Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Kesner called the meeting to order at 10:01 a.m.

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

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

Agenda Item 3 Recognition of departing public servant(s)

ACTION: Chair Kesner recognized the service of departing Texas Real Estate Inspector Committee member, Brad Phillips.

Agenda Item 4 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 and Communication Services
Denise Sample, Director of Licensing and Registration Services
Jennifer Wheeler, Director of Education and Examination Services
Michael Molloy, Staff Attorney, Standards and Enforcement Services
Tom Watson, Assistant Director of Information & Technology Services
Priscilla Pipho, Director of Staff & Support Services

Additional remarks provided by Executive Director Oldmixon

Agenda Item 5 Report by Executive Committee

Report given by Chair Kesner

Agenda Item 6 Report by Budget Committee

Report given by Commissioner Williams

Agenda Item 7 Report by Enforcement Committee

Report given by Commissioner Turner

Agenda Item 8 Report by Broker-Lawyer Committee

Report given by Chelsea Buchholtz, General Counsel

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 11 General comments from visitors on non‐agenda items

No comments were given.

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

ACTION: The Commission went into executive session at 12:09 p.m.

Chair Kesner reconvened the meeting at 1:37 p.m.

Agenda Item 13 Consideration and possible action regarding proposal for decision in the matter of
a. SOAH Docket No. 329-19-1385.REC; Eric J. Kaplan v. TREC
b. SOAH Docket No. 329-19-0711.REC; David C. Bates v. TREC
c. SOAH Docket No. 329-19-1489.REC; TREC v. Mayra Jovel
d. SOAH Docket No. 329-19-2748.REC; Lisa Marie Holley v. TREC

ACTION on 13.a.: Chair Kesner, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to approve the application for inactive sales agent license of Eric J. Kaplan, on a probationary basis, subject to the following terms: 1. Applicant comply with Chapter 1101, Texas Occupations Code and Rules of the Commission;  2. Applicant cooperate with Commission's Standard & Enforcement Services Division in its investigation of any complaints filed against Applicant;  3. Applicant notify the Commission within 14 days of any new sponsorship or change in sponsorship that the broker has received a copy of the Final Order and is aware of the terms of the Order;  4. Applicant comply with all terms and conditions of community supervision; and 5. Applicant notify the Commission within 14 days after the date of a violation or change in community supervision. The motion was adopted by unanimous vote.

ACTION on 13.b.: Commissioner Williams, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to deny the application for inactive sales agent license of David C. Bates.

ACTION on 13.c.: Commissioner Miller, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to assess an administrative penalty of $6,750.00 and to suspend the sales agent license of Mayra Jovel for six months.  Further, if Respondent's expired license is reinsitated, the six month suspension starts on the date of the reinstatement and will remain suspended beyond the six month period until the administrative penalty is paid in full, whichever is longer.  The motion was adopted by unanimous vote.

ACTION on 13.d.: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to deny the application for inactive sales agent license of Lisa Marie Holley. 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 19011; GLM Enterprises, LLC v. One Source Property Management, Inc., et al.
b. RF 19014; Alex Akselrod and Pauline Akselrod v. Thomas B. Babiar
c. RF 19016; Blanca Galindo v. Edgar P. Wiggins d/b/a Wiggins Realty

ACTION on 14.a.: Commissioner Leonard, duly seconded by Chair Kesner, moved that the Commission authorize settlement payment of $8,340.00 in actual damages, plus interest, court costs, and reasonable attorney's fees pending receipt of a writ of execution returned, "nulla bona," for Vanessa Marie Baumann.  The motion was adopted by unanimous vote.

ACTION on 14.b.: Commissioner Hartgaves, duly seconded by Commissioner Leonard, moved that the Commission authorize settlement payment of $100,000.00 in actual damages, the maximum amount allowed by law, split as $39,586.03 to Alex Akselrod and $60,413.97 to Pauline Akselrod.  The motion was adopted by unanimous vote.

ACTION on 14.c.: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to authorize settlement payment of $2,085.00 in actual damages, plus interest and court costs.  The motion was adopted by unanimous vote.

