Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 10:02 a.m.

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

The Recording Secretary called the roll and the following members of the Commission were in attendance: Chair Avis Wukasch, Adrian Arriaga, TJ Turner, Jan Fite Miller, Bob Leonard, Rayito Stephens DeLora Wilkinson and Chart Westcott.

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

Agenda Item 3 Discussion and possible action regarding Agency response to Sunset Commission Staff Report

ACTION: Commissioner Westcott, duly seconded by Commissioner Leonard, moved that the Commission to go into Executive Session to discuss any legal questions Commissioners may have.  The motion was adopted by unanimous vote.

The Commission went into Executive Session at 10:35 a.m.

The meeting resumed at 11:40 a.m.

Issue 1.1 Continue the Real Estate Commission and Appraiser Board for six years and place them under the SDSI Act.

ACTION: Commissioner Arriaga, duly seconded by Commissioner Stephens, moved that the Commission agree with the Sunset Commission staff recommendation to continue the Real Estate Commission for six years and place it under the SDSI Act.  The motion failed 2/6. Commissioner Turner, duly seconded by Commissioner Westcott, moved that the Commission agree with the Sunset Commission staff recommendation to continue the Real Estate Commission for six years, but disagree that it should be placed under the SDSI Act and instead be kept under Chapter 1105 with amendments as recommended by Agency staff.  The motion was adopted 7/1.

Issue 1.2 Direct the Agency to evaluate and update its key performance measures.

ACTION: Commissioner Stephens, duly seconded by Commissioner Arriaga, moved that the Commission agree with the Sunset Commission staff recommendation to evaluate and update key performance measures. The motion was adopted by unanimous vote.

Issue 1.3 Direct the Agency to develop a budget policy that fosters more realistic, straightforward budgeting and fee setting.

ACTION: Commissioner Stephens moved that the Commission agree in part with the Sunset Commission staff recommendation [to develop a budget policy that fosters more realistic, straightforward budgeting and fee setting] and that the Commission appoint a Commission member to direct the revised policies for the November 2018 meeting with the assistance of [general] counsel.  The motion failed. Commissioner Stephens, duly seconded by Commissioner Westcott, moved that the Commission agree in part with the Sunset Commission staff recommendation [to develop a budget policy that fosters more realistic, straightforward budgeting and fee setting] and that Agency staff work with the Budget Committee to propose revised budget policies for consideration at the November 2018 meeting. The motion was adopted by unanimous vote.

Issue 1.4 Direct the Agency to update its fund balance policy to limit growth.

ACTION: Commissioner Turner, duly seconded by Commissioner Arriaga, moved that the Commission agree in part with the Sunset Commission staff recommendation and approve Agency staff proposed response information [to direct the Agency to update its fund balance policy to limit growth], including preparing revised policies for consideration at the November 2018 meeting. The motion was adopted by unanimous vote.

Issue 2.1 Eliminate instructor approval authority.

ACTION: Commissioner Arriaga, duly seconded by Commissioner Stephens, moved that the Commission agree with [Agency staff recommendations regarding] additions to specific language allowing TREC to set minimum instructor standards for providers to follow. The motion was adopted by unanimous vote.

Issue 2.2 Eliminate the branch office license.

ACTION: Commissioner Turner, duly seconded by Commissioner Arriaga, moved that the Commission agree with the Sunset Commission staff recommendation [to eliminate the branch office license]. The motion was adopted by unanimous vote.

Issue 2.3 Remove a subjective qualification required for licensure applicants.

ACTION: Commissioner Stephens, duly seconded by Commissioner Turner, moved that the Commission agree in part with the Sunset Commission staff recommendation to eliminate subjective qualification requirements for licensure except that it be objective rather than subjective. The motion failed 1/7. Commissioner Westcott, duly seconded by Commissioner Arriaga, moved that the Commission disagree with the Sunset Commission staff recommendations and support Agency staff proposed response to disagree with removing the subjective qualification requirement for licensure applicants. The motion was adopted 7/1 with Commissioner Stephens voting Nay.

Issue 2.4 Remove statutory provisions requiring certain applicants to establish Texas residency before obtaining a Texas real estate license or appraiser approval.

