HOBB UPDATED: BIG News - TRCC Abolished and Outstanding Public Citizen Arbitration Report
Friday, 22 May 2009
A message from Janet Ahmad:How the Building Industry Uses Forced Arbitration to Evade Accountability
Big News TRCC Abolished and Outstanding Public Citizen Arbitration Report
Yesterday Public Citizen published an outstanding Binding Arbitration Report. Today the Texas Legislature killed the Homebuilders Protection Agency, the Texas Residential Construction Commission (TRCC)
I would like to give a special thanks to all you who participated and testified in the many committees over the years. It is only with your sacrifices and participation did lawmakers truly understand that made todays events possible.
Again thanks to all,
SEE NEWS REPORTS
Chronicle: Confirms TRCC Will Die
Residential Construction Commission to die
The Senate sponsor of a House bill to re-create the Texas Residential Construction Commission said he will let the bill die, meaning that the much-criticized agency will be "sunsetted." "The (legislative) members have pretty well spoken, and it's probably in the best interest to do a systematic wind-down of the agency," said Sen. Glenn Hegar, R-Katy. The Sunset Advisory Commission staff last year recommended the agency be abolished, saying it did more harm than good for consumers. ..Senate Business & Commerce Chairman Troy Fraser,
, said he never scheduled the bill for a hearing because builders and consumer advocates could not reach a compromise. "It's been a war zone the last two years," said Fraser. Read more...
Quorum Report: TRCC phased out under the states Sunset
HEGAR SAYS HE'S INCLINED TO LET TRCC BE PHASED OUT
The agency's sunset bill is dead and is now unlikely to be included in the catch-all bill.Sen. Glenn Hegar told reporters that hes inclined to allow the Texas Residential Construction Commission to be phased out under the states Sunset process because lawmakers were unable to reach a compromise on how to keep the agency functioning. Hegar, a Katy Republican, is carrying the catch-all Sunset bill thats pending in the Senate to cover those agencies whose Sunset bills die during the waning stages of the session. The TRCC Sunset bill did not get a hearing in the Senate Business and Commerce Committee. It is my inclination at this point in time, and the members have pretty well spoken, that we do a systematic wind down of the agency under the provisions of the Sunset Act, Hegar said during a brief chat at the Senate press table during a break in the floor action. Hegar said hes still talking with Rep. Ruth McClendon Jones (D-San Antonio), whos the House sponsor of the catch-all bill, but his mind is just about made up not include TRCC in the measure. If the measure is not included, it would appear that the only way to save the agency would in conference committee, he said. But that would require the panel to go outside the bounds. By John Moritz
Quorum Report on TRCC: Rep. Hegar no compromise seen
TRCC PROSPECTS LOOK BLEAK IN THE SENATE
Texas Residential Construction Commission may not survive the session. The Senate Business and Commerce Committee will not vote out the Sunset bill dealing with the Texas Residential Construction Commission, meaning the agency will go out of business unless it can be saved by appending it to other still-moving legislation. I was not able to reach a compromise with all parties, said B&C Chairman Troy Fraser (R-Horseshoe Bay). We simply ran out of time. My committee is not scheduled to meet again, so whether that agency can be saved is out of my control. The agency tasked with promoting the construction of quality homes and looking after the interests of new homebuyers has been slammed by its critics as being little more than a tool for the industry. Sen. Glenn Hegar, the Katy Republican who is carrying the catch-all bill that extends the life of agencies that slip through their Sunset process, said hes not yet made a decision about whether to save TRCC. Ruth (McClendon Jones) and I are talking about how we want to proceed, Hegar said, referring to the House sponsor of the catch-all bill. We dont have an answer just yet, but were working on it. The commission is made up of nine members who are appointed by the governor and serve staggered six-year terms. Four of them must be registered builders, three must be members of the public, one must be an engineer in the residential construction field and one must be either an architect or inspector in the residential construction field. By John Moritz
Quorum Report: TRCC PROSPECTS LOOK BLEAK IN THE SENATE
Residential Construction Commission may not survive the session
The Senate Business and Commerce Committee will not vote out the Sunset bill dealing with the Texas Residential Construction Commission, meaning the agency will go out of business unless it can be saved by appending it to other still-moving legislation. I was not able to reach a compromise with all parties, said B&C Chairman Troy Fraser (
). We simply ran out of time. My committee is not scheduled to meet again, so whether that agency can be saved is out of my control. The agency tasked with promoting the construction of quality homes and looking after the interests of new homebuyers has been slammed by its critics as being little more than a tool for the industry. The rest of the story, Quorum Report subscribers only.
Public Citizen Report - Home Court
New home buyers are told (often at the last minute) that they will receive a warranty, which is often characterized as a gift or "bonus" ...warranties dictate that any disputes between buyers and builders must be settled through mandatory binding arbitration, or forced arbitration. This privatized adjudication system provides the ultimate home court advantage for builders and warranty companies. Arbitration firms rely on builders and warranty firms for their business. They have every incentive to keep builders and warranty companies happy. A promotional brochure for AAAs spring 2009 construction conference advised builders not to miss the opportunity to hear about How you can control the arbitration process through advocacy and by drafting appropriate clauses for your contracts and promises tips on identifying the right arbitrator for your case. Read Report...
Janet Ahmad, President