CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
JANUARY 24 - 25, 2003
The following is a summary of the significant action items approved by the
CALIFORNIA ASSOCIATION OF REALTORS®Board of Directors at its
January 2003 meeting. Some additional information items are included,
but donot necessarily represent Association policy. A complete set of
minutes is available for review upon request. For more information
please contact Pauline Avila
Insurance Availability Task Force
1. That C.A.R. adopt as a policy goal for the Association to:
Seek to achieve the availability of a fully bound, fairly priced and fairly
underwritten property insurance policy within the time frame of a normal
Implementation of this policy goal should include:
- Improvements in REALTOR® education and training regarding the
purchase and application of property insurance, the correction of errors in
claims histories, and the need for early application for coverage.
- Changes in insurance claims reporting so that mere inquiries of an
insurer are not treated as a claim.
- Negotiation with the insurance industry andinsurance regulators between
Board of Directors meetings on issues such as new insurance products,
expansion of the California FAIR Plan, insurance pricing, and the insurance
application process in order to achieve those goals.
- That the task force continue to meet after January.
Lockbox Task Force 1. It was reported for information only that C.A.R. will meet with
Supra to air the grievances of California local Associations, MLSs and
members, and to try to facilitate aglobal solution to the current lock box
situation. The C.A.R. officers will designate the appropriate
representatives to meet with Supra.
Property Information/MLS Task Force 1. That C.A.R. appropriate up to $700,000 to establish phase II of
the Intelligent Agent Application Development Project.
Housing Affordability 1. That C.A.R. co-sponsor a bill
permitting a low and moderate income housing development of 100 units or
less that is in full compliance with all of the local government
development and zoning laws shall be a ministerial act and not be subject
to a local government hearing process unless a real party at interest
disputes the conclusions of local government staff.
Land Use and Environmental
1. That C.A.R. "OPPOSE" legislation which simply establishes fixed terms
for members of the California Coastal Commission, and that C.A.R. "SUPPORT"
the following: - A change in the make up of the Commission membership that gives the
Governor a majority of the appointments and creates fixed, staggered terms
for the members; and,
- Reasonable reforms to the Coastal Act that include curbing the appeals of
local government decisions and enhancing due process provisions.
Legal Action Fund 1. It was reported for
information only that the United States Supreme Court has unanimously and
favorably decided Holley v. Meyer, the fairhousing case. Overturning
the Ninth Circuit Court of Appeal, the court said it did NOT agree that it
should hold every corporate supervisor personally liable without fault for
the unlawful act of every corporate employee whom he or shehas the right to
supervise. The Court said the Fair Housing Law should be treated
like a tort and apply the usual common law agency principles of vicarious
liability. This means a real estate firm itself is still responsible
for the acts of its salespersons but there needs to be something more for a
corporate broker officer or corporate owner to be held individually
The high court did leave the door open, however, for the Ninth Circuit to
decide whether other aspects of the California broker relationship, when
added to the right to control, establish the necessary relationship to hold
the corporate broker liable. This will go back to the lower court to
decide but would be limited by traditional legal principles and the general
common law of agency. Finally, the court acknowledged that in the
appropriate case a "piercing of the corporate veil" could reach the
This is a great victory but it is not quite over until
the Ninth Circuit Court of Appeals resolves the remaining issues.
Further, brokers should still, of course, fulfill their duty of supervision
under the California Real Estate Laws and aggressively train agents about
compliance with the Fair Housing Laws.
1. That C.A.R. amend its sponsored arbitration legislation to limit the
scope of local association arbitration programs to "non-consumer" dispute
arbitrations, if acceptance of such an amendment is necessary to avoid
opposition to the sponsored legislation which exempts local association
programs from the burdensome California rules that are inconsistent with
N.A.R. program confidentiality requirements.
2. It was reported for information only that Staff has been directed
to prepare background materials on REALTOR®-specific strategies for
workers' compensation reform.
Property Management 1. That C.A.R. "OPPOSE" AB 18 (Leno), a bill that will allow local
government to adopt different landlord/tenant laws than existing state
1. That relief from the 3-1/3% real estate withholdingfor individuals is
not sufficient to justify withholding on either primary residences (where
there is taxable gain), or corporate entities.
2. It was reported for information only that the Committee has directed
staff to seek repeal of the 3-1/3% withholding for California residents,
MLS/Computer and Business Technology 1. It was reported for
information only that a pre-existing workgroup of the MLS/Computer and
Business Technology Committee will develop a formal set of policy
recommendations for consideration by the N.A.R. VOW workgroup at their next
meeting scheduled for February 10, 2003. The C.A.R. workgroup will
consider feedback and comments provided to them by the MLS/CBT Committee in
forming their recommendations and seek C.A.R. officer final approval.
