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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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