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Meeting Details

08/18/2014 at 10:00 am
Stephen F. Austin Building, Room 170
1700 North Congress
Austin, TX 78701

Meeting Materials

Meeting Video

TREC Commission Meeting


These minutes set out the agenda item, the subject matter discussed, and any action taken on each item. To hear the full discussion on any agenda item, click on the link, and you will be taken directly to that section of the meeting video on the right side of the screen.

Note: While the written portion of the minutes below are published in agenda order, the commission may have taken items out of order.

Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 10:01 a.m.

Agenda Item 2 Discussion and possible action to excuse Commissioner absence(s), if any

ACTION: Upon motion of Commissioner Justice, duly seconded by Commissioner Turner, the Commission, by unanimous vote, excused the absence of Commissioner Jones.

Agenda Item 3 Reports by administrator, general counsel, and division directors of monthly activities and statistical data for communications, licensing, education, enforcement, information technology, staff services, recovery trust account and fund activity, and updates on new and ongoing agency activity; questions by commissioners to division directors regarding issues raised by the monthly activities reports; discussion of current topics raised by monthly reports; requests by commissioners for additional information or reports from staff; and introduction of new employees

ACTION: Reports were given by the following:

Douglas Oldmixon, Administrator;

Lorie DeAnda, Director of Reception & Communication Services;

Gwen Jackson, Director of Education & Licensing Services;

Mark Moore, Director of Standards & Enforcement Services;

Tom Watson, Director of Information & Technology Services; and

Melissa Huerta, Director of Staff & Support Services.

Agenda Item 4 Report by Budget Committee

ACTION: Report given by Commissioner Martinez

Agenda Item 5 Report by Executive Committee

ACTION: Report given by Chair Wukasch

Agenda Item 6 Report by Education Standards Advisory Committee

ACTION: Report given by Kerri Lewis for Susan Jones, Chair of the committee

Agenda Item 7 Report by Broker Responsibility Working Group

ACTION: Report given by Kerri Lewis for Mac McClure, Chair of the committee

Agenda Item 8 Report by Texas Real Estate Inspector Committee

ACTION: Report given by Steven Rinehart, Vice-Chair of the committee

Agenda Item 9 General comments from visitors on non-agenda items

COMMENTS: John T. Baker, II, spoke about MCE credit hours.

Agenda Item 10 Executive session to discuss pending litigation or obtain advice of legal counsel on agenda items pursuant to Texas Government Code §551.071

ACTION: The executive session began at 11:00 a.m.

The meeting resumed at 12:20 p.m.

Agenda Item 11 Consideration and possible action regarding proposal for decision in the matter of
a. Docket No. 329-14-1919.REC; Texas Real Estate Commission v. LaTricia R. Williams
b. Docket No. 329-14-2386.REC; Texas Real Estate Commission v. Robin Roger Hauck

NOTE: Audio cuts out briefly as meeting resumes and Ms. Lewis introduces the proposal for decision from the ALJ concerning Ms. Williams.

ACTION: Upon motion of Commissioner Westcott, duly seconded by Commissioner Martinez, the Commission, by unanimous vote, accepted the ALJ's recommendation that the broker license of Ms. Williams be revoked effective 5:00 p.m., September 10, 2014, and Respondent be assessed an administrative penalty of $44,000.

ACTION: Upon motion of Commissioner Justice, duly seconded by Commissioner Arriaga, the Commission, by unanimous vote, accepted the ALJ's recommendation that Mr. Hauck's application for reinstatement be denied.

Agenda Item 12 Discussion and possible action to authorize settlement of recovery fund claims or take other action on
a. RF 14-010 Martinez, Manuel, et al. v. Reyes, Robert, et al.
b. RF 14-013 Jonathan Schultz v. Heart of Texas Real Estate aka Team Lupe, LLC, dba Town Line Properties, LLC, et al.
c. RF 14-014 Daphanie Chess v. Team Lupe L&L, LLC, et al.
d. RF 14-015 Willie Keeler v. Susan Quinones
e. RF 14-006 915 SW 36th Street, LLC, et al. v. San Antonio Smith & Associates, Ltd., et al.

NOTE: No action was taken on 12.a. or 12.e.

