Agenda Item 1 Call to order and pledges of allegiance

ACTION: Chair Wukasch called the meeting to order at 10:07 a.m.

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

ACTION: Chair Wukasch reported that Commissioner Turner would be running late.

Agenda Item 3 Appointments to the Broker Lawyer Committee

ACTION: Upon motion of Commissioner Hensley, duly seconded by Commissioner Jones, the Commission, by unanimous vote, appointed Lori Keebaugh and Terri Macaluso to the Broker Lawyer Committee.

Agenda Item 4 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 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

Steve Spyropoulos, Director of Information & Technology Services

Melissa Huerta, Director of Staff & Support Services

Agenda Item 5 Report by Executive Committee

ACTION: Report given by Chair Wukasch

Agenda Item 6 Report by Budget Committee

ACTION: Report given by Commissioner Martinez

Agenda Item 7 Report by Education Standards Advisory Committee

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

Agenda Item 8 Report by Broker Working Group

ACTION: Report given by Kerri Lewis for Mary Lynne Gibbs, Chair of the committee

Agenda Item 9 Report by Texas Real Estate Inspector Committee

ACTION: Report given by Steven Rinehart, Chair of the committee

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

NOTE: No comments.

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

ACTION: The Commission went into executive session at 11:40 a.m.

ACTION: The meeting resumed at 1:07 p.m.

NOTE: Commissioner Turner arrived at 12:30 p.m. (during executive session).

Agenda Item 12 Consideration and possible action regarding proposal for decision in the matter of
a. Docket No. 329-14-4533.REC; Texas Real Estate Commission v. Gregory Wayne Comer

NOTE: Commissioner Hensley returned from executive session at 1:15 p.m.

ACTION: The Commission unanimously adopted the PDF as written to revoke the broker license of Gregory Wayne Comer and assess an administrative penalty of $24,500.

Agenda Item 13 Consideration and possible action on Motion for Rehearing in
a. Docket No. 329-14-4669.REC; Texas Real Estate Commission v. Owners Advantage, LLC

NOTE: Commissioner Martinez was not present for Agenda Item 13.
ACTION: The Commission unanimously denied the motion for rehearing.

Agenda Item 14 Discussion and possible action to authorize settlement of recovery fund claims or take other action on:
a. RF 15001; Ace Walker and Lance Walker v. Poco Mas Ltd., et al.

b. RF 15013; Shawn Camplen v. Shezad Tony Akbar, et al.

c. RF 15017; Carl Curtice v. Gilbert and Susan Quinones

d. RF 15018; Michelle Leopando v. Melissa Elizondo, et al.

e. RF 15022; Eric Petersen v. Melissa Elizondo

f. RF 15019; Scottie Taylor and Ladonna and Phillip Terry v. Donald Kerst and Gerald Haire

g. RF 15020; Cross Plaintiffs Kerst v. Gerald Haire

h. RF 15021; Ramirez v. Colindres and Team Lupe, LLC

i. RF 15023; Michael French and Absolute Truck Wash, LLC v. Bill Kalil

NOTE: Commissioner Martinez was not present for Agenda Item 14.

NOTE: Commissioner Arriaga recused himself from Agenda Item 14.a.

NOTE: Commissioner Jones recused himself from Agenda Items 14.c. and 14.h.

ACTION: Upon motion of Commissioner Justice, duly seconded by Commissioner Jones, the Commission, by unanimous vote, authorized payment of $50,000.00 in RF 15001; Ace Walker and Lance Walker v. Poco Mas Ltd., et al.

ACTION: Upon motion of Commissioner Hensley, duly seconded by Commissioner Justice, the Commission, by unanimous vote, authorized staff to settle on best possible terms in RF 15013; Shawn Camplen v. Shezad Tony Akbar, et al.

ACTION: Upon motion of Commissioner Hensley, duly seconded by Commissioner Arriaga, the Commission, by unanimous vote, authorized payment of $7,294.60, attorney's fees of $6,500.00, plus interest and court costs in RF 15017; Carl Curtice v. Gilbert and Susan Quinones.

