Agenda Item 1 Call to order and pledges of allegiance

ACTION: The meeting was called to order at 10:01 a.m.

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

ACTION: Chair Wukasch, duly seconded by Commissioner Jones moved to excuse the absence of Commissioner Alley.  The motion was adopted by unanimous vote.

NOTE: Commissioner Martinez joined the meeting

Agenda Item 3 Appointments to Broker Lawyer Committee

ACTION: Chair Wukasch reappointed Greg Glenn from Amarillo and Charlie Still from DFW to the Broker-Lawyer Committee for six year terms.  Chair Wukasch also recognized 12 year lawyer member, Chuck Jacobus, who is retiring

Agenda Item 4 Reports by executive director, 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 given by the following:

Douglas Oldmixon, Executive Director

Lorie DeAnda, Director of Reception & Communication Services

Gwen Jackson, Director of Education & Licensing Services

Mark Moore, Director of Standards & Enforcement Services

Steve Spyropoulos, Director of Information & Technology Services

Priscilla Pipho, Director of Staff & Support Services

Agenda Item 5 Report by Enforcement Committee

ACTION: Report given by Commissioner Turner

Agenda Item 6 Report by Budget Committee

ACTION: Report given by Commissioner Martinez

Agenda Item 7 Report by Education Standards Advisory Committee

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

Agenda Item 8 Report by Texas Real Estate Inspector Committee

ACTION: Report given by Dianna Rose, Chair of the committee

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

COMMENTS:

Ed Doran

Rita Santamaria

Agenda Item 36 Discussion and possible action regarding TREC Annual Internal Audit Reports 2017

ACTION: Commissioner Jones, duly seconded by Commissioner Turner, moved to accept the TREC Annual Internal Audit Reports 2017 as presented.  The motion was adopted by unanimous vote.

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 Commission went into Executive Session at 11:10 a.m.

The meeting resumed at 12:50 p.m.

NOTE: Commissioner Martinez was not present for Agenda Item 11.

Agenda Item 11 Discussion and possible action to authorize settlement of recovery fund claims or take other action on:
a. RF 17003; Irene Conklin v. Susan Quinones, Gilbert Quinones, RE/MAX Platinum Real Estate
b. RF 17010; Iglesia de Jesuscristo Palabra Miel Pascadena v. Adobe Title LLC, et al.

NOTE: Commissioner Jones recused himself on Agenda Item 11.a.

ACTION on 11.a.: Upon motion of Commissioner Arriaga, duly seconded by Commissioner Turner, the Commission, by unanimous vote, authorized payment of actual damages, attorney's fees, court costs and interest as awarded in the judgment plus reasonable post-judgment attorney's fees.

ACTION on 11.b.: Upon motion of Commissioner Arriaga, duly seconded by Commissioner Leonard, the Commission, by unanimous vote, authorized payment of actual damages, less amount recovered from other defendants, plus court costs and interest as awarded in the judgment, plus reasonable post-judgment attorney's fees.

NOTE: Commissioner Martinez returned to the meeting.

Agenda Item 12 Consideration and possible action regarding proposal for decision in the matter of
a. Docket No. 329-17-1259.REC; TREC v. Ryan Jon Loofboro
b. Docket No. 329-17-2258.REC; TREC v. Deon Edwards
c. Docket No. 329-17-1594.REC; TREC v. Quelendria Mitchell
d. Docket No. 329-17-3031.REC; Yo-Shin Joshua Pao v. TREC
e. Docket No. 329-17-2601.REC; TREC v. Lawrence Cavalier
f. Docket No. 329-17-1425.REC; Randall B. Dawson v. TREC
g. Docket No. 329-17-1841.REC; TREC v. Smith Real Estate Group, LLC
h. Docket No. 329-17-3405.REC; In the Matter of Tyrice Brown Tryon Application for Real Estate Sales Agent License
i. Docket No. 329-17-3012.REC; TREC v. Robert Andrew Stidham
j. Docket No. 329-17-3162.REC; In the Matter of Christopher Sasso Application for Real Estate Sales Agent License
k. Docket No. 329-17-3119.REC; TREC v. Noel Joshua George

ACTION on 12.a.: Upon motion of Commissioner Arriaga, duly seconded by Commissioner Westcott, the Commission, by unanimous vote, adopted the PFD as written to assess a $3,000.00 administrative penalty and to revoke the broker license of Ryan Jon Loofboro 

