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NEBRASKA REAL ESTATE COMMISSION February 22, 2001DoubleTree Hotel Downtown Dodge/Capitol Room 1616 Dodge St, Omaha, NE Opening Chairperson Gale convened a Meeting of the Nebraska Real Estate Commission at 9:10 a.m. on February 22, 2001, in the Dodge/Capitol Room of the DoubleTree Hotel, located at 1616 Dodge Street in Omaha, Nebraska. The published public notice had indicated the meeting would be held in the Iowa Room, so notice was posted at the Iowa Room indicating that the hotel staff moved the meeting to the Dodge/Capitol Room. All of the members of the Real Estate Commission were present. Also present were Director Les Tyrrell, Deputy Director Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund. Notice of Meeting (Adopt Agenda) Director Tyrrell presented a Public Notice and Proofs of Publication thereof relating to this Meeting, all of which are attached to and made a part of these Minutes. Chairperson Gale reported that all Commissioners had been notified of the Meeting simultaneously, in writing, and that a proposed Tentative Agenda accompanied the notification. Chairperson Gale pointed out to those in attendance that a APublic Copy@ of the materials being used during the Meeting was available to the public on the Counsel table in the Meeting Room, and that the procedures followed were in accordance with the Open Meetings Law. Chairperson Gale asked that guests sign the guest list.Director Tyrrell noted that no items had been added since the Tentative Agenda was mailed to the Commissioners. After review of the Final Agenda, a motion was made by Fletcher and seconded by Wiebusch to adopt the Final Agenda as presented. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Minutes of January 23, 2001 The Minutes of the Commission Meeting held on January 23, 2001, were considered. After review, a motion was made by Nigro and seconded by Moline to approve the Minutes as presented. Commissioner Moline then proposed a change on page 8, in the second paragraph from the bottom, to read, AWhen he contacted the attorney....@ There were no objections. A friendly amendment was made to the motion, to approve the Minutes as corrected. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye.Receipts and Expenditures Reports for January Director Tyrrell presented the Receipts and Expenditures Report for January 2001. A copy of said Report is attached to and made a part of these Minutes. With regard to the January Report, Director Tyrrell noted the following: There was nothing unusual to report in Receipts, which are down approximately $4000.00 for the month from the budgeted amount, but are on track with the year-to-date figures. Expenditure Category 4145, Unemployment Compensation, reflected the final payment to the former employee who was let go before the probation period ended; and Category 4211, Postage Expense, was ok for year-to-date expenditures, but was $4000.00 over budget for the month due to mailing the Commission Comment, the Trust Account Manual update, and pocket cards and other renewal letters. The Cash Fund Balance as of January 31, 2001, was $672,285.45, which compared to a Cash Fund Balance of $607,965.65 on January 31, 2000. After discussion, a motion was made by Fletcher and seconded by Wiebusch to file the January Receipts and Expenditures Report for audit. Chairperson Gale asked why there was such a difference between the budgeted amount and the actual year-to-date receipts in Category 7522, Promotional Land Registrations. Director Tyrrell said that there was an unusually high number of registrations this year, and explained the time share registration process. Chairperson Gale also asked about Category 8111, Investment Interest. Director Tyrrell said that the budget projections were always conservative, and we must be getting good interest rates this year. The Commission does not control the investments, as all state investments are handled by the State Treasurer. Chairperson Gale then asked about Category 4451, Legal Services Expense. Director Tyrrell explained that all legal expenses used to be grouped under Category 4411, but last fiscal year the Department of Administrative Services decided to create a new category for billable hours, to track contracted services expenses. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Renewal Report Director Tyrrell presented a Renewal Report, which showed renewals as of February 20, 2001. A copy of said Report is attached to and made a part of these Minutes. Director Tyrrell noted that this will be the last renewal report until after June 30, which is the latest date licensees can renew for 2001. Renewals were up 2% over last year, with a total of approximately 40 more licenses than last year. The renewal process went very well this year. No action was necessary on this Report. Projected Cash Fund Balance through September 2001 Director Tyrrell presented a Projected Cash Fund Balance Report through September 2001. A copy of said Report is attached to and made a part of these Minutes. Director Tyrrell noted that the report indicated the Commission would be in line with its goal of having a cushion of 3-6 months= worth of expenses in the cash fund at the end of this fiscal year. No action was necessary on this Report. Specialized Registrations There were no Specialized Registrations to report. Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other States This Report, a copy of which is attached to and made a part of these Minutes, was presented by Deputy Director Hoffman and reported to be in order. After review, a motion was made by Moline and seconded by Nigro to ratify issuance of the licenses as set forth in the Report. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Examination Report - January Deputy Director Hoffman presented a Report relating to the real estate examinations administered during January 2001. A copy of said Report is attached to and made a part of these Minutes. After review, a motion was made by Moline and seconded by Fletcher to ratify the January Report for the purpose of issuing licenses. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Real Estate Education Matters Pre-License Education Instructor Approval Deputy Director Hoffman presented for ratification the Pre-License Instructor Approval Report, which listed approval for one pre-license instructor. A copy of said Report is attached to and made a part of these Minutes. After discussion, a motion was made by Fletcher and seconded by Wiebusch to ratify the Report. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Continuing Education Activity Approval Deputy Director Hoffman presented for ratification the Continuing Education Activity Approval Report, which listed approvals for two continuing education activities. A copy of said Report is attached to and made a part of these Minutes. After discussion, a motion was made by Moline and seconded by Wiebusch to ratify the Report. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Continuing Education Instructor Approval Deputy Director Hoffman presented for ratification the Continuing Education Instructor Approval Report, which listed approval for one continuing education instructor. A copy of said Report is attached to and made a part of these Minutes. After discussion, a motion was made by Wiebusch and seconded by Nigro to ratify the Report. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Pending Sworn Complaints and Investigative Matters Director Tyrrell presented a Summary Report of the pending complaints, which included a list of licensees presently under disciplinary action or on appeal. A copy of said Report is attached to and made a part of these Minutes. Director Tyrrell noted that there was a larger number of Complaints filed so far this year than was normal. No action was necessary on this Report. The following Sworn Complaints and Investigative Matters were presented to the Commission: Complaint #2000-044 - Dale Abel vs. Jerome Henry Haase Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter. After being advised of the results of the investigation and discussion, a motion was made by Landow and seconded by Moline that the Complaint be dismissed. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Item B Complaint #2000-043 - Dale Abel vs. Donald Payson Harrington, Jr. Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter. After being advised of the results of the investigation and discussion, a motion was made by Johnson and seconded by Wiebusch that the Complaint be dismissed.
After Investigative Matters were concluded, Commissioner Wiebusch asked whether Trust Account Examiners look for written authorization when another agent substitutes for a limited seller=s agent who may be out of town. Commissioner Fletcher noted that the Nebraska Realtors Association provides a form for the broker to designate a licensee to temporarily act as a limited seller=s agent, and some forms just say Aor any other agent the broker chooses to appoint.@ Commissioner Wiebusch asked whether the Commission needed to address this situation. Deputy Director Mayrose said that the licensee=s name does not come into play as much as the buyer and seller names when looking at a transaction, and may only appear on the agency brochure. Director Tyrrell noted that there was no requirement in the law that substituting agents need to be designated in writing, even though the Association form has a blank for it. Commissioner Moline noted that the Lincoln Board form also has a blank for it, and that completing the form would mean that affiliated licensees would have to notify the broker in advance when they would be gone, and who would be covering their listings. Director Tyrrell said that, even though it was not required to have it in writing, brokers could cover themselves by getting it in writing. Commissioner Wiebusch asked if a Commission Comment article might be appropriate. Chairperson Gale noted that there is a lot of confusion regarding agency, and that anything in writing protects you better than a verbal agreement. Commissioner Moline asked how many complaints the Commission had received regarding similar situations. Director Tyrrell said that he did not think any had been received regarding non-written designation. When licensees call staff for clarification, they are told to make sure that the seller understands the situation and if, in the case of an open house, the substitute is a buyer=s agent, and that the seller agrees to that situation. Commissioner Fletcher noted that is specified in the Nebraska Realtors Association agreement form. Presentation of Stipulation and Consent Orders There were no Stipulation and Consent Orders scheduled for this Meeting. Hearings There were no Hearings scheduled for this Meeting. Informal Special Appearances There were no Informal Special Appearances scheduled for this Meeting. Approve Examination Fee Increase Deputy Director Hoffman presented an Exhibit entitled AExamination Fee Increase Proposal,@ which would be effective on examinations administered on or after July 1, 2001. A copy of said Exhibit is attached to and made a part of these Minutes. Deputy Director Hoffman noted that the first sentence of the last paragraph of the Exhibit should be changed to read, Aincrease to $115.00 per examination effective for each examination administered on and after July 1, 2001.@ After discussion, a motion was made by Fletcher and seconded by Johnson to approve the examination fee increase as outlined in the amended Exhibit. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Retirement Resolution for Robert E. Arterburn Director Tyrrell presented an Exhibit which consisted of a Resolution in honor of Robert E. Arterburn =s retirement. A copy of said Exhibit is attached to and made a part of these Minutes. Director Tyrrell also pointed out the invitation to Mr. Arterburn=s retirement party, which was included in the Commissioners= Meeting folders.After discussion, a motion was made by Moline and seconded by Fletcher to adopt the Resolution. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Legislative Matters Director Tyrrell reviewed the status of various Legislative Bills of interest to the Commission. Director Tyrrell noted that the Banking, Commerce, and Insurance Committee had incorporated some of the other bills = provisions into LB 215.No action was necessary on this Report. Information Matters Deputy Director Hoffman Letter regarding President-Elect Deputy Director Hoffman presented an Exhibit regarding her candidacy for President-Elect of ARELLO. A copy of said Exhibit is attached to and made a part of these Minutes. Director Tyrrell noted that staff proposed it be mailed to each member of ARELLO, so that it is disseminated to the entire membership. After discussion, a motion was made by Moline and seconded by Wiebusch to have the Commissioners sign the letter, and that it be sent to all ARELLO members. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being temporarily absent and excused. ARELLO Board of Directors and Committee Meetings - April 4-7, 2001 Director Tyrrell reported that the ARELLO Board of Directors and Committee Meetings will be held April 4-7, 2001. Completed registration forms should be given to Ms. Burklund after the Meeting. No action was necessary on this Report. Trust Account Examination Evaluations - Fourth Quarter 2000 Director Tyrrell presented the Trust Account Examination Evaluation - Fourth Quarter 2000 Report. A copy of said Report is attached to and made a part of these Minutes. Director Tyrrell reported that comments were again very positive. He reviewed some of the comments received, and how the situations were handled. Most of the comments regarding advance appointments came from the region near Sioux City, Iowa. Apparently the Iowa Commission makes appointments for examinations, which are conducted approximately every 3-4 years. Director Tyrrell noted an error on #8, in the last line of comments, which should refer to Apre-made brochures.@ Examiners have those available during examinations.Commissioner Landow noted that the evaluations are continually outstanding, and are a testament to how well staff do their jobs. The other Commissioners concurred. Commissioner Nigro noted that, during a recent examination, her firm was told that preprinted markings on agency brochures should not be changed. Director Tyrrell said they should not have been told that, because the brochures should be completed accurately for each situation, and that more disclosure was better than less. Director Tyrrell said he would address the misunderstanding with the appropriate Examiner. Director Tyrrell also asked the Commissioners and audience members to spread the word that if, during an examination or exit interview, the Examiner says something that does not seem right, to please call the office and ask for clarification. This would straighten out any misunderstandings immediately, and educate the Examiner and the broker at the same time. Commissioner Gale asked how often examinations are conducted. Director Tyrrell said the usual schedule is every 12-14 months, and that it was Commission policy that examinations be unannounced. No action was necessary on this Report. Errors and Omissions Insurance Loss Report - Fourth Quarter 2000 Director Tyrrell presented the Errors and Omissions Insurance Loss Report through December 31, 2000. A copy of said Report is attached to and made a part of these Minutes. Director Tyrrell noted that there was nothing unusual in the Report. Director Tyrrell also reported that the RFP had been mailed on schedule, and that the Budget and Planning Subcommittee was scheduled to meet on March 26 to review the proposals and make their recommendation to the Commission on March 27. Director Tyrrell has answered several questions regarding the RFP. No action was necessary on this Report. Future Meeting Dates March 27-28, 2001 - Staybridge Suites, Lincoln April 24-25, 2001 - TBA May 22-23, 2001 - Staybridge Suites, Lincoln Director Tyrrell asked the Commissioners to bring their calendars to next month =s Meeting, so that Meetings could be scheduled through September. If the current schedule holds, there will probably not be a July Meeting. A regular Hearing and the Show-Cause Hearing set today may be scheduled for the March Meeting.Recesses and Adjournment At 9:35 a.m. on February 22, Chairperson Gale declared a brief recess, and reconvened the Meeting at 9:45 a.m. At 11:00 a.m. on February 22, Chairperson Gale was temporarily excused from the Meeting, and Acting Chairperson Fletcher chaired the Meeting. Chairperson Gale rejoined the Meeting at 11:04 a.m. At 11:05 a.m. on February 22, Commissioner Johnson was temporarily excused from the Meeting, and rejoined the Meeting at 11:08 a.m. At 11:10 a.m. on February 22, Commissioner Landow was temporarily excused from the Meeting, and rejoined the Meeting at 11:12 a.m. At 11:20 a.m. on February 22, there being no further business to come before the Commission, a motion was made by Moline and seconded by Nigro that the Meeting adjourn. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing Minutes of the February 22, 2001 Meeting of the Nebraska Real Estate Commission were available for inspection on February 26, 2001, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska. Respectfully submitted, Guests Signing the Guest List Perre Neilan, Nebraska Realtors Association, Lincoln Harding Collis, NP Dodge Company, Omaha Beth Lube, ReMax Real Estate Group, Omaha |