CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
519^th SESSION
JUNE 8 -- 9, 2007

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2007 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. That seed money of $20,000 be provided to the C.A.R. Education Foundation. The purpose of this request is to award the REALTOR® Applicants who have successfully completed the requirements set forth in the Policies and Procedures, and in accordance with the rules governing the distribution of said funds.  (See Strategic Planning and Finance Committee Action Item 4)
2. It was reported for information only that funds were awarded for scholarships totaling $13,000.

California REALTOR® EXPO Advisory
1. It was reported for informationonly that 3,200 attendees and exhibitors visited the REALTOR® Showcase on June 6 and 7.  89 exhibit booths were featured in the exhibit hall.  The California REALTOR® EXPO will take place in Anaheim October 9-11.  The theme is "REALTOR® 2.0: The Next Big Thing."

Common Interest Development
1. That C.A.R. "FAVOR" SB 528 (Aanestad) which would prohibit a Common Interest Development board from taking action on any subject matter at a non-emergency meeting of the board that is not on the agenda. The bill would also require that the agenda be provided to members at the same time the notice of the meeting is given to the members.

CREPAC Trustees
1. It was reported for information only that, per the Bylaws, the following slate is duly noticed for approval in October 2007. Trustees serve for a three-year term. Alternates may be selected to fill the remainder of a vacant term during the year.

NOMINEES FOR CREPAC TRUSTEE
(November 2007- November 2010)
Dawn O'Rourke, Region 1
Dorothy Jackson, Region 06
Susan Davis, Region 12
Wendy Furth, Region 18
Candice Carpenter, Region 21

NOMINEES FOR CREPAC ALTERNATE
(November 2007 - November 2008)
Terriann McGowan, Region 4
Raymond Karpe, Region 12
Brian Malone, Region 13
Nancy Donahue-Jones, Region 14, Association Executive
Mary Funk, Region 18
Heide Wolfe-Reid, Region 19
Jimmy La Peter, Region 23
Susan Marshall, Region 24
Cas Pinkowski, Region32

2. It was reported for information only that the CREPAC Trustees transferred $925,000 to National RPAC, for a total "Fair Share" 2007 contribution of $925,000.
3. It was reported for information only that CREPAC contributed $531,350 to bi-partisan candidates for the Assembly and Senate, as well as to the Democratic and Republican Parties.

Federal Issues
1. That C.A.R., in conjunction with NAR, support the following principles in any legislation to require broadband providers to adhere to net neutral practices:
a. Consumers are entitled to access the lawful Internet content of their choice;
b. Consumers are entitled to run applications and services of their choice, subject to the needs of law enforcement;
c. Consumers are entitled to connect their choice of legal devices that do not harm the network;
d. Consumers are entitled to competition among network providers, application and service providers, and content providers;
e. Network providers should not discriminate among Internet data transmissions on the basis of the source of the transmission as they regulate the flow of network content.

IMPAC Trustees
1. It was reported for information only that, per the Bylaws, the following slate is duly noticed forapproval in October 2007.  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
(November 2007- November 2010)
M. Chris Kutzkey, Region 2
Eva Garcia, Region 3
Mary Chatton Brown, Region 5
Richard Tegley, Region 14
Alice McCain, Region 18

NOMINEES FOR IMPAC ALTERNATE
(November 2007 - November 2008)
Cynthia Wood, Region 4
Michael Godfrey, Region 6
Dale Gray, Region 7, Association Executive
Leannah Hunt, Region 9
Carol Banner, Region 15
Richard Stone, Region 16
Rebekah Owen, Region 19
Les Fishman, Region 21
Vicky Campbell, Region 24

