(a) State agencies which design, construct, or regulate buildings may apply to the Secretary for designation as a construction-permitting agency. Such application shall be in a form acceptable to the Secretary.

(b) Applications for designation shall be reviewed to determine whether the applying agency has demonstrated competency in design and construction of buildings and knowledge of the provisions of the Uniform Code. Where the Secretary finds that the applicant agency is capable of undertaking code enforcement activities, such agency shall be designated as a construction- permitting agency.

(c) Periodically the Secretary may review the records of construction-permitting agencies pertaining to the construction of buildings and to the activities performed pursuant to authority granted by this Part. When the Secretary finds that administration of the Uniform Code by a construction-permitting agency does not comply with the minimum standards established by this Part or Part 1203 of this Title, or that construction activities regulated by the agency do not substantially conform with applicable provisions of the Uniform Code, the agency's designation as a construction-permitting agency may be rescinded.