CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
522^nd SESSION
JUNE 6 - 7, 2008

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its June 2008 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.

C.A.R. Scholarship Foundation/C.A.R. Education Foundation
1. It was reported for information only that the C.A.R. Scholarship Foundation awarded scholarships totaling $8,500, and that the C.A.R. Education Foundation Policies and Procedures have been updated and approved.  

California REALTOR® EXPO Advisory
1. It was reported for information only that the California REALTOR® Showcase had 2,400 attendees and fifty exhibit booths.  The California REALTOR® EXPO will take place October 14-16, 2008 in Long Beach.

Common Interest Development Committee
1. That C.A.R. "OPPOSE" AB 567 (Saldana), Common Interest Development (CID) Bureau.

CREPAC Trustees
1. It was reported for information only that, per the Bylaws, the following slate is duly noticed for approval in October 2008.  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 2008- November 2011) 
Marian Norris, Region 7
Mike Teer, Region 14
Jimmy La Peter, Region 23
Susan Marshall, Region 24
Judy Zeigler, Region 28

NOMINEES FOR CREPAC ALTERNATE
(November 2008 - November 2009) 
Cheryl McFall, Region 7
Linda Harrison, Region 8
Gene Lentz, Region 9
Jared Martin, Region 12
Carol Facciponti, Region 16
Mary Funk, Region 18
Greg Berkemer, Region 28
Anthony Agurs, Region 30
Cas Pinkowski, Region 32  

The slate of Nominees above will be presented to the C.A.R. Board of Directors for their final approval at the October meetings (notified at the June meetings), according to the CREPAC Bylaws.  Trustees serve for a three-year term.  Alternates may be selected to fill the remainder of a vacant term during the year.

Executive

1. That C.A.R. approve the CALMLS, Inc. Bylaws as noticed and as posted on the mlsinput.car.org Web site (Note: A technical correction was agreed to that the quorum and voting requirements should specify a majority rather than merely fifty percent as was stated in the draft Bylaws.)

Federal Issues

1. That staff be directed to prepare a new issues briefing paper for presentation to the Federal Issues Committee in October to assist C.A.R. in establishing policy in which we can:

-- Evaluate any proposed legislation and;

-- Advocate for the health care priorities we support.

Further, the issues briefing paper should establish a matrix identifying all of the health care options and principles in general discussion so that the committee can decide those that we support, are neutral on, or oppose in order to allow efficient analysis of all future proposals.

Lastly, we should set a goal of debating and reaching conclusions by the January 2009 C.A.R meetings.  

Housing Opportunity

1. That C.A.R. adopt the following policy on affordable housing:

Housing advocacy organizations promote many different definitions of "affordable housing."  The California Association of REALTORS® has chosen to define "affordable housing" as "affordable workforce housing" and to focus its activities on helping create a path towards "affordable home ownership" for the workers in California.  Such affordability must be evaluated in the context of housing costs within a community.  This path starts with rental housing and then moves on to ownership housing generated by new construction, rehabilitation, and re-development.

REALTORS® believe that communities most effectively create the opportunities for affordable workforce home ownership by avoiding restrictive regulatory policies, such as rent control and point-of-sale mandates, and encouraging affirmative actions such as flexible zoning, innovative local planning, cooperative public-private projects, density bonuses, "granny flats", mixed use developments, land trusts, down payment assistance programs, and shared equity arrangements.

2. A motion that C.A.R. "FAVOR" H.R. 5818, the Neighborhood Stabilization Act of 2008, was denied approval.  

IMPAC Trustees

1. It was reported for information only that, per the Bylaws, the following slate is duly noticed for approval in October 2008.  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 2008- November 2011)  

Carol Banner, Region 15

Pat Fredericks, Region 28

Michael Godfrey, Region 6

Don Scordino, Region 12

Terry Wunderlich, Region 4

NOMINEES FOR IMPAC ALTERNATE

(November 2008 - November 2009)  

Les Fishman, Region 21

Dolores Golden, Region 22

Rebekah Owen, Region 19

Erik Weichelt, Region 24

Cynthia Wood, Region 4

The slate of Nominees above will be presented to the C.A.R. Board of Directors for their final approval at the October meetings (notified at the June meetings), according to the IMPAC Bylaws.  Trustees serve for a three-year term.  Alternates may be selected to fill the remainder of a vacant term during the year.  

