Members Learn More About Legislative Victories at Dallas BA’s Wrap-Up
Members were treated to a deep dive into many of the industry’s successes from the 88th Texas Legislature during the Dallas BA’s Legislative Wrap-Up, presented by StrucSure Home Warranty, on Aug. 8.
Scott Norman, CEO of the Texas Association of Builders, spoke to a full house about the benefits of both bills that were passed on behalf of home building and, just as importantly, bills that were defeated in an effort to protect attainable housing and the economic benefits it provides to the Lone Star state.
Key among the items discussed were Association priority bills that made needed changes to the Residential Claims Liability Act (HB 2022) and the Statute of Repose (HB 2024). Both bills were authored in the House by Rep. Jeff Leach (R) and carried in the Senate by Sen. Phil King (R).
HB 2022 makes needed changes to the Residential Claims Liability Act (RCLA). The legislation includes statutory language changes to reflect precedent case law, clarifies that liability should only apply to actual home defects, allows for follow-up inspections to allow for the repairs, and increases contractor’s deadline to make an offer of repair by 15 days. Bill also prohibits the contractual waiver of RCLA provisions. The bill helps return RCLA to its true intent. The law becomes effective on September 1.
HB 2024 helps the homeowner by requiring that a written warranty be offered by builders and remodelers in order to reduce the Statute of Repose for latent defects of one and two- family homes or townhouses (of not less than three stories) to a period of six years. If a builder/remodeler provides a written warranty, the statute of repose (the absolute time a builder could be subjected to litigation for construction defects) would be reduced to a lesser number of years. This change brings Texas in line with many of its peer states that have reduced the times in their similar statutes. With two-thirds majority approval, this law is now in effect as of June 9.
Also, among other legislation discussed was HB 3492 (Rep. Lynn Stucky (R), and Sen. Drew Springer (R)). The priority bill of the Dallas BA and TAB prohibits municipalities and counties from considering the cost of constructing or improving public infrastructure in determining the amount of the inspection fees. Rather, the municipality or county must use the actual cost to review a plan or inspect the infrastructure. Furthermore, the legislation requires the governmental entity to calculate what the actual cost is to provide the inspection and provides entities with a method for determining how to calculate these costs. Using the methods outlined in the legislation will lead to reduced fees which will ultimately be passed on to future home buyers. The law becomes effective on September 1.
Dallas BA appreciates the support of StrucSure Home Warranty as we work to keep our members informed about industry advocacy.