in and about buildings where persons live, work, or assemble; connect the building on its outside with the source of water, gas, or other liquid supply, or combinations of these, on the premises, or the water main on public property; and carry waste water or sewage from or within a building to the sewer service lateral on public property or the disposal or septic terminal that holds private or domestic sewage. The installation, repair, service, maintenance, alteration, or renovation of all piping, fixtures, appurtenances, and appliances on premises where persons live, work, or assemble that supply gas, medical gasses and vacuum, water, liquids, or any combination of these, or dispose of waste water or sewage.

(38) Plumbing Company--A person, as defined in the Board Rules [these sections], who engages in the plumbing business.

(39) Plumbing Inspection--Any of the inspections required in §1301.255 and §1301.551 of the Plumbing License Law, including any check of pipes, faucets, tanks, valves, water heaters, plumbing fixtures and appliances by and through which a supply of water, gas, medical gasses or vacuum, or sewage is used or carried that is performed on behalf of any political subdivision, public water supply, municipal utility district, town, city or municipality to ensure compliance with the adopted plumbing and gas codes and ordinances regulating plumbing.

(40) Plumbing Inspector--Any [means any ] individual who is employed by a political subdivision or state agency, or who contracts as an independent contractor with a political subdivision or state agency, for the purpose of inspecting plumbing work and installations in connection with health and safety laws, ordinances, and plumbing and gas codes, who has no financial or advisory interests in any plumbing company, and who has successfully fulfilled the examinations and requirements of the Board.

(41) Pocket Card--A card issued by the Board which certifies that the holder has a Master Plumber License, Journeyman Plumber License, Tradesman Plumber-Limited License, Plumbing Inspector License, Residential Utilities Installer Registration, Drain Cleaner Registration, Drain Cleaner-Restricted Registration or a Plumber's Apprentice Registration.

(42) Political Subdivision--A political subdivision of the State of Texas that includes a:

(A) city;

(B) county;

(C) school district;

(D) junior college district;

(E) municipal utility district;

(F) levee improvement district;

(G) drainage district;

(H) irrigation district;

(I) water improvement district;

(J) water control improvement district;

(K) water control preservation district;

(L) freshwater supply district;

(M) navigation district;

(N) conservation and reclamation district;

(O) soil conservation district;

(P) communication district;

(Q) public health district;

(R) river authority; and

(S) any other governmental entity that:

(i) embraces a geographical area with a defined boundary;

(ii) exists for the purpose of discharging functions of government; and[;]

(iii) possesses authority for subordinate self government through officers selected by it.

(43) P-Trap--A fitting connected to the sanitary drainage system for the purpose of preventing the escape of sewer gasses from the sanitary drainage system and designed to be removed to allow for cleaning of the sanitary drainage system. For the purposes of drain cleaning activities described in §1301.002(2) of the Plumbing License Law, a p-trap includes any integral trap of a water closet, bidet, or urinal.

(44) Public Water System--A system for the provision to the public of water for human consumption through pipes or other constructed conveyances. Such a system must have at least 15 service connections or serve at least 25 individuals at least 60 days out of the year. Two or more systems with each having a potential to serve less than 15 connections or less than 25 individuals, but owned by the same person, firm, or corporation and located on adjacent land will be considered a public water system when the total potential service connections in the combined systems are 15 or greater or if the total number of individuals served by the combined systems total 25 or greater, at least 60 days out of the year. Without excluding other meanings of the terms "individual" or "served," an individual shall be deemed to be served by a water system if the individual lives in, uses as the individual's place of employment, or works in a place to which drinking water is supplied from the water system.

(45) Regularly Employed--Steadily, uniformly, or habitually working in an employer-employee relationship with a view of earning a livelihood, as opposed to working casually or occasionally.

(46) Residential Utilities Installer--An [means an ] individual who has completed at least 2,000 hours working under the supervision of a Responsible Master Plumber as a registered Plumber's Apprentice, who has fulfilled the requirements of and is registered with the Board, and who constructs and installs yard water service piping for one family or two family dwellings and building sewers.

(47) Respondent--A person charged in a complaint filed with the Board.

(48) Responsible Master Plumber--A person licensed as a Master Plumber who:

(A) allows the person's Master Plumber license to be used by only one plumbing company for the purpose of offering and performing plumbing work under the person's Master Plumber license;

(B) is authorized to obtain permits for plumbing work; assumes responsibility for plumbing work performed under the person's license; [and]

(C) has submitted a certificate of insurance as required by §1301.3576 of the Plumbing License Law and §367.3 of the Board Rules; and [this title.]

(D) has completed and submitted a certificate of completion of a training program as required by §1301.3576 of the Plumbing License Law and §363.13 of the Board Rules.

(49) Rule--An agency statement of general applicability that implements, interprets, or prescribes law or policy, or describes the procedure or practice requirements of the agency. The term includes the amendment or repeal of a prior rule but does not include statements concerning only the internal management or organization of the agency and not affecting private rights or procedures.

(50) Supervision--The general on-the-job or off-the-job oversight, direction and management of plumbing work and individuals performing plumbing work by a Responsible Master Plumber who is fulfilling his or her responsibility to the client and employer by ensuring the following:

(A) that the operations of the plumbing company that has secured his or her services meets the requirements of all applicable local and state ordinances, regulations and laws; and

(B) that the plumbing work performed under his or her License will protect health and safety by meeting the requirements of the adopted plumbing code and all requirements of local and state ordinances, regulations and laws.

(51) System--An interconnection between one or more public or private end users of water, gas, sewer, or disposal systems that could endanger public health if improperly installed.

(52) Tradesman Plumber-Limited Licensee--An [means an ] individual who has completed at least 4,000 hours working under the direct supervision of a Journeyman or Master Plumber as a registered Plumber's Apprentice, who has passed the required examination and fulfilled the other requirements of the Board, who constructs and installs plumbing for one family or two family dwellings under the supervision of a Responsible Master Plumber, and who has not met or attempted to meet the qualifications for a Journeyman Plumber License.

(53) Two Family Dwelling--A detached structure with separate means of egress designed for the residence of two families ("duplex") that does not have the characteristics of a multiple family dwelling and is not primarily designed for transient guests or for providing services for rehabilitative, medical, or assisted living in connection with the occupancy of the structure.

(54) Water Supply Protection Specialist--A Master or Journeyman Plumber who holds the Water Supply Protection Specialist Endorsement issued by the Board.

(55) Water Treatment--A business conducted under contract that requires experience in the analysis of water, including the ability to determine how to treat influent and effluent water, to alter or purify water, and to add or remove a mineral, chemical, or bacterial content or substance. The term also includes the installation and service of potable water treatment equipment in public or private water systems and making connections necessary to complete installation of a water treatment system.

(56) Work as a Master Plumber--To act as and assume the responsibilities of a Responsible Master Plumber, as defined in this section [these sections].

(57) Yard Water Service Piping--The building supply piping carrying potable water from the water meter or other source of water supply to the point of connection to the water distribution system at the building.

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 October 13, 2011.

TRD-201104348

Robert L. Maxwell

Executive Director

Texas State Board of Plumbing Examiners

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-5224


CHAPTER 363. EXAMINATIONS

22 TAC §363.6

The Texas State Board of Plumbing Examiners (Board) proposes amendments to §363.6, which sets forth procedures for examination applicants to request non-standard examination accommodations.

The proposed rule amendments are necessary to implement Senate Bill (SB) 867, 82nd Legislature, Regular Session, which requires occupational licensing agencies to adopt rules to ensure that examination applicants who have been diagnosed with dyslexia are provided reasonable examination accommodations.

The proposed amendments establish a procedure for examination applicants who have been diagnosed with dyslexia, or other condition which requires special needs, to request non-standard examination accommodations.

Economic Impact Statement and Regulatory Flexibility Analysis

Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing Examiners, has determined that for the first five-year period the rule amendments are in effect there will be no fiscal impact on state or local government, small businesses or persons who would be required to comply with the proposed rule amendments.

Mr. Maxwell also has determined that for each year of the first five years the rule amendments are in effect the public benefit anticipated as a result of enforcing these rule amendments will be to ensure that examination applicants who have been diagnosed with dyslexia, or other condition which require special needs, are provided reasonable examination accommodations.

Comments on the proposed rule amendments may be submitted within 30 days of publication of these proposed rule amendments in the Texas Register, to Lisa Hill, Interim Executive Director, Texas State Board of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200.

The amendments to §363.6 are proposed under and affect SB 867, 82nd Legislature, Regular Session, and Title 8, Chapter 1301, Texas Occupations Code ("Plumbing License Law" or "Law") as amended during the 82nd Legislature, Regular Session. SB 867 requires each occupational licensing agency to adopt rules to ensure that examination applicants who have been diagnosed with dyslexia are provided reasonable examination accommodations. Section 1301.251 of the Plumbing License Law requires the Board to adopt and enforce rules necessary to administer the Plumbing License Law. The rule amendments are also proposed under Texas Government Code §2006.002, as amended by the 80th Legislature, House Bill 3430, which requires an agency to perform an Economic Impact Statement and Regulatory Flexibility Analysis if a proposed rule could have an adverse economic impact on small businesses.

