Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Kesner called the meeting to order at 10:05 a.m.

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

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

Agenda Item 3 Welcome new Commissioners and recognition of departing Commissioners and other public servants

Executive Director Oldmixon recognized outgoing Commissioners Westcott, Arriaga, former Chair Wukasch and outgoing General Counsel, Kerri Lewis.

Agenda Item 4 Election of Officers (as needed)

ACTION: Chair Kesner opened the floor for nominations to Secretary.  Commissioner Leonard, duly seconded by Commissioner Wilkinson, moved to nominate Commissioner Turner.  The Commission elected Commissioner Turner for Secretary by unanimous vote.

Agenda Item 5 Appointments to:
a. Texas Real Estate Inspector Committee
b. Education Standards Advisory Committee
c. Broker Lawyer Committee

5.a.: Chair Kesner announced that Mike Morgan had been appointed as an Inspector Member.
ACTION on 5.b.: Commissioner Leonard, duly seconded by Commissioner Miller, moved to accept the recommendation of the Executive Committee to appoint Charles Porter to ESAC.  The motion was adopted by unanimous vote.
ACTION on 5.c.: Commissioner Turner, duly seconded by Commissioner Miller, moved to accept the recommendation of the Executive Committee to reappoint Ron Walker and Leigh York as broker members to the Broker-Lawyer Committee.  The motion was adopted by unanimous vote.

Agenda Item 6 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

Reports were given by the following:
Douglas Oldmixon, Executive Director
Tony Slagle, Deputy Executive Director
Robert Hood, Director of Reception & Communication Services
Denise Sample, Director of Licensing & Registration Services
Jennifer Wheeler, Director of Education & Evaluation Services
Mark Moore, Director of Standards & Enforcement Services
Steve Rapp, Director of Information & Technology Services
Priscilla Pipho, Director of Staff & Support Services

Agenda Item 7 Report by Executive Committee

Report given by Commissioner Leonard

Agenda Item 8 Report by Budget Committee

Report given by Executive Director Oldmixon

Agenda Item 9 Report by Education Standards Advisory Committee

Report given by Rob Cook, Chair of the committee

Agenda Item 10 Report by Texas Real Estate Inspector Committee

Report given by Lee Warren, Chair of the committee

Agenda Item 36 Report on Market Trends by Texas A&M University Real Estate Center

Introduction by Gary W. Maler, Director, and presentation by Dr. James P. Gaines, Chief Economist, Texas A&M University, Real Estate Center

Agenda Item 38 Discussion and possible action regarding the Memorandum of Understanding with the Texas A&M University Real Estate Center

ACTION: Commissioner Russell, duly seconded by Commissioner Leonard, moved to adopt the revised Memorandum of Understanding with the Texas A&M University Real Estate Center as presented.  The motion was adopted by unanimous vote.

Agenda Item 11 General comments from visitors on non‐agenda items

Comments given by the following:
Joel Norris, Pearson VUE
Stan Harbuck

Agenda Item 12 Executive session to discuss pending litigation or obtain advice of legal counsel on agenda items pursuant to Texas Government Code §551.071 and personnel matters pursuant to Texas Government Code §551.074

ACTION: The Commission went into Executive Session at 12:30 p.m.

The meeting resumed at 2:35 p.m.

Agenda Item 13 Consideration and possible action regarding proposal for decision in the matter of
a. SOAH Docket No. 329-18-4084.REC; TREC v. Ashley E. Williams;
b. SOAH Docket No. 329-18-5103.REC; TREC v. Joseph Charles Cole II;
c. SOAH Docket No. 329-18-4511.REC; Clifford Hugh Bowden, Jr. v. TREC;
d. SOAH Docket No. 329-18-4362.REC; Margely Montalvo v. TREC; and
e. SOAH Docket No. 329-19-1120.REC; TREC v. Alexandro Cano

ACTION on 13.a.: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to assess an administrative penalty of $122,000 and to revoke the sales agent license of Ashley E. Williams. The motion was adopted by unanimous vote.
ACTION on 13.b.: Commissioner Miller, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to assess an administrative penalty of $200,000 and to revoke the broker license of Joseph Charles Cole, II.  The motion was adopted by unanimous vote.
ACTION on 13.c.:  Commissioner Russell, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to deny the application for inactive real estate sales agent license of Clifford Hugh Bowden, Jr.  The motion was adopted by unanimous vote.
ACTION on 13.d.: Commissioner Leonard, duly seconded by Commissioner Russell, moved to adopt the PFD as amended to approve the application for inactive real estate sales agent license of Margely Montalvo.  The motion was adopted with Commissioner Miller recusing herself.
ACTION on 13.e.: Commissioner Russell, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to as written to deny the application for inactive real estate broker license of Alexandro Cano. The motion was adopted by unanimous vote.

