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
No action needed or taken.

Agenda Item 3 Opening remarks and report from the Chair
Chair Kesner provided opening remarks.

NOTE: Some audio was lost at the beginning of Agenda Item 3.

Agenda Item 4 Appointments to the Texas Real Estate Broker-Lawyer Committee
ACTION: Commissioner Russell, seconded by Commissioner Hartgraves, moved to appoint Dianne McCoy and Mary Minor to the Texas Real Estate Broker-Lawyer Committee along with Charles Porter as an alternate.  The motion was adopted with Commissioner Woodroof abstaining.

Agenda Item 5 Appointment of a selection committee to review applicants for Education Standards Advisory Committee
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to appoint Commissioners Miller, Wilkinson, and Williams to the selection committee to review applications for ESAC. The motion was adopted by unanimous vote.

Agenda Item 6 Appointment of a selection committee to review applicants for The Texas Real Estate Inspector Committee
ACTION: Commissioner Woodroof, seconded by Commissioner Russell, moved to appoint Commissioners Kesner, Peña, and an Inspector Committee member to the selection committee to review applications for TREIC.  The motion was adopted by unanimous vote.

Agenda Item 7 Staff reports by Executive Director, Deputy Executive Director, and Division Directors regarding agency operations, initiatives, and division updates
Reports given by the following:
Chelsea Buchholtz, Executive Director
Tony Slagle, Deputy 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
Steve Rapp, Director of Information Technology Division
Ranada Williams, Director of Financial Services Division

Agenda Item 8 Report by the Executive Committee
Report given by Chair Kesner

Agenda Item 9 Report by the Budget Committee
Report given by Commissioner Williams, Chair of the committee

Agenda Item 10 Report by the Texas Real Estate Broker-Lawyer Committee
Report given by General Counsel Burgess

Agenda Item 11 Report by the Education Standards Advisory Committee
Report given by Kelea Youngblood, Chair of the committee

Agenda Item 12 Report by the Broker Responsibility Working Group
Report given by General Counsel Burgess

Agenda Item 13 Report by the Texas Real Estate Inspector Committee
Report given by Lee Warren, 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 verbal comments given.  The Chair noted a written comment received by Mickey Lackey as a follow up to her verbal comment given at the May 2021 Commission Meeting.

Agenda Item 15 Consideration and possible action regarding proposal for decision in the matter of
a. SOAH Docket No. 329-20-4501.REC; TREC v. Cody Grant Bingham
b. SOAH Docket No. 329-21-0149.REC; Jared David Schuren v. TREC
c. SOAH Docket No. 329-21-1050.REC; Donald Saunders v. TREC
ACTION on 15.a.: Commissioner Russell, seconded by Commissioner Woodroof, moved to accept the PFD as written to deny the sales agent application of Cody Grand Bingham. The motion was adopted by unanimous vote.
ACTION on 15.b.: Commissioner Hartgraves, seconded by Commissioner Peña, moved to accept the PFD as written to deny the reinstatement of a broker license application of Jared David Schuren. The motion was adopted by unanimous vote.
ACTION on 15.c.: Chair Kesner, seconded by Commissioner Russell, moved to modify the PFD as written by striking Finding of Facts numbers 7 and 17, replacing Conclusions of Law numbers 15, 16, and 22, and to assess a $5,000 administrative penalty and revoke the sales agent license of Donald Saunders. The motion was adopted by unanimous vote.

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 11:50 a.m.
Chair Kesner reconvened the meeting at 1:22 p.m.

Agenda Item 17 Report regarding denial of recovery fund claims as follows:
a. RF20001; Inhouse Property Management v. Janine Johnson
b. RF21006; Day'Lon Byrd v. Robert Edwards, aka Robert Nunn-Edwards
Report given by Abby Lee, Deputy General Counsel

Agenda Item 18 Discussion and possible action to adopt emergency amendments to 22 TAC §535.148, Receiving an Undisclosed Commission or Rebate
ACTION:  Commissioner Wilkinson, seconded by Commissioner Lerner, moved to authorize staff, on behalf of the Commission, to submit for adoption on an emergency basis, amendments to 22 TAC §535.148, Receiving an Undisclosed Commission or Rebate, 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, 2021.  The motion was adopted by unanimous vote.

Agenda Item 19 Discussion and possible action to adopt emergency amendments and new rule to 22 TAC Chapter 537 as follows:
a. §537.20, Standard Contract form TREC No. 9-14 (Unimproved Property Contract);
b. §537.28, Standard Contract form TREC No. 20-15 (One to Four Family Residential Contract (Resale));
c. §537.30, Standard Contract form TREC No. 23-16 (New Home Contract (Incomplete Construction));
d. §537.31, Standard Contract form TREC No. 24-16 (New Home Contract (Completed Construction));
e. §537.32, Standard Contract form TREC No. 25-13 (Farm and Ranch Contract);
f.  §537.37, Standard Contract form TREC No. 30-14 (Residential Condominium Contract (Resale); and
g. §537.60, Standard Contract form TREC No. 53-0 (Addendum containing Notice of Obligation to Pay Improvement District Assessment)(NEW)
ACTION:  Commissioner Russell, seconded by Commissioner Williams, moved to authorize staff, on behalf of the Commission, to submit for adoption on an emergency basis, amendments to 22 TAC Chapter 537 and the forms 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, 2021.  The motion was adopted by unanimous vote.