No other statute, article or code is affected by these proposed amendments.

§363.6.Non-Standard [Special] Examination Accommodations [Conditions].

[(a) The Board, in its discretion, may waive the requirement that an individual hold a Journeyman License for one year prior to eligibility for a Master License, or any examination or registration requirement not required by law, after consideration of a written request for an exemption due to hardship. The written request must fully detail why the requirement/s create a hardship. If applicable to the request, the individual requesting the waiver must complete the Application for Nonstandard Testing Accommodations and the Physician or Licensed Health Care Provider form. Generally, the Board may consider the waiver only if circumstances due to the withholding of the master license or examination would endanger the public health, safety, or welfare of the state.]

[(b) The Board may waive any licensing requirement not required by law after consideration of a written request from the holder of a current plumbing license from another state having license requirements substantially equivalent to those of this state. It is the responsibility of the requestor to provide documentation to prove that the requirements are substantially equivalent.]

(a) [(c)] The Board, on request, may provide reasonable non-standard examination [conduct examinations with special] accommodations for individuals who have a disability. All individuals who wish to take an examination with non-standard [special] accommodations must submit the Board's "Applicant Request for Non-Standard Examination Accommodations" and "Physician or Qualified Licensed Professional Recommendation for Non-Standard Examination Accommodations" forms to be used in the analysis to determine whether or not an Applicant qualifies for non-standard examination accommodations. [complete the Application for Non-Standard Testing Accommodations, including the Physician or Licensed Health Care Provider form.]

(b) Due to the duties and responsibilities of licensed plumbers and plumbing inspectors to protect the health and safety of the public, the Board shall not allow Examiners to provide oral versions of the written components of examinations.

(1) Examiners may give oral instructions and explanations to individuals taking an examination.

(2) Applicants who have been diagnosed by a physician or other qualified licensed professional as having a specific learning or reading disability, such as dyslexia, may request additional time to complete an examination, a separate examination area, or other reasonable accommodation.

(c) The Board shall reserve the right to make all final decisions regarding reasonable examination accommodations and it may require a consultation by experts for a second opinion, if it determines that it is necessary for a particular applicant.

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 October 13, 2011.

TRD-201104344

Robert L. Maxwell

Executive Director

Texas State Board of Plumbing Examiners

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-5224


22 TAC §363.11

The Texas State Board of Plumbing Examiners (Board) proposes amendments to §363.11, which sets forth the criteria for training programs which must be completed by a Master or Journeyman Plumber prior to obtaining an endorsement on a Master or Journeyman Plumber license.

The amendments to §363.11 are proposed, in part, in response to amendments made to §1301.3565 of the Plumbing License Law by House Bill (HB) 2376, 82nd Regular Legislative Session. HB 2376 prohibits any person from designing a multipurpose residential fire protection sprinkler system, unless the person holds a Master Plumber license with a Multipurpose Residential Fire Protection Sprinkler Specialist endorsement on the license. The amendments to §363.11 are also proposed under §1301.3565(f), which authorizes a Plumbing Inspector licensed by the Board who meets the requirements of the Board to inspect a multipurpose residential fire protection sprinkler system installation.

The proposed amendments to §363.11 require a licensed Plumbing Inspector to complete the Multipurpose Residential Fire Protection Sprinkler Specialist endorsement training program prior to qualifying to take the Multipurpose Residential Fire Protection Sprinkler System Inspector examination. A licensed Plumbing Inspector who successfully passes the examination may inspect multipurpose residential fire protection sprinkler system installations.

The proposed amendments to §363.11 also allow a person who holds a valid Master or Journeyman Plumber license issued by the Board and a valid RME-General or RME-Dwelling license issued by the State Fire Marshal's Office, Texas Department of Insurance, to qualify to take the Multipurpose Residential Fire Protection Sprinkler Specialist endorsement examination without completing the Multipurpose Residential Fire Protection Sprinkler Specialist Endorsement training program. The requirements to obtain a RME-General or RME-Dwelling license are substantial enough to negate the need to complete the training program when the applicant also holds a Master or Journeyman Plumber license.

Economic Impact Statement and Regulatory Flexibility Analysis

Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing Examiners, has determined that for the first five-year period the rule amendments are in effect there will be no mandated fiscal impact on state and local government, as a result of enforcement of the rule. Licensed Plumbing Inspectors who are required to comply with the proposed rule amendments will be impacted by paying a one-time cost for obtaining the training. The rule does not regulate the amount that a Course Provider may charge for providing the training course. Because the Board licenses only individuals and not businesses, there should be no significant fiscal impact to small businesses.

Mr. Maxwell also has determined that for each year of the first five years the rule amendments are in effect the public benefit anticipated as a result of enforcing these rule amendments will be better protection of public health and safety through better qualified Plumbing Inspectors who inspect multipurpose residential fire protection sprinkler system installations.

Comments on the proposed rule amendments may be submitted within 30 days of publication of these proposed rule amendments in the Texas Register, to Lisa Hill, Interim Executive Director, Texas State Board of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200.

The amendments to §363.11 are proposed under and affect Title 8, Chapter 1301, Occupations Code ("Plumbing License Law" or "Law") as amended by HB 2376, the 82nd Legislature, Regular Session, §1301.251, §1301.3565 and the rule it amends. Section 1301.251 requires the Board to adopt and enforce rules necessary to administer the Plumbing License Law. Section 1301.3565 authorizes a Plumbing Inspector licensed by the Board who meets the requirements of the Board to inspect a multipurpose residential fire protection sprinkler system installation. The rule amendments are also proposed under Texas Government Code §2006.002, as amended by the 80th Legislature, HB 3430, which requires an agency to perform an Economic Impact Statement and Regulatory Flexibility Analysis if a proposed rule could have an adverse economic impact on small businesses.

No other statute, article or code is affected by these proposed amendments.

§363.11.Endorsement Training Programs.

(a) General requirements for Course Providers and Course Instructors

(1) Any person who seeks to provide a training program as a prerequisite for qualifying to take an examination to obtain any endorsement issued by the Board may apply to the Board for approval as a Course Provider.

(2) Any person who seeks to provide instruction of such training programs must be employed by an approved Course Provider. He or she may apply to the Board through an approved Course Provider to be approved as a Course Instructor.

(A) Each Course Instructor must be:

(i) a licensed Journeyman or Master Plumber and hold the particular endorsement relevant to the training program that the Course Instructor will teach; or

(ii) a licensed Plumbing Inspector who has completed the training and examination requirements required to obtain the particular endorsement relevant to the training program that the Course Instructor will teach.

(B) Each Course Instructor will be required to successfully complete a Board approved instructor training program of 160 hours which meets the following criteria:

(i) 40 hours to provide the instructor with the basic educational techniques and instructional strategies necessary to plan and conduct effective training programs;

(ii) 40 hours to provide the instructor with the basic techniques and strategies necessary to analyze, select, develop, and organize instructional material for effective training programs;

(iii) 40 hours to provide the instructor with the basic principles, techniques, theories, and strategies to establish and maintain effective relationships with students, co-workers, and other personnel in the classroom, industry, and community; and

(iv) 40 hours to provide the instructor with the basic principles, techniques, theories, and strategies to communicate effectively with the use of instructional media.

(C) To maintain status as an approved Course Instructor of an endorsement training program, the Course Instructor shall undergo one of the instructor training programs required under subparagraph (B) of this paragraph every twelve (12) months such that the entire training (160 hours) is completed within four years.

(3) Course Providers and Course Instructors shall adhere to the instruction criteria approved by the Board in this section, and ensure that only students who receive the specified number of contact hours of instruction (excluding any time spent on breaks from instruction) receive credit for completing the training required by this section.

(4) The training required by this section may be provided in increments, as appropriate, and the Course Provider or Course Instructor shall provide a certificate of completion to the student, upon completion of the training.

(A) The certificate of completion shall state:

(i) the title of the training program related to the particular endorsement;

(ii) the names of the Course Provider and Course Instructor;

(iii) the name and license number of the student; and

(iv) the date that the instruction was completed.

(B) The Course Provider shall maintain a record of the information contained on each certificate of completion for at least two years.

(5) Each Course Provider shall notify the Board at least seven (7) days before conducting training programs or electronically post notice of the class schedule on the provider's website at least seven (7) days before conducting a class. The notice shall contain the date(s), time(s) and place(s) where the class(es) will occur.

(6) Each Course Provider shall perform self-monitoring to ensure compliance with this section and reporting as required by the Board.

(7) The Board may monitor endorsement training programs to ensure compliance with this section.

(8) Any failure on the part of a Course Provider or Course Instructor to abide by the requirements of this section may result in the denial, probation, suspension, or revocation of Board approval as a Course Provider or Course Instructor.

(b) Medical Gas Piping Installation Endorsement training programs

(1) Before a Journeyman or Master Plumber may qualify to take the Medical Gas Piping Installation endorsement examination, the applicant must complete a training program approved by the Board which pertains to subject matter applicable to the installation of medical gas piping systems. As a minimum, the training course shall be based on the standards contained in the latest edition of the National Fire Protection Association (NFPA) 99C Gas and Vacuum Systems.

