ARNM Policy Manual

CARNM Policy Manual

Commercial Association of REALTORS® New Mexico Policy Manual Page 2 of 55

December 2018

Approvals These Policies were approved by the Board of Directors as indicated by the following signatures on , 2018. COMMERCIAL ASSOCIATION OF REALTORS® NEW MEXICO Board of Directors By: _____________________________________________ Ed Anlian 2018 President By: _____________________________________________ Kendra Yevoli Executive Director


December 2018

Contents Approvals .......................................................................................................................... 2

Contents ........................................................................................................................................... 3

Introduction ....................................................................................................................... 7

General Policies ................................................................................................................. 8

Awards ............................................................................................................................................. 8

Approvals and Contracts .................................................................................................................. 9

Board ................................................................................................................................................ 9

Brokers ........................................................................................................................................... 10

Committees and Roles ................................................................................................................... 10

Economic Development and Commercial Listing Service .............................................................. 11

Education ....................................................................................................................................... 11

Guidelines for Announcements to CARNM Members ................................................................... 12

Guidelines for CCIM Deal Making Session and LIN Marketing Meeting Guests ............................ 12

Leasing Information Network (LIN) Meetings ................................................................................ 13

Membership ................................................................................................................................... 14

Non-Member (license remains with REALTOR member office) .................................................. 14

Political ........................................................................................................................................... 15

Sponsorship .................................................................................................................................... 16

Technology ..................................................................................................................................... 17

Website and Social Media.............................................................................................................. 17

Financial Policies .............................................................................................................. 18

General ........................................................................................................................................... 18

Membership Dues and Subscription Fees ..................................................................................... 19

Credit Cards .................................................................................................................................... 20

Investment Policy ............................................................................................................ 21

Executive Summary ........................................................................................................................ 21

Scope of the Investment Policy Statement .................................................................................... 21

Purpose of the Investment Policy Statement ................................................................................ 21

Definitions ...................................................................................................................................... 21

Delegation of Authority ................................................................................................................. 22

Delegation of Authority to the Executive Director ........................................................................ 22


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Assignment of Responsibility ......................................................................................................... 22

General Investment Principles ....................................................................................................... 24

Investment Strategy ....................................................................................................................... 24

Investment Management Policy .................................................................................................... 24

Definition of Risk ............................................................................................................................ 24

Liquidity .......................................................................................................................................... 24

Investment Guidelines ................................................................................................................... 25

Performance Review and Evaluation ............................................................................................. 25

Investment Policy Review .............................................................................................................. 26

Legislative Policy Statement ............................................................................................. 27

Taxation ......................................................................................................................................... 27

Government Regulation/Growth/Zoning/Land Use ...................................................................... 27

Anti-Trust Compliance ................................................................................................................... 28

Economic Development ................................................................................................................. 28

Fair Housing ................................................................................................................................... 29

Affordable Housing ........................................................................................................................ 29

Consumer Protection ..................................................................................................................... 29

Environmental Issues and Natural Resources................................................................................ 30

Education ....................................................................................................................................... 30

Business Climate ............................................................................................................................ 31

Property Rights .............................................................................................................................. 31

Management ................................................................................................................... 32

Ombudsman Program Policies .......................................................................................... 33

Ombudsman Services .................................................................................................................... 33

Ombudsman Requirements ........................................................................................................... 33

Confidentiality ................................................................................................................................ 34

Reporting of Trends and Recurrent Issues ..................................................................................... 34

Ombudsman Program Policies and Procedures ............................................................................ 34

Professional Standards Policies ........................................................................................ 35

Code of Ethics Enforcement and Dispute Resolution System ....................................................... 35

Cooperative Enforcement Agreement ........................................................................................... 35

Administration ............................................................................................................................... 35

Role of Board of Directors (Board) in Professional Standards ....................................................... 36


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Committee Membership ................................................................................................................ 36

Grievance Committee .................................................................................................................... 37

Hearings ......................................................................................................................................... 37

Ethics Complaints ........................................................................................................................... 39

Arbitration ...................................................................................................................................... 40

Mediation ....................................................................................................................................... 42

Financial Obligations ...................................................................................................................... 42

Professional Standards Records ..................................................................................................... 43

Real Estate Community Political Action Committee (RECPAC) ........................................... 44

Purpose .......................................................................................................................................... 44

Members ........................................................................................................................................ 44

Public Policy Advisory Group ............................................................................................ 44

Purpose .......................................................................................................................................... 44

Members ........................................................................................................................................ 44

Sub-Committee: RPAC-NM Selection Committee for the Central District .................................... 44

Meetings ........................................................................................................................................ 44

Conflict of Interest Policy ................................................................................................. 45

1. What Is a Conflict of Interest? .................................................................................................. 45

2. How Are Conflicts of Interest Identified? ................................................................................. 45

3. How Are Conflicts of Interest Resolved?................................................................................... 45

4. May Officers, Directors, Employees, or Volunteers Do Business with CARNM? ...................... 46

Records Retention Policy .................................................................................................. 47

Organizational and Legal Records .................................................................................................. 47

Member Records ........................................................................................................................... 47

Professional Standards Records ..................................................................................................... 47

Federal, State, and Local Tax Records ........................................................................................... 48

Accounts Payable/Accounts Receivable Records .......................................................................... 48

Bank and Investment Records ....................................................................................................... 48

Financial Records ........................................................................................................................... 48

Budget Records .............................................................................................................................. 48

Electronic and Email Records ......................................................................................................... 48


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Whistleblower Policy ....................................................................................................... 49

Statement of Policy ........................................................................................................................ 49

Safeguards...................................................................................................................................... 49

Procedure ....................................................................................................................................... 49

Process for Raising a Concern: .......................................................................................... 49

How the Report of Concern Will Be Handled: .................................................................. 50

Succession Planning ......................................................................................................... 51

Philosophy ...................................................................................................................................... 51

Purpose .......................................................................................................................................... 51

Plan Implementation ..................................................................................................................... 51

Assignment of Priority Functions of the ED ................................................................................... 51

Succession Plan in the Event of a Short-Term, Temporary, Planned or Unplanned Absence .... 52

Succession Plan in the Event of a Temporary, Long-term Unplanned Absence ............................ 53

Succession Plan in the Event of a Permanent Unplanned Absence .............................................. 54


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Introduction Policy statements provide guidelines and standards for the operations of the Commercial Association of REALTORS® New Mexico (CARNM). These statements supplement the Bylaws, Code of Ethics, and other governing documents of CARNM. The Board of Directors shall approve policy statements on an as needed basis. Pursuant to Article XVI of the CARNM Bylaws, The Board of Directors may adopt policies not in conflict with the Bylaws, the Code of Ethics, or other governing documents as necessary to develop guidelines and standards for Board Operations. Policies shall be reviewed bi-annually or as deemed necessary by the Board of Directors. Policy recommendations may be made by committees of the Board, the Directors, Members in good standing, or staff. Policies must be presented in writing to the Board of Directors and will become effective upon approval of the Directors. Gender. The words “he”, “his”, and “him” as used in these Policies shall be deemed to refer to both the masculine and feminine gender and shall include the words “she”, “hers”, and “her.” Adoption of Conflict of Interest, Records Retention, and Whistleblower Policies satisfies IRS

requirements for non-profit associations.


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General Policies

Awards

REALTOR® of the Year Committee Election Guidelines

Committee

1. The committee will be chaired by the two year’s previous REALTOR® of the Year. For example, the 2002 committee will be chaired by the 2000 REALTOR® of the Year.

2. No fewer than eight past recipients must be present on the day of election. A simple majority of votes will then elect the current recipient. Proxy voting will not be permitted. Ties must be broken by any reasonable method including additional discussions, multiple voting, coin toss or other games of chance.

3. The election meeting shall take place on the second Tuesday of October from 11:30 a.m. – 1:00 p.m. at a location to be determined by the chair. The meeting shall take place in a private room to ensure anonymity.

Nominations

4. All nominations shall be given reasonable review and discussion by the committee.

5. It shall be the duty of the committee to ensure that nominees selected for consideration meet all the published requirements.

6. Although nominations from CARNM members may be closed several days to several weeks prior to the day set for election, nominations may come from any committee member as late as the day of election, provided sufficient historical information about the nominee is provided or is easily known by the committee members present.

7. If information in support of any nominee is not adequate for any committee member to make a reasonable review and judgment, then the election process may be suspended until such time as additional information is provided. If, by majority vote of the committee, a qualified recipient is not presented for election, then the election for the current year may be indefinitely postponed.

8. All discussions about nominees shall be held extremely confidential in order to permit open, insightful dialogue about each nominee.

9. The nominee receiving the most votes shall not be notified until the moment of the awards ceremony, and only during the presentation by last year’s recipient.

10. The award may only be awarded to an individual one time.

Award Presentation

11. If last year’s recipient is unavailable or otherwise unable to make the presentation, then the next available prior year recipient in succession shall make the presentation.

12. The awards presentation shall be done in a professional manner, to include the purpose of the award and the qualifications needed to attain it. However, there shall be no limitation on creating mystery or suspense about the actual award winner during the presentation.

Changes to Election Guidelines

13. Only the committee shall have the authority to change, from time to time, these election guidelines or the criteria for qualification of nominees.


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President or Founder’s Award 1. In preparing for the 20th Anniversary, the REALTOR of the Year Committee suggested the concept of

special awards, and the Board approved this recommendation. 2. Awards are given at the sole discretion of the CARNM President. 3. Award recipients will be communicated to the REALTOR of the Year Committee for consideration

when selecting the REALTOR of the Year Award recipient.

Approvals and Contracts 1. The CARNM President and/or the Executive Director, with input from the appropriate resources,

committee(s) and/or legal counsel as needed, shall be the only individual(s) authorized to enter into contracts or agreements (except those noted in Item 4 below) which incur financial or other liabilities to CARNM. All contracts in excess of $ 500.00, except those approved in the budgetary process, shall be presented to the Board of Directors for approval prior to execution.

2. The CARNM President and/or others as designated by the President, with input from the Board of Directors, shall be responsible for final approval of contracts between CARNM and meeting and training facilities, hotel properties, and food/beverage providers, relative to CARNM meetings, training functions, and conventions.

3. The CARNM President, Past President, President Elect, and/or Executive Director shall be authorized to sign legal documents for such items as have been approved by the Board of Directors.

4. The CARNM Board of Directors may contract with other organizations to provide staff support to CARNM.

5. The CARNM President, Executive Director, and other members or staff as designated by the President, shall be the only individuals authorized to contact legal counsel directly. All other individuals and committees desiring to use legal counsel shall submit a request to the President or staff assigned to act as liaison for that purpose. Use of legal counsel will be determined on the merit of each request.

6. The CARNM President, Executive Director, and/or other Board members or staff as designated by the President shall be the authorized spokespersons for CARNM. No other individuals shall speak for CARNM on matters affecting CARNM or its membership without prior approval of the President, President Elect, and/or the Board of Directors.

Board 1. Anyone, other than members, wishing to address the Board of Directors must have the approval of the

CARNM President.

2. The CARNM Board of Directors or committee members shall not receive any compensation for services of the position.

3. The current President and Past President shall be appointed as RANM Directors on behalf of CARNM.

4. The CARNM Board of Directors recommends RECPAC (Real Estate Community Political Action Committee Trustee candidates for approval by the selection committee.

5. The current President-Elect shall be appointed to the RECPAC District Selection Committee.


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6. CARNM shall appoint a representative to the NAIOP Growth Issues Committee.

7. The CARNM Past President shall be appointed as an ex-officio non-voting member of the NAIOP Board of Directors so long as NAIOP seeks a CARNM appointment.

Brokers 1. CARNM does not and will not establish or maintain fixed or recommended rates of commission.

Commissions are a matter of negotiations between the parties (the principal and the agent), and CARNM will not interfere in those negotiations or inhibit in any way the freedom of the parties to negotiate.

2. CARNM is committed to conducting all its activities in the spirit of promoting honest and fair competition within the real estate industry. All officers, directors, employees and members of CARNM shall comply with all applicable federal and state antitrust laws in all dealings on behalf of CARNM.

3. CIE Violations. The following action will be taken when a violation of the CIE Rules and Regulations is identified:

• CARNM is notified of the violation and logs the issue.

• The Executive Director sends an initial email/letter to the broker responsible for the possible violation and copies the Executive Committee. The deadline for correcting the situation will also be included. Information will be documented.

• If the situation is not corrected by the specified deadline, the offending listing will be removed from the CIE until the issue is resolved.

4. CARNM members who are non-subscribers to the CIE are required to annually sign a waiver form for approval by the Board.

