CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
JANUARY 25 - 26, 2002

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS Board of Directors at its January 2002 meeting.  A complete set of minutes is available for review upon request.  For more information please contact Marleen Schuster at 213-739-8209 or e-mail marleen_schuster@car.org.

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SPECIAL REPORTS

Property Information/MLSTask Force
1. That the Property Information/MLS Task Force recommendations be approved as presented.

A. That C.A.R. seek to develop a specific set of computer based "Intelligent Agent" software tools.  These REALTOR centric tools will provide for the ability to directly collect a wide range of property data information from various sources within a peer-to-peer computing environment, and these tools will be developed to encompass the widest possible range of system components, including but not limited to the evolving needs of wireless technology.

B. That C.A.R. work to create an expanded data standard which will allow the "Intelligent Agent" software tools to successfully effect the exchange of information among systems.  This standard will be based upon the currently published R.E.T.S. data standard, but will be greatly expanded to accommodate the requirements within California, wireless computing, governmental property information, and other appropriate data sources associated with property information sharing and transactions.  Relevant testing and certification processes will be developed as required, and this data standard will be embedded in all relevant existing and future C.A.R. products.

C. That C.A.R. review the "California Master Reciprocal Agreement" and make changes as deemed necessary.  This agreement has not been materially updated since 1994, and as a result, does not reflect the current technological environment.  Input will be solicited from current signatories to determine if it can form the basis of an agreement for the full exchange of information between MLS's that the Task Force recommendations anticipate.  Initial areas to be reviewed should be the multiple "levels of service" options that currently exist, restrictive limits to access of comparative listing data, and reciprocal fee structures.

D. That C.A.R. review the need for a MLS technical forum conducted during C.A.R. business meetings that would facilitate opportunities for networking, and the exchange of information regarding current MLS products and case studies, among the MLS decision makers within the organization.

E. That C.A.R. begin implementation of those initiatives that have minimal or no budgetary impact; that staff prepare an initial program budget; and that the SPF Committee shall review any budget augmentation required to implement the recommendations when it meets in March 2002 and report its recommendation to the Board of Directors for approval in June 2002.

Real Estate Business Services
1. That the following amendment to Article IV of the Real Estate Business Services, Inc. Articles of Incorporation be approved (new language shown with underlined text.) 

For purposes of determining whether a majority of the voting stock of this corporation has approved any of the foregoing acts within this Article IV, for so long as California Association of REALTORS® ("C.A.R.") is a shareholder of the corporation, evidence that C.A.R. has voted its shares shall be in the form of a certificate, addressed to the Board of Directors of this corporation, executed by the Chief Executive Officer of C.A.R. under penalty of perjury to the effect that a majority of the Board of Directors of C.A.R. ("C.A.R. Board"), in attendance at a duly called meeting of the C.A.R. Board wherein a quorum was present, voted to approve that matter in question, or the matter in question was approved in any other manner authorized under the C.A.R. Bylaws.

PUBLIC POLICY

Common Interest Development
1. That C.A.R. OPPOSE legislation that would permit a homeowner association to enforce a violation of its governing documents at point of sale.
2. That C.A.R. OPPOSE legislation that would require all homeowner associations to register with the State of California.

Housing Affordability 
1. That C.A.R. AMEND its bill relating to density bonus.  The amendments would provide that the law: a) apply to the California Coastal Commission and b) prohibit cities and counties from arbitrarily denying a housing development.
2. That C.A.R. AMEND its bill relating to downzoning of property to provide that a prevailing plaintiff be awarded reasonable attorney fees and costs.

Housing Affordability Fund 
1. That the C.A.R. Housing Affordability Fund Program cost of twenty-one thousand eight hundred dollars ($21,800) that was allocated in the 2001 Budget to be rolled over to the 2002 Budget.

