Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 10:03 a.m. on February 11, 2019

Agenda Item 2 Discussion and possible action to excuse Commissioner absence(s), if any
ACTION: Commissioner Miller, duly seconded by Commissioner Leonard, moved to excuse the absence of Commissioner Turner on February 11, 2019.  The motion was adopted by unanimous vote.

Agenda Item 3 Election of Vice-Chair & Secretary

ACTION: Chair Wukasch opened the floor for nominations to Vice-Chair.  Commissioner Miller moved to nominate Commissioner Leonard and Commissioner Stephens moved to nominate Commissioner Arriaga.  The Commission elected Commissioner Leonard for Vice-Chair with Commissioners Miller, Leonard, Westcott, and Wilkinson voting for Commissioner Leonard and Commissioners Stephens, Arriaga, and Williams voting for Commissioner Arriaga. Chair Wukasch abstained.

ACTION: Chair Wukasch opened the floor for nominations to Secretary.  Commissioner Wilkinson moved to nominate Commissioner Arriaga and Commissioner Westcott moved to nominate Commissioner Turner.  The Commission elected Commissioner Arriaga for Secretary with Commissioners Wilkinson, Arriaga, Miller, Stephens, and Williams voting for Commissioner Arriaga.  Chair Wukasch abstained.

Agenda Item 4 Appointments to:
a. Enforcement Committee
b. Budget Committee
c. Long-Term Facility Working Group
d. Commission liaison to the Texas Real Estate Inspector Committee
e. Commission liaison to the Education Standards Advisory Committee
f. Texas A&M Real Estate Center Advisory Committee
g. Texas Real Estate Inspector Committee

ACTION: Chair Wukasch made the following appointments:
a. Commissioners Leonard, Turner and Westcott to the Enforcement Committee
b. Commissioners Arriaga, Stephens and Williams to the Budget Committee
c. Commissioners Arriaga and Williams to the Long Term Facility Working Group
d. Chair Wukasch as the Commission liaison to the Texas Real Estate Inspector Committee
e. Commissioner Wilkinson as the Commission liaison to the Education Standards Advisory Committee
f. Commissioner Miller as the Commission liaison to the Texas A&M Real Estate Advisory Committee
g. Lee Warren reappointed as an inspector member with a term ending in 2025, Barbara Evans reappointed as a public member with a term ending in 2021, Robert John Daehn, Jr. and Dave Motley appointed as public members with a term ending in 2021.

Agenda Item 5 General comments from visitors on non‐agenda items

ACTION: No comments were given.

Agenda Item 6 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 10:15 a.m.

The meeting resumed at 11:55 a.m.

Agenda Item 7 Consideration and possible action regarding proposal for decision in the matter of
a.    SOAH Docket No. 329-18-0722.REC; TREC v. Kristin Ilissa Smith
b.    SOAH Docket No. 329-18-4836.REC; Teresa Lynn Stephens v. TREC
c.    SOAH Docket No. 329-18-4138.REC; TREC v. Oscar A. Beltran
d.    SOAH Docket No. 329-18-4258.REC; Nyanza Yvette Cook v. TREC
e.    SOAH Docket No. 329-18-4252.REC; TREC v. Deanna J. Reese
f.    SOAH Docket No. 329-18-5333.REC; TREC v. Kenneth Lavon Hayes
g.    SOAH Docket No. 329-18-3816.REC; TREC v. John David Tyler

ACTION on 7.a.: Commissioner Arriaga, duly seconded by Commissioner Leonard, moved to adopt the PFD as written that no administrative penalty be imposed upon Kristen Ilissa Smith. The motion was adopted with Chair Wukasch and Commissioners Miller and Wilkinson recusing themselves in this matter.

ACTION on 7.b.: Commissioner Leonard, duly seconded by Chair Wukasch, moved to adopt the PFD as written to deny the application for inactive sales agent license of Teresa Lynn Stephens. The motion was adopted by unanimous vote.

ACTION on 7.c.: Chair Wukasch, duly seconded by Commissioner Wilkinson, moved to adopt the PFD as written to assess a $1,000 administrative penalty and to suspend the sales agent license of Oscar A. Beltran for one year and impose the following conditions: that he comply with all terms of his community supervision and not engage in unlicensed real estate brokerage activity during the term of his license suspension. The motion was adopted by unanimous vote.

ACTION on 7.d.: Commissioner Leonard, duly seconded by Commissioner Arriaga, moved to adopt the PDF as written to deny the application for inactive sales agent license of Nyanza Yvette Cook. The motion was adopted by unanimous vote.

ACTION on 7.e.: Commissioner Stephens, duly seconded by Commissioner Arriaga moved to adopt the PFD as written to assess a $1,000 administrative penalty along with a change to Conclusions of Law 9 to suspend the sales agent license of Deanna J. Reese with the suspension to be fully probated for one year. The motion was adopted by unanimous vote.

ACTION on 7.f.: Commissioner Miller, duly seconded by Commissioner Williams, moved to adopt the PFD as written to assess a $1,000 administrative penalty and to suspend the sales agent license of Kenneth Lavon Hayes with the suspension to be fully probated for three years. The motion was adopted by unanimous vote.

ACTION on 7.g.: Commissioner Arriaga, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to deny the application for inactive sales agent license of John David Tyler. The motion was adopted by unanimous vote.

Agenda Item 8 Discussion and possible action to authorize settlement of recovery fund claims or take other action on
a.    RF 18020; Fountain Vista Homes, LLC v. Roy Ornelas, et al.
b.    RF 19004; Clifford Day v. Catherine S. Viggiano

ACTION on 8.a.: Commissioner Leonard, duly seconded by Commissioner Arriaga, moved to authorize payment of $30,600.00 in actual damages, plus interest, court costs and reasonable attorney's fees, less $23,000.00 for settlement payment received from other parties. The motion was adopted by unanimous vote.

