CHAPTER 416. CERTIFICATE OF REGISTRATION
PROPERTY CODE
TITLE 16. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT
SUBTITLE C. BUILDER REGISTRATION
CHAPTER 416. CERTIFICATE OF REGISTRATION
Sec. 416.001. REGISTRATION REQUIRED. A person may not act as a
builder unless the person holds a certificate of registration
under this chapter.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 416.002. APPLICATION FOR CERTIFICATE. (a) An applicant
for an original or renewal certificate of registration must
submit an application on a form prescribed by the commission.
(b) Each applicant must disclose in the application whether the
applicant has:
(1) entered a plea of guilty or nolo contendere to a felony
charge or a misdemeanor involving moral turpitude; or
(2) been convicted of a felony or a misdemeanor involving moral
turpitude and the time for appeal has elapsed or the conviction
has been affirmed on appeal.
(c) Disclosure under Subsection (b) is required regardless of
whether an order granting the person community supervision
suspended the imposition of the sentence.
(d) The commission may, on receipt of an application, conduct a
criminal background check of the applicant or any person
responsible for the application. The commission may obtain
criminal history record information maintained by the Department
of Public Safety, the Federal Bureau of Investigation, or any
other local, state, or national governmental entity. Unless the
information is a public record at the time the commission obtains
the information under this subsection, the information is
confidential, and the commission may not release or disclose the
information to any person except under a court order or with the
permission of the applicant.
(e) Based on a commission investigation of an alleged violation
of Sections 418.001(a)(14)-(20), the commission may require an
applicant for renewal of a certificate of registration to
disclose to the commission every person with an ownership
interest in the applicant's business as a builder. This
subsection does not apply to a publicly traded company.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 18, eff. September 1, 2007.
Sec. 416.004. FEES. (a) The commission shall charge and
collect:
(1) a filing fee for an application for an original certificate
of registration that does not exceed $500;
(2) a fee for renewal of a certificate of registration that does
not exceed $300; and
(3) a late fee that does not exceed the amount of the fee due if
payment of a registration application or renewal fee due under
this title is late.
(b) The commission shall establish a fee schedule that takes
into consideration the unit volume or dollar volume of potential
applicants.
(c) All fees paid to the commission under this section are
nonrefundable.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 19, eff. September 1, 2007.
Sec. 416.005. GENERAL ELIGIBILITY REQUIREMENTS. A person may
not receive a certificate of registration under this chapter
unless:
(1) the person, at the time of the application:
(A) is at least 18 years of age; and
(B) is a citizen of the United States or a lawfully admitted
alien; and
(2) the commission is satisfied with the person's honesty,
trustworthiness, and integrity based on information supplied or
discovered in connection with the person's application.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 416.006. ADDITIONAL ELIGIBILITY REQUIREMENTS FOR BUSINESS
ENTITIES. (a) To be eligible for an original or renewal
certificate of registration under this chapter:
(1) a corporation must designate one of its officers as its
agent for the purposes of this chapter;
(2) a limited liability company must designate one of its
managers as its agent for the purposes of this chapter; and
(3) a partnership, limited partnership, or limited liability
partnership must designate one of its managing partners as its
agent for the purposes of this chapter.
(b) A corporation, limited liability company, partnership,
limited partnership, or limited liability partnership is not
eligible to be registered under this chapter and may not act as a
builder unless the entity's designated agent is individually
registered as a builder.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 416.007. ISSUANCE OF CERTIFICATE. (a) Not later than the
15th day after the date the commission receives an application
from an applicant who meets the requirements of this chapter, the
commission shall issue a certificate of registration to the
applicant.
(b) The certificate of registration remains in effect for the
period prescribed by the commission if the certificate holder
complies with this chapter and pays the appropriate renewal fees.
(c) The commission shall issue one certificate of registration
for each business entity registered under this chapter.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 416.008. DENIAL OF REGISTRATION. (a) If the commission
denies an application for an original certificate of registration
or a renewal application, the commission shall give written
notice to the applicant not later than the 15th day after the
date the commission receives the application.
(b) The applicant may appeal the denial of the application if,
on or before the 30th day after the date the applicant receives
notice under this section, the applicant files a written request
for a hearing before the commission.
(c) The commission shall:
(1) set a time and place for the hearing not later than the 30th
day after the date the commission receives the notice of the
appeal; and
(2) give notice of the hearing to the applicant before the 15th
day before the date of the hearing.
(d) The hearings officer may grant a motion for continuance of
the hearing on the request of the commission or either party.
(e) The hearing shall be held before a hearings officer
appointed by the commission. After the hearing, the hearings
officer shall enter an appropriate order.
(f) The commission shall adopt procedural rules under which a
decision by a hearings officer under this section is subject to
appeal to the commission.
