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NEBRASKA REAL ESTATE COMMISSION March 27, 2001Staybridge Suites Staybridge Room Lincoln, NE
Opening Chairperson Gale convened a Meeting of the Nebraska Real Estate Commission at 9:05 a.m. on March 27, 2001, in the Staybridge Room of the Staybridge Suites, located at 2701 Fletcher Avenue in Lincoln, Nebraska. 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. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, was present for an investigative matter. 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 Items 5a, 8g, and 16a had been added since the Tentative Agenda was mailed to the Commissioners, and Item 12a had been continued at the request of the potential applicant. After review of the Final Agenda, a motion was made by Johnson and seconded by Fletcher to adopt the Final Agenda as presented. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Minutes of February 22, 2001 The Minutes of the Commission Meeting held on February 22, 2001, were considered. After review, a motion was made by Moline and seconded by Nigro to approve the Minutes as presented. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Receipts and Expenditures Reports for February Director Tyrrell presented the Receipts and Expenditures Report for February 2001. A copy of said Report is attached to and made a part of these Minutes. With regard to the February Report, Director Tyrrell noted that there was nothing unusual to report. Receipts were down approximately $5000 for the month, but were still up by approximately $55,000 for the year. In Expenditure Category 4841, Office Equipment, $1350 was spent to replace a printer. The Cash Fund Balance as of February 28, 2001, was $639,735.92, which compared to a Cash Fund Balance of $582,314.62 on February 29, 2000. After discussion, a motion was made by Fletcher and seconded by Moline to file the February Receipts and Expenditures Report for audit. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Specialized Registrations Director Tyrrell presented the Specialized Registrations Report, which listed one Time Share Registration for Fairfield Daytona Beach at Ocean Walk. A copy of said Report is attached to and made a part of these Minutes. Following discussion, a motion was made by Wiebusch and seconded by Nigro to approve the Fairfield Daytona Beach at Ocean Walk registration as presented. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Director Tyrrell noted that Fairfield Communities had been at least partially purchased by Cendant. Staff are reviewing their amended filings, which have all been in order to date. 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 Wiebusch 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 - February Deputy Director Hoffman presented a Report relating to the real estate examinations administered during February 2001. A copy of said Report is attached to and made a part of these Minutes. After review, a motion was made by Fletcher and seconded by Wiebusch to ratify the February 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 Education Instructor Approval Report, which listed approvals for one pre-license education instructor. 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 Nigro 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 eleven continuing education activities. A copy of said Report is attached to and made a part of these Minutes. Deputy Director Hoffman provided some background information on the Real Estate Brokerage Managers Council (REBMC) courses. REBMC had courses approved at one time, then they withdrew and revised their courses. Nineteen revised courses were submitted in 1992 and taken to the Commission, which rejected the courses because it considered them to be generic business courses. REBMC has now revised their courses again, and has submitted four 3-day courses for approval. The two listed in the Report were again in line with Nebraska real estate education goals, but the other two were marketing courses, which have consistently been unapprovable subject matter. Chairperson Gale asked if there were statutory requirements for continuing education subject matter. Deputy Director Hoffman said that the standard was specified in statute, and that it must be consumer oriented. In regard to the two courses on marketing, Commissioner Moline asked if there were 3 hours out of the 3 days that would be approvable subject matter. Deputy Director Hoffman said she had reviewed the courses with that in mind, and did not find three hours of traditionally approvable subject matter. Chairperson Gale asked if the courses could still be offered. Deputy Director Hoffman said yes, just not for continuing education credit. Deputy Director Hoffman noted that the courses could continue to be applied toward the organization =s designation program.Commissioner Landow noted that learning how to run a business was valuable education, but that it did not serve the Commission =s goals for real estate continuing education. Commissioner Landow agreed with the past practice of not approving marketing