2009 Texas Code
PROPERTY CODE
TITLE 16. TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT
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.