CALIFORNIA ASSOCIATION OF REALTORS®
BOARD OF DIRECTORS
511^th SESSION
OCTOBER 8 - 9, 2004

The following is a summary of the significant action items approved by the CALIFORNIA ASSOCIATION OF REALTORS® Board of Directors at its October 2004 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.

Association Executives
1. It was reported for information only that a REALTOR®.COM "Users Group" will be formed to be comprised of Association Executives and REALTOR® members to engage in dialog and help ensure quality performance of the new REALTOR®.COM Marketing Program.

Award Selection
1. To approve the selection of Richard Sax, San Francisco, as the recipient of the 2004 California Distinguished REALTOR® Award, the highest recognition that C.A.R. can bestow on a member.

C.A.R. Scholarship Foundation
1. It was reported for information only that funds were awarded for scholarships totalling $9,500, and that perpetual funds have been established in memory of Annette A. Henderson-Balmer and in memory of Julia "Deede" Keller.

California REALTOR^® EXPO Advisory
1. It was reported for information only that total attendance at the California REALTOR® EXPO was approximately 8,400.

Common Interest Development
1. That C.A.R. support legislation requiring homeowner associations to disclose to homeowners the sources and qualifications of those sources that provided information regarding the replacement cost and useful life of associations' reserve account statements. 

Communications Advisory
1. It was reported for information only that 2005 will be C.A.R.'s 100th Anniversary.

CREPAC Trustees
1. That C.A.R. approve the following slate of nominees for CREPAC Trustee and Alternate:

Nominees for CREPAC Trustee
(November 2004 - November 2007)
Le Francis Arnold, Region 22
Wendy Furth, Region 18
Dawn O'Rourke, Region 1
R. Chris Osteen, Region 29
John Scarborough, Region 12

Nominees for CREPAC Alternate
(November 2004 through November 2005)
Anthony Agurs, Region 30
Steve Goddard, Region 21
Dorothy Jackson, Region 6
Richard Kato, Region 20
Dennis Mason, Region 2
Paul Stewart, Region 19
Mike Teer, Sr., Region 14
Irma Vargas, Region 17
Judy Zeigler, Region 28

Federal Issues
1. That C.A.R., in conjunction with NAR, support the inclusion of the following criteria for Base Realignment and Closure (BRAC):
a. research, development, and testing; and
b. community impact.

Foreign Language Task Force
1. That C.A.R. authorize the sum of $50,000 to translate and make available the C.A.R. Residential Lease/Month-to-Month Rental Agreement (C.A.R. Form LR) into the five languages required by Civil Code section 1632, namely, Spanish, Chinese, Korean, Tagalog and Vietnamese.
2. That C.A.R. authorize the sum of $80,000 to be used for the creation and translationin Spanish, Chinese. Korean, Tagalog and Vietnamese of a C.A.R. publication explaining in non-legal, non-technical terms the Residential Purchase Agreement and other C.A.R. Standard Form documents typically used in the sale of residential real property.

Housing Opportunity
1. That C.A.R. co-sponsor legislation to amend the state's density bonus law to:
a) repeal existing law requiring developers to prove economic viability of housing developments to local governments and;
b) provide for a laundry list of incentives and concessions from which a developer may select.
2. That C.A.R. co-sponsor legislation to remove the sunset dates from the "Anti-Nimby" law and "no net loss" housing law which provide for attorney's fees to the prevailing plaintiff.
3. That C.A.R. co-sponsor legislation to broaden the application of "build-by-right" standards to housing developments.
4. That C.A.R., in conjunction with NAR, "SUPPORT" expanding the definition of small bank for Community Reinvestment Act purposes to one billion dollars and add a community development requirement that includes investment and service criteria.
5. It was reported for information only that the Housing Opportunity Committee decided to take a "Neutral" position on the issue of expanding the definition of "Community Development" for Community Reinvestment Act purposes to include "individuals who reside in rural areas."

