Agenda Item 1 Call to order and pledges of allegiance
ACTION: Chair Kesner called the meeting to order at 9:04 a.m.

Agenda Item 2 Discussion and possible action to excuse Commissioner absence(s), if any
ACTION: Commissioner Peña, seconded Commission Woodroof, moved to excuse the absence of Commissioner Bernstein. The motion was adopted by unanimous vote.

Agenda Item 3 Opening remarks and report from the Chair
Remarks given by Chair Kesner.

Agenda Item 4 Welcome new Commissioners and recognition of departing Commissioners
Chair Kesner welcomed new members Stuart Bernstein, Chance Brown, and Renee Harvey Lowe and recognized outgoing members Jan Fite Miller, DeLora Wilkinson, and Micheal Williams.

Agenda Item 5 Discussion and appointments to:
a. Enforcement Committee
b. Budget Committee
c. Audit Committee
d. Commission liaison to the Texas Real Estate Inspector Committee
e. Commission liaison to the Education Standards Advisory Committee
f. Commission liaison to the Broker Responsibility Working Group
g. Commission liaison to the Texas Broker-Lawyer Committee
h. Ex-Officio to the Texas A&M University Texas Real Estate Research Center Advisory Committee
ACTION: Chair Kesner made the following appointments:
5.a. Commissioners Hartgraves, Chair, Russell, and Harvey Lowe to the Enforcement Committee
5.b. Commissioners Woodroof, Chair, Bernstein, and Lerner to the Budget Committee
5.c. Commissioners Peña, Chair, and Brown to the Audit Committee
5.d. Commissioners Lerner and Kesner as Commission liaisons to the Texas Real Estate Inspector Committee
5.e. Commissioner Russell as Commission liaison to the Education Standards Advisory Committee
5.f. Commissioners Lerner and Brown as Commission liaisons to the Broker Responsibility Working Group
5.g. Commissioners Hartgraves, Harvey Lowe, and Kesner as Commission liaisons to the Texas Broker-Lawyer Committee
5.h. Commissioner Russell as the Ex-Officio member to the Texas A&M University Texas Real Estate Research Center Advisory Committee

Agenda Item 6 Appointment of a committee to review applicants to the Texas Real Estate Broker-Lawyer Committee
ACTION: Chair Kesner appointed Commissioners Hartgraves, Woodroof, and himself along with Ron Walker to review applicants for the Broker-Lawyer Committee

Agenda Item 7 Appointment of a committee to review applicants to the Texas Real Estate Inspector Committee
ACTION: Chair Kesner appointed Commissioners Lerner, Peña, and himself along with Lee Warren to review applicants for the Inspector Committee

Agenda Item 8 Report by the Education Standards Advisory Committee
Report given by Jennifer Wheeler, Director, Education & Examinations Division

Agenda Item 9 Report by the Broker Responsibility Working Group
Report given by Commissioner Brown

Agenda Item 10 Report by The Texas Real Estate Inspector Committee
Report given by Chair Warren

Agenda Item 11 Report by the Texas Real Estate Broker-Lawyer Committee
Report given by General Counsel Burgess

Agenda Item 12 Report by the Unauthorized Practice of Law Working Group
Report given by General Counsel Burgess

Agenda Item 13 Report by the Working Group on Brokerage Services
Report given by Chair Kesner

Agenda Item 14 Report by the Executive Committee
Report given by Chair Kesner

Agenda Item 15 Report by the Budget Committee
Report given by Commissioner Peña

The Commission took a break at 10:17 a.m.

Chair Kesner reconvened the meeting at 10:33 a.m.

