§ 145.79. Suspension and revocation of third-party agencies.
(a) The Department may suspend or revoke its approval of an evaluation agency or inspection agency if the Department determines that the approval or a reapproval was based on fraudulent or materially inaccurate information, or that the approval or reapproval was issued in violation of this chapter, or that a change of facts or circumstances make it unlikely that the third-party agency can continue to discharge its responsibilities under this chapter in a satisfactory manner, or that the third-party agency had failed to discharge its responsibilities under this chapter in a satisfactory manner or had violated this chapter or its contract with the Department in any material respect. During the period of suspension or revocation, the affected third-party agency may not be authorized to discharge its responsibilities under this chapter or under its contract with the Department, unless otherwise specified in the notice of suspension referred to in subsection (b) or by order of the Department.
(b) A written notice of a suspension under subsection (a) will be delivered by the Department by hand to an officer of the affected third-party agency or by registered mail to the principal office of the affected third-party agency. The written notice will include a brief statement of the reasons for the suspension. Copies of the notice of suspension will be delivered by the Department to manufacturers with implementing contracts with the affected third-party agency either by hand to officers of the manufacturers or by registered mail to the principal offices of the manufacturers. The suspension will be effective on the date the affected third-party agency receives the notice of suspension or on a later date that may be designated in the notice of suspension. The period of suspension will be specified in the notice of suspension, but it may not continue beyond a date 15 days after the date the hearing provided for in subsection (c) is held.
(c) Promptly following a suspension under subsection (a), the Department will establish a time and place for a hearing to consider whether the suspension should be lifted or converted to a revocation or what other order, if any, should be issued. The Department will send a written notice of the hearing by hand or by registered mail to the affected third-party agency and to manufacturers with implementing contracts with the affected third-party agency. Notice of the hearing may be sent to other interested persons. The hearing will be treated as an appeal, the affected third-party agency will be considered the appealing person and § 145.112 (relating to procedures for formal appeal proceedings) is applicable.
(d) The Department may revoke its approval of an evaluation agency or inspection agency without previously suspending its approval. The Department will send a written notice to the affected third-party agency of its intention to consider revocation of its approval, stating the grounds therefor and establishing a time and a place for a hearing on the question. The notice will be sent by hand or by registered mail to the affected third-party agency and to manufacturers with implementing contracts with the affected third-party agency. The notice may be sent to other interested persons. The hearing will be treated as an appeal, the affected third-party agency will be considered the appealing person, and § 145.112 is applicable.
(e) Upon the suspension or revocation of approval of an evaluation agency or inspection agency under this section, a manufacturer with an implementing contract with the affected third-party agency shall have an unconditional right to terminate its contract with the third-party agency and to enter into an implementing contract with another third-party agency.
(f) If the Department determines that there is a substantial threat to the health, safety or welfare of the occupants of industrialized housing or housing structures containing housing components or industrialized buildings or structures containing industrialized building components, because they were manufactured in accordance with building system documentation and related compliance assurance program approved by an evaluation agency whose approval has been suspended or revoked by the Department under this section or were certified by an inspection agency whose approval has been suspended or revoked by the Department under this section, the Department may require the manufacturer to take the actions with respect to the industrialized housing or housing components, industrialized buildings or building components as may be necessary to eliminate substantially the threat to the health, safety or welfare of the occupants.
(g) Upon the suspension or revocation of an evaluation agency or inspection agency under this section, the Department will, upon the request of a manufacturer with an implementing contract with the suspended or revoked third-party agency, consult with the manufacturer to establish a temporary arrangement by which the manufacturer can continue to manufacture, sell, lease and install industrialized housing, housing components, industrialized buildings or building components in conformity with the act and this chapter until the suspension or revocation is lifted or an implementing contract entered into with another third-party agency. For these purposes, the Department may in its sole discretion discharge some or all of the responsibilities of a third-party agency. The Department may also approve another temporary arrangement which the Department determines would best promote the purposes of the act and this chapter under the circumstances.
Authority The provisions of this § 145.79 amended under section 5 of the Industrialized Housing Act (35 P.S. § 1651.5).
(Editor’s Note: See 53 Pa.B. 830 (February 11, 2023) and 54 Pa.B. 145 (January 13, 2024) for notices regarding implementation of this section.)
Source The provisions of this § 145.79 adopted July 12, 1974, effective July 13, 1974, 4 Pa.B. 1403; amended November 4, 2016, effective November 6, 2017, 46 Pa.B. 6976. Immediately preceding text appears at serial pages (349273) to (349275).
Cross References This section cited in 12 Pa. Code § 145.78 (relating to contractual arrangements).
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