Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 10:03 a.m.

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

ACTION: Commissioner Miller, duly seconded by Commissioner Turner, moved to excuse the absence of Commissioner Stephens.  The motion was adopted by unanimous vote.

Agenda Item 3 Reports by executive director, deputy 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 were given by the following:
Douglas Oldmixon, Executive Director
Tony Slagle, Deputy Executive Director
Christina Johnson, Training Specialist, 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 4 Report by Budget Committee

ACTION: Report given by Commissioner Westcott

Agenda Item 5 Report by Long Term Facilities Committee

ACTION: Report given by Executive Director Oldmixon

Agenda Item 6 Report by Education Standards Advisory Committee

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

Agenda Item 7 Report by Broker Responsibility Working Group

ACTION: Report given by Bill 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 28 Discussion and possible action regarding recommendations from the Texas Real Estate Inspector Committee regarding
a.  Financial responsibility requirements under §1102.1141 Texas Occupations Code
b.  Repeal the Real Estate Recovery Fund under Subchapter H, Chapter 1102 Texas Occupations Code

ACTION: Commissioner Leonard, duly seconded by Commissioner Miller moved to remand this matter back to the Inspector Committee.  The motion was adopted by unanimous vote.

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

ACTION: Comments given by:
Rita Santamaria, Champions School of Real Estate
Henry Britt, Champions School of Real Estate
Kimberly Dydalewicz, Champions School of Real Estate
Curt Knobloch, Champions School of Real Estate

Agenda Item 30 Discussion regarding Internal Audit Review of Call Center Operations

ACTION: Report given by Jose Reyes, McConnell & Jones, LLP

Agenda Item 31 Discussion regarding renewal of contract with Internal Auditor and approval of Internal Audit Plan for FY2019

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that the Commission approve the Internal Audit Plan for FY2019 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 12:00 p.m.

The meeting resumed at 1:14 p.m.

Agenda Item 11 Consideration and possible action regarding settlement in the matter of Docket No. D-1-GN-17-001803; John Sandlin Christie v. TREC

ACTION: Commissioner Westcott, duly seconded by Chair Wukasch, moved to reject the settlement in the matter of  John Sandlin Christie v. TREC.  The motion was adopted by unanimous vote.

Agenda Item 12 Consideration and possible action regarding proposal for decision in the matter of SOAH Docket No. 329-17-5011.REC; TREC v. Michael Patrick Burris

Note: Commissioner Turner, Deputy General Counsel and the parties left the main room to have a pre-hearing conference and the item was tabled until after agenda item 18.  Commissioner Turner did not vote on agenda items 13-18.

ACTION on Agenda Item 12: Commissioner Arriaga, duly seconded by Commissioner Leonard, moved to accept the PFD as written to assess an administrative penalty of $12,500.00 and to suspend the sales agent license of Michael Patrick Burris. The motion was adopted by unanimous vote.

Agenda Item 13 Discussion and possible action to authorize settlement of recovery fund claims or take other action on
a. RF 16008; Philip Hawkes v. Sky Group, LLC, Willie James Haynes, II, and Brita Michelle Haynes
b. RF 18006; Kathleen L. Rich and John R. Harrell v. Olujimi Olusegun Vaughn
c. RF 18010; Edward Trefger v. Jacqueline Wickware
d. RF 18013; Weddington Family Investments, LLC v. Lynda Lemons
e. RF 18014; Hannah and Adetoyese Awodola v. Sam Powell and Powell & Hall Real Estate Group, LLC
f. RF 18015; David Davila v. Erasmo Garcia and Kent W. Hicks d/b/a 1st State Realty
g. RF 18016; Chris Ferriola v. Laura McMillan
h. RF 18017; Federal National Mortgage Association v. Dana Dutschmann, et al.
i. RF 18018; James Thum v. Katherine Bell

13.a.: Item was pulled from agenda. No action was taken.

ACTION on 13.b.: Commissioner Miller, duly seconded by Commissioner Leonard, moved to authorize payment of $2,500.00 in actual damages plus interest and court costs. The motion was adopted by unanimous vote.

ACTION on 13.c. Commissioner Westcott, duly seconded by Commissioner Wilkinson, moved to authorize payment of $5,000.00 in attorney’s fees plus interest and court costs. The motion was adopted by unanimous vote.

ACTION on 13.d. Commissioner Williams, duly seconded by Commissioner Arriaga, moved to authorize payment of $9,681.00 in actual damages, plus interest, court costs and reasonable attorney’s fees. The motion was adopted by unanimous vote.

