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2013 Spring Summary of Action Items

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MAY 3 - 4, 2013

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its Spring 2013 meeting.  Some additional information items are included, but do not necessarily represent Association policy.  A complete set of minutes is available for review upon request.

California REALTOR® EXPO Advisory
1. It was reported for information only that the CALIFORNIA REALTOR® EXPO 2013 will be held October 8-10, 2013 in Long Beach.  The theme will be "Champions of Home." 

C.A.R. Scholarship Foundation/C.A.R. Education Foundation
1. That the term of office for the C.A.R. Scholarship Foundation Trustees be changed from five years to three years.  Trustees appointed for 2014 and thereafter (or their successor in the event of a vacancy) will serve three year terms.  The terms of all current trustees will remain unchanged and they (or their successor in the event of a vacancy) will complete the five year term to which they were appointed.
(Note: The term of office for Directors of the C.A.R. Education Foundation will continue to match the term of office for the C.A.R. Scholarship Foundation.)
2. It was reported for information only that the C.A.R. Scholarship Foundation awarded scholarships totaling $11,000. 

CREPAC Trustees
1. That the following slate is duly noticed for approval at the Fall 2013 Business Meetings. CREPAC Trustees serve a two-year term. Non-voting Alternates may be selected to fill the remainder of a vacant term.

(November 2013- November 2015)
Eva S. Garcia, Region 3
Linda Harrison, Region 8
Don Scordino, Region 12
Frank Nelson, Region 14
Sandi Pfister, Region 21
Joyce Leonard, Region 23
Robert Kevane, Region 24
Geoffrey Craighead, Region 25
Robert Pahlke, Region 29
Liz Claus, Region 32

(November 2013 - November 2014)
Doug Covill, Region 3
Leslie Dopp-Manzone, Region 5
Craig Ragg, Region 6
Daniel Lanning, AE, Region 13
Thomas Berge, Region 16
Anne Oliva, Region 25

2. That the CREPAC Trustees made the recommendation that $20,000 be funded from RPAC for the 2014 Primary election to the California Congressional delegation.
3. That CREPAC contributed a total of $950,000 to the State Democratic and Republican Parties.

Ethics and Professionalism Task Force
1. That C.A.R. explore, and if feasible implement surveys to measure the current ethics climate of California licensees.
2. That C.A.R. explore, and if feasible implement surveys to measure ethics awareness (Ethics IQ) for individual measurement and aggregate analysis to determine collective ethics knowledge and that the $26,500 be approved to implement this in 2013.
3. That local Associations be mandated to use the statewide ethics data base for (1) transfer and new applicants to their association in accordance with NAR policy and (2) implementing progressive discipline and (3) use for publication by C.A.R. and that $20,000 be approved for software development for implementation in 2013.
4. That consistent with NAR Policy, C.A.R. publish, as soon as practical and feasible, the disciplinary actions reported by local Associations.
5. That C.A.R. seek an NAR policy change that allows more frequent publication of discipline in accordance with the guidelines in this report and if approved, C.A.R. publish the discipline reported by local Associations under the expanded guidelines.
6. That C.A.R. publish, as soon as practical, discipline from the DRE/BRE data base in accordance with the guidelines in this report and that $8,500 be approved to create summaries of DRE discipline for publication online on car.org in 2013 and evaluate the feasibility and cost of publication in the CRE magazine as part of the 2014 budget cycle.
7. That C.A.R. seek a policy change from NAR that allows associations to impose fines of up to $15,000 per hearing on a par with currently allowable MLS fines.
8. That C.A.R. develop expanded disciplinary guidelines and educate panels to impose more significant penalties to assist in deterring unethical behavior.
9. That the Legal Action Fund develop a policy to address assistance to local Associations when threatened with lawsuits for appropriate enforcement of the Code of Ethics.
10. That, as soon as practical and feasible,  C.A.R amend its listing agreement to prominently include the essential elements of the new SEL form (about pocket listings) such as an explanation of the difference of private MLSs, the impact on the property value and include a place for seller’s and agent’s initials that all offers must be presented and that $20,000 be approved in order to amend the SEL and all Listings agreements immediately.
11. That C.A.R. design an outreach campaign to inform members about the Ombudsmen and Ethics Advocate services that are available and how they assist them in dealing with others that are in violation of ethics, rules or lacking in professional courtesies.
12. That Associations be required to advise all parties that Ombudsman & Ethics Advocates processes are available.
13. That C.A.R. enhance its professional standards, Ombudsmen and Ethics Advocate training.  Further, that C.A.R. provide mechanisms for volunteers in this capacity to communicate with each other, with appropriate protections for confidentiality, to assist each other and that $6,000 be approved for the training.
14. That every Association should strive to achieve timely ethics hearings scheduled in less than 45 days from filing. Tips for expediting processing will be shared with local Associations.  The current C.A.R. Code of Ethics and Arbitration Manual will be reviewed for opportunities to expedite hearings within due process and NAR policy constraints.
15. It was reported for information only that a motion was referred to the Transaction and Regulatory Committee for further study that C.A.R. seek legislation that mandates continuing education (CE) of 12 hours per year (a total of 48 hours over four years), including 3 hours of ethics annually, for all licensees through legislation in the 2014 session.
16. That the C.A.R. bylaws be amended to implement the mandatory sanctions listed in VII to compel local Associations to comply with policies as determined by the C.A.R. Board of Directors as mandatory. (Motions that include a mandatory element are conditioned on implementation of at least some of the sanctions listed in section VII.)

