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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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