Agenda Item 16 Director reports regarding agency operations, initiatives, and division updates
Reports given by the following:
Chelsea Buchholtz, Executive Director
Robert Hood, Director of Customer Relations Division
Jennifer Wheeler, Director of Education & Examinations Division
Denise Sample, Director of Licensing Division
Mike Molloy, Director of Enforcement Division
Tom Watson, Director of Information Technology
Ranada Williams, Chief Financial Officer
Sierra Pizarro, Communications Specialist

Agenda Item 17 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.
Comments:
Melissa Smith, Realm Real Estate Professionals
Ed Wolff, Beth Wolff Realtors
Commenter No. 3: name unintelliglble 

Agenda Item 18 Consideration and possible action regarding proposal for decision in the matter of
a. SOAH Docket No. 329-23-0350.REC; TREC v. Tyrik D. Adams
b. SOAH Docket No. 329-23-01716.REC; TREC v. Cortney Burns
ACTION on 18.a.: Commissioner Brown, seconded by Commissioner Woodroof, moved to adopt the PFD as written to deny the application for a real estate sales agent license.  The motion was adopted by unanimous vote.
ACTION on 18.b.: Commissioner Lerner, seconded by Commissioner Harvey Lowe, moved to adopt the PFD as written except to to assess a $3,000 administrative penalty and to probate the suspension of Ms. Burns' sales agent license for five years.  The motion was adopted by unanimous vote.

Agenda Item 19 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 11:59 a.m.
Chair Kesner reconvened the meeting at 1:07 p.m.

Agenda Item 20 Discussion and possible action to authorize settlement of recovery fund claims or take other action on
a. RF 22006; Blanca Escobar v. Dominic Jovan Huerta and NB Elite Realty, LLC
b. RF 23002; James Alan Augspurger v. David M. Kearney, Northstar Realty Group, LLC, David Kearney Broker Empire Realty
ACTION on 20.a. Commissioner Harvey Lowe, seconded by Commissioner Lerner, that the Commission authorize a settlement paymentof $23,289 in actual damages, plus $339 in court costs, $14,134 in attorney’s fees, and 5% pre and post-judgment interest. The motion was adopted by unanimous vote.
ACTION on 20.b. Commissioner Peña, seconded by Commissioner Russell, moved to table this item.  The motion was adopted by unanimous vote.

Agenda Item 21 Report regarding denial of recovery fund claim RF 22008; Marla Nunally Kaufman Homes, LLC, v. Round Up Realty, LLC and Stephani Hardy
Report given by General Counsel Burgess

Agenda Item 22 Discussion and possible action to adopt amendments to 22 TAC Chapter 537 as follows:
a. §537.1, Definitions (NEW)
b. §537.11, Use of Standard Contract Forms
ACTION: Commissioner Woodroof, seconded by Commissioner Hartgraves, moved to authorize staff to submit for adoption, amendments to 22 TAC §537.1, as published, and §537.11, 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 23 Discussion and possible action to adopt amendments to 22 TAC Chapter 535 as follows:
a. §535.2, Broker Responsibility
b. §535.157, Obligation to Respond Timely (NEW)
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to authorize staff to submit for adoption, amendments to 22 TAC §535.2 and new §535.157, 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 Chapter 535 as follows:
a. §535.54, Hearing on License Denial: Probationary Licenses
b. §535.55, Education and Sponsorship Requirements for a Sales Agent License
c. §535.56, Education and Experience Requirements for a Broker License
d. §535.91, Renewal of a Real Estate License
e. §535.93, Late Renewal Applications (REPEAL)
f. §535.101, Fees
g. §535.132, Eligibility for Licensure
h. §535.216, Renewal of License
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to authorize staff to submit for adoption, amendments to 22 TAC Chapter 535, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote. The amendments will be effective October 1, 2023.