(2) Course Providers shall provide lesson plans for Board approval. Approved Course Providers of medical gas training shall furnish a program consisting of a classroom presentation of course material, a test of the enrollee's comprehension of the matter, a shop demonstration of the proper brazing procedures by the Course Instructor, and the enrollee's final brazing evidence to the instructor of an accepted vertical and horizontal practice coupon.

(A) A minimum of twenty four (24) hours shall be assigned for the classroom presentation and testing.

(B) In addition, a minimum of four (4) hours shall be assigned to the brazing demonstrations. The student enrolled in medical gas training will have completed a minimum of eight hours of practice brazing coupons in an equipped shop. These coupons will be presented to the Course Instructor for grading.

(C) The aforementioned hours represent the minimum requirements only; additional time may be included in each segment of the program.

(c) Water Supply Protection Specialist Endorsement training programs

(1) Before a Journeyman or Master Plumber may qualify to take the Water Supply Protection Specialist endorsement examination, the applicant must complete a training program approved by the Board, which pertains to subject matter applicable to the protection of public and private potable water supplies, as required by the plumbing codes, laws and regulations of this state.

(2) Any person wishing to offer a Board approved training program in Water Supply Protection Specialist Endorsement to the public must submit a course outline, together with the number of hours of instruction, to the Board for approval.

(3) The Board may require resubmission for approval of any previously approved Water Supply Protection Specialist endorsement training program to ensure that the program meets current requirements of the plumbing codes, laws, and regulations of the state which pertain to the protection of public and private potable water supplies.

(d) Multipurpose Residential Fire Protection Sprinkler Specialist Endorsement training programs

(1) Before a Plumbing Inspector, Journeyman or Master Plumber may qualify to take the Multipurpose Residential Fire Protection Sprinkler System Inspector examination or Multipurpose Residential Fire Protection Sprinkler Specialist endorsement examination, the applicant must complete a training program which pertains to subject matter applicable to a multipurpose dwelling fire sprinkler system, as required by the National Fire Protection Association (NFPA) Standard 13D.

(2) The training program must incorporate the training criteria included in the American Society of Sanitary Engineering Series 7000, as it relates to plumbing-based residential fire protection systems installers for one and two family dwellings.

(3) The training program must be at least 24 hours in length, using the following minimum guidelines:

(A) 1 hour to review applicable standards, codes, and laws, including the Plumbing License Law, Board Rules and the fire sprinkler rules, 28 TAC §§34.700 et seq., and their integration and identifying the enforcing authorities;

(B) 4 hours to study definitions, to identify as a minimum the various types, specific parts, specific terminology and concepts of the system;

(C) 4 hours to learn the acceptable type, material, location, limitation and correct installation of equipment including but not limited to pipe, fittings, valves, types of sprinkler heads, supports, drains, test connections, automatic by-pass valve, smoke alarm devices, other appurtenances;

(D) 2 hours to learn the acceptable type, configuration, and material which may or may not be required for a water supply including but not limited to backflow preventers, shut off valves, water meters, water flow detectors, tamper switches, test connections, pressure gages, minimum pipe sizes, storage tanks, and wells including the ability to perform a water flow test of a city water supply;

(E) 8 hours to learn which rooms require sprinklers and the correct positioning of a sprinkler head based on its type, listing, temperature rating, and the building structure including but not limited to understanding the concepts of the area of coverage, spacing, distance from walls and ceilings, listing limitations, dead air pockets, manufacturer's requirements and obtaining knowledge of how structural features such as flat, sloped, pocket, or open joist ceilings, close proximity to heat sources and other obstructions such as ceiling fans, surface mounted lights, beams, and soffits may adversely influence the location of a sprinkler head;

(F) 3 hours to learn critical hydraulic concepts for the installer that may adversely affect the original design plan due to field construction changes including but not limited to remote area sprinkler operation, flow versus pressure, elevation pressure loss, sprinkler K-factors, fixture units, minimum pipe diameters, additional pipe lengths and understand which household water appliances affect or do not affect the sprinkler hydraulics/performance; and

(G) 2 hours to learn the required testing, maintenance and documentation including but not limited to the final inspection and tests normally required by the local fire official (AHJ), when permits, working plans, as-built plans or hydraulic calculations are required and who provides for the system maintenance and instructions.

(4) Any person who holds a valid Master or Journeyman Plumber license issued by the Board and a valid RME-General or RME-Dwelling license issued by the State Fire Marshal's Office, Texas Department of Insurance, is exempted from completing the Multipurpose Residential Fire Protection Sprinkler Specialist Endorsement training program described by this section prior to taking the Multipurpose Residential Fire Protection Sprinkler Specialist endorsement examination.

[(4) Prior to September 1, 2010, the Board may approve alternative training programs and temporary exemptions to Multipurpose Residential Fire Protection Sprinkler Specialist endorsement training program Course Instructors requirements for the purposes of implementing the Multipurpose Residential Fire Protection Sprinkler Specialist Endorsement training programs and qualifying initial Course Instructors.]

[(A) Any person wishing to apply to the Board for an exemption or alternate training under paragraph (2) of this subsection must provide the justification for the exemption or alternate training for consideration by the Board.]

[(B) Any exceptions and exemptions allowed under paragraph (2) of this subsection would expire on September 1, 2010 and all Course Instructors approved by the Board will be required to meet all requirements under this section.]

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 October 13, 2011.

TRD-201104345

Robert L. Maxwell

Executive Director

Texas State Board of Plumbing Examiners

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-5224


22 TAC §363.13

The Texas State Board of Plumbing Examiners (Board) proposes new §363.13, which sets forth the criteria and requirements for a training program for Master Plumbers who wish to become Responsible Master Plumbers.

The new §363.13 is proposed in response to amendments made to §1301.002(9-a)(E) and §1301.3576, by House Bill (HB) 2376, 82nd Regular Legislative Session, which require a Master Plumber to present evidence, satisfactory to the Board, of successful completion of a training program approved or administered by the Board regarding the laws and rules applicable to the operation of a plumbing business in this state, before working as a Responsible Master Plumber.

The new rule reflects an exemption from the requirements provided in HB 2376 for any Responsible Master Plumber who has a Certificate of Insurance on file with the Board on January 1, 2012, that is effective for that date.

The new rule sets forth the criteria for a minimum 24 hour training program to be provided by Course Providers who are approved by the Board to provide Continuing Professional Education, under Board rule §365.14. The criteria are general in nature, in order to provide certain flexibility within each subject to the Course Providers. The new rule also allows an approved Course Provider to utilize another government and/or education entity, such as the Small Business Administration, to provide the instruction through the Course Provider.

Economic Impact Statement and Regulatory Flexibility Analysis

Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing Examiners, has determined that for the first five-year period the new rule is in effect there will be no fiscal impact on state and local government, as a result of enforcement of the new rule. Because, the Board licenses only individuals and not businesses, there should be no significant fiscal impact to small businesses. Master Plumbers who are required to comply with the new rule will be impacted by paying a one-time cost for obtaining the training. The rule does not regulate the amount that a Course Provider may charge for providing the training course.

Mr. Maxwell also has determined that each year of the first five years the new rule is in effect the public benefit anticipated as a result of enforcing this rule will be better protection for the consumer of plumbing services through Responsible Master Plumbers who receive awareness training in the laws and rules applicable to the operation of a plumbing business in this state.

Comments on the proposed new rule may be submitted within 30 days of publication in the Texas Register, to Lisa Hill, Interim Executive Director, Texas State Board of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200.

The new §363.13 is proposed under and affects Title 8, Chapter 1301, Occupations Code ("Plumbing License Law" or "Law") as amended by HB 2376, the 82nd Legislature, Regular Session, §§1301.251, 1301.002(9-a), and 1301.3576. Section 1301.251 requires the Board to adopt and enforce rules necessary to administer the Plumbing License Law. Section 1301.002(9-a) defines a Responsible Master Plumber as a person who has completed a training program as required by §1301.3576. Section 1301.3576 requires a Master Plumber to complete a training program applicable to the operation of a plumbing business in this state prior to working as a Responsible Master Plumber. The new rule is also proposed under Texas Government Code §2006.002, as amended by the 80th Legislature, HB 3430, which requires an agency to perform an Economic Impact Statement and Regulatory Flexibility Analysis if a proposed rule could have an adverse economic impact on small businesses.

No other statute, article or code is affected by this proposed new rule.

§363.13.Training Program for Responsible Master Plumber Applicants.

(a) Before a Master Plumber acts as a Responsible Master Plumber, the Master Plumber must complete a Board approved training program which includes laws and rules applicable to the operation of a plumbing business in this state, as required by §1301.3576 of the Plumbing License Law.

(1) The requirements of this section do not apply to a Responsible Master Plumber who, on or before January 1, 2012, provides the Board with a Certificate of Insurance that meets the requirements of this Board Rule §367.3 (relating to Requirements for Plumbing Companies, Responsible Master Plumbers; Certificate of Insurance); and

(2) that is effective on January 1, 2012.