Land Use and Environmental
1. That C.A.R. participate in negotiations with the Governor's Administration, seeking relief from the new law on lot line adjustments for the following types of property owners:
--Existing residential and commercial 
--Agricultural
--Residential and Commercial Developers

Legislative 
1. That C.A.R. "SUPPORT" Department of Real Estate education reforms which would 
--Require conditional sales licensees to include "Real Estate Practices" as one of the two classes they must take within 18 months of licensure.
--Impose a testing requirement in the four mandatory classes (Agency, Ethics, Trust Fund, and Fair Housing) taken for a licensee's first renewal; but not in the 6-hour survey course required for subsequent renewals or in other classes.

2. That C.A.R. take the following positions on March 2002 Ballot Propositions:

PROPOSITION 40: California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection.
Position: NEUTRAL

PROPOSITION 41:  Voting Modernization Act of 2002.  Bond Measure.
Position:  Not Real Estate Related

PROPOSITION 43:  Right toHave Vote Counted.  Legislative Constitutional Amendment.
Position:  Not Real Estate Related

PROPOSITION 44:  Insurance Fraud.  Legislative Constitutional Amendment.
Position:  Not Real Estate Related

PROPOSITION 45:  Legislative Term Limits:  Local Voter Petitions.  Legislative ConstitutionalAmendment.
Position:  Not Real Estate Related

(Note: In October 2001 C.A.R. adopted the following position)
PROPOSITION 42:  Transportation Funding:  Sales and Use Tax Revenues.  Legislative Constitutional Amendment.
Position:  NEUTRAL 

Property Management 
1. That C.A.R. OPPOSE any expansion of law that proposes to require a 60-day notice (now 30-day) to terminate a residential tenancy.
2. That C.A.R. OPPOSE legislation making it more difficult for an owner to occupy his/her previously rented property.

Real Estate Finance
1. That C.A.R., in conjunction with N.A.R., support HR 959/S. 615 and amendments to these bills that would eliminate the existing thirty-year limitation on a veteran's use of the Cal Vet general obligation bond program.
2. It was reported for information only that the committee took up a motion from the East San Diego Association to support the creation of an alternative HUD REO disposition pilot program in California.  After the maker of the motion proposed an amendment to the original motion, the committee heard the report of the working group that had been charged in October with exploring the issues raised by the original motion.  Given the recommendations of the working group re: the original motion and the concerns raised by the amended motion, the committee referred the amended motion to the working group for further review. 

BUSINESS

MLS/ Computer & Business Technology
1. That C.A.R, inconsultation with NAR, immediately investigate the development and implementation of a REALTOR owned lockbox system or other alternatives.

Standard Forms Advisory 
1. It was reported for information only that in response to the many comments the Committee has received requesting modifications to the residential purchase agreement, it hosted a panel discussion on the key issues raised to date.  The panel discussion was very successfuland provided the Committee with the following guidance:
--There is strong interest in merging the Residential Purchase Agreement and the AREA EDITION Residential Purchase Agreements
--Many of the concepts used in the AREA EDITION form would be preferred in any revision.
--There is strong interest in revising the forms this year (October).

The Committee reports that in response to the level of interest in merging the forms and the number of comments received, a study group will be created to begin this process.

For the purpose of gathering additional input, the Committee recommends that the Regional Forum on Forms outreach program be expanded in number and that its focus be on issues related to the proposed revision to the residential purchase agreements.  The Committee recommends that Regional Forum on Forms be scheduled for the near future.  

The Committee further reports that the following standard forms will be revised/created for release in April 2002:
--Vacation Rental Agreement (first study group meeting occurred on January 22)
--Buyer-Broker Representation Agreements (BR, AAP & NAP) (first study group meeting occurred on January 23)
--Non-Agency Agreement
--Notice of Non-Responsibility

The Committee has reviewed and discussed the Issue Briefing Paper addressing Non-C.A.R. Form Libraries in WINForms and recommends that a policy and procedure be established to create an approval process for the inclusion of non-C.A.R. forms as add-on libraries in WINForms.  The Committee further recommends that the policy be created by a study group of the Standard Forms Advisory Committee.  Until a policy is created, the Committee recommends that C.A.R./REBS not enter into any new agreements for non-C.A.R. forms add-on libraries in WINForms.

