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. To hear the full discussion on any agenda item, click on the link, and you will be taken directly to that section of the meeting video on the right side of the screen.
Note: While the written portion of the minutes below are published in agenda order, the items may have been presented in a different order.
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
ACTION: Commissioner Leonard, seconded by Commissioner Russell moved to excuse the absence of Commissioner Williams. The motion was adopted by unanimous vote.
Agenda Item 3 Opening remarks and report from the Chair
Chair Kesner provided opening remarks.
Agenda Item 4 Discussion and possible action regarding appointments to:
a. Education Standards Advisory Committee;
b. Texas Real Estate Inspector Committee; and
c. Broker Responsibility Working Group
ACTION: Commissioner Wilkinson, seconded by Commissioner Leonard, moved to accept the appointments as follows:
4.a. For a term beginning January 1, 2021, through December 31, 2022, License Holder members: Lynda Conway, Round Rock; Chuck Jacobus, Bellaire; Marion Napoleon, Grand Prairie; and Bill Steddum, Jr., Midlothian. Alternates: Michael Butler, Mary Miner, and Ruben Peña; Educator members: Michael Crowley, San Antonio; and Kelea Youngblood, Austin. Alternates: Thomas Leatherman, Rick Snow, and Byron Underwood, and ratification of Charles Porter's Broker appointment to expire December 31, 2021.;
4.b. For a term beginning January 1, 2021, through December 31, 2026, Inspector Members: Bruce Carpenter, Pittsburg; and Scott Regan, Austin. Alternate: James Kelly Lalor. For a term beginning January 1, 2021, through December 31, 2022, Public Member: Brian Carroll, Temple; and
4.c. Bob Baker, Plano.
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
Reports were given by the following:
Chelsea Buchholtz, Executive Director
Tony Slagle, Deputy Executive Director
Agenda Item 6 Annual report regarding Timeshares and Residential Service Companies
Report given by Beverly Rabenberg, Program Manager and Attorney
Agenda Item 7 Report by the Executive Committee
Report given by Chair Kesner
Agenda Item 8 Report by Education Standards Advisory Committee
Report given by Kelea Youngblood, Chair of the committee
Agenda Item 9 Report by Texas Real Estate Inspector Committee
Report given by Lee Warren, Chair of the committee
Agenda Item 10 Report by Broker Responsibility Working Group
Report given by Leslie Lerner, Chair of the committee
Agenda Item 11 Report by Broker-Lawyer Committee
Report given by Ron Walker, Co-chair of the committee
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.
No verbal comments were given. One written comment was submitted.
Agenda Item 13 Consideration and possible action regarding proposal for decision in the matter of:
SOAH Docket No. 329-20-3070.REC TREC vs. Landon Burke;
SOAH Docket No. 329-20-3071.REC.TREC vs. Ebby Halliday Real Estate, Inc.; and
SOAH Docket No. 329-20-3072.REC TREC vs. Betty L. Misko
ACTION: Commissioner Kesner, seconded by Commissioner Stephens, moved to adopt the PFD as written with the following changes to the Findings of Fact and Conclusions of Law:
The Commission strikes finding fact number 11 as listed in the Proposal for Decision and replaces it with the following:
Respondent Burke did not provide the Buyer an IABS notice until July 13, 2017.
The Commission strikes finding of fact number 28 as listed in the Proposal for Decision.
The Commission strikes finding of fact number 29 as listed in the Proposal for Decision and replaces it with the following:
29. Respondents Halliday and Misko failed to properly supervise Respondent Burke.
The Commission strikes finding of fact number 30 in its entirety as listed in the Proposal for Decision.
Conclusions of Law
The Commission strikes conclusion of law number 6 as listed in the Proposal for Decision and replaces it with the following:
Respondent Burke failed to provide an IABS notice to the Buyer at the first substantive communication relating to a proposed real estate transaction, and therefore violated Texas Occupations Code § 1101.558.
The Commission strikes conclusion of law number 8 as listed in the Proposal for Decision and replaces it with the following:
8. In not forwarding the email he received from Cornerstone to the Buyer, Respondent Burke acted negligently or incompetently, and therefore did violate Texas Occupations Code § 1101.652(b)(1).
The Commission strikes conclusion of law number 9 as listed in the Proposal for Decision and replaces it with the following:
9. Respondents Halliday and Misko failed to properly supervise Respondent Burke in violation of 22 Tex. Admin. Code § 535.2(a).
The Commission strikes conclusion of law number 10 and replaces it with the following:
10. Based on the above Findings of Fact and Conclusions of Law, disciplinary action should be taken against Respondents.
Move to direct staff to make any non-substantive typographical and numbering changes as necessary to the order.
In accordance with the agency’s penalty matrix and as a result of the above, I further move that Landon Burke is assessed an administrative penalty of $3,250, reprimanded, and his Texas real estate sales agent license is suspended until the administrative penalty is paid in full effective December 7, 2020.
Move that Ebby Halliday Real Estate, Inc. is assessed administrative penalty of $2,500, reprimanded, and its Texas real estate broker license is suspended until the administrative penalty is paid in full, effective December 7, 2020.