(b) The training program required under subsection (a) of this section, must be a minimum of 24 hours in length and include instruction in the following subjects applicable to the operation of a plumbing business in this state:

(1) finance;

(2) legal;

(3) local, state and federal rules and regulations;

(4) insurance/bonds, including workman's compensation insurance;

(5) Occupational Safety and Health Administration (OSHA) requirements awareness; and

(6) customer service.

(c) The Board will approve only Course Providers and Course Instructors who are approved to provide and instruct Continuing Professional Education (CPE) courses, under Board Rule §365.14 (relating to Continuing Professional Education Programs), to provide and instruct the classroom training required by this section, except that an approved Course Provider may utilize another government and/or education entity to provide the instruction through the approved Course Provider.

(d) Course Providers and Course Instructors may be approved to provide the classroom training required under this section without submitting a separate application in addition to the application required to be approved to provide and instruct CPE, under Board Rule §365.14 of this title.

(1) Any Course Provider or Course Instructor whose approval to provide or instruct CPE courses under Board Rule §365.14 is suspended or revoked for any reason, is not approved to provide or instruct the classroom training required under this section.

(2) Course Providers and Course Instructors shall adhere to the instruction criteria in subsections (a) and (b) of this section, and ensure that only Master Plumbers who receive the specified number of contact hours of instruction (excluding any time spent on breaks from instruction) receive credit for completing the training required by this section.

(3) Course Providers or Course instructors shall provide notice of intent to conduct training required by this section, in the same manner required by Board Rule §365.14(b)(10).

(4) Course Instructors shall abide by the same standards of conduct described in Board Rule §365.14(c), when providing the training required by this section.

(e) The training required by this section may be provided in increments, as appropriate, and the Course Provider or Course Instructor shall provide a certificate of completion to the Master Plumber for each increment completed.

(1) The certificate of completion shall state:

(A) the names of the Course Provider and Course Instructor;

(B) the name and license number of the Master Plumber;

(C) the specific instruction and number of hours completed; and

(D) the date that the increment of instruction was completed.

(2) The Course Provider shall maintain a record of the information contained on each certificate of completion for at least six years.

(f) Prior to the date that the Master Plumber begins acting as a Responsible Master Plumber, the Master Plumber shall submit to the Board:

(1) a certificate or certificates of completion of the training required by this section; and

(2) a Certificate of Insurance as required by Board Rule §367.3.

(g) Providing false certificates of completion or any other false information to the Board may result in disciplinary action, as provided by the Plumbing License Law, Board Rules or other laws of this state.

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 October 14, 2011.

TRD-201104352

Robert L. Maxwell

Executive Director

Texas State Board of Plumbing Examiners

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-5224


CHAPTER 365. LICENSING AND REGISTRATION

22 TAC §365.15

The Texas State Board of Plumbing Examiners (Board) proposes new §365.15, which sets forth alternative licensing procedures for military spouses.

The proposed new rule is necessary to implement Senate Bill (SB) 1733, 82nd Legislature, Regular Session, relating to the licensing of certain military spouses. SB 1733 amended Texas Occupations Code, Chapter 55, to require state agencies that issue occupational licenses to adopt rules to provide for the issuance of a license to an applicant who is the spouse of a person serving on active duty as a member of the armed forces of the United States. The applicant must either hold a current license issued by another state that has licensing requirements that are substantially equivalent to the requirements for the Texas license or within the five years preceding the application date held a license in Texas that expired while the applicant lived in another state for at least six months. The state agency rules must include provisions to allow for alternative demonstrations of competency to meet the requirements for obtaining a license. The bill also allows a state agency to issue a license by endorsement. The proposed rule is necessary to implement these new statutory requirements under Chapter 55.

Proposed new §365.15 establishes who qualifies to apply for a license under this section, states the requirements for applying for a license under this section, provides an explanation of what qualifies as the standard method of demonstrating competency to obtain a license, and lists the alternative methods for demonstrating competency to obtain a license issued by the Board under this section.

Economic Impact Statement and Regulatory Flexibility Analysis

Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing Examiners, has determined that for the first five-year period the new rule is in effect there will be no fiscal impact on state or local government, small businesses or persons who would be required to comply with the proposed new rule.

Mr. Maxwell also has determined that for each year of the first five years the new rule is in effect the public benefit anticipated as a result of enforcing this rule will be to provide a method for military spouses who qualify to demonstrate competency through alternative methods.

Comments on the proposed new rule may be submitted within 30 days of publication of this proposed new rule in the Texas Register, to Lisa Hill, Interim Executive Director, Texas State Board of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200.

The new §365.15 is proposed under and affects SB 1733, 82nd Legislature, Regular Session, and Title 8, Chapter 1301, Occupations Code ("Plumbing License Law" or "Law") as amended during the 82nd Legislature, Regular Session. SB 1733 requires each occupational licensing agency to adopt rules to provide for the issuance of a license to an applicant who is the spouse of a person serving on active duty as a member of the armed forces of the United States. Section 1301.251 of the Plumbing License Law requires the Board to adopt and enforce rules necessary to administer the Plumbing License Law. The new rule is also proposed under Texas Government Code §2006.002, as amended by the 80th Legislature, House Bill 3430, which requires an agency to perform an Economic Impact Statement and Regulatory Flexibility Analysis if a proposed rule could have an adverse economic impact on small businesses.

No other statute, article or code is affected by this proposed new rule.

§365.15.Alternative Licensing Procedures for Military Spouse.

(a) This section applies to an applicant who is the spouse of a person serving on active duty as a member of the armed forces of the United States.

(b) The department may issue a license to an applicant described under subsection (a) of this section who:

(1) holds a current license issued by another state that has licensing requirements that are substantially equivalent to the requirements for the license; or

(2) within the five years preceding the application date held the license in this state that expired while the applicant lived in another state for at least six months.

(c) The department may allow an applicant described under subsection (b) of this section to demonstrate competency by alternative methods in order to meet the requirements for obtaining a particular license issued by the department. For purposes of this section, the standard method of demonstrating competency is the specific exam, education, and/or experience required to obtain a particular license.

(d) In lieu of the standard method(s) of demonstrating competency for a particular license, and based on the applicant's circumstances, the alternative methods for demonstrating competency may include any combination of the following as determined by the department:

(1) education;

(2) continuing education;

(3) examinations (written and/or practical);

(4) letters of good standing;

(5) letters of recommendation;

(6) work experience; or

(7) other methods required by the executive director.

(e) The executive director may issue a license by endorsement in the same manner as the commission under Texas Occupations Code, §51.404 to an applicant described under subsection (b) of this section.

(f) The applicant described under subsection (b) of this section shall submit an application and proof of the requirements under this section and for that particular license on a form and in a manner prescribed by the department.

(g) The applicant described under subsection (b) of this section shall submit the applicable fee(s) required for that particular license.

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 October 13, 2011.

TRD-201104346

Robert L. Maxwell

Executive Director

Texas State Board of Plumbing Examiners

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-5224


CHAPTER 367. ENFORCEMENT

22 TAC §367.2

The Texas State Board of Plumbing Examiners (Board) proposes amendments to §367.2, which sets forth standards of conduct to which all licensees and registrants of the Board must comply.

The amendments to §367.2 are proposed under the Plumbing License Law, §1301.3565(f), which authorizes a Plumbing Inspector licensed by the Board who meets the requirements of the Board to inspect a multipurpose residential fire protection sprinkler system installation.

The proposed amendments to §367.2 require a licensed Plumbing Inspector to complete the Multipurpose Residential Fire Protection Sprinkler Specialist Endorsement training program and successfully pass the Multipurpose Residential Fire Protection Sprinkler System Inspector examination prior to inspecting multipurpose residential fire protection sprinkler system installations.

Economic Impact Statement and Regulatory Flexibility Analysis

Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing Examiners, has determined that for the first five-year period the rule amendments are in effect there will be no mandated fiscal impact on state and local government, as a result of enforcement of the rule. Licensed Plumbing Inspectors who are required to comply with the proposed rule amendments will be impacted by paying a one-time cost for obtaining the training. The rule does not regulate the amount that a Course Provider may charge for providing the training course. Because the Board licenses only individuals and not businesses, there should be no significant fiscal impact to small businesses.

Mr. Maxwell also has determined that for each year of the first five years the rule amendments are in effect the public benefit anticipated as a result of enforcing these rule amendments will be better protection of public health and safety through better qualified Plumbing Inspectors who inspect multipurpose residential fire protection sprinkler system installations.

Comments on the proposed rule amendments may be submitted within 30 days of publication of these proposed rule amendments in the Texas Register, to Lisa Hill, Interim Executive Director, Texas State Board of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200.

The amendments to §367.2 are proposed under and affect Title 8, Chapter 1301, Occupations Code ("Plumbing License Law" or "Law") as amended during the 82nd Legislature, Regular Session, §1301.251, §1301.3565 and the rule it amends. Section 1301.251 requires the Board to adopt and enforce rules necessary to administer the Plumbing License Law. Section 1301.3565 authorizes a Plumbing Inspector licensed by the Board who meets the requirements of the Board to inspect a multipurpose residential fire protection sprinkler system installation. The rule amendments are also proposed under Texas Government Code §2006.002, as amended by the 80th Legislature, House Bill 3430, which requires an agency to perform an Economic Impact Statement and Regulatory Flexibility Analysis if a proposed rule could have an adverse economic impact on small businesses.

