Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 9:00 a.m.

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

ACTION: Commissioner Arriaga, duly seconded by Commissioner Leonard, moved to excuse the absences of Commissioners Westcott, Williams, Turner and Stephens

Agenda Item 3 Appointments to Education Standards Advisory Committee

ACTION: Chair Wukasch made the following appointments to the Education Standards Advisory Committee: Scott Hilton, Houston, Mary Lou Henry, McAllen, Kellie Stokes, Lewisville, Lori Solecki, Colleyville, Kelea Youngblood, Austin, Marion Napoleon, Grand Prairie, and Ruben Peña, San Antonio and recognized outgoing members: Susan Jones, Dianne McCoy, Rick Albers, Bob Baker, Rebecca Ray, Reba Saxon, and Jason Woodward

Agenda Item 4 Appoint a committee to recommend 2019 appointments to the Texas Real Estate Inspector Advisory Committee

ACTION: Chair Wukasch appointed Fred Wilcox, Larry Foster, and Commissioner Arriaga to the committee and charged them with interviewing applicants and recommending appointments to the Chair to fill the upcoming vacancies on the Texas Real Estate Inspector Committee.  The upcoming vacancies include two inspector committee members to serve six-year terms that would expire January 31, 2025, and three public members to serve two-year terms that would expire January 31, 2021.

Agenda Item 5 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 with questions and comments provided by Commission members:

Douglas Oldmixon, Executive Director
NOTE: Commissioners Turner and Stephens joined the meeting.
Tony Slagle, Deputy Executive Director
Amy Jasper, Acting 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
Christine Anderson, Public Affairs & Communications Manager
Priscilla Pipho, Director of Staff & Support Services

Agenda Item 6 Report by Budget Committee

ACTION: Report given by Commissioner Stephens

Agenda Item 7 Report by Education Standards Advisory Committee

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

Agenda Item 8 Report by Broker Responsibility Working Group

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

Agenda Item 9 Report by Texas Real Estate Inspector Committee

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

Agenda Item 10 General comments from visitors on non‐agenda items

No Comments were given.

Agenda Item 11 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 1:10 p.m.

The meeting resumed at 2:40 p.m.

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

a. SOAH Docket No. 329-18-3158.REC; TREC v. Jerry Frank Moody
b. SOAH Docket No. 329-18-3342.REC; TREC v. David L. Rogers
c. SOAH Docket No. 329-18-2230.REC; TREC v. Baron Clay Clark
d. SOAH Docket No. 329-18-3789.REC; Bradley Roberts v. TREC
e. SOAH Docket No. 329-18-4083.REC; TREC v. Jenny R. Bonham
f.  SOAH Docket No. 329-18-3597.REC; TREC v. Arissa Pedroza
g. SOAH Docket No. 329-18-3790.REC; Kevin Roberts Beattie v. TREC
h. SOAH Docket No. 329-18-4440.REC; TREC v. Raymond Lee Giles

ACTION on 12.a.: Commissioner Arriaga moved to modify the PFD as written and to revoke the sales agent license of Jerry Frank Moody to be fully probated until May 2027. Commissioner Turner, duly seconded by Commissioner Wilkinson, moved to reframe the motion that Mr. Moody's license should be revoked on a probated basis until he completes his community supervision or May 2027, whichever is earlier because the ALJ failed to properly interpret and apply applicable law and the Commission’s Rules. The motion as amended was adopted with Chair Wukasch recusing herself in this matter.

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

ACTION on 12.b.: Commissioner Miller, duly seconded by Commissioner Leonard moved to accept the PFD as written to deny the application for inactive real estate sales agent license filed by David L. Rogers. The motion was adopted by unanimous vote.

ACTION on 12.c.: Chair Wukasch, duly seconded by Commissioner Miller moved to accept the PFD as written to assess a $5,500 administrative penalty and to suspend the real estate broker license of Baron Clay Clark until Mr. Clark provides proof to the Commission that he has refunded a $2,000 retainer fee to the complainant. The motion was adopted with Commissioner Leonard recusing himself in this matter.

