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05/04/2020 at 10:00 am
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TREC Commission Meeting


The meeting agenda and any meeting materials can be found under "Meeting Materials" on the right side of this page. These minutes set out the agenda item, the subject matter discussed, and any action taken on each item.

Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Kesner called the meeting to order at 10:00 a.m.

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

No action needed.

Agenda Item 3 Opening remarks and report from the Chair

ACTION: Chair Kesner provided opening remarks.

Agenda Item 4 Discussion and appointments to the Broker Responsibility Working Group

ACTION: Commissioner Miller, seconded by Commissioner Leonard, moved appoint the following individuals to the Broker Responsibility Working Group:
Chance Brown, Houston;
Socar Chatmon-Thomas, Austin;
Holly Hightower, Tyler;
Bob Jacobs, San Antonio;
Leslie Lerner, Houston;
Yazmin Perez, Hutto;
William Roth, Dallas;
Brian Sales, Midland; and
Pamela Titzell, Lubbock.
The motion was adopted by unanimous vote.

Agenda Item 5 Staff reports by Executive Director, Deputy Executive Director, and Division Directors regarding agency operations, initiatives, and division updates

ACTION: Reports were given by the following:

Chelsea Buchholtz, Executive Director
Tony Slagle, Deputy Executive Director

Agenda Item 6 Report by the Executive Committee

ACTION: Report given by Chair Kesner

Agenda Item 7 Report by the Budget Committee

ACTION: Report given by Commissioner Williams

Agenda Item 8 Report by the Enforcement Committee

ACTION: Report given by Commissioner Turner

Agenda Item 9 Report by Broker-Lawyer Committee

ACTION: Report given by Ron Walker, Co-Chair of the committee

Agenda Item 10 Report by Education Standards Advisory Committee

ACTION: Report given by Kelea Youngblood, Chair of the committee

Agenda Item 11 Report by Texas Real Estate Inspector Committee

ACTION: Report given by Lee Warren, Chair of the committee

The Commission went into a break at 11:28 a.m.
Chair Kesner reconvened the meeting at 11:37 a.m.

Agenda Item 12 Members of the public have the opportunity to address the Commission concerning an agenda item or an issue of public interest that is not on the agenda. Anyone wishing to provide public comment on an issue of public interest that is not on the agenda may do so under this section.  Members of the public who wish to speak on a matter specifically listed on the agenda may do so at the time that agenda item is heard.

All individuals wishing to provide public comment of any sort should fill out a speaker request form with the agency’s designated agent.  

Comment:
Douglas Oldmixon

Agenda Item 13 Consideration and possible action regarding proposal for decision in the matter of

a. SOAH Docket No. 329-20-0305.REC; Texas Real Estate Commission v. Johnny Wayne Nail

b. SOAH Docket No. 329-20-1466.REC & 329-20-1730; Texas Real Estate Commission v. Networth Realty of Houston LLC and Scott Allen McClellan

Speaker:
Johnny Wayne Nail

ACTION on 13.a.: Commissioner Stephens, seconded by Commissioner Wilkinson, moved to accept the PFD as written with changes to remove that Respondent violated 22 TAC §535.228(a)(1)(D)(ii) and to assess a $500 administrative penalty against Johnny Wayne Nail to be paid in ten installments. The motion was adopted by unanimous vote.

ACTION on 13.b.: Commissioner Williams, seconded by Commissioner Leonard, moved to accept the PFD as written to assess a $1,750 administrative penalty and to suspend the broker license of Scott Allen McClellan until the administrative penalty is paid in full. The motion was adopted by unanimous vote.

Agenda Item 14 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.

Chair Kesner reconvened the meeting at 2:18 p.m.

