TAREI letter about Texas HB3250

[Barry Adair]

I may be shot for posting this but, OH WELL!

P.O. Box 90745 • AUSTIN, TEXAS 78709-0745
512/370-1977• 800/241-1977• FAX: 512/370-2702
April 21, 2007
Re: Legislative Alert
HB3250/SB914
Inspectors of Texas,
HB3250 and its companion Bill SB914, will eliminate the TREC Inspector Committee (IC) under SECTION 52
(Page 35 in Word version) that repeals the Texas Occupation Code 1102 (b-d).
I am on record with the 2006 Sunset Hearings recommending for the Inspectors in Texas be placed on a separate Board and opposing the elimination of the IC. We also had public comment from Mr. Ron Walker with the Texas Association of Realtors (TAR) opposing the recommendation for removal of the IC. (See Page 22 of the Sunset
Commission Decisions 8/06) One must look at the historical significance in order to understand the potential ramifications with the elimination of
the IC. The 1990 Sunset Review recommended the Inspectors be removed from The Texas Real Estate Commission (TREC) and placed over to TDLR. Why would Sunset make this recommendation? The Sunset recommendation was simply due to the obvious conflicts of interest for the Consumers of real property in Texas. TREC is the only state regulated program that represents both opposing views under one licensing and regulation entity. The only non-biased advocate that the Buyers of real property in Texas have thru a transaction is the Real Estate Inspector.
Does the Public Member appointed in the TREC Commission represent the Buyer? No. They represent the “industry” of Real Estate in Texas. Thus, the Inspector Committee is a statutorily created Advisory Committee thru TREC to deal with Enforcement and Inspection-related matters for the Commission. Without the IC, how is TREC Enforcement to deal with daily issues involving Inspection-related matters such as the Standards of Practice?
The Texas Real Estate Inspection Standards of Practice (SoP) is regarded as one of the most esteemed set of Inspection Standards in the country. Are TREC Commissioners and/or Legal Council going to render opinion(s) on Inspection-related issues without referring to the very individuals who are licensed and operate their businesses under the SoP for the Consumers?
The two other TREC Advisory Committees, Broker & Lawyers Committees do not represent the Consumers. They also represent “industry-related” matters for TREC. Why then, is the only Committee who represents the Consumers in Texas targeted as being eliminated? Both the Inspectors and Consumers in Texas will not be represented by TREC with the elimination of the Inspectors Committee.
Danny South J.D. Fuller Brian Murphy Paul Roebuck, Sr Greg Lewis Mark Eberwine
President President-Elect Vice President-Vice President-Vice President-Vice President-
Amarillo Palestine Secretary/Treasurer Education Membership & Gov’t and Regulatory Affairs
806/356-8703 903/727-0831 Arlington Conroe Member Services San Antonio
972/572-4500 281-370-6803 Granbury 210/654-8833
817/279-9953
Allen Anderson Roy Thomas Buzz Boles Richard Craycroft Joe Gonzales, III Andrea Barnard
Director-Place 1 Director-Place 2 Director-Place 3 Director Place 4 Immediate Past President Executive Director
Dayton Spring Longview Austin Houston Austin
888/439-9080 281/788-5244 903/452-1212 512/331-5470 281/376-7602 512/370-1977

Another part of the Bill, SECTION 12 requires at least 55% passing Rate for an individual taking an exam for the first time. The problem with the passing rate is not the exam, but the individual taking the exam. TREC implemented the “Fast Track” program for Inspectors in 2001. At that time, we had approximately 1,450 practicing Inspectors in Texas. Six years later, we have over 4,400 Inspectors. That said, the individuals taking the Inspector exam did not have the educational background or construction-knowledge based experience needed to pass the exam the first time. Raising the “pass rate” is not the answer. Should these issues cause concern for your business and/or your Industry, I strongly urge you to contact Rep. Truitt’s office as soon as possible. The contact for Rep. Truitt is Mr. Dan Sutherland at 512.463.0690 or Dan.Sutherland@House.state.tx.us. Ladies and Gentlemen, time is of the essence. You must take action now.
Sincerely,
Daniel F. South
TAREI President 2007-2008

[Michael R. Boyett]

Barry...have you read HB3250? I haven't spent much time delving into it however I do not agree with TAREI's assessment and position on the two points they bring up.

Another part of the Bill, SECTION 12 requires at least 55% passing Rate for an individual taking an exam for the first time.

Here is what the bill says, do you agree with TAREI?

(c) In establishing accreditation standards for an educational program under Subsection (a), the commission shall adopt rules that require a program to establish that at least 55 percent of the program's graduates have passed a licensing exam the first time the exam has been taken by the graduates before the commission may renew the program's accreditation.

...will eliminate the TREC Inspector Committee (IC) under SECTION 52 (Page 35 in Word version) that repeals the Texas Occupation Code 1102 (b-d).

Repealing 1102 b,c,d doesn't abolish the Inspectors Committee.... (b) simply eliminates the requirement that a IC member must have been an inspector for 5 years before serving, (c) no more than 3 committee members may be brokers and (d) a non-discrimination clause.

What am I not understanding? Russell S / John C where are you? For what it's worth, my understanding is that the Inspectors Committee is not legislated by law anyway and that they serve at the discretion of TREC and that TREC can simply abolish the committee at any time they choose to without any laws being passed or changed.

[Michael R. Boyett]

Finally! The first TREC Inspector's Committee meeting since Sept of last year has been scheduled for Monday, May 7th at 9:00 am here in Austin. I plan to go if I don't have an inspection that morning and will let other Texas HI's know what I observe. Anyone want to bet who will be elected chairman?

