SUBCHAPTER B. TEXAS REAL ESTATE COMMISSION § 1101.051. COMMISSION MEMBERSHIP. Member of Commission - The Texas Real Estate Commission (TREC) consists of nine members appointed by the governor with the advice and consent of the senate as follows: 1. six members who have been engaged in the brokerage business as licensed brokers as their major occupation for the five years preceding appointment; and 2. three members who represent the public. (a) The governor shall have to power to appoint membership (b) Each member of the commission must be a qualified voter. (c) Appointments to the commission shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointee. Of the 9 Commission Members, 6 must have at least five years of experience as a practicing Broker. The other 3 can be from the public sector. All 9 are appointed by the Governor and must be registered voters in Texas. In short, they must reside/live in the State of Texas. The Governor cannot practice discrimination. 1 § 1101.052. PUBLIC MEMBER ELIGIBILITY. A person is not eligible for appointment as a public member of the commission if the person or the person's spouse: For the 3 public members who are appointed to the TREC, the State of Texas has specific requirements of them and their spouses. 1. is registered, certified, or licensed by an occupational regulatory agency in the real estate industry These 3 members must truly be from the “public sector” and not part of the real estate industry. 2. is employed by or participates in the management of a business entity or other organization regulated by the commission or receiving funds from the commission 3. owns or controls, directly or indirectly, more than a 10 percent interest in a business entity or other organization regulated by the commission or receiving funds from the commission; or 4. uses or receives a substantial amount of tangible goods, services, or funds from the commission, other than compensation or reimbursement authorized by law for commission membership, attendance, or expenses. These 3 members cannot be part owner of a business regulated by the TREC such as a real estate firm. They cannot be an employee of a Texas agency regulated or affiliated with the TREC. 2 § 1101.053. MEMBERSHIP AND EMPLOYEE RESTRICTIONS. Texas Trade Association - In this section, "Texas trade association" means a nonprofit, cooperative, and voluntarily joined statewide association of business or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest. Members of Real Estate Trade Associations are NOT classified as members of the general public and ineligible to sit on the commission. Elected Officers - A state elected president, president-elect, vice president, or secretary-treasurer, employee, or paid consultant of a Texas trade association in the real estate industry may not be a commission member and may not be a commission employee who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group A17, of the position classification salary schedule. Officers of the Real Estate Trade Association cannot become a member of the Texas Real Estate Commission. Even if they can qualify as a practicing licensed broker. -----------------------------------LEFT OFF HERE--------------------------------------------------------- 3 MEMBERSHIP AND EMPLOYEE RESTRICTIONS – cont. Spouse of Officer - A person who is the spouse of an officer, manager, or paid consultant of a Texas trade association in the real estate industry may not be a commission member and may not be a commission employee who is exempt from the state's position classification plan or is compensated at or above the amount prescribed by the General Appropriations Act for step 1, salary group A17, of the position classification salary schedule. A spouse of an officer of a Trade Association is ineligible to be a member of the TREC. Lobbyist Exclusion - A person may not serve as a commission member or act as the general counsel to the commission if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the commission. Lobbyists are NOT eligible to sit on the commission whether they qualify as a practicing broker or a member of the general public. 4 § 1101.054. OFFICIAL OATH. Not later than the 15th day after the date of appointment, each appointee must take the constitutional oath of office. When appointed by the Governor, an eligible appointee has to take the oath of office. The appointee has to accept the Governor’s appointment by official capacity. § 1101.055. TERMS OF COMMISSIONERS. Alternating 6 Year Term - Commission members serve staggered six-year terms, with the terms of three members expiring January 31 of each odd-numbered year. Each of the 6 members of the commission is appointed to a 6 year term. Each year a member is appointed to a 6 year term. Each year a member will complete their 6 year term. Vacancy - If a vacancy occurs during a member's term, the governor shall appoint a person to fill the unexpired term. If a member terminates his/her position or dies prior to 6 years, the Governor will appoint a new member to fill the void. 5 § 1101.056. OFFICERS. Governor Appoints “Presiding Officer” - The governor shall designate a commission member who is a licensed broker as presiding officer. The presiding officer serves in that capacity at the pleasure of the governor. The Governor determines which of the 6 members is to head the commission as the Presiding Officer. Commission Appoints Assistant - At a regular meeting in February of each year, the commission shall elect an assistant presiding officer and secretary from its membership. The commission determines who is to be the 2nd in command. The commission determines who is to be the presiding officer’s assistant. The commission determines who is to be the secretary of the commission. 6 § 1101.057. GROUNDS FOR REMOVAL. The governor has the power to remove members of the commission. “ The Governor can giveth and the Governor can taketh away. “ 1. It is a ground for removal from the commission that a member: (A) does not have at the time of appointment the qualifications required by Section 1101.051(a) or (b) or 1101.052; (B) does not maintain during service on the commission the qualifications required by Section 1101.051(a) or (b) or (C) violates a prohibition established by Section 1101.053; (D) cannot, because of illness or disability, discharge the member's duties for a substantial part of the member's term; or (E) is absent from more than half of the regularly scheduled commission meetings that the member is eligible to attend during each calendar year, unless the absence is excused by majority vote of the commission. If it is discovered that a commission member does not meet the prior qualifications as a practicing broker or is one of the ineligible categories of influential members of the general public, the Governor can remove them from office. If a member becomes sick or does not attend at least 50% of the meetings over a given year, the Governor can remove them. 7 GROUNDS FOR REMOVAL – cont. 2. The validity of an action of the commission is not affected by the fact that it is taken when a ground for removal of a commission member exists. 3. If the administrator has knowledge that a potential ground for removal of a commission member exists, the administrator shall notify the presiding officer of the commission of the ground. The presiding officer shall notify the governor that a potential ground for removal exists. If the administrator, head employee, of the Texas Real Estate Commission discovers a problem with one of the 6 members, he/she must report it to the presiding officer. The presiding officer must then notify the Governor. 8 § 1101.058. PER DIEM; REIMBURSEMENT. A commission member is entitled to receive: 1. $75 for each day the member performs the member's official duties; and 2. reimbursement for actual and necessary expenses incurred in performing the member's official duties. Commission members are reimbursed for their expenses while serving on the commission. They also are paid $75 each day they work as a member of the commission. 9