CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
516^th SESSION
June 9 -- 10, 2006

The following is a summary of the significant action items approvedby the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2006 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.  For more information please Contact Us.


C.A.R. Scholarship Foundation/C.A.R. Education Foundation
1. It was reported for information only that funds were awarded for scholarships totaling $19,000.  A scholarship was initiated by the South Bay Association of REALTORS® and the Southern California Chapter of CRS in memory of Mark Consalvo, former Chair of the C.A.R. Scholarship Foundation.  An additional scholarship was initiated by C.A.R. Scholarship Foundation Trustee/C.A.R. Education Foundation Director Tom Berge in the name of the West San Gabriel Valley Association of REALTORS®.

California REALTOR® EXPO Advisory
1. It was reported for information only that 2,700 attendees and exhibitors visited the REALTOR® Showcase on June 7 and 8.  95 companies were featured in the exhibit hall.  The California REALTOR® EXPO will take place in Long Beach October 17-19.  The theme is "Ocean of Opportunities."

Commercial Investment
1. That the Commercial Investment Committee change its name to the REALTORS® Commercial Alliance Commercial Investment Committee of the California Association of REALTORS®.

CREPAC Trustees
1. It was reported for information only that the following slate is duly noticed for approval in October 2006. Trustees serve for a three-year term. Alternates may be selected to fill the remainder of a vacant term during theyear.

NOMINEES FOR CREPAC TRUSTEE
(November 2006- November 2009)
Paula Colombo, Region 3
Nancy Gilmore, Region 23 (AE)
Nancy Hunt, Region 32
Dennis Mason, Region 2
Irma Vargas, Region 17

NOMINEES FOR CREPAC ALTERNATE
(November 2006 - November 2007)
Anthony Agurs, Region 30
Candice Carpenter, Region 21
Susan Davis, Region 12
Mary Funk, Region 18
Dorothy Jackson, Region 6
Joyce Kristensson, Region 13
Susan Marshall, Region 24
Susanna Schlendorf, Region 5
Tricia Thomas, Region 6 (AE)

2. It was reported for information only that the CREPAC Trustees have transferred $300,000 to National RPAC, for a total "Fair Share" 2006 contribution of $850,000, and that CREPAC has contributed $163,700 to bi-partisan candidates for the Assembly and Senate, as well as the Democratic and Republican Parties during the 2006 Primary Election cycle.

Educational Services Advisory
It was reported for information only that the Committee conducted an Educational Services Forum with discussion of topics including an update of current C.A.R. educational activities, positive results of a survey assessing broker interest in online training for their agents, and plans for future course development.  Suggestions were offered for raising member awareness of, and accessibility to, C.A.R. training.  The Committee reviewed the input received at the Educational Services Forum, the progress of expanding training programs that are not just for continuing education credit, and made plans to conduct another forum at the Fall meetings.

Eminent Domain Task Force
It was reported for information only that the following policies have been adopted by the Association, and that the Task Force has completed its work.

1.  That C.A.R. "SUPPORT" legislation concerning eminent domain that would:
 - Prohibit the taking of single family property by eminent domain for any use other than for public use.
 - Amend the eminent domain law tomake it easier for property owners to transfer their existing property tax base
 - Require courts to award the prevailing plaintiff attorney fees and costs should the plaintiff prevail in an eminent domain proceeding when challenging: a) the validity of the taking of property; or b) the valuation of the property.
 - Require: a) independent licensed appraisers to be used in eminent domain proceedings; and b) redevelopment agencies to reimburse property owners the cost of an additionalappraisal in eminent domain proceedings.
2.  That C.A.R. "SUPPORT" legislation concerning redevelopment law that would:
 - Substantially tighten the definition of "blight" used by redevelopment agencies proposing to create or expand redevelopment project areas.
 - Reduce the time period during which the initial finding of "blight" may exist in a newly created redevelopment project area.
 - Reduce the time period during which redevelopment agencies may take property by eminent domain.
 - Require a re-evaluation of the necessity of a redevelopment area on a periodic basis.
 - Require redevelopment agencies to disclose to all property owners that they may transfertheir property tax base if the qualified replacement property is within the same county.
3.  That C.A.R. "FAVOR" the development of multi-use buildings within redevelopment project areas.
4.  That C.A.R. "FAVOR" legislation to require redevelopment agencies to use no less than 30% (existing law require agencies to use no less than 20%) of its tax increment revenues for the purpose of building new or improving low and moderate income housing (LMI) and to requirethe agencies to use those funds as soon as reasonably practical.
5.  That C.A.R. "FAVOR" removing antiquated subdivisions (irregular shapes or inadequate size parcels) from the statutory definition of blight.
6.  That C.A.R. "WATCH" legislation that would require redevelopment agencies to pay businesses moving costs and costs associated with a temporary loss of business due to the business relocating to a new location.
7.  That C.A.R. "FAVOR" legislation that would require redevelopment agencies to establish a legal assistance fund to pay "small" property owners costs associated with obtaining legal advice on eminent domain.
8.  That C.A.R. "OPPOSE" new obligations on sellers and their agents to disclose that a property is located in a redevelopment area.
9.  That C.A.R. seek amendments to legislation that will require redevelopment agencies to record on each parcel a notice that the parcel in aredevelopment project area is subject to eminent domain for a prescribed period of time, and for that notice to be removed at the appropriate time.
10.  That C.A.R. "SUPPORT" legislation that will require redevelopment agencies to adopt a more quantitative analysis when determining if a parcel is "blighted."
11.  That C.A.R. "SUPPORT" legislation that will require redevelopment agencies to include in their appraisal of a parcel to be purchased, the cost of the replacement parcel.

