Rep. Todd Smith's HB 2008
Bill Incorporates the Recommendations of Carole Keeton Strayhorn, Texas Comptroller Texas Residential Construction Commission (TRCC) Report, January 23, 2006.

Representative Todd Smith
Bill Analysis for HB2008

Section 1
This section deals with who may and may not be an employee or member of the board of the Texas Residential Construction Commission.

A public member of the TRCC would be required to have demonstrated a continued interest in consumer protection and certain people would be prohibited from serving as a public member.  A person could not serve as a public member if that person or his/her spouse: a) is a builder registered with the TRCC or works in the field of residential construction, b) is an employee of a builder or a third-party inspector that receives money from the TRCC, or c) owns or controls more than a 10% interest in a builder or third-party inspector that receives money from the TRCC.

A person would be prohibited from serving as a TRCC member (not just as a public member) or from being employed by the TRCC if that person or his/her spouse is an employee of a residential construction trade association.  A person would be prohibited from being a member or the general counsel of the TRCC if he/she was a lobbyist for a residential builder. 

Section 2

This section would give the TRCC the ability to discipline a builder who failed to repair a home after a third-party inspector recommended a repair unless the builder was in the process of appealing the recommendation.  It would also give the TRCC the ability to discipline a builder who repeatedly failed to meet the TRCC’s building and performance standards.

Section 3

This section would allow the TRCC to petition a district court to issue an injunction against anyone violating any part of the Texas Residential Construction Commission Act.  It would also allow the TRCC to issue against any unlicensed person acting as a builder a cease and desist order.  A violation of the cease and desist order would expose the person to disciplinary action by the TRCC.

Section 4

This section would require the fee for a third-party inspection to be paid by the builder if a defect is found or by the person who submits the request for the third-party inspection if no defect is found.  Thus, a homeowner would only have to pay the fee if he/she requests an inspection and no defect is found.  If a home is not registered as required with the TRCC and an inspection is requested, the builder would pay the inspection fee.

Section 5

This section would make the state-sponsored inspection and dispute resolution process optional.

Section 6

This section would limit the amount of time a builder or homeowner has to reject a third-party inspector to five days.

Section 7

This section would allow the third-party inspector’s recommendation to include a dollar amount that would cover the homeowner’s repair expenses.

If the inspector finds in favor of the party who requested the inspection, the bill would require that the other party pay the inspector’s fees.

It would also increase the number of days an inspector has to issue a recommendation when the defect involves workmanship or materials rather than a structural problem.  The inspector would have 20, rather than 15, days to issue the recommendation.

Section 8

This section would enable the TRCC to require the responsible party to pay the homeowner’s repair costs if the inspector includes the cost in his/her recommendation.

Section 9

This section would require all government entities to verify that an applicant for a building permit has contracted with a TRCC-licensed builder before issuing a permit.

Section 10

This section would make the bill effective immediately if it receives a two-thirds vote, or on September 1, 2007 if it receives a simple majority.