ACTION on 12.d.: Commissioner Leonard, duly seconded by Chair Wukasch moved to modify the PFD as written and to deny the application for inactive real estate sales agent license filed by Bradley Roberts because the ALJ failed to properly interpret and apply applicable law and the Commission’s Rules. The motion was adopted by unanimous vote.

ACTION on 12.e.: Commissioner Stephens, duly seconded by Chair Wukasch moved to accept the PFD as written to deny the application for inactive real estate sales agent license filed by Jenny Rebecca Bonham. The motion was adopted by unanimous vote.

ACTION on 12.f.: Chair Wukasch, duly seconded by Commissioner Leonard moved to accept the PFD as written that no disciplinary action shall be taken in this matter. The motion was adopted by unanimous vote.

ACTION on 12.g.: Commissioner Stephens, duly seconded by Commissioner Miller moved to modify the PFD as written and to deny the application for inactive real estate sales agent license filed by Kevin Robert Beattie because the ALJ failed to properly interpret and apply applicable law and the Commission’s Rules. The motion was adopted by unanimous vote.

ACTION on 12.h.: Commissioner Stephens, duly seconded by Commissioner Miller moved to accept the PFD as written to assess a $500 administrative penalty and revoke the real estate broker license of Raymond Lee Giles. 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 18010; Edward Trefger v. Jacqueline Wickware
b. RF 18012; Kevin Bierwirth v. Rio Rancho Properties, LLC
c. RF 18019; NCJ Developments Inc., et al. v. Jesus Barraza, et al.
d. RF 18020; Fountain Vista Homes, LLC v. Roy Ornelas and The Whin Group, LLC
e. RF 19001; Charity Medical Equipment & Supplies, Inc. v. Esperanza Saudia
f. RF 19003; Stergios and Angela Mitakidis v. Ashley E. Williams

ACTION on 13.a. Commissioner Leonard, duly seconded by Commissioner Stephens moved to authorize payment of $6,050.00 in attorney's fees plus interest and court costs. The motion was adopted by unanimous vote.

ACTION on 13.b. Commissioner Miller, duly seconded by Commissioner Stephens moved to authorize payment of $1,450.00 in actual damages plus interest, court costs and reasonable attorney's fees. The motion was adopted by unanimous vote.

ACTION on 13.c. Commissioner Turner, duly seconded by Commissioner Leonard moved to authorize payment of $20,413.00 in actual damages plus interest, court costs and reasonable attorney's fees. The motion was adopted by unanimous vote.

ACTION on 13.d. Item was pulled. No action was taken.

ACTION on 13.f. Commissioner Wilkinson, duly seconded by Commissioner Miller moved to authorize $18,319.06 in actual damages plus interest, court costs and reasonable attorney's fees. The motion was adopted by unanimous vote.

ACTION on 13.g. Commissioner Turner, duly seconded by Commissioner Leonard moved to authorize $7,876.76 in actual damages plus interest and court costs. The motion was adopted by unanimous vote.

Agenda Item 14 Discussion and possible action to adopt amendments to 22 TAC §535.2, Broker Responsibility

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 §535.2, Broker Responsibility, as presented, along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

Agenda Item 15 Discussion and possible action to adopt 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 Leonard, duly seconded by Commissioner Stephens moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC Chapter 535, Subchapter E, as presented, 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 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

COMMENTS:

Rita Santamaria
Kim Dydalewiczs
Roy Carter

ACTION: Commissioner Turner, duly seconded by Commissioner Stephens, moved that staff is authorized, on behalf of this Commission to submit for adoption, amendments to 22 TAC Chapter 535, Subchapter F, §§535.60. 535.62, and 535.65 to the Texas Register along with any technical or non-substantive changes required for adoption and to withdraw §535.61 and send it back to the Education Standards Advisory Committee for further consideration. The motion was adopted by unanimous vote

Agenda Item 17 Discussion and possible action to adopt 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 Miller, duly seconded by Commissioner Leonard, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC Chapter 535, Subchapter G, 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 18 Discussion and possible action to adopt amendments to 22 TAC §535.101, Fees

ACTION: Commissioner Miller, duly seconded by Commissioner Stephens, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC §535.101, Fees as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption to be effective as of March 1, 2019.  The motion was adopted by unanimous vote.