Items 1 and 2 above were approved by the C.A.R. Board of Directors in January 2006.  Items 3 through 11 were approved by the C.A.R. Officers in April 2006.

Executive
1. That Dolores Golden be appointed as a Director-At-Large to fill a vacancy for the remainder of 2006.

IMPAC Trustees
1. It was reported for information only that the following slate is duly noticed for approval in October 2006.  Trustees serve for a three-year term. Alternates may beselected to fill the remainder of a vacant term during the year.  A recent bylaws amendment calls for one new Trustee to be nominated for a two year term.

NOMINEES FOR IMPAC TRUSTEE
(November 2006 - November 2009)
Greg M Haas, Region 19
James S. Irving, Region 31
Mark Marchand, Region 30 (AE)
Richard Otterstrom, Region 17
Sandi E. Pfister, Region 21
Heather C. Benson, Region 29, (2-year term, expires 2008)

NOMINEES FOR IMPAC ALTERNATE
(November 2006 - November 2007)
Les Fishman, Region 21
Pat A. Fredericks, Region 28
Eva S. Garcia, Region 3
Dale Gray, AE, Region 7
Leannah Hunt, Region 9
Joan Jolly, Region 12
Georgia W. Richardson, Region 6
Richard Tegley, Region 14
Cynthia Wood, Region 4

2. It was reported for information only that the IMPAC Trustees approved the following contributions:
-$125,000 to a candidate education and earned media campaign in support of C.A.R. housing policy by the C.A.R. Housing Opportunity Committee.
-$250,000 to the Alliance for Housing and the Environment to defeat an anti-growth initiative in Santa Clara County.
-$10,000 to the Community Renewal Project for sponsorship of their 2006 conference.
-$25,000 to a research/media campaignby the Reason Institute on solutions to replace no-growth policies.
-$50,000 to the Kern Taxpayers for Safety and Traffic Relief for a countywide half-cent transportation sales tax increase.

Land Use and Environmental
1. It was reported for information only that the Land Use and Environmental Committee recommends that C.A.R. appoint a Task Force to address the Private Transfer Tax issue and that the Task Force report to multiple committees as deemed appropriate by leadership.
2. It was reported for information only that the Land Use and Environmental Committee will appoint a Working Group to address the Private Transfer Tax issue as it applies to Land Use and Environmental Issues.
3. It was reported for information only that the Land Use and Environmental Committee recommends that the C.A.R. Standard Forms Advisory Committee consider amending the Statewide Buyer and Seller Advisory to include language in the Septic System(s) subheading that would alert buyers to local and/or statewide septic system regulations.

Legal Action Fund
It was reported for information only that the Trustees have met several times by phone and have reviewed five requests for either funding or to support the filing of a brief.  No new cases have been approved.  The following is an update on pending matters.
-- Strebel v. Brenlar - This involves damages in a case involving two separate properties.  One didn't close because of tax liens, and the jury held that the agent concealed this, causing the buyer to release contingencies and sell his existing home.  He tried to find alternative properties in the new area, could not, but did not reinvest in the old area.  The jury awarded actual damages, emotional distress damages and lost appreciation on the proceeds of the home sold but not reinvested.  The trustees authorized filing a brief.  C.A.R. filed its brief stating that emotional distress damages and lost appreciation were not proper in this case.   The Court issue a ruling in January that lost appreciation is a proper method of evaluating damages in this case. The facts in this case were difficult to overcome.  Since the January meetings, the broker sought a hearing before the California Supreme Court and the Trustees authorized an amicus brief in support of the effort.   In May of this year the California Supreme Court denied the request for hearing.  The appellate court decision stands.
-- Bakersfield Association of REALTORS v.BLS - The Trustees had previously authorized funds in support of the issue of unauthorized use of listings by a parallel MLS that raised issues of a broker's control over the distribution of the broker's own listings.  This case has now been settled.  One MLS now serves the Bakersfield area.
-- C.A.R. v. Barry - As previously reported, C.A.R. defeated Barry's motion to strike the complaint in C.A.R.'s malicious prosecution case against both Freeman and Barry.  Predictably, Barry has appealed.  We are optimistic the lower court decision will stand.