Committees and Roles 1. As part of strategic planning, the CARNM Board desires to ensure chairs and co-chairs for each CARNM

committee, impressing the importance of the ongoing line of succession. The Board also emphasizes the need to encourage younger member involvement and a diversity of brokerage offices.

2. The Governance Committee shall bi-annually review all governing documents for both CARNM and CIE to ensure currency, compliance, and completeness, including Bylaws, CIE Rules and Regulations, Policies, Guidelines, Employee Handbook and membership forms.

3. CARNM members serving on RANM Committees will be reviewed and approved by the CARNM Board when the presence of such member implies CARNM position rather than individual position.

4. To foster good relationships, the Executive Director is encouraged to attend REALTOR® meetings—RANM meetings and one National Association of REALTORS® (NAR) meeting.

5. CARNM will support local CCIM administrative needs and rely on the support of CCIM committees.

6. The Golf Committee will recommend the date, location and charity for approval by the CARNM Board.


December 2018

Economic Development and Commercial Listing Service 1. CARNM may partner with New Mexico economic development organizations through a written

agreement for the purpose of linking them to the CIE.

2. State, municipalities or counties may enter rural listings in Catylist for economic development purposes within the parameters described below:

• Rural listings may be entered into Catylist if not located in one of the major MSAs (Albuquerque Metro/Rio Rancho, Santa Fe, Las Cruces and Farmington).

• Any property listed with a broker not with CARNM is not permitted to be entered.

• Listings will be entered by economic development staff only.

• Economic development groups will incorporate Catylist required fields in property listings. Noted benefits include:

• CARNM receives additional exposure for all listings through each economic development website.

• Economic development groups receive access to current commercial listing inventory

3. Economic Development Groups agree to pay CARNM for any incidental fees associated with execution of agreements and will not incur an annual fee in consideration for CARNMs provision of the CIE data.

Education 1. CARNM will sponsor continuing education classes periodically in response to market demand.

2. Anyone arriving after the class is scheduled to begin may find their seat given to someone else.

3. CARNM will maintain sponsor accreditation with the New Mexico Real Estate Commission (NMREC).

4. CARNM will seek NMREC continuing education credit for all sponsored courses.

5. All NMREC Rules and Regulations regarding class attendance will be followed.

6. Classes begin promptly. Continuing education credit will not be given to anyone arriving more than 10 minutes late.

7. Registrants for a course may receive a full refund (less a processing fee of $25.00) only if they provide written cancellation notice via email two business days in advance of the class. Exceptions to this policy may be made to accommodate extenuating circumstances as determined in the sole discretion of the Executive Director. CARNM does not offer credit toward future courses.

8. CARNM reserves the right to cancel any class if deemed necessary. If CARNM cancels a class, registrants will be entitled to a full refund for fees.

9. Non-CARNM members will be charged tuition fees higher than those charged to CARNM members.

10. Efforts will be made to solicit sponsors for refreshment breaks (see Sponsor benefits).

11. Efforts will be made to pursue a national speaker for education through grants or other opportunities.


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12. Efforts will be made to communicate course offerings to all licensees in the State of New Mexico to increase non-dues revenue and advertise to non-members.

Guidelines for Announcements to CARNM Members At the discretion of the Board of Directors or its Executive Director, CARNM may make announcements for the benefit of CARNM members. It is a goal of CARNM to inform members of matters of importance relating exclusively to commercial real estate while not sending such a quantity of announcements that they will cause members to ignore them. The following are general guidelines for announcements:

1. Administrative announcements to inform members of CARNM or other REALTOR® board issues or issues related to real estate licensure are permitted.

2. Meeting announcements for CARNM or other REALTOR® organizations or organizations approved

by the Executive Committee are permitted.

3. Educational announcements for CARNM or other REALTOR® sponsored classes. Other educational entities shall not be promoted.

4. Commercial announcements promoting products or services (other than CIE postings) of individual

businesses are not permitted.

5. Issues and advocacy: a. Announcements related to issues such as zoning matters, legislative matters or legislative

positions being taken by CARNM or other REALTOR® organizations are permitted. b. Announcements related to individual political candidates are not permitted.

The frequency of repeat announcements is determined by CARNM. If a CARNM member requests an announcement be made, and the Executive Director determines that running the announcement is not appropriate, then the member may request that the Executive Committee of the CARNM Board of Directors review the matter. The decision of the Executive Committee will be final.

Guidelines for CCIM Deal Making Session and LIN Marketing Meeting Guests The purpose of CCIM Deal Making Sessions and LIN Marketing Meetings is to offer CARNM members an opportunity to become familiar with properties on the market and to network with other CARNM members. To prevent guests from circumventing CARNM membership rules, the following guidelines will apply:

1. All guests must be invited by an attending CARNM or CCIM member, and the CARNM or CCIM member is responsible for the $10 broker (or others who work in a brokerage firm) guest fee or $100 fee for all other guests (cash or check payments only). Members should contact the CARNM office in advance of the meeting when bringing guests.

2. Guests may attend two CCIM Deal Making Sessions and two LIN Marketing Meeting each calendar year.


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3. Participation in a CCIM Forum or LIN meeting as a speaker will not count toward a guest’s yearly

limit on meeting attendance.

Notes:

• This policy is not intended to apply to CARNM-CCIM shared annual sponsors. See Sponsorship section.

• Hosts, host property guests, and highlighted sponsors are excluded from the guest policy.

Leasing Information Network (LIN) Meetings

Marketing Meeting Hosts Brokers may reserve a date to host a LIN Marketing Meeting by completing a sponsor form signed by the qualifying broker, landlord and host broker and returning it to the LIN Chair and the CARNM office.

Property Presentation Guidelines LIN will provide a PowerPoint presentation of new and changed listings at LIN meetings. Members email flyers in a PowerPoint format (one slide per listing) to the designated contact. Slides must be sent the Friday prior to the meeting (not the night before!). A “thank you” portion of the meeting will also be presented in a PowerPoint format. Members are encouraged to forward “thank yous”, including their name and the person they wish to thank, to the same designated contact. Listings will be posted to the CARNM website following each meeting.

Speakers The CARNM Board supports the LIN Committee’s desire for increased value to members at LIN meetings by providing speakers. The LIN Committee may invite speakers, which may include vendors, with the following considerations:

1. Sensitivity to current sponsors. No competitors to active sponsors permitted.

2. Topics presented with appropriate time constraints for that topic.

3. No advertisements for businesses.

Roundtable Meetings Results of roundtable discussions will be shared with meeting participants.

Thank You’s and Other Recognition of Done Deals A volunteer position for the monthly CARNM LIN Meeting and the monthly CCIM Deal Making Session would document thank you’s and other recognition of done deals presented at the meetings for distribution to members and posting to the CARNM and CCIM websites. The specifics include:

• Take notes of thank you’s shared at the meetings

• Compile notes for publishing (template provided)

• Verify information, as necessary

• Obtain comparable information, if possible


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• Find a substitute in the event unable to attend a meeting

• Run PowerPoint during meeting In exchange for this responsibility, no guest fees apply to meetings.

Membership

Primary Member REALTORS® who join CARNM pay national, state, and local dues to CARNM. They may also be members of another local association.

Secondary Member REALTORS® who join CARNM pay local dues only to CARNM. National and state dues are paid through another REALTOR® association.

New Member Orientation A new member is defined as any licensee who is joining CARNM for the first time or is renewing membership with CARNM after a break of one year or more. New member orientation must be completed by all new and transferring REALTORS®. Orientation is administered online in several parts: (1) CARNM questionnaire, (2) NAR and (3) CIE. The CARNM questionnaire is intended to focus on typical difficulties/misunderstandings and will be updated regularly.

CARNM Directory The CARNM directory will be provided electronically to members in a PDF format. A password protected electronic version will be published on the CARNM website. Each key sponsor representative will be included within the member listing.

Electronic Membership Lists CARNM will not provide electronic membership lists containing contact information extracted from the membership database to either members or non-members. Exceptions to this policy can only be approved by the President or his designee.

Institute Affiliate (IA) Members An Institute Affiliate is a member with one of the five commercial designations (CCIM, CPM, SIOR, ALC or CRE) who elects not to join the association as a REALTOR®. To keep their designation, they must hold membership in the local, state and national associations, so IA membership is their choice if they are not an active REALTOR® member.

The five ISCs (Institutes, Societies, & Councils, used to collectively describe organizations with specific relationship to NAR) are responsible for the membership records of the IA member in the NAR database. The ISCs are obligated to update NRDS with the adds, changes and drops. They also add and update any office records they create for the members. The ISCs are the only ones who can update the IA member records. Local and state associations do not have access to update the IA records. Because the IA member is obligated to be a member at the local, state and national level, they owe dues to the local, state and national associations. Each renewing IA member owes those dues by January 1, with a grace period until March 31.

Non-Member (license remains with REALTOR member office) Adjunct Non-Members are individuals who want to retain an active NM Real Estate License, but who do not engage in the sale or lease of real property and/or do not receive or share in commissioned


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compensation. Typical roles could include administrative personnel or marketing and research professionals. Because Adjunct Non-Members are not members of a REALTOR® association, including CARNM, they are not entitled to any benefits of membership. At the local level, these include, but are not limited to:

• Free and unlimited attendance at CARNM sponsored meetings (CCIM, LIN, Annual Meeting, etc.)

• Special member rates for CARNM sponsored educational programs

• Acknowledgment in the CARNM Membership Directory and Resource Guide

• REALTOR® subscription to the CIE (may not be named/identified on any listing profiled on the CARNM CIE).

Additionally, Adjunct Non-Members may not use the REALTOR® designation in correspondence, on business cards, etc., and may not in any way represent themselves as REALTORS®.

A Salesperson Non-Member is a licensee who is affiliated with a REALTOR Member office and who engages in the sale or lease of real property and/or receives or shares in commissioned compensation, but who has not joined the NAR, RANM, and CARNM Associations. Under this category, the Qualifying Broker and the Salesperson Non-Member understand:

• Salesperson Non-Member is not obligated to the NAR Code of Ethics, which could impact the Qualifying Broker and the Qualifying Broker’s office.

• Salesperson Non-Member is not entitled to any benefits of membership, including, but not limited to:

o Free and unlimited attendance at CARNM sponsored meetings (CCIM, LIN, Annual Meeting, etc.)

o Special member rates for CARNM sponsored educational programs o Acknowledgement in the CARNM Membership Directory and Resource Guide

o REALTOR subscription to the CIE (may not be named or identified on any listing profiled on the CARNM CIE).

A Salesperson Non-Member may not use the REALTOR designation in correspondence, on business cards,

etc., and may not in any way represent themselves as REALTORS.

Political 1. CARNM strongly supports the rights of each individual to own, use, and transfer real property and shall

maintain a proactive and non-partisan approach to the issues impacting the industry on a state and local level.

2. From time to time the Board may revise its legislative policy statement.

3. The CARNM Board will evaluate upcoming legislative issues and obtain a consensus in order to inform appropriate legislative contacts, such as RANM, of the position CARNM recommends. The membership will be notified of political positions taken by the CARNM Board.

4. Comments may be solicited from the CARNM Board and membership to determine a consensus of opinion on any particular issue.

5. CARNM will make efforts to be informed on current issues and may appoint representation on city or state committees and task forces.


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6. RPAC (REALTORS Political Action Committee) is a political action committee that funds 30% to national candidates and 70% to state candidates (city and county can be supported by agreement with RECPAC).

Funds are raised by REALTORS only. CARNM representatives are purely by application to RANM.

7. RECPAC (Real Estate Community Political Action Committee) is a political action committee that funds local races (city and county). Funds can be contributed by anyone. CARNM has two representatives appointed by the CARNM President as well as the chair of the GAAR/CARNM Public Policy Advisory Group with the CARNM President and CARNM Executive Director as ex-officio members.

8. The RECPAC Board of Trustees has authority to make recommendations for RPAC funding.

9. RECPAC/RPAC financial support is based on the following criteria

• Position on issues affecting real estate concerns

• Electability

• Benefits of making contribution initially or after election for debt reduction. 10. The CARNM Board equally supports political donations to RPAC and RECPAC through dues billing as well

as making contributions from the advocacy budget line item.

11. IAF (Issues Advocacy Fund) is a mandatory assessment collected by RANM. The IAF Committee reviews

requests to promote REALTOR related issues.

Sponsorship

1. Members of CCIM New Mexico and CARNM comprise the Joint Sponsorship Committee.

2. CCIM New Mexico and CARNM offer eleven Joint Primary Annual Sponsor opportunities and up to eleven Joint Secondary Annual Sponsor opportunities, both based on the CARNM/CCIM Sponsorship Opportunities Chart (amended from time to time).

3. The Sponsor’s allowance money (see CARNM/CCIM Sponsorship Opportunities Chart) shall be

distributed per the Sponsor’s instructions

4. Sponsorships are offered on a calendar year basis. Fees and benefits for sponsorships will be set by the Joint Sponsorship Committee.

