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 Leonard, duly seconded by Commissioner Turner moved to excuse the absences of Commissioners Hartgraves and Stephens. The motion was adopted by unanimous vote.
NOTE: Commissioner Stephens joined the meeting at 10:02 a.m.

Agenda Item 3 Opening remarks and report from the Chair

ACTION: Chair Kesner thanked visitors for their engagement and welcomed any future comments.  Chair Kesner also thanked staff for their efforts, made comments about the Annual ARELLO conference, and congratulated Sara Oates on her recent appointment as the Chair of TALCB.

Agenda Item 4 Appointments to Education Standards Advisory Committee

ACTION: Chair Kesner appointed new members Rick Albers as a public member and Candy Cooke as an educator member with terms set to expire in December 2021 to replace outgoing members Marcela Gómez Falcón and Felicia Peters.  Chair Kesner also reappointed broker members Rob Cook and Sarah Norman with terms set to expire in December 2021.

Agenda Item 5 Appoint a committee to review applicants for the Texas Real Estate Inspector Committee

ACTION: Chair Kesner appointed Lee Warren, Jeffrey Michael and himself to the applicant review committee.

Agenda Item 6 Reports by Executive Director, Deputy Executive Director, General Counsel, and Division Directors of monthly activities and statistical data for communications, licensing, education, enforcement, information technology, website analytics, 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, Executive Director
Tony Slagle, Deputy Executive Director
Robert Hood, Director of Reception and Communication Services
Jennifer Wheeler, Director of Education and Examination Services
Denise Sample, Director of Licensing and Registration Services
Mark Moore, Director of Standards and Enforcement Services
Beverly Rabenberg, Attorney, Standards and Enforcement Services
Steve Rapp, Information and Technology Services
Priscilla Pipho, Director of Staff and Support Services

Agenda Item 7 Report by Executive Committee
ACTION: Report given by Chair Kesner.

Agenda Item 8 Report by Budget Committee
ACTION: Report given by Commissioner Williams.

Agenda Item 9 Report by Enforcement Committee
ACTION: Report given by Commissioner Turner.

Agenda Item 10 Report by Broker-Lawyer Committee
ACTION: Report given by Chelsea Buchholtz on behalf of the committee.

Agenda Item 11 Report by Education Standards Advisory Committee
ACTION: Report given by Chelsea Buchholtz on behalf of the committee.

Agenda Item 12 Report by Texas Real Estate Inspector Committee
ACTION: Report given by Lee Warren, Chair of the committee.

Agenda Item 13 General comments from visitors on non‐agenda items
ACTION: Comments given by:

Henry Britt, Champions Real Estate

John Lewis

Craig Smyser, 1835 Realty

Agenda Item 14 Executive session to discuss pending litigation or obtain advice of legal counsel on agenda items pursuant to Texas Government Code §551.071 and personnel matters pursuant to Texas Government Code §551.074
ACTION: The Commission went into executive session at 12:10 p.m.
Chair Kesner reconvened the meeting at 1:42 p.m.

Agenda Item 15 Consideration and possible action regarding proposal for decision in the matter of
a.    SOAH Docket No. 329-19-1295.REC; TREC v. Rogelio D. Castro
b.    SOAH Docket No. 329-18-5257.REC; TREC V. Amy Chen
c.    SOAH Docket No. 329-19-1490.REC; TREC v. Arnulfo Celis, III
ACTION on 15.a.: Commissioner Leonard, duly seconded by Chair Kesner, moved to adopt the PFD as modified by the ALJ in Finding of Fact 18a to revoke the sales agent license of Rogelio D. Castro and assess an administrative penalty of $1,500.00.  The motion was adopted with Commissioner Turner voting no.
ACTION on 15.b.: Commissioner Wilkinson, duly seconded by Commissioner Stephens, moved to modify Conclusion of Law 8 to correct a typographical error and to adopt the ALJ's recommendation to revoke the sales agent license of Amy Chen and assess an administrative penalty of $27,000.00. The motion was adopted by unanimous vote.
ACTION on 15.c.: Commissioner Miller, duly seconded by Commissioner Leonard, moved to adopt the PFD as written to suspend the broker license of Arnulfo Celis, III, to be fully probated for five years.  The motion was adopted by unanimous vote.

Agenda Item 16 Discussion and possible action to authorize settlement of recovery fund claims or take other action on RF 19005; Teresa Whitaker v. Carlos Hernandez and Dickie Green
ACTION: Commissioner Leonard, duly seconded by Commissioner Wilkinson moved to authorize settlement payment of $8,055.00 in actual damages, plus interest and court costs. The motion was adopted by unanimous vote.