Agenda Item 19 Discussion and possible action to adopt amendments to 22 TAC §535.191, Schedule of Administrative Penalties

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Miller, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC §535.191, Schedule of Administrative Penalties, 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 20 Discussion and possible action to adopt 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

COMMENTS:

Stan Harbuck
Roy Carter

ACTION: Commissioner Turner, duly seconded by Commissioner Stephens, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC §535.223, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption and to withdraw and resubmit amendments to §§535.212, 535.213, and 535.218 with a substantive correction to the Texas Register for publication and public comment.  The motion was adopted by unanimous vote.

Agenda Item 21 Discussion and possible action to adopt 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 Miller, duly seconded by Commissioner Leonard, moved that staff is authorized, on behalf of this Commission, to submit for adoption, amendments to 22 TAC Chapter 537, and the forms adopted by reference, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption to be effective as of March 1, 2019.  The motion was adopted by unanimous vote.

Agenda Item 22 Discussion and possible action to propose amendments to 22 TAC Chapter 535, Subchapter R as follows:

a. §535.208, Application for a License
b. §535.219, Schedule of Administrative Penalties
c. §535.220, Professional Conduct and Ethics

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

ACTION: Commissioner Leonard, duly seconded by Commissioner Miller, moved that staff is authorized, on behalf of this Commission, to close the review of 22 TAC Chapter 535, General Provisions.

Agenda Item 24 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 Turner, duly seconded by Commissioner Miller, moved that the Commission approve the recommendation and direct staff to work with stakeholders and legislators on further development and possible implementation. The motion was adopted by unanimous vote.

Agenda Item 25 Discussion and possible action regarding amendments to TREC Budget Development Policy

ACTION: Commissioner Leonard, duly seconded by Commissioner Miller moved that the Commission adopt the revised TREC Budget Development Policy as presented.  The motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action regarding amendments to TREC Investment Policy for the Real Estate Recovery Trust Account; Real Estate Inspection Recovery Fund; and Reserve Funds

ACTION: Commissioner Leonard, duly seconded by Commissioner Miller, moved that the Commission adopt the revised TREC Investment Policy for the Real Estate Recovery Trust Account; Real Estate Inspection Recovery Fund; and Reserve Funds as presented.  The motion was adopted with Commissioner Stephens voting no.

Agenda Item 27 Report on FY2018 Internal Audit activities

No action was required.

Agenda Item 28 Report on form revisions due to FBI fee increases

No action was required.

Agenda Item 29 Discussion and possible action to approve new or changes to TREC forms:

a. SF1-3; Sales Agent Sponsorship Form-1
b. BL-A; Supplement A-Qualifying Experience Report for a Broker License
c. BL-B; Supplement B-Qualifying Experience Report for a Broker License After an Application has been Filed
d. LHR-6; Request for Certificate of License History, Active Licensure, or Sponsorship

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

Agenda Item 30 Discussion and possible action regarding future agenda items

ACTION: No items were discussed.

Agenda Item 31 Discussion and possible action to schedule future meetings

ACTION: The next meeting of the Commission is scheduled for February 11, 2018 at 10:00 a.m.

NOTE: Chair Wukasch expressed gratitute for her years of service as Chair of the Commission.

Agenda Item 32 Adjourn

ACTION: The meeting was adjourned at 5:10 p.m.