5.

6. In the event a sponsor resigns, sponsorship fees will be refunded on a prorated basis if vacancy is filled.

7. Fees for sponsorships may be prorated for partial year participation.

8. A wait list of potential sponsors is maintained on a first-come, first-served basis.

9. Applications must be reviewed and approved by the Joint Sponsorship Committee.


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Technology

Demographics CARNM may consider engaging a commercial listing service to offer to CARNM members.

Tenant Data CARNM may consider acquiring tenant data from a commercial listing service to offer demographics to CARNM members.

REALTORS® Property Resource (RPR) CARNM may enter into an agreement to share CARNM’s proprietary database with other sources of commercial providers.

Website and Social Media CARNM’s goal is to make the website the premier source for commercial real estate in New Mexico. CARNM may promote sponsored properties to CARNM members for a fee. CARNM may include a vendor listing on the CARNM website to increase non-dues revenue at a fee to be determined by the CARNM Board.


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Financial Policies

General 1. CARNM will follow generally accepted accounting principles.

2. Accounts will be maintained at an insured financial institution(s) as approved by the Board of Directors.

3. CARNM may make investments that are interest bearing and that will only expose the principal to minimal risk.

4. CARNM will ensure that the necessary mechanisms are in place to accept and process fees for goods and services, REALTOR® dues and voluntary PAC contributions.

5. All payments must be made by Money Order, Cashier’s Check, Personal Check, Company Check or Credit Card. CARNM has a no cash payment policy.

6. CARNM will charge a $35 fee for any check returned due to non-sufficient funds, account closure, etc. If the REALTOR® or other member does not pay this fee in a timely manner, the charge may be billed to the Designated REALTOR® or Affiliate Company.

7. No expenditure or donation of CARNM funds whatsoever shall be made to religious, philanthropic or civic organizations without the approval of the Board of Directors.

8. All checks up to $3,000 require only one signature. All checks over $3,000 require two original signatures.

9. Signature authorization forms are updated annually with applicable banking/financial institutions. Only officers are granted signature authority. The CARNM President will have signature authority on the CCIM bank account along with CCIM officers.

10. The CARNM Board will review the need for an audit on an annual basis. If an audit is conducted, a representative from the audit firm will present the independent auditor’s report to the CARNM Board.

11. A CARNM restricted account for escrow purposes will be maintained for Professional Standards deposits.

12. Proceeds from any fundraiser will benefit a non-profit at the discretion of the CARNM Board.

13. Staff benefits include local mileage and paid holidays similar to the schedule set by RANM. Staff benefits may also include healthcare coverage including medical, dental, and vision or other Board-approved benefits with a monthly maximum contribution set by the Board of Directors.

14. The financial and management relationship between CARNM and commercial designation boards (CCIM, IREM or SIOR) shall be governed by a separate written agreement.

15. CARNM may allocate the cost of technology related matters, such as website design and CIE administration, to all its members equally.


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Membership Dues and Subscription Fees 1. Collection Policy: Membership Dues

Membership renewal fees (“dues”) for all categories of membership are due and payable on receipt of statement and considered delinquent if not received (or post office postmarked) by December 31. Any member remitting the overdue payment after January 1 will be assessed a late fee. As of February 1, Any REALTOR® Qualifying Broker who has outstanding dues will be dropped from membership (this includes his entire firm), and the firm and all individual members associated with it will be denied access to member services. Any REALTOR® Qualifying Broker who wishes his firm to be reinstated to membership, must bring the firm’s outstanding balance due (including late fees) to zero before the firm (and all individual members associated with the firm) is given access to services. As of February 1, any outstanding dues for individual members associated with the REALTOR® Qualifying Broker will be assessed to the REALTOR® Qualifying Broker.

2. Membership application fees are non-refundable. New members will be charged a one-time office set-up fee, which is higher than transferring members. New members are new offices not already

established in the National Association of REALTORS database. When a new member is transferring from another association or joining as a secondary member, the one-time office set-up fee is lower than a new member with a new office. If there is a break in service greater than one-year, new office fees apply.

3. A one-time fee will apply to new or transferring members. A one-time office fee will apply to new or transferring members. Rates are set by the Board.

4. If there is a break in service of less than one year, membership dues will not be pro-rated, and office set-p fees do not apply. If there is a break in service greater than one-year, new member rates and office set-up fee requirements apply.

5. Commercial Information Exchange (CIE) new members will not be charged a one-time set-up.

6. Non-CARNM members will be charged annual CIE subscription fees higher than those charged to CARNM members.

7. Local CARNM dues may be rebated on a pro-rated basis only if the REALTOR® is transferring his membership to another Board/Association in a different locale. Exceptions may be granted only at the discretion of the President and/or Executive Director.

8. Sponsor invoices will be sent in conjunction with annual membership dues.

9. Non-Member Licensee Fees. The role of CARNM is to collect the requisite national and state fees covering the licensee, transmit the collected funds to the end recipients, and maintain necessary records. For this service, CARNM charges an administrative fee.

Per CARNM Bylaws (Article X. Section 2. Dues), if any licensee remains with a REALTOR Member office but does not join CARNM, then the Qualifying Broker is responsible for the individual’s NAR, RANM, and CARNM dues and the Qualifying Broker’s dues are recalculated to include the amounts for all non-member licensees (whether Adjunct Non-Member or Salesperson Non-Member).

10. The voluntary Real Estate Community Political Action Committee (RECPAC)/REALTORS® Political Action Committee (RPAC) contribution amounts shall be reviewed each year by the Board of Directors.


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11. The Board has authorized the RECPAC Board of Trustees to make recommendations for RPAC funding.

12. Annually members will be invoiced for recommended RPAC contributions.

Credit Cards 1. CARNM credit cards:

• CARNM credit cards are to be used only for CARNM authorized business expenses.

• An expense report must be prepared and submitted with credit card receipts detailing the nature of the expense.

• The credit card limit will be $10,000.00.

2. Expense Reports

• All expenses must be documented by receipts.

• All CARNM member and staff expense reports must be approved by a member of the Executive Committee, who has the authority to delegate this responsibility as appropriate.


December 2018

Investment Policy

Executive Summary CARNM Executive Director Kendra Yevoli

Investment Manager RBC Dain Rauscher – RBC Wealth Management or other qualified investment company

Authorized Signators Officers of the CARNM Board of Directors

Transaction Requirements Two (2) Authorized Signatures

Transaction Limits No Checks Issued on Investment Account

ACH Transfers (limited to transfers between Ironstone Bank (operating account) and RBC Wealth Management)

Initiate – Executive Director by phone or email Authorize – Written approval from two (2) authorized signators

Wire Transfers (currently limited to payments to the National Association of REALTORS® (NAR) and the REALTORS® Association of New Mexico (RANM) for transmission of annual dues)

Initiate – Executive Director by phone or email Authorize – Written approval from two (2) authorized signators

Scope of the Investment Policy Statement This investment policy statement reflects the investment policy, objectives, and constraints of CARNM.

Purpose of the Investment Policy Statement This investment policy statement is set forth by the Board of Directors of CARNM, as recommended by the CARNM Finance/Executive Committee, and is intended to address the following:

1. Define and assign the responsibilities of all involved parties. 2. Establish for all involved parties a clear understanding of the investment goals and objectives of the

investment of assets. 3. Offer guidance and limitations to all related parties regarding the investment of assets. 4. Establish a basis for evaluating investment results. 5. Manage assets according to prudent standards.

In general, the purpose of this statement is to outline a philosophy and attitude that will guide the investment management of the assets toward the desired results. It is intended to be sufficiently specific to be meaningful, yet flexible enough to be practical.

Definitions The following are definitions of the most commonly used terms:

1. “Fund” shall mean investment assets of CARNM. 2. “Board of Directors” shall refer to the governing board of CARNM. 3. “Officers” shall refer to the President, the President Elect, the Secretary/Treasurer, and the Past

President. 4. “Fiduciary” shall mean any individual or group of individuals that exercise discretionary authority or

control over fund management or any authority or control over management, disposition or administration of the assets.


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5. “Investment Manager(s)” shall mean RBC DAIN Rauscher (RBC), a division of RBC Capital Markets Corporation, engaged to manage the investments of all or part of the Fund assets.

6. “Securities” shall refer to the marketable investment securities or investment vehicles, which are defined as acceptable in this statement.

7. “Investment Horizon” shall be the time period over which the investment objectives, as set forth in this statement, are expected to be met. The Investment Horizon will be reviewed annually.

8. “Laddered CDs” shall mean certificates of deposit with varying maturity dates.

Delegation of Authority The Board of Directors of CARNM has a fiduciary responsibility to its members and is responsible for directing and monitoring the investment management of all CARNM assets. As such, the Board of Directors is authorized to delegate certain responsibilities to professional experts in various fields, including but not limited to:

1. Investment Manager(s) – The Investment Manager(s) has discretion to purchase, sell, or hold the specific investment vehicles that will be used to meet CARNM investment objectives. The Investment Manager(s) will physically (or through agreement with a sub-custodian) maintain possession of assets owned by CARNM, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The custodian will also perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out of investment accounts.

2. Additional specialists, such as attorneys, accountants, auditors, actuaries, consultants, and others, may be engaged by the Board of Directors.

The Board of Directors will not exercise control over the investment decisions with the exception of specific limitations described in this statement. Investment Manager(s) will be held responsible and accountable to achieve the stated objectives.

Approval of Investment Manager(s) will be adopted upon a duly made, seconded and unanimously passed resolution of the Board of Directors in accordance with Section II, Financial, of the CARNM Policy Statements.

Delegation of Authority to the Executive Director The Executive Director is granted authority to perform the following:

1. Initiate all ACH transfers between the operating account maintained at the bank and the investment account with the fund’s manager either by phone or email.

2. Initiate Federal Fund wire transfers (by phone or email) with authorized approval from two (2) Officers of the Board of Directors.

3. Access all accounts, account information, and reports produced by and for the fund’s manager. 4. Review all reports and reconciliations for approval by the Finance/Executive Committee or the

Board of Directors.

Assignment of Responsibility

Responsibility of the Finance/Executive Committee The Finance/Executive Committee’s role is that of an advisor to the CARNM Board of Directors. Advice concerning the investment management of Fund assets will be offered by the Finance/Executive Committee and will be consistent with the investment objectives, policies, guidelines, and constraints as established in this statement. Specific responsibilities of the Finance/Executive Committee include:


December 2018

1. Develop and annually review the investment policy statement. 2. Conduct Investment Manager(s) searches when requested by the Board of Directors. 3. Provide “due diligence” or research on the Investment Manager(s). 4. Assist in negotiating all contracts. 5. Monitor the performance of the Investment Manager(s) to provide the Board of Directors with the

ability to determine the progress toward the investment objectives. 6. Report on the Fund’s performance to the Board of Directors. 7. Communicate matters of policy to the Investment Manager(s) and report progress to the Board of

Directors on the Fund’s performance. 8. Review CARNM investment history, historical capital market performance, and the contents of this

investment policy statement with any newly appointed members of the Finance/Executive Committee.

Responsibility of the Executive Director The Executive Director’s role is that of oversight of all the Fund’s assets and account management. Specific responsibilities of the Executive Director include:

1. Assist the Finance/Executive Committee with Investment Manager(s) searches. 2. Assist the Finance/Executive Committee in communicating matters of policy to the Investment

Manager(s). 3. Provide a current copy of the investment policy statement to the Investment Manager(s). 4. Disseminate reports of the Fund’s performance to the Board of Directors. 5. Periodically provide Investment Manager(s) with an estimate of expected net cash flow and direct

the Investment Manager(s) in establishing appropriate Investment Horizons and maturity dates.

Responsibility of the Investment Manager(s) The Investment Manager(s) will have full discretion to make all investment decisions for the assets placed under its jurisdiction, while observing and operating within all policies, guidelines, constraints, and philosophies as outlined in this statement. Specific responsibilities of the Investment Manager(s) include:

1. Exercise discretionary investment management including decisions to buy, sell, or hold individual

securities and to alter asset allocation within the guidelines established in this statement. 2. Report all monthly investment performance results on a timely basis.


December 2018

General Investment Principles 1. Investments will be made solely in the interest of CARNM. 2. The Fund will be invested with care, skill, prudence, and diligence. 3. Investment of the Fund will be structured to minimize the risk of losses. 4. The Board of Directors may employ one or more Investment Manager(s) of varying styles and

philosophies to attain the investment objectives.

Investment Strategy In order to meet its needs, the investment strategy of CARNM is to emphasize preservation of capital, that is, the aggregate return from capital appreciation and dividend and interest income. Specifically, the primary objective in the investment management for the Fund assets shall be:

To emphasize preservation of capital and create long-term growth of principal while avoiding excessive risk.

