STATE COMMISSION OF REAL ESTATE APPRAISERS AND HOME INSPECTORS
BUSINESS MEETING
MINUTES
DATE: June 9, 2009
TIME: 10:30 a.m.
PLACE: 500 N. Calvert Street
2nd Floor Conference Room
Baltimore, Maryland 21202
PRESENT: Commissioner Steven McAdams, Chairperson
Commissioner David Hanson, Vice Chair
Commissioner George Fair
Commissioner JD Grewell
Commissioner Trevor Lee
Commissioner David Brauning
Commissioner Mary Ann Rush
Commissioner Thomas Murphy
Commissioner Nathaniel Hauser
Commissioner John Jordan
Commissioner David Hodnett
Commissioner Christopher Pirtle
ABSENT: Commissioner Rhonda Framm
Commissioner Patrick Murphy
Commissioner J. Otis Smith
OTHERS PRESENT: Harry Loleas, Deputy Commissioner, Occupational
and Professional Licensing
Sloane Fried Kinstler, Assistant Attorney General
Steven Smitson, Assistant Commissioner
Patricia Schott, Administrator
David Stamper, Department of Legislative Services
Call To Order
Commissioner McAdams, Chair, called the regular meeting of the Commission of Real Estate Appraisers and Home Inspectors to order at 10:50 a.m.
Introduction of David Stamper
Chair McAdams introduced David Stamper of the Department of Legislative Services to the Commission. Mr. Stamper advised that he will be evaluating the program over the next several months and will interview staff and possibly commission members. He will be reviewing meeting minutes and other documents and data requested from the Commission.
Introduction of Newly Appointed Members
Commissioner McAdams welcomed newly appointed members, David Hodnett and Christopher Pirtle to the Commission. Each member, staff and counsel identified themselves and stated their position with the Commission. Mr. Hodnett was appointed as a financial member of the Commission. Mr. Pirtle was appointed as a consumer member of the Commission.
Approval of Minutes
The minutes of the business meeting held on April 14, 2009 were approved as distributed. The minutes of the executive session held on April 14, 2009 were approved as distributed. Motion (I) was made by Commissioner Hanson and seconded by Commissioner Brauning that the minutes of the business meeting be approved as distributed. This motion passed by a unanimous decision. Motion (II) was made by Commissioner Grewell and seconded by Commissioner Brauning that the minutes of the executive session be approved as distributed. This motion passed by a unanimous decision.
Education/Application Real Estate Appraiser Committee Report
Commissioner Brauning reported that the Appraiser Education/Application Committee met on this date and reviewed and approved 10 courses. Motion (III) was made by Commissioner Murphy, seconded by Commissioner Grewell, and unanimously carried that the Commission accept the recommendations of the Real Estate Appraisers Education Committee.
Real Estate Appraiser Complaint Committee Report
Commissioner Brauning reported to the Commission that the Complaint Committee met prior to the public meeting and reviewed many items of business, which had been placed before the Committee. The disposition of which was as follows:
Complaints - 53 cases were reviewed:
5 cases were closed;
2 cases were referred to Precharge Review;
1 cases were scheduled for informal hearings
45 cases were tabled, referred for investigation, or are
currently being reviewed by investigators
The Complaint Committee met prior to the public meeting in Executive Session, pursuant to State Government Article, Annotated Code of Maryland, § 10-508 (a)(7), to receive the advice of counsel regarding the above-mentioned matters. Motion (IV) was made by Commissioner Brauning and seconded by Commissioner Lee that the Commission accept the report and recommendations of the Complaint Committee. This motion passed by a unanimous decision.
Home Inspector Complaint Committee
Commissioner /Grewell reported to the Commission that the home inspector Complaint Committee met prior to the public meeting and reviewed two complaints, and two were dismissed. Motion (V) was made by Commissioner Brauning, seconded by Commissioner Murphy that the Commission accept the recommendations rendered by the Home Inspector complaint committee. This motion passed by a unanimous decision.
The Complaint Committee met prior to the public meeting in Executive Session, pursuant to State Government Article, Annotated Code of Maryland, §10-508(a)(7), to receive advice of counsel regarding the above mentioned matters.
Home Inspector Application Committee
Commissioner Grewell reported to the Commission that the home inspector Application Committee/Education has no report to offer.
New Business
Legislative Update
Sunset Review
Harry Loleas, Deputy Commissioner, Occupational and Professional Licensing reported that the Commission’s program is due for a Sunset Review in 2010. Mr. Loleas explained that the Maryland Program Evaluation Act requires the Department of Legislative Services to periodically evaluate state agencies and boards according to a statutory schedule. This activity is more commonly known as sunset review because the first cycle of evaluations serves as a tool to eliminate or “sunset” obsolete entities. The Commission is being evaluated by the Department of Legislative Services to determine whether to evaluate the program now or waive the commission from a full evaluation. He explained that evaluations will be undertaken now and the results will be reported to the Legislative Policy Committee this fall. By December 15, the Legislative Policy Committee must decide whether to waive the commission from full evaluation. If waived, legislation to extend the Commission must be enacted. Otherwise, a full evaluation will be undertaken next year.