Agenda Item 15 Discussion and possible action to authorize settlement of recovery fund claims or take other action on:

a. RF 19015; Danny Segev, Idit Segev and DIS Enterprises, LLC v. David Vincent Ehrler, Jr.
b. RF 20006; Benjamin Sanchez v. Azucena "Susana" Cordova
c. RF 20007; Sun Unity Investments, LLC v. Ronald Lee Tarvin d/b/a Texas Choice Realty
d. RF 20010; Darren K. Richardson v. Tramonica Green w/ Texas Premier Realty
e. RF 20011; Juan Carlos Aguirre-Suarez and Lillia Pantoja-Rodriguez v. Edwardo Cavada and Jovan Manuel Mondragon
f. RF 20012; Kurt Schuetz v. Charlene Stark King d/b/a King Real Estate
g. RF 20013; Xavier Flores v. Jerry Tubbs

Note: No action was taken on 15.e.

ACTION: Commissioner Turner, seconded by Commissioner Leonard moved

on Agenda Item 15.a., to authorize a settlement payment of $32,620.49 in actual damages plus court costs and reasonable attorney's fees to DIS Enterprises, LLC, and $10,029.51 in actual damages plus court costs and reasonable attorney's fees to Danny Segev and Idit Segev;

on Agenda Item 15.b., to authorize a settlement payment of $8,600.00 in actual damages plus interest, court costs, and reasonable attorney's fees;

on Agenda Item 15.c., to authorize a settlement payment of $100,000.00, the maximum amount allowed by law;

on Agenda Item 15.d., to authorize a settlement payment of $15,769.16 in actual damages plus interest and court costs;

on Agenda Item 15.f., to authorize a settlement payment of $19,743.34 in actual damages plus interest, court costs, and reasonable attorney's fees; and

on Agenda Item 15.g., to authorize a settlement payment of $10,750.00 in actual damages plus interest, court costs, and reasonable attorney's fees.

The motion was adopted by unanimous vote.

Agenda Item 16 Discussion and possible action to adopt amendments to 22 TAC Chapter 535, Subchapter G as follows:
a. §535.72, Approval of Non-elective Continuing Education Courses
b. §535.73, Approval of Elective Continuing Education Courses
c. §535.75, Responsibilities and Operations of Continuing Education Providers

Comments:
Scott Hilton
Kimberly Dydalewicz

ACTION: Commissioner Leonard, seconded by Commissioner Williams, moved to authorize staff, on behalf of the 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 with Commissioner Stephens voting no.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC §535.92, Continuing Education Requirements

Comment:
Rick Albers

ACTION: Commissioner Wilkinson, seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.92, Continuing Education Requirements, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption.  No vote was taken.
Commissioner Leonard, seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.92, Continuing Education Requirements, 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 Chapter 535, Subchapter R as follows:
a. §535.210, Fees
b. §535.215, Inactive Inspector Status

ACTION: Commissioner Leonard, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC Chapter 535, Subchapter R, 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 §539.140, Schedule of Administrative Penalties

ACTION: Commissioner Leonard, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §539.140, Schedule of Administrative Penalties, 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 propose amendments to 22 TAC §535.65, Responsibilities and Operations of Providers of Qualifying Courses

ACTION: Commissioner Russell, seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed amendment to §535.65, Responsibilities and Operations of Providers of Qualifying Courses, 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 21 Discussion and possible action to propose amendments to 22 TAC, Chapter 535, Subchapter R as follows:
§535.208, Application for a License;    
§535.209, Examinations;
§535.212, Education and Experience Requirements for a License;
§535.213, Qualifying Real Estate Inspector Courses; and
§535.214, Education and Experience Requirements for a License (NEW)

Comment:

Stan Harbuck

ACTION:  Commissioner Leonard, seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments and new rule to 22 TAC Subchapter R, 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 22 Discussion and possible action to propose amendments to 22 TAC, §535.400; Registration of Easement and Right-of-Way Agents