2. It was reported for information only that IMPAC made the following contributions.
--$15,000 to the Reason Foundation for a media and government outreach campaign on government barriers to housing production
--$10,000 to the Community Renewal Project to sponsor their annual Community Renewal Summit that provides resources to neighborhood activists who improve their communities through economic development
--$10,000 to the National Association of REALTORS® for a Homeowners Insurance Research study on availability and affordability of insurance in disaster prone areas
--$150,000 to the Plan for the People -- No on Measure A campaign to defeat a anti-growth initiative in Monterey County
--$142,723 to the California Association of REALTORS® to fund a paid media and direct mail campaign in support of SB 670 (Correa), a C.A.R. sponsored bill to prohibit Private Transfer Taxes
--$15,000 to No on Measure A, an anti-growth initiative in the City of Solana Beach
--$20,000 to the Residents Against Planning Restrictions - Measure V, an anti-growth initiative in the City of Sierra Madre

Land Use and Environmental
1. That C.A.R. "SUPPORT IF AMENDED" SB 5 (Machado) if it is amended to impose a maximum of 200-year flood protection.

Note: SB 5 requires that each parcel of land that is located in a flood hazard area be identified and that the local government annually notify owners of their level of flood protection and to provide them with information regarding flood insurance. In addition, SB 5 would require local governments to amend their general plans and zoning ordinances to reflect flood hazard zones and to condition the approval of subdivisions on one of two provisions: (1) that the subdivision will have a currently unspecified level of flood protection from levees or other structures; or (2) the construction standards used in the development will achieve the elevated level of flood protection.

Legal Action Fund
1. It was reported for information only that the Legal Action Fund Trustees have the following update on pending matters.
--The Legal Action Fund authorized an amicus brief in Sweitzer v. Westminster Investments, a California Court of Appeals case challenging various provisions of the bond requirement under the Home Equity Sales Contract Act.  C.A.R.'s brief focused on an unenforceability argument due to the impossibility of compliance with the bond requirement.
--The Trustees discussed the issue of MLS's having adequate insurance and reserves to cover antitrustand other legal attacks.  Staff was directed to gather information about the current levels of insurance and legal reserves by conducting a survey of California MLS's to determine readiness levels.
--The Trustees authorized staff to investigate and form a budget to commence legal action against the rapidly expanding private transfer fees in new developments.  To accelerate the effort, the trustees authorized $15,000 to gather the relevant information and analyze the documents. The Trustees are asking that anyone with information on a development with transfer fees send the CC&R's and the specifics of the transfer fee including the name of the development to June Barlow. More information on this will be forthcoming.

Legislative
1. That C.A.R. appoint a task force to consider whether C.A.R. should sponsor legislation to:
a. Transfer regulation of mortgage lending functions out of the Department of Real Estate and to a different regulator; and,
b. Prohibitan individual licensee from acting as both the mortgage loan originator and a sales agent in the same transaction; and
c. Separate licensing of Mortgage Brokers within the DRE; and
d. Other options.

2. It was reported for information only that C.A.R. will proceed with negotiations with other interested parties on a revision of the Home Equity Sales Act, AB 1356 (Houston), and review the proposed compromise with the C.A.R. leadership team. 

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

Amador AOR
Isla Gipson

Arcadia AOR
Paul Gould

Bakersfield AOR
Gale Hammett
Colleen Head

Beverly Hills/Greater LA AOR
Harold Gingrich
Mary Robertson

California Desert AOR
Mary Tharp

Citrus Valley AOR
Ellie Goritz
Ruth Hamill
Gary Mitchell

East Valley AOR
Edward Slaughter

Greater Antelope Valley AOR
Edith Carney

Lassen AOR
Beth Bennett

Monterey County AOR
Perry Brasuell
Donald Foster
Beth Hightower
Richard Kelly
Robert Luster

North Bay AOR
Florence Gresty
Dorothy Smith

Orange County AOR
Yolanda Bateson
Donna Cazares
Ruth Cenci
Popie Cherpas
Ardis Davis
Donald Greenwaldt
Frank Hill
WilliamOesterreich
Betty Pequet

Pacific West AOR
James Harvey
Nancy Hill
Lorane Katz
Elizabeth Mytinger
Mary Wells

Pasadena-Foothills AOR
Shirley Curren

San Mateo AOR
Edward Guglielmetti
Elizabeth Malinverno
NormanParham
Nancy Pohl
Elizabeth Spanjian
Lou Walter
Jane Winters