IMPAC Trustees
1. That C.A.R. approve the following slate of nominees for IMPAC Trustee and Alternate:

Nominees for IMPAC Trustee
(November 2004-November 2007)
Richard Sax, Region 8
Brian Malone, Region 13
Evelyn Arnold, Region 22
Jeanne St. Clair, Region 23
Marjorie McLaughlin, Region 24

Nominees for IMPAC Alternate
(November 2004-November 2005)
Peter Morris, Region 3
Terry Wunderlich, Region 4
Mary Chatton Brown, Region 5
Dale Gray, A.E., Region 7
Sherry Tietjens, Region 12
Carol Facciponti, Region 16
Les Fishman, Region 21
Heather Benson, Region 29
Jim Irving, Region 31

2. It was reported for information only that the IMPAC Trustees approved the following contributions:
--Citizens for Improved Transportation: Yes on Measure J, to support a transportation sales tax measure that will appear on the November 2004 ballot in Santa Cruz County, pursuant to the request of the Santa Cruz Association of REALTORS®...$10,000.
--The California Natural Resources Group (CNRG), an advocacy/education coalition focused on state and federal endangered species issues -- including critical habitat designations and the proposed listing of species -- that identifies the onerous regulatory burdens and costs placed on businesses, property owners and local governments...$20,000.

Inclusionary Zoning Task Force
1. That C.A.R. reaffirm its opposition to mandatory forms of inclusionary zoning.  Inclusionary zoning dwellings built as a result of a government mandate shall not be included in a local government's fair share allocation.  When affordable housing is built, the home builder shall voluntarily construct the units, the costs of subsidy shall be equitably borne, owners of the affordable units shall receive information about homeownership as a prerequisite, and owners shall always receive their fair share of the equity growth and recover their costs of their real property improvements, downpayment and costs of sale.  Finally, C.A.R. reaffirms the provisions of the Costa Hawkins Act, most notably the new construction exemption.

Legal Action Fund
1. That in light of ongoing developments in the Freeman cases, $500,000 be transferred to the Legal Action Fund; and that C.A.R. request up to $350,000 from the N.A.R. Legal Action Fund to further supplement the case.
2. It was reported for information only that the Legal Action Fund Trustees approved an allocation of up to $500,000 to fund lead counsel in the Freeman II and Hemphill cases on an equal cost sharing basis with the local Associations and Sandicor.  Funding does not include costs of local counsel.
3. It was reported for information only that the Trustees approved an additional $20,000 for Freeman v. Lasky (Freeman III).  This case was dismissed but Barry appealed.  The appeal is scheduled for hearing in 2005.
4. It was reported for information only that the following developments had taken place in other significant cases being tracked by the Legal Action Fund Trustees:
--Sterling v. Taylor.  Authorized an amicus brief in the case of Sterling v. Taylor, currently pending before the California Supreme Court supporting the concept thatoutside evidence may be used to interpret essential elements of a written contract but no create missing terms entirely.   This was a statute of frauds case.
--Coldwell Banker Residential Brokerage v. Superior Court (Salazar).  This case held that a real estate broker who is not and never has been in control of physical premise of a home should not be responsible for injuries of occupants with whom the broker has no agency or other legal relationship.  Specifically, the broker hasduties to the buyers but not their minor children.  The Trial Lawyers petitioned the California Supreme Court to depublish this case.  C.A.R filed a opposing the Trial Lawyers and supporting the continued publication of this favorable case.  The case will remain published.
--Ellingwood v. Rand.  Authorized filing an amicus brief supporting the concept that real estate brokers should not be held liable to nonparties to a real estate contract.  This involved the children and grandmother but is essentially the same concept as the Salazar case.
--West v. Taylor & Goins.  Authorized an amicus brief supporting the plaintiff/listing broker's position in the malicious prosecution case against an attorney that hadno probably cause to add the listing broker as a defendant to a lawsuit. 
--Cemex v. County of Los Angeles.   Authorized filing an amicus brief supporting the City of Santa Clarita in their fight against an expanded mining operation on the issue that federal preemption of local land use and environmental restrictions should not be permitted without affording due consideration and opportunity for involvement by the responsible local government agencies and other affected parties. 
--Business License Tax.  Funded obtaining an outside legal opinion on the issue of city license taxes that tax gross revenue of the brokers and then the salesperson's revenue on the same transaction, resulting in a double tax on the samerevenue.  The opinion was to assist local AOR' fighting onerous city business license taxes.