courses, and supported Deputy Director Hoffman=s assessment of the courses. Commissioner Nigro said that any course on self-promotion should not be approvable for continuing education, and approving one would open a Pandora=s box for every marketing class.Chairperson Gale asked if there were requirements regarding minimum course offerings. Deputy Director Hoffman said providers are not required to offer courses a certain number of times, or at all, they just were approved to offer them if they chose to do so. Deputy Director Hoffman noted that the organization had chapters across the country. Chairperson Gale noted that most provider addresses listed were in Lincoln and Omaha, and asked if a balance should be sought for other areas of the state. Deputy Director Hoffman said that the addresses on the report were the location of the provider, but that the course could be offered anywhere in Nebraska. Commissioner Landow noted that distance education was becoming a hot commodity, because it works so well for people with limited access, and asked if it was the wave of the future. Deputy Director Hoffman said it was definitely growing, and that quality was assured by ARELLO certification. 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 approvals for seventeen continuing education instructors. A copy of said Report is attached to and made a part of these Minutes. Commissioner Nigro noted the length of the list, and asked if more people were getting into continuing education, or if more courses were being approved. Deputy Director Hoffman said that, on this Report, most were multiple instructors for national courses, with a few new instructors for existing courses. Chairperson Gale asked if instructors had to be brokers. Deputy Director Hoffman said it depended on the subject matter, the person =s work experience, and their formal education.After discussion, a motion was made by Moline and seconded by Nigro to ratify the Report. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Annual Report Deputy Director Hoffman presented for ratification the 2000 Annual Report. A copy of said Report is attached to and made a part of these Minutes. Deputy Director Hoffman noted that the report was a summary of activity for the previous year, and was also an opportunity to check provider records with our records. Deputy Director Hoffman noted that one provider was withdrawing all courses during its reorganization, and one did not respond at all. Providers can reapply at any time. Deputy Director Hoffman also noted that BF Real Estate Center would not be offering education in Nebraska any more. She attended the course in Omaha, and what was provided was a significant departure from the course outline. The course was improperly administered, there was no evaluation by students, and course completion certificates were handed out with pertinent information left blank. The provider was told what his options were, and he decided to withdraw the course without a hearing. Deputy Director Hoffman noted that the irregularities were not the fault of the attendees, and that she would like to give continuing education credit to those in attendance at this single offering. Deputy Director Hoffman noted that completion certificates will be checked against the attendance lists. Commissioner Nigro asked if the Commission would have known about the problems, if the course was not given across the hall from the Commission Meeting. Deputy Director Hoffman said she thought so, because she got several calls from concerned attendees. Commissioner Nigro asked if the course was free. Deputy Director Hoffman said yes, and that the provider advertised other services during the course. Chairperson Gale asked if staff could administratively pull the provider =s approval. Deputy Director Hoffman said the provider would have been entitled to a hearing, but they voluntarily withdrew the course.Chairperson Gale asked about the Institute of Real Estate Management =s (IREM) failure to respond. Deputy Director Hoffman reported that staff had made multiple attempts to contact the national office of IREM. She speculated that they might be reorganizing and/or restaffing. Deputy Director Hoffman indicated that the national office of IREM should cease to be recognized as an approved provider of continuing education in Nebraska. IREM could reapply at any time.After discussion, a motion was made by Moline and seconded by Fletcher to ratify the Report. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Continuing Education Activity Renewal Report Deputy Director Hoffman presented for ratification the 2001 Continuing Education Activity Renewal Report. A copy of said Report is attached to and made a part of these Minutes. Deputy Director Hoffman noted that this report is presented once per year, based on a three-year activity approval cycle. Many of the continuing education activities were renewed for three years, and some providers decided against renewing certain activities. After discussion, a motion was made by Nigro and seconded by Moline to ratify the Report for renewal. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Consider Instructor Development Workshop Deputy Director Hoffman presented an Exhibit entitled AProposal for Instructor Development Workshop.@ A copy of said Exhibit is attached to and made a part of these Minutes.Deputy Director Hoffman gave a history on Instructor Workshops: two years ago, the topic was the ARELLO Distance Education Certification program, at no cost to the attendees (Craig Larabee donated use of the meeting room); four years ago, a workshop was given on Fair Housing and teaching ethical decision-making (the meeting room was donated by Randall School of Real Estate); six years ago, a workshop on teaching adults was given at Southeast Community College. Deputy Director Hoffman conducted an interest survey this year, and the consensus seemed to favor a one-day program on how to teach adults and maintain their interest. There was a 50/50 split between Omaha and Lincoln for a location preference. Instructors from across the state were interested in attending. Deputy Director Hoffman noted that the Commission had budgeted for the workshop and had the money available, and that the Budget and Finance Subcommittee had reviewed the proposal and agreed that this project fit within the budget. Craig Larabee was once again offering his facility at no charge. Deputy Director Hoffman proposed that the Commission cover the workshop costs, and not charge a registration fee. Commissioner Landow asked if the Commission should make the instructor development workshop mandatory in the future. He felt this would be continuing education for the instructors of continuing education, and since continuing education is mandatory for licensees, the Commission should consider requiring continuing education for instructors as well. Commissioner Landow said it was well worth the time to learn to be a better teacher. Deputy Director Hoffman said that idea had been discussed in the past. She suggested that the Commission may want to survey school owners and instructors about the potential impact before making a determination. In Nebraska, most people were teaching for teaching =s sake, rather than as a full-time career. Making instructor workshops mandatory might make it more difficult to recruit instructors. Director Tyrrell noted that a rule would be required to make it mandatory, which could be done during the ongoing rule review process.Commissioner Nigro said that instructors were usually licensees who were giving up their time to teach. Commissioner Landow noted that it was only one day every two years, and that the Commission provided the workshop at no cost to instructors. He understood that it was another day away from their jobs. Commissioner Johnson asked what the potential impact might be. Deputy Director Hoffman said it would most likely cause a drop in the number of instructors. There are approximately 200 instructors now, some of which may be inactive. Deputy Director Hoffman noted the Commission tries to drop instructors after 3 years of inactivity. She also noted that proprietary schools have been strong supporters of voluntary Instructor Workshops, and had good success in getting their active instructors to attend. Commissioner Johnson felt that the less active instructors may need the workshops even more than active instructors. Commissioner Nigro asked if the impact survey could be done as part of the workshop registration. Deputy Director Hoffman said it could. Chairperson Gale asked if continuing education was required for instructors. Deputy Director Hoffman said the Commission did not require it, but other organizations to which instructors might belong may have requirements. Commissioner Moline noted that some courses were given by instructors who instruct only once a year. He felt mandatory attendance would lower the number of instructors. Commissioner Landow said that if instructors were unwilling to invest one day in their development, they were probably not that dedicated or interested. Chairperson Gale asked how the impact survey could be done. Deputy Director Hoffman said she could include the survey with the upcoming mailing to all instructors statewide, and would report on the response at a future meeting. Commissioner Moline said he was against requiring instructor continuing education. He felt that teachers must already meet stringent requirements, and that fewer instructors would lead to increased cost and lower course availability. After discussion, a motion was made by Fletcher and seconded by Nigro to pay all expenses for the Instructor Development Workshop, and to provide the workshop at no cost to attendees. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Discussion of Ethics Training Session Deputy Director Hoffman reported that she and Director Tyrrell had attended parts of the Nebraska Realtors Association Convention last week. Licensees had made comments about the AEthics Training@ session in the AAsk the Commission@ session, and several Commissioners had also received comments. Commissioner Nigro had asked that the topic be placed on the Agenda for discussion.Commissioner Landow asked what the problems were. Deputy Director Hoffman said she had not attended the course, and asked that someone who was in attendance respond to the question. Commissioner Moline said he attended the course, and had heard the most comments on the following: there was no tie-in of the material to Nebraska statute; the National Association of Realtors required four hours of attendance, but they were only getting three hours of continuing education credit; one person came late and was not given credit, while another person read a newspaper during the class and got credit; and the instructor said some practices were a Agood idea@ when they were actually required by Nebraska law. The biggest complaint he had heard was that licensees had to sit there for four hours.Commissioner Nigro said that the registration materials had stated the class began at 8:30, but that people arriving as late as 8:50 were let in; all the examples used were California law, and the instructor was unaware of Nebraska law; the course gave bad information; and new agents were thoroughly confused. The instructor did not know seller disclosure and agency law in Nebraska. The course primarily focused on agent disputes and commissions. Commissioner Fletcher asked if this was the first attempt at giving the course. Deputy Director Hoffman said no, that this instructor was approved for this course in multiple states. Commissioner Landow asked if the Commission was considering taking action, or just discussing the course. Chairperson Gale said it was just discussion at this point, and asked what would be an appropriate action. Deputy Director Hoffman noted that this was on the Meeting Agenda, and that the Commission could take action if they chose to do so, or just discuss and communicate their concerns for the Nebraska Realtors Association to take into consideration when submitting future courses. Chairperson Gale noted that the Commission had approved the instructor and course, and that the course was approved by a national group. Chairperson Gale asked if the course had deviated from the submitted materials. Deputy Director Hoffman said she did not get reports on that, just on the presentation. Director Tyrrell suggested that, if the Commission contemplated taking a negative action, they do it as an Agenda Item at the next Meeting, or if they were considering revoking approval, that it be scheduled for formal due process. Director Tyrrell noted this item was on the Meeting Agenda for a discussion of the philosophy of course approval. This situation was different than the BF Real Estate Center situation, and the Commission would want the Nebraska Realtors Association to be in attendance, and to give the instructor an opportunity to attend. Commissioner Johnson said he was not at the course, but he had asked a half-dozen people about it. They did not like spending 4 hours for 3 hours of continuing education credit, but said they felt they got something out of it. Deputy Director Hoffman said she had requested the course evaluations, as is typical procedure when any concern has been voiced. She noted that she had received one letter which stated it was a good course, with good content and presentation, and the person said they will sponsor the training at their company. Commissioner Wiebusch asked if the National Association of Realtors had requirements for instructors. Deputy Director Hoffman said she did not know what their requirements included. Apparently there was a great deal of flexibility in ethics training approval, because another provider submitted a very different course than the previously-approved course, which was also approved. Marie Spodak =s course was more traditional regarding Nebraska-approved ethical decision-making courses, and included references to the Nebraska Real Estate License Act.Commissioner Wiebusch noted that the primary concern from this Meeting and from private discussions was the instructor =s lack of knowledge of Nebraska laws. Commissioner Wiebusch asked if that concern should be relayed to the Association. Deputy Director Hoffman said that she had a discussion with Lisa Betts, who was aware of the concern regarding the quality of the instructor. Deputy Director Hoffman said the Association cared about the quality of their courses, and she believed it was common practice for them to review the evaluations and act accordingly.Chairperson Gale asked if credit would be given. Deputy Director Hoffman said yes, that people were assured it was for credit, and she preferred to look forward. Chairperson Gale suggested a motion to table the discussion until the next Meeting, after review of the evaluations, and with the Association in attendance. Commissioner Moline addressed the reference to late attendees, and noted that one person tried to sign in at the end of the attendance list, where it had been crossed through. Commissioner Fletcher said there was a notation that the person came in late. Jerry Ahlvers of the Nebraska Realtors Association said this was the first time the