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 

Agenda Item 3 Opening remarks and report from the Chair

Agenda Item 4 Recognition of departing Texas Real Estate Broker-Lawyer Committee members
ACTION: Chair Kesner thanked departing members Bo Blackburn, Greg Glenn, and Charlie Still

Agenda Item 5 Appointments to the Texas Real Estate Broker-Lawyer Committee
ACTION: Commissioner Peña, seconded by Commissioner Brown, moved to appoint Melissa Hailey and Christie Tatum Janszen for six-year terms beginning September 1, 2023, along with alternate members Tim Garrett and Jonathan Lindley. The motion was adopted by unanimous vote.  

Agenda Item 6 Appointments to the Texas Real Estate Inspector Committee
ACTION: Commissioner Woodroof, seconded by Commissioner Harvey Lowe, moved to appoint Rhondalyn Riley as an inspector member to replace Scott Regan effective immediately with a term that expires December 31, 2026; Randy Bayer and Stephenie Cochran as inspector members to serve six-year terms to begin January 1, 2024, along with alternate Michael Marlow.  In addition, Teresa Benavides and Yolanda Castro as public members to serve two-year terms beginning January 1, 2024, along with alternate Edward Muth.  The motion was adopted by unanimous vote.

Agenda Item 7 Appointment of a committee to review applicants to the Broker Responsibility Advisory Committee
ACTION: Chair Kesner appointed Commissioners Brown, Lerner, Peña, and himself to review applicants for BRAC.

Agenda Item 8 Appointment of a committee to review applicants to the Education Standards Advisory Committee
ACTION: Chair Kesner appointed Commissioners Russell, Harvey Lowe, and Hartgraves to review applicants for ESAC.

Agenda Item 9 Report by the Education Standards Advisory Committee 
Report given by Director Wheeler

Agenda Item 10 Report by the Broker Responsibility Working Group 
Report given by General Counsel Burgess

Agenda Item 11 Report by The Texas Real Estate Inspector Committee
Report given by Chair Warren

Agenda Item 12 Report by the Texas Real Estate Broker-Lawyer Committee
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 Woodroof

Agenda Item 16 Report by the Enforcement Committee
Report given by Commissioner Hartgraves

Agenda Item 17 Report by the TREC and TALCB Joint Audit Committee
Report given by Commissioner Peña

Agenda Item 18 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

Due to a fire drill, the Commission recessed at 10:46 a.m.
Chair Kesner reconvened the meeting at 10:56 a.m.

Jennifer Wheeler, Director of Education & Examinations Division
Mike Molloy, Director of Enforcement Division
Denise Sample, Director of Licensing Division
Tom Watson, Director of Information Technology
Ranada Williams, Chief Financial Officer
Summer Mandell, Director of Government and Strategic Communications

Agenda Item 19 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 given by Lisa Williams

Agenda Item 20 Consideration and possible action regarding proposal for decision in the matter of 
a. SOAH Docket No. 329-23-06423.REC; TREC v. Travis Brown
b. SOAH Docket No. 329-23-08196.REC; TREC v. Hayden Scott Catt
c. SOAH Docket No. 329-23-11880.REC; TREC v. Aaron Lee Alvarado
ACTION on 20a Commissioner Peña, seconded by Commissioner Harvey Lowe, moved to adopt the PFD as written to assess a $1,250 administrative penalty and to revoke the sales agent license of Travis Brown. The motion was adopted by unanimous vote.
ACTION on 20b Commissioner Brown, seconded by Commissioner Russell, moved to adopt the PFD as written to deny the Application for a Real Estate Sales Agent License of Hayden Scott Catt. The motion was adopted by unanimous vote.
ACTION on 20c Commissioner Lerner, seconded by Commissioner Peña, moved to adopt the PFD as written to assess a $1,500 administrative penalty and to revoke the sales agent license of Aaron Lee Alvarado. The motion was adopted by unanimous vote.

Agenda Item 21 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: 11:36 a.m.
Chair Kesner reconvened the meeting at 12:45 p.m.

Agenda Item 22 Discussion and possible action to authorize settlement of recovery fund claims or take other action on
a. RF 23002; James Alan Augspurger v. David M. Kearney, Northstar Realty Group, LLC, David Kearney Broker Empire Realty
b. RF 23004; Steve VonHofe v. James W. Maddox
ACTION on 22a Commissioner Peña, seconded by Commissioner Woodroof, moved to authorize a settlement payment of $100,000, the maximum allowable under law. The motion was adopted by unanimous vote.
ACTION on 22b Commissioner Woodroof, seconded by Commissioner Brown, moved to authorize a settlement payment of $33,989.19, plus 5.5% interest calculated on the amounts awarded in the judgment. The motion was adopted by unanimous vote.

Agenda Item 23 Report regarding denial of recovery fund claim RF 23003; Lisa Botik v. Aaron McDaniel, Mary McDaniel and Matthew Kinnee

Agenda Item 24 Discussion and possible action to adopt emergency amendments to 22 TAC §531.18, Consumer Information
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to authorize staff on behalf of the Commission submit for adoption on an emergency basis, amendments to 22 TAC §531.18, and the form adopted by reference, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption, with an effective date of September 1, 2023. The motion was adopted by unanimous vote.