Agenda Item 14 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, and Willie James Haynes, II, et al.
b. RF 18001; Maria Molina and Manuel Molina v. George A. Wilburn d/b/a Mission Custom Homes, et al.
c. RF 18007; Maria Brooks v. John Paul Perez and 210 Real Estate Group, LLC
d. RF 19007; Alan Bauman v. Angela Fowler and Region Realty, Inc.
e. RF 19010; David and Rachel Marcovitch v. Patricia Zars and Zars and Rogers Realtors, et al.
f. RF 19006; Lee Warren v. Ashley Williams Creamer
g. RF 19008; Duane Ellington, Kimberly Hooton and Lance Hooton v. Ashley Williams a/k/a Ashley Creamer
h. RF 19009; Bigfoot Place, LLC, et al. v. Ashley Williams a/k/a Ashley Creamer
i. RF 19012; David Gunaseelan v. Ashley Williams Creamer

No action was taken on 14.a.

ACTION on 14.b.: Commissioner Hartgraves, duly seconded by Commissioner Turner, moved to authorize settlement payment of $40,000.  The motion was adopted by unanimous vote.
ACTION on 14.c.: Commissioner Turner, duly seconded by Commissioner Leonard, moved to authorize payment of $9,164.00 in actual damages, plus interest, court costs and reasonable attorney's fees. The motion was adopted by unanimous vote.
ACTION on 14.d.: Commissioner Miller, duly seconded by Commissioner Russell, moved to authorize payment of $1,856.00 in actual damages, plus interest court costs and reasonable attorney's fees.  The motion was adopted by unanimous vote.
ACTION on 14.e.: Commissioner Turner, duly seconded by Commissioner Miller, moved to authorize staff to continue settlement negotiations with the Plaintiffs' counsel and provide the Executive Committee with the authority to approve any settlement recommended by staff if settlement is reached prior to the next quarterly Commission meeting.  The motion was adopted with Commissioner Leonard recusing himself.
ACTION on 14.f. – 14.i. Commissioner Turner, duly seconded by Commissioner Leonard, moved to authorize payment as follows:14.f. RF 19006: $30,519.39 in actual damages;14.g. RF 19008: $27,068.25 in actual damages split as: $15,601.66 to Kimberly and Lance Hooton, and $11,466.59 to Duane Ellington;14.h. RF 19009: $24,280.92 in actual damages; and14.i. RF 19012: $9,771.07 in actual damages.The motion was adopted by unanimous vote.

Agenda Item 15 Discussion and possible action to adopt amendments to 22 TAC §533.8, Motion for Rehearing

ACTION: Commissioner Leonard, duly seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §533.8, Motion for Rehearing, 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 §535.141, Initiation of Investigation

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the 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 by unanimous vote.

Agenda Item 17 Discussion and possible action to adopt new 22 TAC §535.142, Consumer Complaint Processing

Comment given by Grant Harpold, Houston Association of REALTORS®

ACTION: Commissioner Leonard, duly seconded by Commissioner Hartgraves, moved to authorize staff, on behalf of the Commission, to submit for adoption, new 22 TAC §535.142, Consumer Complaint Processing, 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 repeal of 22 TAC §535.161, Failing to Provide Information

ACTION: Commissioner Russell, duly seconded by Commission Leonard, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.161, Failing to Provide Information, 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 19 Discussion and possible action to propose amendments to 22 TAC §531.3, Competency

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §531.3, Competency, 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 §535.43, Education Standards Advisory Committee

ACTION: Commissioner Miller, duly seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.43, Education Standards Advisory Committee, 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 §535.61, Approval of Providers of Qualifying Courses

ACTION: Commissioner Hartgraves, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.61, Approval of Providers of Qualifying Courses, 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 §535.65, Responsibilities and Operations of Providers of Qualifying Courses and 22 TAC §535.75, Responsibilities and Operations of Continuing Education Providers

ACTION: Commissioner Russell, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.65, Responsibilities and Operations of Providers of Qualifying Courses and 22 TAC §535.75, Responsibilities and Operations of Continuing Education Providers, 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 §535.63, Approval of Instructors of Qualifying Courses and §535.74, Approval of Continuing Education Instructors

ACTION: Commissioner Turner, duly seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.63, Approval of Instructors of Qualifying Courses and §535.74, Approval of Continuing Education Instructors, 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 24 Discussion and possible action to propose amendments to 22 TAC §535.148, Receiving an Undisclosed Commission or Rebate