ACTION: Upon motion of Commissioner Justice, duly seconded by Commissioner Alley, the Commission, by unanimous vote, approved the payment of actual damages of $4,660.00 plus interest, court costs and reasonable attorney fees in RF 14013, Jonathan Schultz v. Heart of Texas Real estate aka Team Lupe, LLC, dba Town Line Properties, LLC, et al.

ACTION: Upon motion of Commissioner Arriaga, duly seconded by Commissioner Westcott, the Commission, by unanimous vote, approved the payment of actual damages of $5,127.07 plus interest, court costs and reasonable attorney fees in RF 14014 Daphanie Chess v. Team Lupe L&L, LLC, et al.

ACTION: Upon motion of Commissioner Alley, duly seconded by Commissioner Arriaga, the Commission, by unanimous vote, approved the payment of actual damages of $4,150.00 plus interest and court costs in RF 14015, Willie Keeler v. Susan Quinones.

Agenda Item 13 Discussion and possible action to adopt amendments to 22 TAC, Chapter 533, Practice and Procedure, as follows:
a. §533.3, Filing and Notice
b. §533.4, Failure to Answer, Failure to Attend Hearing and Default
c. §533.9, Computation of Time

ACTION: Commissioner Hensley, duly seconded by Commissioner Justice, moved that staff be authorized, on behalf of this Commission to submit for adoption, amendments to 22 TAC §533.3 Filing and Notice, §533.4, Failure to Answer, Failure to Attend Hearing and Default, and the new §533.9, Computation of Time, without changes to the text as previously published in the Texas Register except for any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

Agenda Item 14 Discussion and possible action to adopt amendments to 22 TAC, §535.146, Failure to Properly Account for Money; Commingling

ACTION: Commissioner Justice, duly seconded by Commissioner Arriaga, moved that staff be authorized, on behalf of this Commission to submit for adoption, amendments to new 22 TAC §535.146, Failure to Properly Account for Money; Commingling, without changes to the text as previously published in the Texas Register except for any technical or non-substantive changes required for adoption and to repeal. The motion was adopted by unanimous vote.

Agenda Item 15 Discussion and possible action to repeal sections of 22 TAC Chapter 535, General Provisions as follows:
a. §535.146, Failure to Properly Account for Money; Commingling
b. §535.159, Failing to Properly Deposit Escrow Monies
c. §535.160, Failing to Properly Disburse Escrow Money

ACTION: Commissioner Westcott, duly seconded by Commissioner Martinez, moved that staff be authorized, on behalf of this Commission to repeal 22 TAC §535.146, Failure to Properly Account for Money; Commingling, §535.159, Failing to Properly Deposit Escrow Monies and §535.160, Failing to Properly Disburse Escrow Money, as previously published in the Texas Register except for any technical or non-substantive changes required for the repeal. The motion was adopted by unanimous vote.

Agenda Item 16 Discussion and possible action to adopt amendments to 22 TAC Chapter 541, Rules Relating to the Provisions of Texas Occupations Code, Chapter 53 as follows:
a. §541.1, Criminal Offense Guidelines
b. §541.2, Criminal History Evaluation Letters

ACTION: Commissioner Martinez, duly seconded by Commissioner Turner, moved that staff be authorized, on behalf of this Commission to submit for adoption, amendments to 22 TAC §541.1, Criminal Offense Guidelines and §541.2, Criminal History Evaluation Letters, without changes to the text as previously published in the Texas Register except for any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC Chapter 537 as follows:
a. §537.43 Standard Contract Form TREC No. 36-7, Addendum for Property subject to Mandatory Membership in an Owners' Association
b. §537.51 Standard Contract Form TREC No. 44-1, Addendum for Reservation of Oil, Gas and Other Minerals

ACTION: Commissioner Turner, duly seconded by Commissioner Martinez, moved that staff be authorized, on behalf of this Commission to submit for adoption, amendments to 22 TAC §537.43 Standard Contract Form TREC No. 36-7, Addendum for Property Subject to Mandatory Membership in an Owners' Association and the contract form adopted by reference, without changes to the text as previously published in the Texas Register except for any technical or non-substantive changes required for adoption, and withdraw the proposal for amendments to §537.51 Standard Contract Form TREC No. 44-1, Addendum for Reservation of Oil, Gas and Other Minerals. The motion was adopted by unanimous vote.