Legislative Proposals
Mr. Loleas advised the Commission they must provide him with any legislative proposals that they might wish for the Department to consider in the 2010 legislative session.
(1) ASHI/NAHI Designation
Commissioner Hanson recommended that the mandatory requirement that home inspector members appointed to the Commission be affiliated with either NAHI or ASHI be abolished. After a discussion, the members determined that they are not prepared to vote on Mr. Hanson’s proposal.
(2) Felony and Misdemeanor Convictions
Commissioner Grewell recommended that legislation be proposed to correct an oversight as it pertains to the Commission evaluation of facts in the granting, denial, renewal, suspension, or revocation of a home inspector license when the applicant or license holder is convicted of a felony or a misdemeanor that is directly related to the fitness and qualification of the applicant or licensee to provide home inspection services. The governing statutes for all other boards and commissions within DLLR, including the real estate appraisers, contain a provision requiring the regulatory body to consider certain factors regarding an individual’s criminal history in the granting or denial of a license or imposition of sanction against a licensee or certificate holder. See, e.g., Bus. Occ. & Prof. Art., Ann. Code of Md., §16-701(b). The facts to be considered include the nature of crime; the relationship of the crime to the activities authorized by the licensee; the relevance of the conviction to the fitness and qualification of the applicant to provide the services authorized by the license; the length of time since the conviction; and the behavior and activities of the applicant before and after the conviction. Motion VI was made by Commissioner Grewell, seconded by Commissioner Jordan, and unanimously carried that the Commission propose legislation to be added to Bus. Occ. & Prof. Art., Ann. Code of Md., §16-701.1 that includes similar language setting forth the criteria that the Commission ought to consider in the granting, denial, renewal, suspension or revocation of a home inspector application or license.
Board Manual and Training
Deputy Commissioner Loleas advised that the Commission will be provided training at the next scheduled meeting. Administrator Schott advised that prior to each of the last recently scheduled meetings, the members had been sent the Board Manual, which sets forth the functions, responsibilities, and organization structure of the Department and contains information pertaining to each division within the Department. AAG Kinstler offered to answer any questions or to find answers to any questions that the members might have prior to the commencement of their training, during which time they will be afforded a question and answer session. Counsel also advised members to be mindful that they cannot testify or opine on legislation, in their capacity as a Commissioner, without the concurrence of the Commission and the consent of the Secretary of DLLR.
Appraiser Management Companies
Deputy Commissioner Loleas advised that the U.S. House of Representatives passed HR 1728, the Mortgage Reform and Anti-Predatory Lending Act. The Bill, which now goes to the Senate, contains a number of valuation related provisions which include the registration of appraisal management companies (“AMCs”) by the states. If passed, the Appraiser Qualifications Board would establish the minimum qualification criteria for the (AMCs).
Appraisal Subcommittee
Administrator Schott reported that in HB 1728, there is a provision that would give the Appraisal Subcommittee additional regulatory authority to impose interim actions and suspensions against state regulatory agencies that are found to have violated FIRREA Title XI, in advance of the decertification of a state. The Appraisal Subcommittee would develop regulations for the state registration of appraisal management companies.
Executive Session
Motion (VIII) was made by Commissioner Murphy, seconded by Commissioner Hanson and unanimously carried that the State Commission of Real Estate Appraisers and Home Inspectors go into executive session at 11:30 a.m., in the 2nd floor conference room, 500 N. Calvert Street, Baltimore, MD 21202. The purpose of the meeting was to receive advice of counsel. The meeting was permitted to be closed pursuant to State Government Article, Annotated Code of Maryland, § 10-508(7).
The Commission reconvened its regular meeting at 1:20 p.m. Motion (IX) was made by Commissioner Hauser, seconded by Commissioner Fair, and unanimously carried that the Commission accept the decisions rendered in Executive Session.
Adjournment
There being no further business to discuss Motion (X) was made by Commissioner Hauser, seconded by Commissioner Fair and unanimously carried that the meeting adjourn. The meeting adjourned at 1:20 p.m.
_____ Approved without corrections
_____ Approved with corrections
______
Steven McAdams, Chairperson Date
IT WAS DETERMINED THAT THE NEXT MEETING OF THE COMMISSION WILL BE HELD ON TUESDAY, AUGUST 11, 2009, AT 10:30 A.M. IN THE 2ND FLOOR CONFERENCE ROOM AT 500 N. CALVERT STREET, BALTIMORE, MD 21202.
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