MARYLAND REAL ESTATE COMMISSION



MARYLAND REAL ESTATE COMMISSION

500 North Calvert Street

Baltimore, MD 21202

Mission: Protecting the health, safety, and welfare of the public

through examination, licensing, and regulatory activities regarding real estate

BUSINESS MEETING MINUTES

MARCH 18, 2009, 10:30 a.m.

Highlights from the meeting:

Legislation in 2009 Session

Pirtle, Johnson appointed as Commissioners

Current license count 50,901

Bids solicited for exam contract

Davis joins O&P as outreach coordinator

Broker-to-broker e-notification of transfer

Alert! Brokers update your email address

PRESENT:

Commissioner J. Nicholas D’Ambrosia, Chair (Industry)

Commissioner Nancy R. Simpers, Vice Chair (Industry)

Commissioner Anne S. Cooke (Industry)

Commissioner Surina Jordan (Consumer)

Commissioner Robin L. Pirtle (Consumer)

Commissioner Colette P. Youngblood (Consumer)

Harry Loleas, Deputy Commissioner, O & P

Elizabeth Trimble, AAG, Counsel

Katherine F. Connelly, Executive Director

J. Steven Long, Assistant Executive Director

Patricia Hannon, Education Administrator, Session Recorder

ABSENT:

Commissioner Georgiana S. Tyler (Industry)

PUBLIC IN ATTENDANCE:

Rhonda Hottle, Carruthers Academy of Real Estate

Carolyn Cook, GBBR

Charles Windsor, AACAR

William Frost, Frost and Associates

Donald White, Pr Geo’s Comm Coll, MREEA

Robert Johnston, AACAR

Mark Feinroth, MAR

CALL TO ORDER:

J. Nicholas D’Ambrosia, Chair, called the meeting to order at 10:40 a.m.

APPROVAL OF MINUTES:

Motion (made by Nancy R. Simpers, seconded by Colette P. Youngblood) To approve the minutes of the February 18, 2009 business meeting. Unanimous approval.

REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:

Motion (made by Nancy R. Simpers, seconded by Anne S. Cooke) To approve the Administrative Dismissals for the month of March 2009. Motion carried.

COMMITTEE REPORTS:

1. Education – Chairman J. Nicholas D’Ambrosia read the exam statistics report from PSI, the testing vendor. For the month of February 2009, 273 salesperson and 30 broker exams were administered. These numbers were compared to February 2008, when 500 salesperson and 45 broker exams were administered by PSI.

2. Legislative – Anne S. Cooke, Legislative Chair, and Elizabeth Trimble, Counsel, reported

• HB 233 “Full Disclosure of Real Estate Taxes Act” was amended by the Environmental Matters Committee and passed unanimously by the House. The amendment did not affect MREC’s requirement to add specific language to the disclosure/disclaimer form. Hearing is scheduled in the Senate for March 25.

• HB 679 “State Real Estate Commission-Delegation of Authority to Conduct Contested Case Hearings” received an unfavorable report from the House Economic Matters Committee.

• SB 634 “Professional Corporations-Professional Services-Multiple Professions” had a March 5 hearing in the Senate but no report has been issued yet. Ms. Trimble will continue to monitor the bill’s progress.

• HB 1408 “Real Estate Licensees – Services Provided Through Teams” sets qualifications and requirements concerning real estate services provided through a team.

• HB 1411 “Department of Labor, Licensing, and Regulation – Maryland Real Estate Commission-Continuing Education” adds a 3 hour mandated course of agency/agency disclosure for all licensees and a 3 hour mandated supervision course for brokers and branch office managers. Brokers and branch office managers would then need 18 continuing education hours. In consideration of HB 1408, the Maryland Association of Realtors requested HB 1411 be amended to include team leaders in the supervision requirement. After discussion, Motion (made by Nancy R. Simpers, seconded by Surina Jordan) To include team leaders in the supervision requirement which the broker or branch office manager will track to assure compliance. All in favor; Motion passed. Commissioners then discussed whether it is necessary for brokers, branch office managers, and team leaders to have 18 hours or if 15 hours for these licensees would suffice. Ms. Connelly noted that keeping all at 15 would simplify the rules for licensees and staff. After discussion, Motion (made by Nancy R. Simpers, seconded by Anne S. Cooke) To amend the bill so that the mandatory hours are within the 15. All in favor; Motion passed.