POLITICAL

CREPAC Trustees 
1. It was reported for information only that, in conjunction with IMPAC, CREPAC will request the standard funding from the "Political Activities Fund" (PAF) for the 2002 C.A.R. fundraising recognition receptions in an amount up to $130,000 (consistent with request last year.)  The C.A.R. fundraising recognition receptions for 2002 include: (1) May "Congressional Reception" at the N.A.R. Washington D.C. Meetings; (2) June "Capitol Reception" the evening of C.A.R. Legislative Day in Sacramento; (3) Year-end "Golden R" Reception at the C.A.R. Board of Directors meetings; and (4) Potentially an additional fundraising recognition reception for C.A.R./Golden "R" donors IF additional problems with N.A.R. recognition rules were to occur. 
2. It was reported for information only that in order to encourage maximum political participation and attendance at the 2002 C.A.R. June Legislative Day Meetings in Sacramento, CREPAC has continued to approve the use of local BORPAC funds for travel costs to send non-C.A.R. Directors to this meeting only. 
3. It was reported for information only that the attendance policies for the 2002 C.A.R. major fundraising recognition receptions are as follows: 
--The C.A.R. Washington D.C. Congressional Reception in May: Non-REALTOR® guests may attend this reception only without being 2002 CREPAC/Federal "99" Club contributors due to the extensive costs and time commitment associated with traveling to these meetings in Washington, D.C.  More information about specific dates and times will be forthcoming.
--The C.A.R. Capitol Reception in Sacramento is scheduled for the evening of Legislative Day, Wednesday, June 5^th. This event is meant to thank those who contribute financially to C.A.R.'s political programs. Therefore, admission to the 2002 Capitol Reception will continue to be FREE OF CHARGE to current year CREPAC "Champion Club," "Golden R" and "CREPAC/Federal Presidents Circle" Members (NOTE:  President Circle Members MUST BE current year (2002) contributors to the "CREPAC/Federal 99 Club" for FREE OF CHARGE admission to the reception.) Finally, those who are not REALTORS® or Local Association staff who wish to attend the reception as guests must pay a $49 admission fee. 

IMPAC Trustees 
1. It was reported for information only that the IMPAC Trustees approved the following contributions:
--C.A.R.--Lot Line Adjustment Legislation Legal Expert...Up to $5,000
--Civil JusticeAssociation of California (CJAC)...$15,000
--Pacific Legal Foundation (PLF)...$12,500
--Rent Control Advocacy, pursuant to the request of the Oakland Association of REALTORS...Up to $25,000, contingent upon matching funds.

Political Activities Fund
1. It was reported for information only that in 2001, the PAF allocated funds to retain a communications consulting firm to develop a comprehensive Member Education campaign, designed to better educate C.A.R. members about the benefits they receive from the association's Governmental Affairs efforts.  In the first year C.A.R. conducted a benchmark survey, designed a pilot program, conductedfocus groups to better define messages, and implemented that program in seven targeted association areas.  Based on the benchmark survey and the focus groups the main theme was chosen: "C.A.R.'s Government Affairs Team -- You fight for your clients. We fight for you."  Underlying themes focused on C.A.R. successes in the following areas: 
--Protecting REALTORS from increased liability; 
--Protecting the transaction from unnecessary interference; and -
--Ensuring that the Transfer Disclosure Statement isn't subjected to frivolous changes.

After the pilot project was concluded, a final survey was conducted in November 2001 to measure the pilot's success.  
--86% of respondents now have a very favorable or somewhat favorable opinion about how C.A.R. performs its governmental and legislative affairs activities.  Up from 53% in the first survey! 
--Increases were particularly dramatic for agents and women. 
--83% of women had a very favorable or somewhat favorable opinion vs. 34% in the 1st survey; and 
--81% of agents had a very favorable or somewhat favorable opinion vs. 33% in the first survey.

The Political Activities Fund Committee, after reviewing the results of the pilot project, has allocated up to $365,500 to implement the Member Education Campaign statewide in 2002.