Professional Standards 1. It was reported for information only that the Professional
Standards Committee recommended to the Legislative Committee that C.A.R.
accept amendments to its sponsored legislation that will limit the scope of
local association arbitration programs to "non-consumer" dispute
arbitrations, if acceptance of such an amendment is necessary to avoid
opposition to the sponsored legislation exempting local association
programs from burdensome California rules that are inconsistent with NAR
program confidentiality requirements.
2. It was reported for information only that at the Professional Standards
Committee meeting there was a lengthy discussion about Standard of Practice
3-4 of the NAR Code of Ethics, and the obligations it imposes on REALTORS®
to disclose dual and variable rates of commission. The San Diego
Association of REALTORS® proposed that C.A.R. take action to make a formal
recommendation to NAR to revoke SOP 3-4. After considerable debate,
the Professional Standards Committee decided to take no action.
Standard Forms Advisory 1. It was reported for information only that the Standard Forms
Advisory Committee received reports from its regional representatives that
the training and acceptance of the new RPA-CA has been very successful and
well received. To date, over 25,000 members have been trained by the
C.A.R. attorneys. Thousands more have been trained by local
associations, private instructors and individual firms.
The Committee further reports that a study group will be
created to review sixteen different forms in the Residential Property
Management and Landlord/Tenant categories, scheduled for revision in April
The Committee will also appoint a study group to make recommendations on
the possible translation and appropriate use of C.A.R. disclosure forms
The Committee received a report from the Insurance Task Force. The
Committee believes that the three references to insurance availability in
the RPA-CA and the detailed reference in the BIA, paragraph 11,
sufficiently address this issue. At this time, the Committee
believes insurance availability is an educational issue that C.A.R.
Leadership may want to address through a member outreach program.
CREPAC Trustees 1. It was reported for information only that the CREPAC Trustees
transferred $260,000 to RPAC from the CREPAC/Federal account toward
California's 2003 "Fair Share Goal" of $517,000.
2. It was reported for information only that CREPAC is
requesting the standard funding from the Political Activities Fund (PAF)
for C.A.R.'s fundraising recognition receptions for 2003 including: (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)
October Year-End Golden R Reception at the C.A.R. Board of Directors
3. It was reported for information only that in order to encourage maximum
political participation and attendance at the 2003 C.A.R. 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
IMPAC Trustees 1. It was reported for information only that the State IMPAC Trustees
approved the following contributions:
-Pacific Legal Foundation (PLF)--for its Property Rights Defense Fund,
which helps establish favorable legal precedent to reinforce the
constitutional protections of private property rights...$15,000.
-Civil Justice Association of California (CJAC)--for annual C.A.R.
membership on this statewide association, which is dedicated to reforming
California's liability laws and the civil justice system...$15,000.
-Civil Justice Association of California (CJAC) -- for a media campaign to
garner legislative support for the reform of the state Unfair Competition
Law (Business and Professions Code Section 17200), which is being used by
private attorneys to extort settlements from REALTORS®and
others doing business in California...$2,500.
-Property Owners for Property Rights Protection (pursuant to the request of
the Glendale Association of REALTORS®) -- to help qualify a private
property rights/anti-rent control initiative for the local ballot in the
City of Glendale...$15,000.
Political Affairs 1. It was reported for information only that the Political Affairs
Committee's 2003 goal is 35% participation by all REALTORS® in Political
C.A.R. Scholarship Foundation 1. It was reported for information only that funds were being raised
for scholarships in honor of California Distinguished REALTOR®Carolyn D'Agosta, and in memory of C.A.R. Staff Member Kelly
EXPO Advisory 1. It was reported for information only that the California
REALTOR®EXPO 2003 will be in San Diego from September 30 to
1. That the following 2003 Presidential Appointments be approved: a)
Executive Committee, b) Directors at Large, and c) Trustee Groups with
multiple year terms
2003 EXECUTIVE COMMITTEE
Toby Bradley, Santa Barbara, President
Ann Pettijohn, Pacific West, President Elect
Jim Hamilton, South Bay, Treasurer
Robert J. Bailey, Santa Cruz
Aida Dimejian, Pasadena-Foothills
Eleanor English, Citrus Valley
Ron Gates, Silicon Valley
Richard Genari, Greater Antelope Valley Jeanette Henderson, Pasadena-Foothills
Allen Okamoto, San Francisco
Bill Plattos, Orange County
Steve Rosco, Pacific West
Joel Singer, Los Angeles, Ex-officio
Leo Saunders, Contra Costa
Mike Teer, Inland Valleys
Patty Tunnicliffe, Santa Barbara David Zigal, San Mateo County
DIRECTORS AT LARGE - 2003
1. Carol Banner, Rim O' The World 2. David Baumgartner, San Benito 3. Ann Bracci, Alameda 4. Barry Burnett, Burbank 5. John
Cashman, Berkeley 6. John Cribb, San Luis Obispo 7. Jackie Crowley, Palos Verdes
Peninsula 8. Sandy Darling, Fresno 9. Les
Fishman, Palos Verdes Peninsula 10. Greg Galli, Greater Antelope Valley 11. Mindy Hart, Alameda 12. L.J. Jennings, Oakland 13. Judith Kritz, Rim O' The World 14. Kay LeMenager, East San Diego 15. Sandy Mays, Shasta 16. Marlene Moser, Sacramento 17.Lynn Miller-Byford, Paso Robles 18. Frank Taylor, Ventura County Coastal 19. Anita Thede, Berkeley 20. Kevin Walsh, Amador County
2003 COMMITTEE/TRUSTEES - NEW APPOINTEES
LEGAL ACTION FUND TRUSTEES
Term ending November, 2007
Carolyn D'Agosta, No. San Diego County
Ted Loring, Humboldt County
SCHOLARSHIP FOUNDATION TRUSTEES
Term ending November, 2007
Diane Harrison, Contra Costa
2. That a Resolution of Grateful Appreciation to 2002 C.A.R. President
Robert J. Bailey be approved.
