(a) The provisions in this section apply to both inspectors and contractors, except where noted.
(b) Competency. The registrant, as applicable, shall be knowledgeable of and adhere to the Act, this chapter, the ASME Safety Codes or ASCE Standards as adopted in §74.100, and all procedures established by the department for equipment inspections or performance of a contract to install, alter, repair, or maintain equipment. It is the obligation of the registrant to exercise reasonable judgment and skill in the performance of equipment inspections or performance of a contract to install, alter, repair, or maintain equipment.
(c) Integrity. A registrant shall be honest and trustworthy in the performance of equipment inspections or performance of a contract to install, alter, repair, or maintain equipment, and shall avoid misrepresentation and deceit in any fashion, whether by acts of commission or omission. Acts or practices that constitute threats, coercion, or extortion are prohibited. The registrant shall accurately and truthfully represent to any prospective client his/her capabilities and qualifications to perform the services to be rendered.
(d) Interest. The primary interest of the registrant is to ensure compliance with the Act, this chapter, and the ASME Safety Codes or ASCE Standards adopted in §74.100, and all procedures established by the department. The registrant's position, in this respect, should be clear to all parties concerned while conducting equipment inspections or completing the performance of a contract to install, alter, repair, or maintain equipment.
(e) Conflict of Interest. A registrant is required to avoid conflicts of interest and the appearance of conflicts of interest. A conflict of interest exists when an inspector performs or agrees to perform equipment inspections for a building in which he has a financial interest, whether direct or indirect. A conflict of interest also exists when a registrant's professional judgment and independence are affected by his/her family, business, property, or other personal interests or relationships.
(f) Specific Rules of Conduct. A registrant must not:
  (1) participate, whether individually or in concert with others, in any plan, scheme, or arrangement attempting or having as its purpose the evasion of any provision of the Act, this chapter, or the standards adopted by the commission;
  (2) knowingly furnish inaccurate, deceitful, or misleading information to the department, an owner, or other person involved in equipment inspections or equipment contracts;
  (3) state or imply to an owner that the department will grant a delay or waiver;
  (4) engage in any activity that constitutes dishonesty, misrepresentation, or fraud while performing equipment inspections or completing an equipment contract;
  (5) perform equipment inspections or complete an equipment contract in a negligent or incompetent manner;
  (6) perform equipment inspections in a building or facility in which the inspector registrant is an owner, either in whole or in part;
  (7) perform equipment inspections in a building or facility wherein the registrant, for compensation, participated in obtaining an equipment contract for the building;
  (8) indulge in advertising that is false, misleading, or deceptive;
  (9) misrepresent the amount or extent of prior education or experience to any client; or
  (10) hold out as being engaged in partnership or association with any person unless a partnership or association exists in fact.
(g) An inspector is prohibited from performing inspections upon equipment for which the inspector 's employer also has a contract to perform installations, maintenance, repairs, replacements or alterations on that equipment.
(h) A registrant must withdraw from employment when it becomes apparent that it is not possible to faithfully discharge the duty and performance of services owed the client. A registrant must provide reasonable notice to the client of the registrant's withdrawal.
(i) An inspector must attend all mandatory training required by the executive director.
(j) A registrant must notify the department in writing within 30 days of any changes to information submitted on the application or renewal application.
(k) In accordance with Health and Safety Code, §754.0112, a registered elevator inspector or a registered contractor is not prohibited from performing an activity regulated by the Act or this chapter if the inspector or contractor is performing the activity as an employee of an institution of higher education.

Source Note: The provisions of this §74.72 adopted to be effective July 1, 2012, 37 TexReg 4590; amended to be effective November 15, 2013, 38 TexReg 7949