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Meeting Details

11/18/2014 at 09:00 am
Stephen F. Austin Building, Room 170
1700 North Congress
Austin, TX 78701

Meeting Materials

Meeting Video

TREC Commission Meeting


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 commission may have taken items out of order.

Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 9:02 a.m.

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

ACTION: Upon motion by Commissioner Jones, duly seconded by Commissioner Arriaga, the Commission, by unanimous vote, excused the absences of Commissioners Martinez and Alley

Agenda Item 3 Establish a committee to recommend 2015 appointments to the Texas Real Estate Inspector Advisory Committee

ACTION: Chair Wukasch appointed Commissioners Jones and Turner and inspectors Cecil Brooks and Fred Buck to interview the candidates and make a recommendation to the Commission

Agenda Item 4 Establish a committee to recommend 2015 appointments to the Education Standards Advisory Committee

ACTION: Chair Wukasch appointed Commissioners Justice, Hensley and Arriaga to interview the candidates and make a recommendation to the Commission

Agenda Item 5 Reports by administrator, general counsel, and division directors of monthly activities and statistical data for communications, licensing, education, enforcement, information technology, 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 were given by the following:

Douglas Oldmixon, Administrator;

Lorie DeAnda, Director of Reception & Communication Services;

Gwen Jackson, Director of Education & Licensing Services;

Mark Moore, Director of Standards & Enforcement Services;

Tom Watson, Director of Information & Technology Services; and

Melissa Huerta, Director of Staff & Support Services.

Commissioner Martinez joined the meeting at 9:25 a.m.

Agenda Item 6 Report by Executive Committee

ACTION: Report given by Chair Wukasch

Agenda Item 7

ACTION: Report given by Susan Jones, Chair of the committee

Agenda Item 8 Report by Broker Responsibility Working Group

ACTION: Report given by Kerri Lewis for Mac McClure, Chair of the committee

Agenda Item 9 Report by Texas Real Estate Inspector Committee

ACTION: Report given by Kristen Worman for Brian Murphy, Chair of the committee

Agenda Item 10 General comments from visitors on non-agenda items

COMMENTS: Mike Cothran spoke on behalf of coalition of trade associations: TAREI, TPREIA and InterNACHI

Agenda Item 11 Executive session to discuss pending litigation or obtain advice of legal counsel on agenda items pursuant to Texas Government Code §551.071

ACTION: The executive session began at 10:00 a.m.

The meeting resumed at 10:50 a.m.

Agenda Item 12 Consideration and possible action regarding proposal for decision in the matter of
a. Docket No. 329-14-3606.REC; Texas Real Estate Commission v. Ronnie McCullough
b. Docket No. 329-14-1939.REC; Texas Real Estate Commission v. Gilbert Julian Quinones

ACTION: Upon motion of Commissioner Arriaga, duly seconded by Commissioner Hensley, the Commission, by unanimous vote, accepted the ALJ's recommendation that the professional inspector license of Ronnie McCullough be suspended for twelve months and assessed an administrative penalty of $7,750.

ACTION: Upon motion of Commissioner Martinez, duly seconded by Commissioner Arriaga, the Commission, by unanimous vote, accepted the ALJ's recommendation with certain changes to the Findings of Fact and Conclusions of Law and assessed an administrative penalty of $18,000.

Agenda Item 13 Discussion and possible action to authorize settlement of recovery fund claims or take other action on
a. RF 14-010 Martinez, Manuel, et al. v. Reyes, Robert, et al.
b. RF 15-004 Jon Parker and Ann Parker v. Guadalupe Colindres, Townline Properties, LLC
c. RF 14-009 Miguel Lozano v. Mannaser D. Marshall
d. RF 15-006 Richard B. Notley v. Bill Kalil
e. RF 15-002 Kearns and Kearns v. Crosby, et al.

ACTION: Upon motion of Commissioner Justice, duly seconded by Commissioner Hensley , the Commissioner, by unanimous vote, approved actual damages of $48,246.55, plus interest, court costs and attorney fees of $15,000.00 upon receipt of additional documentation required by general counsel in RF 14010, Martinez, Manuel, et al. v. Reyes, Robert, et al.