No other statute, article or code is affected by these proposed amendments.

§367.2.Standards of Conduct.

(a) Offer to Perform Services. The Licensee and Registrant:

(1) shall accurately and truthfully represent to any prospective client or employer, his or her capabilities and qualifications to perform the services to be rendered;

(2) shall not offer to perform, nor perform, technical services for which he or she is not qualified by education or experience, without retaining the services of another who is so qualified; and

(3) shall not evade responsibility to a client or employer.

(b) Conflicts of Interest. The Licensee and Registrant:

(1) shall not agree to perform services if any significant financial or other interest exists that may be in conflict with:

(A) the obligation to render a faithful discharge of such services; or

(B) would impair independent judgment in rendering such services;

(2) shall withdraw from employment when it becomes apparent that it is not possible to faithfully discharge the duty and performance of services owed the client or employer, but then only upon reasonable notice to the client or employer; and

(3) shall not accept remuneration from any person other than the client or employer for a particular project, nor have any other financial interest in other service or phase of service to be provided for the project, unless the client or employer has full knowledge and so approves.

(c) Representations. The Licensee and Registrant:

(1) shall not indulge in advertising that is false, misleading, deceptive, or which does not clearly display the licensees' state license number;

(2) shall not misrepresent the amount or extent of prior education or experience to any employer or client, or to the Board;

(3) shall, when providing estimates for costs or completion times of a proposed project, represent to a prospective client or employer as accurately and truthfully as is reasonably possible the costs and completion time of the proposed project; and

(4) shall not hold out as being engaged in partnership or association with any person unless a partnership or association exists in fact.

(d) Compliance with Board Orders. The Licensee and Registrant shall comply fully with all Board Orders.

(e) Responsibilities of Plumbing Licensees and Registrants.

(1) Licensees and Registrants must abide by all laws and rules regulating plumbing, including the Standards of Conduct set forth in this section, within any geographic location in this state when performing or offering to perform plumbing work or plumbing inspections.

(2) In areas where no plumbing code is adopted one of the state approved codes shall be followed by the Licensee and Registrant.

(f) In addition to complying with the requirements of subsections (a) - (e) of this section, each Licensed Plumbing Inspector shall also comply with the following:

(1) A Plumbing Inspector shall not have any financial or advisory interest in any plumbing company.

(2) All compensation paid for a plumbing inspection shall be paid directly to the individual Licensed Plumbing Inspector or qualified plumbing inspection business by the political subdivision for which the plumbing inspection is performed.

(A) The political subdivision may determine the qualifications for the plumbing inspection business.

(B) The plumbing inspection business must utilize only licensed Plumbing Inspectors to perform plumbing inspections, as required by §§1301.002(8), 1301.255(e), 1301.351(b) and 1301.551(d) of the Act and the Board [these] Rules.

(C) Qualifications for plumbing inspectors shall be determined by the Board, as provided in the Act and the Board [these] Rules.

(3) A Plumbing Inspector shall not accept any compensation or anything of value from any contractor or owner whose work is being inspected by the Plumbing Inspector.

(4) Prior to the performance of any Plumbing Inspection, the Plumbing Inspector must have submitted to the Board written proof of employment or contract for the purposes of performing plumbing inspections by each political subdivision that the Plumbing Inspector is employed by, or under contract.

(5) A Plumbing Inspector may be employed by or contract with any political subdivision throughout the state and a Plumbing Inspector's authority to enforce the Act, Board Rules and local ordinances lies only within the jurisdiction of the political subdivision/s that the Plumbing Inspector is employed by or under contract.

(6) A Plumbing Inspector shall not, in any manner, represent or indicate that the Plumbing Inspector is employed by or a representative of the Board or the State of Texas unless, in fact, the Plumbing Inspector is employed by the Board or the State of Texas.

(7) Each Plumbing Inspector shall enforce the Plumbing License Law, Board Rules, and the adopted plumbing code within the Plumbing Inspector's jurisdiction. The enforcement shall be applied in a consistent and equitable manner to all persons within the Plumbing Inspector's jurisdiction.

(8) Prior to performing an inspection of a multipurpose residential fire protection sprinkler system installation, a Plumbing Inspector must:

(A) complete the Multipurpose Residential Fire Protection Sprinkler Specialist Endorsement training program; and

(B) successfully pass the Multipurpose Residential Fire Protection Sprinkler System Inspector examination.

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 October 13, 2011.

TRD-201104347

Robert L. Maxwell

Executive Director

Texas State Board of Plumbing Examiners

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-5224


22 TAC §367.3

The Texas State Board of Plumbing Examiners (Board) proposes amendments to §367.3, which sets forth requirements Responsible Master Plumbers must comply with when allowing plumbing work to be performed under their Master Plumber license.

The amendments to §367.3 are proposed, in part, in response to amendments made to §1301.002(9-a)(E) and §1301.3576, by House Bill (HB) 2376, 82nd Regular Legislative Session, which require a Master Plumber to present evidence, satisfactory to the Board, of successful completion of a training program approved or administered by the Board regarding the laws and rules applicable to the operation of a plumbing business in this state, before working as a Responsible Master Plumber.

The amendments reflect an exemption from the Master Plumber training requirements provided in HB 2376 for any Responsible Master Plumber who has a Certificate of Insurance on file with the Board on January 1, 2012, that is effective for that date.

The amendments to §367.3 are also proposed in part, in response to amendments made to §1301.3565 of the Plumbing License Law by HB 2376, 82nd Regular Legislative Session. HB 2376 prohibits any person from designing a multipurpose residential fire protection sprinkler system, unless the person holds a Master Plumber license with a Multipurpose Residential Fire Protection Sprinkler Specialist endorsement on the license. The amendments require that a Master Plumber with a Multipurpose Residential Fire Protection Sprinkler Specialist endorsement who designs a multipurpose residential fire protection sprinkler system to obtain a seal and affix the seal to designed plans. The amendments specify the design of the seal and use of the seal. The amendments also require the designer to sign and date the designed plans.

Economic Impact Statement and Regulatory Flexibility Analysis

Robert L. Maxwell, Executive Director of the Texas State Board of Plumbing Examiners, has determined that for the first five-year period the rule amendments are in effect there will be no fiscal impact on state and local government, as a result of enforcement of the rule. Because the Board licenses only individuals and not businesses, there should be no significant fiscal impact to small businesses. Master Plumbers who are required to comply with the proposed rule amendments will be impacted by paying a one-time cost for obtaining the training if they wish to become Responsible Master Plumbers. The rule does not regulate the amount that a Course Provider may charge for providing the training course. Master Plumbers with a Multipurpose Residential Fire Protection Sprinkler Specialist endorsement who wish to design multipurpose residential fire protection sprinkler systems will be impacted by the cost of purchasing a seal which must be affixed to designed plans. A seal may be purchased for less than $100.

Mr. Maxwell also has determined that each year of the first five years the rule amendments are in effect the public benefit anticipated as a result of enforcing these rule amendments will be better protection for the consumer of plumbing services through Responsible Master Plumbers who receive awareness training in the laws and rules applicable to the operation of a plumbing business in this state. The public's health and safety will also be better protected when the consumer may be assured that multipurpose residential fire protection sprinkler systems will be designed properly by qualified Master Plumbers with a Multipurpose Residential Fire Protection Sprinkler Specialist endorsement.

Comments on the proposed rule amendments may be submitted within 30 days of publication of these proposed rule amendments in the Texas Register, to Lisa Hill, Interim Executive Director, Texas State Board of Plumbing Examiners, 929 East 41st Street, P.O. Box 4200, Austin, Texas 78765-4200.

The amendments to §367.3 are proposed under and affect Title 8, Chapter 1301, Occupations Code ("Plumbing License Law" or "Law") as amended by HB 2376, the 82nd Legislature, Regular Session, §§1301.251, 1301.002(9-a), 1301.3576, 1301.3565 and the rule it amends. Section 1301.251 requires the Board to adopt and enforce rules necessary to administer the Plumbing License Law. Section 1301.002(9-a) defines a Responsible Master Plumber as a person who has completed a training program as required by §1301.3576. Section 1301.3576 requires a Master Plumber to complete a training program applicable to the operation of a plumbing business in this state prior to working as a Responsible Master Plumber. Section 1301.3565 requires a multipurpose residential fire protection sprinkler system to be designed only by a Master Plumber with a Multipurpose Residential Fire Protection Sprinkler Specialist endorsement. The amendments are also proposed under Texas Government Code §2006.002, as amended by the 80th Legislature, HB 3430, which requires an agency to perform an Economic Impact Statement and Regulatory Flexibility Analysis if a proposed rule could have an adverse economic impact on small businesses.

No other statute, article or code is affected by the proposed amendments.

§367.3.Requirements for Plumbing Companies, Responsible Master Plumbers; Certificate of Insurance.