ACTION: Commissioner Leonard, seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.400, Registration of Easement and 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 23 Discussion and possible action to propose amendments to 22 TAC, Chapter 537, regarding Standard Contract forms as follows:
§537.20, Standard Contract form TREC No. 9-13 (Unimproved Property Contract);
§537.28, Standard Contract form TREC No. 20-14 (One to Four Family Residential Contract (Resale));
§537.30, Standard Contract form TREC No. 23-15 (New Home Contract (Incomplete Construction));
§537.31, Standard Contract form TREC No. 24-15 (New Home Contract (Completed Construction));
§537.32, Standard Contract form TREC No. 25-12 (Farm and Ranch Contract);
§537.37, Standard Contract form TREC No. 30-13 (Residential Condominium Contract (Resale)
§537.43, Standard Contract form TREC No. 36-8 (Addendum for Property Subject to Mandatory Membership   in a Property Owners Association);
§537.58, Standard Contract form TREC No. 51-0 (Addendum Regarding Residential Leases) (NEW); and
§537.59, Standard Contract form TREC No. 52-0 (Addendum Regarding Fixture Leases) (NEW)

Comment:
Lori Levy

ACTION: Commissioner Stephens moved to authorize staff on behalf of the Commission, to submit the proposed rules to 22 TAC Chapter 537 and the forms adopted by reference, excluding paragraphs 4, 5, 18, and 23 related to the option fee, and excluding the new Residential Leases addendum, to the Texas Register, for publication and public comment and to return these paragraphs and the Residential Leases addendum to the Broker-Lawyer Committee for further consideration. The motion was withdrawn.  Commissioner Stephens, seconded by Commissioner Leonard, moved to postpone submitting the proposed rules to 22 TAC Chapter 537 and forms adopted by reference to the Texas Register and send them back to the Broker-Lawyer Committee for further review.  The motion failed with Commissioners Wilkinson and Stephens voting yes. Commissioner Russell, seconded by Commissioner Miller, 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, 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 Stephens voting no.

Agenda Item 24 Report on Market Trends by Texas A&M University Real Estate Center

Agenda Item 24 resumed after technical difficulties.

ACTION: Report given by Dr. James P. Gaines, Chief Economist, Texas A&M Real Estate Center

Agenda Item 25 Discussion and possible action regarding Budget and Investment Policy

ACTION: Commissioner Leonard, seconded by Commissioner Stephens, moved to approve the Budget and Investment Policy as presented. The motion was withdrawn.  Commissioner Stephens, seconded by Commissioner Turner, moved to take no action on the Budget and Investment Policy and bring it back at the August Commission meeting.  Commissioner Stephens, seconded by Commissioner Williams, revised her motion and moved to take no action on the Budget and Investment Policy or the FY2021 draft budget in Agenda Item 26. The revised motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action regarding FY2021 draft budget

ACTION: See motion under Agenda Item 25.

Agenda Item 27 Discussion and possible action to establish a process concerning committee appointments

No action required.

Agenda Item 28 Discussion and possible action to establish a process concerning Commissioner attendance at public meetings

ACTION: The Commission decided by consensus for Commissioners to notify the Chair, Executive Director, or General Counsel at least 24 hours in advance if they are unable to attend a meeting.

Agenda Item 29 Discussion and possible action regarding FY2021-2025 Strategic Plan

ACTION:  Commissioner Leonard, seconded by Commissioner Miller, moved to delegate approval of the FY2021-2025 Strategic Plan to the Executive Committee. The motion was adopted with Commissioner Williams abstaining.

Agenda Item 30 Discussion and possible action to approve new or changes to TREC forms:
a. DE CIE-0; Distance Education Course Evaluation Form
b. CL CIE-0; Classroom Course Evaluation Form

ACTION: Commissioner Wilkinson, seconded by Commissioner Stephens moved to approve new forms as presented.  The motion was adopted by unanimous vote.

Agenda Item 31 Discussion and possible action regarding future agenda items

ACTION: Commissioner Miller requested a discussion regarding a possible new license for manufactured housing and if it is considered real property or personal property.

Agenda Item 32 Discussion and possible action to schedule future meetings

ACTION: The next meeting of the Commission is scheduled for August 10, 2020, at 10:00 a.m.

Agenda Item 33 Adjourn

ACTION: Commissioner Leonard, seconded by Commissioner Turner, moved to adjourn the meeting.  The motion was adopted unaimously and the meeting adjourned at 3:44 p.m.