2. It was reported for information only that the PAF Committee allocated a total of $244,550 to enhance C.A.R.'s existing Member Mobilization program in 2002.  The enhancement will allow C.A.R. to provide more training to key volunteers and local staff; dramatically increase REALTOR participation in the Legislative Liaison program; strengthen C.A.R.'s ability to mobilize through increased use of technology and by strategically organizing in every legislative district in the state; implement a significantly enhanced outreach program; better evaluate local associations' ability to respond to local issues and assist them in developing successful government affairs programs; and continue to enhance and increase participation in Legislative Day.

3. It was reported for information only that the Political Activities Fund will continue to contribute to state and local IMPAC accounts in the same manner as it did in 2001.

Political Affairs
1. That a pin recognition award be created for all members who contribute $49 to Political Survival.  This is to help recognize the thousands of valued donors who may not be thanked at the local level and who could benefit from receiving a contact and message from their State Association.

2. It was reported for information only that the committee approved a newly designed pin for the California Golden R program.  This will ensure there is no confusion with the current $5000.00 NAR Golden R pin yet recognize the new $1500.00 California donors.

3. It was reported for information only that C.A.R. President Robert Bailey and the Political Affairs Committee challenge all C.A.R directors to contribute $197.00, "The True Cost of Doing Business," and to raise a total of $2,200,000.00 for 2002 by December, 2002.

OPERATIONS

C.A.R. Scholarship Foundation 
1. It was reported for information only that various scholarship awards were given by the Trustees, and that funds were being raised for scholarships in memory of C.A.R. Past Presidents Jerome Blank and Tim Corliss.

California REALTOR EXPO Advisory 
1. It was reported for information only that the California REALTOR EXPO 2002 will be held in Long Beach from October 8 - 10, 2002.

Communications Advisory
1. It was reported for information only that the Communications Advisory Committee is reviewing the results of a test marketing campaign differentiating between REALTORS and other licensees, and that a recommendation will be made to the Strategic Planning and Finance Committee regarding the potential conduct of a statewide effort.

Executive 
1. That a resolution of grateful appreciation to Gary Thomas, 2001 C.A.R. President, be approved.
2. That a resolution recognizing the contributions of Ted Loring, Humboldt County Association of REALTORS®, 2001 recipient of the California Distinguished REALTOR® Award be approved.
3. That the following 2002 Presidential Appointments be approved: a) Executive Committee, b) Directors at Large, and c) Trustee Groups (on terms):

2002 EXECUTIVE COMMITTEE
Robert J. Bailey, Santa Cruz, President
Toby Bradley, Santa Barbara, President-Elect
Jim Hamilton, South Bay, Treasurer
Jim Antt, Bakersfield
Phyllis Carmichael, Silicon Valley
Allen Chiang, Rancho Southeast
Pamela Foley, Santa Clara County
Sandy Haney, Monterey
Rick Hoffman, San Diego
Jimmy La Peter, Pacific Southwest
Heidi Rickerd-Rizzo, Marin County
Joel Singer, LosAngeles, Ex-officio
Jeff Sposito, Contra Costa
Gary Thomas, Orange County
Sandy Weisberg, Southland Regional
Leah West, Plumas County
Suzanne Yost, Santa Cruz

2002 DIRECTORS AT LARGE
George Arce, Jr., No. California Commercial
Joe Barnett, Palos Verdes Estates
David Baumgartner, San Benito
Mark Dilbeck, Pasadena-Foothill
Les Fishman, Palos Verdes Peninsula
Renee Grubb, Santa Barbara
Diane Harris, South Bay
Mary Hall, Conejo Valley
Terri Jamison, Tehama County
"L.J." Jennings, Oakland
Janene Klocek, Yucaipa 
Brian Malone, Glendale
David Moyers, Palos Verdes Peninsula
Art Nellessen, Humboldt County
Karen O'Brien, Rim O' The World
Maryam Shabazz, MercedCounty
Mike Silvas, North Bay
Bettye Sutton, Lompoc Valley
Tammy Dee Warner, Amador County
Kathleen O. Weaver, Watsonville

2002 COMMITTEE/TRUSTEES - NEW APPOINTEES

Legal Action Fund Trustees
Term ending November 2006
Kevin Walsh, Amador County

C.A.R. Scholarship Foundation Trustees
Term Ending November 2006
Salvatore Buccieri, Southland Regional
Emily Link, Southland Regional

