The state agency that regulates homebuilders should be abolished, according to the staff of the Sunset Advisory Commission, which says the Texas Residential Construction Commission's regulatory structure is worse than no regulation at all.The TRCC "was never meant to be a true regulatory agency with a clear mission of protecting the public," the staff report says (here's a link to the full report). "... Current regulation of the residential construction industry is fundamentally flawed and does more harm than good." That got a quick and negative response from Duane Waddill, the executive director of the agency, who said it would leave the state's homebuilding industry unregulated. Builders want to keep it, too, according to their trade group. The Texas Association of Builders called the recommendation "short-sighted." But Texas Watch, a longtime critic, applauded the idea of killing TRCC. The Sunset panel periodically reviews most state agencies, but those reviews rarely recommend or result in abolition of the agencies in question. That's the first recommendation for TRCC. The report not yet made public says that would result in the layoffs of 80 state employees. It would also cost about $300,000 annually. That's the amount by which fees charged to builders outpaces the costs of running the regulatory agency. The report is critical of the agency's regulatory setup, which requires homeowners to navigate through its procedures before going to court to sue a builder. "No other regulatory agency has a program with such a potentially devastating effect on consumers' ability to seek their own remedies," the report says. "... Sunset staff did not trust that the commitment exists to establish the true regulation needed for the protection of the public." The full commission will take its first public look at the report next month, and is slated to make its official recommendations on TRCC at its December meeting. TRCC's commissioners will meet in early September to talk about an official response. Their first response? Sunset has a bad idea. "The Texas Residential Construction Commission ardently disagrees with the Sunset Commission staff recommendation to abolish the agency," Waddill said via press release. "Accepting Sunsets staff recommendation would free nearly 28,000 builders from regulatory oversight. Nearly 600,000 homes have been registered since the commissions inception. Those Texas families will be left to fend for themselves if an issue arises with their home. "The commission has stripped or denied the right to operate from nearly 500 builders/remodelers in the state. Repealing this legislation would turn back the clock and allow these builders to return and compete in the receding housing market. With the downturn of the market and the ongoing crisis among lending institutions, eroding consumer confidence in the housing industry by deregulating the building industry could be strike three to a fragile economy." Texas Watch, a longtime critic of the agency, hailed the Sunset report and said TRCC should be replaced with something that regulates builders instead of regulating homeowners. "Lawmakers should replace the feckless TRCC with real reforms that ensure builder accountability, quality building standards, and true oversight and regulation of the homebuilding industry," said Alex Winslow, that group's executive director.