Agenda Item 17 Discussion and possible action to implement legislative changes enacted in SB 624 and fee changes related to the FY2020 budget and adopt amendments and repeal to 22 TAC:
a.    §535.101, Fees;
b.    §535.210, Fees; and
c.    §534.2, Processing Fees for Dishonored Payments (REPEAL)
ACTION: Commissioner Leonard, duly seconded by Commissioner Turner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to
22 TAC Chapter §535.101, Fees; §535.210, Fees; and repeal of §534.2, Processing Fees for Dishonored Payments, 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 18 Discussion and possible action to implement legislative changes enacted in SB 1200 regarding military applicants and license holders and adopt amendments and new rule to 22 TAC:
a.    §535.51, General Requirements for a Real Estate License;
b.    §535.58, License for Military Service Members, Veterans, or Military Spouses (NEW); and
c.    §535.208, Application for a License
ACTION: Commissioner Leonard, duly seconded by Commissioner Wilkinson, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to
22 TAC §535.51, General Requirements for a Real Estate License; new §535.58, License for Military Service Members, Veterans, or Military Spouses; and §535.208, Application for a License, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption. The motion was adopted with Commissioner Miller voting no.

Agenda Item 19 Discussion and possible action to implement legislative changes enacted in SB 624 eliminating branch office and instructor licenses and adopt amendments and repeal to 22 TAC:
a.    §535.57, Examinations;
b.    §535.60, Definitions;
c.    §535.67, Qualifying Education: Compliance and Enforcement;
d.    §535.70, Definitions;
e.    §535.72, Approval of Non-elective Continuing Education Courses; and
f.    §535.112, Branch Office (REPEAL)
ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.57, Examinations; §535.60, Definitions; §535.67, Qualifying Education: Compliance and Enforcement; §535.70, Definitions; §535.72, Approval of Non-elective Continuing Education Courses; and repeal of §535.112, Branch Office, 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 implement legislative changes enacted in SB 37 eliminating consideration of student loan defaults and SB 624 authorizing denial of license renewal if license holder is in violation of a Commission order and adopt amendments to 22 TAC:
a.    §535.61, Approval of Providers of Qualifying Courses;
b.    §535.62, Approval of Qualifying Courses;
c.    §535.71, Approval of CE Providers;
d.    §535.73, Approval of Elective Continuing Education Courses;
e.    §535.91, Renewal of a Real Estate License;
f.    §535.403, Renewal of Registration; and
g.    §543.12, Renewal of Registration
ACTION: Commissioner Leonard, duly seconded by Commissioner Miller, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.61, Approval of Providers of Qualifying Courses; §535.62, Approval of Qualifying Courses; §535.71, Approval of CE Providers; §535.73, Approval of Elective Continuing Education Courses; §535.91, Renewal of a Real Estate License; §535.403, Renewal of Registration; and §543.12, Renewal of Registration, 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 21 Discussion and possible action to implement legislative changes enacted in SB 624 applicable to complaints filed on or after September 1, 2019, and adopt amendments to 22 TAC:
a.    §535.191, Schedule of Administrative Penalties; and
b.    §535.219, Schedule of Administrative Penalties
ACTION: Commissioner Wilkinson, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.191, Schedule of Administrative Penalties; and §535.219, Schedule of Administrative Penalties, 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 22 Discussion and possible action to implement legislative changes enacted in SB 624 regarding public comments, removal of the term “moral character,” dismissal of complaints, and elimination of residency requirements and adopt amendments to 22 TAC:
a.    §535.41, Procedures;
b.    §535.52, Moral Character Requirements for Individual Applicant;
c.    §535.142, Consumer Complaint Processing; and
d.    §535.400, Registration of Easement or Right-of-Way Agents
 ACTION: Commissioner Miller, duly seconded by Commissioner Stephens, moved to Authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.41, Procedures; §535.52, Moral Character Requirements for Individual Applicant; §535.142, Consumer Complaint Processing; and §535.400, Registration of Easement or Right-of-Way Agents, 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 23 Discussion and possible action to align response times with other TREC rules and adopt conforming amendments to 22 TAC:
a.    §535.402, Complaints, Disciplinary Actions and Appeals;
b.    §539.150, Complaints; and
c.    §543.5, Violations
ACTION: Commissioner Leonard, duly seconded by Commissioner Wilkinson, moved to Authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.402, Complaints, Disciplinary Actions and Appeals; §539.150, Complaints; and §543.5, Violations, 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 and a new rule to 22 TAC, Chapter 535, Subchapter R, regarding inspectors as follows:
a.    §535.209, Examinations;
b.    §535.212, Education and Experience Requirements for a License;
c.    §535.213, Qualifying Real Estate Inspector Courses; and
d.    §535.214, Education and Experience Requirements for a License (NEW)
No action was taken on Agenda Item 24

