Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 9:58 a.m.

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

ACTION: Commissioner Turner, duly seconded by Commissioner Stephens, moved to excuse the absence of Commissioner Westcott.  The motion was adopted by unanimous vote.
Agenda Item 3 Welcome new Commission members and recognize outgoing Commission members

ACTION: Chair Wukasch welcomed new Commission members Micheal Williams, Jan Fite Miller and DeLora Wilkinson and recognized outgoing members Troy Alley, Weston Martinez and Bill Jones with a plaque and flag.

Agenda Item 4 Appointments to the Education Standards Advisory Committee

ACTION: Chair Wukasch thanked outgoing members: Bill Evans, Bill Bradshaw, Andy Hemmings, Rita Klein, Ronnie Willis and Pat Strong and appointment new members: Sarah Norman, Jason Woodward, Felicia Peters, Marcella Gomez, Scott Kesner,and Robert Cook.

Agenda Item 5 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

Beverly Rabenberg, Program Manager for Timeshare and Residential Service Companies

Steve Spyropoulos, Director of Information & Technology Services

Priscilla Pipho, Director of Staff & Support Services

Agenda Item 6 Report by Enforcement Committee

ACTION: Report given by Commissioner Turner, Chair of the committee

Agenda Item 7 Report by Education Standards Advisory Committee

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

Agenda Item 8 Report by Texas Real Estate Inspector Committee

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

Agenda Item 33 Discussion and possible action regarding Annual Internal Audit Plan

ACTION: Commissioner Arriaga, duly seconded by Commissioner Stephens, moved to accept the TREC Annual Internal Audit Plan as presented.  The motion was adopted by unanimous vote.

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

COMMENTS:

Ned Muñoz, Texas Association of Builders

Kaki Lybbert, Texas Association of REALTORS®

Jacqueline Wickware

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 11:45 a.m.

The meeting resumed at 1:25 p.m.

Agenda Item 11 Consideration and possible action regarding rehearing on the proposal for decision in the matter of Docket No. 329-17-1425.REC; Randall B. Dawson v. TREC

ACTION: Commissioner Leonard, duly seconded by Commissioner Arriaga, moved to reject and modify the PFD as written and grant a probationary sales agent license to Randall B. Dawson to coincide with his community supervision through January 31, 2023, because the ALJ did not recognize the mitigating factors in the record accurately or adequately.  Commissioner Turner offered a friendly amendment that Mr. Dawson be restricted from transporting clients in his vehicle and that Mr. Dawson’s probationary license be revoked should he violate his community supervision. Commissioner Leonard, duly seconded by Commissioner Arriaga, accepted the amendment and the amended motion was adopted with Chair Wukasch and Commissioner Stephens voting no.

Agenda Item 12 Consideration and possible action regarding proposal for decision in the matter of

a. Docket No. 329-17-3290.REC; TREC v. Billy Dee Deeds

b. Docket No. 329-17-4638.REC; TREC v. Jacqueline Sue Wickware

c. Docket No. 329-17-3905.REC; TREC v. Alexander Brian Leake

d. Docket No. 329-17-3697.REC; Robert Wayne Spier, Jr. v. TREC

e. Docket No. 329-17-3715.REC; Nikki Araguz Loyd v. TREC

ACTION on 12.a.: Commissioner Wilkinson, duly seconded by Commissioner Stephens, moved to accept the PDF as written to deny the sales agent application of Billy Dee Deeds. The motion was adopted with Commissioner Turner and Commissioner Williams voting no.

ACTION on 12.b.: Commissioner Stephens, duly seconded by Commissioner Leonard, moved to accept the PFD as written to revoke the real estate broker license of Jacqueline Sue Wickware and to assess an administrative penalty of $12,000. The motion was adopted by unanimous vote.

NOTE: Commissioners Leonard, Miller and Wukasch recused themselves in item 12.c.

ACTION on 12.c.: Commissioner Arriaga, duly seconded by Commissioner Wilkinson moved to reject and modify the PFD as written and revoke the sales agent license of Alexander Brian Leake and to assess an administrative penalty of $5,000 because the ALJ failed to properly interpret and apply applicable law and the Commission’s Rules. The motion was adopted.

ACTION on 12.d.: Commissioner Williams, duly seconded by Commissioner Arriaga moved to adopt the PFD as written to grant the sales agent license application of Robert Wayne Spier, Jr. The motion was adopted with Commissioner Turner voting no.

