Highlights and [bracketed comments] added

In 2003 the Texas Legislature passed the Texas Residential Construction Commission Act, creating a Commission to regulate the home building industry and provide consumer protection for new home buyers. Six years later the Texas Comptrollers Office and the Texas Sunset Commission have called for the abolishment of the TRCC (trick). As the reports stated, the Commission is nothing more than a "builder protection agency" with "fundamental flaws that do more harm than good". The fate of this ill-conceived Commission is currently in the hands of the Texas Senate. They should stand with the consumers of this state and let the sun set on this fatally flawed Commission.

The Sunset Bill

In response to the concerns of the Sunset Commission, House Bill 2295 by Representative McClendon (D-San Antonio) has been filed. According to the rules of the Sunset Commission, if this "sunset" bill is not signed into law, the TRCC will be abolished. The bill has passed the House and is currently lingering in the Senate with time running out in the legislation session.

The TRCC Facts

The facts concerning this Commission, which supposedly was created to help homeowners with construction defects, are undeniable and unbelievable. The Senior Vice President and General Counsel of Bob Perry Homes wrote the bill that created the TRCC. Governor Perry later appointed him to the Commission. The State Legislator who sponsored the TRCC bill owns a lumber company and sells to the home building industry. He is a member of the Texas Association of Builders (TAB) and received an award after passing the bill. The National Association of Home Builders also named him "Legislator of the Year".

[HOT: Rep. Ruth McClendon (D-San Antonio), who sponsored the Sunset bill to protect the Commission, was featured in a 5-page interview in Texas Builder magazine.]

Since its creation, the board has been stacked with builder friendly Commissioners. The Arbitration Task Force, charged with researching the abuse of mandatory binding arbitration in new home contracts, was stacked with home builders and members of the American Arbitration Association (AAA). The Commission, heavily in favor of the home building industry, established a statewide standard for new home warranties that provides one single year of protection, while repealing the implied warranty of good workmanship granted to homeowners in the sixties.

Calls for Abolishing

In 2006 the Texas Comptroller's Office conducted a detailed investigation of the TRCC prompting the Comptroller to state "...if it was up to me personally, I would blast this TRCC builder-protection agency off the bureaucratic books." The staff report by the Sunset Commission issued in 2008 had a key recommendation of "Abolish the Texas Residential Construction Commission and repeal the Texas Residential Construction Commission Act." Both reports were very clear, the $10 million/year TRCC is not providing a useful service to the consumer and deserves to be abolished.

HB2295 Deception

HB2295 continues to deceive. The bill calls for licensing of home builders, but exempts over 28,000 builders currently registered with the TRCC. The licensing oversight will be controlled by the TRCC an agency with 6 years of failure, instead of by the Texas Department of Licensing and Regulation with 100 years of outstanding service and experience in oversight. And the requirements for licensing are nothing more than paying a fee, taking 8 hours of training, and passing a test administered by the inexperienced TRCC.

The mandatory State Sponsored Inspection and Resolution Process (SIRP), a process to help mediate complaints, continues to be a convoluted, complicated, legal nightmare that requires legal assistance to navigate [and is a barrier to other legal options] . The bill offers an optional, extremely expensive mediation process chock full of legal loopholes that will do more harm than good for the consumer. The bill also reduces the time required to complete the SIRP, but does nothing to reduce its overwhelming complexity and legal ramifications.

Kill the Bill

In 2003 testimony from the home building industry claimed the TRCC would provide much needed consumer protection for new homeowners with construction defects. Instead it has been an expensive failure causing financial ruin to many homeowners and allowing the industry to run wild with no fear of being held accountable.

The facts are clear. It is time to let the sun set on this bureaucratic, expensive, nightmare called the TRCC.

By JohnCoby, Burnt Orange Report, 05/17/2009
Source: http://www.burntorangereport.com/diary/8627/time-to-let-the-sun-set-on-bob-perrys-builder-commission

John R. Cobarruvias has been an advocate for new homeowner rights and is a member of Homeowners Against Deficient Dwellings. He has testified against the TRCC and has provided research on the Commission and the rules and procedures.

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