By Conley                                             H.R. No. 1017
       74R13841 CCK-D
                                  R E S O L U T I O N
    1-1        WHEREAS, Housing construction in this state has increased
    1-2  dramatically in recent years, as measured by Texas housing permit
    1-3  statistics of the U.S.  Census Bureau, which show an 83 percent
    1-4  increase over the three-year period from 1991 to 1994; and
    1-5        WHEREAS, Through occupational licensing laws and other
    1-6  statutes, Texas regulates various participants in the housing
    1-7  sector, including architects, real estate brokers, real estate
    1-8  inspectors, plumbers, air conditioning and refrigeration
    1-9  specialists, residential service companies, and
   1-10  manufactured-housing makers and installers as well as certain
   1-11  financial institutions that serve the housing loan and mortgage
   1-12  market, but homebuilders themselves are not required to be licensed
   1-13  by the state; and
   1-14        WHEREAS, The public is generally uninformed and unaware of
   1-15  the ordinary business practices of residential contractors in
   1-16  matters dealing with substantial sums of money--and the purchase of
   1-17  a home is the most expensive personal investment that the average
   1-18  consumer will ever make; and
   1-19        WHEREAS, Occupational licensing has as its general purpose
   1-20  the assurance of public safety and the protection of citizens and
   1-21  business competitors from a minority of practitioners who perform
   1-22  unprofessionally or incompetently, or who engage in disreputable or
   1-23  fraudulent acts; and
   1-24        WHEREAS, Potential travesties by homebuilders include the
    2-1  diversion of funds received for completion of a specific building
    2-2  contract, the abandonment of construction of a residence under
    2-3  contract without excuse, the deliberate disregard of applicable
    2-4  state or local building codes, and the perpetration of fraud,
    2-5  deceit, gross negligence, or other misconduct; and
    2-6        WHEREAS, Given the recent construction growth and a
    2-7  corresponding likely increase in the incidence of misdeeds by
    2-8  untrustworthy residential contractors, it would serve the public
    2-9  interest to examine the merits of licensing homebuilders in the
   2-10  manner of other regulated professions in the housing industry; now,
   2-11  therefore, be it
   2-12        RESOLVED, That the House of Representatives of the 74th Texas
   2-13  Legislature hereby request the speaker to provide for an interim
   2-14  house study to explore whether the state should license Texas
   2-15  homebuilders and to receive public testimony on the issue; and, be
   2-16  it further
   2-17        RESOLVED, That the speaker assign the study to a select or
   2-18  standing committee at his discretion, exercising authority granted
   2-19  to the speaker by House Rule 4, Chapter F, Interim Study
   2-20  Committees.