ACTION on 13.e. Commissioner Arriaga, duly seconded by Commissioner Leonard, moved to authorize payment of $26,442.30 in actual damages, plus interest, court costs and reasonable attorney’s fees. The motion was adopted by unanimous vote.

ACTION on 13.f. Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to authorize payment of $50,000.00, the maximum amount allowed by law. The motion was adopted by unanimous vote.

ACTION on 13.g. Commissioner Leonard, duly seconded by Commissioner Arriaga, moved to authorize payment of $3,450.00 in actual damages, plus interest and court costs. The motion was adopted by unanimous vote.

ACTION on 13.h. Commissioner Williams, duly seconded by Commissioner Leonard, moved to authorize payment of $11,700.00 in attorney’s fees, plus interest and court costs. The motion was adopted by unanimous vote.

ACTION on 13.i. Commissioner Miller, duly seconded by Commissioner Leonard, moved to authorize payment of $7,782.00 in actual damages, plus interest, court costs and reasonable attorney’s fees. The motion was adopted by unanimous vote.

Agenda Item 14 Discussion and possible action to adopt amendments to 22 TAC Chapter 537 as follows:
a. §537.47, Standard Contract Form TREC No. 40-7 (Third Party Financing Addendum)
b. new §537.58, Standard Contract Form TREC No. 51-0 (Release of Earnest Money)
c. §537.45, Standard Contract Form TREC No. 38-5 (Notice of Buyer’s Termination of Contract)
d. new §537.57, Standard Contract Form TREC No. 50-0 (Notice of Seller’s Termination of Contract)

ACTION: Commissioner Arriaga, duly seconded by Commissioner Leonard, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC §537.57, Standard Contract Form TREC No. 50-0, and the form adopted by reference, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption and to withdraw amendments to 22 TAC, §537.47, Standard Contract Form TREC No. 40-7, new 22 TAC §537.58, Standard Contract From TREC No. 51-0, and 22 TAC §537.45, Standard Contract Form TREC No. 38-5. The motion was adopted by unanimous vote.

Agenda Item 15 Discussion and possible action to adopt amendments to 22 TAC §535.155, Advertisements

ACTION: Commissioner Williams, duly seconded by Commissioner Leonard, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC §535.155, Advertisements, 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 §535.201, Definitions

ACTION: Commissioner Leonard, duly seconded by Commissioner Arriaga, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC §535.201, Definitions, 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 17 Discussion and possible action to propose amendments to 22 TAC §535.2, Broker Responsibility

ACTION: Commissioner Westcott, duly seconded by Commissioner Leonard, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to 22 TAC §535.2, Broker Responsibility, 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 18 Discussion and possible action to propose amendments to 22 TAC Chapter 535, Subchapter E as follows:
a. §535.50, Definitions
b. §535.53, Business Entity; Designated Broker
c. §535.55, Education and Sponsorship Requirements for a Sales Agent License

ACTION: Commissioner Williams, duly seconded by Commissioner Leonard, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to 22 TAC Chapter 535, Subchapter E, 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 19 Discussion and possible action to propose amendments to 22 TAC Chapter 535, Subchapter F as follows:
a. §535.60, Definitions
b. §535.61, Approval of Providers of Qualifying Courses
c. §535.62, Approval of Qualifying Courses
d. §535.65, Responsibilities and Operations of Providers of Qualifying Courses

ACTION: Commissioner Westcott, duly seconded by Commissioner Arriaga, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to 22 TAC Chapter 535, Subchapter F, 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 20 Discussion and possible action to propose amendments to 22 TAC Chapter 535, Subchapter G as follows:
a. §535.70, Definitions
b. §535.72, Approval of Non-Elective Continuing Education Courses
c. §535.75, Responsibilities and Operations of Continuing Education Providers

ACTION: Commissioner Williams, duly seconded by Commissioner Wilkinson, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC Chapter 535, Subchapter G, 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 21 Discussion and possible action to propose amendments to 22 TAC §535.101, Fees

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Arriaga, moved that staff is authorized on behalf of this Commission to submit the proposed amendments to 22 TAC  §535.101, Fees, 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 propose amendments to 22 TAC §535.191, Schedule of Administrative Penalties

ACTION: Commissioner Miller, duly seconded by Commissioner Leonard, 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 23 Discussion and possible action to propose amendments to 22 TAC Chapter 535, Subchapter R as follows:
a. §535.212, Education and Experience Requirements for a License
b. §535.213, Qualifying Real Estate Inspector Instructors and Courses
c. §535.218, Continuing Education Required for Renewal
d. §535.223, Standard Inspection Report Form

ACTION: Commissioner Arriaga, duly seconded by Commissioner Williams, moved that staff is authorized, on behalf of this Commission to submit the proposed amendments to 22 TAC Chapter 535, Subchapter R, 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.