Agenda Item 15 Discussion and possible action to implement legislative changes enacted in SB 37, which eliminated consideration of student loan defaults and took immediate effect upon signing by the Governor, and adopt emergency amendments to 22 TAC:
a. §535.91, Renewal of a Real Estate License; and
b. §535.403, Renewal of Registration

ACTION:  Commissioner Miller, duly seconded by Commissioner Hartgraves, moved to authorize staff, on behalf of the Commission, to submit for adoption on an emergency basis, amendments to 22 TAC §535.91, Renewal of a Real Estate License; and §535.403, Renewal of Registration, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption, with an immediate effective date.  The motion was adopted by unanimous vote.

Agenda Item 16 Discussion and possible action to implement legislative changes enacted in SB 624, effective for complaints filed on or after September 1, 2019, and adopt emergency amendments to 22 TAC:
a. §535.191, Schedule of Administrative Penalties; and
b. §535.219, Schedule of Administrative Penalties

ACTION:  Commissioner Leonard, duly seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption on an emergency basis, amendments to 22 TAC §535.191, Schedule of Administrative Penalties; and §535.219, Schedule of Administrative Penalties, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption, with an effective date of September 1, 2019.  The motion was adopted by unanimous vote.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC §531.3, Competency

ACTION: Commissioner Turner, duly seconded by Commissioner Hartgraves, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §531.3, Competency, as published, 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 §535.43, Education Standards Advisory Committee

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

ACTION: Commissioner Leonard, duly seconded by Commissioner Wilkinson, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.61, Approval of Providers of Qualifying Courses, as published, 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 §535.65, Responsibilities and Operations of Providers of Qualifying Courses and 22 TAC §535.75, Responsibilities and Operations of Continuing Education Providers

ACTION: Commissioner Leonard, duly seconded by Commissioner Williams, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.75, Responsibilities and Operations of Continuing Education Providers, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 21 Discussion and possible action to adopt amendments to 22 TAC §535.63, Approval of Instructors of Qualifying Courses and §535.74, Approval of Continuing Education Instructors

ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to §535.63, Approval of Instructors of Qualifying Courses and §535.74, Approval of Continuing Education Instructors, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 22 Discussion and possible action to adopt amendments to 22 TAC §535.148, Receiving an Undisclosed Commission or Rebate

COMMENT: Lee Warren

ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to §535.148, Receiving an Undisclosed Commission or Rebate, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted with Commissioner Miller voting no.

Agenda Item 23 Discussion and possible action to adopt amendments to 22 TAC §535.206, The Texas Real Estate Inspector Committee

ACTION: Commissioner Leonard, duly seconded by Commissioner Hartgraves, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to §535.206, The Texas Real Estate Inspector Committee, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 24 Discussion and possible action to adopt 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

ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to withdraw 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, from the Texas Register. The motion was adopted by unanimous vote.

Agenda Item 25 Discussion and possible action to adopt repeal of 22 TAC §535.212, Education and Experience Requirements for a License, and §535.213, Qualifying Real Estate Inspector Courses

ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to withdraw the proposed repeal of 22 TAC §535.212, Education and Experience Requirements for a License, and §535.213, Qualifying Real Estate Inspector Courses, from the Texas Register.  The motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action to adopt amendments to 22 TAC §535.218, Continuing Education Required for Renewal

COMMENTS:

Lee Warren

Roy Carter

ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to §535.218, Continuing Education Required for Renewal, 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 27 Discussion and possible action to adopt amendments to 22 TAC §535.220, Professional Conduct and Ethics

ACTION: Commissioner Williams, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to §535.220, Professional Conduct and Ethics, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 28 Discussion and possible action to adopt amendments to 22 TAC §535.222, Inspection Reports

ACTION: Commissioner Miller duly seconded by Commissioner Wilkinson, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to §535.222, Inspection Reports, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  The motion was adopted by unanimous vote.

