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2006 Meeting Minutes

Iowa Real Estate Commission
1920 SE Hulsizer Road
Ankeny, IA 50021
March 2, 2006
MINUTES

MINUTES

Present: James Hughes, Chair; James O'Neill, Dan Berry, Laurie Dawley and Donald Marple.

Not Present: Patty Daniels, Lori Diehl

Others Present: Roger Hansen, Executive Officer; Pam Griebel, Assistant Attorney General; Dave Batts, Compliance Officer; Jeff Evans, Auditor; Sylvia King, Staff; Susan Griffel, Education Director, and Sandy Malek, Staff.

Public: (Iowa Association of Realtors) Jo Jenkins, President, Martin Lee, CEO, Les Marquart, President-Elect, Mark Romig, VP / Treasurer, Dave Burt, Past President, and Paul McLaughlin, Attorney.

The meeting was called to order at 9:09 a.m.

INTRODUCTION OF NEW COMMISSIONER

Hansen introduced new Commissioner Dan Berry, a real estate broker from Iowa City, Iowa, who replaced E. Karl Reichert.

PUBLIC COMMENT

Lee reported on pending legislation concerning temporary licenses, which was unforeseen by IAR. Lee does not expect the legislation to pass, which was based on a single complaint by a constituent and is not backed by any professional organization.

Lee then reported that he's received several complaints from members of the Association concerning the new rule requiring disclosure of covenants and related problems and confusion. Discussion followed with Commissioners affirming numerous complaints relating to restrictive covenants had been received, which initiated the new rule. Hansen reported the requirement had only been in place approximately two months and the Commission would continue to monitor the issue and initiate further study if needed.

McLaughlin suggested forming a committee to discuss salesperson post-license education and recommended Kimber Davis from the education division of the IAR to serve.

McLaughlin then reported on pending legislation concerning disclosure of criminal history, denial of application based on certain crimes (fraud, theft, etc.) and parole status, mandatory arbitration for homebuilders prior to civil suits, lead-based paint grants, septic system regulation, small business healthcare, housing of sexual offenders, payment of referral fees and educational funding from license fees. He added that approximately 400 people attended the last legislative bus-in day.

Jenkins and Lee elaborated on the proposed legislative changes to University of Northern Iowa real estate education funding, stating that the proposal is backed by the Iowa Association of Realtors and intended to enable other state colleges and universities to take advantage of available funds.

SCHEDULED HEARING
CLOSED SESSION

Motion made by Dawley, second Marple, to enter into closed session pursuant to Iowa Code 21.52(1) and 21.5(1)"a" as required for the purpose of conducting the license denial hearing on Case 05-146. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye and Berry, aye. Motion carried unanimously. Commission entered into closed session at 9:34 a.m.

Administrative Law Judge John Priester conducted the hearing, which was recorded by Peterson Court Reporting Service, which commenced at 9:34 a.m. and concluded at 10:20 a.m. The meeting returned to open session at 10:20 a.m.

Motion made by Marple, second O'Neill, to enter into closed session pursuant to Iowa Code 21.5(1)(d) and 21.5(1)(f) to deliberate. Roll call vote as follows: Hughes, aye; O'Neill, aye; Dawley, aye; Marple, aye and Berry, aye. Motion carried unanimously. Commission entered into closed session at 10:20 a.m. and returned to open session at 10:46 a.m.

Motion made by Dawley, second Marple, to instruct the administrative law judge to draft Findings of Fact, Conclusions of Law, Decision and Order, in conformance with their deliberations. Motion carried unanimously.

REQUEST FOR EXEMPTION

Marple generated discussion on a request by William Gustoff, Attorney, Asbury, Iowa, for exemption, waiver, or variance from several licensing requirements to qualify for a broker license. It was determined that the requirements in question are required by law, not by rule, and as such the Commission cannot grant waiver or exemption. The information provided was not sufficient to support substitution of substantially similar experience for the two years salesperson experience, nor recent qualifying education to substitute for pre-license education. Marple moved, second Berry, to deny the request. Motion carried unanimously.