3. That a Resolution of Grateful Appreciation to Carolyn D'Agosta, 2002
California Distinguished REALTOR® Award Recipient, be
Housing Affordability Fund 1. That the Housing Affordability Fund be authorized to make awards
-Individual award disbursements shall not exceed 10% of the total existing
fund without approval of the Board of Directors
-Total annual disbursements shall not exceed 25% of the total fund without
approval of the Board of Directors
-Awards in excess of these guidelines shall be approved by the Board of
Directors, or the Leadership Team when the award request is more than 30
days prior to a Board of Directors meeting.
Membership Committee 1. That the following applicants be granted C.A.R.
Beverly Hills/Greater Los Angeles AOR
Karen L. E. von Unge
Citrus Valley AOR
Joanne J. DeRidder
Frank C. Long
Rose Ellen Weber
Orange County AOR
Patricia Anne Bauer-Nuckols
Pacific Southwest AOR
Marshall (Ty) Robert Compton
Aubert Vincent (Vince) Davies
Loyola E. Morgan
Pacific West AOR
Palos Verdes Peninsula AOR
George E. Moll
San Mateo County AOR
Santa Clara County AOR
Edward T. Morioka
Santa Ynez Valley AOR
Thomas A. Bohlinger
Yosemite Gateway AOR
Strategic Planning and Finance
1. That the Statement of Income and Expenses by program for the
eleven months ending November 30, 2002 be approved.
- Revenue of $18,602,200
- Expenses of $14,495,900 (including federal income tax).
- An excess of income over expenses of $4,106,300
Political Activities Fund
An excess of income over expenses of $373,500.
Issue Action Fund
An excess of income over expenses of $528,700
The C.A.R. Balance Sheet as of November 30, 2002
- Total assets of$22,854,700 (of which $14,790,600 are current
- Total liabilities of $3,470,800 (of which $3,424,400 are current
liabilities) - C.A.R. Fund Balance of $19,383,900.
2. That the Projected Statement of Income and Expensesby program for the
year ending December 31, 2002 be approved.
- Revenue of $18,904,100
- Expenses of $16,666,100 (including federal income tax)
- An excess of income over expense of $2,238,000
Political Activities Fund
An excess of income over expenses of $330,800
Issue Action Fund
An excess of income over expenses of $450,000. This amount will be
allocated to IMPAC as approved by the Directors.
3. C.A.R. Check Signing Policy: That the following
persons be approved as authorized signers for checks in conformity with the
Checks under $10,000, and for the payment of withholding taxes or
transfer of funds from one Association account to another regardless of
amount, shall be signed:
- Using the facsimile signature of Joel S. Singer
- By any two (2) of the following Association staff members authorized to
execute checks by the Board of Directors: Joel S. Singer, Heather Langford,
Helen Parrino, Lisa Edwards or Mary Martinez.
Checks of $10,000 or more shall be signed:
- By one (1) officer of the Association
- Using the facsimile signature of the Executive Vice President/State
Secretary OR one (1) of the following staff members authorized to execute
checks by the Board of Directors, provided, however, if the Executive Vice
President/State Secretary signs the check as an officer of the Association,
heor she may not sign checks hereunder as an authorized staff member: Joel
S. Singer, Heather Langford, Helen Parrino, Lisa Edwards or Mary
4. That C.A.R. waive state dues for members (including their spouse) of the
Association called into active and reserve duty.
Future Meetings Working Group
1. It was reported for information only that the Future Meetings Working
Group will continue to study the feasibility of changing the dates of
future Legislative Day meetings.
Awards and Recognition
1. President Toby Bradley presented REALTOR®Myra Goldwater
with the first Federal District Coordinator Emeritus Award for her years of
dedicated service to organized real estate.
2. Butch Grimes, President of the California Association of Real Estate
Brokers, presented special resolutions of appreciation to President Toby
Bradley and Immediate Past President Robert Bailey.