Texas Builder, Jan/Feb 2016

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15
Speaking Out
An estimated 25 percent of the final
cost of a home goes towards regulations
imposed by the government. The House
Economic and Small Business Committee
reviews regulatory issues and job creating
incentives, among other topics. How
has your role on the committee helped
you to understand the impact certain
legislation may have on Texas builders,
housing affordability and the state’s overall
economic prosperity?
I had the opportunity to serve on the
Economic and Small Business Committee
during the 82nd Legislative Session. It
was a great experience and allowed me
to observe how state regulations and
incentives impact the marketplace. I
approach governance from a free market,
small government, and sensible regulation
point of view. Regulations have a role, but
need to reflect a legitimate state interest
or public safety goal. This is the approach
I take when weighing proposals that
impact our builders and the affordability
of housing. Too many times we see well
intended regulations put forth, particularly
at the local level, for the supposed benefit
and protection of home owners that have
the unintended impact of making life
unaffordable. It's therefore critical to listen
to our builders and home owners to weigh
the full impact of any regulation and not
just focus on how it addresses the problem
it sets out to solve.
Thank you for voting in support of Senate
Bill 900, which made positive operational
changes to the Texas Windstorm
Insurance Association (TWIA). This was
a critical piece of legislation for TAB’s
coastal home builder members, businesses
and the financial stability of the state
as a whole. Considering your role on
the House Insurance Committee (which
heard the bill) and your knowledge of
the insurance market, what more can
the Legislature do to improve access to
coastal insurance? You amended the bill
on the House floor. Please explain how
that increased the benefit of the bill.
TWIAwas created as an insurer of last resort
to provide coverage for coastal members
who were unable to obtain coverage in
the private market. TWIA is a necessary
resource for individuals who cannot obtain
other insurance, but there are concerns that
it has become the primary insurer in the
coastal region. We need to focus efforts on
increasing the number of private insurers
willing to write wind policies for the coastal
region. The creation of the Voluntary
Coastal Windstorm Insurance Portal
(VCWIP) in 2014 was a good first step in
moving toward more voluntary market
participation. As of September 30, 3,800
TWIA policyholders have participated in
this depopulation program which allows
single-policy depopulation.
I was able to author an amendment to SB
900, which overhauls TWIA's funding
and board structure. The depopulation
amendment, once implemented, will allow
private market insurance companies to
take out larger numbers of TWIA policies
at once. The ability to make offers to larger
blocks of policies instead of one at a time
should encourage even more voluntary
market participation. Private market
offers must be comparable in coverage
and rates. TWIA policyholders are able
to turn down voluntary market offers and
will not be denied TWIA coverage in any
way under these provisions, which should
be implemented sometime in 2016. For
the depopulation program to be truly
effective, the legislature should continue
to study the source of exploding litigation
for hail and windstorm claims and seek
to stem unnecessary litigation while
protecting consumers.
During your time at the State Capitol you
have served on many different committees,
including your current commitments
as member of the House Local and
Consent Calendars Committee. As a bit of
background for our readers, please explain
the responsibilities of the committee and
its important role in the legislative process.
TheLocalandConsentCalendarsCommittee
is one of two procedural committees that set
bills for debate on the House floor. The other
is the Calendars Committee where bills are
set for the "General Calendar."
To be considered for the Local & Consent
calendar, a bill cannot cost money and
must receive unanimous support in the
committee that originally heard the bill.
Our job as members on Local & Consent
is to vet the bills referred to us to ensure
they meet this criteria. This is an important
committee as almost half of the bills passed
this session were passed on the Local &
Consent Calendar. While controversial
and hotly debated measures dominate the
headlines during session, much of what
we are sent to do in Austin involves non-
controversial, but important legislation,
often local in nature. Should a bill make
it through our committee's filter and find
opposition in the full House, one member
alone can send the bill back to the general
calendar for regular debate.
Due to your competitive district, you
find yourself in highly contested elections
each two-year cycle. Our association
appreciates the dedication and sacrifice
running for office and serving in the
Texas Legislature requires. How do you
find time to run a campaign race for
office, manage your law practice and
have time for friends and family?
The truth is that I could not do it without
my wife, my friends, my law partners, and
my team. While I am thankful for all of
those who assist me, I have to recognize my
wife, Michele. She is an amazing and patient
woman who manages lots of the issues at
home while I am absent. Of course, I am also
blessed with an amazing legislative staff.