CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
506^th SESSION
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 at paulinea@car.org.

SPECIAL REPORTS

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 escrow.

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.


PUBLIC POLICY

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 liable. 

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 corporate owner.

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.

Legislative
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 law.

Taxation
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, when appropriate.


BUSINESS

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 2003.

The Committee will also appoint a study group to make recommendations on the possible translation and appropriate use of C.A.R. disclosure forms into Spanish.

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.


POLITICAL

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 meetings.

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 only.

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 Survival.


OPERATIONS

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 Braden.

California REALTOR®  EXPO Advisory
1. It was reported for information only that the California REALTOR® EXPO 2003 will be in San Diego from September 30 to October 2.

Executive
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 approved.

Housing Affordability Fund
1. That the Housing Affordability Fund be authorized to make awards as follows:
-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. Honorary-Member-For-Life status:

Beverly Hills/Greater Los Angeles AOR
Joey Baker
Karen L. E. von Unge

Citrus Valley AOR
Joanne J. DeRidder

Glendale AOR
Frank C. Long
Ila Wareham

Laguna BOR
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
Bob Spangler

Palos Verdes Peninsula AOR
George E. Moll
Bill Weldon

San Mateo County AOR
Lea Dunlap

Santa Clara County AOR
Manuel Montes
Edward T. Morioka

Santa Ynez Valley AOR
Thomas A. Bohlinger

Watsonville AOR
William Burgstrom

Yosemite Gateway AOR
Everett Stephens

Strategic Planning and Finance
1. That the Statement of Income and Expenses by program for the eleven months ending November 30, 2002 be approved.

Total C.A.R.
- 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 assets)
- 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.

Total C.A.R.
- 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 C.A.R. Bylaws:

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
OR
- 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
AND
- 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 Martinez.

4. That C.A.R. waive state dues for members (including their spouse) of the Association called into active and reserve duty.


OTHER

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.