Legal Action Fund

1. The trustees approved the following cases for amicus briefs:

Claver v. Coldwell Banker.  A salesperson was let go filed a class action lawsuit in a San Diego federal court challenging the independent contractor status of all CB salespersons on several issues but most notably their E&O insurance/risk management service/insurance protection program (to which salespersons contribute) and automobile insurance requirements.  The plaintiff claims unlawful withholding of the agent funds for these programs under the California Labor Code.  The plaintiff claims the broker salesperson relationship is one of an employer/employee relationship and therefore subject to the California Labor Code which regulates deducting amounts due from an employee.  The matter is at an early stage at the trial level.

Hughes v. Pair.   In a sexual harassment claim against a professional in an employment context, a procedural issue arose involving whether a court could dispose of a sexual harassment case by a summary judgment motion.  While the trustees noted they did not condone the alleged activity of the defendant, they authorized an amicus on the issue of whether such claims may be decided by a judge instead of requiring a jury trial.    The case is awaiting oral argument before the California Supreme Court.

Updates on cases in which C.A.R. participated as amicus:

Schaffter v. Creative Capital Leasing Group.   This case involves the rights of a broker to commissions under a buyer broker agreement after a seller and buyer cancelled their agreements once the buyer failed to close escrow.  After a series of delays due to changes in counsel, the defendant buyer filed bankruptcy. The matter has now been released from the stay.  It will now go to oral arguments before the Court of Appeal.  

Lange v. Sergerstrom Real Estate et al.  A plaintiff filed a lawsuit without first demanding mediation.  At issue was whether there was "substantial" compliance of the mediation provision by requesting it soon after the suit was filed.   The appellate court upheld a strict reading of the C.A.R. clause and denied attorneys fees to the party that did not request mediation.  The opinion is unpublished and C.A.R. is seeking publication.

Baker v. Osborne Development Corp.    The court declined to enforce a builder's arbitration clause on various grounds, including it being a contract of adhesion and the method of obtaining the agreement to arbitrate by burying it in fine print within a warranty purchased after the initial sales contract.  These were not C.A.R. contracts.  In finding the arbitration clause "substantively unconscionable," the court noted that buyers would likely be more likely to initiate an action against the builder and not the reverse so that there was an imbalance in the benefit of the clause creating "substantive unconscionability."  The trustees authorized a petition to depublish the case on the narrow issue of imbalance.  The petition to depublish has been denied.  The case can be distinguished on many grounds from typical resale purchases using C.A.R.'s RPA.  

Legislative

1. That C.A.R. "OPPOSE UNLESS AMENDED" SB 1399 (Simitian), regarding solar easements; amendments would refer the issue to the California Law Revision Commission.

2. That C.A.R. adopt a "NOT REAL ESTATE RELATED" position on "The California Prevention of Farm Animal Cruelty Act," which will appear on the November 2008 General Election Ballot.

Manufactured Housing
1. That C.A.R. "SUPPORT" AB 1111 (DeSaulnier), Local Ordinances and Age Restrictions in Mobilehome Parks.

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

Arcadia AOR
Betty Jo Lanza
Frank Lee

Burbank AOR
Vince Putrino
Margie Vierra

California Desert AOR

Shirley Baughan

Joan Burke

Jack McCarthy

Joan McCreary

Chico AOR

Ken DuVall

Barbara Rupp

Jackie Santos

Fran Shelton 
 

Conejo Valley AOR

Anona Kelly

Contra Costa AOR
Joanne Dunne
Louise Wolfe  

Downey AOR

Rose Carpenter

East San Diego AOR

Juanita Mangels 
 

Fresno AOR

John Chamberlin

Robert DeRouchey

Maurice Rana

Inland Valleys AOR
Carlton Deon
Mervyn Glenn Flory Jr.
Douglas Gorman
Bud Minton
James Sheridan