Legislative
1. That C.A.R. sponsor legislation to require a 4 hour mandatory continuing education course in Risk Management.
2. That C.A.R. sponsor legislation to create a statutory requirement for 60 days notice of a claim to a broker who is a prospective defendant before a lawsuit can be filed. 
3. That C.A.R. sponsor legislation to create, or advance administratively, a change inrequirements for the reporting of claims to insurers to allow a 60 day "window" period in which to resolve a claim before it can be counted against a broker's or real estate firm's claims/loss history, provided the settlement does not result in payment by the insurer.
4. That C.A.R. sponsor legislation to create a "certificate of merit" requirement for lawsuits against real estate licensees modeled after the existing rule for Architects and Engineers. The rule should include standards for experts that include licensure, current practice and management experience.
5. That C.A.R. adopt the following positions on the November 2004 Ballot Propositions:
Proposition 1A: Protection of Local Government Revenues -- "FOR"
Proposition 59: Public Records, Open Meetings -- "NOT REAL ESTATE RELATED"
Proposition 60: Election of Political Parties -- "NOT REAL ESTATE RELATED"
Proposition 60A: Surplus Property -- "NOT REAL ESTATE RELATED"
Proposition 61: Children's Hospital Projects -- "NOT REAL ESTATE RELATED"
Proposition 62: Elections and Primaries -- "NOT REAL ESTATE RELATED"
Proposition 63: Mental Health Services -- "NOT REAL ESTATE RELATED"
(Proposition 64: Private Enforcement of Unfair Business Competition Laws. -- "FOR"
See Note Below)
Proposition 65: Local Government Funds, Revenues. State Mandates. Initiative Constitutional Amendment -- "NEUTRAL"
Proposition 66: Limitations on "Three Strikes" Law -- "NOT REAL ESTATE RELATED"
Proposition 67: Emergency Medical Services -- "NOT REAL ESTATE RELATED"
Proposition 68: Non-Tribal Commercial Gambling Expansion -- "NOT REAL ESTATE RELATED"
Proposition 69: DNA Samples -- "NOT REAL ESTATE RELATED"
Proposition 70: Tribal Gaming Compacts -- "NOT REAL ESTATE RELATED"
Proposition 71: Stem Cell Research -- "NOT REAL ESTATE RELATED"
Proposition 72: Health Care Coverage Requirements -- "NOT REAL ESTATE RELATED"

Note: In January 2004 the C.A.R. Board of Directors adopted a "FOR" position on Proposition 64: Limits on Private Enforcement of Unfair Business Competition Laws.

6. It was reported for information only that the staff will prepare an Issues Briefing Paper exploring options for changing the unworkable bonding requirement that applies to agents of equity purchasers, for discussion at the January 2005 meeting.

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

Alameda AOR
Lois Jean Hoffman

Arcadia AOR
Bie Nio Hacking
Ben Parker

Bay East AOR
William Adcook
Roy W. Truax

Big Bear AOR
Wilma E. Peery

California Desert AOR
Trudi Greig

Central Valley AOR
Dean D. Russell

Chico AOR
John Gered McLaughlin

Contra Costa AOR
Ray Lehmkuhl
Shirley Nankin
Bill Schardt

Kings County BOR
Daniel Humason

Lake County BOR
May Noble
Patty Patten

Marin AOR
John Levinsohn
Rocky V. Welczeck

Monterey County AOR
Anne Feeney
Jean Fournier
Marta O'Mary
James Pagnella

Newport Beach AOR
Betsy Boyd

North Bay AOR
Malin Campbell
Donald Davis
Jeanne Lewis
Monica Mc Kechnie
Eileen L. Roach

OjaiValley BOR
Ian D. Atkinson

Orange County AOR
Joanne Matthews Brunson
Arthur Landwald

Pacific West AOR
Estelle Dellegatti
Harriet J. Vanne'

Palm Springs Regional AOR
Madeline S. Brechlin

Pasadena-Foothills AOR
Jane Caughey
Anna Jane Reiz
Edla Scharre

Sacramento AOR
Emil L. Bader
Ralph Baker
John W. Quinn

Santa Barbara AOR
Patricia Macomber

Santa Cruz AOR
Bess Franich

Shasta AOR
James Bauman
Jack Golenor
George Theobald

Southland Regional AOR
Robert E. Davis
Kenneth C. Kelly
Annette Levine

Sutter-Yuba AOR
Bettie A. Fuller
Billie Single
Clark Y. Tokunaga

Tahoe Sierra BOR
Robyn Falster Genest

Political Affairs
1. That C.A.R. add a $197 "True Cost of Doing Business" option to the dues billing statements prepared for local associations, in addition to the current $49 Political Survival option, effective for the 2006 dues billing cycle.

