No place like home for this cuddly Austin lapdog
THE Texas Legislature, over the years, has created a number of industry lapdogs, but the Texas Residential Construction Commission, established two years ago, could be one of the cuddliest yet...  A few senators tried to take some of the wag out of its homebuilder-friendly tail last week but failed. Even though some political contributions have sparked legal turmoil, money still talks in Austin, and with a very loud voice... Homeowners now have to go through an expensive, commission-run dispute resolution process before pursuing any legal action over construction complaints. This is more bureaucratic and potentially more intimidating than the mandatory arbitration process that most builders already required in new home contracts.

Houston Chronicle
No place like home for this cuddly Austin lapdog
May 28, 2005
By CLAY ROBISON
Copyright 2005 Houston Chronicle

A few senators tried to take some of the wag out of its homebuilder-friendly tail last week but failed. Even though some political contributions have sparked legal turmoil, money still talks in Austin, and with a very loud voice.

Consider how the Residential Construction Commission came to be created and how it was appointed.

According to a report released earlier this year by public advocacy groups, Texas homebuilders donated $5 million to executive and legislative candidates, political parties and political action committees during the 2002 election cycle, which completed the Republican takeover of the statehouse.

Houston homebuilder Bob Perry, a major contributor to Gov. Rick Perry and Republican causes, gave $3.7 million of the total.

Bob Perry (who isn't related to the governor but obviously shares his political philosophy) and other homebuilders were a driving force behind creation of the new commission. The new law established some construction and warranty standards for the new agency to regulate, but its primary purpose was to offer homebuilders protection against lawsuits brought by unhappy customers.

Homeowners now have to go through an expensive, commission-run dispute resolution process before pursuing any legal action over construction complaints. This is more bureaucratic and potentially more intimidating than the mandatory arbitration process that most builders already required in new home contracts.

The law also limits the damages that homeowners can recover, and the makeup of the commission has consumers justifiably concerned.

The law requires four of the nine commissioners to represent builders. State regulatory boards typically include some members of the industries being regulated.

The argument is that technical, industry input is necessary for effective regulation, but the fox-and-henhouse practice also is a testament to the lobby's influence.

Two of the "public" members appointed to the Residential Construction Commission by the governor also have strong ties to the homebuilding industry. And, even more troubling for consumers, one of the industry representatives, John Krugh, an executive of Bob Perry's homebuilding company, was appointed to the commission by Rick Perry less than a month after the governor had received a $100,000 political donation from Bob Perry.

The governor's office denied any connection between the contribution and the appointment, but skeptical consumers should be forgiven.

The commission still doesn't have much of a track record. But listening to consumer concerns over what appears to be a stacked deck against them, Sen. Robert Duncan, R-Lubbock, filed a bill earlier this year to make changes in the agency that, he said, would have provided more balance between homebuilders and buyers.

The bill went nowhere.

Duncan, who had participated in negotiations on the original residential construction bill two years ago, last week also tried to slow Senate confirmation of three of the nine commission appointees, including Krugh.

Duncan said he wanted to "send a message" to the commissioners that he expected the agency to protect the public.

All three appointees, however, were confirmed, mainly because homebuilders already had sent their own message, and it was louder than Duncan's. During the 2004 election cycle, builders had contributed another $4 million to legislative candidates and political causes, with Bob Perry giving $3 million of that.

In defense of his hometown nominee, Sen. Kyle Janek, R-Houston, said Krugh, who was confirmed 25-6, was "honest and hardworking." He said it was "absolutely ridiculous" to suggest that Krugh was biased against homeowners.

Janek may be correct, but the same homebuilder money that put Krugh and his colleagues in a position of influence will continue to cast a shadow over their work in the eyes of consumers. An unhealthy political process breeds distrust.

Robison is chief of the Chronicle's Austin Bureau. ( This e-mail address is being protected from spam bots, you need JavaScript enabled to view it )