ACTION: Commissioner Westcott, duly seconded by Commissioner Arriaga, moved that the Commission agree with the Sunset Commission staff recommendation [to remove statutory provisions requiring certain applicants to establish Texas residency before obtaining a Texas real estate license].  After discussion, Commissioner Westcott rescinded his motion. Commissioner Turner, duly seconded by Commissioner Arriaga, moved that the Commission agree in part with the Sunset Commission staff recommendation and agree with the Agency staff proposed response information to add specific language regarding geographic competence.  The motion was adopted by unanimous vote.

Issue 2.5 Authorize the Real Estate Commission and Appraiser Board to deny license renewal applications for non-compliant applicants.

ACTION: Commissioner Arriaga, duly seconded by Commissioner Turner, moved that the Commission agree with the Sunset Commission staff recommendation [to authorize the Real Estate Commission to deny license renewal applications for non-compliant applicants]. The motion was adopted by unanimous vote.

Issue 2.6 Direct the Real Estate Commission to review and streamline its inspector pre-licensing education requirements.

ACTION: Commissioner Stephens, duly seconded by Commissioner Turner, moved that the Commission agree with the Sunset Commission staff recommendation to direct the Real Estate Commission to review and streamline its inspector pre-licensing education requirements. The motion was adopted by unanimous vote.

Issue 3.1 Require the Real Estate Commission and Appraiser Board to maintain complainants' confidentiality when possible.

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that the Commission disagree with the Sunset Commission staff recommendation [to require the Real Estate Commission to maintain complainants' confidentiality]. The motion was adopted by unanimous vote.

Issue 3.2 Authorize the Real Estate Commission to dismiss low-level complaints and delegate this authority to staff.

ACTION: Commissioner Stephens, duly seconded by Commissioner Arriaga, moved that the Commission agree with the Sunset Commission staff recommendation to authorize the Real Estate Commission to dismiss low-level complaints and delegate this authority to staff.  The motion was adopted by unanimous vote.

Issue 3.4 Direct the Real Estate Commission to develop standard rules and procedures to handle each phase of the complaint process.

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that the Commission agree with the Sunset Commission staff recommendation [to develop standards rules and procedures to handle each phase of the complaint process].  The motion was adopted by unanimous vote.

Issue 3.5 Direct the Real Estate Commission and Appraiser Board to document and track non- jurisdictional complaints.

ACTION: Commissioner Stephens, duly seconded by Commissioner Leonard, moved that the Commission agree with the Sunset Commission staff recommendation to direct the Real Estate Commission to document and track non-jurisdictional complaints.  The motion was adopted by unanimous vote.

Issue 4.1 Update and apply standard across-the-board recommendations to the Real Estate Commission and Appraiser Board.

ACTION: Commissioner Stephens, duly seconded by Commissioner Arriaga, moved that the Commission agree with the Sunset staff recommendation to update and apply standard across-the-board recommendations to the Real Estate Commission.  The motion was adopted by unanimous vote.

Issue 4.3 Repeal the Real Estate Commission's and Appraiser Board's SDSI annual and biennial reporting requirements.

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that the Commission disagree with the Sunset Commission staff recommendation [to repeal the Real Estate Commission's SDSI annual and biennial reporting requirements] with the understanding that the Commission recommend placing additional reporting requirements on the Agency that would be equivalent to those found in the SDSI Act.  The motion was adopted 6/2.

ACTION: Commissioner Stephens, duly seconded by Commissioner Arriaga, moved that the full Commission meet again before October 16th to review and approve changes made to the Agency Response to the Sunset Commission Report. Commissioner Arriaga moved to amend the motion to appoint a committee of four instead of the full Commission to meet by conference call. The original and amended motion failed.  Commissioner Stephens, duly seconded by Commissioner Arriaga, moved that the Commission appoint Commissioners Arriaga, Leonard, Stephens, and Wukasch to review and approve changes made to the Agency Response to the Sunset Commission Report before submission.  The motion was adopted by unanimous vote.

NOTE: Commissioner Arriaga exited the meeting at 2:22 p.m. and did not return.

Agenda Item 4 Discussion and possible action regarding future agenda items

ACTION: Chair Wukasch noted the need to add revised budget and reserve fund policies to the November 2018 meeting agenda.

Agenda Item 5 Discussion and possible action to schedule future meetings

ACTION: Agency Staff will investigate room availability for the November 2018 meeting.

Agenda Item 6 Adjourn

ACTION: The meeting was adjourned at 2:36 p.m.