ACTION on 12.b.: Upon motion of Commissioner Jones, duly seconded by Chair Wukasch, the Commission, by unanimous vote, adopted the PFD as written to assess a $6,500.00 administrative penalty, deny the renewal application and revoke the sales agent license of Deon Edwards

ACTION on 12.c.: Upon motion of Commissioner Stephens, duly seconded by Chair Wukasch, the Commission, by unanimous vote, adopted the PFD as written to deny the sales agent application of Quelendria Mitchell

ACTION on 12.d. Upon motion of Commissioner Westcott, duly seconded by Chair Wukasch, the Commission, by unanimous vote, adopted the PFD as written to deny the sales agent application of  Yo-Shin Joshua Pao

ACTION on 12.e. Upon motion of Commissioner Martinez, duly seconded by Commissioner Jones, the Commission, by unanimous vote, adopted the PFD as written to deny the sales agent application of Lawrence Cavalier

ACTION on 12.f. Upon motion of Commissioner Jones, duly seconded by Commissioner Arriaga, the Commission by unanimous vote, adopted the PFD as written to deny the reinstatement sales agent application of Randall B. Dawson

ACTION on 12.g. Commissioner Westcott, duly seconded by Commissioner Arriaga, moved to modify the PFD as written by rejecting part of the ALJ's legal analysis because the ALJ failed to properly interpret and apply applicable laws, instructing general counsel to modify applicable Findings of Fact and Conclusions of Law for the reasons stated for denial of the business entity broker renewal application of Smith Real Estate Group, LLC. Commissioner Martinez, duly seconded by Commissioner Stephens made a friendly amendment to include the ALJ's name throughout the Final Order. The motion as amended was adopted by unanimous vote

ACTION on 12.h. Upon motion of Commissioner Martinez, duly seconded by Commissioner Leonard, the Commission, by unainimous vote, adopted the PFD as written to deny the sales agent application of Tyrice Brown Tryon

ACTION on 12.i.: Upon motion of Chair Wukasch, duly seconded by Commissioner Martinez, the Commission, by unanimous vote, adopted the PFD as written to deny the sales agent application of Robert Andrew Stidham

NOTE: Chair Wukasch recused herself on Agenda Item 12.j.

ACTION on 12.j. Upon motion of Commissioner Arriaga, duly seconded by Commissioner Martinez, the Commission, by unanimous vote, adopted the PFD as written to deny the sales agent application of Christopher Sasso.

ACTION on 12.k. Commissioner Jones, duly seconded by Commissioner Martinez moved to modify the PFD as written and to deny the sales agent application of Noel Joshua George due to the ALJ's improper interpretation of 22 TAC §541.1(a)(14). Commissioner Jones, duly seconded by Commissioner Leonard amended the motion to reject part of the ALJ's legal analysis because the ALJ failed to properly interpret and apply additional applicable laws, instructing general counsel to modify applicable Findings of Fact and Conclusions of Law to reflect the reasons stated for denial of Mr. George’s application for a license. The motion as amended was adopted by unanimous vote

Agenda Item 13 Discussion and possible action to adopt emergency amendments to 22 TAC §535.154, Advertising

ACTION: Commissioner Martinez, duly seconded by Commissioner Westcott, moved that staff is authorized on behalf of this Commission to submit for adoption on an emergency basis, amendments to 22 TAC §535.154, Advertising, as presented, to the Texas Register along with 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 emergency amendments to 22 TAC §535.300, Advertising by Residential Rental Locators

ACTION: Commissioner Leonard, duly seconded by Commissioner Jones, moved that staff is authorized on behalf of this Commission to submit for adoption on an emergency basis, amendments to 22 TAC §535.300, Advertising by Residential Rental Locators, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption.  The motion was adopted with Commissioner Arriaga abstaining.

Agenda Item 15 Discussion and possible action to adopt amendments to 22 TAC §533.8, Motions for Rehearing

ACTION: Commissioner Turner, duly seconded by Commissioner Arriaga, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §533.8, Motions for Rehearing, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

Agenda Item 16 Discussion and possible action to adopt amendments to 22 TAC §535.53, Business Entity; Designated Broker

ACTION: Commissioner Jones, duly seconded by Commissioner Westcott, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.53, Business Entity; Designated Broker, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted with Commissioner Stephens abstaining.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC §535.56, Education and Requirements for a Broker License

ACTION: Commissioner Westcott, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.56, Education and Requirements for a Broker License, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

NOTE: Commissioner Arriaga temporarily left the meeting.