Comments given by:
Rita Santamaria, Champions School of Real Estate
Stan Harbuck, A Better School of Building Inspection

Agenda Item 24 Discussion and possible action to propose amendments to 22 TAC Chapter 537 as follows:
a. §537.45, Standard Contract Form TREC No. 38-5 (Notice of Buyer’s Termination of Contract)
b. §537.47, Standard Contract Form TREC No. 40-7 (Third Party Financing Addendum)
c. §537.56, Standard Contract Form TREC No. 49-0 (Addendum Concerning Right to Terminate Due to Lender’s Appraisal)

ACTION: Commissioner Williams, duly seconded by Commissioner Turner, 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.

Comment given by Grant Harpold, Houston Association of REALTORS

Agenda Item 25 Discussion and possible action to close the review of
a. 22 TAC Chapter 537, Professional Agreements and Standard Contracts
b. 22 TAC Chapter 539, Provisions of the Residential Service Company Act
c. 22 TAC Chapter 543, Rules Relating to the Provisions of the Texas Timeshare Act

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Turner, moved that the Commission close the review of 22 TAC Chapters 537, 539 and 543, as presented.  The motion was adopted by unanimous vote.

NOTE: Commissioners Turner and Williams left the meeting and did not return.

Agenda Item 26 Discussion and possible action regarding FY2019 annual budget and budget related policies

ACTION: Commissioner Westcott, duly seconded by Commissioner Miller, moved that the Commission approve the FY2019 annual budget and budget related policies as presented.  The motion was passed by unanimous vote.

Agenda Item 29 Discussion and possible action to approve changes to MOU between TREC and TALCB

ACTION: Commissioner Leonard, duly seconded by Commissioner Westcott, moved that the Commission approve the changes to the MOU between TREC & TALCB as presented.  The motion was adopted with Commissioner Arriaga voting nay.

Agenda Item 27 Discussion and possible action regarding recommendations from the Broker Responsibility Working Group regarding:
a.  Education and Experience requirements for Independent and Sponsoring Brokers
b.  Elimination of licensing requirement for branch offices under §1101.552 Texas Occupations Code
c.  Revisions to Minimum Services under §1101.557 Texas Occupations Code
d.  Revisions to Representative Disclosures under §1101.558 Texas Occupations Code
e.  Establishment of a temporary practice registration for out-of-state commercial brokers with out-of-state buyers

ACTION: Commissioner Westcott moved that the Commission continue to explore the concepts set out in these recommended legislative changes and direct staff to work with legislators and stakeholders for further development and possible implementation.  Commissioner Westcott, duly seconded by Commissioner Miller, amended his motion and moved that the Commission continue to explore the concepts set out in these recommended legislative changes and direct staff to work with stakeholders for further development and possible implementation.  Commissioner Westcott, duly seconded by Commissioner Miller, amended his motion a second time and moved that the Commission continue to explore the concepts set out in these recommended legislative changes and direct the Broker Responsibility Working Group and staff to work with stakeholders for futher develpment and possible implementation.  The second amended motion was adopted by unanimous vote.

Comment given by Bob Baker

Agenda Item 32 Discussion and possible action to approve Broker Responsibility Course for 2019-2020

ACTION: Commissioner Miller, duly seconded by Commissioner Wilkinson, moved to approve the Broker Responsibility Course for 2019-2020, as presented, along with any technical or editorial changes approved by the two Commissioners on the writing group.  The motion was adopted by unanimous vote.

Agenda Item 33 Discussion and possible action regarding future agenda items

ACTION: Commissioner Arriaga asked that the Commission meet regarding the long-term facilities plan and the call-center audit. No meeting was set by the Commission.  However, Executive Director Oldmixon stated he would send out a report regarding the history of the long-term facilities plan and the anticipated 27 technology items to be pursued to improve cusomer service to all Commissioners.

Agenda Item 34 Discussion and possible action to schedule future meetings

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

Agenda Item 35 Adjourn

ACTION: The meeting was adjourned at 4:04 p.m.