Agenda Item 25 Discussion and possible action to adopt amendments to 22 TAC §535.222, Inspection Reports
ACTION: Commissioner Russell, seconded by Commissioner Peña, moved to authorize staff to submit for adoption, amendments to 22 TAC §535.222, 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 26 Discussion and possible action to adopt amendments to 22 TAC Chapter 535 as follows:
a. §535.1, Definitions
b. §535.3, Compensation to or Paid by a Salesperson
c. §535.4, License Required
d. §535.5, License Not Required
e. §535.20, Referrals from Unlicensed Persons
f. §535.31, Attorneys at Law
g. §535.33, Public Officials
h. §535.34, Salespersons Employed by an Owner of Land and Structures Erected by the Owner
i. §535.43, Education Standards Advisory Committee
j. §535.45, Certain Uses of Seal, Logo, or Name Prohibited
k. §535.50, Definitions
l. §535.51, General Requirements for a Real Estate License
m. §535.52, Fitness Requirements for Individual Applicant
n. §535.53, Business Entity; Designated Broker
o. §535.57, Examinations
p. §535.58, License for Military Service Members, Veterans, or Military Spouses
q. §535.60, Definitions
r. §535.61, Approval of Providers of Qualifying Courses
s. §535.63, Qualifications for Instructors of Qualifying Courses
t. §535.64, Content Requirements for Qualifying Real Estate Courses
u. §535.65, Responsibilities and Operations of Providers for Qualifying Courses
v. §535.66, Credit for Courses Offered by Accredited Colleges or Universities
w. §535.67, Qualifying Education: Compliance and Enforcement
x. §535.71, Approval of CE Providers
y. §535.72, Approval of Non-elective Continuing Education Courses
z. §535.74, Qualifications for Continuing Education Instructors
aa. §535.75, Responsibilities and Operations of Continuing Education Providers
bb. §535.82, Proration of Payments from the Recovery Trust Account
cc. §535.120, Prohibited Activity While on Inactive License Status (NEW)
dd. §535.121, Inactive Salesperson License
ee. §535.122, Reactivation of Salesperson License
ff. §535.133, Consent To Be Sued, Exceptions to Requirements
gg. §535.141, Initiation of Investigation; Order Requirements
hh. §535.147, Splitting Fee with Unlicensed Person
ii. §535.148, Receiving an Undisclosed Commission or Rebate
jj. §535.208, Application for a License
kk. §535.209, Examinations
ll. §535.210, Fees
mm. §535.212, Education and Experience Requirements for a License (Repeal)
nn. §535.213, Qualifying Real Estate Inspector Instructors and Courses
oo. §535.214, Education and Experience Requirements for a License
pp. §535.218, Continuing Education Required for Renewal
qq. §535.219, Schedule of Administrative Penalties
rr. §535.220, Professional Conduct and Ethics
ss. §535.224 Practice and Procedure
tt. §535.400, Registration of Easement or Right-of-Way Agents
uu. §535.401, Required Notices
vv. §535.402, Complaints, Disciplinary Action and Appeals
ww. §535.403, Renewal of Registration
xx. §535.404, Fees
yy. §535.405, Employee of Owner or Purchaser
ACTION: Commissioner Peña, seconded by Commissioner Russell, moved to authorize staff to submit for adoption, amendments to 22 TAC Chapter 535, 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  27 Discussion and possible action to propose amendments to 22 TAC §535.92, Continuing Education Requirements
ACTION: Commissioner Brown, seconded by Commissioner Peña, moved to authorize staff to submit the proposed amendments to 22 TAC §535.92, 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 28 Discussion and possible action to propose 22 TAC §535.46, Broker Responsibility Advisory Committee (NEW)
ACTION: Commissioner Woodroof, seconded by Commissioner Russell, moved to authorize staff to submit the proposed new 22 TAC §535.46, 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 29 Update regarding 88th Legislative Session
Update given by Deputy Executive Director Slagle

Agenda Item 30 Discussion regarding FY2024 draft budget, FY2024 Investment Policy, and FY2024 Budget and Financial Administration Policy
Presented by Chief Financial Officer Williams

Agenda Item 31 Report on Market Trends by Texas A&M University Real Estate Center
Presentation given by Gary Maler, Executive Director, Texas Real Esate Research Center

Agenda Item 32 Discussion and possible action regarding Inspector Legal & Ethics and Standards of Practice Review course
ACTION: Commissioner Woodroof, seconded by Commissioner Hartgraves, moved to approve the Inspector Legal & Ethics and Standards of Practice Review course, as presented, along with any technical or non-substantive changes required for publication. The motion was adopted by uanimous vote.

Agenda Item 33 Discussion and possible action regarding future agenda items
No items were requested.

Agenda Item 34 Discussion and possible action to schedule future meetings
Future meeting dates:
August 7, 2023, Meeting, Austin
August 8, 2023, Workshop, Austin
November 6, 2023, Meeting, Austin
November 7, 2023, Workshop, Austin

Agenda Item 35 Adjourn
ACTION: The meeting adjourned at 2:02 p.m.