SUMMARY OF ACTION ITEMS
CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
June 14, 2001

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2001 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.

SPECIAL REPORTS 

Electronic Commerce Task Force 
It was reported for information only that the E-Commerce Task Force accomplished the following: created a transactional flow chart to usein analyzing E-Commerce applications; and recommended C.A.R. sponsorship of E-Notary and E-Recording legislation that became AB 700 (Simitian) and SB 407 (Sher).

The E-Commerce Task Force made the following recommendations at its final meeting:
-- That C.A.R. not take a position in the "opt in -- opt out" privacy legislation, except to guard against restrictions on access to public records and restrictions on REALTOR® practice, consistent with existing policy.
-- That the Strategic Planning and Finance Committee should have a strong proactive E-Commerce component in its planning efforts, and take care to preserve the "knowledge base" created as part of the Task Force efforts.
-- That the Risk Management Advisory Committee should consider creating a guide for REALTORS® regarding "operational" issues. A comprehensive guide publication may be necessary.
-- That C.A.R. provide approved logos, marks and disclosures (e.g. fair housing) on-line in a user-friendly format for REALTORS® to use in their web activities.

Energy Crisis Task Force 
It was reported for information only that C.A.R. has supported several energy crisis related bills in the Legislature, including bills which:
-- Establish energy conservation incentive programs.
-- Streamline the permit process for siting new plants, and repowering existing ones.
-- Investigate ways to reduce peak energy use in existing buildings.
-- Provide a tax credit for the purchase and installation of alternative energy equipment.
-- Provide a property tax incentive for local governments who permit and site new power plants in their areas.
-- Provide an exemption from property tax reassessment for owners who retrofit their properties.
-- Require any local utility user's tax to be based on the per-unit of usage instead of the total cost of the bill.
-- Provide funding to upgrade existing transmission systems.
In addition, at the recommendation of Energy Crisis Task Force, C.A.R. is generating and disseminating information to its members about how REALTORS® can help with the energy crisis by conserving at their homes and businesses.

PUBLIC POLICY

Housing Affordability 
That C.A.R. adopt an "OPPOSE UNLESS AMENDED" positionon any 2002 housing bond measure. The amendments C.A.R. seeks would: 1) set aside $75 million to capitalize the California Housing Loan Insurance Fund (CaHLIF); 2) set aside $15 million for the State Residential Security Deposit Guarantee Program, and; 3) separate CaHLIF from the California Housing Finance Agency (CHFA).

Land Use and Environmental 
That C.A.R. "OPPOSE" AB 857 (Wiggins), a bill that deletes the requirement in current law that the Environmental Goals and Policy Reportbe prepared by the state, and replaces it with a requirement that the state prepare a State Comprehensive Plan containing a 20-year vision for the state based on specified land use and environmental provisions.

That C.A.R. "OPPOSE" AB 924 (Wayne), a bill that authorizes cities and counties to prepare regional cooperative plans that must contain specified "rational planning" principles.

That C.A.R. "SUPPORT" ACA 8 (Keeley), a measure that amends California's Constitution to create the California Water and Land Protection Trust Fund in the State Treasury to provide more consistent policy and stable funding for the purchase, operation, maintenance and restoration of land, from willing sellers, for habitat and natural communities, agricultural land, scenic open space, and park and recreational areas.

Legal Action Fund 
It was reported for information only that the Legal Action Fund was participating in or closely watching several important legal cases, including Galland v. Clovis,Leko v. Cornerstone, Nippon Bank v. 1333 N. California Blvd., National Amusements v. Omar Al-Midani, and Marine Forests Society v. California Coastal Commission.

Legislative 
That C.A.R. "OPPOSE" SB 189 (Bowen) UNLESS AMENDED TO: A. Require law enforcement and / or Department of Toxic Substances Control to give notice of an arrest or clean up, in connection with the release of an illegal controlled substance or a precursor of a controlled substance defined in Health and Safety Code section 11007, to a property owner. Only the receipt of that notice constitutes the actual knowledge of the law enforcement action, and triggers a disclosure obligation. The notice shall include language directing the owner selling the property to check item I C 1 of the TDS, or if renting the property to provide a copy of the notice to the prospective tenant.
B. Provide that giving the notice to a prospective tenant or the disclosure in the TDS is legally adequate to inform the recipient and no additional disclosures are required.
C. The bill will not include a change to the TDS, nor will it avoid the need to disclose actual knowledge of contamination acquired by independent means.

