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 Miller, seconded by Commissioner Woodroof, 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

Agenda Item 4 Appointments to the Education Standards Advisory Committee
ACTION: Commissioner Wilkinson, seconded by Commissioner Russell, moved to recommend the following committee members for a term ending December 31, 2024: 
Kara Bang, License Holder Member;
Kandi Luensmann, License Holder Member;
Ruben Pena, License Holder Member;
Bill Steddum, License Holder Member;
Mike Crowley, Education Member; and
Kelea Youngblood, Education member.
Thomas Carl Leatherman was recommended as a license holder member alternate and Cynthia Baas was recommended as the education member alternate should a vacancy occur. The motion was adopted by unanimous vote.

Agenda Item 5 Appointment(s) to The Texas Real Estate Inspector Committee
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to recommend Brian Carroll fill the public member opening with a term ending December 31, 2024. Roland Castillo was recommended as the public member alternate should a vacancy occur.  The motion was adopted by unanimous vote.

Agenda Item 6 Report by the Texas Real Estate Broker-Lawyer Committee
Report given by General Counsel Burgess along with presentation of Agenda Item 19

Agenda Item 7 Report by the Education Standards Advisory Committee 
Report given by Charles Porter, Chair of the committee

Agenda Item 8 Report by the Broker Responsibility Working Group 
Report given by Chance Brown, Chair of the committee

Agenda Item 9 Report by The Texas Real Estate Inspector Committee
Report given by General Counsel Burgess

Agenda Item 10 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
Mike Sample-Diehl, Program Supervisor, Education & Examinations Division
Denise Sample, Director of Licensing Division
Mike Molloy, Director of Enforcement Division
Steve Rapp, Director of Information Technology
Ranada Williams, Chief Financial Officer
Summer Mandell, Director of Government and Strategic Communications

Agenda Item 11 Report by the Executive Committee 
Report given by Chair Kesner

Agenda Item 12 Report by the Audit Committee
Report given by Commissioner Peña, Chair of the committee

Agenda Item 13 Report by the Enforcement Committee
Report given by Commissioner Miller, Chair of the committee

Agenda Item 14 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 comments were received.

The Commission took a break at 11:25 a.m.
Chair Kesner reconvened the meeting at 11:38 a.m.

Agenda Item 15 Consideration and possible action regarding proposal for decision in the matter of 
a. SOAH Docket No. 329-22-2172.REC; Chandra Nunn v. TREC
b. SOAH Docket No. 329-22-0334.REC; TREC v. Demetria Ann Rutherford
c. SOAH Docket No. 329-22-2183.REC; TREC v. Leonel Amaya
d. SOAH Docket Nos. 329-20-3070.REC, 329-20-3071.REC, and 329-20-3072.REC; TREC v. Landon Burke, Ebby Halliday Real Estate, Inc., and Betty Misko
ACTION on 15.a.: Commissioner Russell, seconded by Commissioner Woodroof, moved to adopt the PFD as written to deny the application for inactive real estate sales agent application filed by Chandra Nunn. The motion was adopted by unanimous vote.

ACTION on 15.b: Commissioner Lerner, seconded by Commissioner Miller, moved to adopt the PFD as written to assess an administrative penalty of $48,750 and to revoke the real estate sales agent license of Demetria Ann Rutherford. The motion was adopted by unanimous vote.

ACTION on 15.c.: Commissioner Peña, seconded by Commissioner Miller, moved to adopt the PFD as written to deny the application for inactive real estate sales agent license filed by Leonel Amaya. The motion was adopted by unanimous vote.

ACTION on 15.d.: Commissioner Peña, seconded by Commissioner Hartgraves, moved to adopt the PFD as written.  The motion failed 3Y|5N.  Commissioner Miller, seconded by Commissioner Russell, moved to modify the PFD as written to reprimand all respondents and that Landon Burke be assessed an administrative penalty of $3,250, Ebby Halliday Real Estate Inc., be assessed an administrative penalty of 2,500, and Betty Misko be assessed an administrative penalty of $1,750. Further, that the findings of fact and conclusions of law be modified as follows: The Commission strikes finding of fact number 28 as listed in the Proposal for Decision and replaces it with the following:28. Respondent Burke acted negligently by not forwarding the email he received from Cornerstone to the Buyer.The Commission strikes finding of fact numbers 29 and 30 as listed in the Proposal for Decision and replaces it with the following:29. In not requiring Respondent Burke to check his email during business hours and immediately prior to a closing, Respondents Halliday and Misko failed to properly supervise Respondent Burke in his duty to the Buyer. 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, and therefore violated 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 Texas Administrative Code §535.2(a).The Commission strikes conclusion of law number 10 as listed in the Proposal for Decision 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. The revised sanctions are reasonable and fall within the Commission’s schedule of administrative penalties, found in §535.191. Additionally, the ALJ’s recommendation was not consistent with other sanctions imposed in cases with similar facts and was too lenient to be effective. The motion was adopted 5Y|3N.

Agenda Item 16 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 12:28 p.m.
Chair Kesner reconvened the meeting at 1:58 p.m.