ACTION: Upon motion of Commissioner Arriaga, duly seconded by Commissioner Hensley, the Commission, by unanimous vote, authorized payment of $13,079.00, plus interest, court costs and reasonable attorney's fees in RF 15018; Michelle Leopando v. Melissa Elizondo, et al.

ACTION: Upon motion of Commissioner Arriaga, duly seconded by Commissioner Alley, the Commission, by unanimous vote, authorized payment of $10,625.00, attorney's fees of $7,450.00, plus interest and court costs and in RF 15022; Eric Petersen v. Melissa Elizondo.

ACTION: Upon motion of Commissioner Westcott, duly seconded by Commissioner Alley, the Commission, by unanimous vote, authorized payment of $100,000.00 prorated between parties according to TREC rules as determined by General Counsel in RF 15019; Scottie Taylor and Ladonna and Phillip Terry v. Donald Kerst and Gerald Haire and RF 15020; Cross Plaintiffs Kerst v. Gerald Haire

ACTION: Upon motion of Commissioner Alley, duly seconded by Commissioner Justice, the Commission, by unanimous vote, authorized payment of $39,537.00, plus reasonable attorney's fees, interest and court costs and in RF 15021; Ramirez v. Colindres and Team Lupe, LLC

ACTION: Upon motion of Commissioner Jones, duly seconded by Commissioner Justice, the Commission, by unanimous vote, authorized payment of the prorated portion of the of the funds remaining in the trust account for Mr. Kalil to be prorated between any other claims pursuant to TREC rules in RF 15023; Michael French and Absolute Truck Wash, LLC v. Bill Kalil

Agenda Item 15 Discussion and possible action to adopt amendments to §539.81, Funded Reserve

ACTION: Commissioner Hensley, duly seconded by Commissioner Alley, moved that staff is authorized, on behalf of this Commission, to submit for adoption amendments to §593.81, Funded Reserves, as previously published in the Texas Register, with the change presented, along with any other 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 §535.217, Mailing Address and Other Contact Information

ACTION: Commissioner Justice, duly seconded by Commissioner Arriaga, moved that staff is authorized, on behalf of this Commission, to submit for adoption amendments to §535.217, Mailing Address and Other Contact Information, as previously published in the Texas Register, along with any technical or non-substantive changes required for adoption. The motion was adopted by unanimous vote.

Agenda Item 17 Discussion and possible action to adopt amendments to 22 TAC Chapter 535, Subchapter T as follows: a. §535.400, Registration of Easement or Right-of-Way Agents b. §535.402, Complaints, Disciplinary Action and Appeals

ACTION: Commissioner Jones, duly seconded by Commissioner Justice, moved that staff is authorized, on behalf of this Commission, to submit for adoption amendments to named sections of 22 TAC Chapter 535, Subchapter T, as previously published in 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 §539.150, Complaints

ACTION: Commissioner Arriaga, duly seconded by Commissioner Jones, moved that staff is authorized, on behalf of this Commission, to submit for adoption amendments to §539.150, Complaints, as previously published in 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 emergency amendments to sections of 22 TAC Chapter 533, Practice and Procedure as follows: a. §533.3, Filing and Notice b. §533.7, Final Decisions and Orders c. §533.8, Motions for Rehearing; Finality of Decisions

ACTION: Commissioner Wescott, duly seconded by Commissioner Arriaga, moved that staff is authorized, on behalf of this Commission, to submit for adoption on an emergency basis, amendments to sections of 22 TAC Chapter 533, Practice and Procedure, 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 20 Discussion and possible action to adopt emergency amendments to sections of 22 TAC Chapter 535, General Provisions, as follows: a. §535.51, General Requirements for a Real Estate License b. §535.92, Continuing Education Requirements c. §535.208, Application for License d. §535.216, Renewal of License