Local Governmental Relations 
That C.A.R. "SUPPORT" legislation that would permit local governments to collect a security deposit and an advance payment of fees if tenants are to pay for garbage collection to that government. That local government would also be required to provide clear notice to landlords that his or her tenant is delinquent in the payment of any garbage fee or charge.

Manufactured Housing 
It was reported for information only that C.A.R. "FAVOR" AB 1328 (Briggs), which would have allowedmobile home park management to charge prospective homeowners an application fee up to $30.

Property Management 
That C.A.R. adopt an "OPPOSE UNLESS AMENDED" position on SB581 (Alarcon), a bill that would require all residential landlords to register with the county assessor and which subjects landlords to a misdemeanor punishable by up to a year in jail for failure to comply. The amendment would limit the provisions of the bill to slumlords.

That C.A.R. "OPPOSE" AB422 (Diaz), a bill that provides that a building or portion thereof in which a lead hazard exist is substandard building.

That C.A.R. "SUPPORT" AB284 (Jackson), a bill that would establish a public program at the Dept. of Health Services (DHS) to address the public health threats of mold.

That C.A.R. "FAVOR" AB472 (Cedillo), a bill that makes several changes in law regarding receiverships to reduce slum housing and create a tenant relocation trust fund to assist displaced tenants.

Real Estate Finance 
That C.A.R., in conjunction with N.A.R., work with the Department of Veterans Affairs to eliminate the two-year work requirement for VA home loan borrowers.

That C.A.R. adopt the following policy:
Predatory Lending Policy
C.A.R. is opposed to predatory lending practices. Predatory lending practices are those involving fraud, deception or deliberate non-disclosure that results in loss of a borrower's equity.

Staff is directed to:
1. Prepare an approach for proactive legislation that prohibits predatory lending practices, as defined above, for consideration by the Board of Directors in October, that may be sponsored in conjunction with members of the Real Estate Leadership Summit in 2002; and,
2. Continue to oppose lending related legislation that is inconsistent with this standard. Examples of legislation inconsistent with this standard include legislation which would restrict access to credit for sub-prime borrowers or that would restrict an owners ability to use his or her own equity.

It was reported for information only that C.A.R. would pursue changes to the current FHA requirement that specifies a full month's interest on an FHA loan paid off at any point within a given month.

Taxation 
That state budgetary matters should not be ensconced within the state Constitution, meaning that the allocation formula and dedication of funds should be set in statute.

That C.A.R. "OPPOSE" ACA 9 (Dutra), which would provide constitutional protection for both the gasoline sales tax revenue shift and the current funding formula.

That C.A.R. "WATCH" a contingency-based return of Educational Revenue Augmentation Fund monies to local government, linked to housing.

It was reported for information only that C.A.R. would postpone the adoption of policy on S.424 (Feinstein) and HR 1669 (Thompson), the Earthquake Loss Reduction Act, until after further consideration by the Taxation and Federal Issues Committees at the October 2001 meetings.

BUSINESS

MLS/Computer & Business Technology 
That C.A.R. add the following language to C.A.R. Model MLS Rule 12.16 (the Internet Data Exchange ("IDX") policy): The MLS has the right to charge the costs of adding or enhancing its downloading capacity to Participants and Subscribers who request downloading of listing information.

That C.A.R. add the following rule to the C.A.R. Model MLS Rules: 12.16.1: Registry of Authorized Participants and Subscribers. The MLS has the right to require that Participants and Subscribers partaking in the display of MLS active listing information of other brokers' listings pursuant to Section 12.16 register with the MLS before displaying said MLS active listing information.

Professional Standards 
That C.A.R. adopt a policy position favoring and actively encouraging the use of buyer broker agreements; and recommend that Strategic Planning and Finance include in their 2002 objectives the development of an outreach and other programs to actively promote the concept; and request the Education Department of REBS to actively highlight this concept as a major program and priority in educational courses.

It was reported for information only that the Draft Procuring Cause Issues Briefing Paper, containing Procuring Cause Guidelines, is approved for distribution to the local associations, their professional standards committees and their members for written comment, to be submitted to the Procuring Cause Working Group by no later than September 1, 2001; which comments shall be summarized by the Working Group and presented to the full committee at the October 2001 committee meeting, at which time the committee will consider the Procuring Cause Guidelines for approval.

