BLACK HILLS ASSOCIATION OF REALTORS BOARD OF DIRECTORS February 14, 2014 Approved Pledge of Allegiance: The Pledge of Allegiance

was said. REALTOR Pledge The REALTOR pledge was said. Call to Order: President Bart Miller called the meeting to order at approximately 8:15 a.m. in the Association Office. Ron Kroeger was excused. All other officers and directors were present. Agenda: Kelly Howie made a motion to approve the agenda as amended. Ed Dreyer seconded the motion, which passed unanimously. Minutes: It was noted the January 10, 2014 minutes were approved by email vote and have been distributed. Membership Applications: New REALTOR

New Affiliate

Amy Hook, Coldwell Banker LKH Real Estate, Inc. Bryce Nelson, Farmers National Co Jack Kerstiens, Farmers National Co Adam Karrels, Farmers National Co Glenn Hetzel, Farmers National Co Kara Metz, Hagg Properties, LLC Rhonda Dixon, Prudential Kahler, Realtors Mary Seieroe, Prudential Kahler, Realtors Shauna Sheets, Prudential Kahler, Realtors Richard Huffman, Richard E. Huffman, Broker Weather-Tite Exteriors, LLC, Christian Dietz

Kelly Howie moved to approve the applications pending completion of all membership requirements. Karen Jones seconded the motion, which passed unanimously. Financial Report: Tabled. Unfinished Business: Affiliate Member Challenge: Directors were reminded of the new affiliate member challenge. Second 2014 RPAC Event Sponsorship: The RPAC Committee would like to offer a second RPAC event sponsorship which would be for a Kick Off or Thank You event for all members that contributed. Ed Dreyer moved to approve a second RPAC event; Kelly Howie seconded the motion which passed unanimously. New Business 2014 Code of Ethics and Arbitration Manual: Directors reviewed the 2014 requirements. Sheila Tom moved to increase the $100 administrative processing fee to $500.00; Ed Dreyer seconded the motion which passed unanimously. In regard to Grievance Committee copies, Kelly Howie made a motion to remove the requirement that copies be provided without names or parties or specific references. Shawn Wood seconded the motion which pass unanimously. Stuart Martin made a motion to have the procedural review (Section 55 c) be a panel of 5 directors, as appointed by the President, to act on behalf of the board and approve the remaining 2014 Code of Ethics and Arbitration Manual provisions and amendments as presented. Lisa Mueller-Cox seconded the motion, which passed unanimously. Co-Listing of Properties: Lisa Mueller-Cox moved to adopt co-list procedure as follows: A BHAR member wishing to co-list with a non-BHAR member must provide BHAR with a copy of both co-list agreements. BHAR member and nonBHAR member must have different brokers or firms, and non-BHAR member must be a Realtor and MLS member of another Association. Shawn Wood seconded the motion which passed unanimously. South Dakota Leadership Academy: President Miller explained the SDAR Leadership Academy program. Sheila Tom moved to provide a $500 scholarship to Stuart Martin for attendance in the program. Lisa Mueller-Cox seconded the

motion which passed unanimously. Should a BHAR member be awarded one of the five "at large" positions, Directors will revisit the matter in regard to providing the $500 registration fee. MLS Rules & Regulations: Kelly Howie brought forward a discussion regarding "upon complaint" be removed from all MLS rules and proposed that BHAR staff monitor anything with a fine consequence. Ed Dreyer moved that the MLS Committee adopt the following: all "upon complaint" references be removed from all MLS Rules and Regulations and that BHAR staff monitor and enforce all rules with a fine consequence on new listings; and that the MLS Committee consider increasing all fines. Alicen Dupont seconded the motion, which passed unanimously. Installation: Directors were asked for input regarding a change from an Installation dinner to Installation during the general membership meeting in October, which is held just prior to the breakfast meeting. Because there is a sponsorship for an Installation event, President Miller will contact the sponsors to offer them the second RPAC event instead. If sponsors agree, then this item will come back to the Directors next month. Committee Reports: SDAR Committee Reports: Administrative Committee: Amy Bochman reported on the NAR change to REALTOR Emeritus status beginning in 2015, the discussion at SDAR, and asked for Director input for SDAR June meetings. Directors were in agreement that SDAR define state criteria for SDAR REALTOR Emeritus. Government Affairs Committee: Bart Miller reported on bills monitored, and six items that SDAR Committee Chair brought forward noting that he will share one each at future breakfast meetings. Member Services Committee: Ed Dreyer reported on the success of 2013 Ring the Bell Day, SDARs Facebook page, Realtor recognition awards and 2014 Realtor Convention registration forms are on the SDAR website, as well as GRI class information. BHAR Committee Reports: MLS Committee: Ed Dreyer reported the Committee is bringing three recommendations to the Board of Directors for approval. 1. Recommendation: Amend MLS Rules & Regulations, Section 14, as follows: Section 14Changes in Rules and Regulations/Voting on Other Matters: Amendments to the rules and regulations of the Service shall be by that number of votes that would constitute a majority of the total number of REALTOR MLS Committee Members present of the Black Hills Association of REALTORS, and subject to approval by the Board of Directors of the Black Hills Association of REALTORS. For all other matters before the committee not pertaining to amendments to the rules and regulations of the Service, such matters may be decided by a majority of that number of votes represented by Participants at the committee meeting at which a quorum is present (see Bylaws Article XVIII, Section 5). (Amended 08/2007 2014) Rationale: Section 14 should be updated subject to the change to the Bylaws in regard to MLS Committee membership. Ed Dreyer moved to approve the recommendation as stated; Pam Heiberger seconded the motion which passed unanimously. 2. Recommendation: Amend MLS Rules & Regulations, Section 1.19, as follows: Section 1.19 Listing Agent Name or Contact Information: Listing Agent name, cell phone, or contact information of any kind shall be in Agent Remarks only on the Multiple Listing Service. Virtual tours and video showcase may be added as a link with required state branding. Those links shall not contain other marketing concepts or additional properties of listing agent. For violation of this rule, the Association Office, upon complaint, will move Agent information to Agent Remarks and a service fee of $25 per listing will be charged to Participant (Amended 07/01/2008). Rationale: Allow for branded virtual tours so South Dakota advertising laws are met.

Ed Dreyer moved to approve the recommendation as stated; Tristan Emond seconded the motion which passed with two opposed. 3. Recommendation: Have BHAR Attorney review the liability as related to Associated Documents on the MLS for sold, withdrawn, or expired listings. Rationale: Concern regarding the use of data from old Seller's Disclosure as related to properties. Ed Dreyer moved to approve the recommendation as stated; Stuart Martin seconded the motion which passed unanimously. Executive Committee: Bart Miller, on behalf of the Executive Committee wanted to offer the following reminders: When a vote has opposed but passes, it is a united vote, and Executive Session discussions are confidential. In regard to a membership survey, which had been referred to them from the November 2013 BOD meeting, the Executive Committee determined that while BHAR wants to continue to connect with members, a survey isnt the how. The Executive Committee has the expectation that all BOD members will be at the monthly breakfast meetings, and reminded Directors to bring someone along with them. Building Task Force: It was reported that the task force visited three properties last month. They have met with BHAR's CPA regarding the tax consequences and expect to have something to bring forward next month. Other: Mediation/ethics, membership numbers and meeting attendance, and under contract information were provided to the group. Shawn Wood moved to adjourn; Kelly Howie seconded the motion which passed unanimously.

Amy Bochman Executive Vice President Black Hills Association of REALTORS