Home Ownership Housing
1. That C.A.R. “SPONSOR” legislation in 2014 to specifically address unlawful occupation of residential property by squatters.

IMPAC Trustees
That C.A.R. IMPAC send Local Association and Board Executives, Presidents, President-Elects and Governmental Affairs Directors, as applicable, local IMPAC balances along with instructions and guidelines for use, on an annual basis. The notification should also ask locals to share any anticipated or upcoming issues with the IMPAC Trustees.

That the following slate is duly noticed for approval at the Fall 2013 Business Meetings. IMPAC Trustees serve a two-year term.  Non-voting Alternates may be selected to fill the remainder of a vacant term during the year.

(November 2013- November 2015)
Paula Colombo, Region 3
Jeannette Way, Region 4
Anita Thede, Region 6
Lisa Muetterties, Region 7
Betty Taisch, Region 8
RoseMarie McNair, Region 10
Lidia Yun, Region 16
Robert Kronovet, Region 17
Stephen Hanleigh, Region 19
Jolaine Merrill, Region 21
Larry Black, Region 23

(November 2013 - November 2014)
Tom Hiller, Region 1
Kim Tucker, Region 3
Paul Cardus, AE, Region 9
Patricia Douglas, Region 17
Sheri Fejeran, Region 21
Ron Brownell, Region 29

2. It was reported for information only that the following IMPAC request was approved:
$30,000 to the California Natural Resources Group to coordinate coalition efforts on State and Federal wetlands and endangered species regulatory issues.

3. That the IMPAC bylaws correction be accepted as referenced in the April 22, 2013 notice to Directors as follows: 

Article V Section 3.3 Selection. The Nominating Committee shall select no more than one nominee from any region among the names submitted and qualified for the office of Trustee to fill each vacancy that will exist at the end of the elective year. The Nominating Committee shall also select up to six (6) Alternate Trustees from the names submitted and qualified for the office of Trustee for one-year terms from the remaining nominees. A qualified Association Executive may, but is not required to, be selected as a non-voting Alternate Trustee. There shall be no more than one (1) Alternate Trustee selected from any region. The nominees’ names shall be announced at the regular or special C.A.R. Board of Directors’ meeting preceding the meeting at which the election will take place.

Investment Housing
1. That C.A.R., in conjunction with NAR, “SUPPORT” the expansion of the FHA 203(k) program to investors.

Land Use and Environmental
1. That C.A.R “OPPOSE” the implementation of CalEnviroScreen.
2. That C.A.R “OPPOSE” AB 667 (R. Hernandez) and SB 673 (DeSaulnier) which would require local agencies to complete an economic impact report prior to permitting the construction or alteration of any project using public funds or subsidies.
3. That C.A.R “OPPOSE” AB 543 (Campos) which would require lead agencies to translate California Environmental Quality Act documents and notices when the affected community has a "substantial" number of non-English speaking people.
4. That C.A.R “WATCH” AB 145 (Perea) which would consolidate drinking water programs within Department of Public Health and the State Water Board.
5. That C.A.R. revise its position on SB 630 (Pavley/Steinberg) regarding Tahoe Regional Planning Agency from "OPPOSE UNLESS AMENDED" to "OPPOSE."