course was taught in Nebraska, and it was made mandatory for members. He did not understand why the course was being questioned, and did not know why a more ethical agent was not a good thing. He agreed that the instructor may not have been knowledgeable on Nebraska laws. He acknowledged there was a mixup on times, where some schedules said the course started at 9:00, and some said 8:30. The licensees who were late were not given credit for this course, but were offered another 3-hour course at no charge. Mr. Ahlvers thought it was a good course, but said they needed to make sure the instructor was knowledgeable on Nebraska laws. A motion was made by Landow and seconded by Johnson that the Commission table discussion until the next Meeting. Perre Neilan of the Nebraska Realtors Association questioned why this one course was singled out, and why the Commission was discussing every negative comment received. Mr. Neilan said the Commission could go to the extreme, discussing every negative comment on every course offered. Mr. Neilan also questioned why the discussion was not on the Tentative Agenda. Chairperson Gale clarified that the Commission was discussing concerns about the course, not necessarily preparing to take negative action. Director Tyrrell said that, as a public official, it was incumbent on him to put items on the Agenda whether they were brought to him by a member of the public, a licensee, or a Commissioner. If every course was brought to him, every course would be placed on the Agenda. Director Tyrrell also noted that the late addition to the Agenda was why he recommended any action be scheduled for a later date, so that all concerned parties could have sufficient advance notice to prepare and be in attendance. The Agenda is public information which is mailed to interested parties, updated on the website, and available to anyone who contacts the Commission office. The Commission was totally within its rights to address any Agenda Item on the adopted Agenda. A vote was taken on the pending motion. Motion carried with Fletcher, Johnson, Landow, Nigro, Wiebusch, and Gale voting aye, and with Moline voting nay. Commissioner Moline asked Deputy Director Hoffman to also request the evaluations on the Errors & Omissions Insurance session. Deputy Director Hoffman said she would. Chairperson Gale asked if Commissioner Moline wanted to discuss those evaluations at a future meeting, and Commissioner Moline said yes. 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. Commissioner Wiebusch asked what happened if a licensee does not complete the requirements of their disciplinary action. Director Tyrrell noted that Ms. Stovall did not complete 3 hours of additional continuing education in ethics by the March 18 deadline, so a Show-Cause Hearing was being scheduled for the April Meeting. Commissioner Wiebusch asked about Mr. Waldo. Director Tyrrell noted that staff send out reminder letters about halfway through the period allowed for completion, and at one month before the deadline. If Mr. Waldo =s additional continuing education is not completed by April 1, a Show-Cause Hearing will be scheduled.No action was necessary on this Report. The following Sworn Complaints and Investigative Matters were presented to the Commission:
=s responses to the Commission=s request for additional information and, when necessary, answered questions on this matter. After being advised of the results of the investigation and discussion, a motion was made by Fletcher and seconded by Moline that this matter be dismissed, and that Director Tyrrell write a letter regarding the Commission =s concerns and recommendations. Motion carried with Fletcher, Landow, Moline, Nigro, Wiebusch, and Gale voting aye, and with Johnson voting nay.Item G Investigative Matter Prior to discussion of this matter, Commissioner Moline recused himself, thereby nullifying any potential conflict of interest. Deputy Director Mayrose presented information regarding an advertisement which had been referred to the Commission. After discussion of the issues involved, a motion was made by Landow and seconded by Fletcher that staff communicate with the company, clarify the issues in question, and report back to the Commission. Motion carried with Fletcher, Johnson, Landow, Nigro, Wiebusch, and Gale voting aye, and with Moline not participating or voting, having recused himself, thereby nullifying any potential conflict of interest. Presentation of Stipulation and Consent Orders Complaint #2000-042, Michael G. & Judith K. Metz vs. Earl Jeffrey Allen Prior to discussion of this matter, Commissioner Nigro recused herself, thereby nullifying any potential conflict of interest. Deputy Director for Enforcement Mayrose presented a Stipulation and Consent Order in the matter of Complaint #2000-042, Michael G. & Judith K. Metz vs. Earl Jeffrey Allen. A copy of said Order is attached to and made a part of these Minutes. Mr. Allen was in attendance for the presentation. Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Allen. After discussion, a motion was made by Moline and seconded by Wiebusch to enter into the Order as presented. Motion carried with Fletcher, Johnson, Landow, Moline, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, having recused herself, thereby nullifying any potential conflict of interest Hearings There were no Hearings scheduled for this Meeting. Informal Special Appearances Christopher M. Payne, Potential Applicant Director Tyrrell noted that Mr. Payne had requested that his Special Appearance be continued to a later Meeting. Kenneth LaVern Tranel, Potential Applicant - Continued from January 23 Meeting At 11:00 a.m., Director Tyrrell presented an Exhibit which included correspondence regarding the Special Appearance, correspondence regarding Mr. Tranel =s criminal history, letters of recommendation, and copies of court documents. A copy of said Exhibit is attached to and made a part of these Minutes.Attorney John Doyle of Lincoln, who was representing Mr. Tranel, noted that Mr. Tranel had gotten into trouble in the past, but that he took complete responsibility for his actions, made complete restitution, and had conducted himself well since. Mr. Doyle noted that the letters of recommendations in the Exhibit came from people who had known Mr. Tranel for a long time. Mr. Tranel =s conviction resulted from a family situation, and he got in over his head. Counsel Doyle said that he and Mr. Tranel would answer any questions the Commissioners might have.Commissioner Johnson asked what Mr. Tranel =s current occupation was. Mr. Tranel said he was a mechanic at a diesel shop in Ogallala.Chairperson Gale noted the conviction resulted from a bankruptcy of the family farm business, and asked if the source of the problem was that the trustee decided there were unreported assets. Mr. Tranel said the bankruptcy went on for seven years, and when it was finally done, conspiracy charges were filed against the family members. He had a court-appointed attorney, who brokered a plea bargain. Chairperson Gale asked if all the family members had charges filed against them. Mr. Tranel said yes. Chairperson Gale noted the FBI involvement, and that apparently mortgaged cattle had disappeared and were recovered. Chairperson Gale asked if further restitution was required. Mr. Tranel said no. Chairperson Gale asked if the mortgagee recovered the security. Mr. Tranel said yes. Chairperson Gale asked what Mr. Tranel =s sentence had been. Mr. Tranel noted that his three sisters and his mother and father were charged, in addition to himself. He was sentenced to six months of work release, six months of home confinement, and three years of probation.Chairperson Gale noted that there was apparently an alcohol dependency concern, and asked if Mr. Tranel had completed required treatment. Mr. Tranel said he had completed treatment, and continued to attend AA three or four times per week. It has been three years since Mr. Tranel had a drink. Chairperson Gale asked about Mr. Tranel =s employment since the conviction. Mr. Tranel said most of his employment was at the diesel shop, and that he had also worked construction prior to that job. Chairperson Gale asked what had caused Mr. Tranel=s interest in real estate. Mr. Tranel said he started studying at night school during his work release in Hall County, and had completed all the courses. He had taken correspondence courses from the University, and he would like to eventually get into appraisal. Chairperson Gale asked when Mr. Tranel=s civil rights would be restored. Mr. Tranel said he would have been eligible five years after the end of probation, so he would have been close to it now, but since they were federal charges, he would have to get a presidential pardon.Commissioner Landow asked what year Mr. Tranel was convicted. Mr. Tranel said the bankruptcy was in 1986, and the conviction was in 1993. Commissioner Landow noted that it took a lot of courage to come before the Commission and discuss these matters in public, and said he admired Mr. Tranel for that. Commissioner Moline asked if Mr. Tranel had discussed employment with any brokers. Mr. Tranel said no, and noted that he had an inactive real estate license prior to his conviction. Chairperson Gale asked if Mr. Tranel had any parole violations. Mr. Tranel said no, and that he had completed and been discharged from probation. Commissioner Wiebusch asked when Mr. Tranel let his inactive license expire. Mr. Tranel said it was before he pled guilty to the charges, and that he thought he did not renew for 1993 or 1994. Commissioner Nigro asked if Mr. Tranel ever used his real estate license. Mr. Tranel said no, that he kept it inactive. Commissioner Landow asked if Mr. Tranel intended to practice real estate. Mr. Tranel said he wanted to eventually become an appraiser. If he was allowed to get his real estate license, he would want to be an associate broker at first and work his way up the ladder. Chairperson Gale asked if Mr. Tranel =s actions during the bankruptcy were done on advice of counsel, or independently. Mr. Tranel said he could not truthfully answer that. Chairperson Gale noted that sometimes