Agenda Item 29 Discussion and possible action regarding FY2020 budget

ACTION: Commissioner Williams, duly seconded by Commissioner Turner, moved to approve Version B of the FY 2020 Budget, as presented.  The motion was adopted by unanimous vote.

Agenda Item 30 Discussion and possible action to implement legislative changes enacted in SB 624 and fee changes related to the FY2020 budget and propose amendments and repeal to 22 TAC:
a. §535.101, Fees;
b. §535.210, Fees; and
c. §534.2, Processing Fees for Dishonored Payments (REPEAL)

ACTION: Commissioner Miller, duly seconded by Commissioner Leonard, moved to authorize staff on behalf of the Commission to submit Version B of the proposed amendments to 22 TAC §535.101, Fees, §535.210, Fees, and proposed repeal of §534.2, Processing Fees for Dishonored Payments, 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 31 Discussion and possible action to implement legislative changes enacted in SB 1200 regarding military applicants and license holders and propose amendments and new rule to 22 TAC:
a. §535.51, General Requirements for a Real Estate License;
b. §535.58, License for Military Service Members, Veterans, or Military Spouses (NEW); and
c. §535.208, Application for a License

ACTION: Commissioner Leonard, duly seconded by Commissioner Hartgraves, moved to authorize staff on behalf of the Commission to submit the proposed amendments to 22 TAC §535.51, General Requirements for a Real Estate License, new rule §535.58, License for Military Service Members, Veterans, or Military Spouses and proposed amendments to §535.208, Application for a License, 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 with Commissioner Miller abstaining.

Agenda Item 32 Discussion and possible action to implement legislative changes enacted in SB 624 eliminating branch office and instructor licenses and propose amendments and repeal to 22 TAC:
a. §535.57, Examinations;
b. §535.60, Definitions;
c. §535.67, Qualifying Education: Compliance and Enforcement;
d. §535.70, Definitions;
e. §535.72, Approval of Non-elective Continuing Education Courses; and
f. §535.112, Branch Office (REPEAL)

ACTION: Commissioner Leonard, duly seconded by Commissioner Miller, moved to authorize staff on behalf of the Commission to submit the proposed amendments to 22 TAC §535.57, Examinations; §535.60, Definitions, §535.67, Qualifying Education: Compliance and Enforcement, §535.70, Definitions, §535.72, Approval of Non-elective Continuing Education Courses, and proposed repeal of §535.112, Branch Office, 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 33 Discussion and possible action to implement legislative changes enacted in SB 37 eliminating consideration of student loan defaults and SB 624 authorizing denial of license renewal if license holder is in violation of a Commission order and propose amendments to 22 TAC:
a. §535.61, Approval of Providers of Qualifying Courses;
b. §535.62, Approval of Qualifying Courses;
c. §535.71, Approval of CE Providers;
d. §535.73, Approval of Elective Continuing Education Courses;
e. §535.91, Renewal of a Real Estate License;
f. §535.403, Renewal of Registration; and
g. §543.12, Renewal of Registration

ACTION:  Commissioner Miller, duly seconded by Commissioner Leonard, 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, §535.62, Approval of Qualifying Courses, §535.71, Approval of CE Providers, §535.73, Approval of Elective Continuing Education Courses, §535.91, Renewal of a Real Estate License, §535.403, Renewal of Registration, and §543.12, Renewal of Registration, 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 34 Discussion and possible action to implement legislative changes enacted in SB 624 applicable to complaints filed on or after September 1, 2019, and propose amendments to 22 TAC:
a. §535.191, Schedule of Administrative Penalties; and
b. §535.219, Schedule of Administrative Penalties

ACTION:  Commissioner Turner, duly seconded by Commissioner Leonard, 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, §535.191, Schedule of Administrative Penalties, and §535.219, 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 35 Discussion and possible action to implement legislative changes enacted in SB 624 regarding public comments, removal of the term “moral character,” dismissal of complaints, and elimination of residency requirements and propose amendments to 22 TAC:
a. §535.41, Procedures;
b. §535.52, Moral Character Requirements for Individual Applicant;
c. §535.142, Consumer Complaint Processing; and
d. §535.400, Registration of Easement or Right-of-Way Agents    