• Delegate Tony McConkey’s February 27, 2009 letter asks for Commissioners’ support for HB 749 “Chesapeake and Atlantic Coastal Bays Critical Area-Prospective Land Purchases-Inspections.” Commissioners reviewed the bill and Delegate McConkey’s letter and decided not to take a position.

COMMENTS FROM EXECUTIVE DIRECTOR: Katherine F. Connelly

1. Ms. Connelly welcomed and introduced two new Commissioners: Commissioner Robin L. Pirtle as a Consumer Member residing in Montgomery County, and next month Commissioner Marla S. Johnson will join as an Industry Member representing Allegany, Frederick, Garrett, Montgomery, and Washington counties.

2. Current license count totals 50,901, of which 4,988 are brokers, 3,267 associate brokers, 41,592 salespersons, 787 branch offices, 3 timeshares, 55 reciprocal brokers, 17 reciprocal associate brokers, and 192 reciprocal salespersons. Of the total, 5,261 are inactive.

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3. The Guaranty Fund balance as of January 31, 2009 is $2,298,659.47.

4. Delegate Doyle L. Niemann will attend the June 17, 2009 business meeting to talk about PHIFA.

5. The first on-line distance learning program in principles and practices for real estate salesperson is nearing approval. A few adjustments to the program are needed.

6. Continuing education providers are responding to the request for course outlines on short sales, PHIFA, and related issues of foreclosures, distressed properties, etc. The Education Committee will meet on March 20, 2009 to begin review.

7. Ms. Connelly attended the Maryland Association of Realtors’ Legislative Day and met with legislators after the meeting; taught two classes at Coastal Board attended by 42 brokers; and on March 13, attended Congressman Hoyer’s loss mitigation presentation. Information from the presentation is in each Commissioner’s folder. Upcoming travel is planned for legislative hearings on March 24, Board of Public Works meeting on April 1, and ARELLO’s mid-year meeting April 26-29.

8. The request for bids for a new exam contract is to be issued today.

9. An investigator was hired and will begin on April 1. He has 35 years of investigative experience and a background in real estate.

10. Ms. Connelly introduced Shannon Davis as the new outreach coordinator to assist the self-funded boards with their newsletters.

11. The automatic e-notification to brokers is up and running. It informs both the former and the new broker that an affiliate has transferred. To receive e-notification, brokers must supply their email address and keep it current with the Commission.

12. Electronic collection of continuing education attendance via internet and licensee access to the credit hours would facilitate renewal. There are various programs and costs. Other states’ programs will be explored. This investigation is just beginning.

13. New York Department of Real Estate is proposing entering into a reciprocal agreement with Maryland. New York will be contacted for more information.

14. The February 20, 2009 memo from the Department’s accounting unit reminds all Commissioners to sign their name exactly as written on the expense voucher.

COMMENTS FROM COUNSEL: Elizabeth Trimble

1. Counsel has been advising on the re-bid of the exam contract, on Department-wide and real estate legislation, and on developing continuing education regulations.

2. Secretary Perez was nominated by President Obama to serve as the Assistant Attorney General for Civil Rights at the U.S. Department of Justice. He is awaiting confirmation.

COMMENTS FROM CHAIR: J. Nicholas D’Ambrosia

Chairman D’Ambrosia extended a welcome to both new Commissioners and to the new employees. He reported on his recent experience with a Virginia online continuing education program and with West Virginia’s requirements for out-of-state brokers.

UNFINISHED BUSINESS: Previously discussed

NEW BUSINESS:

1. Chairman D’Ambrosia explained it has been the practice of the Commissioners to issue guidelines for continuing education providers and students. Last year the guidelines were updated, and a provider questioned whether the guidelines have to be followed. So the guidelines will be re-visited in the form of regulations. The Education Committee will begin discussion and make recommendations to the full Commission. Mr. D’Ambrosia asked the Education Committee to report at the April 15, 2009 business meeting.

2. Vice Chair Simpers asked to add a new business item for the next meeting on Virtual Office Websites (VOW).

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ADJOURNMENT:

There being no further business, the meeting adjourned at 11:40 a.m. on Motion by Robin L. Pirtle, seconded by Colette P. Youngblood. The next monthly business meeting is Wednesday, April 15, 2009.

APPROVED AS PRESENTED ____________________________________________________

J. Nicholas D’Ambrosia, Chairperson

APPROVED AS AMENDED ______________________________________________________

J. Nicholas D’Ambrosia, Chairperson

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