Texas Watch responds to Sunset Report - TRCC Must be Abolished
Texas Watch agrees wholeheartedly and enthusiastically with the Sunset staff’s recommendation to abolish the Texas Residential Construction Commission (TRCC).  The staff’s review of the agency has verified the complaints homeowners have made since the agency was established in 2003 – that the agency is not only an unnecessary barrier to the resolution of disputes between homeowners and builders, but is also a stacked process that does more to protect the interests of the homebuilding industry than those of Texas taxpayers, homeowners, and consumers...We agree with Sunset staff that the TRCC is beyond repair.  Homeowners are better served by simply abolishing the agency.

                  TEXASWATCH
               815 Brazos Street, Suite 603  â€“ Austin , Texas 78701– (512) 381-1111  
                                                      www.texaswatch.org                                                

September 4, 2008

The Honorable Carl Isett, Chair Texas
Sunset Commission 
P.O. Box 13066
Austin , Texas 78711-3066 

Dear Chairman Isett:

Texas Watch agrees wholeheartedly and enthusiastically with the Sunset staff’s recommendation to abolish the Texas Residential Construction Commission (TRCC).  The staff’s review of the agency has verified the complaints homeowners have made since the agency was established in 2003 – that the agency is not only an unnecessary barrier to the resolution of disputes between homeowners and builders, but is also a stacked process that does more to protect the interests of the homebuilding industry than those of Texas taxpayers, homeowners, and consumers.

As the Sunset staff has correctly concluded, homeowners have not been served by this state agency.  When evaluating the usefulness of a state regulatory agency, the question of whether it serves the needs and interests of ordinary Texans should be paramount.  As the Sunset staff report notes, the TRCC does more to protect the interests of the industry it purports to oversee. 

Three statements from the staff recommendations accurately portray the TRCC:

“…[P]rotecting practitioners is not the rationale for involving the power of the State, nor is it the benchmark for evaluating the need for regulation.  Rather, unless otherwise specified, the need for regulation centers on protecting the public.” (pg. 5)

“By not ensuring the competence and financial responsibility of builders in Texas , the regulations do not prevent unqualified persons from entering the field and thus are not designed to prevent problems from occurring.” (pg. 6)

“The overall regulatory approach to the residential construction industry contributes to a significant consumer concern about the Commission.  Consumers see a State Inspection Process that is ineffective in fixing identified construction defects.  They see a builder registration program that is not based on qualifications and cannot help prevent problems before they occur.  They see an enforcement process that cannot effectively sanction problem builders because of the shell game of naming a new designated agent.  Finally, if they opt out of an administrative process they feel has failed them, they see diminished access to the courts.” (pg. 13)  

We agree with Sunset staff that the TRCC is beyond repair.  Homeowners are better served by simply abolishing the agency.

Sincerely,

Pamela J. Bolton, J.D.
Director of Policy & Research