Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007 Page: 7,926
7777-8060 p. ; 28 cm.View a full description of this periodical.
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CHAPTER 303. REGISTRATION
SUBCHAPTER A. REGISTRATION OF
BUILDERS
10 TAC 303.10
The Texas Residential Construction Commission adopts new
303.10, relating to evaluation of a builder's relationship with a
homeowner without changes to the proposed text as published
in the August 24, 2007, issue of the Texas Register (32 TexReg
5258).
The new rule establishes a list of 15 factors that the commission
will evaluate in determining whether a person who contracts with
a homeowner to provide consulting, supervisory, or managerial
services related to the construction of a new home or a material
improvement to, or interior renovation of, an existing home, is a
builder under Title 16 of the Property Code and Chapter 303 of
the commission's rules.
The commission received one comment regarding the proposed
new rule from Ned Munoz on behalf of the Texas Association
of Builders ("TAB"). TAB cautioned the commission on possible
unintended consequences of the proposed new rule. While ac-
knowledging that the list of factors in the new rule is not exhaus-
tive, TAB states that it may be possible for unscrupulous persons
to take advantage of the detailed list of factors and craft their
actions and businesses in such a manner as to escape rightful
oversight by the commission. TAB suggests that, as an alter-
native to adopting the new rule, the commission could create a
guidance document instead of formal rules.
The commission acknowledges that some persons might try to
evade the registration requirements of Title 16 of the Property
Code by crafting their actions and businesses to avoid commis-
sion oversight. The new rule will put such persons on notice
of the factors that the commission considers relevant in deter-
mining whether a person who seeks to provide consulting, su-
pervisory, or managerial services to a homeowner in connection
with residential construction activities needs to be registered as a
builder. As TAB acknowledges, however, the list of factors in the
new rule is not exhaustive and the commission will remain free
to consider any other factor that is relevant in making the deter-
mination as to whether a person is a builder within the meaning
of Title 16 of the Property Code and Chapter 303 of the commis-
sion's rules.
The commission also believes that its adoption of the new rule,
as opposed to its creation of a set of guidelines only, is nec-
essary to put all persons on notice of the types of consulting,
supervisory, and management activities that require registration
as a builder with the commission. The new rule will clarify the
builder registration requirement for persons who wish to comply
with Title 16, and it will also enhance the commission's ability to
enforce the registration requirement and take disciplinary action
against persons who fail to register with the commission while
engaging in activities listed in the rule. For these reasons, the
commission respectfully declines to accept the TAB suggestion
that it not adopt the new rule and that it only create a guidance
document instead.
The new rule is adopted under Property Code 408.001, which
provides general authority for the commission to adopt rules nec-
essary for the implementation of Title 16 of the Property Code,
and under Chapter 416 of the Property Code, which requires
registration by the commission of persons who act as builders in
Texas.The new rule is adopted to implement Property Code 408.001
and Chapter 416.
No other statutes, articles, or codes are affected by the new rule.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of the Secretary of State on October 19,
2007.
TRD-200705002
Susan K. Durso
General Counsel
Texas Residential Construction Commission
Effective date: November 8, 2007
Proposal publication date: August 24, 2007
For further information, please call: (512) 463-2886
SUBCHAPTER B. REGISTRATION OF HOMES
10 TAC 303.100, 303.110, 303.120, 303.140, 303.150
The Texas Residential Construction Commission adopts amend-
ments to 303.100, 303.110, 303.120, 303.140, and 303.150,
relating to the registration of homes in the state of Texas as
provided for in Title 16, Property Code. Sections 303.100 and
303.110 are adopted with changes to the proposed text as pub-
lished in the August 24, 2007, issue of the Texas Register (32
TexReg 5259). Sections 303.120, 303.140, and 303.150 are
adopted without changes and will not be republished.
The amendments incorporate into the rules recent legislative
amendments to the agency's statute and agency policy. In ad-
dition, the amendments are part of a commission review of the
necessity of these rules under the requirements of Government
Code 2001.039, which requires each state agency to periodi-
cally review its rules.
The commission received no comments on the amendments to
10 TAC 303.100, 303.120, 303.140, and 303.150.
The commission received one comment and suggested change
to the proposed amendment to 10 TAC 303.110 from Ned
Munoz on behalf of the Texas Association of Builders ("TAB").
The commission adopts 303.110 with changes to the proposed
text as indicated by the discussion of TAB's comment as follows.
The changes do not affect any who were not affected by the
published text.
With regard to 10 TAC 303.110, relating to registration of
existing homes by a builder or remodeler, TAB requested that
the commission retain the proposed deletion of "transaction
governed by the Act" in order to clarify that only improvement
projects under the Act must be registered. The commission
accepts the suggestion in part, noting that "transaction governed
by the Act" is defined in 301.1 and describes those contracts
subject to the Act. However, the commission declines to accept
the suggested insertion of the word "improvement" because
303.110 refers only to those transactions governed by the Act
for projects on existing homes.
The amendments are adopted under Property Code 408.001,
which provides generally authority for the commission to adopt
rules necessary for the implementation of Title 16 and 426.003,32 TexReg 7926 November 2, 2007 Texas Register
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Texas. Secretary of State. Texas Register, Volume 32, Number 44, Pages 7777-8060, November 2, 2007, periodical, November 2, 2007; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth97421/m1/146/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.