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2006 Meeting Minutes

Iowa Real Estate Commission
1920 SE Hulsizer Road
Ankeny, IA 50021
January 12, 2006
MINUTES

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

Not Present: E. Karl Reichert

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

Public: Paul McLaughlin (Iowa Association of Realtors).

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

REQUEST FOR WAIVER OR VARIANCE FROM ADMINISTRATIVE RULES

The Commission considered a request by Scott Thomas for waiver or variance from Administrative Rule 193E 3.3 (543B) to extend the deadline for expiration of a broker examination passing score. Thomas failed to appear for a 9:00 a.m. personal appearance he had requested. After discussion, Daniels moved, Diehl second to deny the application. Motion carried unanimously.

CLOSED SESSION

Motion made by Marple, second Daniels, 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; Diehl, aye; Dawley, aye and Daniels, aye. Marple recused himself from all discussion and voting from Cases 05-107 and 05-151. Commission entered into closed session at 10:37 a.m. and returned to open session at 1:01 p.m.

INFORMAL SETTLEMENTS

Motion made by Marple, second Dawley, to accept informal settlements in Cases A05-020, 05-116, 04-147, A05-016, A05-015, 05-058 and 04-055. Motion carried unanimously.

FINDINGS OF FACT, DECISION AND ORDER

Motion made by O'Neill, second Marple, to accept "Findings of Fact, Conclusions of Law and Order" on Case A05-010 as written. Motion carried unanimously.

CASE REVIEW

Motion made by Dawley, second Daniels, to close Cases 05-163, 05-164,
05-174, 05-175, and 05-176. Motion carried unanimously.

Motion made by Dawley, second O'Neill, to find probable cause on Cases
05-100, 05-105, 05-107, 05-151, 05-178, A05-025 and A05-024. Motion carried unanimously.

Motion made by Daniel, second Diehl, to deny salesperson application in Case 05-119. Motion carried unanimously.

MINUTES

Motion made by Marple, second O'Neill, to approve December 14, 2005 minutes. Motion carried unanimously.

MEETING SCHEDULE

Future IREC meetings are scheduled as follows:

Commission Meetings: Investigative Committee Meetings:

Thursday, March 2, 2006 Wednesday, March 1, 2006
(Dawley, Marple and Reichert)
Thursday, April 13, 2006 Wednesday, April 12, 2006
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

PUBLIC COMMENT

McLaughlin reported he'd received a question concerning bare lots and the Sellers Property Condition Disclosure requirement.

McLaughlin then reviewed and distributed a draft of the two education changes that have been proposed by the IAR. The first is that newly licensed salespersons take the required buying and listing practice courses within the first twelve months of licensure as opposed to the first thirty-six months as is currently required. Second, to allow for a maximum of twenty-four home study credits if at least twelve of the hours are by electronic courses (current limit is eighteen hours with no provision for electronic courses versus home study courses).

McLaughlin stated offices are using CD-ROM to maintain office records as opposed to holding paper copies, and asked if the Commission had a stance on the issue. Hansen stated that when the issue was addressed in the past, the Assistant Attorney General determined a CD-ROM was acceptable as long as it was used as a back-up and not as the original file. Lundquist stated that he would look into the legal issues and get back to the Commission.

McLaughlin then stated current legal issues before the IAR include distribution of education funds, septic tank regulation, and internet advertising.

In closing, McLaughlin stated the next Legislative bus-in day is scheduled for February 22, 2006 for anyone interested.

COMMISSIONER REPORTS

Hughes reported he and Hansen appeared on the program for a meeting of the Cedar Valley Board of Realtors in December. The meeting was well attended. No major issues or concerns of note.

Marple reported he had addressed members of his local association and firm regarding implementation of the new item required to be included in the Sellers Property Condition Disclosure form.

Daniels mentioned the Des Moines Water Works practice of placing liens on properties due to non-payment of past-due bills affects buyers, which she and others are attempting to resolve by communicating directly with water works officials.

STAFF REPORTS

Hansen reported progress continues on the Division's renovation project.

Batts reported 187 complaints were filed in 2005. He added a large number of criminal histories have expired and will need to be redone, three salesperson applications have been denied, and several cases have been opened for nondisclosure of criminal history. He has also opened a case on a licensee who is undergoing criminal prosecution for fraud charges.

King reported approximately 4,100 of the 5,700 renewals mailed have been renewed, and 123 new salesperson and broker applications have been processed since January 3, 2006.

Malek reported 875 total background checks have been processed since the law implementation on July 1, 2006. 60 of the checks have expired. Email will no longer be used to notify Applicants when the criminal history has been received, written notification will be sent instead.

Griffel stated she is looking at other states continuing education and home study requirements to assist the Commission in reviewing the Iowa requirements. She is also putting together an overview of existing post-license education programs to determine if other changes should be recommended.

ASSISTANT ATTORNEY GENERAL'S REPORT

No report rendered.

MEETING ADJOURNED

Motion made by Marple, second Daniels, to adjourn. Motion carried unanimously. Meeting adjourned at 1:10 p.m.

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