Legislative
1. That C.A.R. adopt the following positions on November 2006 Ballot Propositions:
-- Proposition 1A, "Transportation Funding Protection Legislative Constitutional Amendment" -- "FOR"
-- Proposition 1B, "Highway Safety, Traffic Reduction, Air Quality and Port Security Bond Act of 2006" -- "FOR"
-- Proposition 1C, "Emergency Housing, Community Planning and Farmland Preservation Bond Act of 2006," of which $950 million is allocated for homeownership opportunities -- "FOR"
-- Proposition 1D, "Kindergarten -- University Public Education Facilities Bond Act of 2006" -- "NEUTRAL"
-- Proposition 1E, "Disaster Preparedness and Flood Prevention Bond Act of 2006" -- "FOR"
-- "Sex Offenders, Sexually Violent Predators, Punishment, Residence and Monitoring Initiative Statute" -- "NOT REAL ESTATE RELATED"

NOTE: In September 2005 C.A.R. adopted a "NOT REAL ESTATE RELATED" position on the Safe, Reliable High-Speed Passenger Train Bond Act forthe 21st Century, which is expected to appear on the November 2006 ballot.

2. It was reported for information only that the Legislative Committee will keep the Broker Experience Working Group in place at least until October 2006, and report on options for improved experience for both brokers and salespeople.

Local Governmental Relations
1. It was reported for information only that C.A.R. will continue to aggressively pursue clarification that REALTORS® serving as elected or appointed officials are not subject to a disqualifying conflict of interest simply by virtue of their license or profession.

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

Arcadia AOR
Sylvia Marie Bartlett
JaniceTorrington

Bay East AOR
Walter Ng

Central Valley AOR
Robert Docter

Chico AOR
Mary Aileen Porter
Carol Myers

Coastal Mendocino AOR
Alan Carlson

Greater Antelope AOR
Eugene Michael Dennis

Imperial Valley BOR
Dorothy Littrell

Newport Beach AOR
Mary Graham
Scottie Piper

Northern Solano County AOR
Art Engell

Oroville AOR
Herbert F. Olson

Pacific West AOR
Eilleen Hill
Violet Mgrdichian
Joyce Reed

Paradise AOR
Howard Arnold Johnson

Pasadena-Foothills AOR
Clovis Lorraine Buchanan
Joan Haskell
Orville Houg

San Diego AOR
Mary Ann Holladay
Francis J. Lay Jr

San Mateo County AOR
Margaret C. Barrett
Opal Burleson
Mary Glafkides
Nan Simmons
MarilynVicas

Santa Ynez Valley AOR
Barbara Talmadge

Southland Regional AOR
Rita Diamond
Ira Gribin
Adeline S. Hopkins
Joan Knox
Cynthia L. Morse
Kathleen Murphy
Helen Elroy Payne
Howard R. Sampson
Jerome Segal
Stanley Weinsheink

Tulare County AOR
Obil Smith

West San Gabriel Valley AOR
Sally Soto

Nominating
1. That the following be designated to serve as State allocated NAR Directors for a three year term ending November 2009, and as Alternates for the 2007 elective year.
David Barca
Toby Bradley
Diana Bull
Sereta Churchill
Wendy Furth
Allan Gantt
Chuck Lamb
Ted Loring
Vincent Malta
Dennis Mason
Leslie Munger
Jeannette Way

Alternates For 2007 (In Priority Order)
Richard Stone
Steve Rosco
Jeanne Garde
Raymond Karpe
Susan Tilling
Tom Carnahan
Mary Funk
Dorothy Jackson

2. That the following individuals be elected as Directors for Life:
William Jansen
Rick Violett
Terry Wunderlich

3. That Joel Singer be elected as Executive Vice President/State Secretary for the year 2007.
4. That William E. Brown be elected as President-Elect for the year 2007.
5. It was reported for information only that President-Elect Colleen Badagliacco will automatically become President for the year 2007, and that 2006-2007 Treasurer James Liptak will continue to serve the remainder of a two year term in that office.

Political Affairs
1. It was reported for information only that the 2007 Dues Billing Statement will include both the $197 "True Cost of Doing Business" and the $49 minimum REALTOR® Action Fund (RAF).  Additionally, that the dues billing statement will be clearly marked so that the members understandthey have a choice of paying either the $197 "True Cost of Doing Business" OR the $49 minimum (RAF) voluntarily political contribution.

