Present: James Hughes, Chair; James O'Neill; Dorothy Woline; Laurie Dawley

Absent: Patty Daniels

Others present: Roger Hansen, Executive Officer; Pam Griebel, Assistant Attorney

General: Susan Griffel, Education Director; Sandy Malek, staff

Public: Paul McLaughlin, IAR

The meeting was called to order at 9:00 a.m. The hearing scheduled for 9:30 today has been continued.

Dawley moved, seconded by O'Neill, to go into closed session pursuant to Iowa Code 21.5(1)(d) and Iowa Code 21.5(1)(f). Roll call vote was as follows: Woline, aye; Dawley, aye; O'Neill, aye; Hughes, aye. Motion carried unanimously. The Commission entered into closed session at 9:01 a.m. and arose therefrom at 10:10 a.m. Recommendations from the investigative committee were discussed.

O'Neill moved, seconded by Woline, to close the following cases:

03-007 03-010 03-011 03-042
03-049 03-051 03-052 03-053

Motion carried unanimously.

Dawley moved, seconded by Woline, to find probable cause to file charges in case 03-029. Motion carried unanimously.

Dawley moved, seconded by O'Neill, to approve the decision and order with changes specified on case 02-025. Motion carried unanimously.

Woline moved, seconded by Dawley, to approve the salesperson application in case 03-044. Motion carried unanimously.

The Commission deferred consideration of the salesperson application case number 03-046 until the next regularly scheduled meeting because requested information has not been provided by the applicant.

Motion was made by Dawley and seconded by O'Neill to approve the minutes of the May 29, 2003 and June 24, 2003 meetings. Motion carried unanimously.

Future meetings are scheduled as follows:
August 27 investigative committee: O'Neill, Daniels
August 28 Commission Meeting

The Commission considered a request from Doug Hibbeler, President of Catalyst, Inc., for informal advice or opinion. Woline moved, seconded by Dawley, to advise Hibbeler that based on the information submitted, it appears the activities contemplated would require an Iowa real estate license. Motion carried unanimously.

The Commission considered a request from Janet Shipman for informal advice or opinion. Woline moved, seconded by Dawley, to advise Shipman that based on the information submitted, it appears the activities contemplated would require an Iowa real estate license. Motion carried unanimously.

The Commission considered a request by Gloria J. Ruesch for substitution of salesperson experience required for a broker license. Woline moved, seconded by Dawley to deny the request based on the information submitted. Vote as follows: Hughes, aye; Woline, aye; and Dawley, aye. O'Neill abstained. Motion carried.

The Commission discussed proposed rule changes filed as Notice of Intended Action ARC 2429B. Concern was expressed about a complaint filed with the Consumer Protection Division of the Iowa Attorney General questioning the legality of how the interest on trust accounts is being directed and the potential for public misunderstanding due to lack of clear disclosure. In view of this serious potential problem, more time is needed to determine if additional rulemaking is needed. Woline moved, seconded by O'Neill, to terminate the rule making process on Notice of Intended Action ARC 2429B. Motion carried unanimously.

The Commission discussed license fees. Language in HF 655 2003 eliminated the requirement that a percentage of any license fee increase be deposited into the Real Estate Commission Fund and required all license fees collected deposited into the General Fund, except for the percentages deposited into the Real Estate Education Fund. The Commission raised fees effective October 10, 2002 to generate funds for the Commission Fund to support an auditor, investigator, and staff needed to operate the agency effectively during years when receipts are up and down. If the Commission Fund is reestablished in the future, a fee increase would be needed at that time to be of benefit. The Commission feels this would be unjustifiable and a huge financial burden to licensees.

After much discussion, O'Neill moved, seconded by Woline, to adopt the fee schedule in effect prior to October 10, 2002 as follows: Salesperson, $75; Broker, $120; Firm, $120; Branch/tradename, $30; and no fee for certification of licensure. Motion carried unanimously.

O'Neill reported that he attended the ARELLO Central / Southern District Conference in June. The programs were informative and worthwhile.

Hansen informed the Commission that Kay Halloran has retired. Bill Schroeder is the acting Director.

Griebel provided a brief update on the Franich appeal.

Griffel reported on her attendance at the Real Estate Educator's Conference held recently in Philadelphia, PA.

Hansen reported that the Division is moving forward and trying to hire an auditor. He also attended the ARELLO Central / Southern District Conference in June and reported the program was very good.

Paul McLaughlin from the IAR reported that Craig Cheatham, EVP, for ARELLO is on the program for the IAR Fall Convention in Des Moines. The IAR is continuing to work with local boards on consolidating for efficiency and economic reasons.

Motion was made by Dawley and seconded by Woline to adjourn. Motion carried unanimously. Meeting adjourned at 12:25 p.m.

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