STATE COMMISSION OF REAL ESTATE APPRAISERS by ufLjf8W

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									 STATE COMMISSION OF REAL ESTATE APPRAISERS AND HOME INSPECTORS
                       BUSINESS MEETING
                            MINUTES

DATE:          November 13, 2001

TIME:          10:30 a.m.

PLACE:         500 N. Calvert Street
               3rd Floor Conference Room
               Baltimore, Maryland 21202

PRESENT:       Commissioner Gregory Glover, Chairman
               Commissioner David L. Brauning
               Commissioner David DeAngelis
               Commissioner Dennis Adams
               Commissioner Rhonda Framm
               Commissioner Jose I. Quezada
               Commissioner Harvey Mosier
               Commissioner John Heyn
               Commissioner John Grewell
               Commissioner E. Roy Owens
               Commissioner David Hanson

ABSENT:        Commissioner Shirl Byron
               Commissioner Yvonne Lansey
               Commissioner Patricia McGuire
               Commissioner John Fowler

OTHERS PRESENT:               Assistant Secretary, Mark Feinroth
                              Deputy Commissioner, Harry Loleas
                              Executive Director Charles P. Kazlo
                              Assistant Attorney Sloane Fried Kinstler
                              Management Associate Patricia Schott

Call To Order

Chairperson Gregory Glover called the first meeting of the newly expanded Commission which now
includes home inspectors to order at 10:30 a.m.

Introduction of Newly Appointed Members

Chairperson Glover welcomed each newly appointed member to the Commission. Each member of
the Commission, staff and counsel introduced themselves and gave a brief summary of their standing
with respect to the Commission.
Approval of Minutes

The minutes of the business meeting held on July 10, 2001 were approved as distributed. Motion
(I) was made by Commissioner Framm and seconded by Commissioner Brauning that the minutes
of the business meeting be approved as distributed. This motion passed by a unanimous decision.

Education/Application Real Estate Appraiser Committee Report - Commissioner Lansey,

On behalf of Commissioner Lansey, Chairperson Glover advised the Commission that the
Application/Education Committee met this date and reviewed requests for the approval of five
education courses, four courses were approved and one was tabled for more information. They also
reviewed two examination applications, both of which were tabled for additional information.
Motion (II) was made by Commissioner Framm and seconded by Commissioner Brauning that the
Commission accept the decisions of the Education/Application Committee. This motion passed by a
unanimous decision. The decisions of the Education Committee are attached hereto and made a part
of these minutes.

Real Estate Appraiser Complaint Committee - Commissioner Fowler, Committee Chairperson

Executive Director Kazlo advised the Commission that the Complaint Committee met this date and
had two informal conferences with licensees. Due to time constraints, the Committee was unable to
complete the review of all of the pending complaints. The disposition of which was as follows:

Complaints     -       16 cases were reviewed
                       1 case was closed after the informal conference
                       1 case was tabled for another informal conference

The Complaint Committee had met prior to the public meeting in Executive Session, pursuant to
 10-508 (a)(7) of the State Government Article to receive the advice of counsel regarding the above-
mentioned matters. Motion (III) was made by Commissioner Framm and seconded by
Commissioner Brauning that the Commission accept the report of the Committee. This motion
passed by a unanimous decision.

Mark Feinroth, Commissioner/Assistant Secretary

Mark Feinroth, Assistant Secretary, met with the Commission to introduce himself to the members
and to welcome and thank the newly appointed members. He also gave a brief explanation of his
position in relation to the Commission and explained the role of the staff members with whom the
members will work.

Harry Loleas, Deputy Commissioner



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Harry Loleas, Deputy Commissioner, introduced himself to the Commission and welcomed the
newly appointed members. Mr. Loleas explained that his primary function as it relates to the
Commission concerns legislative and regulatory matters. Each member was provided with the
Business Occupations and Professions Article, Title 16, Real Estate Appraisers and Home
Inspectors. Mr. Loleas explained the history of the inception of the home inspector regulation, as
well as each major section of the law, including, the membership requirements, licensing of home
inspectors, miscellaneous provisions for home inspectors, election of officers, code of ethics,
definitions, enforcement powers, the grandfather clause, reciprocity, and fee. Additionally, he
provided an opportunity for an exchange of questions and answers.

Fees

The Commission discussed the licensing fee that should be charged to home inspectors seeking an
original license, license renewal and the reinstatement of a license. The legislature had
recommended that the license fee for an original license be set by the Commission and that is not
exceed $400.00. Motion (IV) was made by Commissioner Hanson and seconded by Commissioner
Mosier that the Commissioner promulgate both an emergency and proposed regulation to establish
that a $400.00 fee be charged for an original and renewal home inspector license and that a $25.00
reinstatement fee be set to be comparable with the real estate appraisers segment of the Commission.
This motion passed by a unanimous decision.

Work Experience

Assistant Attorney General Sloane Fried Kinstler reported that she had been in contact with Dennis
Schnepfe of the Division of State Documents to determine the appropriate new Subtitle for home
inspectors. It was determined that the new regulations for home inspectors will be under Subtitle 27.

Chapter 02 Work Experience Requirements

The members were presented with proposed language that was requested to be drafted by Assistant
Attorney General Kinstler regarding the work experience requirements that must be met prior to
obtaining an original home inspector license. The members reviewed and discussed the proposed
regulations and requested that a few minor changes be made. Motion (V) was made by
Commissioner Mosier and seconded by Commissioner Framm that the Commission promulgate an
emergency and proposed regulation to adopt Chapter 02 Work Experience Requirements. This
motion passed by a unanimous decision.

Chapter 04 Responsibilities of Licensees

The members were presented with proposed language that was requested to be drafted by AAG
Kinstler regarding the responsibilities of individuals who receive a license to provide home
inspection services. The members reviewed and discussed the proposed regulations and requested
that a few minor changes be made. Motion (VI) was made by Commissioner Mosier and seconded


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by Commissioner Framm that the Commission promulgate an emergency and proposed regulation to
adopt Chapter 04 Responsibilities of Licensees. This motion passed by a unanimous decision.

All of the aforementioned proposed regulations are attached hereto and will become a permanent
part of these minutes.

Application for Home Inspector License

It was reported, that prior to the meeting, the four home inspector industry members met in a work
session with staff to begin the development of a license application for home inspectors. At the
request of those members, Ms. Schott modified the draft application that she presented during the
initial work session and the review of which is scheduled to commence in another work session after
the business meeting has adjourned. It was determined that based on the rigid time constraints
involved in the implementation of the licensing of home inspectors, it was essential that an
application be developed, printed and disseminated as soon as possible. Motion (VII) was made by
Commissioner Framm, seconded by Commissioner Hanson, and unanimously carried that the
Commission accept the application that is developed during the scheduled workshop to commence
after the meeting has adjourned.

Funding of Expert Witness

Deputy Commissioner Harry Loleas explained that the issue of additional funding for an
expert/investigator is and has been of particular concern to the Real Estate Appraisers segment of the
Commission. He noted that the issue was documented in the Sunset Review Evaluation that was
conducted by the Department of Legislative Services. The members expressed frustration in that the
primary purpose of their function as a Commission in serving and protecting the public can not be
effectively and meaningfully executed unless funding is made available that allows them to carry out
their responsibilities. Mr. Loleas reported that he was able to secure $10,000 in funding for the
investigation of complaints, in addition to the $5,000 that had already been budgeted for in this fiscal
year. He reported that substantial increase in funding has been requested for FY 2003.

Election of Officers

Chairperson Glover announced that there will be several members whose appointments will expire in
December, including his own, and advised that an Election of Officers should be held at the next
meeting scheduled in December.

Attorney General Report

Assistant Attorney General Sloane Kinstler introduced herself to the newly appointed members and
explained her role as it relates to the functions of the Commission. She expressed receptiveness in
working with the new members and graciously offered her assistance to the members.



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MREAC v. Pate #98-REA-13

Assistant Attorney General Sloane Kinstler advised that there is an exceptions hearing scheduled for
December 11, 2001 at 11:00 a.m. in the matter of MREAC v. Jason Pate. She explained that the case
has already been postponed several times and the Commission is very anxious to hear the case on
that date. However, she cautioned that there might be some possible scheduling conflicts with the
Commission and that they should plan to be available for a longer period of time in order to handle
all of the activities. Therefore, she advised that she will attempt to negotiate with the respondent and
his attorney to have the time moved back to 9:00 on that date or otherwise, establish a hearing panel,
independent of the full Commission to hear the case.

2002 Edition of the Uniform Standards of Professional Appraisal Practice
Chapter 05 Code of Ethics

Executive Director Kazlo advised that he received the 2002 Edition of the Uniform Standards of
Professional Appraisal Practice (USPAP). He explained that each year it is necessary for the
Commission to adopt certain portions of the new edition of USPAP by reference in order to keep the
Maryland Code of Ethics up to date and in compliance with federal requirements. He requested that
the Commission propose the adoption of the 2002 Edition of USPAP both as an emergency and
proposed regulation. Motion (VIII) was made by Commissioner Adams and seconded by
Commissioner Mosier, that the Commission promulgate an emergency and proposed regulation to
adopt the 2002 Edition of USPAP, with all related Rules, Statements, the Preamble, Advisory
Opinions and Index. This motion passed by a unanimous decision.

Executive Session

Motion (IX) was made by Commissioner Brauning and seconded by Commissioner Mosier, and
unanimously carried that the members of the Maryland Commission of Real Estate Appraisers and
Home Inspectors go into executive session at 12:40 p.m., in the second floor conference room, 500
N. Calvert Street, Baltimore, MD 21202. The purpose of the meeting was to discuss with counsel
the current status of a disciplinary matter. The meeting was permitted to be closed pursuant to §10-
508 (7) of the State Government Article.

The Commission reconvened its regular meeting at 12:50 p.m.

Chairperson’s Report

Sunset Review


The Commission was advised that the Department of Legislative Services had recently completed the
Sunset Review, which is required by the Maryland Program Evaluation Act. The members were
provided with copies of the final report that was prepared by the Department of Legislative Services


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in response to the evaluation. The report from Legislative Services made a series of
recommendations; the most important of which is that the Commission should be continued and that
its termination date be extended by ten years. There were a total of fourteen (14) findings and
recommendations outlined in the report that was prepared to assist the Senate Finance and House
Economic Matters Committee, which is designated to review the Commission and made a
recommendation to the General Assembly. The other major recommendations were to amend the
current statute to repeal the geographic restrictions and amend the license constitution when
appointments to the Commission are made; increase funding for the investigation of complaints;
recruit and hire additional staff; attempt to adjust to federal mandated changes; and develop
legislation that would afford the Commission the authority to modify all areas of fee structures. The
Department was provided with a draft of the report and given an opportunity to provide comments.
The response was prepared by the Department was contained in the final report. Chairperson Glover
advised that he had prepared his own response to each of the recommendations outlined in the report
and reviewed his responses with the members

AARO Conference

Chairperson Glover reported that the Department had sponsored his attendance of the AARO
(Association of Appraiser Regulatory Officials) Conference that was held on October 27-30, 2001.
Mr. Glover distributed a report that he prepared that summarized the events of the conference. He
discussed the material that was covered during the conference. Particular attention was noted with
regard to proposed changes that are being considered by the Appraisal Foundation, Appraisal
Standards Board, Appraiser Qualifications Board, and the Appraisal Subcommittee, in that those
changes if mandated, will have a significant impact on the operation of the Commission. Mr. Glover
highly recommended that the members consider attending future AARO Conferences.


There being no further business a motion was made by Commissioner Mosier, seconded by
Commissioner Heyn, and unanimously carried that the meeting adjourn. The meeting adjourned at
2:10 p.m.

_____ Approved without corrections

_____ Approved with corrections

_____________________________________________________                        __________________
      Gregory Glover, Chairperson                                                   Date


IT WAS DETERMINED THAT THE NEXT MEETING OF THE COMMISSION WILL BE HELD
ON TUESDAY, DECEMBER 11, 2001, AT 10:30 A.M. IN THE 2ND FLOOR CONFERENCE
ROOM AT 500 N. CALVERT STREET, BALTIMORE, MD 21202.



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