ACTION: Upon motion of Commissioner Hensley, duly seconded by Commissioner Arriaga, the Commission, by unanimous vote, approved payment of actual damages of $10,000.00, plus interest and court costs in RF 15004, Jon Parker and Ann Parker v. Guadalupe Colindres, Townline Properties, LLC

ACTION: Upon motion of Commissioner Jones, duly seconded by Commissioner Justice, the Commission, by unanimous vote, approved payment of actual damages of $8,633.51, plus interest and court costs in RF 14009, Miguel Lozano v. Mannaser D. Marshall

ACTION: Upon motion of Commissioner Westcott, duly seconded by Commissioner Justice, the Commission, by unanimous vote, approved payment of $42,000.00 plus interest, court costs and reasonable attorney fees in RF 15006, Richard B. Notley v. Bill Kalil

No Action was taken on Agenda Item 13.e.

Agenda Item 14 Discussion and possible action to adopt amendments to and repeal sections of 22 TAC Chapter 535, General Provisions as follows:
a. Subchapter A, Definitions
b. Subchapter B, General Provisions Relating to the Requirements of Licensure
c. Subchapter C, Exemptions to Requirements of Licensure
d. Subchapter D, The Commission
e. Subchapter E, Requirements for Licensure
f. Subchapter F, Pre-License Education and Examination
g. Subchapter G, Mandatory Continuing Education
h. Subchapter H, Recovery Fund
i. Subchapter I, Licenses
j. Subchapter J, Fees
k. Subchapter K, Place of Business
l. Subchapter L, Termination of Salesperson’s Association with Sponsoring Broker
m. Subchapter M, Nonresidents
n. Subchapter N, Suspension and Revocation of Licensure
o. Subchapter O, Hearing on Suspension or Revocation of Licensure
p. Subchapter P, Penalty for Unlicensed Activity
q. Subchapter Q, Administrative Penalties
r. Subchapter R, Real Estate Inspectors
s. Subchapter S, Residential Rental Locators
t. Subchapter T, Easement or Right-of-Way Agents

ACTION: Commissioner Jones, duly seconded by Commissioner Justice, moved that staff be authorized, on behalf of this Commission to submit for adoption amendments to and repeal of rules in 22 TAC Chapter 535, as previously published in the Texas Register, with changes to the text as presented by staff, along with any technical or non-substantive changes required for adoption, except for §535.53 and §535.81, which are not adopted, to be effective January 1, 2015. Additionally, staff is authorized to make any necessary changes to application forms to reflect changes to terminology, fees or processes set out in the amendments adopted.

COMMENTS on 14.d.: Mike Cothran spoke on behalf of coalition of trade associations: TAREI, TPREIA and InterNACHI

COMMENTS on 14.f.: Stan Harbuck, A Better School of Building Inspection

COMMENTS on 14.f.: Mike Cothran spoke on behalf of coalition of trade associations: TAREI, TPREIA and InterNACHI

COMMENTS on 14.f.: Dan Hatfield, 2014 Chairman of TAR

Agenda Item 15 Discussion and possible action to adopt amendments to 22 TAC Chapter 537, Professional Agreements and Standard Contracts , including:
a. §537.11 Use of Standard Contract Forms
b. §537.51 Standard Contract Form TREC No. 44-1, Addendum for Reservation of Oil, Gas and Other Minerals

ACTION: Commissioner Justice, duly seconded by Commissioner Arriaga, moved that staff be authorized on behalf of this Commission to submit for adoption, amendments to 22 TAC Chapter 537, as previously published in the Texas Register, with changes to the text and form adopted by reference as presented along with any technical or non-substantive changes required for adoption. The revised Addendum for Reservation of Oil, Gas and Other Minerals, which is adopted by reference in §537.51 is adopted for voluntary use until March 1, 2015, at which time its use will become mandatory.