Standard Forms Advisory 
It was reported for information only that the following forms have been tentatively identified for revision in October 2001:
--Exclusive Authorization and Right to Sell a Business (ACB)
--Business Opportunity Disclosure Statement (BODS)
--Business Purchase Agreement (BPA)
--Short-Term Commercial Lease or Month-to-Month Rental Agreement (CL)
--Intent to Exchange Supplement (ES)
--Exclusive Authorization and Right to Sell, Lease, Exchange or Option (ACI)
--Residential Listing Agreement (LA)

The Committee reports that in furtherance of its member outreach focus this year, the following Regional Forum on Forms meetings have been scheduled:
--San Diego Association of REALTORS® EXPO, April 26, 2001
--Southland Regional Association of REALTORS®, June 21, 2001
--Shasta County Association of REALTORS®, June 27, 2001
--Fresno Association of REALTORS®, June 28-29 2001
--East Bay Association of REALTORS® (Oakland, Bay East, Contra Costa, Alameda, Delta, West Contra Costa and Berkeley AORs jointly), date to be determined

The Committee further reports that standard form comments and suggestions, with the Committee's recommendations, will now be posted to C.A.R. Online and distributed at Forum on Forms meetings. January 2001 meeting comments and recommendations were handed out at the Forum on Forms meeting held June 7, 2001. Member response to this new practice has been very favorable.

POLITICAL

CREPAC Trustees 
1. It was reported for information only that the CREPAC Nominating Committee met on Wednesday, May 23, 2001, and selected the following individuals as nominees for CREPAC Trustee and CREPAC Alternate. Per the Bylaws, the following slate of candidates is duly noticed for approval in October 2001. Trustees serve fora three-year term. Alternates may be selected to fill the remainder of a vacant term during the year.

Nominees for CREPAC Trustee (in Region Order):
November 2001 - November 2004
Mike Braden, Region 02
John Scarborough, Region 12
Gregory J. Pawlik, Region17
David Moyers, Region 21
William E. Johnson, Region 24

Nominees for CREPAC Alternate (in Region Order):
November 2001 - November 2002
Paula Colombo, Region 03
Diane Hardie, Region 13
Terry Fenske, Region 15
Wendy Furth, Region 18
Stephen Goddard, Region 21
Melanie Hildebrand, Region 25
Ron Brownell, Region 29

It was reported for information only that $270,000 in CREPAC/Federal funds be contributed to the REALTORS® Political Action Committee (RPAC) of N.A.R.

IMPAC Trustees 
The IMPAC Nominating Committee met on Wednesday, May 23, 2001, and selected the following individuals as nominees for IMPAC Trustee and IMPAC Alternate. Per the Bylaws, the following slate of candidates is duly noticed for approval in October 2001. Trustees serve for a three-year term. Alternates may be selected to fill the remainder of a vacant term during the year.

Nominees for IMPAC Trustee (in Region Order):
November 2001 - November 2004
Dennis Mason, Region 2
Curtis Jenkins, Region 6
Brian Malone, Region 13
Richard Kato, Region 20
Evelyn Arnold, Region 22

Nominees for IMPAC Alternate (in Region Order):
November 2001 - November 2002
Richard Otterstrom, Region 17
Steve White, Region 18
Greg Haas, Region 19
Dennis Pantano, Region 25
Mark Marchand, A.E., Region 30
Liz Anderson-Fitzgerald, Region 32

It was reported for information only that the IMPAC Trustees approved the following contributions:
-- Huntington Beach Private Property Rights Act, an anti-rent control, anti-price control measure, pursuant to the request of the Orange County Association of REALTORS...$50,000
(NOTE: This local Association is also authorized to conduct an Interboard Solicitation of local IMPAC funds.)
-- Civil Justice Association of California (CJAC), for annual membership supporting tort reform...$15,000
-- Travel expenses for ten REALTORS to attend the HOPE Awards in Washington D.C. in October, sponsored by the National Association of REALTORS and others, to promote minority homeownership...$10,000