(g) A hearing under this section is governed by Chapter 2001,
Government Code.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 20, eff. September 1, 2007.
Sec. 416.009. EXPIRATION OF CERTIFICATE. (a) The commission
may issue or renew a certificate of registration for a period
that does not exceed 24 months.
(b) The commission by rule may adopt a system under which
certificates of registration expire on several dates during the
year. The commission shall adjust the date for payment of renewal
fees accordingly.
(c) In a year in which the expiration date for a certificate of
registration is changed, the renewal fee payable shall be
prorated on a monthly basis so that the certificate holder pays
only that portion of the fee that is allocable to the number of
months during which the certificate of registration is valid. On
renewal of the certificate of registration on the new expiration
date, the total renewal fee is payable.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Sec. 416.010. OFFICE LOCATION; CHANGE OF ADDRESS; ASSUMED NAMES.
(a) A builder shall maintain a fixed office location in this
state. The address of the builder's principal place of business
must be designated on the certificate of registration.
(b) Not later than the 30th day after the date a builder moves
from the address designated on the certificate of registration,
the builder shall submit an application, accompanied by the
appropriate fee, for a certificate of registration that
designates the new location of the builder's principal place of
business. The commission shall issue a certificate of
registration that designates the new location if the new location
complies with the requirements of this section.
(c) If a builder operates under any name other than the name
that is set forth on the builder's certificate of registration,
the builder shall, within 45 days of operating under this other
name, disclose this other name to the commission.
(d) This section does not require a builder to obtain a
certificate of registration for each sales office.
(e) A builder may designate a United States Postal Service
postal box for use in correspondence. The builder may not use
the box as the builder's principal place of business for purposes
of this section.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 21, eff. September 1, 2007.
Sec. 416.011. TEXAS STAR BUILDER DESIGNATION. (a) The
commission shall establish rules and procedures for a program
through which a builder can be designated as a "Texas Star
Builder." A builder's participation in the program is voluntary
and is not a requirement for the issuance of a certificate of
registration required under this chapter.
(b) A builder who participates in this program will be allowed
to represent to the public that the builder is a "Texas Star
Builder" and meets all of the requirements and qualifications
that are set forth by the commission for the program.
(c) If the commission determines that a builder must meet
certain education requirements to participate in the "Texas Star
Builder" program, a builder may satisfy those requirements by
completing education programs offered by a trade association or
other organization whose education programs have been approved by
the commission.
(d) The certification issued by the commission as a "Texas Star
Builder" is valid for at most one year and renewable on a date to
be determined at the commission's discretion.
Added by Acts 2003, 78th Leg., ch. 458, Sec. 1.01, eff. Sept. 1,
2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 22, eff. September 1, 2007.
Sec. 416.012. CONTINUING EDUCATION PROGRAMS. (a) The
commission shall recognize or administer continuing education
programs for builders registered by the commission. A registered
builder must participate in the programs to the extent required
by this section to maintain the builder's registration.
(b) A builder who registers for the first time on or after
September 1, 2007, must complete, during the first year the
builder is registered with the commission, five hours of
continuing education, one hour of which must address ethics.
(c) A builder who is registered before September 1, 2007, and
all other builders who register for the first time on or after
September 1, 2007, and satisfy the requirements of Subsection
(b), must complete five hours of continuing education every five
years, one hour of which must address ethics.
(d) The commission shall permit a registered builder to receive
continuing education credit for educational, technical, ethical,
or professional management activities related to the practice of
residential construction, including:
(1) successfully completing or auditing a course sponsored by an
institution of higher education;
(2) successfully completing a course certified by a professional
or trade organization;
(3) attending a seminar, tutorial, short course, correspondence
course, videotaped course, or televised course on the practice of
residential construction;
(4) participating in an in-house course sponsored by a
corporation or other business entity;
(5) teaching a course described by Subdivisions (1)-(4);
(6) publishing an article, paper, or book on the practice of
residential construction;
(7) making or attending a presentation at a meeting of a
residential or builder association or organization or writing a
paper presented at the meeting;
(8) participating in the activities of a residential or builder
association, including serving on a committee of the
organization; and
(9) engaging in self-directed study on the practice of
residential construction.
(e) A registered builder may not receive more than two
continuing education credit hours during each five-year period
for engaging in self-directed study.
(f) At least two hours of the continuing education requirement
under this section must address:
(1) limited statutory warranties;
(2) building and performance standards; and
(3) requirements of the International Residential Code as
adopted under Section 430.001 and other statutes and rules that
apply to builders under this title.
(g) A builder's agent or other designated individual may satisfy
the requirements of this section for the builder if the builder
is a corporation or other business entity.
Added by Acts 2007, 80th Leg., R.S., Ch.
843, Sec. 23, eff. September 1, 2007.