Professional Standards
1. It was reported for information only that C.A.R. reaffirms its position in opposition to NAR's imposition of a mandatory policy limiting the Grievance Committee's ability to carry an Ethics Complaint forward after it has been withdrawn by the original complainant.
2. It was reported for information only that at the June 2004 meetings, C.A.R. adopted an official position opposing mandatory mediation.  As a result, C.A.R. sent a letter to NAR, advocating to NAR that NAR not amend Article 17 to require REALTORS® to mediate otherwise arbitrable disputes, but, instead, to amend the Preamble to encourage members to mediate prior to arbitration.  C.A.R.'s letter was considered by the Rules and Interpretations Subcommittee, at their September meeting.  The Subcommittee decided to take no action regarding making mediation mandatory under Article 17, but, instead, to recommend more activity promoting the use of mediation.
3. It was reported for information only that at the June 2004 meetings, C.A.R. adopted an official position on the issue of allowing individuals to testify or appear at a professional standards hearing via telephone, videoconference or other electronic means.  As a result, C.A.R. sent a letter to NAR, advocating that NAR not amend policy to prohibit "remote" testimony at ethics and arbitration hearings.  C.A.R.'s letter was considered by the Rules and Interpretations Subcommittee at their September meeting.  The Subcommittee is recommending to the Professional Standards Committee, at the November meeting, that the NAR rules be amended to allow remote testimony in certain circumstances.
4. It was reported for information only that at the June 2004 meetings, C.A.R. adopted an official position opposing NAR's mandatory policy that required revisions to the California Code of Ethics and Arbitration Manual ("Manual").  Those revisions limited the Grievance Committee's ability to carry forward, as the complainant, a withdrawn Ethics Complaint to those times when the allegations constituted a possible violation of public trust. As a result, C.A.R. sent a letter to NAR asking NAR to reconsider and rescind the policy.  C.A.R.'s letter was considered by the Rules and Interpretations Subcommittee, at their September meeting.  C.A.R.'s request was denied.  Subcommittee said they would reconsider when documentation of actual undesirable outcomes was provided.

Property Information/MLS Task Force
1. It was reported for information only that, as a result of the development of the Intelligent Agent (patent pending) data retrieval technology, an opportunity has been identified to develop a product that will allow a user to view MLS listing information from one or more MLS's from a single source, while still maintaining each MLS's control of its own data, identity, and independence.  The Property Information/MLS Task Force recommends that C.A.R. proceed with developing this product.  This product development would be funded from existing Intelligent Agent development funds, with an estimated cost of $125,000.

Property Management
1. That C.A.R. support legislation that promotes homeownership opportunities through voluntary conversion of rental units.

Real Estate Business Services
1. That the following slate of nominees for a two-year term on the REBS Board of Directors be approved, and that the C.A.R. President be instructed to elect these individuals on behalf of C.A.R.

REBS Directors Elected for 2005 - 2006:
Alan Arora, Los Angeles, Chief Executive Officer, Real Estate Business Services
Annette Graw, Manhattan Beach, Broker, South Bay Brokers
Dianne McMillan, Vista, Association Executive, North San Diego County Association of REALTORS^®
Gary Thomas, Aliso Viejo, Broker/Owner, RE/MAX Real Estate Services

The following REBS Directors have continuing terms through 2005:
Richard Genari, Greater Antelope Valley, Owner, AT Realty
Becky Gould, Novato, Broker/General Manager, Frank Howard Allen Co.
Rick Hoffman, San Diego, President/CEO, Coldwell Banker Associates Realty
Bob Kulick, Santa Clara, Broker/Owner, NOVA Investment Realty
Joel Singer, Los Angeles, Executive Vice President, California Association of REALTORS^®

Strategic Planning & Finance
1. That C.A.R. allocate matching funds to the Housing Affordability Fund for the 2004 calendar year fundraising cycle, in an amount equal to the gross dollars raised by the HAF and not to exceed $500,000.
2. That C.A.R. create a "Defense Strategy Advisory Committee" to include 11 members as follows:
 - The Chair, Vice Chair or member of Association Executives Committee;
 - The Chair, Vice Chair or member of Consumer Protection Forum;
 - The Chair, Vice Chair or member of Legal Action Fund;
 - The Chair, Vice Chair or member of Legislative Committee;
 - The Chair, Vice Chair or member of the Standard Forms Advisory Committee; and,
 - 6 directors to serve as members at large to serve staggered 3-year terms.
3. To approve a 2005-2007 strategic plan and 2005 budget with the following criteria:
 - C.A.R. Revenue $24,609,000
 - C.A.R. Cost $23,071,800
 - Net Surplus $1,537,200
 - Political Activities Fund Revenue $1,506,600.
 - Issue Action Fund Revenue $1,506,600
 - Issue Action Fund Costs $770,600
 - Issue Action Fund Transfer to IMPAC $736,000
 - 105 budgeted C.A.R. staff positions.
 - Membership dues, including $115 for operating programs, $10 for the Political Activity Fund and $10 for the Issues Action Fund, are set at a total of $135 per member (predicated on 2005 year end membership of 162,800).
 - A 2005 Capital Budget (funded with Association reserves) totaling $381,800.