Southland Regional AOR
Robert Haddad

Tulare AOR
Laura Miller

Ventura AOR
Montie Black
Bud Gerding
Tex Kernan
Margaret LeBrand
Donald Thibeault

MLS Working Group
1. That prior to the issuance of an RFP for Information Engineering, C.A.R. will meet with the current groups (NCREX, Quattro, and CDU) to review in depth their technical work and to maximize use of their work product in the Statewide Information Engineering effort. 
2. That C.A.R. authorize up to $500,000 for the Information Engineering effort necessary to facilitate the development of either a Statewide Data Aggregation and/or a Statewide MLS, accelerating the implementation of either plan.
3. That C.A.R. develop more detailed implementation plans for both a Statewide Data Aggregation Service and a Statewide MLS which will be presented for consideration in October.  It is understood that participation ineither plan will be voluntary.
4. A motion from the floor of the Board of Directors was referred to the Strategic Planning and Finance Committee, that the MLS Working Group accomplish two additional goals:
a. Hire a consultant or consultants toadvise C.A.R. on how to be more Web 2.0 enabled, how to build a website that will drive, capture and serve consumers on a statewide aggregated data site or statewide MLS site, and build this into a strategic portion of the business plan.
b. Evaluate the feasibility of creating a C.A.R. statewide website that is consumer driven utilizing current IDX data feeds which can be up and running very quickly and not years out.

Nominating
1. That the following be designated to serve as State Allocated NARDirectors for a three year term ending November 2010, and as Alternates for the 2008 elective year.

NAR DIRECTORS FOR 2008 - 2010 (IN ALPHABETICAL ORDER)
Colleen Badagliacco, Region 19
Jeff Barnett, Region 9
Tom Carnahan, Region 18
Dorothy Jackson, Region 6
Raymond Karpe, Region 12
Ann Pettijohn, Region 23
Gary Thomas, Region 32
Steve White, Region 18

ALTERNATES FOR 2008 (IN PRIORITY ORDER)
Susan Tilling, Region 9
Marian Norris, Region 7
Sharon Bowler, Region 16
Bob Hart, Region 11
J. Michael Roberts, Region 32
John Cribb, Region 31
Winnie Davis, Region 18
Jimmy La Peter, Region 23

2. That the following individuals be elected as Directors for Life:
Maxine Jennings, Region 6
Marjorie Mc Laughlin, Region 24
Dennis Mason, Region 2

3. That Joel Singer be elected as Executive Vice President/State Secretary for the year 2008.
4. That Beth Peerce be elected as Treasurer for the years 2008-2009.
5. That James J. Liptak be elected as President-Elect for the year 2008.
6. It was reported for information only that President-Elect Bill Brown will automatically become President for the year 2008.

Political Affairs
1. It was reported for information only that the REALTOR® Action Fund has raised $4.2 million to date in 2007.  Ten new California Golden R contributors and four new California Sterling R contributors were recognized.

Property Management
1. That C.A.R. "SUPPORT" AB 1173 (Keene) which permits property managers to utilize a residential utility billing service for disclosing water billing procedures, and requires all newly constructed multi-family rental units, as of January 1, 2010, to have submeters or individual meters.
2. That C.A.R. "SPONSOR" legislation in 2008 to require local jurisdictions with "just cause eviction" rules to permit landlords, subject to those rules, to evict a registered sex offender in order to protect a person at risk; and that C.A.R. work cooperatively with industry stakeholders.

Real Estate Finance
1. That C.A.R. create a Task Force to examine what incentives may be created for lenders to work with borrowers and their agents in order to avoid foreclosure when mitigating circumstances warrant.