Agenda Item 18 Discussion and possible action to adopt amendments to 22 TAC §535.64, Content Requirements for Qualifying Real Estate Courses

ACTION: Commissioner Turner, duly seconded by Commissioner Jones, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.64, Content Requirements for Qualifying Real Estate Courses, and the forms adopted by reference, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

Agenda Item 19 Discussion and possible action to adopt amendments to 22 TAC §535.91, Renewal of a Real Estate License

ACTION: Commissioner Martinez, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.91, Renewal of a Real Estate License, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

NOTE: Commissioner Arriaga returned to the meeting.

Agenda Item 20 Discussion and possible action to propose amendments to 22 TAC §531.18, Consumer Information

ACTION: Commissioner Arriaga, duly seconded by Commissioner Martinez, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §531.18, Consumer Information, 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 with Commissioner Stephens voting nay.

Agenda Item 21 Discussion and possible action to propose amendments to 22 TAC §531.20, Information About Brokerage Services

ACTION: Commissioner Westcott duly seconded by Commissioner Martinez, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §531.20, Information About Brokerage Services, 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 with Commissioner Stephens voting nay.

Agenda Item 22 Discussion and possible action to propose amendments to 22 TAC §533.3, Filing and Notice

ACTION: Commissioner Leonard, duly seconded by Commissioner Jones, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §533.3, Filing and Notice, 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 with by unanimous vote.

Agenda Item 23 Discussion and possible action to propose amendments to 22 TAC §534.3, Employee Training and Education

ACTION: Commissioner Westcott, duly seconded by Commissioner Jones, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §534.3, Employee Training and Education, 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 with Commissioner Stephens abstaining.

Agenda Item 24 Discussion and possible action to propose amendments to 22 TAC §535.17, Broker Price Opinion or Comparative Market Analysis

ACTION: Commissioner Martinez, duly seconded by Commissioner Arriaga, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §535.17, Broker Price Opinion or Comparative Market Analysis, 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 38 Discussion and possible action regarding approval of the Self Evaluation Report to be submitted to the Sunset Advisory Commission

ACTION: Commissioner Arriaga, duly seconded by Commissioner Stephens, moved that the Commission and/or the Executive Committee at the Executive Committee's discretion, is authorized to approve the final Self Evaluation Report to be submitted to the Sunset Advisory Commission on or before September 1, 2017. The motion was adopted by unanimous vote.

NOTE: Commissioner Arriaga and Commissioner Westcott exited the meeting and did not return.

Agenda Item 25 Discussion and possible action to propose amendments to 22 TAC §535.65, Responsibilities and Operations of Providers of Qualifying Courses

ACTION: Commissioner Stephens, duly seconded by Commissioner Martinez, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §535.65, Responsibilities and Operations of Providers of Qualifying Courses, 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 26 Discussion and possible action to propose repeal and amendments to 22 TAC, Chapter 535, Subchapter N, as follows:
a. §535.141, Initiation of Investigation
b. repeal §535.154, Advertising
c. new §§535.154, Registration and Use of Alternate, Team and Assumed Business Names Used in Advertisements and 535.155, Advertisements

ACTION on 26.a. Commissioner Leonard, duly seconded by Commissioner Martinez moved that staff is authorized on behalf of this Commission to submit the proposed amendments to §535.141, Initiation of Investigation, 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

ACTION on 26.b.-c. Commissioner Martinez, duly seconded by Commissioner Jones, moved that staff is authorized on behalf of this Commission to submit the proposed repeal of 22 TAC §535.154, Advertising, new §534.154, Registration and Use of Alternate, Team and Assumed Business Names Used in Advertisements and new §535.155, Advertisements, 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 27 Discussion and possible action to propose amendments to 22 TAC §535.191, Schedule of Administrative Penalties

ACTION: Commissioner Jones, duly seconded by Commissioner Turner moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §535.191, Schedule of Administrative Penalties, 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 28 Discussion and possible action to propose amendments to 22 TAC §535.300, Advertising by Residential Rental Locators

ACTION: Commissioner Turner, duly seconded by Commissioner Jones moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §535.300, Advertising by Residential Rental Locators, 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 29 Discussion and possible action to propose amendments to 22 TAC §537.11, Use of Standard Contract Forms

ACTION: Commissioner Martinez, duly seconded by Commissioner Jones moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §537.11, Use of Standard Contract Forms, 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 with Commissioner Stephens voting nay.