Here's the agenda: Attachment 11279

[Michael R. Boyett]

As promised, here are my notes from today's TREC Inspectors Committee meeting:

Attachment 11368

[Dan Bowers, CMI]

Is Vern an ASHI member?? Why would anyone in Texas want to give up the great test that they have and go with the NHIE.

[John Cahill]

Originally Posted by mboyett

Anyone want to bet who will be elected chairman?

I think a lot of people would have lost this bet. Congrats Vernon.

[John Cahill]

Originally Posted by dbowers

Why would anyone in Texas want to give up the great test that they have and go with the NHIE.

Because it is not funded and poorly developed as a result. NHIE with a Texas SOP addendum is a better idea.
Cahill

[John Cahill]

Originally Posted by mboyett

Here's the agenda: Attachment 11279

Gotta ask why those who asked "Show us how it works" refused to accept a position on the SoP subcommitee. They were asked point blank to help and refused. Hmmm. I thought thats why they were appointed? Also worth mentioning that the first thing out of Foster was a nomination for Willcox as Chair. He lost overwhelmingly. Congrats Vernon Billy and Phil

[rstrahan]

It's too late (in the day) to respond adequately to all this, but:

HB3250 does remove the statutory status of the IC. The commission can do whatever it wants, whenever it wants as of Sept 1.

BUT they always really could anyway. The committee is window-dressing. The commission will keep us around as an 'advisory committee' to maintain appearances for the time being. The teleconferencing stuff is automatically allowed if we are an advisory committee.

The exam pass rate requirement affects education providers, not inspectors. It will be a train wreck, but the current Texas test is simply incompetent. The first-time pass rate is around 20%. That is indefensible for any test with so many pre-requisites.

I agree with Cahill. NHIE would be better. Guys, ANYTHING that brings this business into national standards is better...

Nice notes Mike, sorry we didn't get to talk.

I thought the officer elections went surprisingly well.

ZZZZZzzzzzzz

Russell

[rstrahan]

Originally Posted by dbowers

Is Vern an ASHI member?

Yes, for a very long time.

[Michael R. Boyett]

Originally Posted by jcahill

I think a lot of people would have lost this bet. Congrats Vernon.

John & Russell, thanks for weighing in on this. Yes, I too would have lost a big bet. I have to say I was really surprised that Larry wasn't elected as chairman. It seems to be pretty clear that the 3 new guys on the committee will not be allowed to overwhelm it and take over control. I was even more surprised that Larry was not appointed to the SOP sub-committee but I did hear someone say, somewhat off-hand, that Vernon was going to re-visit the sub-committee appointments so it wouldn't surprise me to see some changes.

[John Cahill]

Originally Posted by mboyett

I was even more surprised that Larry was not appointed to the SOP sub-committee but I did hear someone say, somewhat off-hand, that Vernon was going to re-visit the sub-committee appointments so it wouldn't surprise me to see some changes.

It was my understanding that Larry and Fred were asked to serve on the SoP subcommitee and they declined. I might be wrong. I was golfing and doing a terrible job at it.

[John Cahill]

We were there waiting for others to "show us how it works". Russ was on top from day one and brought me into it. In that I have been excommunicated by the papal commission I had no choice but to sit back and watch.

Did the IC try to intercede? YES. Vernon wisely called an emergency teleconference meeting to discuss the bill and was severely scolded by General Counsel. Pending legislation is not an emergency according to General Counsel. The emergency meeting was further impeded by Foster who said pending legislation was beyond the scope of duties of the inspector committee then informed all that he had a meeting to discuss the bill with legislators. General Counsel and FosCox shut down the emergency meeting but at least Foster was there to save us with the legislators. The bill being passed is AFTER Larry’s personal intercession.

So in summary, Vernon tried and was slapped down by TREC and Foster. TAREI did not have a clue and would not have known about the bill had a few TAREI board members not been alerted. ZZZzzzzzzzzzzzz TAREI.

No matter. An inspector Committee by statute or one created at will of Commission has same power. None. The bill does nothing to inspectors. Inspectors are ruled by TREC and TAR. You will never ever change it. Fact of life my friends.

I am very pleased and complimented by the "true grit" and integrity of the majority inspector committee today. You guys are not the "unsophisticates" that opposition labeled you as. You are not puppets. You voted on the SoP on your individual beliefs and you voted today on them again. (FYI I have not communicated with the majority of them since September). YOU are the leaders of public protection. You are not TREC TAR shills who bend "public protection" arguments to suit personal agendas.

Today was a great day for inspectors and the public. Enjoy it while you can because nothing will change TREC TAR control of inspectors in Texas.

OK now. I hope you take what I say lightly. Its a blast to spew my opinion now that I am not on IC. No offense intended.

"Professional Standards that empower and promote professionalism will result in a strong industry that ultimately protects the public. "

John

[Michael R. Boyett]

Originally Posted by jcahill

It was my understanding that Larry and Fred were asked to serve on the SoP subcommitee and they declined. I might be wrong.

That may very well be true. Vernon resessed the general meeting for 20 minutes to develop the sub-committee appointments and that discussion could have happened 'in the hallway' during that short break. Makes no sense to me if true though. "FosCox"....that's great!

[Dan Bowers, CMI]

Texas has very specific SOP's and guidelines that other states don't have. We're told a few examples would be appliances, sprinklers, your promulgated report that calls things like "no GFCI's" as in need of repair, etc. The NHIE does not address the Texas issues. Why in the world would you not simply change your own rather than try to rewrite NHIE.