Legal Action Fund Trustees
1. It was reported for information only that since October 2012 the Legal Action Fund Trustees have reviewed 7 cases and approved filing amicus briefs in 2 cases:

Hoang v. BofA. The Trustees authorized a brief on the issue that a short sale approval letter by a bank is enforceable as a contract. [note: after the brief was approved and C.A.R. contacted BofA’s counsel on the case, the matter settled, so no brief will be filed.]

Steele v. Spina. The Trustees authorized a brief on the issue of there being no duty of a listing broker to a third party (who held a right of first refusal pursuant to a settlement) (1) to allow access to the seller’s property whenever the third party made a request and (20 to make disclosures about the property prior to the third party entering into a contract with the seller.

2. It was reported for information only that the Trustees revised the Legal Action Fund Guidelines for submission of cases to reinforce three concepts: 

First, the Fund is not a replacement for E&O insurance. 

Second, cases that come to us when the person is representing him or herself in court are usually extremely poorly positioned to be successful and the requests of LAF involvement are almost always rejected. 

Finally, cooperation and coordination of strategies before briefs are filed is a prerequisite to the Legal Action Fund getting involved, including when a C.A.R. form is involved.

1. It was reported for information only that C.A.R. staff will prepare an Issues Briefing Paper about possible sponsored legislation to specifically address remedies for delinquent HOA dues that include garnishment of rents in tenant occupied properties.

1. That, conditioned on NAR changing its policy, and conditioned on feasibility of implementation, C.A.R. draft and notice appropriate amendments to C.A.R.’s policy to address the exemption from the Dues Formula for exclusive MLOs.
2. That the following applicants be granted C.A.R. Honorary Member-for-Life status:

Amador County AOR
Ralph Wells

Arcadia AOR
Clyde Towles

Bakersfield AOR
Thomas Meeks, Jr.

Bay East AOR
Arlene DeWees
William Elliott
Marge Lundquist

Beverly Hills/Greater LA AOR
Kyle Bradshaw
Joyce Flint
Betty Graham
Tina Hale
Joan Kratkin
Paul Lorda
Ania Patterson
Norman Patterson
Norman Wike

Burbank AOR
Billie B Nichols

California Desert AOR
Joe Roberson

Contra Costa AOR
Frank Belleci
Patricia Bennett
Francoise Buchignani
Lois Garner
Merle Hall
Richard Holt
Shirley Jacobson
Lynne Keefer
Diane MacDonald
David Malcolm
Barbara Nagle
Raymond Olson
Jim Payne
Richard Pratt
Walter Robb
Aurora Schaaf

Desert Communities AOR
Rose Marie Benson
Patricia Cooper
William Davenport

East Valley AOR
Joanne Nightingale

Fresno AOR
Esther Lango
Grace Rustigian
George Singleton

Glendale AOR
Mary Morrison
Evelyn Reichgelt

Greater San Diego AOR
Myriam Huneke

Hemet San Jacinto AOR
Dottie Jones
Fred Massey

Inland Valleys AOR
Mary Ann Mallory
Richard Tegley

Lodi AOR
Florence Trelford

Malibu AOR
Marca Helfrich
Ray Mendez
Rosalind Nelson

Mammoth Lakes BOR
David Buckman
Janice Gray
Jan Morin

Marin AOR
Joyce Applen
Hermine' Boyadjian
Niz Brown
Hazel Carter
Tony Engstrom
Kaye Porter

Nevada County AOR
Frances Allen

Newport Beach AOR
Don Grady
Mary Ann Mascaro

North Bay AOR
Anastasia Amundsen
Carole Bullert
Marie Canale
Dean Crumley
Allene Galantino
Arlee Geary
Joseph Lilley
Elizabeth Martin
Maralyn Polo
John Prince
Eugene Reineman
Charles Scott
Patricia Taylor

North San Diego County AOR
George Kirscher
Mary Sciacca
John Selitsch
Katharina Selitsch

Northern Solano County AOR
Lucilla Hazard
Vera McAlister

Orange County AOR
Maurice Hansen
Susan Janes
Estra Kreger-Shaffer
Larry ORourke, Jr.
Robert Perlman
Ric Quevedo
James Welham

Oroville AOR
Elizabeth Peterson

Pacific West AOR
Robert Bell
Kenneth Cottle

Palos Verdes Peninsula AOR
Janice Kelly
Marion Ruth

Paradise AOR
Maria Durman
Maurine Johnson

Ridgecrest Area AOR
Harry Eyre
John Lyons

Santa Clara County AOR
John Baptiste
Virginia Duran
Robert Fernandez
Arkadi Galicki
Roseleine Higgins
Richard MacKie
Ellen Reuter
Linda Tierney
Leena Vadehra