ACTION: Commissioner Alley, duly seconded by Commissioner Turner, moved that staff is authorized, on behalf of this Commission, to submit for adoption on an emergency basis, amendments to sections of 22 TAC Chapter 535, General Provisions, 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 21 Discussion and possible action to adopt emergency amendments to sections of 22 TAC Chapter 537, Professional Agreements and Standard Contracts, as follows: a. §537.20, Standard Contract Form TREC No. 9-11 (Unimproved Property Contract) b. §537.28, Standard Contract Form TREC No. 20-12 (One to Four Family Residential Contract (Resale)) c. §537.30, Standard Contract Form TREC No. 23-13 (New Home Contract (Incomplete Construction)) d. §537.31, Standard Contract Form TREC No. 24-13 (New Home Contract (Complete Construction)) e. §537.32, Standard Contract Form TREC No. 25-10 (Farm and Ranch Contract) f. §537.33, Standard Contract Form TREC No. 26-6 (Seller Financing Addendum) g. §537.37, Standard Contract Form TREC No. 30-11 (Residential Condominium Contract (Resale)) h. §537.39, Standard Contract Form TREC No. 32-3 (Condominium Resale Certificate) i. §537.45, Standard Contract Form TREC No. 38-4 (Notice of Buyer’s Termination of Contract) j. §537.46, Standard Contract Form TREC No. 39-7 (Amendment to Contract) k. §537.47, Standard Contract Form TREC No. 40-6 (Third Party Financing Addendum for Credit Approval)

ACTION: Commissioner Justice, duly seconded by Commissioner Arriaga, moved that staff is authorized, on behalf of this Commission, to submit for adoption on an emergency basis, §537.39, Standard Contract Form TREC No. 32-3 (Condominium Resale Certificate) and the form adopted by reference, as presented, to the Texas Register, along with any technical or non-substantive changes required for adoption, to be effective September 1, 2015 and that staff is authorized to post information about and the specific language for the new statutory Notice of Water Level Fluctuation that goes into effect September 1, 2105 on the Commission’s website for use by license holders in the Special Provisions paragraph when the Notice is required to be given for a property. The motion was adopted by unanimous vote.

Agenda Item 22 Discussion and possible action to propose amendments to 22 TAC Chapter 537, Professional Agreements and Standard Contracts as follows: a. §537.20, Standard Contract Form TREC No. 9-11 (Unimproved Property Contract) b. §537.28, Standard Contract Form TREC No. 20-12 (One to Four Family Residential Contract (Resale)) c.§537.30, Standard Contract Form TREC No. 23-13 (New Home Contract (Incomplete Construction)) d. §537.31, Standard Contract Form TREC No. 24-13 (New Home Contract (Complete Construction)) e. §537.32, Standard Contract Form TREC No. 25-10 (Farm and Ranch Contract) f. §537.33, Standard Contract Form TREC No. 26-6 (Seller Financing Addendum) g. §537.37, Standard Contract Form TREC No. 30-11 (Residential Condominium Contract (Resale)) h. §537.39, Standard Contract Form TREC No. 32-3 (Condominium Resale Certificate) i. §537.45, Standard Contract Form TREC No. 38-4 (Notice of Buyer’s Termination of Contract) j. §537.46, Standard Contract Form TREC No. 39-7 (Amendment to Contract) k. §537.47, Standard Contract Form TREC No. 40-6 (Third Party Financing Addendum for Credit Approval)

ACTION: Commissioner Turner, duly seconded by Commissioner Arriaga, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to sections of 22 TAC Chapter 537, Professional Agreements and Standard Contracts, 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 by unanimous vote.

Agenda Item 23 Discussion and possible action to propose amendments to sections of 22 TAC Chapter 531, Cannons of Professional Ethics and Conduct, as follows: a. §531.18, Consumer Information b. new §531.20, Information About Brokerage Services

ACTION: Commissioner Jones, duly seconded by Commissioner Alley, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to sections of 22 TAC Chapter 531, Cannons of Professional Ethics and Conduct, 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 by unanimous vote.