The goal of the Fund is to achieve a total rate of return sufficient to preserve all capital assets. Where possible, all investments must be made in fully insured or collateralized accounts that expose the principal to no risk. Therefore, in order to reduce the likelihood of underperformance and excessive deterioration of principal during such periods, this Investment Manager(s) must tend toward more “conservative” investment strategies. During the Investment Horizon in this statement, it is the goal of the aggregate Fund to exceed an absolute rate of return after all distributions and expenses equal to or greater than the rate of inflation measured by the Consumer Price Index (CPI).

Investment Management Policy 1. Preservation of Capital – Consistent with their respective investment styles and philosophies, the

Investment Manager(s) should make reasonable efforts to preserve capital, understanding that losses may occur in individual securities.

2. Risk Aversion – Understanding that risk is present in all types of securities and investment styles, the Board of Directors recognizes that some risk is necessary to produce long-term investment results that are sufficient to meet the Fund’s objectives. However, the Investment Manager(s) must make reasonable efforts to control risk and will be evaluated regularly to ensure the risk assumed is commensurate with the given investment style and objectives.

3. Adherences to Investment Discipline – Investment Manager(s) are expected to adhere to the investment management styles for which they were hired. Investment Manager(s) will be evaluated annually for adherence to investment discipline.

Definition of Risk The Board of Directors realizes that there are many ways to define risk. It believes that any person or organization involved in the process of managing a Fund’s assets understands how it defines risk so that the assets are managed in a manner consistent with the Fund’s objectives and investment strategy as designed in the investment policy statement. The Board of Directors defines risk as:

High volatility (fluctuation) of investment returns.

Liquidity To minimize the possibility of a loss occasioned by the sale of a security forced by the need to meet a required payment, the Executive Director will periodically provide Investment Manager(s) with an estimate


December 2018

of expected net cash flow. The Executive Director will notify the Investment Manager(s) in a timely manner, to allow sufficient time to build up necessary liquid reserves.

Investment Guidelines

Allowable Assets The Board of Directors requires that all the Fund assets be invested in the following and that each should be transacted quickly and efficiently:

1. Cash Equivalents – U.S. Government guaranteed money market funds. 2. Federal Depositors Insurance Corporation (FDIC) insured certificates of deposit (CDs) not to exceed

$100,000.00 per CD. 3. Laddering the CDs with different maturity dates to lower risk, increase the return without losing

access to at least some of the cash for net cash flow requirements, and possibly protect, or conversely benefit, from fluctuations in interest rates.

Prohibited Assets Prohibited investments include, but are not limited to, the following:

1. Commodities and Future Contracts 2. Stocks 3. Derivative Investments 4. Mortgage-Backed Securities 5. Private Placements 6. Options 7. Limited Partnerships 8. Venture – Capital Investments 9. Real Estate Properties 10. Interest-Only (IO), Principal -Only (PO), and Collateralized Mortgage Obligations.

Prohibited Transactions Prohibited transactions include, but are not limited to, the following:

1. Short Selling 2. Margin Transactions

Diversification of Investment Funds The Board of Directors does not believe it is necessary or desirable for investments being held in the Fund to represent a cross section of the economy or all capital markets. However, in order to achieve a prudent level of portfolio diversification and safeguard the Fund’s assets, the CDs of any one company should not exceed $100,000.00. U.S. Government backed money market funds may represent up to 100% of the Fund’s balance; however, the Investment Manager(s) should invest in CDs as soon as appropriate investments have been identified.

Performance Review and Evaluation Statements listing the Fund’s assets generated by the Investment Manager(s) shall be compiled monthly and communicated to the Finance/Executive Committee for review. An annual performance review will be performed, and the investment performance of the total portfolio will be measured against commonly accepted performance benchmarks. Consideration shall be given to the degree the investment results are consistent with investment objectives, goals, and guidelines as set forth in this statement. The Board of


December 2018

Directors intends to evaluate the portfolio within a three-year period, but reserves the right to terminate an Investment Manager(s) for any reason including the following:

1. Investment performance which is significantly less than anticipated given the discipline employed and the risk parameter established or unacceptable justification of poor results.

2. Failure to adhere to any aspect of this statement of investment policy, including communication and reporting requirements.

3. Significant qualitative changes to the investment management organization. Termination will occur in writing by notifying the Investment Manager(s) that all liquid assets should be immediately transferred to the CARNM’s operating account and all other assets transferred within a timely manner. The Investment Manager(s) must provide a final report of the transferred assets reconciled by CARNM.

Investment Policy Review The Investment Manager(s) shall be reviewed annually regarding performance, personnel, strategy, research capabilities, organizational and business matters, and other qualitative factors that may impact their ability to achieve the desired investment results. To assure continued relevance of the guidelines, objectives, financial status and capital market expectations as established in this statement of investment policy, the Finance/Executive Committee will review the investment policy annually and will report its results to the Board of Directors.


December 2018

Legislative Policy Statement The Commercial Association of REALTORS® New Mexico (CARNM) strongly supports the right of each individual to own, use and transfer real property. CARNM will strive to maintain a proactive and non-partisan approach to the issues contained in the Legislative Policy Statement. CARNM will work closely with the REALTORS® Association of New Mexico (RANM) and the National Association of REALTORS® (NAR) on issues impacting the industry on a state and national level. CARNM represents commercial members throughout the state of New Mexico.

Taxation CARNM favors a tax system that fosters economic growth and a strong real estate market. 1. CARNM opposes the imposition of a gross receipts tax on the rental or sale price of real property.

2. CARNM opposes across the board increases in the gross receipts tax and support legislative proposals that make it a local option to increase the gross receipts tax only to the extent that such increases clearly benefit affected taxpayers directly with enhancements to their quality of life.

3. CARNM opposes across the board increases in the real property tax and opposes increases in local real property taxes unless such increases clearly benefit affected taxpayers directly with enhancements to their quality of life.

4. CARNM opposes the imposition of impact fees that are unreasonable and add unnecessary costs to the consumer or would adversely affect the affordability of housing or commercial property.

5. CARNM opposes any form of a real estate transfer tax or rental tax.

6. CARNM opposes the practice of disguising taxes as fees, permits or licenses, any unreasonable fees or charges for permits or licenses or discrimination or any increase in fees without public input or approval.

7. CARNM support the use of general obligation bonds as a means of funding infrastructure that is necessitated by growth and development within the community.

8. CARNM supports a maximum annual cap on the increase of property tax commensurate with residential property taxes.

Government Regulation/Growth/Zoning/Land Use CARNM believes free enterprise and competition to be the best way of meeting consumer demand. We support the development of efficient and responsive governmental entities at all levels. 1. CARNM opposes employment of land use moratoria and/or non-amortizing uses as a means of stopping

or slowing development.

2. CARNM supports the requirement of mandatory land use planning. We believe in the fundamental right of all private property owners to determine the highest and best use of their land, working


December 2018

through appropriate governmental entities. We believe that local authorities, in close cooperation with their citizens, are ultimately responsible for managing growth and building better communities.

3. CARNM opposes any legislation that defines boundaries that arbitrarily restrict growth and reduce an owner’s private property rights.

4. CARNM opposes the use of sector plans and overly zones to artificially determine uses without reference to the market’s determination of that use.

Anti-Trust Compliance CARNM believes that vigorous and fair competition is essential to the maintenance of the free enterprise system. CARNM is committed to strict compliance with federal and state anti-trust laws. 1. CARNM recognizes that fees are a matter of individual agreement between client, customer, and real

estate broker and strongly oppose any attempt to fix or set rates or fees between individual real estate firms.

Economic Development CARNM supports the development of laws that encourages and promotes the expansion of existing commerce and the development of new commerce with the result of increasing job opportunities and provides competitive wages. CARNM supports sensible development, both infill and perimeter, to attain the “highest and best use” of the land and resources for existing and future generations. We do not favor or prefer one type of development over another except to ensure that the public is served and our communities remain strong, growing, and viable. 1. CARNM encourages the development of new commerce through tax incentives, industrial revenue

bonds, bond issues and other alternative methods.

2. CARNM supports efforts of local government, augmented by the state of New Mexico, to assist with creating private sector jobs for the next generation enabling them to be educated in the state and to find jobs without leaving the state.

3. CARNM supports efforts of local and state government to improve the quality of life of our citizens and communities. Quality of life is enhanced by providing bike paths, parks, cultural activities and education, and other amenities and is necessary to attract economic development.

4. CARNM supports the streamlining of the development process necessary to provide an adequate supply of housing for our citizens.

5. CARNM supports cooperation between governmental entities and encourages a holistic approach to problem solving between governmental entities.

6. CARNM supports regional planning and cooperation between government entities when the result will better serve the citizens.

7. CARNMs support development because it provides economic opportunity through investment and jobs. Development also provides homes, neighborhoods and communities for families.


December 2018

8. CARNM believes development is the vehicle for out-of-state resources to enter and invest in New Mexico while creating the growth and opportunities necessary for us to retain our most valuable in-state resource, our people.

9. CARNM Supports government funded infrastructure development.

Fair Housing CARNM supports fair housing for all citizens as embodied in the Fair Housing Partnership Resolution as approved by the National Association of REALTORS® and the U.S. Department of Housing and Urban Development. 1. CARNM supports the adoption of protected classes that are identical to the protected classes contained

in the federal fair housing law and the New Mexico Human Rights Act.

Affordable Housing CARNM supports efforts to afford all residents of the State of New Mexico the opportunity to live in safe and sanitary housing and favor legislative measures aimed at increasing the availability of affordable housing. 1. CARNM supports efforts of FHA, NMFA, VA and other lenders to increase awareness of affordable

housing programs.

Consumer Protection CARNM supports and encourages consumer protection programs that are consistent with maintaining and enhancing private property rights and urges education programs designed to inform the public of the existence and benefits of such programs. 1. CARNM opposes the placement of an affirmative disclosure duty regarding the location of released sex

offenders on real estate licensees as a result of state public notification programs.

2. CARNM opposes abusive or predatory lending practices such as loan terms that are undisclosed and/or deceptive; that result in home equity stripping or diminished personal credit standing; that induce borrowers to repeatedly refinance with higher points and fees with no clear benefit to the borrower; or that are violations of federal or state consumer protection statutes and regulations. CARNM feels that this issue should be addressed at the state or federal level and not at the local level.

3. CARNM opposes the imposition of an affirmative disclosure duty on real estate licensees to buyers of real estate as a result of meth labs, airport noise group homes, criminal activity, and stigmatized properties.

4. CARNM believes the disclosure is the responsibility of government officials and, if necessary, those officials should file appropriate disclosure with the property description that would be disclosed through the title search.

5. CARNM supports the development and implementation of specialized training of commercial real estate practices and/or commercial certification that recognizes the differences between residential and commercial practices to ensure that the consumer is best served by a qualified practitioner.


December 2018

Environmental Issues and Natural Resources CARNM urges continued action in the protection of the quality of our air and land. CARNM recognizes that property development, management, and preservation of natural resources are vital in order to protect our community and private property rights, as long as the economic factors are also taken into consideration. 1. Water

• CARNM recognizes that water is one of the cornerstones of private property rights and supports a common-sense approach to government’s control of ownership rights, usage, and conservation of this valuable resource.

• CARNM supports policy and education initiatives directed toward the retention and use of existing water resources while preserving private property rights.

• CARNM opposes the use of water as a growth management tool.

2. Liquid Waste – CARNM supports protecting the quality of the ground water while protecting private property rights. Liquid waste regulations are an integral element for this protection.

• CARNM supports New Mexico Environmental Improvement Department regulations that are based on sound science.

• CARNM supports the minimum ¾ acre lot size net of road easement for the use of a conventional septic system.

• CARNM supports phasing out the practice of grandfathering smaller lots.

• CARNM encourages the State of New Mexico Environmental Improvement Department Technical Advisory Committee to review and approve Advanced Treatment Units (ATU) in a timely fashion.

• CARNM endorses the practice of requiring the New Mexico Environmental Improvement Department to issue letters of determination good for one year indicating what type of septic system would be required on the property.

• CARNM endorses regulations requiring inspection of septic systems at the time of transfer of the property.

Education CARNM believes that a well-educated citizenry is an essential component of New Mexico’s economic well-being. 1. CARNM supports programs and legislation that will improve the educational system provided they are

prudent, accountably administered and strategically focused to yield demonstrable results that produce maximum value for each dollar invested.


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2. CARNM supports educational programs that increase and enhance job skills to support commerce and educational programs for work force training designed specifically to support industry in the community.

Business Climate CARNM supports legislation that promotes a healthy business climate that encourages business to locate and thrive in the state. 1. CARNM supports legislation that promotes the ability of members to conduct business in a profitable

environment of free enterprise.

2. CARNM supports legislation that makes it easier to operate small businesses, spurs business growth, and improves the economic vitality of both the state’s urban and rural areas.

3. CARNM promotes regulatory reform that would avoid duplicative regulation, streamlines permitting processes and procedures, and provides user-friendly government assistance for small business.

4. CARNM promotes the ability of the business community to offer health care benefits that are affordable and meet the needs of their employees.

Property Rights CARNM believes that governments shall not arbitrarily infringe on the basic right of the individual to acquire, possess, and freely transfer real property. Further, government shall protect private property rights as referred to in the 5th and 14th Amendments to the United States Constitution. 1. CARNM supports legislative implementation of the 5th Amendment’s guarantee of compensation when

property rights are taken. Every person should have the right to acquire real property with confidence and certainty that the use or value of such property will not be wholly or substantially eliminated by governmental action at any level without just compensation or the owner’s express consent.

2. CARNM recognizes the need for all levels of government to be able to exercise legitimate police powers in the regulation of private property to protect the health, safety, and general welfare of its citizens. However, when government actions or regulations are not founded within legitimate police powers, the government should be required to pay compensation for the inordinate burden levied on the property owner.

3. CARNM supports legislation that will provide property owners expeditious access to administrative and judicial systems at all levels – local, state and federal – to pursue Fifth Amendment takings claims or relief from other property rights violations.


December 2018

Management 1. CARNM will hire an Executive Director and other support staff as determined by the CARNM Board.

2. The roles and responsibilities will be maintained in current job descriptions.

3. Full and part-time staff is entitled to an annual performance review.

• The Executive Director reviews all staff and presents to the Executive Committee.

• The Executive Committee reviews the Executive Director. 4. The Executive Director shall annually update and maintain a Turnover Book which the Executive

Committee or Executive Transition Team (ETT) will use to aid in any transition. The Executive Committee will have access to the book through Dropbox and the CARNM President will be given a key to the safe.

Governing documents for the association and any subsidiaries (Articles of Incorporation, Bylaws, CIE Rules & Regulations, Minutes)

RANM and NAR Bylaws

NAR Organizational Standards Certification

IRS Letter of determination

Employer Identification Number

Current and previous 990s

Current and previous audited financial statements

Sales tax number

List of financial institutions; instructions for changing check-signing authority

List of key contacts (auditor, banks, investments, legal counsel, payroll company, management company, insurance information,

Notification list (who should be notified in the event of a departure of ED – banks, state association, NAR, association attorney, CPA, media, etc.)

Obtain sample press release and list of media contacts from RANM

List of location of important files – blank checks, bank records & statements, program files, membership records

List of key holders for association office

Record of passwords for secured sites (online banking, etc.)

CARNM organizational chart

Twelve Month Association Events Calendar Dues Collection and Remittance dates Convention and meeting dates for local, state and national Personnel reviews and salary adjustments Lease and maintenance agreement renewals Budget preparation and approval dates Annual Meeting Date


December 2018

Ombudsman Program Policies

Ombudsman Services The Ombudsman Program for the Commercial Association of REALTORS® New Mexico (CARNM) provides an informal way for REALTORS®, clients and customers of REALTORS®, and members of the public to discuss real estate-related concerns with an ombudsman. The ombudsman serves as a neutral and highly confidential resource, working with individuals to explore a range of approaches and services available to address their concerns and resolve conflicts. Ombudsman services are separate and independent from the professional standards processes and will provide a timely option to the more formal dispute resolution processes (i.e., ethics complaints, arbitration requests, and mediation services). The ombudsman will suggest referrals to other available services to the person seeking assistance and options. Persons filing formal complaints or inquiring about the process for filing ethics complaints will be advised that an ombudsman is available to assist them in informally addressing their concerns. Ombudsman services will be offered as a voluntary benefit to its users. If the matter discussed with the ombudsman indicates that a potential violation of the public trust may have occurred, the ombudsman process shall not begin or shall be immediately terminated, and the parties shall be advised of their right to pursue:

• A formal ethics complaint,

• A complaint with any appropriate governmental or regulatory body,

• Litigation, or

• Any other available remedy. NAR defines potential violations of the public trust as (1) demonstrated misappropriation of client or customer funds or property; (2) willful discrimination; or (3) fraud resulting in substantial economic harm. If ombudsman services are requested by a party with respect to an ethics complaint or an arbitration request, the one hundred and eighty (180) day filing deadline shall be suspended beginning with the date of the request for ombudsman services and shall resume when the services are concluded and/or terminated.

Ombudsman Requirements The ombudsman will report directly to the Board through its designated contact. While participating in the Ombudsman Program, the ombudsman may not serve on the Grievance or Professional Standards Committees. The ombudsman shall excuse himself from any action involving the real estate firm with which he is affiliated. He must excuse himself from any action in which he has a real or perceived conflict of interest, or in cases where he cannot be impartial and unbiased. The ombudsman should be thoroughly familiar with the National Association of REALTORS® Code of Ethics, New Mexico real estate rules and regulations, and current real estate practices.


December 2018

The ombudsman will be trained in the roles and responsibilities of an ombudsman. They will be approved by CARNM’s Board and will provide neutral and confidential assistance to users of the Ombudsman Program. Ombudsmen may be REALTORS®, staff members, or others acting in that capacity. The ombudsman will maintain strict neutrality and will not formally investigate complaints, draw conclusions about the merits of a concern, give advice (beyond advice about options, resources and approaches), make recommendations, take sides, determine outcomes, render opinions on the merits of ethics or arbitration claims, arbitrate or in any way adjudicate differences of opinion, or negotiate contracts. The ombudsman is expected to be an advocate for fairness and equal treatment but will never assume the role of advocating for an individual user of the program. The ombudsman has the authority to access information necessary to review an individual’s concern and may contact CARNM members, staff, or others to obtain information necessary to provide an informed response.

Confidentiality To the extent permissible by law, the Ombudsman Program holds communication with its users as confidential. The ombudsman will not release specific information regarding the user except with the user’s express permission or as a part of an agreed resolution approach. An important exception to confidentiality exists where failing to disclose information would result in imminent risk of serious harm to the individual or to another, or where there is a duty to disclose imposed by law. While the program user is free to share their own information, they must clearly understand and accept that by using the Ombudsman Program, they are now absolutely bound by a promise (in fact, a contract) not to seek disclosure of any information from the ombudsman or the Ombudsman Program. Except for short-term working notes, which may be necessary to help the ombudsman take follow-up actions, the ombudsman will not retain any written records. The Ombudsman Program will track cases to identify cycle time, level of effort, classification of parties, issue and transaction types, and mode of resolution; however, no individually identifiable information will be retained.

Reporting of Trends and Recurrent Issues The ombudsman will report trends, patterns, and recurrent issues or problems to the Board as appropriate.

Ombudsman Program Policies and Procedures The policies and procedures for CARNM’s Ombudsman Program will be reviewed and updated as needed to maintain currency with NAR guidance and to implement improvements and recommended changes.


December 2018

Professional Standards Policies

Code of Ethics Enforcement and Dispute Resolution System CARNM hereby adopts the Code of Ethics and Arbitration Manual (CEAM) of the NATIONAL ASSOCIATION OF REALTORS® (NAR), as amended from time-to-time, for the enforcement of the Code of Ethics, for addressing disciplinary matters, and for the mediation and/or arbitration of disputes. Within 60 days of the effective date of the revised CEAM (January 1 of each year), CARNM will implement all modifications into its administration of professional standards matters. The CARNM Board will decide on any required action called out in the CEAM Section, "Areas of the CEAM Requiring Board Action.” In all references in the CEAM to local Board or Association of REALTORS®, CARNM will be inserted. In all references to State Association of REALTORS®, REALTORS® Association of New Mexico (RANM) will be inserted. In all references to State, New Mexico will be inserted.

CARNM expects all REALTOR Members to uphold the Code of Ethics and the Constitution, Bylaws, Policy

Statements, and Rules and Regulations of the Association, and to comply with all REALTOR membership duties. Alleged violations of the Code of Ethics or of the Constitution, Bylaws, Policy Statements, and Rules and Regulations of the Association, or noncompliance with any other membership duty, will be processed according to the procedures set forth by CARNM. If a member is found in violation of the Code of Ethics, the bylaws or policy statements, or any other membership duty after a due process hearing, any recommended sanctions and/or disciplinary actions will be reviewed for ratification by the Board. In alleged violations of a membership duty in which there is no Complainant, the matter will be reviewed by the CARNM Executive Director and the Professional Standards Administrator, and if deemed necessary, will be referred to the Grievance Committee for a determination on whether there is sufficient evidence to warrant a Professional Standards hearing.

Cooperative Enforcement Agreement A Multi-Association Professional Standards Enforcement Agreement has been established between CARNM

and the Greater Albuquerque Association of REALTORS (GAAR) to administer professional standards cases involving at least one CARNM member and at least one GAAR member. Multi-association committees will be created only as needed to ensure due process to each association member in the resolution of cases, either residential or commercial, that involve multiple association members. Expenses related to the processing of cases will be borne by the administering association unless otherwise established in the authorization to apply the multi-association enforcement agreement or otherwise agreed to by both signatory associations. Fees charged to the parties will be consistent with those adopted into the bylaws and policies of the administering association. Any cases conducted and heard at the state level by RANM will adhere to their arbitration, appeal, and procedural review fee schedule.

Administration CARNM will maintain a viable professional standards process to enforce the Code of Ethics and provide arbitration and mediation as member services. The Board annually may determine how professional standards will be administered, and any contract will be reviewed by the Board. CARNM will hire RANM or another Professional Standards Administrator (PSA), and will seek certification training opportunities for staff, as time and funding permits.


December 2018

The CARNM PSA, whether a current employee or a contract employee, will attend the NAR Professional Standards Education Seminar annually to maintain currency with NAR’s Professional Standards policies, procedures and current practices. The PSA will complete NAR Professional Standards training every four (4) years.

Role of Board of Directors (Board) in Professional Standards The President of CARNM may appoint the Executive Committee or a Panel of Directors, acting on behalf of the Board, to hear ethics complaint appeals, requests for procedural reviews, and appeals of Grievance Committee decisions. Any Panel so appointed must be composed of at least five (5) Directors or a quorum of the Board, whichever is less. CARNM will make all reasonable efforts to impanel impartial Panels to conduct hearings, appeals or procedural reviews. These efforts may include the appointment of knowledgeable Members of CARNM on an ad hoc basis to serve either on a Hearing Panel or on behalf of the Board. All ratifications of ethics hearing decisions shall be reviewed and decided upon by the CARNM Board. A member of the Board may continue to serve on the Grievance or Professional Standards Committee for the balance of his appointment to the committee. In exceptional circumstances, a member of the Board may be considered for reappointment to one of these committees or may serve as a Chairperson. Officers on the Board of Directors may not serve on the Grievance or Professional Standards Committee. A member of the Board shall excuse himself from any action before the Board for which he reviewed or heard the matter as a member of the Grievance or Professional Standards Committees. A member of the Board shall excuse himself from any action involving the real estate firm with which he is affiliated. He must excuse himself from any action in which he has a real or perceived conflict of interest, or in cases where he cannot be impartial and unbiased. All members of the Board shall attend annual Professional Standards training. Board members who are not up-to-date with their training will not participate in the ratification of ethics decisions, or the hearing of appeals and requests for procedural reviews. All Professional Standards actions by a panel of the Board are confidential and closed sessions.

Committee Membership The Grievance Committee shall consist of at least six (6) members of CARNM. A quorum for each Grievance Committee case ruling shall consist of at least five (5) voting Members. The Professional Standards Committee shall consist of at least fifteen (15) members of CARNM. Appointments to the Grievance and Professional Standards Committees will be for a three-year term, with each new term commencing on the 1st day of April of any given year. Appointments will be made by the Board’s President and approved by the Board. Terms may be extended for an additional three years with approval by the Board. The Board’s President will select the chairpersons and any vice-chairpersons, as desired, of the committees. Appointees to the Grievance or Professional Standards Committees must meet the following standards:


December 2018

1. Be a REALTOR® in good standing with CARNM for the past five (5) years on a consecutive basis with no ethics violations in the three (3) years prior to consideration for committee membership;

2. Once an appointment is made, any committee member found in violation of the Code of Ethics will

be removed from the committee for a period of three (3) years from the date the decision becomes final; and

3. Any committee member who no longer maintains active membership status in CARNM will be

removed from the committee. No Member may serve concurrently on the Grievance and Professional Standards Committees. Members who are serving as CARNM ombudsman may not be active members on either the Grievance or Professional Standards Committees. A member of the Grievance or Professional Standards Committees shall excuse himself from any action involving the real estate firm with which he is affiliated. He must excuse himself from any action in which he has a real or perceived conflict of interest, or in cases where he cannot be impartial and unbiased. All returning members of the Grievance and Professional Standards Committees must attend an annual Professional Standards training session to refresh their knowledge of the Code of Ethics and the Grievance and Professional Standards processes. At least once in a three-year period, all members of these Committees must attend a four-hour Professional Standards training course. New members must attend a four-hour Professional Standards training course prior to becoming a voting member on either the Grievance Committee or Professional Standards Committee. All Grievance Committee meetings and Professional Standards hearings are confidential and closed sessions.

Grievance Committee Ethics Complaints and Requests for Arbitration shall promptly be referred to the Chairperson of the Grievance Committee for determination by the Committee within forty-five (45) days as to whether the matter should be referred for a Professional Standards hearing. Grievance Committee members assigned to assist a non-member complainant in preparing a proper complaint shall provide only procedural assistance and shall not act as the complainant’s advocate or representative. They shall recuse themselves from the Grievance Committee’s review and decision on that particular case. The Grievance Committee, in extremely rare circumstances and only if deemed appropriate, may request the party(ies) named as respondent(s) in an ethics complaint or a request for arbitration to provide the Grievance Committee with a written response to the ethics complaint or the arbitration request prior to the Grievance Committee making a determination on the matter. The respondent(s) will have fifteen (15) days from transmittal of the request to submit his response.

Hearings A Hearing Scheduling Conference may be conducted with the parties to an ethics or arbitration matter for the following purposes: (a) to review the hearing process; (b) to answer any procedural questions; and (c) to set a date for the hearing. The Conference is not intended, nor would it be allowed, to be a hearing on the merits of the case. The Scheduling Conference may be conducted in person or by teleconference.


December 2018

A Professional Standards Hearing Panel consists of a non-voting chair with five (5) Panel Members, unless modified by unanimous agreement of all parties to the hearing. Additional Panel Members in excess of the non-voting chair and the five (5) Panel Members shall serve as alternates and are bound to same duties that are applicable to panel members. They shall attend the hearing but not ask questions of the parties and/or the witnesses; and while they can be present in the Executive Session, they may not participate in deliberating or deciding the matter. The alternates would only participate in the hearing and vote at the Executive Session if one or more of the other Panel Members cannot complete their charge. Any party may file with CARNM a written request for disqualification of a member of a tribunal (Hearing Panel or Board), stating the grounds alleged as the basis for disqualification. A party shall be deemed to have waived any grounds of disqualification of which he then has knowledge unless he files the request within ten (10) business days from the date a list of names of members of the Professional Standards Committee or Board has been mailed to the party. Hearing panel packages, including the ethics complaint or arbitration request, and responses, if any, will be provided to Hearing Panel Members a minimum of seven (7) days prior to a hearing. The Hearing Panel Chair, or the Professional Standards Chair in the Hearing Panel Chair’s absence, will rule on any requests for postponement of a hearing. If a prehearing meeting of the Hearing Panel is required, the Hearing Panel Chair will determine whether parties may be present, and the extent to which their participation will be permitted. CARNM shall have a court reporter present at all ethics and arbitration hearings or shall record the proceedings. CARNM’s recording or transcription shall be considered the official record of the proceeding. At the Board’s discretion, any party may record the proceeding or utilize a court reporter at their own expense; and must provide a copy of any transcribed recordings to the CARNM Professional Standards Administrator. If the Board utilizes a court reporter in lieu of recording, the parties may not be prohibited from making their own recording. Videotaping of ethics or arbitration hearings is not permitted except with the advance express consent of the parties and the panel members. The recording or any transcription prepared from a recording of the hearing shall be strictly confidential and used only for the purpose of appeal or procedural review. Such recording or transcription may not be introduced into evidence at any subsequent proceeding other than an appeal or a procedural review. If requested within the time frame allowed for appeals or procedural reviews, parties may obtain a copy of the Board’s official recording subject to payment of any Board’s duplication or transcription costs. CARNM will not record appeals and limited procedural reviews. Parties and their witnesses may request permission to participate in hearings via teleconference or videoconference. Requests will be determined at the discretion of Hearing Panel Chair. Only parties eligible to attend entire hearing can participate “remotely” for entirety of the hearing; witnesses would only participate “remotely” for their own testimony. Panels, staff and counsel will take necessary measures to preclude unauthorized individuals from being in the presence of “remote” participants to ensure the confidentiality of the proceedings. Parties must present evidence that any taped testimony by a party or a witness was taken under oath and includes a certification by a disinterested third-party as to the identity of the party or witness along with the date, time and location of the recording. Costs of “remote” testimony shall be the responsibility of the requesting party. Matters in front of a Hearing Panel could be continued at any time if the Hearing Panel feels they should have Board Counsel present.


December 2018

All hearing panel decisions in ethics and arbitration matters will be reviewed by Board Counsel prior to becoming final and being distributed to the complainant(s) and respondent(s).

Ethics Complaints CARNM does not adopt the expedited ethics administration procedures. CARNM does not adopt the optional citation policy and schedule of fines available through NAR. CARNM adopts the ethics mediation procedures as outlined in Appendix XI to Part Four of the CEAM. In ethics hearings, either party may be represented by legal or REALTOR® counsel (or both), and each party is to provide written notice to CARNM, not less than fifteen (15) days prior to the hearing, of an intention to have legal and/or REALTOR® counsel present, including counsel’s name, address, and phone number. Each party is to provide the Association, not less than fifteen (15) days prior to the hearing, with a list of the names of the witnesses he/she intends to call at the hearing. All appeals of Hearing Panel’s decisions in ethics matters must be in writing and must be filed with CARNM within twenty (20) days after the Hearing Panel’s Decision has been transmitted to the parties. The appeal must be accompanied with a $250 filing fee that will be held in a CARNM restricted account for escrow purposes. The written request for appeal shall be reviewed by the PSA, as delegated by the Board’s President, within ten (10) days after the appeal was transmitted to the Association to determine whether the appeal states any legitimate basis for consideration by the Board. If determined to be insufficient, it shall be returned to the appellant accompanied by an explanation and a request for additional detail to be received within ten (10) days of notice. This initial administrative review is not a decision on the merits of the appeal request. All requests for appeal received by the Board must be considered by the Board; and only those bases and issues raised in the written request for appeal may be raised by the appellant in the appeal hearing. Each party is to provide written notice to CARNM, not less than ten (10) days prior to an appeal hearing, of (1) their intention to have legal counsel present, including counsel’s name, address, and phone number, and (2) any challenges to hearing panel members that they wish to make. In an appeal of an ethics decision, if the recommendation of the Hearing Panel is adopted, the money deposited by the appellant shall be used to cover costs of the appeal hearing. Any portion not used specifically to cover costs of the appeal shall go into the general operating fund of the Board. If the panel’s recommendation is rejected, the deposit shall be returned to the party who made the deposit. If the recommendation is modified, the Board shall determine the disposition of the deposit. Copies of the ethics Hearing Panel’s decision, as presented to the full Board for ratification, will include the names of the parties. CARNM does not adopt Part Four, Section 23(n) permitting publication of the names of Code of Ethics violators after a second violation occurs within a three (3) year period. An administrative processing fee in the amount of $500 will be imposed against each respondent found in violation of the Code of Ethics or other Membership duties. This fee is in addition to any disciplinary sanction imposed. Payment of the administrative processing fee will be made in accordance with CARNM Bylaws and Policies related to Financial Obligations.


December 2018

The PSA and the Hearing Panel Chairperson may consider and collectively approve changes to course assignments in instances where courses are no longer available or offered within the specified disciplinary period. Failure to comply with imposed discipline by the end of the specified six-month disciplinary period by a Respondent found in violation of the Code of Ethics will automatically invoke a $200 penalty and will constitute the basis for consideration by the Board regarding any additional action(s) required to ensure compliance with the original discipline imposed. The party failing to comply with the originally imposed discipline will have the opportunity to appear before the Board to explain the failure to comply. Absent an explanation acceptable to the Board, additional discipline, including possible suspension or expulsion from membership, may be imposed in a manner consistent with the procedures established in the CEAM.

Arbitration A request for arbitration must be accompanied by a required deposit of $250 made payable to CARNM, which funds will be held in a CARNM restricted account for escrow purposes. Submission of a dispute to arbitration by CARNM shall consist of signing and delivering to CARNM either a request or response form provided by CARNM (Form #A-1 or #A-2, Request and Agreement to Arbitrate, or Form #A-4, Response and Agreement to Arbitrate) or any other similar writing permitted by law and making the appropriate deposit of $250. Arbitration shall not proceed unless the signed Response and Agreement Form (Form #A-4) and deposit amount of $250 have been received from the respondent and the respondent appears and takes part in the hearing, or the respondent has been ordered by a court to appear and arbitrate and such court order includes language allowing the arbitration to proceed in the absence of the respondent. CARNM will offer disputing parties an opportunity to mediate prior to an arbitration request being filed. Upon receipt of an arbitration request, mediation services shall be offered to disputants prior to review of the arbitration request by the Grievance Committee except where any party requests the Grievance Committee’s determination whether an arbitrable issue exists between the named parties and whether the parties would be required to arbitrate. CARNM does not require REALTOR® Principals, their firms, and other parties to an arbitration matter to mediate otherwise arbitrable disputes pursuant to Article 17. CARNM will not provide mediation services for non-arbitrable issues as identified in Appendix I of Part Ten of CEAM. In arbitration hearings, either party may be represented by legal counsel and each party is to provide written notice to CARNM, not less than fifteen (15) days prior to the hearing, of an intention to have legal counsel present, including counsel’s name, address, and phone number. Each party is to provide CARNM, not less than fifteen (15) days prior to the hearing, with a list of the names of the witnesses he/she intends to call at the hearing. CARNM will not hear arbitration matters for disputed amounts less than the sum of the combined arbitration filing fees. CARNM will provide arbitration hearing services for voluntary arbitration matters. The arbitration deposits of the parties shall be used to cover costs of arbitration. Any portion not used specifically to cover costs of the arbitration shall go into the general operating fund of the Board.


December 2018

CARNM encourages parties to settle their disputes at any time. At the outset of an arbitration hearing and prior to adjournment, the Hearing Panel Chair will inform the parties that settlement is an option. At any time during the hearing, the parties can ask for a recess in an attempt to reach a settlement agreement. The parties, with the assistance of their respective counsel, if any, will determine the terms of their settlement agreement. The parties will be advised that the arbitration will continue to be processed until formally withdrawn by the complainant. If an arbitration matter is resolved through informal dispute resolution processes (e.g., mediation, ombuds services, informal negotiations, etc.) prior to the start of an arbitration hearing, CARNM will refund the arbitration filing fees to the parties, minus any unpaid mediation costs. If the matter is settled after an arbitration hearing has begun, the arbitration deposits of the parties shall be used to cover the costs of arbitration and any balance shall go into the general operating fund of the Board. If an award is rendered, the non-prevailing party must (within 10 days of transmittal of award) either (1) pay the prevailing party or (2) deposit funds with CARNM to be held in a CARNM restricted account for escrow purposes. Failure to do so within this time period may be considered a violation of a membership duty and may subject the member to disciplinary action at the discretion of the Board. The parties have twenty (20) days from the date award was transmitted to the parties to request a procedural review or to notify the PSA that a legal challenge to the validity of the award has been initiated. The Procedural reviews must be accompanied with a $500 filing fee that will be held in a CARNM restricted account for escrow purposes. The request for procedural review shall be reviewed by the PSA, as delegated by the Board’s President, within ten (10) days of receipt of the request to determine whether the request states any legitimate basis for consideration by the Board. If determined to be insufficient, it shall be returned to the requester accompanied by an explanation and a request for additional detail to be received within ten (10) days of notice. This initial administrative review is not a decision on the merits of the procedural review request. All requests for procedural review received by the Board must be considered by the Board; and only the bases raised in the written request for procedural review may be raised during the review before the Board. If there is no procedural review request or legal challenge, the award is final and binding after 20 days of transmittal of the award to the parties and the funds may be released at that time (if held by the Board). If the Board confirms the award in a procedural review, the non-prevailing party has an additional 15 days from transmittal of the confirmation of the award to institute a legal challenge to the validity of the award (i.e., legal counsel must advise Board in writing of suit). If after 15 days, there are no legal challenges, the funds are released. Each party is to provide written notice to CARNM, not less than ten (10) days prior to a procedural review, of (1) their intention to have legal counsel present, including counsel’s name, address, and phone number, and (2) any challenges to hearing panel members that they wish to make. In a procedural review, if the Board confirms the award of the Hearing Panel, the filing fee submitted by the requester of the procedural review shall be used to cover costs of the procedural review. Any portion not used specifically to cover costs of the procedural review shall go into the general operating fund of the Board. If the Board overturns the award based on a substantial procedural error in the hearing process, the filing fee shall be returned to the requester of the procedural review. If the Board invalidates the original award and directs the matter be referred for a new hearing with a different hearing panel, no additional arbitration filing fees will be charged the parties.


December 2018

If a member fails to comply with an award, the recipient to whom the award has been rendered by the arbitration panel shall be advised by the Board to seek judicial enforcement and to request reimbursement of legal fees incurred in seeking enforcement.

Mediation Mediation is available to resolve disputes between parties in an arbitration matter at a cost of $150 per party. Checks should be made payable to CARNM, and funds will be held in a CARNM restricted account for escrow purposes. Prior to or upon receipt of an arbitration request, mediation services shall be offered to disputants. This may be prior to review of the arbitration request by the Grievance Committee except where any party requests the Grievance Committee’s determination whether an arbitrable issue exists between the named parties and whether the parties would be required to arbitrate. CARNM will not require REALTOR® Principals and other parties to an arbitration matter to mediate otherwise arbitrable disputes pursuant to Article 17. CARNM will not provide mediation services for non-arbitrable issues as identified in Appendix I of Part Ten of the CEAM. CARNM adopts the ethics mediation procedures as outlined in Appendix XI to Part Four of the CEAM. There is no charge to the parties for mediation related to ethics concerns. Consistent with NAR’s Buyer-Seller Dispute Resolution System, CARNM supports the resolution of disputes between buyers, sellers, and/or real estate brokers/salespeople that are related to a real estate transaction but not otherwise covered in Article 17 of NAR’s Code of Ethics (arbitration) or related to a potential ethics violation of NAR’s Code of Ethics. If one of the parties fails to comply with the terms of a mediated Resolution Agreement, the other party(ies) to the Resolution Agreement shall be advised by the Board to seek judicial enforcement and to request reimbursement of legal fees incurred in seeking enforcement. If mediation is requested by a party with respect to an ethics complaint or an arbitration request, the one hundred and eighty (180) day filing deadline shall be suspended beginning with the date of the request for mediation and shall resume when the mediation is conducted and/or terminated. If the matter for mediation indicates that a potential violation of the public trust may have occurred, the mediation process shall not begin or shall be immediately terminated, and the parties shall be advised of their right to pursue:

• A formal ethics complaint,

• A complaint with any appropriate governmental or regulatory body,

• Litigation, or

• Any other available remedy. NAR defines potential violations of the public trust as (1) demonstrated misappropriation of client or customer funds or property; (2) willful discrimination; or (3) fraud resulting in substantial economic harm. CARNM offers a flat compensation rate of $300 per mediation to its mediators. Since CARNM has no trained mediators within its membership, CARNM uses qualified and willing mediators in the local area. If the mediator chooses to use a co-mediator, the $300 would be split between the two mediators.

Financial Obligations Any member who fails to pay administrative processing or filing fees, fines, assessments, or arbitration awards within ten (10) days after the due date, are subject to the CARNM’s Bylaws and Policies related to


December 2018

nonpayment of financial obligations. Nonpayment of such fees, fines, assessments, or awards may subject the non-paying Member to late fees and to suspension at the discretion of the Board. All Association services, including CIE access, to a suspended Member shall cease during the time of such suspension.

Professional Standards Records In ethics cases, CARNM will retain records for one year after the decision is made final or completion of any imposed disciplinary action, whichever is later, absent a threat of litigation. In arbitration matters, CARNM will retain records for one year after the decision is final or one year after the award has been paid, whichever is later, absent a threat of litigation. The PSA will request the destruction of court reporters’ electronic records and/or transcripts at the time the case records are destroyed. CARNM will retain final decisions of arbitration Hearing Panels in the non-prevailing parties’ Membership files, and final decisions of the Board relative to ethics proceedings in the respondent’s Membership file if a violation has been found. Copies of written warnings or reprimands and copies of confirmation of completion of assigned discipline will also be kept in the Member’s file. In mediation matters, CARNM will retain copies of the Agreement to Mediate and the Confidentiality Statement as signed by all the parties for one year. All other records held by CARNM pertaining to the mediation and any resulting Resolution Agreement will be destroyed immediately following the mediation conference.


December 2018

Real Estate Community Political Action Committee (RECPAC)

Purpose RECPAC shall be organized and operated exclusively for the purposes of supporting the nomination or election of candidates for public office throughout the State of New Mexico who share the ideals and principals of REALTORS®, and otherwise doing any and all things necessary to support the public policy agenda of the Greater Albuquerque Association of REALTORS® and CARNM in accordance with federal, state and city laws.

Members • Five (5) from GAAR membership

• Three (3) from CARNM membership

• The Chair of the GAAR/CARNM Public Policy Advisory Group who shall serve for one year

Public Policy Advisory Group

Purpose The purpose of the Public Policy Advisory Group is to ensure there is effective communication between the local boards (CARNM and GAAR), the RECPAC Trustees and the RPAC-NM Trustees so that the wishes of the local boards are fully represented to RPAC-NM when determining positions on advocacy issues and contributions to state candidates within the central district.

Members The Public Policy Advisory Group shall be comprised of:

• President-Elect of the CARNM Board or their designee (1-year term)

• President-Elect of the GAAR Board or their designee (1-year term)

• CARNM’s Co-Chair selected from RECPAC Trustees (3-year term)

• GAAR’s Co-Chair selected from RECPAC Trustees (3-year term)

• Central District RPAC-NM Trustees (2-year terms)

• Central District Vice President The Association Executives from each local board shall serve as non-voting members. The Co-Chairs representing each board shall not serve as a Central District RPAC-NM Trustee.

Sub-Committee: RPAC-NM Selection Committee for the Central District The purpose of the District Selection Committee shall be to meet and review all applicants for RPAC-NM Trustee positions considering input from local boards and shall select the Trustees to serve as the district’s representative on the RPAC-NM Board of Trustees. The Central District Vice President, President-Elect, and Public Policy Advisory Group Co-Chairs for each board shall be named as automatic members of the RPAC-NM District Selection Committee for the Central District.

Meetings Meetings will be determined by RECPAC and/or RPAC-NM Trustees to coincide with State Candidate Funding meetings.


December 2018

Conflict of Interest Policy In their capacity as officers, directors, employees, and volunteers, the individual leaders of CARNM must always act in the best interest of the organization they represent.

1. What Is a Conflict of Interest? A conflict of interest may arise in any circumstance that may compromise the ability of an officer, director, employee, or volunteer to make unbiased and impartial decisions on behalf of CARNM. Such circumstances may involve family relationships, business transactions, professional activities, or personal affiliations. Officers, directors, employees, or volunteers should report any set of circumstances to the Executive Director or President that may appear to pose a conflict of interest, even if there is uncertainty as to whether such circumstances should be disclosed.

2. How Are Conflicts of Interest Identified? When evaluating a particular set of facts or circumstances, the Executive Director or President shall consider the following non-exhaustive list of factors that may indicate a conflict of interest:

• Solicitation or acceptance of gifts or other items of value that may create an appearance or expectation of special treatment;

• Any incident of abuse or misuse of a leadership position for personal or third-party gain or benefit;

• Situations in which an officer, director, employee, or volunteer may be divided between personal interests or the interests of another organization and the best interests of CARNM;

• Business, professional, or other activities that would materially and adversely affect CARNM either directly or indirectly; and,

• Any arrangement in which an officer, director, employee, or volunteer provides goods or services to CARNM as a paid vendor or has a direct or indirect ownership or employment relationship with such a vendor.

The Executive Director or President may request additional information from any officer, director, employee, or volunteer at any time. The findings of the Executive Director or President shall be forwarded to the Board of Directors with a recommendation for action; however, no individual whose relationships or activities are under review may participate in deliberations, debate, or any vote of Board of Directors while such review is pending.

3. How Are Conflicts of Interest Resolved? If the Executive Director, President, or the Board of Directors identifies an actual, potential, or apparent conflict of interest, the Board of Directors may take one of the following actions to resolve such conflict:

• Waive the conflict of interest as unlikely to affect the officer’s, director’s, employee’s, or volunteer’s ability to act in the best interests of the organization;

• Determine that the individual officer, director, employee, or volunteer should be recused from all deliberation and decision-making related to the particular transaction or relationship that gives rise to the conflict of interest. This course of action should apply particularly when the transaction or relationship is one which presents a conflict only with respect to one or two discrete programs or activities; or


December 2018

• Recommend that the individual officer, director, employee, or volunteer resign from his service to CARNM. This course of action should apply when the conflict of interest is so pervasive that the officer, director, employee, or volunteer would seldom, if ever, be able to act solely in the best interests of the CARNM.

The Executive Director or President may refer any such matter to the Board of Directors at any time. The Board of Directors may overrule any recommendation of the Executive Director or President with regard to any actual, potential or apparent conflict of interest, and the Board of Directors reserves final authority over the resolution of all conflicts of interest. (See CARNM Bylaws Article XI, Section 8).

4. May Officers, Directors, Employees, or Volunteers Do Business with CARNM? A conflict of interest exists any time an officer, director, employee, or volunteer seeks to enter into a business relationship with CARNM. Similar conflicts arise through family members or through organizations in which officers, directors, employees, or volunteers serve in a leadership, employment, or ownership capacity. Such conflicts do not, however, necessarily preclude business relationships with CARNM. The following procedure is designed to resolve conflicts of interest whenever an officer, director, employee, volunteer, or a related party, seeks to provide goods or services to CARNM as a paid vendor, or applies to receive a significant grant or contract from either organization:

• The officer, director, employee, or volunteer must promptly disclose the intent to enter into a business relationship with CARNM, either to the Executive Director, the President, or the Board of Directors.

• The officer, director, employee, or volunteer must recuse himself from all deliberation, debate, and voting related to the contemplated business relationship.

• If the value of the transaction annually exceeds $5,000, CARNM must solicit proposals or applications from a broad range of other qualified candidates for the agreement, contract, or grant under consideration.

• The Board of Directors must determine, without the presence or participation of the officer, director, employee, or volunteer under review, that the transaction is fair and in the best interest of CARNM.

• If the Board of Directors approves the business relationship under consideration, the officer, director, employee, or volunteer may not participate in any process by which his performance as a vendor, grantee, or recipient is evaluated, or in any such evaluation of a related party.


December 2018

Records Retention Policy The purpose of this policy is to ensure that necessary records and documents are adequately protected and maintained, as well as to ensure that records no longer needed, or of no value, are discarded at the appropriate time. CARNM will maintain an inventory of documents that will go through the normal process of destruction pursuant to this policy.

Records that are relevant to litigation or potential litigation must be preserved until legal counsel advises that they are no longer needed. This includes audits, investigations, litigation, as well as notice of a claim or notice of potential litigation.

Organizational and Legal Records Articles of Incorporation Permanent Charter Permanent Bylaws Permanent Policies and Procedures Permanent Minutes of Board Meetings Permanent Deeds and Titles Permanent Leases 6 years after expiration or termination Contracts and Agreements 6 years after expiration or termination Public Filings 6 years Press Releases 6 years Attorney Opinion Letters 6 years after expiration or termination of

agreement to which opinion applies; otherwise 6 years

Legal counsel will be consulted to determine the retention period for particular documents

Generally 6 years

Member Records Enrollment Forms 3 years after inactive/termination; scanned

version kept indefinitely Membership Change Forms 3 years after inactive/termination; scanned

version kept indefinitely Training and Education Records 4 years after date of class

Professional Standards Records Final Ethics Decisions by CARNM Board in Respondent’s Member File If Violation Found

Permanent

Ethics Complaints Folders 1 year after final decision or completion of any disciplinary action, whichever is later, absent threat of litigation

Final Arbitration Decisions in Non-Prevailing Member File

Permanent

Arbitration Folders 1 year after final decision or payment of award, whichever is later, absent threat of litigation

Agreement to Mediate/Confidentiality Statement 1 year after mediation conference All of information in Mediation Folders Destroyed immediately following mediation

conference unless continuance scheduled


December 2018

Federal, State, and Local Tax Records IRS Form 990, NM CIT-1, and Support Permanent Gross Receipts Tax Reports 6 years State Public Regulation Commission filings 6 years

Accounts Payable/Accounts Receivable Records Original Invoices 7 years Employee Expense Reports 7 years 1099 Forms 7 years Accounts Receivable 7 years Receipts 7 years Uncollected Accounts 7 years

Bank and Investment Records Bank Statements 7 years Deposit Records 7 years Bank Reconciliations and Support 7 years Wire Transfer Records 7 years Investment Records 7 years

Financial Records General Ledgers 7 years Subsidiary Ledgers 7 years Annual Financial Reports (audited) Permanent Audit Reports Permanent

Budget Records Budget Records 7 years Budget Variance Reports 7 years Property Insurance Policies Life of the Property Liability Insurance Policies Life of the Policy plus 3 years Insurance Claim Documents Settlement plus 3 years

Electronic and Email Records All electronic records relevant to the above categories will be similarly retained. Emails relevant to the above categories will be electronically stored separately from the email program.