Membership
1. That the following applicants be granted C.A.R. Honorary-Member-For-Life status:

Beverly Hills/Greater Los Angeles AOR
Sari Kasner
Alfred McKool

Bay East AOR
Richard Furrer

Central Valley AOR
Luetta Carlson

Glendale AOR
Frank Bullock

Greater Antelope Valley
Charles W. Snodgrass

Inland Valleys AOR
Richard B. Robinson

Monterey County AOR
Lamar Blair
Beverly Brownell
Kenneth Bullock
George East
Phillips "Red" Elmer
James "Jimmy" Mah
Majid Mahroom
Arden "Art" Marett
Victor Noble
Barton "Bart" Seever
Rose Silva

North Bay AOR
Chris Iverson

Orange Coast AOR
William Crawford

Orange County AOR
Vernice "Si" M. Grim
William A.F. Hill
Helen R. "Ruth" Holman
Avenell "Valorie" Korn

Pasadena Foothills AOR
John Carr

Sacramento AOR
Dorothy Johnson
Marjorie Schroeder
ME Budd Shirley
Betty A. Vaden

Santa Maria AOR
Larry Lake
Bea Vallozza

Silicon Valley AOR
Freda Carman

South Bay AOR
Arthur Lee Conley

Southland Regional AOR
Steve Raynor

Southwest Riverside AOR
John R. McKinney
James Storti

Sutter-Yuba AOR
Rose Mary Triplett

Tri Counties AOR
Roy McKinley Haber

Ventura County Coastal AOR
Virginia Hersey

2. That the following C.A.R. members be approved for Honorary Member for Life status with CAR dues being waived beginning January 2002:

Santa Clara County AOR
Thomas McCarrick  
William Hallett 

San Francisco AOR
Loreta Anderson 
Mary Brown 
George Goodwin 
Charlie Lum 
William Nelson 
Lillie Wong 

3. It was reported for information only that a working group consisting of Membership Committee members be appointed to investigate the pros and cons of rules regarding primary and secondary membership and that a report be prepared for the Membership Committee's June Meeting.

N.A.R. Directors Forum 
1. That C.A.R. support an NAR Bylaws change to add NAR Committee Chairmen as NAR Directors for the term of their chairmanship.

Further, C.A.R., in cooperation from other supporting state associations, develop a presentation strategy for implementation of the proposed Bylaws change to the NAR Directors, and more importantly, the delegate body who will be the deciding voting body.

Strategic Planning and Finance
1.That the Association's Financial Statements as of November 30, 2001 be approved:

The Statement of Income and Expenses by program for the eleven months ending November 30, 2001.

Total C.A.R.
--Revenue of $14,383,200
--Expenses of $12,392,000 (including federal income tax).
--An excess of income over expenses of $1,991,200

Political Activities Fund 
An excess of income over expenses of $391,100.

Issue Action Fund 
An excess of income over expenses of $520,000

The C.A.R. Balance Sheet as of November 30,2001
--Total assets of $19,839,500 (of which $10,208,400 are current assets).
--Total liabilities of $1,653,800 (of which $1,512,100 are current liabilities).
--C.A.R. Fund Balance of $18,185,700.

2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2001 be approved:

Total C.A.R
--Revenue of $14,709,900
--Expenses of $14,174,500 (including federal income tax)
--An excess of income over expense of $535,400

Political Activities Fund
An excess of income over expenses of  $226,100. 

Issue Action Fund
Anexcess of income over expense of $448,500.  This amount will be allocated to IMPAC as approved by the Directors.

3. That the Check Signing Policies for C.A.R., the C.A.R. Scholarship Foundation and all C.A.R. sponsored PAC's be approved as presented.

OTHER

1. That the multiple region resolution on changing the C.A.R. June meeting date to April or May be referred to the Strategic Planning and Finance Committee for its consideration; and that the SPF Committee report its recommendations on this matter to the Directors by the June 2002 Meeting.