Agenda Item 24 Discussion and possible action to propose amendments to sections of 22 TAC Chapter 533, Practice and Procedure, as follows: a. Subchapter A, Definitions-§533.1, Definitions b. Subchapter B, General Provisions Relating to Practice and Procedure -§533.3, Filing and Notice -§533.7, Final Decisions and Orders -§533.8, Motions for Rehearing; Finality of Decisions -new §533.10, Hearing: Subpoenas and Fees

ACTION: Commissioner Arriaga, duly seconded by Commissioner Jones, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to sections of 22 TAC Chapter 533, Practice and Procedure, 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 25 Discussion and possible action to propose amendments to 22 TAC Chapter 534, General Administration-§534.2, Processing Fees for Dishonored Payments

ACTION: Commissioner Wescott, duly seconded by Commissioner Jones, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to §534.2, Processing Fees for Dishonored Payments, 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 26 Discussion and possible action to propose amendments to sections of 22 TAC Chapter 535, General Provisions, as follows: a. Subchapter A, Definitions -§535.1, Definitions b. Subchapter B, General Provisions Relating to the Requirements of Licensure -§535.21, Mailing Address and Other Contact Information c. Subchapter C, Exemptions to Requirements of Licensure -§535.32, Attorneys in Fact d. Subchapter E, Requirements for Licensure -§535.51, General Requirements for a Real Estate License -§535.53, Business Entity; Designated Broker -§535.56, Education and Experience Requirements for a Broker License -§535.57, Examinations e. Subchapter F, Requirements for Education Providers, Courses, and Instructors for Qualifying Education -535.60, Definitions -535.61, Approval of Providers of Qualifying Courses -535.62, Approval of Qualifying Courses -535.63, Approval of Instructors of Qualifying and Non-Elective CE Courses -535.64, Content Requirements for Qualifying Real Estate Courses -535.65, Responsibilities and Operations of Providers of Qualifying Courses -535.66, Credit for Courses Offered by Accredited Colleges or Universities f. Subchapter G, Requirements for Continuing Education Providers, Courses, and Instructors -535.70, Definitions -535.71, Approval of CE Providers -535.72, Approval of Non-elective Continuing Education Courses -535.73, Approval of Elective Continuing Education Courses -535.74, Approval of Continuing Education Instructors for Elective Courses -535.75, Responsibilities and Operations of Continuing Education Providers g. Subchapter I, License Renewal -§535.92, Continuing Education Requirements h. Subchapter J, Fees -§535.101, Fees i. Subchapter N, Suspension and Revocation of Licensure -§535.144, When Acquiring or Disposing of Own Property or Property of Spouse, Parent or Child -§535.146, Maintaining Trust Money -§535.148, Receiving an Undisclosed Commission -§535.161, Failing to Provide Information j. Subchapter O, Hearing on Suspension or Revocation of Licensure – repeal k. Subchapter P, Penalty for Unlicensed Activity l. Subchapter Q, Administrative Penalties -§535.191, Schedule of Administrative Penalties m. Subchapter R, Real Estate Inspectors, Examinations n. Subchapter T, Easement or Right-of-Way Agents -§535.401, Required Notices

ACTION: Commissioner Hensley, duly seconded by Commissioner Arriaga, moved that staff is authorized, on behalf of this Commission, to submit the proposed amendments to sections of 22 TAC Chapter 535, General Provisions, and the forms adopted by reference, as presented by staff, along with any technical or non-substantive changes required for proposal, to the Texas Register, for publication and public comment, with one change: to increase the number of continuing education hours required by the proposed 535.92 from 17 to 18 hours. The motion was adopted by unanimous vote.

COMMENTS: Rita Santamaria, Champions School of Real Estate

COMMENTS: Stan Harbuck, School of Better Building Inspection

COMMENTS: Lynn Morgan, Austin Institute of Real Estate

Agenda Item 27 Discussion and possible action to adopt TREC FY 2016 annual budget and budget-related policies

ACTION: Upon motion of Commissioner Martinez, duly seconded by Commissioner Jones moved to approve the TREC budget FY2016 as discussed along with the expenditures and policies presented. Commissioner Arriaga, duly seconded by Commissioner Hensley, amended the motion with the understanding that expenditures for the Geotechnical study, survey and environmental study be approved by the Executive Committee. The amended motion was adopted by unanimous vote.

