Jim Luttrall
12-24-2008, 07:43 PM
Houston Chronicle Editorial
Stacked deck
Texas lawmakers flush with building industry contributions vote to extend life of fatally flawed TRCC
Dec. 19, 2008
In disregarding a recommendation of the Texas Sunset Advisory Commission staff to dismantle the Texas Residential Construction Commission, the elected members of the Sunset Commission's governing board have served their political interests at the expense of constituents.
Houston home builder Bob Perry and other industry representatives have given nearly a half million dollars in campaign contributions to 10 lawmakers on the Sunset Commission, with the bulk of the money going to six Republicans. The TRCC was created in 2003 via a law drafted by Perry's corporate lawyer, who then was appointed to the TRCC by Governor Rick Perry, no relation to the builder but also a recipient of his campaign largesse. The TRCC board is dominated by members with building industry ties.
Homeowners with complaints about problems with construction work are required to submit their grievances to an inspection and mediation process before they can go to court. A report issued by the Sunset Commission staff last month found that instead of cracking down on unscrupulous and unqualified builders, the agency has actually prevented consumers from seeking legal redress.
According to the report, the TRCC from its inception was never meant to regulate the homebuilding industry. It does not license builders, and those registering with the commission are not required to demonstrate either professional competence or financial responsibility. Other trades licensed by the state such as electricians and plumbers are subject to such scrutiny.
Even if an inspection affirms homeowner complaints, the TRCC has no real power to force a builder to make repairs. "Because homeowners must submit to this process before they may seek remedies in court," states the report summary, "those who fail to satisfy its requirements either out of confusion or frustration lose their access to court. No other regulatory agency has a program with such a potentially devastating effect on consumers' ability to seek their own remedies."
The average time to process a homeowner's inspection request is 147 days, and can take as long as 20 months. Based on its own reports, since the creation of the TRCC only 12 percent of all closed inspections have resulted in a satisfactory offer of repair. The remaining 88 percent have resulted in legal action by one party or another, the very outcome that the agency was supposed to prevent.
There are better options for regulating homebuilders and protecting consumers. More than 30 states license residential construction companies, require competency exams, proof of financial solvency, and bonding and liability insurance. Some have dispute resolution programs that include the ability to enforce judgements.
The Sunset Commission staff concluded that the TRCC is too flawed to repair and "without true regulation designed to ensure public protection," Texans are better served without it. We wholeheartedly agree and hope that in the coming legislative session, lawmakers will vote to shutter this sham of a commission.
I guess this answers the question for the next few years.
Stacked deck
Texas lawmakers flush with building industry contributions vote to extend life of fatally flawed TRCC
Dec. 19, 2008
In disregarding a recommendation of the Texas Sunset Advisory Commission staff to dismantle the Texas Residential Construction Commission, the elected members of the Sunset Commission's governing board have served their political interests at the expense of constituents.
Houston home builder Bob Perry and other industry representatives have given nearly a half million dollars in campaign contributions to 10 lawmakers on the Sunset Commission, with the bulk of the money going to six Republicans. The TRCC was created in 2003 via a law drafted by Perry's corporate lawyer, who then was appointed to the TRCC by Governor Rick Perry, no relation to the builder but also a recipient of his campaign largesse. The TRCC board is dominated by members with building industry ties.
Homeowners with complaints about problems with construction work are required to submit their grievances to an inspection and mediation process before they can go to court. A report issued by the Sunset Commission staff last month found that instead of cracking down on unscrupulous and unqualified builders, the agency has actually prevented consumers from seeking legal redress.
According to the report, the TRCC from its inception was never meant to regulate the homebuilding industry. It does not license builders, and those registering with the commission are not required to demonstrate either professional competence or financial responsibility. Other trades licensed by the state such as electricians and plumbers are subject to such scrutiny.
Even if an inspection affirms homeowner complaints, the TRCC has no real power to force a builder to make repairs. "Because homeowners must submit to this process before they may seek remedies in court," states the report summary, "those who fail to satisfy its requirements either out of confusion or frustration lose their access to court. No other regulatory agency has a program with such a potentially devastating effect on consumers' ability to seek their own remedies."
The average time to process a homeowner's inspection request is 147 days, and can take as long as 20 months. Based on its own reports, since the creation of the TRCC only 12 percent of all closed inspections have resulted in a satisfactory offer of repair. The remaining 88 percent have resulted in legal action by one party or another, the very outcome that the agency was supposed to prevent.
There are better options for regulating homebuilders and protecting consumers. More than 30 states license residential construction companies, require competency exams, proof of financial solvency, and bonding and liability insurance. Some have dispute resolution programs that include the ability to enforce judgements.
The Sunset Commission staff concluded that the TRCC is too flawed to repair and "without true regulation designed to ensure public protection," Texans are better served without it. We wholeheartedly agree and hope that in the coming legislative session, lawmakers will vote to shutter this sham of a commission.
I guess this answers the question for the next few years.