REP. MCCLENDON HOUSE BILL 1686 PROTECTS HOMEOWNERS FROM FRAUD

For Immediate Release
Thursday, February 22, 2007

(San Antonio) -- State Representative Ruth Jones McClendon (District 120, San Antonio), filed legislation to increase the protections for homeowners contracting for home improvements. Her proposal, House Bill 1686, would protect homeowners, in particular senior citizens, by requiring most home remodeling and building contractors to register with the Texas Residential Construction Commission and be under its supervision.


Certain contractors would be required to provide proof of financial responsibility in order to register with the Commission, for projects costing more than $2,500. Small projects (those costing $2,500 or less), such as handy-man projects, would not require the contractor to register with the Commission. Projects costing more than $2,500 would require that the contractor's registration number be in the construction contract, and also be provided to cities issuing residential construction permits. Those contractors who would be required to register with the Commission would also be required to obtain insurance for property damage and personal injury claims, as well as bonding for projects costing $50,000 or more.


Under this proposal, homeowners who have a complaint could ask the Residential Construction Commission to take disciplinary action. The Commission would maintain a "recovery fund" that would provide some relief for certain types of damages, and could pursue criminal penalties against non-complying contractors.


Representative McClendon said, "There are many reputable builders and remodeling contractors who do a good job on home improvement projects. For those who don't, we're putting some teeth in the law so that homeowners will be protected." In addition, Representative McClendon emphasized, "There have been too many horror stories of contractors who have taken money from elderly homeowners and left the job half-done, or not done at all. This Bill would put a stop to that kind of scam."


The Representative's involvement in this issue resulted from being "ripped off" by a fraudulent contractor who has since been prosecuted by Bexar County District Attorney Susan Reed. The Court found that the contractor was involved in an organized crime scam involving numerous unsuspecting San Antonians and senior citizens.
Representative McClendon serves on the House Committee on Appropriations, Pensions & Investments (on which she holds a seniority appointment and serves as Chief Budget Officer). Additionally, she is Chair of the House Committee on Rules & Resolutions. She also serves on the Sunset Advisory Commission, which oversees all agencies under the auspices of the State of Texas. Representative McClendon invites constituents with comments on legislative issues, or who may have ideas for legislation, to contact her at the Capitol office at 512-463-0708. The District office will remain open during the 80th Legislative Session and may be reached by calling 210-225-2107.


Contact: Janis Reinken, Chief of Staff
(512) 463-0708
http://www.house.state.tx.us/news/release.php?id=1841