Agenda Item 17 Discussion and possible action to authorize settlement of recovery fund claims or take other action on TREC No. RF 22004; Juan O. Linares v. Amber Pearson, James Wallace Like, Jr., and Revolution Real Estate Services, Inc.
ACTION: Commissioner Woodroof, seconded by Commissioner Wilkinson, moved to authorize a settlement payment of $50,000, the maximum allowable under the law. The motion was adopted by unanimous vote.

Agenda Item 18 Report regarding denial of recovery fund claim TREC No. RF 23001; Yolanda I. Garza, Glafiro Garza, and Arcelia Alanis Garcia v. Agustin J. Garcia d/b/a AJ Is Real Estate
Report given by Deputy General Counsel Lee

Agenda Item 19 Discussion and possible action to adopt amendments to 22 TAC Chapter 537 as follows: 
a. §537.20, Standard Contract Form TREC No. 9-15 (Unimproved Property Contract)
b. §537.28, Standard Contract Form TREC No. 20-16 (One to Four Family Residential Contract (Resale))
c. §537.30, Standard Contract Form TREC No. 23-17 (New Home Contract (Incomplete Construction))
d. §537.31, Standard Contract Form TREC No. 24-17 (New Home Contract (Completed Construction))
e. §537.32, Standard Contract Form TREC No. 25-14 (Farm and Ranch Contract)
f. §537.33, Standard Contract Form TREC No. 26-7 (Seller Financing Addendum)
g. §537.37, Standard Contract Form TREC No. 30-15 (Residential Condominium Contract (Resale))
h. §537.43, Standard Contract Form TREC No. 36-9 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association)
i. §537.46, Standard Contract Form TREC No. 39-8 (Amendment to Contract)
j. §537.47, Standard Contract Form TREC No. 40-9 (Third Party Financing Addendum)
k. §537.48, Standard Contract Form TREC No. 41-2 (Loan Assumption Addendum)
l. §537.51, Standard Contract Form TREC No. 44-2 (Addendum for Reservation of Oil, Gas and Other Minerals)
m. §537.58, Standard Contract Form TREC No. 51-0 (Addendum Regarding Residential Leases)
n. §537.59, Standard Contract Form TREC No. 52-0 (Addendum Regarding Fixture Leases)
o. §537.65, Standard Contract Form TREC No. 57-0, Notice to Prospective Buyer (NEW)
ACTION: Commissioner Wilkinson, seconded by Commissioner Woodroof, moved to re-propose the amendments and new rules to 22 TAC Chapter 537, and the forms adopted by reference, as presented, to allow the Broker-Lawyer Committee to further consider public comment and concerns about the form changes. I further move to authorize staff, on behalf of the Commission, to submit the re-proposed amendments and new rules to 22 TAC Chapter 537, 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 failed 1 Y|7 N

Commissioner Woodroof, seconded by Commissioner Russell, moved to authorize staff, on behalf of the Commission, to submit for adoption, the amendments and new rule in 22 TAC Chapter 537, as presented, along with the forms adopted by reference, to the Texas Register, along with any technical or non-substantive changes required for adoption. 

The Notice to Prospective Buyer form (TREC No. 57-0) is a voluntary use form and may be used once posted on the agency’s website. All remaining contract forms adopted by reference are available for voluntary use until February 1, 2023, when their use becomes mandatory. The motion was adopted by unanimous vote.

Agenda Item 20 Discussion and possible action to propose amendments to 22 TAC §535.223, Standard Inspection Report Form
ACTION: Commissioner Miller, seconded by Commissioner Woodroof, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments 22 TAC §535.223, 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 Chapter 537 as follows:
a. §537.1, Definitions (NEW)
b. §537.11, Use of Standard Contract Forms
ACTION: Commissioner Miller, seconded by Commissioner Hartgraves, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments and new rule to 22 TAC Chapter 537, 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 and possible action to conclude the review of 22 TAC Chapter 535 
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to close the review of 22 TAC Chapter 535, as presented.  The motion was adopted by unanimous vote.

Agenda Item 23 Presentation of FY2022 Internal Audit Report and FY 2023 Internal Audit Plan
Presentation given by Liz Meyers, McConnell Jones

Agenda Item 24 Discussion and possible action to nominate candidates for the offices of Vice Chair and Secretary of the Commission 
Commissioner Wilkinson expressed her desire to see Commissioners Woodroof and Peña on the Executive Committee in the future.

Agenda Item 25 Discussion and possible action regarding topics for February workshop
No items were requested.

Agenda Item 26 Discussion and possible action to approve new Inspector Termination Form (NEW)
ACTION: Commissioner Woodroof, seconded by Commissioner Lerner, moved to approve the new Inspector Termination Form.  The motion was adopted by unanimous vote.

Agenda Item 27 Discussion and possible action regarding future agenda items 
No items were requested.

Agenda Item 28 Discussion and possible action to schedule future meetings
Future meeting dates:
Monday, February 13, 2023 Meeting
Tuesday, February 14, 2023 Workshop
ACTION: The next meeting is scheduled for February 13, 2023, and the next workshop is scheduled for February 14, 2023

Agenda Item 29 Adjourn
ACTION: The meeting adjourned at 3:09 p.m.