(a) A company or person advertising or otherwise offering to perform plumbing or provide plumbing must secure the services of at least one Responsible Master Plumber holding a current Master Plumber license. When used in this chapter, Board forms, applications or other communication by the Board, the abbreviation "RMP" shall mean "Responsible Master Plumber."

(1) Only a company or person which has secured the services of a RMP as required by this section, may:

(A) advertise or otherwise offer or agree to perform plumbing or provide plumbing to the public; or

(B) contract or agree to perform plumbing or provide plumbing with the public.

(C) For the purposes of this section, "public" means any person other than RMPs or companies which have secured the services of RMPs.

(2) A RMP shall not allow any person, firm, company, or corporation to use his or her Master Plumber license for any purpose unless the Master Plumber is a bona fide employee of the person, firm, company, or corporation or is the owner of the firm, company, or corporation that will use the master plumber's license.

(3) A Master Plumber may act as the RMP for only one such person, company, firm, or corporation.

(4) The RMP shall be knowledgeable of and responsible for all permits, contracts, and agreements to perform plumbing work secured and plumbing performed under his or her Master Plumber license.

(5) All plumbing performed under the license of the RMP, other than that performed in accordance with §365.1 of this title (relating to License, Endorsement and Registration Categories; Description; Scope of Work Permitted) by a Drain Cleaner-Restricted Registrant, Drain Cleaner or Residential Utilities Installer, shall be under the on-the-job direct supervision of a licensed plumber who is under written contract with, a bona fide employee of, or the owner of the firm, company, or corporation using the RMP's license.

(A) A licensed plumber, whether as an employee or under contract as provided by this paragraph, may only perform plumbing under contracts or agreements to perform plumbing secured by the RMP.

(B) All vehicles used in conjunction with plumbing by an employee or a licensed plumber under contract, must be marked with the RMP's license number and company name, in the same manner as required in §367.4 of this chapter (relating to Display of License and Company Name).

(C) The RMP is subject to all requirements and responsibilities set forth by the Plumbing License Law and Board Rules, whether or not the plumbing was performed by an employee or a licensed plumber under contract.

(6) Prior to acting as a RMP as defined in this chapter, a Master Plumber shall furnish the Board with a certificate of insurance using a Certificate of Insurance form provided by the Board. The certificate of insurance must:

(A) be written by a company licensed to do business in this state;

(B) provide for commercial general liability insurance for the RMP for claims for property damage or bodily injury, regardless of whether the claim arises from a negligence claim or on a contract claim and shall include all types of plumbing that will be performed under the RMP's license, including, but not limited to:

(i) liquefied petroleum gas (LPG) plumbing;

(ii) medical gas plumbing; and

(iii) multipurpose residential fire protection sprinkler systems; and

(C) be in a coverage amount of not less than $300,000 for all claims arising in any one-year period;

(D) state the name and license number of the Master Plumber for whom the coverage is provided;

(E) state the name of the plumbing company for which the Master Plumber is acting as the RMP.

(7) Insurance coverage specified in paragraph (6) of this subsection [section], shall be maintained at all times during which a Master Plumber acts as a RMP.

(8) The Certificate of Insurance form expires on the date that the insurance coverage, specified in paragraph (6) of this subsection [section], expires.

(9) The RMP shall furnish the Board with a completed Certificate of Insurance form not later than 10 days after the expiration of the previously furnished Certificate of Insurance form.

(10) Prior to acting as a RMP as defined in this chapter, a Master Plumber shall furnish the Board with a certificate of completion of a training course required by §363.13 of the Board Rules (relating to Training Program for Responsible Master Plumber Applicants).

(A) This requirement for training does not apply to a Responsible Master Plumber who, on or before January 1, 2012, provides the Board with a Certificate of Insurance that meets the requirements of this section; and

(B) that is effective on January 1, 2012.

(11) [(10)] Each written proposal, invoice or contract for plumbing services by the licensed RMP shall contain the RMP's name, Master Plumber license number, the Board's name, mailing address and telephone number. The terms "proposal", "invoice" and "contract" includes documents used by a plumber or plumbing company to define the scope and cost of the work to be provided to the public. This would include items such as service invoices, billing invoices or any document which defines the services and cost of the services provided to the consumer. For the purposes of this section, the public need not sign the document for it to be considered a contract.

(12) [(11)] The RMP's Master Plumber license number must be clearly displayed or verbally stated in each advertisement for plumbing services, undertaken by the RMP or company specified in this subsection, regardless of the media in which the advertisement is delivered.

(A) For the purposes of this section, media types would include, but not be limited to:

(i) newspapers;

(ii) telephone directories;

(iii) printed handouts;

(iv) business cards;

(v) signs and billboards;

(vi) radio;

(vii) television; and

(viii) the Internet.

(B) For the purposes of this section, uniforms or other clothing is not considered advertisement media.

(13) [(12)] The RMP is responsible for the general on-the-job or off-the-job oversight, direction and management of plumbing work and individuals performing plumbing work to fulfill his or her responsibility to the client and employer by ensuring the following:

(A) that the operations of the plumbing company that has secured his or her services meets the requirements of all applicable local and state codes, ordinances, regulations and laws regulating plumbing; and

(B) that the plumbing work performed under the RMP's license will protect public health and safety by meeting the requirements of all applicable local and state codes, ordinances, regulations and laws regulating plumbing.

(b) A company or person offering to install pipe used solely to transport gases for medical purposes must first secure the services of at least one RMP that holds a current Master Plumber license that contains a current Medical Gas Installation endorsement issued by the Board to be responsible for the installation of all pipe used solely to transport gases for medical purposes installed by that company and permits required to install the piping.

(1) The RMP with the Medical Gas Installation endorsement shall be responsible for generally supervising any individuals involved in the installation of pipe used solely to transport gases for medical purposes installed by that company and ensuring that all medical gas pipe assembly, brazing, and installation of required pipe markings is performed only by a Licensed Plumber holding a current Medical Gas Installation endorsement issued by the Board.

(2) The relationship between the Master Plumber and the company or person using the RMP's license with the Medical Gas Installation endorsement must be as defined in subsection (a) of this section.

(c) A company or person offering to install a multipurpose residential fire protection sprinkler system must first secure the services of at least one RMP who holds a current Master Plumber license that contains a current Multipurpose Residential Fire Protection Sprinkler Specialist endorsement issued by the Board to be responsible for the installation of the multipurpose residential fire protection sprinkler system installed by the company or person.

(1) The relationship between the RMP who holds the Multipurpose Residential Fire Protection Sprinkler Specialist endorsement and the company or person using the RMP's license must be as defined in subsection (a) of this section.

(2) The RMP who holds the Multipurpose Residential Fire Protection Sprinkler Specialist endorsement shall be responsible for generally supervising any individuals involved in the installation of the multipurpose residential fire protection sprinkler system and ensuring:

(A) the system is installed by a licensed Journeyman or Master Plumber who holds a current Multipurpose Residential Fire Protection Sprinkler Specialist endorsement;

(B) any other person who assists in the installation of a multipurpose residential fire protection sprinkler system is registered or licensed by the Board and is assisting only under the direct supervision of the endorsement holder who is on the job installing the system;

(C) the system has been designed and planned in accordance with the requirements of the Plumbing License Law, §1301.3565, by a licensed Master Plumber who holds a current Multipurpose Residential Fire Protection Sprinkler Specialist endorsement [the State Fire Marshal's Office and the plans have been signed by a person who is responsible for the design of the system and is licensed by the State Fire Marshal's Office or as otherwise permitted, by a Texas Registered Professional Engineer]; and

(D) the system is installed, tested and inspected in accordance with the requirements of the latest edition of the National Fire Protection Association (NFPA) standard 13D, all applicable local and state ordinances, laws and rules regulating the installation of multipurpose residential fire protection sprinkler systems.

(3) Upon final completion of the installation, the RMP who holds a current Multipurpose Residential Fire Protection Sprinkler Specialist endorsement shall ensure:

(A) the owner of the system has been provided:

(i) documentation which provides the RMP's name, Master Plumber license number, company name and contact information;

(ii) a copy of the plans or drawings of the system, as installed; and

(iii) instructions for the operation, maintenance and care of the system, in accordance with the latest edition of NFPA standard 13D and the material manufacturers' recommendations; and

(B) a warning sign is displayed and affixed adjacent to the main shutoff valve, which, in 1/4 inch letters:

(i) identifies the RMP as the installer and provides the RMP's name, Master Plumber license number, company name and contact information;

(ii) states, "WARNING: The water system for this home is a multipurpose system which supplies water to fire sprinklers that require certain flows and pressures to fight a fire. Devices that restrict the flow or decrease the pressure or automatically shut off the water to the fire sprinkler system, such as water softeners, filtration systems, and automatic shutoff valves, shall not be added to this system without a review of the fire sprinkler system by a fire protection sprinkler specialist. DO NOT REMOVE THIS SIGN"; and

(iii) provides the Board's name and telephone number at the bottom of the sign.

(4) A Master Plumber who holds a Multipurpose Residential Fire Protection Sprinkler Specialist endorsement and designs a multipurpose residential fire protection sprinkler system must obtain a seal.

