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.