Agenda Item 20 Discussion and possible action to adopt amendments to 22 TAC §535.220, Professional Conduct and Ethics
ACTION: Commissioner Miller, seconded by Commissioner Lerner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC §535.220, Professional Conduct and Ethics, 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 amendments to 22 TAC Chapter 535, Subchapter R as follows:
a. §535.227, Standards of Practice: General Provisions;
b. §535.228, Standards of Practice: Minimum Inspection Requirements for Structural Systems;
c. §535.229, Standards of Practice: Minimum Inspection Requirements for Electrical Systems;
d. §535.230, Standards of Practice: Minimum Inspection Requirements for Heating, Ventilation, and Air Conditioning Systems;
e. §535.231, Standards of Practice: Minimum Inspection Requirements for Plumbing Systems;
f.  §535.232, Standards of Practice: Minimum Inspection Requirements for Appliances;
g. §535.233, Standards of Practice: Minimum Inspection Requirements for Optional Systems; and
h. §535.223, Standard Inspection Report Form
ACTION: Commissioner Russell, seconded by Commissioner Lerner, moved to authorize staff, on behalf of the Commission, to submit for adoption, amendments to 22 TAC Chapter 535, Subchapter R, 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 February 1, 2022. The Standard Inspection Report Form, REI 7-6, is adopted for voluntary use beginning September 1, 2021, through February 1, 2022, at which time its use will become mandatory.  The motion was adopted by unanimous vote.

Agenda Item 22 Discussion and possible action to propose amendments to 22 TAC §535.43, Education Standards Advisory Committee
ACTION: Commissioner Wilkinson, seconded by Commissioner Woodroof, moved to submit the proposed amendments to 22 TAC §535.43, Education Standards Advisory Committee, 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 22 TAC §535.92, Continuing Education Requirements
ACTION: Commissioner Peña, seconded by Commissioner Russell, moved to submit the proposed amendments to 22 TAC §535.92, Continuing Education Requirements, 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 22 TAC §535.148, Receiving an Undisclosed Commission or Rebate
ACTION: Commissioner Williams, seconded by Commissioner Lerner, moved to submit the proposed amendments to 22 TAC §535.148, Receiving and Undisclosed Commission or Rebate, 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 535, Subchapter R as follows;
a. §535.201, Definitions
b. §535.206, The Texas Real Estate Inspector Committee
ACTION: Commissioner Wilkinson, seconded by Commissioner Lerner, moved to submit the proposed amendments to 22 TAC Chapter 535, 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 26 Discussion and possible action to propose amendments and new rule to 22 TAC Chapter 537 as follows:
a. §537.20, Standard Contract form TREC No. 9-14 (Unimproved Property Contract);
b. §537.28, Standard Contract form TREC No. 20-15 (One to Four Family Residential Contract (Resale));
c. §537.30, Standard Contract form TREC No. 23-16 (New Home Contract (Incomplete Construction));
d. §537.31, Standard Contract form TREC No. 24-16 (New Home Contract (Completed Construction));
e. §537.32, Standard Contract form TREC No. 25-13 (Farm and Ranch Contract);
f.  §537.37, Standard Contract form TREC No. 30-14 (Residential Condominium Contract (Resale)
g. §537.60, Standard Contract form TREC No. 53-0 (Addendum containing Notice of Obligation to Pay Improvement District Assessment)(NEW)
ACTION: Commissioner Lerner, seconded by Commissioner Woodroof, moved to submit the proposed amendments and new rule 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 was adopted by unanimous vote.    

Agenda Item 27 Discussion and possible action regarding FY2022 draft budget and budget policy
ACTION: Commissioner Peña, seconded by Commissioner Woodroof, moved to approve the FY2022 budget and budget policy as presented.  The motion was adopted by unanimous vote.

Agenda Item 28 Discussion and possible action regarding approval of Internal Audit Plan for FY2022
ACTION: Commissioner Wilkinson, seconded by Commissioner Woodroof, moved to approve the Internal Audit Plan for FY2022 as presented. Commissioner Peña, seconded by Commissioner Hartgraves, moved to amend the motion to approve the Internal Audit Plan for FY2022 as presented, subject to establishment of an Audit Committee at the next Executive Committee meeting.   The original motion failed and the amended motion was adopted by unanimous vote.
 
Agenda Item 29 Discussion and possible action regarding TREC-TALCB MOU FY2022-23
ACTION: Commissioner Woodroof, seconded by Commissioner Russell, moved to approve the TREC-TALCB MOU FY2022-23 as presented.  The motion was adopted by unanimous vote.

Agenda Item 30 Discussion and possible action to approve the text of Legal Update I and II required continuing education courses for 2022-23
ACTION: Commissioner Lerner, seconded by Commissioner Miller, moved to approve the text of Legal Update I and II subject to any non-substantive changes required for publication.  The motion was adopted by unanimous vote.

Agenda Item 31 Discussion and possible action regarding possible topics for November workshop
No topics were suggested; however, they will be discussed at the August 10, 2021, workshop.

Agenda Item 32 Discussion and possible action regarding future agenda items
ACTION: Commissioner Peña requested to discuss the formation of the new audit committee.

Agenda Item 33 Discussion and possible action to schedule future meetings
Future meeting dates:
Monday, November 8, 2021 Meeting
Tuesday, November 9, 2021 Annual Workshop

Monday, February 14, 2022 Meeting
Tuesday, February 15, 2022 Workshop

Monday, May 2, 2022 Meeting
Tuesday, May 3, 2022 Workshop
ACTION: The next meetings of the Commission are scheduled for November 8 and 9, 2021, February 14 and 15, 2022, and May 2 and May 3, 2022.

Agenda Item 24 Adjourn
ACTION: The meeting was adjourned at 2:02 p.m.