Comment given by Grant Harpold, Houston Association of REALTORS®

ACTION: Commissioner Leonard, duly seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.148, Receiving an Undisclosed Commission or Rebate, 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 25 Discussion and possible action to propose amendments to 22 TAC §535.220, Professional Conduct and Ethics

ACTION: Commissioner Russell, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.220, Professional Conduct and Ethics, 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 26 Discussion and possible action to propose amendments to 22 TAC §535.222, Inspection Reports

ACTION: Commissioner Russell, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.222, Inspection Reports, 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 27 Discussion and possible action to propose amendments to 22 TAC §535.206, The Texas Real Estate Inspector Committee

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.206, The Texas Real Estate Inspector Committee, 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 §535.209, Examinations, new §535.212, Education and Experience Requirements for a License, and new §535.213 Qualifying Real Estate Inspector Courses

Comment given by Stan Harbuck.

ACTION: Commissioner Leonard, duly seconded by Commissioner Wilkinson, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.209, Examinations, new §535.212, Education and Experience Requirements for a License, and new §535.213, Qualifying Real Estate Inspector Courses, 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 repeal §535.212, Education and Experience Requirements for a License, and §535.213, Qualifying Real Estate Inspector Courses

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed repeal of §535.212, Education and Experience Requirements for a License, and §535.213, Qualifying Real Estate Inspector Courses, 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 30 Discussion and possible action to propose amendments to 22 TAC §535.218, Continuing Education Required for Renewal

ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.218, Continuing Education Required for Renewal, 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 31 Discussion and possible action on legislative matters

No action was taken.

Agenda Item 32 Discussion and possible action regarding the Memorandum of Understanding with the Texas Appraiser Licensing and Certification Board

ACTION: Commissioner Leonard, duly seconded by Commissioner Russell, moved to adopt the revised Memorandum of Understanding with the Texas Appraiser Licensing and Certification Board as presented.  The motion was adopted by unanimous vote.

Agenda Item 33 Discussion and possible action regarding revisions to TREC’s Investment Policy

ACTION: Commissioner Russell, duly seconded by Commissioner Leonard, moved to ratify the revised language to the TREC Investment Policy as presented.  The motion was adopted by unanimous vote.

Agenda Item 34 Discussion and possible action regarding the Strategic Project Reserve Fund

No action was taken.

Agenda Item 35 Discussion and possible action regarding amendments to TREC FY2019 operating budget

ACTION: Commissioner Russell, duly seconded by Commissioner Leonard, moved to ratify the current fiscal year (2019) Operating Budget to include the items presented with the associated reserve transfers from the Technology Reserve and Operating & Contingency Reserve.  The motion was adopted by unanimous vote.

Agenda Item 37 Discussion and possible action to approve a TREC Forms Update Policy

ACTION: Commissioner Hartgraves, duly seconded by Commissioner Leonard, moved to adopt the Forms Update Policy as presented.  The motion was adopted by unanimous vote.

Agenda Item 39 Discussion and possible action to approve Inspector Legal & Ethics 4-hour mandatory continuing education course material

ACTION: Commissioner Leonard, duly seconded by Commissioner Russell, moved to approve the Inspector Legal & Ethics 4-hour mandatory continuing education course materials as presented.  The motion was adopted by unanimous vote.

Agenda Item 40 Discussion and possible action regarding FY2020 draft budget and budget policy

No action was taken.

Agenda Item 41 Discussion and possible action regarding performance review and salary of TREC Executive Director

No action was taken.

Agenda Item 42 Discussion and possible action regarding orientation of new commission members

No action was taken.

Agenda Item 43 Discussion and possible action regarding topics for the November Workshop

No action was taken.

Agenda Item 44 Discussion and possible action to approve changes to TREC forms as follows:
a. BBE_RF-1; Renewal of Business Entity Broker License – Timely or Expired Less Than Six Months; and
b. LHR-7; Certificate of License History, Active Licensure, or Sponsorship

ACTION: Commissioner Turner, duly seconded by Commissioner Russell moved to approve changes to TREC forms as presented.  The motion was adopted by unanimous vote.    

Agenda Item 45 Discussion and possible action regarding future agenda items

No items were suggested.

Agenda Item 46 Discussion and possible action to schedule future meetings

ACTION: The next Commission meeting is scheduled for August 12, 2019, at 10:00 a.m.  The future meetings of the Commission are scheduled for November 12, 2019, (workshop) and November 13, 2019, (regular quarterly meeting).

Agenda Item 47 Adjourn

ACTION: The meeting was adjourned at 5:16 p.m.