ACTION on 12.e.: Commissioner Stephens, duly seconded by Commissioner Leonard moved to reject and modify the PFD as written and deny the sales agent license application of Nikki Araguz Loyd because the ALJ failed to properly interpret and apply applicable law and the Commission’s Rules. The motion was adopted by unanimous vote.

Agenda Item 13 Discussion and possible action to adopt amendments to 22 TAC §531.18, Consumer Information

ACTION: Commissioner Arriaga, duly seconded by Commissioner Wilkinson, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §531.18, Consumer Information, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted unanimously.

Agenda Item 14 Discussion and possible action to adopt amendments to 22 TAC §531.20, Information About Brokerage Services

ACTION: Commissioner Turner, duly seconded by Commissioner Miller, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §531.20, Information About Brokerage Services, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted with Commissioner Stephens voting no.

Agenda Item 15 Discussion and possible action to adopt amendments to 22 TAC §533.3, Filing and Notice

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §533.3, Filing and Notice, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted with Commissioner Stephens voting no.

Agenda Item 16 Discussion and possible action to adopt amendments to 22 TAC §534.3, Employee Training and Education

ACTION: Commissioner Miller, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §534.3, Employee Training and Education, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted with Commissioner Stephens voting no. Commissioner Williams was not present and did not vote.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC §535.17, Broker Price Opinion or Comparative Market Analysis

ACTION: Commissioner Leonard, duly seconded by Commissioner Miller, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.17, Broker Price Opinion or Comparative Market Analysis, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted. Commissioner Stephens opposed the amendments. Commissioner Williams was not present and did not vote.

NOTE: Commissioner Arriaga left the meeting and did not return.

Agenda Item 18 Discussion and possible action to adopt amendments to 22 TAC §535.65, Responsibilities and Operations of Providers of Qualifying Courses

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to withdraw the current proposal and submit for re-proposal, 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 re-proposal, to the Texas Register for publication and public comment. The motion was adopted with Commissioner Stephens voting no.

Agenda Item 19 Discussion and possible action to adopt 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 of Alternate, Team and Assumed Business Names Used in Advertisements and 535.155, Advertisements

ACTION on 19.a.: Commissioner Stephens moved to reject the amendments. The motion failed. Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.141, Initiation of Investigation, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted unanimously.

ACTION on 19.b. and c.: Commissioner Miller, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, the repeal of 22 TAC §535.154, Advertising, new §535.154 Registration and Use of Alternate, Team and Assumed Business Names Used in Advertisement, and new §535.155, Advertisements, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption with an effective date of May 15, 2018. The motion was adopted unanimously.

Agenda Item 20 Discussion and possible action to adopt amendments to 22 TAC §535.191, Schedule of Administrative Penalties

ACTION: Commissioner Stephens moved to reject the amendments. The motion failed. Commissioner Leonard, duly seconded by Commissioner Williams, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.191, Schedule Administrative Penalties, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted with Commissioner Stephens voting no and Commissioner Wilkinson abstaining.

Agenda Item 21 Discussion and possible action to adopt amendments to 22 TAC §535.300, Advertising by Residential Rental Locators

ACTION: Commissioner Williams, duly seconded by Commissioner Wilkinson, moved that staff is authorized on behalf of this Commission to submit for adoption, 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 with an effective date of May 15, 2018. The motion was adopted with Commissioner Stephens voting no.

Agenda Item 22 Discussion and possible action to adopt amendments to 22 TAC §537.11, Use of Standard Contract Forms

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §537.11, Use of Standard Contract Forms, as presented, to the Texas Register along with any technical or non-substantive changes required for adoption with an effective date of May 15, 2018. The motion was adopted with Commissioner Stephens voting no.

Agenda Item 23 Discussion and possible action to adopt 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 Miller, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to withdraw the current proposal and submit for re-proposal, amendments to 22 TAC Chapter 537, and the forms adopted by reference, as presented, along with any technical or non-substantive changes required for re-proposal to the Texas Register for publication and public comment. The motion was adopted unanimously.