Political Affairs Advisory 
That the 2002 "Political Survival" suggested voluntary contribution amount continue to be set at $49.00 and collected on the C.A.R. dues billing statement (no change from 2001). Second, that the 2002 "CREPAC Champion Club" suggested voluntary contribution amount to be set at an additional $49.00 (when combined with the $49.00 from "Political Survival" totals $98.00 and is no change from 2001). "CREPAC Champion Club" would continue to be raised throughvolunteers, direct mail, telemarketing and all other fundraising means. Third, that the 2002 "CREPAC/Federal 99 Club" suggested voluntary contribution amount continue to be set at $99.00 (no change from 2001). Lastly, that the distribution formula be setas follows for political monies raised from the 2002 "Political Survival" and "CREPAC Champion Club" Fundraising programs of C.A.R. (the 2002 Distribution Formula continue to be used in conjunction with the "PAF" as enacted and presently in use in 2001):

 

2002 Distribution Formula (Personal Contributions)	Current 2001 Distribution Formula (Personal Contributions)
15% to CREPAC/Federal 15% to CREIEC 70% to CREPAC/BORPAC (Split: 60% to CREPAC State/ 40% to Local BORPAC)	15% to CREPAC/Federal 15% to CREIEC 70% to CREPAC/BORPAC
(Corporate Contributions)	(Corporate Contributions)
15% to CREIEC 85% to CREPAC/BORPAC (Split: 60% to CREPAC State/ 40% to Local BORPAC)	15% to CREIEC 85% to CREPAC/BORPAC (Split: 60% to CREPAC State/ 40% to Local BORPAC)

Note: The money for local and state IMPAC accounts that was collected in 2000 from the Political Survival and CREPAC Champion Club programs will continue to be allocated, replaced and distributed by the Political Activities Fund to local IMPAC accounts as approved in 2000 and presently used (no change from 2001).

That the Political Affairs Advisory Committee adopt a standard committee structure, including Regional Representation, to further communication, education and fundraising; and that the committee return to its previous name "Political Affairs Committee."

OPERATIONS

California REALTOR® EXPO Advisory 
It was reported for information only that the California REALTOR EXPO 2001 would be held on October 17 and 18, 2001 in San Diego. The theme is "Power Up." A pre-EXPO technology day will occur on Tuesday, October 16.

Executive 
That the Property Information/MLS Task Force be established, and that the proposed task force Mission Statement read as follows

To develop strategies to reduce the cost of and optimize REALTOR® access to property information.
--The task force will examine current and future issues surrounding REALTOR® access to real estate information, from the creation of the listing information by the agent, to the digitization and delivery of comprehensive information in electronic form.
--Specific recommendations and standards may be developed to encourage the utilization of advanced technology to heighten the value, reduce costs and facilitate thesharing of listing information for the benefit of all California REALTORS®, and
--Assist MLS Boards of Directors throughout the state to fulfill their obligations to their participants, subscribers and shareholders while promoting cooperation in the sharing of property data across broad market territories.
The task force will report its preliminary recommendations to the Board of Directors by January 2002 and final recommendations by June 2002.

That the C.A.R. Bylaws amendments as noticed be approved.

That effective January 2002, the Tehachapi Area Association of REALTORS® (currently in Region 27) be assigned, per their request, to C.A.R. Region 12.

That Judy Mitchell (Placer County AOR) be appointed to fill a vacancy as a C.A.R. Scholarship Foundation Trustee, for a term ending November 2001.

Membership 

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

Arcadia AOR
Joel Quick

Beverly Hills/Greater Los Angeles AOR
Jeanne Dobrin

Citrus Valley AOR
George E.J. Baskerville
Arthur Bruce Wallace

Glendale AOR
Mary "Bette" Temple

Laguna Beach BOR
June Campbell

North San Diego AOR
Marjorie " Marje" A. Kelly
Ruth Parsons
Joe Tyndall

Orange Coast AOR
Dorothea "Dottie" Lewis

Oroville AOR
Opal Taylor

Pacific West AOR
James A. Edmonds, Jr.
Gwen Ferguson
|George R. Santy
Harry W. Lister

Pasadena-Foothills AOR
John Harris
Virginia Lance
Marion Lee
Irene Pritchard

Sacramento AOR
August Blanchard
Frederick Catania
Raymond Dissing
Jerry Konanz
Donald McNames
Frank R. Skover
Paul M. Starks

Silicon Valley AOR
Elmer Hawkins, Jr.