Move that Betty L. Misko is assessed a $1,750 administrative penalty, reprimanded, and her Texas Real Estate broker license is suspended until the administrative penalty is paid in full, effective December 7, 2020.
Further move that as required by Government Code Section 2001.058 and agency rule, the purpose of the Commission modifying the Findings of Fact and Conclusions of Law to more fully reflect the evidence discussed in the PFD and to conform to applicable statutes and rules regarding the evidence the Commission must consider. The Conclusions of Law are modified to reflect the Commission’s ability to impose discipline and assess penalties if a license holder has acted negligently or incompetently in a manner that directly relates to the duties and responsibilities of the licensed occupation and due consideration of the Findings of Fact as modified. 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 11:32 a.m.
The meeting resumed at 1:15 p.m.
Agenda Item 15 Discussion and possible action to adopt amendments to 22 TAC §531.18, Consumer Information
ACTION: Commissioner Turner, seconded by Commissioner Leonard, moved to submit for adoption, amendments to 22 TAC §531.18, Consumer Information, and the form adopted by reference, 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, 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. §537.58, Standard Contract form TREC No. 51-0 (Addendum Regarding Residential Leases) (NEW); and
i. §537.59, Standard Contract form TREC No. 52-0 (Addendum Regarding Fixture Leases) (NEW)
ACTION: Commissioner Leonard, seconded by Commissioner Wilkinson, moved to submit for adoption, amendments to 22 TAC Chapter 537, and the forms adopted by reference, to the Texas Register along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.
ACTION: Commissioner Leonard, seconded by Commissioner Miller, moved to have another Commission meeting in late November or early December to propose changes to two additional contract addenda. The motion was adopted by unanimous vote.
Agenda Item 17 Discussion and possible action to propose repeal of 22 TAC §534.7, Vendor Protest Procedures
ACTION: Commissioner Stephens, seconded by Commissioner Wilkinson, moved to submit the proposed repeal of 22 TAC §534.7, Vendor Protest Procedures, 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 18 Discussion and possible action to propose amendments to 22 TAC §534.7, Vendor Protest Procedures (NEW)
ACTION: Commissioner Leonard, seconded by Commissioner Stephens, moved to submit the proposed new 22 TAC §534.7, Vendor Protest Procedures, 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 amendments to 22 TAC §535.91, Renewal of a Real Estate License
ACTION: Commissioner Leonard, seconded by Commissioner Wilkinson, moved to submit the proposed amendments to 22 TAC §535.91, Renewal of a Real Estate 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 20 Discussion and possible action to propose amendments to 22 TAC §535.191, Schedule of Administrative Penalties
ACTION: Commissioner Stephens, seconded by Commissioner Leonard, moved to submit the proposed amendments to 22 TAC §535.191, 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 21 Discussion and possible action to propose amendments to 22 TAC §535.216, Renewal of License
ACTION: Commissioner Leonard, seconded by Commissioner Wilkinson, moved to submit the proposed amendments to 22 TAC §535.216, Renewal of 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 22 Discussion regarding results of Public Funds Investment Act Audit and Compliance Statement.
Presented by Ranada Williams, Director of Finance
Agenda Item 23 Discussion regarding Comptroller's Post-payment Audit Report
Presented by Ranada Williams, Director of Finance
Agenda Item 24 Discussion regarding FY2020 Annual Internal Audit Report
Presented by Darlene Brown, McConnell and Jones
Agenda Item 25 Discussion and possible action regarding upcoming legislative session initiatives
ACTION: Commissioner Leonard, seconded by Commissioner Turner, moved to direct staff to proceed with the legislative session initiatives as presented and to work with the Executive Committee on any issues that may arise. Commissioner Stephens, seconded by Commissioner Russell moved to direct staff to proceed with the legislative session initiatives, as presented, with the exception of the Real Estate Inspection Recovery Fund, and to work with the Executive Committee on any issues that may arise. Commissioner Leonard's motion was adopted by unanimous vote.
Agenda Item 26 Discussion and possible action to nominate candidates for the offices of Vice Chair and Secretary of the Commission
No action was taken.
Agenda Item 27 Discussion and possible action regarding future agenda items
Commissioner Leonard requested an update regarding the 2019 Governor Abbott letter concerning reducing barriers to entry.
Agenda Item 28 Discussion and possible action to schedule future meetings
ACTION: The meeting schedule for the next calendar was presented as follows:
Feb.
Tues. 2/16 Meeting
Wed. 2/17 Workshop (likely budget related)
May
Mon. 5/3 Meeting
Tues. 5/4 Workshop (if desired)
Aug.
Mon. 8/9 Meeting
Tues. 8/10 Workshop (if desired)
Nov.
Mon. 11/8 Meeting
Tues. 11/9 Annual Training Workshop
Agenda Item 29 Adjourn
ACTION: Chair Kesner, seconded by Commissioner Leonard, moved to adjourn the meeting. The motion was adopted by unanimous vote and the meeting was adjourned at 2:05 p.m.