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
February 16, 2005, 10:30 a.m.
Highlights from the meeting:
Legislative Update
Final Action taken on 09.11.02.01 (sign own name)
Final Action taken on 09.11.02.02 (extending disclosure)
No re-proposal of regulation on form of advertisement (meaningful/conspicuous)
PRESENT:
Commissioner Steven VanGrack, Chair (Consumer)
Commissioner Sydney L. Machat, Vice Chair (Industry)
Commissioner Anne S. Cooke (Industry)
Commissioner Thomas E. Earnest, Jr. (Industry)
Commissioner Arthur M. Eisenstein (Consumer)
Commissioner Tara Harrison (Consumer)
Commissioner Stephen F. Kupres (Consumer)
Commissioner Kim A. Nunnally (Industry)
Commissioner Nancy R. Simpers (Industry)
Gregory Safko, Commissioner, O&P
Harry Loleas, Deputy Commissioner, O&P
Elizabeth Trimble, AAG, Counsel
Elizabeth A. Beggs, Executive Director
Patricia Hannon, Asst Director/Session Recorder
PUBLIC IN ATTENDANCE:
Bob Johnston, AACAR
Mark Feinroth, MAR
Donald White, PGCC, MREEA
Orlando Treadwell, Trinity Realty
CALL TO ORDER:
Chairman Steven VanGrack called the meeting to order at 10:36 a.m.
APPROVAL OF MINUTES:
Motion (made by Nancy R. Simpers, seconded by Stephen F. Kupres) To approve the minutes of the January 19, 2005 business meeting. Unanimous approval.
REPORT OF COMPLAINTS/ADMINISTRATIVE DISMISSALS:
Motion (made by Nancy R. Simpers , seconded by Kim A. Nunnally) To approve the Administrative Dismissals for the month of February 2005. Motion carried.
COMMITTEE REPORTS:
- Education – Education Chair Nancy R. Simpers reported the exam statistics for the month of January 2005. Commissioners received a copy of the written report
- Legislative - Harry Loleas, Deputy Commissioner, Division of Occupational and Professional Licensing gave the following report:
· HB865 (State Real Estate Commission-Special Fund-Fees) is not the Departmental bill; it was introduced by four members of the General Assembly. Current fees would remain if this legislation is enacted, with provision to adjust in one year when fee setting authority is given to the Commission. No hearing scheduled at this time; Mr. Loleas will inform Commissioners of hearing date. Mr. Loleas, Mr. Safko, and Chairman VanGrack will testify. Commissioner Safko added that one difference this year is that the sponsors serve on the House Economic Matters Committee.
· HB728 (State Real Estate Commission-Complaints-Judicial Appeal) is Departmental legislation recommended by the Attorney General’s Office and discussed with Commissioners at both the June and July 2004 business meetings. A hearing is schedule for February 24, 2005; AAG Susan Cherry will testify.
· SB192/HB412 (Real Property-Residential Property Disclaimer and Disclosure Statements-Latent Defects) – If passes, MREC’s disclosure/disclaimer form will need to be changed. SB192 was heard February 10 and HB412 is scheduled for hearing on February 17, 2005.
· HB464/SB256 (Real Estate Brokers-Limited Liability Companies-Payment of Commission) – These bills are similar but not identical. HB464 is scheduled for hearing on February 24, 2005; SB256 was heard February 8.
· HB1037 (Licensed Real Estate Brokers-Branch Offices-Managers) revisits the issue raised last year that licensed salespersons with less than 3 years of experience may be authorized to take the broker exam after completing the broker prelicensing education and having a commitment from a broker to be branch office manager; cannot act as an associate broker, only a branch manager.
· HB854 (Consumer Protection-Rental Assistant Services) and HB860 (Consumer Protection-Rental Assistant Services-Escrow Accounts) – Consumer Protection Division of the Attorney General’s Office would oversee registration of rental assistant services, who collect from the tenant of residential property to pay to the landlord; would not require a real estate license; would include property managers.
· Bills have been introduced which require the Consumer Protection Division to establish a home builders guaranty fund.
- Communications - Vice Chair Sydney Machat expressed concern about the number of disciplinary actions which involve property management practices. Mr. Machat asked for discussion of this topic at a future business meeting.
REPORT OF EXECUTIVE DIRECTOR: Elizabeth A. Beggs – No report at this time
COMMENTS FROM COUNSEL: Elizabeth Trimble
1. Final Action on signing of real estate documents in own name, not in the name of a real estate team or group - no comments were received and final action scheduled for today. Motion (by Thomas E. Earnest, seconded by Tara Harrison) To adopt amendments to Regulation .01 under COMAR 09.11.02 Code of Ethics as published in the December 10, 2004 issue of the Maryland Register; unanimous vote to adopt.
2. Final Action on extending disclosure requirements to unlicensed members of a group or team – no comments were received and final action scheduled for today. Motion (by Thomas E. Earnest, seconded by Nancy R. Simpers) To adopt amendments to Regulation .02 under COMAR 09.11.02 Code of Ethics as published in the December 10, 2004 issue of the Maryland Register; unanimous vote to adopt.
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COMMENTS FROM CHAIR: Steven VanGrack
Chairman VanGrack announced that Commissioner Tara Harrison will depart the Commission on May 1, 2005. Ms. Harrison has served since November 2001.
UNFINISHED BUSINESS:
Re-proposed regulation on form of advertisement (defining meaningful/conspicuous) for COMAR 09.11.01.24 – The Commissioner’s initial proposal was delayed by the Maryland General Assembly’s Joint Committee on Administrative, Executive and Legislative Review in an October 15, 2004 letter to Secretary Fielder. Mr. Loleas explained AELR’s oversight responsibilities for proposed regulations and the Committee’s exercise of its authority to place a hold on a proposed regulation. The AELR’s concern over the initial proposal was that language “at least as large as” was the same language explicitly removed by the Maryland General Assembly in 2004. Therefore, the initial proposal was placed on hold and remains on hold with AELR. Commissioners may consider revised language in lieu of the submittal being held. Mr. Loleas distributed a draft of alternate language for the Commission’s review and consideration. This draft encompassed the concept “at least half as large in height as.” Commissioner Earnest noted that as Legislative Chair he had not been asked to give input to the AELR Committee. He further questioned whether the AELR Committee had held a hearing, had received licensee comments or informed of the Commission’s rationale for the regulations. Mr. Loleas responded that the AELR Committee had not held a hearing in this regard. Commissioners engaged in a discussion of the merits of the original language versus the alternative language. The existence of certain definitions of “conspicuous” in the Commercial Law Article was disclosed and its applicability discussed. In an effort to definitively address the issue, a Motion (made by Thomas E. Earnest, Jr., seconded by Arthur M. Eisenstein) To propose for adoption, the new language distributed today. After additional discussion, the Motion failed by a vote of 3 in favor (Cook, VanGrack, Machat) and 6 opposed (Earnest, Eisenstein, Simpers, Harrison, Kupres, Nunnally)
ADJOURNMENT:
There being no further business, the meeting adjourned at 12:10 p.m. The next monthly business meeting is Wednesday, March 16, 2005.
APPROVED AS PRESENTED ______
Steven VanGrack, Chairman
APPROVED AS AMENDED ______
Steven VanGrack, Chairman
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