Southland Regional AOR
Jane Frankman
Irving Frankman

Sutter-Yuba AOR
Robert "Bob" H. Stevens

West San Gabriel Valley AOR
Michael L. Catalano
Roger P. Gosswein

Nominating 
That the following be designated to serve as N.A.R. Directors for a term ending November 2004:
Colleen Badagliacco, Santa Clara
Jeff Barnett, Silicon Valley
Sharon Bowler, Citrus Valley
William Brown, Bay East
Vince Malta, San Francisco
Leslie Munger, Pacific West
Deborah Ritchey, Berkeley
Gary Thomas, Orange County

Alternates (priority order)
Toby Bradley, Santa Barbara (will fill a 1 year vacancy in November 2001)
Jim Hamilton, South Bay (will fill a 2 year vacancy in November 2001)
Richard Rosenthal, Beverly Hills/Greater Los Angeles
(will fill a 2 year vacancy in November 2001)
Richard A. Snyder, San Diego
Beth Robertson, North Bay

That the following be elected Directors for Life of the CALIFORNIA ASSOCIATION OF REALTORS®:
Glenn Hellyer, Pacific West
Jimmy La Peter, Pacific West
Vince Malta, San Francisco

That Joel Singer be elected Executive Vice President/State Secretary for the year 2002.

That Jim Hamilton be elected Treasurer for a two-year term ending 2003.

That Toby Bradley be elected President-elect for the year 2002.

It was reported for information only that current President-elect Robert Bailey automatically succeeds to the Presidency for the year 2002.

C.A.R. Scholarship Foundation 
The C.A.R. Scholarship Foundation reported for information only the completion of the Joe Barnett Perpetual Scholarship Fund with contributions from the Palos Verdes Peninsula AOR, the initiation of the Jacalyn Gangnes Memorial Scholarship Fund with donations from the Santa Cruz AOR and Region 10, and contributions from the Beverly Hills/Greater Los Angeles AOR to the Beverly Hills/Greater Los Angeles AOR Scholarship Fund and the Rosenthal Group Scholarship Fund. Scholarship awards to eleven students were announced. The California Association of REALTORS Scholarship Foundation awards scholarships to students enrolled at a California college or university for professions which are centered on, or support a career in real estate.

Strategic Planning and Finance 
That the Association's Financial Statements as of April 30, 2001 be approved:
A. The Statement of Income and Expenses by program for the four months ending April 30, 2001
Total C.A.R.Revenue of $9,666,700
Expenses of $4,119,500 (including federal income tax)
An excess of income over expenses of $5,547,200
Political Activities Funds
An excess of income over expenses of $536,800
Issue Action Fund
An excess of income over expenses of $722,600
B. The C.A.R. Balance Sheet as of April 30, 2001:
Total assets of $23,203,600 ( of which $13,552,200 are current assets )
Total liabilities of $2,694,000 (of which $2,325,000 are current liabilities)
C.A.R. Fund Balance of $20,509,600

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 $14,466,200
Expenses of $14,427,200 (including federal income tax)
An excess of income over expense of $39,000
Political Activities Funds
An excessof income over expenses of $122,200
Issue Action Fund
An excess of income over expenses of $411,900. This amount will be allocated to IMPAC as approved by the Directors.

It was reported for information only that the Strategic Planning and Finance Committee has reviewed and approved a mission statement for the new Housing Affordability Fund. The mission of the Housing Affordability Fund is to address the ongoing housing affordability issues throughout the state, by way of direct monetary grants given from monies that are solicited, collected and invested by the Fund. These grants are to be provided to a wide array of individuals or organizations that are primarily active in helping to promote and/or raise the awareness of affordable housing and that helpincrease overall homeownership.

OTHER REPORTS 

N.A.R. Director Forum 
It was reported for information only that Rick Snyder has been selected as California's choice to serve as Region 13 Representative to the N.A.R. Nominating Committee for 2002; Tim Corliss will serve as Regional Vice President for N.A.R. Region 13 in 2002; Dick Gaylord has been selected as California's choice to serve as Regional Vice President for N.A.R. Region 13 in 2003; and Dale Colby will receive the N.A.R. Distinguished Service Award. Walt McDonald was elected to the post of N.A.R. First Vice President for 2002 at the May meeting of the National Association of REALTORS.