Standard Forms Advisory
It was reported for information only that the Standard Forms Advisory Committee received reports from 13 Regional Representatives.  The comments were generally positive regarding the April 2007 forms release.  The Committee reviewed the draft of the Short Pay Listing Addendum (SPL) and approved the release of the form as quickly as possible.  The Committee endorsed an interim form release to accomplish this purpose.  The Committee instructedstaff to create a "Short Pay Contract Addendum" between the buyer and seller to be released in November.  The Committee recommended that the Seller Property Questionnaire (SPQ) and Supplemental Statutory and Contractual Disclosure (SSD) be combined.  However, the Committee recommended that the SSD in its current format continue in circulation.  Further, the committee decided to revise the Residential Purchase Agreement (RPA-CA) paragraph 25 to include an optional checkbox referencing the SPQ as a contractually required seller disclosure.  The general consensus of the Committee is that after five years of the RPA-CA being in production, coupled with the many comments received, it may be time to address and make slight modifications to the RPA-CA form.  Additionally, the Committee discussed the need for a Security Deposit Release form.  A draft of the form will be created with input from the Property Management Committee and presented at the next Forum on Forms.  The Committee received reports about the proposed "Forms Advisor" program.  The Committee endorses the value of the program and encourages the Strategic Planning and Finance Committee to continue to evaluate the viability of bringing this product out to the membership.  The Committee will refer comments regarding the issue of the selling agent's compensation when the listing agent receives less than the full commission to the MLS/Computer and Business Technology and tothe Professional Standards Committees, for possible clarification under the MLS rules.  The Committee recommends the creation of a Commercial Forms Study Group to review C.A.R. commercial forms.  Finally, the SFAC reviewed 23 of the 93 comments received and will hold a follow up conference call to discuss the remaining items.

Strategic Planning & Finance
1. That the Statement of Income and Expenses by program for the four months ending April 30, 2007 be approved.
Total C.A.R.
Revenue of $24,049,600
Expenses of $ 7,830,500
An excess of income over expenses of $16,219,100
Political Activities Fund
An excess of income over expenses of $2,169,900
Issues Action Fund
An excess of income over expenses of $1,518,500
TheC.A.R. Balance Sheet as of April 30, 2007
Total assets of $68,069,100 (of which $51,553,400 are current assets)
Total liabilities of $8,986,000 (of which $8,094,800 are current liabilities)
C.A.R. Fund Balance of $59,083,100

2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2007 be approved.
Total C.A.R.
Revenue of $31,150,600
Expenses of $27,081,400
An excess of income over expenses of $4,069,200
Political Activities Fund
An excess of income over expenses of $1,207,500
Issues Action Fund
An excess of income over expenses of $1,099,400. This amount will be allocated to IMPAC as approved by the Directors.

3. That the audited Statement of Income and Expenses by program forthe twelve months ending December 31, 2006 be approved.
Total C.A.R.
Revenue of $33,966,300
Expenses of $25,902,600
An excess of income over expenses of $8,063,700
Political Activities Fund
An excess of income over expenses of $1,178,200
Issues Action Fund
An excess of income over expenses of $1,087,800
This amount will be allocated to IMPAC as approved by the Directors.
The C.A.R. Balance Sheet as of December 31, 2006
Total assets of $45,656,500 (of which $29,219,000 are current assets)
Total liabilities of $3,680,400 (of which $3,436,800 are current liabilities)
C.A.R. Fund Balance of $41,976,100

4. That seed money of $20,000 be provided to the C.A.R. Education Foundation. The purpose of this request is to award the REALTOR® Applicants who have successfully completed the requirements set forth in the Policies and Procedures, and in accordance with the rules governing the distribution of said funds.

Taxation
1. That C.A.R. fund conducting a survey, to cost no more than $20,000, that will allow the Property Tax Basis Portability Task Force to determine the extent to which an expansion of portability might be utilized.
2. That C.A.R., in conjunction with NAR, look into the issue of accommodators/qualified intermediaries of 1031 exchanges (including but not limited to oversight and/or regulation) and how to safeguard exchanging taxpayers and our industry members vis-a-vis the practice of accommodators/qualified intermediaries.
3. That C.A.R., in conjunction with NAR, support tax credits, deductions, or similar tax incentives designed to encourage owners to make improvements to real property in order to conserve energy, mitigate potential damage from natural disasters and/or satisfy environmental goals related to natural resources and wildlife. Support for tax legislation containing such incentives will be balanced against the competing pressures of real estate-related tax provisions that could be created to "pay for" these incentives.