December 2018

Whistleblower Policy CARNM is committed to high standards of ethical, moral, and legal business conduct. CARNM is further dedicated to acting in good faith with those officers, directors, employees, or volunteers who raise concerns regarding incorrect financial reporting, unlawful activity, or otherwise improper conduct. This Whistleblower Policy aims to provide officers, directors, employees, or volunteers with an avenue for raising such concerns, and to reassure such officers, directors, employees, or volunteers that they will be protected from reprisal or victimization as a consequence of reporting the alleged wrongdoing of any officer, director, employee, or volunteer of CARNM.

Statement of Policy No officer, director, employee, or volunteer of CARNM shall take any harmful action with the intent to retaliate against any person, including interference with employment of livelihood, by providing any truthful information relating to the commission or possible commission of any offense. Nor will any officer, director, employee, or volunteer of CARNM take any harmful action with intent to retaliate against any person for reporting to the Executive Director or the President the suspected misuse, misallocation, or theft of any CARNM resources.

Safeguards Harassment or Victimization – CARNM will not tolerate the harassment or victimization of any officer, director, employee, or volunteer who raises concerns under this policy. Confidentiality – CARNM will make every effort to treat a complainant’s identity with an appropriate regard for confidentiality with the understanding that the details of complaints may need to be shared with others in order to investigate such complaints properly. Anonymous Allegations – Because a thorough investigation often depends on an ability to gather additional information, CARNM encourages complainants to put their names to allegations of wrongdoing. CARNM will explore anonymous allegations to the extent possible but may weigh the prudence of continuing such investigations against the likelihood of confirming the alleged facts or circumstances from the attributable sources. Bad Faith Allegations – Allegations made in bad faith may result in disciplinary action.

Procedure

Process for Raising a Concern: Reporting – CARNM intends this policy to be used for serious and sensitive issues. Such concerns, including those relating to financial reporting and/or unethical or illegal conduct, may be reported directly to the Executive Director. If an individual’s concern rises to the level that he or she reasonably believes that notice to the Executive Director will be disregarded or otherwise not fairly considered or directly implicates the Executive Director, the individual may then report violations or suspected violations to the President or, if necessary, an Officer or Director of the Board. In that event, the President or the Board of Directors shall be designated to handle the report or concern and can delegate authority, if needed, to conduct necessary investigations. Employment-related concerns should continue to be reported through supervisors and human resources.


December 2018

Timing – The earlier a concern is expressed, the easier it is to act. Evidence – Although a complainant is not expected to prove the truth of an allegation, he or she should be able to demonstrate that he or she has made a report in good faith.

How the Report of Concern Will Be Handled: Initial Inquiries – The Executive Director, President, or Board of Directors will make initial inquiries in consultation with legal counsel, if necessary, to determine whether further investigation is necessary or appropriate. Further Information – The Executive Director, President, or Board of Directors may seek further information from any officer, director, employee, or volunteer of CARNM, and shall act in accordance with the confidentiality provision of this policy while doing so. Reporting – The Board of Directors shall receive information on each complaint as referenced in the first paragraph. In consultation with the Executive Director and, if necessary, legal counsel, the Board of Directors will determine an appropriate response to a report of concern. Officers, directors, employees, and volunteers of CARNM who may be implicated in such reports shall not participate in any deliberation of the Board of Directors related to the complaint, except to present information directly to the Board on his own behalf.


December 2018

Succession Planning

Philosophy The Executive Director (ED) position is a central element in CARNM’s success; therefore, insuring that the responsibilities of the ED are well understood and even shared among staff and volunteer leaders is important for safeguarding the organization against unplanned and unexpected change. This kind of risk management is equally helpful in facilitating a smooth leadership transition when it is predictable and planned.

Purpose This policy outlines an emergency succession plan for CARNM. This plan reflects CARNM's commitment to sustaining a healthy functioning organization. The purpose of this plan is to ensure that the organization's leadership has adequate information and a strategy to effectively manage CARNM in the event the ED is unable to fulfill his duties.

Plan Implementation The CARNM Board authorizes the Board President to implement the terms of this emergency succession plan in the event of a planned or unplanned temporary or short-term absence of the ED. The following assumptions exist:

1. It is the responsibility of the ED to inform the CARNM Board of a planned temporary or short-term absence, and to plan accordingly.

2. As soon as feasible, following notification of an unplanned temporary or short-term absence, the Board President shall convene an Executive Committee meeting.

Assignment of Priority Functions of the ED Please refer to the full ED position description and the Executive Assistant position description; however, the following ED key functions are considered for the corresponding temporary management strategy outlined in Table 1.

Table 1. Temporary Management Strategy Key ED Functions Designated Board Member and/or Staff Leadership and Vision Board President Board Administration and Support Designated Board Member with Board Secretary Financial Management Board Treasurer Communications and Public Relations CARNM Governance Committee Education Oversight Education Chair CCIM Oversight CCIM President The assigned positions in the Temporary Management Strategy are based on CARNM’s organizational structure as of October 2012. In the event this plan’s positions are vacant or no longer available, the Board President shall select alternative support for each of the key ED functions.


December 2018

Succession Plan in the Event of a Short-Term, Temporary, Planned or Unplanned Absence

Definitions

1. A temporary absence is one in which it is expected that the ED will return once the events precipitating the absence are resolved.

2. An unplanned absence is one that arises unexpectedly, in contrast to a planned absence such as

vacation or a sabbatical.

3. A temporary short-term absence is between 30 and 90 days.

Temporary Management Strategy For a temporary planned or unplanned short-term absence, the Temporary Management Strategy described will be used and the Executive Committee shall determine if the Temporary Management Strategy is sufficient for the requested or expected time period.

Appointing an Acting ED Based on the anticipated duration of the absence, the anticipated return date, and the accessibility of the current ED, the Executive Committee may appoint an “Acting ED” or an “Executive Transition Team” (ETT) as well as continue to implement the Temporary Management Strategy.

Considerations for Appointees to the Position of Acting ED

1. The first position in line to be Acting ED is the current Board President. If the current Board President accepts the position, he will take a temporary leave from the CARNM Board.

2. The second position in line is a previous Board president, a current Board officer or a former ED.

3. The third position in line is a current staff member. In the event the available staff is new to CARNM or too inexperienced for the temporary management appointment, the Executive Committee may consider another appointee or the option of splitting executive duties among designated appointees to the ETT.

Notes:

• Some retired Association Executives (AEs) from other associations are available to act as Interim AEs. NAR’s Human Resources Department (312/329-8311) may be able to provide direction to potential candidates. NAR’s HR Department offers assistance in job searching, salaries and advertising. Services are free or at low cost.

• Set a deadline. Sometimes a successful interim ED can lessen the immediacy to identify a permanent replacement. But in all fairness, the issue of permanency should be resolved as quickly as possible.


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Authority and Restrictions of the Acting ED or ETT shall be:

1. Have full authority for day-to-day decision making and independent action as the regular ED.

2. Make decisions in consultation with the Board President and/or Executive Committee which include staff hiring and terminations, financial issues, legal issues, taking on a new project, and taking public policy positions on behalf of the organization.

3. The Acting ED or ETT will follow the CARNM Communications Policy. (See Guidelines for

Announcements to CARNM Members in this Policy Manual or Broadcast Email Rules of the Commercial Information Exchange Rules and Regulations)

Compensation

1. An end of year bonus or additional benefit may be awarded to staff appointed as the Acting ED or appointed to serve on the ETT. This shall be determined by the Executive Committee based on the duration of the assignment and available resources.

2. If staff serves as Acting ED for 6 months or more, the Executive Committee may consider a

temporary salary adjustment.

3. The individual appointed as Acting ED may enter into a written agreement, depending on whether they accept a temporary management appointment, with the CARNM Board.

4. The ED on a short-term or long-term leave is eligible for disability insurance and health care

benefits, consistent with CARNM’s employment policies.

Board Oversight and Support to the Acting ED or ETT

1. The Acting ED or ETT reports to the Board President. In the event the Board President becomes the Acting ED, the President-Elect shall be appointed as the Board President during the time of the Temporary Management Strategy is in place.

2. The Executive Committee shall be alert to the special support needs of the Acting ED or ETT in this

temporary role; therefore, the Executive Committee shall convene monthly when an Acting ED or ETT is appointed.

Communications Plan for Announcing the ED Transition Plan Within 48 hours after an Acting ED or ETT is appointed, the Board President and the Acting ED or ETT shall meet to develop a communications plan including the kind of information that will be shared and with whom. As soon as possible, the Board President and Acting ED or ETT shall implement the communications plan to announce the organization’s temporary leadership structure to staff, the CARNM Board, and other key organizational stakeholders. Within 5 to 10 business days, of the Temporary Management Strategy taking place, the CARNM Board shall distribute a press release announcing general information appropriate to the situation, regarding the departure (short-term or permanent) of the ED.

Succession Plan in the Event of a Temporary, Long-term Unplanned Absence Definition.


December 2018

A long-term absence is 90 days or more.

Procedures Procedures and conditions to be followed shall be the same as for a temporary short- term absence with the following addition: The Executive Committee shall give immediate consideration, in consultation with the Acting ED or ETT, to temporarily filling the management position left vacant by the Acting ED, or reassigning priority responsibilities where help is needed to other staff. This is in recognition that, for a term of 90 days or more, it may not be reasonable to expect the Acting ED to carry the duties of both positions. The Board President and Executive Committee are responsible for gathering input from staff and reviewing the performance of the Acting ED. A review shall be completed between 30 and 45 days.

Succession Plan in the Event of a Permanent Unplanned Absence

Definitions: A permanent absence is one in which it is firmly determined that the ED will not be returning to the position. If the permanent absence is a permanent planned absence and a notice of at least one year is given to the Board, the current ED may assist with the transition and succession of a new ED. A permanent unplanned absence is due to any sudden unforeseen events.

Procedures Procedures and conditions to be followed shall be the same as for a temporary short- term or long-term absence with the following additions:

1. The CARNM Board shall consider the need to hire an Interim ED from outside the organization instead of appointing an Acting ED. This decision shall be guided, in part, by internal candidates for the ED position, the expected time frame for hiring a permanent ED, and the management needs of the organization at the time of the transition.

2. The CARNM Board shall appoint an ED Succession Committee to implement this ED transition and

succession policy, to transition to a new permanent ED.

Hiring an Interim ED If an Interim ED is hired, the Board President and Executive Committee shall negotiate an agreement with defined responsibilities. The scope of the agreement with an Interim ED shall be determined based on an assessment of the organization's needs at the time of the ED leadership transition. The rate of

compensation may be based on guidelines published by the National Association of REALTORS or other reputable publication.

Responsibilities of the Interim ED An Interim ED shall have full authority for day-to-day decision making and independent action as the regular ED. Decisions that shall be made in consultation with the Board President and/or Executive Committee include: staff hiring and terminations, financial issues, taking on a new project, and taking policy positions on behalf of the organization. For additional communication guidelines refer to the Guidelines for Announcements to CARNM Members in this Policy Manual or Broadcast Email Rules of the Commercial Information Exchange Rules and Regulations.

Board Oversight and Support to the ED or ETT

1. The Interim ED reports to the Executive Committee.


December 2018

2. The Executive Committee shall be alert to the special support needs of the Interim ED in this temporary role.

3. The Executive Committee shall convene monthly when an Interim ED is hired.

4. The Board President and Executive Committee are responsible for gathering input from staff and

reviewing the performance of the Interim ED or ETT.

5. An initial Interim ED review shall be completed between 30 and 45 days and 90 days thereafter.

Approvals and Maintenance of Records of the Plan ED Transition and Succession Plan Approval. This ED transition and succession plan shall be approved initially by the CARNM Board. Thereafter, annually, the Executive Committee shall review the plan and recommend amendments to the full Board as needed. Maintenance or Record Copies of this plan shall be maintained by all members of the CARNM Board, the current ED and the organization's auditing firm in accordance with document retention requirements. Financial Considerations It shall be the responsibility of the Executive and Finance Committees to review the organization's finances during an unplanned absence of the ED. In the case of enactment of a temporary short-term or long-term leave of absence, these Committees may authorize access to some of these funds for implementation of this ED transition and succession plan.