Agenda Item 30 Discussion and possible action to propose amendments to 22 TAC Chapter 537 as follows:
a. §537.20; Standard Contract Form TREC No. 9-12;
b. §537.28; Standard Contract Form TREC No. 20-13;
c. §537.30; Standard Contract Form TREC No. 23-14;
d. §537.31; Standard Contract Form TREC No. 24-14;
e. §537.32; Standard Contract Form TREC No. 25-11;
f. §537.37; Standard Contract Form TREC No. 30-12;
g. new §537.55; Standard Contract Form TREC No. 48-0;
h. new §537.56. Standard Contract Form TREC No. 49-0

ACTION: Commissioner Leonard, duly seconded by Commissioner Jones moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC Chapter 537, and the forms adopted by reference, 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 31 Discussion and possible action to propose amendments to 22 TAC Chapter 539 as follows:
a. §539.31, Definitions
b. §539.41, Disclosures
c. §539.51, “Employed By” Defined
d. §539.61, Application for Residential Service Company License
e. §539.62, Application to Approve Evidence of Coverage/Schedule of Charges
f. repeal §539.63, Termination of Application; new §539.63, Application to Approve Contract
g. §539.64, Mailing Address and Other Contact Information
h. §539.65, Change in Company Ownership or Officers
i. §539.71, Miscellaneous Forms
j. §539.81, Funded Reserves
k. §539.82, Security
l. §539.91, Annual Report
m. §539.121, Examinations
n. repeal §539.137, Mid-Year Report
o. repeal §539.160, Copy of Residential Service Company Contract
p. §539.231, Fees

ACTION: Commissioner Stephens, duly seconded by Commissioner Jones moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC Chapter 539, 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 32 Discussion and possible action to propose amendments to 22 TAC §535.71, Approval of CE Providers

ACTION: Commissioner Martinez, duly seconded by Commissioner Jones moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §535.71, Approval of CE Providers, 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 33 Discussion and possible action to propose amendments to 22 TAC Chapter 535, Subchapter R, as follows:
a. §535.211, Professional Liability Insurance, or Any Other Insurance that Provides Coverage for Violations of Subchapter G of Chapter 1102
b. §535.218, Continuing Education Required for Renewal

ACTION: Commissioner Martinez, duly seconded by Commissioner Leonard moved that staff is authorized on behalf of this Commission to submit the proposed amendments to §535.211, Professional Liability Insurance, or Any Other Insurance that Provides Coverage for Violations of Subchapter G of Chapter 1102 and §535.218, Continuing Education Required for Renewal, as presented, along with the requested changes and 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 34 Discussion and possible action regarding adoption of TREC FY 2018 annual budget and budget-related policies

ACTION: Commissioner Martinez, duly seconded by Commissioner Stephens, moved the Commission approve the TREC FY 2018 annual budget as presented.  Commissioner Martinez amended his motion to include budget-related policies.  The motion as amended was adopted by unanimous vote.

Agenda Item 35 Discussion of legislative matters

ACTION: Discussion by Executive Director Oldmixon

Agenda Item 37 Discussion and possible action to approve the text of Legal Update I and II required continuing education courses for 2018-19

ACTION: Commissioner Jones, duly seconded by Commissioner Leonard moved the Commission approve the text of Legal Update I and II required continuing education courses for 2018-19 as presented, along with any technical or non-substantive changes and graphics needed for publication. The motion was adopted by unanimous vote.

Agenda Item 39 Discussion and possible action to approve Statement of Policies for the Texas Real Estate Inspector Committee

ACTION: Commissioner Leonard, duly seconded by Commissioner Martinez moved the Commission approve Statement of Policies for the Texas Real Estate Inspector Committee as presented. The motion was adopted by unanimous vote.

Agenda Item 40 Discussion and possible action to approve new or changes to TREC forms:
a. OP-H; Seller’s Disclosure of Property Condition
b. SF3-3; Sales Agent Sponsorship Form-3

ACTION: Commissioner Turner, duly seconded by Commissioner Martinez moved the Commission approve changes to TREC forms as presented. The motion was adopted by unanimous vote.

Agenda Item 41 Discussion and possible action regarding future agenda items

ACTION: Commissioner Arriaga asked to talk about the Commission accepting checks or other payments in the future.  Commissioner Martinez asked about the Commission making a statement concerning property tax reform in the state of Texas and was advised by General Counsel it was not something that could be put on the agenda.

Agenda Item 42 Discussion and possible action to schedule future meetings

ACTION: The next meeting of the Commission is scheduled for November 13, 2017 at 10:00 a.m., the winter meeting of the Commission is scheduled for February 12, 2018.

Agenda Item 43 Adjourn

ACTION: The meeting was adjourned at 4:05 p.m.