Santa Cruz County AOR
Lee Bookman
Susie Boone
Jean Crawford
Jerry Smeltzer
Jo Ann Vear
Lorie Wantland

Scenic Coast AOR
Nathaniel Wood

Silicon Valley AOR
Dorine Alvord
Hannelore Blanchard
Rowland Degeorge
Ann Griffiths
Lyman Logan
John Murren
Jo Preston
Gail Salem
Roberta Savage
Helen Tish

South Bay AOR
Naomi Schiff

Southwest Los Angeles AOR
Robert Bryant
Rebecca Little
Theodore Lumpkin

Tahoe Sierra BOR
Gerry Lambert

The Inland Gateway AOR
Helen Caswell
Ural Wasson, Jr.

Tri-Counties AOR
Diana Wood
Derek Wood

Tulare County AOR
Molly Moses
Vi Putman
Wayne Scott
Ann Shipman

West San Gabriel Valley AOR
Dan Fernandez 

MLS Policy
1. That, upon final approval by NAR, the Work Group Recommendations for Revising the C.A.R. Model MLS Rules on Mandatory Submission and Exempted Listings be adopted and incorporated into the C.A.R. Model MLS Rules as set forth below and that Staff make any necessary correlating changes to the Model Citation Policy:

Click here to review the Work Group Recommendations for Revising the C.A.R. Model MLS Rules on Mandatory Submission and Exempted Listings

2. That parallel language along the line of that set forth below be added to the Exempted Listing Rule if and when it or any other related change to the SEL goes into the C.A.R. Standard Forms:

and (4) the reduction in exposure of the listing may lower the number of offers made on the property and may adversely impact the overall price.

1. That the following be designated to serve as State Allocated NAR Directors for a three year term ending November 2016 and as Alternates for the 2014 elective year.

Colleen Badagliacco, Santa Clara County, Region 19 
Allen Chiang, Rancho Southeast, Region 22
Don Faught, Bay East, Region 6
Steve Goddard, South Bay, Region 21
Robert Kulick, Santa Clara County, Region 19
Ann Pettijohn, Pacific West, Region 23 
Melvin Wilson, Southland Regional, Region 18

Alternates in Priority Order
Sue Walsh, San Mateo, Region 25
Jennifer Branchini, Bay East, Region 6
Timothy Brigham, Big Bear, Region 15
Carl San Miguel, Santa Clara County, Region 19
Mary Funk, California Desert, Region 28
Irma Vargas, Beverly Hills/Greater LA, Region 17
Marion Proffitt, Tri Counties, Region 23
Wendy Furth, Southland Regional, Region 18

2. That the following individuals be elected as Directors For Life:
Lorraine Clark, West San Gabriel Valley, Region 16
Steve Rosco, Pacific West, Region 23
Steve White, Southland Regional, Region 18

3. That Joel S. Singer be elected as Chief Executive Officer/State Secretary for the year 2014.
4. That Geoff McIntosh be elected as Treasurer for the years 2014-2015.
5. That Chris Kutzkey be elected as President-Elect for the year 2014.
6. It was reported for information only that Kevin Brown will become President for the year 2014.

Professional Standards
1. That C.A.R. SUPPORT a position that local associations must notify the Broker of a Salesperson Complainant about the Ethics complaint that the Salesperson has filed, provided the Salesperson’s broker is bound by confidentiality.

Standard Forms Advisory
There were 23 Regional Representative reports given to the Standard Forms Advisory Committee (SFAC). The committee heard extensive comments regarding the Counter Offer (CO) drafts as well as a few recommendations on other forms. 
The SFAC reviewed and approved the following drafts with minor modifications for release in November:
--Buyer’s Inspection Elections (BIE)
--Buyer’s Vacant Land Inspection Advisory (BVLIA)
--Corporation/Limited Liability Company Signature Addendum (CCSA)
--Delivery of Short Sale Lender Written Consent (DSLW)
--Notice to Quit (NTQ)
--Pet Addendum & Agreement (PA)
--Pool, Hot Tub & Spa Addendum (PHSA)
After much debate and consideration of the regional representative reports, the SFAC decided to create a one page counter offer without the multiple counter offer language, which will provide more lines.  The SFAC also approved the creation of a separate stand-alone seller multiple counter offer for release in November. 