Agenda Item 25 Discussion and possible action to adopt emergency amendments to 22 TAC §535.58, License for Military Service Members, Veterans, or Military Spouses
ACTION: Commissioner Russell, seconded by Commissioner Peña, moved to authorize staff, on behalf of the Commission, to submit for adoption on an emergency basis, amendments to 22 TAC §535.58, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption, with an effective date of September 1, 2023.The motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action to adopt emergency amendments to 22 TAC Chapter 535, Subchapter R, as follows:
a. §535.210, Fees
b. §535.219, Schedule of Administrative Penalties
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit for adoption on an emergency basis, amendments to 22 TAC, Subchapter R, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption, with an effective date of September 1, 2023. The motion was adopted by unanimous vote.

Agenda Item 27 Discussion and possible action to adopt emergency amendments to 22 TAC §537.62 Standard Contract Form TREC No. OP-H, Seller's Disclosure Notice
ACTION: Commissioner Woodroof, seconded by Commissioner Harvey Lowe, moved to authorize staff, on behalf of the Commission, to submit for adoption on an emergency basis, amendments to 22 TAC §537.62 and the form adopted by reference, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption, with an effective date of September 1, 2023. The motion was adopted by unanimous vote.

Agenda Item 28 Discussion and possible action to adopt amendments to 22 TAC §535.92, Continuing Education Requirements
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit for adoption, the amendments to 22 TAC §535.92, 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 to adopt amendments to 22 TAC §535.46, Broker Responsibility Advisory Committee (NEW)
ACTION: Commissioner Brown, seconded by Commissioner Lerner, moved to authorize staff, on behalf of the Commission, to submit for adoption, new 22 TAC §535.46, 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 30 Discussion and possible action to propose amendments to 22 TAC §531.18, Consumer Information
ACTION: Commissioner Lerner, seconded by Commissioner Peña, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §531.18 and the form 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 by unanimous vote.

Agenda Item 31 Discussion and possible action to propose amendments to 22 TAC Chapter 535, as follows:
a. §535.4, License Required
b. §535.5, License Not Required
c. §535.35, Registration of Certain Business Entities (NEW)
d. §535.147, Splitting Fee with Unlicensed Person
ACTION: Commissioner Lerner, seconded by Commissioner Peña, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments and new rule to 22 TAC Chapter 535, 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 32 Discussion and possible action to propose amendments to 22 TAC §535.6, Equitable Interests in Real Property
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.6, 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 propose amendments to 22 TAC §535.58, License for Military Service Members, Veterans, or Military Spouses
ACTION: Commissioner Lerner, seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.58, 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 propose amendments to 22 TAC §535.191, Schedule of Administrative Penalties
ACTION: Commissioner Lerner, seconded by Commissioner Brown, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.191, 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 propose amendments to 22 TAC Chapter 535, Subchapter R, as follows:
a. §535.210, Fees
b. §535.219, Schedule of Administrative Penalties
ACTION:  Commissioner Lerner, seconded by Commissioner Harvey Lowe, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments 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 36 Discussion and possible action to propose amendments to 22 TAC §537.62 Standard Contract Form TREC No. OP-H, Seller's Disclosure Notice
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §537.62 and the form 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 by unanimous vote.

Agenda Item 37 Discussion and possible action regarding FY2024 2nd draft budget, FY2024 Investment Policy, and FY2024 Budget and Financial Administration Policy
ACTION: Commissioner Peña, seconded by Commissioner Russell, moved to approve the FY2024 2nd draft budget, FY2024 Investment Policy, and FY2024 Budget and Financial Administration Policy as presented.  The motion was adopted by unanimous vote.

Agenda Item 38 Report regarding PFIA training compliance

Agenda Item 39 Discussion regarding FY2023 Internal Audits
Report given by Liz Meyers, McConnell Jones

Agenda Item 40 Discussion and possible action regarding TREC-TALCB MOU FY2024-25
ACTION: Commissioner Woodroof, seconded by Commissioner Peña, moved to approve the TREC-TALCB MOU as presented. The motion was adopted by unanimous vote.

Agenda Item 41 Discussion and possible action to approve the text of Legal Update I and II required continuing education courses for FY2024-25
ACTION: Commissioner Lerner, seconded by Commissioner Brown, moved to approve the text of Legal Update I and II required continuing education courses for FY2024-25, as presented, along with any technical or non-substantive changes required for publication. The motion was adopted by unanimous vote.

Agenda Item 42 Discussion and possible action regarding revisions to Commission’s Executive Director Delineation of Duties Policy
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to submit the Executive Director Delineation of Duties Policy to the Executive Committee for review.  The motion was adopted by unanimous vote.

Agenda Item 43 Discussion and possible action regarding topics for November workshop
ACTION: The Commission requested annual training, initiatives for the next Strategic Plan, Enforcement overview, and future meeting calendaring be added to the November Workshop.

Agenda Item 44 Discussion and possible action regarding future agenda items 
No items were requested.

Agenda Item 45 Discussion and possible action to schedule future meetings
Future meeting dates:
November 6, 2023, Meeting, Austin
November 7, 2023, Workshop, Austin
February 12, 2024, Meeting, Austin
February 13, 2024, Workshop, Austin
ACTION: The next meetings of the Commission are scheduled for November 6 and 7, 2023, and February 12 and 13, 2024.

Agenda Item 46 Adjourn 
ACTION: Commissioner Brown, seconded by Commissioner Peña, moved to adjourn the meeting. The motion was adopted by unanimous vote and the meeting adjourned at 1:45 p.m.