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2006 Meeting Minutes

Iowa Real Estate Commission
1920 SE Hulsizer Road
Ankeny, IA 50021

July 13, 2006

MINUTES

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

Others Present: Roger Hansen, Executive Officer; John Lundquist, Assistant Attorney General; Dave Batts, Compliance Officer; Jeff Evans, Auditor; Sylvia King, Staff; Sandy Malek, Staff; Susan Griffel, Staff and Penny Waters, Staff.

Public: Paul McLaughlin (Iowa Association of Realtors).

The meeting was called to order at 9:03 a.m.

CLOSED SESSION

Motion made by Berry, second Dawley, to enter into closed session pursuant to Iowa Code 21.5(1)(a) and 543B.52(1) for real estate applications and 21.5(1)(d) and 21.5(1)(f) to discuss informal settlements, consent agreements/orders, finding of fact, decision and order and open cases. Roll call vote as follows: Hughes, aye; O'Neill, aye; Marple, aye; Dawley, aye; Diehl, aye; Daniels, aye and Berry, aye. Commission entered into closed session at 10:36 a.m. and returned to open session at 11:52 a.m.

INFORMAL SETTLEMENTS

Motion made by Dawley, second Berry, to accept informal settlements in Cases 04-156, 06-062, 06-046, A06-007, 05-112, 06-077, 06-051, 06-072, 06-047, 05-170, 06-049, 06-075, 06-002, 06-063, 06-044, 06-070, 06-054 and 06-065. Motion carried unanimously.

FINDING OF FACT, DECISION AND ORDER

Motion made by Dawley, second Daniels, to accept Findings of Fact, Decision and Order on Cases 06-021 (as amended) and 03-147. Motion carried unanimously.

CASE REVIEW

Motion made by Dawley, second Berry, to close Cases 06-073, 06-091, 06-096, 06-100, 06-102, 05-114, 05-169, 06-101 and A06-011. Motion carried unanimously.

Motion made by Dawley, second O'Neill, to find probable cause on Cases 06-085, 06-088, 06-040, 06-078, 06-080, 06-087, 06-089, 06-092, 06-093, 06-099, 06-103, 06-112, 06-061, 06-086, 06-107, 06-114, 06-121, 06-044 and A06-012. Motion carried unanimously.

Motion made by Dawley, second Berry, to approve salesperson applications on Cases 06-098, 06-064. Motion carried unanimously.

MINUTES

Motion made by Daniels, second Berry, to approve May 25, 2006, minutes. Motion carried unanimously.

MEETING SCHEDULE

Future IREC meetings are scheduled as follows:

Commission Meetings: Investigative Committee Meetings:

Thursday, September 14, 2006 Wednesday, September 13, 2006
(Hughes, O'Neill and Marple)
Thursday, November 2, 2006 Wednesday, November 1, 2006
Thursday, December 7, 2006 Wednesday, December 6, 2006

CONSENT TO SALES AND LEASES OF GOODS AND SERVICES

Lundquist briefed Commission members on Iowa Code Section 68B.4 and the selling/leasing of goods or services by officials and employees of regulatory agencies, which was amended last session. He then brought attention to Iowa Administrative Code 193E, Chapter 11, which regulates all licensing boards in the division, emphasizing the conditions under which sales of goods or services are permitted and prohibited. The net result for Commission members was a form entitled "Consent to Sales and Leases of Goods and Services", which grants consent for the sell or lease of goods and services under prescribed conditions. Following discussion, Dawley moved, second Berry, to direct O'Neill to sign the consent form. Motion carried unanimously.

COMMUNICATION

Hansen directed attention to a correspondence received from Eric Townsend of Nationwide Realty Resources, Inc., which asked for clarification of 543B.60.A pertaining to inducements. The plan presented appears to be an example of a referral-type networks offering rebates, inducements, benefits, etc., that are contingent upon the consumer using a specific broker, which is a violation of the statute. After discussion, the Commission agreed to direct Hansen to prepare a letter citing the statute.

ASSISTANT ATTORNEY GENERAL'S REPORT

Lundquist directed attention to proposed language change to question 10a on the real estate salesperson and broker application to further clarify past criminal history. He added the new application should be the only application accepted by the Commission. After discussion, Commission members agreed to the proposed changes with a suggested implementation date of sixty days following publication and distribution of the new form.

STAFF REPORTS

Griffel stated the PSI examination contract is up for renewal June 2007, and will be put out for bid. She asked that three Commission members form a committee to select a contractor once the RFP (prepared by the Attorney General's office) is complete. Daniels, Diehl, Dawley, O'Neill, Marple and Berry volunteered to serve on the committee as necessary.

She added she attended the Real Estate Education Association's conference in Las Vegas, Nevada in June 2006. Highlights included predictions on need for changes in pre- and post-license education. Griffel will continue to meet with professionals, educators and industry to evaluate the current requirements and make recommendations based on other states' criteria and performance and call upon a committee when necessary.

Malek reported fingerprinting and investigation statistics remain consistent. She added continuing education audits would continue at the rate of 30-40 per month.

Evans distributed a written report detailing statistics on audits conducted.

Batts reported the number of complaints and cases are significantly higher since last year.

Hansen reported the Division is officially a Bureau under the Division of Banking effective July 1, 2006. No major administrative changes are foreseen. He also updated Commission members on the Bureau's ongoing renovation project.

Hansen added that he, Lundquist and O'Neill will attend the next scheduled ARELLO conference in July 2006.

PUBLIC COMMENT

McLaughlin reported the IAR golf outing is scheduled for July 24, 2006, in Marshalltown with all proceeds to benefit the foundation.
He added that during a recent committee meeting, the issue of predatory lending was raised with a clear need for intervention from the banking superintendent.

He concluded by stating the IAR's education director is willing to assist the Commission with any issues concerning pre- and post-license education and would volunteer to serve on the committee.

MEETING ADJOURNED

Motion made by Diehl, second Marple, to adjourn. Motion carried unanimously. Meeting adjourned at 12:00 p.m.

 

 

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