Laguna BOR
Dorothy Moulton  

Monterey County AOR

Claire Keeley

North San Diego AOR

Tom Clotfelter

Shirley Lenell

Joyce Sharp

Mary Walker

Orange Belt AOR
Gerald Lesinger
Roy Pond  

Orange County AOR

Leo Chade

Patricia Gaines

Shirley Long

Jean Marsh

Anna Selley

Josephine Turner

Herbert Waltzman

Patricia Young

Pacific West AOR

Rose Mohr

Virginia Quirk

Pasadena-Foothills AOR
Vera Bezjak  

South Bay AOR

Marvin Patrick

Southland Regional AOR

Martha Cunningham

Herman Knox 
 

Tri-Counties AOR

Gilbert Duron

Tulare AOR
Joetta Richmond  

Ventura County Coastal AOR

Margaret Burleson

Fredrick Osborne

Frank Taylor

Yosemite Gateway AOR

Ramona Scott

Mortgage Loan Broker License Task Force
1. A motion to adopt the Final Report and recommendations of the Mortgage Broker License Task Force was denied approval.  

Nominating

1. That the following be designated to serve as State Allocated NAR Directors for a three year term ending November 2011, and as Alternates for the 2009 elective year.

Robert J. Bailey, Santa Cruz

William E. Brown, Bay East

Allen Chiang, Rancho Southeast

Carolyn D'Agosta, No. San Diego County

Steve Goddard, South Bay

Jim Hamilton, South Bay

Bob Hart, Santa Barbara

Chris Kutzkey, Sisikiyou

Geoff McIntosh, Pacific West

Marjorie McLaughlin, San Diego

Marian Norris, Central Valley

Beth L. Peerce, Southland Regional

Jeanne Radsick, Bakersfield

Rick Violett, Pacific West

Judy Zeigler, California Desert

ALTERNATES FOR 2009 (IN PRIORITY ORDER)  

John Yen Wong, San Francisco

Pat "Ziggy" Zicarelli, Southland Regional

Cheryl McFall, Central Valley

Heath Hilgenberg, California Desert

Susan Tilling, Silicon Valley

Le Francis Arnold, Rancho Southeast

Debra Howard, South Lake Tahoe

Mary Funk, Southland Regional

2. That the following individuals be elected as Directors for Life:

Allan Gantt, Pacific West

Carl San Miguel, Santa Clara

John Scarborough, Fresno

3. That Joel Singer be elected as Executive Vice President/State Secretary for the year 2009.
4. That Steve Goddard be elected as President-Elect for the year 2009.
5. It was reported for information only that 2008-2009 Treasurer Beth L. Peerce would continue to serve as Treasurer in 2009.
6. It was reported for information that 2008 President-Elect James Liptak would automatically become 2009 President.

Political Affairs
1. That the voluntary political contribution allocation formula be changed as follows for 2009:  

Proposed Formula
Personal Contributions
0% to CREPAC/Federal
25% to CREIEC
45% to CREPAC/BORPAC
30% to Local BORPAC 

Corporate Contributions
20% to CREIEC
48% to CREPAC/BORPAC
32% to Local BORPAC 
 

Current Distribution Formula
Personal Contributions
10% to CREPAC/Federal
15% to CREIEC (Independent Expenditures)
45% to CREPAC/BORPAC (State)
30% Local BORPAC (Local)

Corporate Contributions
15% CREIEC
51% CREPAC/BORPAC
34% Local BORPAC

Professional Standards
1. Last year the Professional Standards Committee approved, subject to NAR approval, a citation policy for Code of Ethics violations that is similar to the citation policy already used by MLS's for MLS Rules violations.  It was reported to the Committee that NAR has advised C.A.R. that the policy is in compliance with NAR policy.  Accordingly, rules and a model citation schedule for the new citation policy will be prepared and provided to the local associations as soon as possible. 
 

Property Management

1. That C.A.R. "OPPOSE UNLESS AMENDED" SB 1598 (Padilla), Landlord Authority to Restrict Smoking on Rental Properties.  The amendment would remove any implication that a smoker's tenancy could not be terminated during a 12 month start-up period.