Property Management
1. That C.A.R. adopt an "OPPOSE UNLESS AMENDED" position on AB 2712 (Leno), a bill relating to sex offenders in residential rental properties.  The amendments include meaningful: a) liability reform and; b) technical definitional changes.

Real Estate Finance
1. That C.A.R., in conjunction with NAR, "SUPPORT" a new FHA Home Equity Conversion Mortgage (HECM) for purchase product.

Standard Forms Advisory
It was reported for information only that the Standard Forms Advisory Committee received comments regarding the current draft of the Agent's Inspections Disclosure (AID) form and the following new forms: Buyer Inspection Waiver (BIW), Buyer Inspection Elections (BIE), Vacant Land Questionnaire (VLQ) and REALTOR® Affirmation (RA) forms.  The Standard Forms Advisory Committee approved the Buyer Inspections Waiver (BIW) and the Vacant Land Questionnaire (VLQ) forms for the Fall 2006 release, with some minor revisions.  The Committee referred the proposed Agent's Inspections Disclosure (AID) form back to the InspectionsStudy Group to revise how the agent is to document the findings of their diligent visual inspections.  The Standard Forms Advisory Committee approved the Buyer Inspections Waiver (BIW) and the Vacant Land Questionnaire (VLQ) forms for the Fall 2006 release, with some minor revisions.  The Buyer Inspection Elections (BIE) form will undergo additional review.  The Committee recommended that the REALTOR® Affirmation (RA) form be released in 2006 with a title change to the REALTOR® Acknowledgement (RA) form and other minor changes.  Additionally, the Committee supports the creation of a Forms Consolidation Study Group/Task Force.  Finally, the Committee reviewed 66 of the 87comments received between January and June ofthis year, and will review the balance of the comments in a follow up conference call.

Strategic Planning & Finance
1. That the Statement of Income and Expenses for the Twelve months ending December 31, 2005 be approved.
Total C.A.R.
-  Revenue of $29,135,900
-  Expenses of $25,059,500 (including Federal income tax).
-  An excess of income over expenses of $4,076,400
Political Activities Fund
An excess of income over expenses of $820,800.
Issues Action Fund
Anexcess of income over expenses of $1,102,400. This amount will be allocated to IMPAC as approved by the Directors.
The C.A.R. Balance Sheet as of December 31, 2005
-  Total assets of $35,601,900 (of which $21,945,800 are current assets)
-  Total liabilities of $4,807,700 (of which $4,339,400 are current liabilities)
-  C.A.R. Fund Balance of $30,794,200.

2. That the Statement of Income and Expenses by program for the three months ending March 31, 2006 be approved.
Total C.A.R.
- Revenue of $21,534,000
- Expenses of $5,415,600 (including Federal income tax)
- An excess of income over expenses of $16,118,400
Political Activities Fund
- An excess of income over expenses of $1,713,300
Issues Action Fund
- An excess of income over expenses of $1,557,800
The C.A.R. Balance Sheet as of March 31, 2006
- Total assets of $55,514,600 (of which $41,830,100 are current assets)
- Total liabilities of $7,387,400 (of which $6,899,000 are current liabilities)
- C.A.R. Fund Balance of $48,127,200

3. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2006 be approved.
Total C.A.R.
- Revenue of $29,718,100
- Expenses of $25,551,100 (including Federal income tax)
- An excess of income over expenses of $4,167,000
Political Activities Fund
- An excess of income over expenses of $926,800
Issues Action Fund
- An excess of income over expenses of $1,012,500. This amount will be allocated to IMPAC as approved by the Directors.

4. That the Leadership Symposium for the 2007 Presidents and Association Executives be increased to a one and a half day program from the current budgeted one day program, at an additional cost of $50,400. 

Taxation
1. ThatC.A.R., in conjunction with NAR, seek an estate tax regimen that provides a stepped-up basis for all inherited assets.  If the scheduled 2010 estate tax repeal is rescinded, that C.A.R support a revision that
a) permits stepped-up basis,
b) taxes all assets in an estate at the same rate (i.e., rates would not depend on the type of asset),
c) excludes an amount comparable to the $5 million exclusion that would be in effect in 2010,
d) provides estate tax rates that, as nearly as possible, are the same as the tax rate for long-term capital gains, but in no event higher than the 2006 individual tax rates of the same income structure, and
e) indexes the estate tax exclusion amounts for inflation.2. It was reported for information only that the Taxation Committee recommends that C.A.R. appoint a Task Force to address the Private Transfer Tax issue and that the Task Force report to multiple committees as deemed appropriate by leadership.