Agenda Item 28 Discussion and possible action to approve TREC Annual Internal Audit Report 2015

Report given by Richard Galindo, Garza/Gonzalez & Associates

ACTION: Upon motion of Commissioner Jones, duly seconded by Commissioner Alley, moved that the Commission accept the TREC Annual Internal Audit Report 2015. The motion was adopted by unanimous vote.

Agenda Item 29 Discussion and possible action regarding Comptroller Post Payment Audit report

Report presented by Melissa Huerta, Director of Staff Services.
ACTION: Upon motion of Commissioner Hensley, duly seconded by Commissioner Arriaga, moved that the Commission approve the Comptroller Post Payment Audit report as presented. The motion was adopted by unanimous vote.

Agenda Item 30 Discussion and possible action to approve MOU with Texas Appraiser Licensing and Certification Board

ACTION: Commissioner Turner, duly seconded by Commissioner Justice, moved that the Commission approve MOU with Texas Appraiser Licensing and Certification Board as presented. The motion was adopted by unanimous vote.

Agenda Item 31 Discussion and possible action to approve MOU with Texas A&M Real Estate Center

ACTION: Commissioner Jones, duly seconded by Commissioner Arriaga, moved that the Commission approve MOU with Texas A&M Real Estate Center in substance and authorize the chair to edit and execute the finally negotiated agreement after a meeting between the parties of the MOU. The motion was adopted by unanimous vote.

Agenda Item 32 Discussion and possible action to approve the Legal Update I and II required continuing education courses for 2016-17

ACTION: Commissioner Justice, duly seconded by Commissioner Arriaga, moved that the Commission approve the Legal Update I and II required continuing education courses for 2016-17 and give the chair the authority to approve updates asneeded. The motion was adopted by unanimous vote.

Agenda Item 33 Discussion and possible action regarding update to the Delineation policy for Policy-Making Functions and Management Functions

ACTION: Commissioner Hensley, duly seconded by Commissioner Justice, moved that the Commission approve the Legal Update I and II required continuing education courses for 2016-17. The motion was adopted by unanimous vote. that the Commission approve the revisions to the Delineation policy for Policy-Making Functions and Management Functions. The motion was adopted by unanimous vote.

Agenda Item 34 Discussion and possible action to repeal or approve new or changes to TREC forms: a. OP-N, Reverse Mortgage Financing Addendum (repeal); b. SFMS-2, Supplemental Form for Military Spouse; c. OP-H, Seller’s Disclosure; d. BBE-5, Application for Broker License By a Business Entity; e. BL-7, Application for Real Estate Broker License by an Individual; f. SBLR-6, Sales Agent and Broker License Reinstatement; g. RF-7, Renewal of Real Estate License – Timely or Expired Less than Six Months; h. CE CAS-0, CE Course Application Supplement; i. ED PAF-0, Education Provider Annual Fee Application; j. ISL-5, Application for Inactive Real Estate Sales Agent License; k. ALTNM-0, Notice of Alternate Name for Sales Agent or Broker License; and l. BSCN-2, Change of Name for License Holder

ACTION: Commissioner Hensley, duly seconded by Commissioner Arriaga, moved that the Commission approve new or changes to the TREC forms as presented with an effective date of September 1, 2015. The motion was adopted by unanimous vote.

Agenda Item 35 Discussion and possible action regarding future agenda items

No future agenda items were discussed.

Agenda Item 36 Discussion and possible action to schedule future meetings

ACTION: The next meeting is scheduled for November 2, 2015. The future meetings are tentatively scheduled for February 8, 2016.

Agenda Item 37 Adjourn

ACTION: The meeting was adjourned at 3:04 p.m.