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.