COMMENTS: Dan Hatfield, 2014 Chairman of TAR

Agenda Item 16 Discussion and possible action to adopt amendments to 22 TAC Chapter 539, Provisions of the Residential Service Company Act

ACTION: Commissioner Arriaga, duly seconded by Commissioner Jones moved that staff be authorized, on behalf of this Commission to submit for adoption amendments to 22 TAC Chapter 539, as previously published in the Texas Register with changes to the text as presented along with any technical or non-substantive changes required for adoption, except for amendments to §539.81, which are not adopted.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC Chapter 543, Rules Relating to the Provisions of the Texas Timeshare Act

ACTION: Commissioner Hensley, duly seconded by Commissioner Justice moved that staff be authorized on behalf of this Commission to submit for adoption amendments to 22 TAC 543, Rules Relating to the Provisions of the Texas Timeshare Act, and the form adopted by reference, without changes to the text as previously published in the Texas Register, except for any technical or non-substantive changes required for adoption.

Agenda Item 18 Discussion and possible action to propose amendments to §535.53, Business Entity; Designated Broker

ACTION: Commissioner Westcott, duly seconded by Commission Justice moved that staff be authorized, on behalf of this Commission, to submit the proposed amendments to §535.53, Business Entity; Designated Broker as presented, along with any technical or non-substantive changes required for proposal, to the Texas Register, for publication and public comment.

Agenda Item 19 Discussion and possible action to propose revocation of §535.81, Real Estate Recovery Trust Account

ACTION: Commissioner Turner, duly seconded by Commissioner Martinez moved that staff be authorized, on behalf of this Commission, to submit the proposed revocation of §535.81 Real Estate Recovery Trust Account, as presented, along with any technical or non-substantive changes required for revocation, to the Texas Register, for publication and public comment.

Agenda Item 20 Discussion and possible action to propose amendments to §539.81, Funded Reserve

ACTION: Commissioner Martinez, duly seconded by Commissioner Justice moved that staff be authorized, on behalf of this Commission, to submit the proposed amendments to §539.81, Funded Reserves, as presented, along with any technical or non-substantive changes required for proposal, to the Texas Register, for publication and public comment.

COMMENTS: Jon Gillum, attorney with Locke Lord, LLP

Agenda Item 21 Discussion and possible action to propose amendments to §535.212, Education and Experience Requirements for a License

ACTION: Commissioner Justice, duly seconded by Commissioner Turner moved that staff be authorized, on behalf of this Commission to submit the proposed amendments to §535.212, 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.

Agenda Item 22 Discussion and possible action to close the review of :
a. 22 TAC, Chapter 537, Professional Agreements and Standard Contracts
b. 22 TAC, Chapter 539, Provisions of the Residential Service Company Act
c. 22 TAC Chapter 543, Rules Relating to the Provisions of the Texas Timeshare Act

ACTION: Commissioner Jones, duly seconded by Commissioner Arriaga, moved that staff be authorized, on behalf of this Commission to close the rule review of 22 TAC Chapter 537, Professional Agreements and Standard Contracts, Chapter 539, Provisions of the Residential Service Company Act and Chapter 543, Rules Relating to the Provisions of the Texas Timeshare Act.

Agenda Item 23 Discussion and possible action regarding possibility of continuing education credit roll over to subsequent renewal periods

ACTION: Referred back to ESAC for further discussion.

Agenda Item 24 Discussion regarding SAO Audit Report

Greg Adams spoke on behalf of the SAO

Report by Melissa Huerta, Director of Staff & Support Services

No action was required or taken.

Agenda Item 25 Discussion and possible action to approve changes to TREC form:
a. Course and Instructor Evaluation Form

ACTION: Commissioner Arriaga, duly seconded by Commissioner Jones, moved that the Commission approve changes to TREC form ED_CIE-1, Course and Instructor Evaluation Form, as presented, along with any technical and non-substantive changes.

Agenda Item 26 Discussion and possible action regarding future agenda items

Agenda Item 27 Discussion and possible action to schedule future meetings

ACTION: The future meetings of the Commission are scheduled for February 9, 2015, and May 4, 2015, at 10:00 a.m.

Commissioner Martinez asked Commissioner Arriaga to co-serve with Commissioner Alley on the strategic building plan as discussed at the last meeting and for Administrator Oldmixon to include Commissioner Arriaga on any communications with Commissioner Alley. Commissioner Arriaga accepted.

Agenda Item 28 Adjourn

ACTION: The meeting was adjourned at 12:25 p.m.