strategy or tactics done on advice of counsel had led to errors during the family farm crisis.A motion was made by Landow and seconded by Nigro to allow Mr. Tranel to sit for the broker =s examination, after submitting a completed application and appropriate fees. Moline offered a friendly amendment to the motion, that Mr. Tranel could be licensed after successful completion of the examination. The friendly amendment was accepted. The amended motion carried with Fletcher, Johnson, Landow, Moline, Nigro, and Wiebusch voting aye, and with Gale abstaining.Consider Awarding Errors and Omissions Insurance Contract beginning January 1, 2002 Director Tyrrell noted that the Exhibit consisted of both proposals received. A copy of said Exhibit is attached to and made a part of these Minutes. The Budget and Planning Subcommittee reviewed them yesterday, and Subcommittee Chairperson Fred Fletcher would present the Subcommittee=s recommendation. Commissioner Fletcher noted that the Subcommittee=s unanimous recommendation was to award the Errors and Omissions Insurance Contract to Williams Underwriting, Inc. and Chicago Insurance. Factors included a better A.M. Best rating, better contract provisions, and a lower premium. A motion was made by Fletcher and seconded by Landow to award the Errors and Omissions Insurance Contract to Williams Underwriting, Inc. and Chicago Insurance. Commissioner Moline asked if it was a three-year contract. Director Tyrrell noted that it could go up to six years. Commissioner Moline asked if it was possible to have Williams Underwriting make the policy available to builders also. Director Tyrrell said it could not be done as a mandated part of this contract, but staff could request they offer it. The contract can only affect licensees. Commissioner Moline noted that there are lots of builder/licensees who are not covered under the current policy because they are selling their own product, but that additional coverage could be obtained. Commissioner Moline asked that staff request they offer additional coverage as part of an extended coverage option for builders. Director Tyrrell said it would have to be offered separately, and would have to be underwritten, unlike the automatic approval for licensees. The premium would vary. Several providers might be interested in offering that additional coverage. Commissioner Moline said he did not think builders were aware of their potential liability. Commissioner Landow asked if lockbox damage covered loss due to someone using it to access the house. Commissioner Nigro said losses also happen during showings, such as when jewelry disappears. Chairperson Gale asked if it would cover a licensee who left a house unlocked, which resulted in vandalism. Commissioner Moline said he thought so. Commissioner Nigro requested that Director Tyrrell ask Williams Underwriting to consider raising the coverage level by allowing stackable deductibles within a company on the same claim against multiple licensees. Director Tyrrell said he will contact Williams Underwriting and relay the request. A vote was taken on the pending motion. Motion carried with Fletcher, Johnson, Landow, Moline, Nigro, Wiebusch, and Gale voting aye. Consider Removal of Notary Requirement from Certain Nebraska Real Estate Commission Forms (Part of On-Line Filing Project) Director Tyrrell presented an Exhibit entitled ARecommendation on Deletion of Notary Signatures.@ A copy of said Exhibit is attached to and made a part of these Minutes. Director Tyrrell noted that most of the recommendations were intended to facilitate on-line filing. Commissioner Moline asked if Counsel Widger had reviewed the recommendations. Director Tyrrell said yes. Chairperson Gale asked if the notation in #2 was sufficient. Director Tyrrell said that Counsel Widger had advised him that the wording would stand up in court for filing a false application. After discussion, a motion was made by Moline and seconded by Wiebusch to approve the changes as outlined in the Exhibit. 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 Commissioners were provided with the latest available version of LB 215, and that additional amendments were noted. No action was necessary on this Report. Information Matters Joint Central/Western Districts Meeting - July 14-16 - Denver Director Tyrrell presented an Exhibit on the Joint Central/Western Districts Meeting, which will be held July 14-16 in Denver. No action was necessary on this Report. Future Meeting Dates Recesses and Adjournment At 10:20 a.m. on March 27, Chairperson Gale declared a brief recess, and reconvened the Meeting at 10:35 a.m. At 11:16 a.m. on March 27, Chairperson Gale declared a brief recess, and reconvened the Meeting at 11:28 a.m. At 12:40 p.m. on March 27, there being no further business to come before the Commission, a motion was made by Moline and seconded by Fletcher 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 March 27, 2001, Meeting of the Nebraska Real Estate Commission were available for inspection on April 10, 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 |