4. To approve for members in areas not serviced by local associations an additional $30 in membership dues.  This amount would be in excess of the dues approved for members coming through the local associations.
5. To approve a 2004 budget augmentation with the following criteria:
--That $314,000 be approved for an additional four percent pension contribution to the C.A.R. and REBS employee pension plan for 2004, augmenting the previously approved budget of ten percent.
--To approve a capital expenditure for Headquarters Building Improvements totaling $917,000.
6. That the Association's Audited Financial Statements as of August 31, 2004 be approved:
The Statement of Income and Expenses for the eight months ending August 31, 2004.
Total C.A.R.
--Revenue of $19,797,900
--Expenses of $13,172,800
--An excess of income over expenses of $6,625,100
Political Activities Fund
An excess of income over expenses of $953,200
Issues Action Fund
An excess of income over expenses of $890,600
The C.A.R. Balance Sheet as of August 31, 2004
Total assets of $30,340,500 (of which $22,698,900 are current assets)
Total liabilities of $4,983,400 (of which $4,004,600 are current liabilities)
C.A.R. Fund Balance of $25,357,100

7. That the Projected Statement of Income and Expenses by program for the year ending December 31, 2004 be approved.
Total C.A.R.
--Revenue of $22,958,500
--Expenses of $21,536,500
--An excess of income over expenses of $1,422,000
Political Activities Fund
An excess of income over expenses of $548,100
Issues Action Fund
An excess of income over expenses of $677,900. This amount will be allocated to IMPAC as approved by theDirectors.

Taxation
1. That C.A.R. appoint a task force to gather additional information before making a decision on whether to sponsor statewide legislation to resolve the local business license tax issue presented by the Beverly Hills/Greater Los Angeles Association of REALTORS®.

Other
1. That Staff be directed to schedule the Legislative Day/Directors Meetings in late April/early May timeframe at the earliest possible Sacramento Convention Center and adjacent hotels availability.

The following special awards were presented at the Board of Directors Session:

2004 Outstanding Committee Chairs
Association Executives: Sandy Haney    
Association Presidents, Leadership Forum: Bill Brown
Award Selection: Carolyn D'Agosta
California REALTOR® EXPO Advisory: Marie Thomas
C.A.R. Leadership Development Forum: Curt Cournale
C.A.R. Scholarship Foundation Trustees: Mark Consalvo
Commercial Investment: Bob Rosenberg       
Common Interest Development: Malcolm Bennett     
Communications Advisory: Bill Podley       
Credentials: Ann Bracci
CREPAC Trustees: Paula Colombo
Educational Services Advisory: Mickey Knickerbocker     
Equal Opportunity- Cultural Diversity: Ron Burkhart   
Federal Issues: John Cribb        
Housing Opportunity: Marjorie McLaughlin
Housing Affordability Fund: Ben Heinrich
IMPAC Trustees: Matt Giacalone        
International Real Estate Forum: Dianne Rath       
Land Use and Environmental: Art Nellessen       
Legal Action Fund Trustees: Kevin Walsh
Legal Affairs Forum: Bill Jansen
Legislative: Beth Sommer Peerce
Local Governmental Relations: Virginia Butler
Manufactured Housing: Kay LeMenager     
Membership: Betty Taisch
MLS/Computer and Business Technology: Bob Hart
Nominating: Gary Thomas
Political Activities Fund: Candice Carpenter
Political Affairs Committee: Mary Funk       
Professional Standards: Darrell Sparks
Property Management: Bill Horne
Real Estate Finance: Greg Galli       
REALTOR® Risk Managementand Consumer Protection Forum: Bob Curtis       
Regional Chairs: Jim Hamilton
Rural Forum: Carol Banner
Sergeant at Arms: Larry Fargher
Standard Forms Advisory: Judith Myers        
Strategic Planning and Finance: Colleen Badagliacco
Taxation: J. Michael Roberts

2004 Committee Liaison Awards
Dick Gaylord, Association Leadership
Pat Fredericks, Industry Information & Membership Services
Jeanette Henderson, Industry Information & Membership Services
Bill Sloan, Legal Issues & Information
Rick Otterstrom, Political
Don Faught, Public Policy
Leslie Munger, Public Policy