Agenda Item 24 Discussion and possible action to adopt amendments to 22 TAC Chapter 539, Relating to the Residential Service Company Act, 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 Miller, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC Chapter 539, as presented, to the Texas Register, along with any technical or non-substantive changes required adoption, with an effective date of January 1, 2018. The motion was adopted by unanimous vote.

Agenda Item 25 Discussion and possible action to adopt amendments to 22 TAC §535.71, Approval of CE Providers

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.71, Approval of CE Providers, as presented, to the Texas Register, along with any technical or non-substantive changes required adoption. The motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action to adopt 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 on 26.a.: Commissioner Williams, duly seconded by Commissioner Leonard, moved that the Commission table the proposed amendments until the February 2018 Commission meeting. The motion was adopted by unanimous vote.

ACTION on 26.b.: Commissioner Turner, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC §535.218, Continuing Education Required for Renewal, as presented, to the Texas Register, along with any technical or non-substantive changes required adoption. The motion was adopted by unanimous vote.

Agenda Item 27 Discussion and possible action to propose amendments to 22 TAC §541.1, Criminal Offense Guidelines

ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §541.1, Criminal Offense Guidelines, 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 §535.52, Moral Character Requirements for Individual Applicant

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC §535.52, Moral Character Requirements for Individual Applicant, 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 approve the rule review plan for FY2018

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit the rule plan to the Texas Register for publication and public comment. The motion was adopted by unanimous vote.

Agenda Item 30 Discussion and possible action to  propose the review of
22 TAC Chapter 531, Canons of Professional Ethics
22 TAC Chapter 533, Practice and Procedure
22 TAC Chapter 534, General Administration
22 TAC Chapter 541, Rules Relating to the Provisions of the Texas Occupations Code, Chapter 53

ACTION: Commissioner Williams, duly seconded by Commissioner Leonard, moved that staff is authorized on behalf of this Commission to submit the review of 22 TAC Chapter 531, Canons of Professional Ethics, 22 TAC Chapter 533, Practice and Procedure, 22 TAC Chapter 534, General Administration, and 22 TAC Chapter 541, Rules Relating to the Provisions of Texas Occupations Code, Chapter 53, as presented, to the Texas Register. The motion was adopted by unanimous vote.

Agenda Item 31 Discussion and possible action regarding agency response to Hurricane Harvey

ACTION: Commissioner Turner, duly seconded by Commissioner Stephens, moved that the Commission ratify the action approved by the Commission Chair and the Governor’s office to extend application and renewal deadlines following Hurricane Harvey for all applicants and license holders in the State to October 31, 2017, and for those in the 60-county disaster area declared by Governor Abbott up to February 28, 2018. The motion was adopted by unanimous vote.

Agenda Item 32 Discussion and possible action regarding acceptable forms of payment made to the agency

No action was taken.

Agenda Item 34 Discussion and possible action to approve new or changes to TREC forms:
a. AFF-I, Affidavit in Support of Claim for Inspector Experience
b. RSC 1-4, Application for Residential Service Company License
c. RSC 2-5, Residential Service Company Bond
d. RSC 6-6, Annual Report by Residential Service Company
e. RSC 7-5, Mid-Year Report by Residential Service Company
f. RSC 8-1, Residential Service Company Notice of Modification
g. RSC 9-1, Consent to Service of Process
h. RSC 10-0, Application to Approve Residential Service Contract
i. RSC 11-0, Application to Approve/File Schedule of Charges

ACTION: Commissioner Stephens, duly seconded by Commissioner Williams, moved that the Commission approve new or changes to TREC forms as presented with an immediate effective date for Agenda Item 34.a. and an effective date of January 1, 2018, for the RSC forms in Agenda Items 34.b. through 34.i. The motion was adopted by unanimous vote.

Agenda Item 35 Discussion and possible action regarding future agenda items

ACTION: Chair Wukasch requested the following items be added to the next agenda:
1. Criminal activity disclosure questions on the applications and renewals
2. Ratification of TREC Budget re-allocation
3. Accepting appliations for new Broker Responsibility Working Group

Executive Director Oldmixon indicated he would give an update on the Long Term Facilities Master Plan

Agenda Item 36 Discussion and possible action to schedule future meetings

ACTION: The next meeting is scheduled for February 12, 2018, at 10:00 a.m. The Spring meeting is scheduled for May 7, 2018.

Agenda Item 37 Adjourn

ACTION: The meeting was adjourned at 4:35 p.m.