COMMENTS: Ezra Johnson from the law firm of Uhl, Fitzsimons, Jewett & Burton, PLLC, stated he was here to answer any questions related to the new Oil & Gas form being proposed in Agenda Item 19.

Agenda Item 18 Discussion and possible action to propose amendments to and repeal sections of 22 TAC Chapter 535, General Provisions as follows:
a. Subchapter A, Definitions
b. Subchapter B, General Provisions Relating to the Requirements of Licensure
c. Subchapter C, Exemptions to Requirements of Licensure
d. Subchapter D, The Commission
e. Subchapter E, Requirements for Licensure
f. Subchapter F, Pre-License Education and Examination
g. Subchapter G, Mandatory Continuing Education
h. Subchapter H, Recovery Fund
i. Subchapter I, Licenses
j. Subchapter J, Fees
k. Subchapter K, Place of Business
l. Subchapter L, Termination of Salesperson’s Association with Sponsoring Broker
m. Subchapter M, Nonresidents
n. Subchapter N, Suspension and Revocation of Licensure
o. Subchapter O, Hearing on Suspension or Revocation of Licensure
p. Subchapter P, Penalty for Unlicensed Activity
q. Subchapter Q, Administrative Penalties
r. Subchapter R, Real Estate Inspectors
s. Subchapter S, Residential Rental Locators
t. Subchapter T, Easement or Right-of-Way Agents

ACTION: Commissioner Justice, duly seconded by Commissioner Hensley, moved that staff be authorized, on behalf of this Commission to submit the proposed amendments to and repeal of rules in 22 TAC Chapter 535, as presented, with the forms adopted by reference, along with any technical or non-substantive changes required for proposal to the Texas Register for publication and public comment. The motion was adopted with Commissioner Arriaga voting no.

COMMENTS: Rita Santamaria, Owner, Champions School of Real Estate

COMMENTS: Lynn Morgan, Owner, Austin Institute of Real Estate

COMMENTS: Stan Harbuck, A Better School of Building Inspection

COMMENTS: Scott Hilton

COMMENTS: Diane McCoy, representing ESAC

Agenda Item 19 Discussion and possible action to propose amendments to 22 TAC Chapter 537, Professional Agreements and Standard Contracts , including:
a. §537.11 Use of Standard Contract Forms
b. §537.51 Standard Contract Form TREC No. 44-1, Addendum for Reservation of Oil, Gas and Other Minerals

ACTION: Commissioner Martinez, duly seconded by Commissioner Westcott, moved that staff be authorized, on behalf of this Commission to submit the proposed amendments to 22 TAC Chapter 537, as presented, including the form adopted by reference in §537.51, along with any technical or non-substantive changes required for proposal to the Texas Register for publication and public comment. The motion was adopted by unanimous vote.

Agenda Item 20 Discussion and possible action to propose amendments to 22 TAC Chapter 539, Provisions of the Residential Service Company Act

NOTE: Agenda items 20 & 34 are combined into Agenda item 20.

ACTION: Commissioner Alley, duly seconded by Commissioner Martinez, moved that staff be authorized, on behalf of this Commission to submit the proposed amendments to 22 TAC Chapter 539, as presented, including the forms adopted by reference, along with any technical or non-substantive changes required for proposal to the Texas Register for publication and public comment. The motion was adopted by unanimous vote.

Agenda Item 21 Discussion and possible action to propose amendments to 22 TAC Chapter 543, Rules Relating to the Provisions of the Texas Timeshare Act

ACTION: Commissioner Hensley, duly seconded by Commissioner Martinez, moved that staff be authorized, on behalf of this Commission to submit the proposed amendments to 22 TAC Chapter 543, as presented, along with any technical or non-substantive changes required for proposal to the Texas Register for publication and public comment. The motion was adopted by unanimous vote.

Agenda Item 22 Discussion and possible action to close the review of :
a. 22 TAC, Chapter 535, General Provisions
b. 22 TAC, Chapter 541, Rules Relating to the Provisions of Texas Occupations Code, Chapter 53

ACTION: Commissioner Arriaga, duly seconded by Commissioner Martinez, moved that staff be authorized, on behalf of this Commission to close the rule review of 22 TAC Chapter 535, General Provisions and Chapter 541, Rules Relating to the Provision of Texas Occupations Code, Chapter 53. The motion was adopted by unanimous vote.