Standard Forms Advisory
The Standard Forms Advisory Committee received reports from 5 Regional Representatives.  The Committee approved the creation of a Buyer's Inspection Election (BIE) form for possible release in November 2008.  The Committee also approved release of a stand alone Declaration and Proof of License (DPL) form in anticipation of the November 2008 release.  The Committee heard a preliminary report from the Commercial Forms Study Group.  The study group is in the process of revising existing commercial forms and preparing drafts for the SFAC of the following forms:
--Bill of Sale
--Release Agreement
--Confidentiality and Non-Disclosure Agreement
--Environmental Issues Addendum

The Standard Forms Advisory Committee also heard a report from the Standard Forms/WINForms joint study group.  The Committee approved the recommendation made in the Study Group report that it is not necessary for C.A.R. to retain printed versions of every single form.  In light of this recommendation, the SFAC approved making the Database Disclosure (DBD) form available via WINForms only.  The Committee will also review their recommendation that silent revisions should be immediately effective via WINForms Online within a follow up conference call.   

Finally, the Standard Forms Advisory Committee received 79 comments.  On a conference call in May, the Committee reviewed 35 comments received since the January 2008 meeting.  The committee reviewed the balance of the comments in June 2008.  
 

Strategic Planning & Finance

1. That the Statement of Income and Expenses by program for the three months ending March 31, 2008 be approved. 
 

Total C.A.R.

Revenue of $19,004,700

Expenses of $ 5,169,700

An excess of income over expenses of $13,835,000 
 

Political Activities Fund

An excess of income over expenses of $2,432,000

Issues Action Fund
An excess of income over expenses of $1,299,400

The C.A.R. Balance Sheet as of March 31, 2008
Total assets of $71,881,800 (of which $53,203,100 are current assets)
Total liabilities of $6,487,300 (of which $6,242,100 are current liabilities)
C.A.R. Fund Balance of $65,394,500

2. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2008 be approved.

Total C.A.R.
Revenue of $27,301,200
Expenses of $26,300,700
An excess of income over expenses of $1,000,500  

Political Activities Fund

An excess of income over expenses of $1,862,100

Issues Action Fund

An excess of income over expenses of $714,400.  This amount will be allocated to IMPAC as approved by the Directors. 
 

3. That the audited Statement of Income and Expenses by program for the twelve months ending December 31, 2007 be approved. 
 

Total C.A.R.

Revenue of $33,831,800

Expenses of $26,798,900

An excess of income over expenses of $7,032,900

Political Activities Fund
An excess of income over expenses of $1,360,700

Issues Action Fund
An excess of income over expenses of $1,150,500
This amount will be allocated to IMPAC as approved by the Directors.  

The C.A.R. Balance Sheet as of December 31, 2007

Total assets of $54,915,700 (of which $36,095,900 are current assets)

Total liabilities of $4,427,400 (of which $4,207,800 are current liabilities)

C.A.R. Fund Balance of $50,488,300

4. To approve an augmentation to the 2008 capital budget in the amount of $25,000 to replace the main waterline from 2nd floor restrooms to 4th floor restrooms and repair walls as necessary as a result of the pipe replacement in the C.A.R. headquarters building in Los Angeles.

5. To raise awareness among members and consumers about environmental issues, encourage the green initiative of C.A.R. business practices, and foster the longer-term impact among members and consumers, C.A.R. approves $155,700 to fund C.A.R.'s Green Initiative, of which $51,000 was approved by the C.A.R officers before this meeting.

6. It was reported for information only that, in keeping with our efforts to establish a trusted public site, C.A.R. will work in conjunction with NAR on their forthcoming national consumer website to add California-specific content and explore opportunities for increasing our members' value proposition and exposure to consumers.

Other

1. That C.A.R. rescind its policy adopted in October 2007 to "SPONSOR" SB 1054 (Machado) and adopt a position of "OPPOSE UNLESS AMENDED."  The amendment would eliminate the provision currently in the legislation which would preclude an individual licensee who provides an opinion of the value of a residential real property from taking a listing on that property within 12 months.