ACTION on 8.b.: Commissioner Arriaga, duly seconded by Commissioner Leonard, moved to authorize payment of $2,771.70 in actual damages, plus interest and court costs. The motion was adopted by unanimous vote.

Agenda Item 9 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, website analytics, 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

Tony Slagle, Deputy Executive Director

Robert Hood, Director of Reception & Communication Services

Gwen Jackson, Director of Education & Licensing Services

Mark Moore, Director of Standards & Enforcement Services

Beverly Rabenberg, Staff Attorney, Standards & Enforcement Services

Steve Rapp, Director of Information & Technology Services

Priscilla Pipho, Director of Staff & Support Services

Agenda Item 10 Report by Executive Committee

Report given by Chair Wukasch

Agenda Item 11 Report by Enforcement Committee

Report given by Kristen Worman, Deputy General Counsel

Agenda Item 12 Report by Education Standards Advisory Committee

Report given by Kerri Lewis, General Counsel

Agenda Item 13 Report by Broker Responsibility Working Group

Report given by Bill Jones, Chair of the committee

Agenda Item 14 Report by Texas Real Estate Inspector Committee

Report given by Lee Warren, Chair of the committee

Agenda Item 15 Discussion and possible action to adopt amendments to 22 TAC Chapter 535, Subchapter R as follows:
a.   §535.208, Application for a License
b.   §535.212, Education and Experience Requirements for a License
c.   §535.213, Qualifying Real Estate Inspector Instructors and Courses
d.   §535.218, Continuing Education Required for Renewal
e.   §535.219, Schedule of Administrative Penalties
f.    §535.220, Professional Conduct and Ethics

Speakers:
Stan Harbuck

Lee Warren

Roy Carter

Rebecca Ray

ACTION: Commissioner Westcott, duly seconded by Commissioner Miller moved that the Commission approve staff's recommendation to submit for adoption, amendments to 22 TAC Chapter 535, Subchapter R, as presented, except §535.213(g)(1)(C) is changed from, "…no more than two…," to "…no more than four…," to the Texas Register, along with any technical or non-substantive changes required for adoption.  Commissioner Arriaga, moved to amend the motion to keep, "…no more than two…"  The amended motion was not seconded and failed.  Commissioner Stephens, duly seconded by Commissioner Arriaga, moved to amend the motion to change "…no more than two…," to "…a range from one to ten…" The amended motion failed with Commissioners Stephens, Arriaga, and Williams voting yes and Commissioners Westcott, Miller, Leonard, Wilkinson and Wukasch voting no.  The original motion was adopted with Commissioners Arriaga and Stephens voting no.

Agenda Item 16 Discussion and possible action to propose amendments to 22 TAC §533.8, Motion for Rehearing

ACTION: Commissioner Miller, duly seconded by Commissioner Arriaga, moved that the Commission approve staff's recommendation to submit the proposed amendments to 22 TAC §533.8, Motion for Rehearing, 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 17 Discussion and possible action to propose amendments to 22 TAC §535.141, Initiation of Investigation

ACTION: Commissioner Stephens moved that the Commission approve staff's recommendation in accordance with the Sunset Commission's recommendation to prioritize the complaints which come from the public, but to discard the request to initiate an investigation. The motion was not seconded and failed. Commissioner Westcott, duly seconded by Commissioner Arriaga, moved that the Commission approve staff's recommendation to submit the proposed amendments to 22 TAC §535.141, Initiation of Investigation, as presented, except for a change to subsection (c) to add, "…received by the Commission…" after the word, "complaints," 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 new 22 TAC §535.142, Consumer Complaint Processing

ACTION: Commissioner Stephens, duly seconded by Commissioner Leonard, moved that the Commission approve staff's recommendation to submit new 22 TAC §535.142, Consumer Complaint Processing, 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 repeal of 22 TAC §535.161, Failing to Provide Information

ACTION: Commissioner Leonard, duly seconded by Commissioner Arriaga, moved that the Commission approve staff's recommendation to submit the proposed repeal of 22 TAC §535.161, Failing to Provide 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 by unanimous vote.

The Commission recessed and took a break at 3:39 p.m.

The meeting resumed at 3:46 p.m.

Agenda Item 24 Discussion and possible action to approve new or changes to TREC forms:
a. QE_CA-1; Qualifying Real Estate Course Application
b. QE_CR-0; Renewal of Qualifying RE Course Approval
c. CE_CA-4; Real Estate CE Course Application
d. CE-CR-0; Renewal of Real Estate CE Course Approval
e. CE_CASP-0; Real Estate CE Course Application for Secondary Providers
f.  ICE_RCR-0; ICE Credit Request for a Course Taken to Maintain a Related Occupational License
g. ICE_CR-0; Renewal of Inspector CE (ICE) Course Application
h. ICE_CASP-0; ICE Course Application for Secondary Providers

ACTION: Commissioner Miller, duly seconded by Commissioner Leonard, moved to approve staff's recommendation to approve new or changes to TREC forms as presented.  The motion was adopted by unanimous vote.

Agenda Item 25 Discussion and possible action on legislative recommendations

ACTION: No action was taken.

Agenda Item 20 Discussion regarding Internal Audit of Public Funds Investment Act Compliance

Report given by Priscilla Pipho, Director of Staff & Support Services

Agenda Item 33 Discussion and training regarding new travel reimbursement procedures

Presented by Priscilla Pipho, Director of Staff & Support Services.

The meeting recessed at 4:19 p.m. until 10:00 a.m. on February 12, 2019 in Room 400a