Wednesday, September 24, 2008

Regulation-Texas Style

"During the past five years, state law makers and home builders have constructed a Potemkin village of regulation in the Texas Residential Construction Commission. ... It's telling that the only group upset about dismantling the TRCC is the builders it is supposed to police. The TRCC purports to resolve differences between aggrieved homeowners and builders and promote better home construction. In fact, it's been a Legislature-sanctioned smoke screen for bad construction. ... 'Without the TRCC's dispute resolution process, homeowners with construction defects that are currently being resolved in an expedient and cost-effective manner will be left with nowhere to turn but time-consuming and expensive litigation', [Ron Connally, an Amarillo builder] said. ... The Sunset Commission's found that 88 percent of the disputes brought before the TRCC wind up in court anyway. ... As my colleague Clay Robison noted recently, Houston builder Bob Perry has been showering cash on Sunset Commission members. ... In the TRCC, builders have had a lapdog commission. Because most disputes still wind up in court, the TRCC is little more than a bureaucratic speedbump in the resolution process. ... What consumers want, of course, is real oversight, and [Mickey] Redwine's proposals should go a long way toward achieving that. ... As the facade of the TRCC crumbles, we see it for what it is: a regulator that never was", my emphasis, Loren Steffy (LS) at the Houston Chronicle, 12 September 2008.

Right on LS! LS could be writing about the: DOJ, SEC, OCC, PCAOB, etc., etc., ad nauseum. Here's a link: Will Hogan & Hartson suggest this "regulatory" approach to its clients. See my 6 August 2008 post. Well Christine baby, how about it?

No comments: