Idaho Real Estate Appraiser Board
Bureau of Occupational Licenses
1109 Main Street, Suite 220
Boise, Idaho 83702-5642
(208) 334-3233

Minutes of February 26, 2007 

Conference Call  

Roll Call:          Paul J. Morgan – Chair

                           Stanley Moe, Board Member

                           Rick Bachmeier, Board Member

                           Ed Morse, Board Member

                           Patricia Lentz, Board Member

Bureau Present:      Tana Cory, Bureau Chief

                                       Budd Hetrick, Deputy Bureau Chief

                                       Roger Hales, Administrative Attorney

                               Steve Olsen, Office of the Attorney General         

                                       Emily Mac Master, Deputy Attorney General

                                       Marcie McGinty, Investigations Coordinator

                                       Maria Brown, Technical Records Specialist I

Others Present:        Mark Young

The meeting was called to order at 10:04 a.m. by Chair, Mr. Paul Morgan.

Ms. Cory, Bureau Chief, gave the Legislative report.

Mr. Hetrick, Deputy Bureau Chief, gave the financial report. Detailed report is on the web.

Mr. Steve Olsen, Chief of the Civil Litigation Division at the Office of the Attorney General, spoke to the Board regarding a memo prepared for the Board detailing the relationship between the Office of the Attorney General and the Board.

Emily Mac Master, Deputy Attorney General, addressed the Board and reiterated her responsibility to the Board. Ms. Mac Master assured the Board that the Office of the Attorney General will provide prosecutorial service for the Board.

Mr. Hetrick informed the Board of the investigative process.

Ms. Mac Master presented a stipulation and consent order for case # REA-2007-13.

Motion was made by Mr. Moe to accept the Consent Order as presented in the license matter of Luke Walker, License No. LRA-1023.  Seconded by Mr. Bachmeier, carried.  Ms. Lentz recused herself from voting on this matter.

Motion was made by Mr. Bachmeier to allow the Chairman of the Board to sign the order on behalf of the Board. Seconded by Mr. Morse, carried.

Mr. Hetrick spoke to the Board regarding continuing education audits and good faith efforts. Mr. Hetrick informed the Board that during the recent visit by the Appraisal Sub Committee, the Bureau was advised that the Board had the option to approve audits if there was a good faith effort on the part of the licensee.

Motion was made by Mr. Morse to authorize the Bureau to send advisory letters and close those continuing education audit cases that were presented as good faith efforts to comply with continuing education requirements.  Seconded by Mr. Bachmeier, carried.

A letter will be sent to all Idaho Real Estate Appraiser Licensees reminding them of the current continuing education requirements and that disciplinary action will be taken for non-compliance.

Ms. Mac Master presented a stipulation and consent order for case # REA-2007-37.

After speaking to the respondent, it was asked that the Board defer the case to a later date to allow the Respondent more time to consult legal counsel.

Motion made by Mr. Morse to defer this case to a later date so the respondent can seek legal counsel. Seconded by Mr. Bachmeier, carried.

Ms. Mac Master presented Consent Orders REA-2007-5 and REA-2007-11 and asked that the Board defer from entertaining any discussion or voting until the next Board meeting.

Motion made by Mr. Morse to defer cases REA-2007-5 and REA-2007-11 to the next Board meeting. Seconded by Mr. Moe, carried.

Ms. Mac Master presented a Memorandum to the Board in regards to Case Nos. REA-2006-5, REA-2007-14, and REA-2007-33 for disciplinary recommendations. 

Motion made by Ms. Lentz to accept the Deputy Attorney General's recommendation for closure regarding one of the investigative cases connected with Formal Case No. REA-2006-5.  Seconded by Mr. Morse, carried.

The Board thoroughly discussed recommendations with Ms. Mac Master regarding Case No. REA-2007-14.  The Board approved those recommendations with additional requirements.  Mr. Bachmeier recused himself from this matter. No motion was made.

Ms. Mac Master discussed Case No. REA-2007-33 and recommended closure.

Motion was made by Mr. Morse to accept the Deputy Attorney General's recommendation for closure. Seconded by Ms. Lentz, carried.

Mr. Olsen asked if the Board would like status reports from the Deputy Attorney General at each Board meeting. The Board confirmed that they would.

Motion made by Mr. Morse to go into executive session to discuss potential litigation with counsel. Seconded by Ms. Lentz, carried.

Motion made by Mr. Morse to come out of executive session. Seconded by Ms. Lentz, carried.

Mr. Morse on behalf of the Board made the following statement in regards to Case No. REA-2006-1, John Robert Hennessey, Respondent. 

“The Real Estate Appraiser Board specifically finds that the licensing and certification laws for real estate appraisers were enacted to protect the public interest.  The respondent failed to disclose a guilty plea to attempted lewd conduct with a minor.  The respondent was applying for a residential appraisal credential, where the subject and sale properties are occupied by families and children.  The respondent was, and still is on a sex offender registry from that conduct.  The concealment of the conviction and probation facts in this matter from the Board impairs and obstructs the Board’s ability to protect the public. It is the sensitive nature of both the inspection of residential real estate, and the interaction with families and children in the privacy of their home, and confirmation and inspection of sales that requires the interaction of the appraiser, with homeowners and some times their children.  This sensitive fiduciary relationship is violated by concealment of the conviction and probation from the Board”.

Moved by Mr. Morse that license LRA-748 issued to Respondent, John R. Hennessey be suspended for a period of three years and six months.  After completion of the suspension period Respondent may request reinstatement with the following conditions; 1.) Respondent must provide to the Board a polygraph exam showing a clean history of behavior, and a psychological report demonstrating rehabilitation, 2.) Respondent must disclose all police reports to the Board, so the Board can determine if additional conditions or probation are warranted, 3.) Respondent must provide protection or disclosure measures to homeowners and clients to apprise those that have children or minors present, 4.) Respondent will provide periodic reports to the Board on these monitoring conditions, until such time as respondent is removed from the sex offender registry.  Seconded by Mr. Moe, motion carried.

The Board set the next Board meeting for April 10, 2007.

Meeting adjourned at 11:35 p.m.