Agenda Item 23 Discussion and possible action regarding the Real Estate Recovery Trust Account and the Real Estate Inspection Recovery Fund

No action was taken.

Agenda Item 24 Discussion and possible action to approve the Agency Strategic Plan for FY 2015-2019

ACTION: Commissioner Turner, duly seconded by Commissioner Arriaga, moved that the Commission approve the Agency Strategic Plan for FY 2015-2019 as presented. The motion was adopted by unanimous vote.

Agenda Item 25 Discussion and possible action to adopt FY 2015 TREC budget

ACTION: Commissioner Martinez, duly seconded by Commissioner Justice, moved that the Commission adopt the FY 2015 TREC budget as presented and appoint Commissioner Alley as the liaison between TREC and the Facilities Commission with Commissioner Arriaga as the designated proxy for Commissioner Alley in the event he is not available to attend. The motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action to approve TREC Annual Internal Audit Report 2014

NOTE: Agenda Item 26 was moved after Agenda Item 8.

ACTION: Commissioner Arriaga, duly seconded by Commissioner Alley, moved to approve the TREC Internal Audit Report 2014 as presented. The motion was adopted by unanimous vote.

Agenda Item 27 Discussion and possible action to approve SAO Audit Report

No action was taken.

Agenda Item 28 Discussion and possible action to approve the Broker Responsibility course for 2015-16

ACTION: Commissioner Martinez, duly seconded by Commissioner Justice, moved that the Commission adopt the Broker Responsibility course for 2015-16 as presented. The motion was adopted by unanimous vote.

Agenda Item 29 Discussion and possible action to approve a statutory per diem and travel reimbursement policy for Commission members

ACTION: Commissioner Justice, duly seconded by Commissioner Arriaga, moved that the Commission approve the statutory per diem and travel reimbursement policy as presented. The motion was adopted by unanimous vote.

Agenda Item 30 Discussion and possible action regarding “coming soon” pocket listings

No action was taken.

Agenda Item 31 Discussion and possible action regarding new “.realty” domain

No action was taken.

Agenda Item 32 Discussion regarding disclosure of foreign citizenship in real estate contracts

No action was taken.

Agenda Item 33 Discussion and possible action to approve changes to or new TREC forms:
a. Renewal for Easement or Right-of-Way Registration by an Individual or Business (ERW RF-4)
b. Certification of Completion of Ride Along Inspection Continuing Education Course Session (INS-RA-CRT-1)
c. Certification of Completion of Ride Along Inspection Substitute Experience Course Session (INS-RA-SE-CRT-0)
d. Certification of Instruction of Ride Along Inspection Course Session (INS-RA-INPI-0)

ACTION: Commissioner Justice, duly seconded by Commissioner Turner, moved that the Commission approve changes to TREC forms ERW RF-4, Renewal for Easement or Right-of-Way Registration by an Individual or Business, INS-RA-CRT-1, Certification of Completion of Ride Along Inspection Continuing Education Course Session, and new forms INS-RA-SE-CRT-0, Certification of Completion of Ride Along Inspection Substitute Experience Course Session and INS-RA-INPI-0, Certification of Instruction of Ride Along Inspection Course Session, as presented, along with any technical and non-substantive changes. The motion was adopted by unanimous vote.

Agenda Item 34 Discussion and possible action to approve changes to TREC forms:
a. Annual Report by Residential Service Company (RSC 6-4)
b. Mid-Year Report by Residential Service Company (RSC 7-3)

NOTE: see above - included with Agenda Item 20.

Agenda Item 35 Discussion and possible action regarding future agenda items

Commissioner Turner requested that carrying forward MCE hours be looked at in the future.

Agenda Item 36 Discussion and possible action to schedule future meetings

ACTION: The Commission scheduled a workshop meeting for the afternoon of 11/17/14 and moved its regular meeting to 11/18/14.

Agenda Item 37 Adjourn

ACTION: The meeting was adjourned at 3:10 p.m.