Agenda Item 25 Discussion and possible action to adopt amendments to 22 TAC, Chapter 537, regarding Standard Contract forms as follows:
a.    §537.20, Standard Contract form TREC No. 9-13 (Unimproved Property Contract);
b.    §537.28, Standard Contract form TREC No. 20-14 (One to Four Family Residential Contract (Resale));
c.    §537.30, Standard Contract form TREC No. 23-15 (New Home Contract (Incomplete Construction));
d.    §537.31, Standard Contract form TREC No. 24-15 (New Home Contract (Completed Construction));
e.    §537.32, Standard Contract form TREC No. 25-12 (Farm and Ranch Contract);
f.    §537.37, Standard Contract form TREC No. 30-13 (Residential Condominium Contract (Resale));
g.    §537.43, Standard Contract form TREC No. 36-8 (Addendum for Property Subject to Mandatory Membership in a Property Owners Association);
h.    §537.47, Standard Contract form TREC No. 40-8 (Third Party Financing Addendum); and
i.    §537.55, Standard Contract form TREC No. 48-0 (Addendum for Authorizing Hydrostatic Testing)
ACTION: Commissioner Miller, duly seconded by Commissioner Wilkinson, moved to authorize staff, on behalf of the Commission, to withdraw amendments to 22 TAC Chapter 537 and the forms adopted by reference, as presented, and to submit for adoption, amendments to 22 TAC §537.47, Standard Contract form TREC No. 40-8 (Third Party Financing Addendum); and §537.55, Standard Contract form TREC No. 48-0 (Addendum for Authorizing Hydrostatic Testing), and the forms adopted by reference, as published, to the Texas Register, along with any technical or non-substantive changes required for adoption, with an effective date of March 1, 2020. The motion was adopted by unanimous vote.

Agenda Item 26 Discussion and possible action to propose amendments to 22 TAC §531.18, Consumer Information
ACTION: Commissioner Stephens, duly seconded by Commissioner Leonard, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to22 TAC §531.18, Consumer Information, 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 with Commissioners Leonard and Turner voting no.

Agenda Item 27 Discussion and possible action to propose amendments to 22 TAC §535.154, Registration and Use of Alternate, Team and Assumed Business Names Used in Advertisements
ACTION: Commissioner Stephens, duly seconded by Commissioner Leonard moved to authorize staff, on behalf of the Commission, to submit the proposed amendment to §535.154, Registration and Use of Alternate, Team and Assumed Business Names Used in Advertisements, 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 amendments to 22 TAC §535.216, Renewal of License
ACTION: Commissioner Miller, duly seconded by Commissioner Russell moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §535.216, Renewal of License, 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 Discussion and possible action to propose amendments to 22 TAC §541.1, Criminal Offense Guidelines
ACTION: Commissioner Leonard, duly seconded by Commissioner Williams, moved to authorize staff, on behalf of the Commission, to submit the proposed amendments to 22 TAC §541.1, Criminal Offense Guidelines, 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 30 Discussion and possible action regarding selection of new Executive Director
ACTION: Commissioner Stephens, duly seconded by Commissioner Leonard, moved to hire Chelsea Buchholtz as the new Executive Director of TREC effective January 1, 2020.  The motion was adopted by unanimous vote.

Agenda Item 31 Discussion and possible action to nominate candidates for the offices of Vice Chair and Secretary of the Commission
No action was taken on Agenda Item 31.

Agenda Item 32 Discussion and possible action regarding response to the October 8, 2019, letter from Governor Abbott
ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved that final approval of the response to the governor's letter be delegated to the Executive Committee following input from the entire Commission and that the letter be submitted no later than December 1, 2019.  The motion was adopted by unanimous vote.

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

Agenda Item 34 Discussion and possible action to schedule future meetings
ACTION: Chair Kesner stated that he valued everyone's time and would try to plan all meetings for the next year so everyone could get the meetings on their calendars.  The next meetings of the Commission are scheduled for February 10 (meeting), February 11 (budget workshop), May 4 (meeting), May 5 (possible workshop) and August 10 (meeting).

Agenda Item 35 Adjourn
ACTION: Commissioner Turner, duly seconded by Commissioner Leonard, moved to adjourn the meeting. The motion was adopted by unanimous vote and the meeting was adjourned at 2:16 p.m.