ACTION: Commissioner Williams, duly seconded by Commissioner Leonard, moved to authorize staff on behalf of the Commission to submit the proposed amendments to TAC §535.41, Procedures; §535.52, Moral Character Requirements for Individual Applicant; §535.142, Consumer Complaint Processing; and §535.400, Registration of Easement or Right-of-Way Agents, 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 36 Discussion and possible action to align response times with other TREC rules and propose conforming amendments to 22 TAC:
a. §535.402, Complaints, Disciplinary Actions and Appeals;
b. §539.150, Complaints; and
c. §543.5, Violations

ACTION: Commissioner Leonard, duly seconded by Chair Kesner, moved to authorize staff on behalf of the Commission to submit the proposed amendments to 22 TAC §535.402, Complaints, Disciplinary Actions and Appeals, §539.150, Complaints, and §543.5, Violations, 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 37 Discussion and possible action to propose amendments and a new rule to 22 TAC, Chapter 535, Subchapter R, regarding inspectors as follows:
a. §535.209, Examinations;
b. §535.212, Education and Experience Requirements for a License;
c. §535.213, Qualifying Real Estate Inspector Courses; and
d. §535.214, Education and Experience Requirements for a License (NEW)

ACTION: Commissioner Leonard, duly seconded by Commissioner Miller, moved to authorize staff on behalf of the Commission to submit the proposed amendments to 22 TAC §535.209, Examinations, §535.212, Education and Experience Requirements for a License, §535.213, Qualifying Real Estate Inspector Courses, and new rule §535.214, Education and Experience Requirements for a License, 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 38 Discussion and possible action to propose amendments to 22 TAC, Chapter 537, regarding Standard Contract forms as follows:
a. §537.20, Standard Contract form TREC No. 9-13 (Unimproved Property Contract);
b. §537.28, Standard Contract form TREC No. 20-14 (One to Four Family Residential Contract (Resale));
c. §537.30, Standard Contract form TREC No. 23-15 (New Home Contract (Incomplete Construction));
d. §537.31, Standard Contract form TREC No. 24-15 (New Home Contract (Completed Construction));
e. §537.32, Standard Contract form TREC No. 25-12 (Farm and Ranch Contract);
f. §537.37, Standard Contract form TREC No. 30-13 (Residential Condominium Contract (Resale));
g. §537.43, Standard Contract form TREC No. 36-8 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association);
h. §537.47, Standard Contract form TREC No. 40-8 (Third Party Financing Addendum); and
i. §537.55, Standard Contract form TREC No. 48-0 (Addendum for Authorizing Hydrostatic Testing)

ACTION: Commissioner Miller, duly seconded by Commissioner Hartgraves moved to authorize staff on behalf of the Commission to submit the proposed amendments to 22 TAC Chapter 537, and the forms adopted by reference, 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 39 Discussion regarding State Auditor's Report

Presented by Priscilla Pipho, Director of Staff & Support Services

Agenda Item 40 Discussion regarding Licensing Processes Internal Audit Report

Presented by Darlene Brown, McConnell & Jones, LLP

Agenda Item 41 Discussion and possible action regarding approval of Internal Audit Plan for FY2020

ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved to approve the Internal Audit Plan for FY2020. The motion was adopted by unanimous vote.

Agenda Item 42 Discussion and possible action to approve the text of Legal Update I and II required continuing education courses for 2020-21

ACTION: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to approve the text of the Legal Update I and II required continuing education courses for 2020-21, as presented.  The motion was adopted by unanimous vote.

Agenda Item 43 Discussion and possible action regarding future agenda items

No items were suggested.

Agenda Item 44 Discussion and possible action to schedule future meetings

The next meetings of the Commission are currently scheduled for November 12 and 13 for a workshop and regular meeting.

Agenda Item 45 Adjourn

ACTION: The meeting was adjourned at 3:12 p.m.