(A) The Master Plumber with the endorsement is responsible for the security of the seal.

(B) The required seal must be:

(i) circular in design; and

(ii) not less than one and one half inch in diameter;

(C) The seal must display:

(i) the words, "State of Texas" at the top of the seal;

(ii) the words, "Licensed Master Plumber" at the bottom of the seal; and

(iii) the name and Master Plumber license number of the Master Plumber with the endorsement horizontally within or through the circular seal.

(D) The seal must be clearly and legibly affixed to each original plan designed by the Master Plumber with the endorsement, and each copy of the plan.

(E) The Master Plumber with the endorsement must sign the plan below the affixed seal and apply the date that the plan was signed.

(F) Responsibility for ensuring that the designed system meets the requirements of the latest edition of the National Fire Protection Association (NFPA) standard 13D, all applicable local and state ordinances, laws and rules regulating the installation of multipurpose residential fire protection sprinkler systems is assigned to the Master Plumber with the endorsement who affixes the seal and signs the plan.

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 October 14, 2011.

TRD-201104353

Robert L. Maxwell

Executive Director

Texas State Board of Plumbing Examiners

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-5224


PART 23. TEXAS REAL ESTATE COMMISSION

CHAPTER 535. GENERAL PROVISIONS

SUBCHAPTER B. GENERAL PROVISIONS RELATING TO THE REQUIREMENTS OF LICENSURE

22 TAC §535.4

The Texas Real Estate Commission proposes amendments to 22 TAC §535.4, regarding License Required. The amendments are proposed to implement the relevant provisions of Senate Bill 747, 82nd Texas Legislature, Regular Session (2011). In relevant part, Senate Bill 747 amends the Texas Occupations Code Chapter 1101 to define a real estate broker to include a person who controls the acceptance or collection of rent from a resident of a single-family residential unit, and to require licensure as a broker for a business entity as defined in §1.002 of the Business Organizations Code which receives compensation on behalf of the licensee.

The amendment to §535.4(f) replaces an existing reference to a corporation or limited liability company to "business entity" to more closely track the text of the statute. The amendment to §535.4(g) defines the meaning of "controls the acceptance or deposit of rent" and "single family residential unit" for purposes of §1101.002(1)(A)(x) of the Act.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the section is in effect there will be no significant fiscal implications for the state or for units of local government as a result of enforcing or administering the section. There is no significant impact on small businesses, micro-businesses or local or state employment as a result of implementing the section. The anticipated economic cost to persons who are required to comply with the proposed section will be the cost of initial licensing and renewing a license.

Ms. DeHay also has determined that for each year of the first five years the section as proposed is in effect the public benefit anticipated as a result of enforcing the sections will be will be consistency between the Texas Occupations Code, Chapter 1101 and 22 TAC Chapter 535.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188. The deadline for comments is 30 days after publication in the Texas Register.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The statute affected by the amendments is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments.

§535.4.License Required.

(a) - (e) (No change.)

(f) A business entity [corporation or limited liability company] owned by a broker or salesperson which receives compensation on behalf of the licensee must be licensed as a broker under the Act.

(g) For purposes of §1101.002(1)(A)(x) of the Act:

(1) A person controls the acceptance or deposit of rent from a resident of a single-family residential real property unit and must be licensed under the Act if:

(A) the person has the authority to use the rent to pay for services related to management of the property; or

(B) the person has the authority to deposit the rent into a trust or bank account and sign checks or withdraw money from the account.

(2) A single-family residential unit includes a single family home or a unit in a condominium, co-operative, row-home or townhome. The term does not include a duplex, triplex or four-plex unless the units are owned as a condominium, cooperative, row-home or townhome.

[(g) Unless otherwise exempted by the Act, a person who manages real property or collects rentals for an owner of real property and also rents or leases the property for the owner for valuable consideration must be licensed.]

(h) - (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 October 13, 2011.

TRD-201104334

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-3092


SUBCHAPTER R. REAL ESTATE INSPECTORS

22 TAC §535.211

The Texas Real Estate Commission (TREC) proposes an amendment to §535.211, regarding Professional Liability Insurance, or Any Other Insurance that Provides Coverage for Violations of Subchapter G of Texas Occupations Code, Chapter 1102. The amendment updates the reference in subsection (c) to the current certificate of insurance form, REI COI-0.

Devon V. Bijansky, Deputy General Counsel, has determined that, for each year of the first five years that the amendment is in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the amendment as proposed, nor is there any anticipated impact on local or state employment.

Ms. Bijansky has also determined that, for each year of the first five years the amendment as proposed is in effect, the public benefit anticipated as a result of enforcing the amendment will be clarity and accuracy of the requirement that inspectors submit proof of insurance on the approved form. There is no anticipated economic cost to persons required to comply with the amendment. There is no anticipated impact on small businesses, micro-businesses, or local or state employment as a result of implementing the amendment.

Comments on the proposed amendment may be submitted to Devon V. Bijansky, Deputy General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendment is proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to make and enforce all rules and regulations necessary for the performance of its duties and to establish standards of conduct and ethics for its licensees in keeping with the purpose and intent of Chapter 1102 to ensure compliance with the provisions of the chapter.

The statutes affected by this proposal are Texas Occupations Code, Chapter 1102. No other statute, code, or article is affected by the proposed amendment.

§535.211.Professional Liability Insurance, or Any Other Insurance that Provides Coverage for Violations of Subchapter G of Texas Occupations Code, Chapter 1102.

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

(c) The applicant must provide proof of insurance on Certificate Insurance form REI COI-0 [8-0] signed by the applicant's insurance agent.

(d) - (f) (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 October 13, 2011.

TRD-201104335

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-3092


CHAPTER 537. PROFESSIONAL AGREEMENTS AND STANDARD CONTRACTS

22 TAC §§537.20 - 537.23, 537.26 - 537.28, 537.30 - 537.33, 537.35, 537.37, 537.39 - 537.41, 537.44 - 537.48, 537.51, 537.52

The Texas Real Estate Commission (TREC) proposes amendments to 22 TAC §537.20, concerning Standard Contract Form TREC No. 9-9; §537.21, concerning Standard Contract Form TREC No. 10-5; §537.22, concerning Standard Contract Form TREC No. 11-6; §537.23, concerning Standard Contract Form TREC No. 12-2; §537.26, concerning Standard Contract Form TREC No. 15-4; §537.27, concerning Standard Contract Form TREC No. 16-4; §537.28, concerning Standard Contract Form TREC No. 20-10; §537.30, concerning Standard Contract Form TREC No. 23-11; §537.31, concerning Standard Contract Form TREC No. 24-11; §537.32, concerning Standard Contract Form TREC No. 25-8; §537.33, concerning Standard Contract Form TREC No. 26-5; §537.35, concerning Standard Contract Form TREC No. 28-1; §537.37, concerning Standard Contract Form TREC No. 30-9; §537.39, concerning Standard Contract Form TREC No. 32-2; §537.40, concerning Standard Contract Form TREC No. 33-1; §537.41, concerning Standard Contract Form TREC No. 34-3; §537.44, concerning Standard Contract Form TREC No. 37-3; §537.45, concerning Standard Contract Form TREC No. 38-3; §537.46, concerning Standard Contract Form TREC No. 39-6; §537.47, concerning Standard Contract Form TREC No. 40-4; §537.48, concerning Standard Contract Form TREC No. 41-1; §537.51, concerning Standard Contract Form TREC No. 44-0; and §537.52, concerning Standard Contract Form TREC No. 45-0. The amendments propose to adopt by reference six revised contract forms and 17 assorted addenda for use by Texas real estate licensees.

Texas real estate licensees are generally required to use forms promulgated by TREC when negotiating contacts for the sale of real property. These forms are drafted by the Texas Real Estate Broker-Lawyer Committee, an advisory body consisting of six attorneys appointed by the President of the State Bar of Texas, six brokers appointed by TREC, and a public member appointed by the governor.

Amendments to all of the forms adopted by reference change the main telephone number and website address for TREC located in the box on the penultimate and/or last page of each of the forms. Unless specifically referenced below, such changes are the only changes made to the forms adopted by reference.

The amendment to §537.20 proposes to adopt by reference Standard Contract Form TREC No. 9-10, Unimproved Property Contract. The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that the transfer fee notice is new subparagraph 6.E.(9).

The amendment to §537.28 proposes to adopt by reference Standard Contract Form TREC No. 20-11, One to Four Family Residential Contract (Resale). Paragraph 6.B. is amended to add a sentence regarding the buyer's ability to terminate the contract if the commitment and exception documents are not delivered within the time required, which was deleted from paragraph 15; paragraph 6.D. is amended to add the phrase "by Buyer" to the sentence regarding waiver of Buyer's right to object to defects, exceptions or encumbrances to title; paragraph 6.E.(2) is amended to add additional disclosures required by amendments to §207.003, Property Code; new subparagraph 6.E.(8) adds a new statutory disclosure regarding private transfer fee obligations; paragraph 7.A. is amended to require a seller to have utilities turned on and keep them on while the contract is in effect. Paragraph 7.F. is amended to change a phrase regarding the buyer's remedies if the seller fails to complete agreed repairs and treatments prior to the closing date; the new text provides that the buyer may exercise remedies under paragraph 15 or extend the closing date up to 15 days. Paragraph 15 is amended to delete the sentence regarding seller's failure to make non-casualty repairs or deliver the commitment or survey. The sentence was moved to paragraph 6.B.

