State Panel Short of Investigators
Washington Post Saturday, April 24, 2004

A Backlog of Complaints in Md.

By Sandra Fleishman
Washington Post Staff Writer

The Maryland Real Estate Commission this week again asked state officials for more money and staff, saying it has access to only one full-time state investigator to process a rising number of complaints in a fast growing industry.

That single investigator is shared with about two dozen other state boards and commissions. Real Estate Commission Chairman Steven VanGrack said at a meeting in Baltimore Wednesday.

The state employees assigned to the independent regulatory commission are straining to address a backlog in complaints about agents and to process new licenses because of a statewide hiring freezing and downsizing, commission members and staff said. Among the several administrative jobs to be filled is one for an auditor.

The timing couldn’t be worse, VanGrack said, because the numbers of both new licensees and real estate transactions have mushroomed. The board oversees almost 42,000 licensees, up from about 30,000 five years ago.

In that same five years, the number of investigators has fallen from five to one. A second full time investigator’s job has been vacant since December and the commission is advertising for applicants, said Elizabeth A. Beggs, the executive director.

The commission shares investigative staff with other professional supervisory boards, including those for architects, barbers, cosmetologists, plumbers and master electricians. The real estate industry ranks second to cosmetology in the number of licensees in Maryland.

Beggs said her administrative staff is stretched to keep up with the pace because of the hiring freeze and vacancies that have occurred. “There are only five people and me” to handle license applications, license renewals and other paperwork, telephone calls and the initial review of complaints to see if they merit investigations. Beggs told the commission “I could probably complain for three hours, but I’m not going to.”

The commission has 12 authorized positions.

“My staff is overwhelmed and overworked” Beggs told the commission. “The system is log-jammed and backlogged” for new licensees, she said. “We doing everything we can not to come to a screeching halt.”

“It’s pretty clear we have a problem.” VanGrack said.

Beggs said later that she could not say exactly how long it takes to get complaints through the process, but that it’s obviously taking longer with only one investigator.

About 340 complaints have been filled since last July, but the investigator is still making his way thru older cases. From July 2002 to July 2003, the commission received 388 complaints.

Beggs said the investigator has 40 cases assigned to him. Sixty-seven cases are waiting for his attention, but she isn’t sending them to him because he is so backed up.

Beggs explained that the investigator must not only investigate, but testify at hearings if the commission agrees with him that there is a need to pursue complaints further.

“He’s spending a lot of time in a court room somewhere”. Beggs said in an interview. “And he could be in Montgomery County today and in Charles County tomorrow or in Western Maryland.”

The commission has 140 cases awaiting initial staff review.

While the commission is taking some in-house steps to help reduce the backlog such as asking the state attorney general’s office to encourage pre-hearing settlements, VanGrack said “We must go back to our old call. This commission needs more money to operate.

Virginia has 15 investigators assigned to 18 regulatory boards. Its Real Estate Board regulates about 60,000 individuals and businesses. The District has one full-time investigator and a part time investigator for 7,800 licensees.

The Maryland commission pressed unsuccessfully during the recent state legislative session for a bill that would have made it self sufficient and allowed it to set its own fees. Fees have not been raised in 15 years.

The measure, which the Maryland Association of Realtors supported, passed the state Senate but not the House. The commission has failed in the past to get similar legislation.

Elizabeth L. Williams, spokes-woman for the state Department of Labor, Licensing and Regulations, the real estate commission’s parent agency, said in an interview that while the commission says it has only one investigator, it can also assign cases to a second person whose primary responsibility is to investigate complaints east of the Chesapeake Bay for the state Home Improvement Commission.

“This is a problem we are trying to address,” Williams said.

“We know it’s extremely frustrating” for those who has filed complaints and are waiting for resolution, she said,” But they haven’t been forgotten.”

Beggs also expressed concern for those calling with complaints, which are being told they have months to wait. “If you look at the numbers” of complaints piling up, you have to say am I harming the consumer?” If someone has been waiting nine months for an answer, I am apologetic,” she said at the commission meeting. “You can’t be insensitive to their needs."

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