Proposed TRCC Revision- HB 295

It looks like somebody, Jessica Farrar of District 148, thinks that the Texas Residential Construction Commission could use some improvements.

80(R) HB 295 - Introduced version - Bill Text

A BILL TO BE ENTITLED AN ACT
relating to the regulation of and claims against residential home builders.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. CHANGES TO TEXAS RESIDENTIAL CONSTRUCTION COMMISSION ACT

A few highlights include:

80(R) HB 295 - Introduced version - Bill Text

(3) an improvement to the interior of an existing home [when the cost of the work exceeds $20,000].

Given that many people can’t even come up with $20,000 for a down payment to buy a house, this would be a significant improvement. The following section is completely new.

80(R) HB 295 - Introduced version - Bill Text

Sec. 401.007. HOMEOWNER FEES NOT REQUIRED. A homeowner may not be charged a fee in connection with:
(1) filing a complaint with the commission;
(2) a state-sponsored inspection or dispute resolution process;
(3) an arbitration required by this title; or
(4) a complaint, request, or other proceeding under Chapter 409 or Subtitle D or E.

It would be nice to know that you don’t have to go broke to get a builder (theoretically) to provide what they originally agreed to–a house without defects.

Now this is just plain sad that it had to be spelled out for the governor to appoint more than one commissioner as a representative of the consumers.

80(R) HB 295 - Introduced version - Bill Text

(2) three members must be representatives of the general public who have consistently shown an interest in consumer protection;

This bill is taking no chances and takes care to define who the general public isn’t.

80(R) HB 295 - Introduced version - Bill Text

(c) A person may not be a public member of the commission if the person or the person’s spouse:

(1) is registered, certified, or licensed by a regulatory agency in the field of construction, a building trade, or a related financial or insurance field;
(2) is employed by or participates in the management of a business entity or other organization regulated by or receiving money from the commission;
(3) owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by or receiving money from the commission; or
(4) uses or receives a substantial amount of tangible goods, services, or money from the commission other than compensation or reimbursement authorized by law for commission membership, attendance, or expenses.

Some new causes for disciplinary action have been added as well.

80(R) HB 295 - Introduced version - Bill Text

(12) failure by the builder to complete a home under the contract terms with a homeowner;
(13) failure by the builder to correct a failure to comply with building codes or standards;
(14) failure by the builder to comply with architectural drawings specified in a contract to build or purchase a home;
(15) failure by the builder to comply with an engineering design of a home, including the home’s foundation; or
(16) failure by the builder to satisfy a court judgment or a judgment in a binding arbitration.

I’ll have to spend more time reading the relevant property code to figure out exactly what it means but it looks like the bill would require builders to participate for holding and renewing a certificate of registration. I hope that means the builder can’t build without it but like I said, I still have to look it up and I don’t imagine it will be easy reading.

I suspect the bill has as little chance of making it to committee as a snowball’s chance in hell but who knows? On the plus side, Farrar is from Houston where some of the big builders are headquartered and she has a degree in architecture which should add to her credibility. On the minus side, she’s a Democrat so…

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