The amendment to §537.30 proposes to adopt by reference Standard Contract Form TREC No. 23-12, New Home Contract (Incomplete Construction). The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that there are no amendments to paragraphs 7.A. or 7.F.

The amendment to §537.31 proposes to adopt by reference Standard Contract Form TREC No. 24-12, New Home Contract (Completed Construction). The proposed revisions are the same as those proposed for TREC Form No. 20-11.

The amendment to §537.32 proposes to adopt by reference Standard Contract Form TREC No. 25-9, Farm and Ranch Contract. The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that paragraph 6.E.(2) is not amended.

The amendment to §537.37 proposes to adopt by reference Standard Contract Form TREC No. 30-10, Residential Condominium Contract (Resale). The proposed revisions are the same as those proposed for TREC Form No. 20-11, except that paragraph 6.E.(2) is not amended and the transfer fee notice is new subparagraph 6.D.(6).

The amendment to §537.44 proposes to adopt by Standard Contract Form TREC No. 37-4, Subdivision Information, Including Resale Certificate for Property Subject to Mandatory Membership in a Property Owners' Association. Paragraphs D, H, and I are amended to more closely track recent statutory changes to Chapter 207, Property Code.

The amendment to §537.46 proposes to adopt by Standard Contract Form TREC No. 39-7, Amendment to Contract. Paragraph (8) is changed to reference the correct title of the Third Party Financing Condition Addendum for Credit Approval.

Loretta R. DeHay, General Counsel, has determined that for the first five-year period the sections are in effect there will be no fiscal implications for the state or for units of local government as a result of enforcing or administering the sections. There is no anticipated impact on small businesses, micro-businesses or local or state employment as a result of implementing the sections. There is no anticipated economic cost to persons who are required to comply with the proposed sections, other than the costs of obtaining copies of the forms, which would be available at no charge through the TREC website.

Ms. DeHay also has determined that for each year of the first five years the sections as proposed are in effect the public benefit anticipated as a result of enforcing the sections will be the availability of current standard contract forms that, among other things, conform to new or recently revised statutory requirements.

Comments on the proposal may be submitted to Loretta R. DeHay, General Counsel, Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188.

The amendments are proposed under Texas Occupations Code, §1101.151, which authorizes the Texas Real Estate Commission to adopt and enforce rules necessary to administer Chapters 1101 and 1102; and to establish standards of conduct and ethics for its licensees to fulfill the purposes of Chapters 1101 and 1102 and ensure compliance with Chapters 1101 and 1102.

The statute affected by this proposal is Texas Occupations Code, Chapter 1101. No other statute, code or article is affected by the proposed amendments.

§537.20.Standard Contract Form TREC No. 9-10 [9-9].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 9-10 [9-9] approved by the Texas Real Estate Commission in 2012 [2011] for use in the sale of unimproved property where intended use is for one to four family residences. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.

§537.21.Standard Contract Form TREC No. 10-6 [10-5].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 10-6 [10-5] approved by the Texas Real Estate Commission in 2012 [2007] for use as an addendum concerning sale of other property by a buyer to be attached to promulgated forms of contracts. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [www.trec.state.tx.us].

§537.22.Standard Contract Form TREC No. 11-7 [11-6].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 11-7 [11-6] approved by the Texas Real Estate Commission in 2012 [2007] for use as an addendum to be attached to promulgated forms of contracts which are second or "back-up" contracts. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.23.Standard Contract Form TREC No. 12-3 [12-2].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 12-3 [12-2] approved by the Texas Real Estate Commission in 2012 [2007] for use as an addendum to be attached to promulgated forms of contracts where there is a Veterans Administration release of liability or restoration entitlement. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [www.trec.state.tx.us].

§537.26.Standard Contract Form TREC No. 15-5 [15-4].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 15-5 [15-4] approved by the Texas Real Estate Commission in 2012 [2006] for use as a residential lease when a seller temporarily occupies property after closing. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711, www.trec.texas.gov [www.trec.state.tx.us].

§537.27.Standard Contract Form TREC No. 16-5 [16-4].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 16-5 [16-4] approved by the Texas Real Estate Commission in 2012 [2006] for use as a residential lease when a buyer temporarily occupies property prior to closing. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711, www.trec.texas.gov [www.trec.state.tx.us].

§537.28.Standard Contract Form TREC No. 20-11 [20-10].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 20-11 [20-10] approved by the Texas Real Estate Commission in 2012 [2011] for use in the resale of residential real estate. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.

§537.30.Standard Contract Form TREC No. 23-12 [23-11].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 23-12 [23-11] approved by the Texas Real Estate Commission in 2012 [2011 ] for use in the sale of a new home where construction is incomplete. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.

§537.31.Standard Contract Form TREC No. 24-12 [24-11].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 24-12 [24-11] approved by the Texas Real Estate Commission in 2012 [2011] for use in the sale of a new home where construction is completed. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.

§537.32.Standard Contract Form TREC No. 25-9 [25-8].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 25-9 [25-8] approved by the Texas Real Estate Commission in 2012 [2011] for use in the sale of a farm or ranch. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.

§537.33.Standard Contract Form TREC No. 26-6 [26-5].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 26-6 [26-5] approved by the Texas Real Estate Commission in 2012 [2006] for use as an addendum concerning seller financing. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.35.Standard Contract Form TREC No. 28-2 [28-1].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 28-2 [28-1] approved by the Texas Real Estate Commission in 2012 [2007] for use as an addendum to be attached to promulgated forms of contracts where reports are to be obtained relating to environmental assessments, threatened or endangered species, or wetlands. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.37.Standard Contract Form TREC No. 30-10 [30-9].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 30-10 [30-9] approved by the Texas Real Estate Commission in 2012 [2011] for use in the resale of a residential condominium unit. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov.

§537.39.Standard Contract Form TREC No. 32-3 [32-2].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 32-3 [32-2] approved by the Texas Real Estate Commission in 2012 [2008] for use as a condominium resale certificate. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.40.Standard Contract Form TREC No. 33-2 [33-1].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 33-2 [33-1] approved by the Texas Real Estate Commission in 2012 [2007] for use as an addendum to be added to promulgated forms of contracts in the sale of property adjoining and sharing a common boundary with the tidally influenced submerged lands of the state. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.41.Standard Contract Form TREC No. 34-4 [34-3].

The Texas Real Estate Commission adopts by reference standard contract form, TREC No. 34-4 [34-3] approved by the Texas Real Estate Commission in 2012 [2008] for use as an addendum to be added to promulgated forms of contracts in the sale of property located seaward of the Gulf Intracoastal Waterway. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [www.trec.state.tx.us].

§537.44.Standard Contract Form TREC No. 37-4 [37-3].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 37-4 [37-3] approved by the Texas Real Estate Commission in 2012 [2008] for use as a resale certificate when the property is subject to mandatory membership in an [a property] owners' association. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [www.trec.state.tx.us].

§537.45.Standard Contract Form TREC No. 38-4 [38-3].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 38-4 [38-3] approved by the Texas Real Estate Commission in 2012 [2011] for use as a notice of termination of contract. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.46.Standard Contract Form TREC No. 39-7 [39-6].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 39-7 [39-6] approved by the Texas Real Estate Commission in 2012 [2006] for use as an amendment to promulgated forms of contracts. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.47.Standard Contract Form TREC No. 40-5 [40-4].

The Texas Real Estate Commission adopts by reference standard contract form, TREC No. 40-5 [40-4] approved by the Texas Real Estate Commission in 2012 [2010] for use as an addendum to be added to promulgated forms of contracts when there is a condition for third party financing. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [www.trec.state.tx.us].

§537.48.Standard Contract Form TREC No. 41-2 [41-1].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 41-2 [41-1] approved by the Texas Real Estate Commission in 2012 [2007] for use as an addendum to be added to promulgated forms of contracts when there is an assumption of a loan. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.51.Standard Contract Form TREC No. 44-1 [44-0].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 44-1 [44-0] approved by the Texas Real Estate Commission in 2012 [2008] for use as an addendum to be added to promulgated forms of contacts for the reservation of oil, gas, and other minerals. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [ www.trec.state.tx.us].

§537.52.Standard Contract Form TREC No. 45-1 [45-0].

The Texas Real Estate Commission adopts by reference standard contract form TREC No. 45-1 [45-0] approved by the Texas Real Estate Commission in 2012 [2008] for use as an addendum to be added to promulgated forms of contracts in the short sale of property. This document is published by and available from the Texas Real Estate Commission, P.O. Box 12188, Austin, Texas 78711-2188, www.trec.texas.gov [www.trec.state.tx.us].

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 October 13, 2011.

TRD-201104336

Loretta R. DeHay

General Counsel

Texas Real Estate Commission

Earliest possible date of adoption: November 27, 2011

For further information, please call: (512) 936-3092