After extensive discussion, the SFAC approved item number 10 from the “Ethics and Professionalism Task Force Summary and Recommendations” report and will amend the Residential Listing Agreement (RLA) to include language advising of advantages to including the property in the MLS and disadvantages of excluding the property from the MLS.  The language will be in the body of the RLA on page 2 and contained within a box and will need to be acknowledged by seller and agent initials.  The SFAC also agreed to add to paragraph 8 language regarding listing agent’s obligation to present all offers. The SFAC proposed breaking the Seller Instruction to Exclude Listing from the Multiple Listing Service or Internet (SEL) into two different forms, one for exclusion from the MLS generally and the other for opting out of internet features.  The committee will have a conference call in the next few weeks to review the changes to the RLA and the SEL, with the intention of releasing these forms as soon as possible.   All of the other listing agreements will be also modified as appropriate and schedule for release as well.

The SFAC also received updates regarding the following study groups:
RPA Study Group
SFAC/zipForm Joint Study Group
Vacant Land Study Group
Finally, the SFAC will review over 100 comments received via conference calls.

Strategic Planning and Finance
1. That the audited Statement of Income and Expenses by program for the twelve months ending December 31, 2012 be approved.

Total C.A.R.
Revenue of $26,097,800
Expenses of $25,708,500
An excess of income (including investment income) over expenses of $389,300

Political Activities Fund
An excess of income over expenses of $1,677,400

Issues Action Fund
An excess of income over expenses of $793,400
This amount was allocated to IMPAC as approved by the Directors.

REALTOR® Action Assessment
An excess of income over expenses of $6,477,900.
This amount was allocated to PACs.

The C.A.R. Balance Sheet as of December 31, 2012
Total assets of $62,958,200 (of which $51,312,300 are current assets)
Total liabilities of $6,797,800 (of which $3,471,700 are current liabilities)
C.A.R. Fund Balance of $56,160,400

2. That the Statement of Income and Expenses by program for the two months ending February 28, 2013 be approved.

Total C.A.R.
Revenue of $16,535,600
Expenses of $4,276,400
An excess of income (including investment income) over expenses of $12,259,200

Political Activities Fund
An excess of income over expenses of $2,701,000

Issues Action Fund
An excess of income over expenses of $1,202,600

REALTOR® Action Assessment
An excess of income over expenses of $6,259,000

The C.A.R. Balance Sheet as of February 28, 2013
Total assets of $79,521,700 (of which $68,109,800 are current assets)
Total liabilities of $10,078,900 (of which $10,047,100 are current liabilities)
C.A.R. Fund Balance of $69,442,800

3. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2013 be approved.

Total C.A.R.
Revenue of $27,603,000
Expenses of $29,015,700
An excess of expenses over income (including investment income) of $1,412,700

Political Activities Fund
An excess of income over expenses of $1,299,900

Issues Action Fund
An excess of income over expenses of $691,000. This amount will be allocated to IMPAC as approved by the Directors.

REALTOR® Action Assessment
An excess of income over expenses of $6,307,900. This amount will be allocated to PACs.

4. That $9,000 be approved for box lunches for 160 C.A.R. members attending the NAR Mid-Year Hill Briefings in May.

5. That an augmentation of $60,000 be approved to fund the Finance Helpline through the end of the year.

Taxation and Government Finance
1. That C.A.R. “SUPPORT” legislation which would reduce the amount of the fire fee, while maintaining C.A.R. policy in opposition to the fee, with emphasis to direct funds to local and state fire agencies rather than to the General Fund.
2. That C.A.R. “OPPOSE” AB 561 (Ting) which would impose a documentary transfer tax upon a 100 percent change in ownership.
3. That C.A.R. “OPPOSE” SB 391 (DeSaulnier) which would impose a fee of $75 to record every real estate instrument not part of a sales transaction to fund affordable housing.

Transaction and Regulatory
1. That C.A.R., in conjunction with NAR, “SUPPORT” FHA risk based pricing.
2. That C.A.R., in conjunction with NAR, “OPPOSE” any cap on the FHA market share.
3. That C.A.R., in conjunction with NAR, “OPPOSE” a reduction in the FHA 100 percent guarantee.
4. That C.A.R. “OPPOSE” SB 652 (DeSaulnier) requiring disclosure and recording of a construction defect claim.
5. That C.A.R. “SUPPORT” AB 1220 (Skinner) which enables consumers denied credit to receive the same credit report as the one provided to retailers.

Revised: May 9, 2013