Texas Comptroller of Public Accounts
(HOT Summary of this 2006 TRCC Review)

Even though many TRCC enhancements from this review were implemented in 2006, the newer (August 2008) Sunset staff review portrays the agency as so "fundamentally flawed" that it should be abolished altogether. That closely matches the sentiment of Carole Keeton Strayhorn as Texas Comptroller of Public Accounts.

"... if it were up to me personally, I would blast this TRCC builder-protection agency off the bureaucratic books." (Streyhorn)

HOT summary of Strayhorn's 50-page report describing a homeowner survey and review of the TRCC

• Homeowner Outrage. Most homeowners responding to the survey were disappointed and angry that the TRCC process does nothing to ensure that construction defects are fixed. (86% said their builder failed to fix defects.) 
• False Security. Builder Registration does not guarantee quality building practices and in fact may give homeowners a false sense of security [made worse by mandating limited state warranties].
• • "Unlike some states, TRCC does not require education standards, proof of experience or proof of financial solvency." [Builders filing for bankruptcy or abandoning unfiniished homes and leaving contractors unpaid is an all-too-common problem.]
  • "TRCC has no authority to stop unregistered builders from engaging in residential construction projects."
  • TRCC registration supposedly requires a criminal background check, but in a random sample of just 100 registered builders (from more than 24,000), the Comptroller found convictions of vehicle burglary, home burglary, attempted homicide, and even a registered sex offender. 
• No Teeth. 93% of TRCC inspections confirmed at least one construction defect, yet the agency has "no" authority to hold builders accountable or require them to make repairs.
• • The Comptroller's review found that "all of the 10 states surveyed can take disciplinary action if a builder fails to fix confirmed defects or comply with building standards. [not so in Texas]
  • These actions include civil penalties; license revocation, suspension or restriction; labeling builders as "problem contractors" and listing them on a Web site; fines as large as $50,000; letters of reprimand and an order of correction."
• Bureaucratic Burdens. The report describes the TRCC as a "builder protection agency" that evolved from previous legislation as builders gained increasing influence and successfully lobbied for protections from .
• • DTPA  (Texas Deceptive Trade Practices-Consumer Protection Act of 1973) helped protect consumers against false, misleading and deceptive business practices, breaches of warranty, and "unconscionable actions."
  • RCLA  (Residential Construction Liability Act) was passed during tort reform in 1989 to limit the liability of builders, with proceedures homeowners must go through before filing a lawsuit under DTPA.
  • TRCC  (Texas Residential Construction Commission) act added more procedural hurdles, including the complex and time consuming SIRP (State-sponsored Inspection and dispute Resolution Process) as prerequisite to remedies available through RCLA. It also established state-mandated limited warranties to replace the long-standing implied warranties. [HOT believes these warranties aren't worth the paper they're written on.]
  • TAB  (Texas Association of Builders) as an industry association (not a state agency) has lobbied on behalf of builders to limit their liability and block homeowner access to courts by introducing model builder contracts with mandatory arbitration clauses.
• Survey Comments. Four pages of homeowner comments are so powerful that we extracted them from the report and present them here. (add link)
• Self Sustaining. The TRCC collected $6.6 million in fees from builders and homeowners in FY 2005 but spent only $3.7 million, transferring $2.9 million to help balance the state general budget "on the backs of homeowners."

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