COMMISSIONER REPORTS

Hughes reported he and Hansen have been invited to be on the program for a scheduled Board of Realtors meeting in Sumner, Iowa, in March on a date to be determined.

ASSISTANT ATTORNEY'S GENERAL REPORT

Griebel stated the forms for statements of charges will change based upon a court decision concerning confidentiality. She added a bill on the issue is before the legislature for consideration with a decision forthcoming.

STAFF REPORTS

Griffel reported she will work with the IAR in the forming and conduct of an education subcommittee.

Malek reported she received a call from a representative of the FBI who will meet with her on April 4, 2006, concerning the background investigation process.

Malek added just over 1,100 fingerprint cards have been received to date, 110 of which never pursued licensure. Average total processing time is approximately 31 days. She added the primary reason for fingerprint rejection is improper printing procedures.

Hansen thanked the IAR representatives for their attendance at today's meeting.

Hansen reminded Commission members of an e-mail he sent identifying legislation of interest, or affecting the Commission. His report was abbreviated as nearly all proposed legislation had been mentioned previously by McLaughlin and others.

CLOSED SESSION

Motion made by Dawley, second Marple, to enter into closed session pursuant to Iowa Code 21.5(1)(d) and 21.5(1)(f) to discuss open cases. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye and Berry, aye. Motion carried unanimously. Commission entered into closed session at 11:35 a.m. and returned to open session at 12:25 p.m.

REAL ESTATE APPLICATIONS

Motion made by Dawley, second O'Neill, to defer action on the salesperson applications on Cases 06-013 to provide opportunity to pursue informal resolution. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye and Berry, aye. Motion carried unanimously.

Motion made by Dawley, second Marple, to approve salesperson application on Case 06-010. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye and Berry, aye. Motion carried unanimously.

Motion made by Dawley, second Marple, to deny salesperson reinstatement application on Case 06-020 and initial application on Case 06-021. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye and Berry, aye.
Motion carried unanimously.

INFORMAL SETTLEMENTS

Motion made by Dawley, second Berry, to accept informal settlements in Cases A05-017, 05-056, 05-111, 05-187, 05-144, 05-148, 05-120, A05-024, 05-107 and A05-025. Motion carried unanimously.

CASE REVIEW

Motion made by Dawley, second O'Neill, to close Cases A05-023, 05-179,
05-180, 05-177, 05-173, 05-182, 05-184, 05-185, 06-004, 06-006, 06-011,
06-015, 06-016, 06-017, 06-019 and A06-003. Motion carried unanimously.

Motion made by Dawley, second Berry, to find probable cause on Cases
05-181, 06-018, A06-001, A06-002 and A06-004. Motion carried unanimously.

MINUTES

Motion made by Marple, second Dawley, to approve January 12, 2006, minutes. Motion carried unanimously.

MEETING SCHEDULE

Future IREC meetings are scheduled as follows:

Commission Meetings: Investigative Committee Meetings:

Thursday, April 13, 2006 Wednesday, April 12, 2006
(Hughes, O'Neill, and Berry)
Thursday, May 25, 2006 Wednesday, May 24, 2006
Thursday, July 13, 2006 Wednesday, July 12, 2006
Thursday, September 14, 2006 Wednesday, September 13, 2006
Thursday, November 2, 2006 Wednesday, November 1, 2006

Thursday, December 7, 2006 Wednesday, December 6, 2006

COMMUNICATION

Hughes opened discussion on a letter received by Robert Reisinger, Cedar Falls Board of Realtors, concerning the new covenant disclosure requirement. Hansen referenced earlier discussion during public comments and the requirement is probably too new to amend. Education through newsletter publication was suggested.

MEETING ADJOURNED

Motion made by Dawley, second Marple, to adjourn. Motion carried unanimously. Meeting adjourned at 12:35 p.m.


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