NEBRASKA REAL ESTATE COMMISSION

April 26, 2001

Staybridge Suites                         Staybridge Room                         Lincoln, NE


Opening

Acting Chairperson Fletcher convened a Meeting of the Nebraska Real Estate Commission at 9:03 a.m. on April 26, 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, with the exception of Chairperson John Gale, who was absent and excused. 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. Acting Chairperson Fletcher reported that all Commissioners had been notified of the Meeting simultaneously, in writing, and that a proposed Tentative Agenda accompanied the notification.

Acting Chairperson Fletcher 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. Acting Chairperson Fletcher 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. The Show-Cause Hearing was continued to a later date, and for Item 14f, the status of LB 538 was changed to Enrollment and Review Initial.

After review of the Final Agenda, a motion was made by Nigro and seconded by Wiebusch to adopt the Final Agenda as presented. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Minutes of March 27, 2001

The Minutes of the Commission Meeting held on March 27, 2001, were considered.

After review, a motion was made by Moline and seconded by Nigro to approve the Minutes as presented. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Receipts and Expenditures Reports for March

Director Tyrrell presented the Receipts and Expenditures Report for March 2001. A copy of said Report is attached to and made a part of these Minutes.

With regard to the March Report, Director Tyrrell noted the following: there was nothing unusual to report in Receipts. In Expenditure Category 4215, Publications and Printing, expenditures included a large printing of the License Manual for application packets; and in Category 4221, Dues and Subscriptions, the expenditure for a notary fee was miscoded, and will actually be deducted from Category 4491, Other Operating Expenses.

The Cash Fund Balance as of March 31, 2001, was $603,916.38, which compared to a Cash Fund Balance of $575,101.25 on March 31, 2000.

After discussion, a motion was made by Wiebusch and seconded by Nigro to file the March Receipts and Expenditures Report for audit. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

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 Johnson to ratify issuance of the licenses as set forth in the Report. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Examination Report - March

Deputy Director Hoffman presented a Report relating to the real estate examinations administered during March 2001. A copy of said Report is attached to and made a part of these Minutes.

After review, a motion was made by Nigro and seconded by Wiebusch to ratify the March Report for the purpose of issuing licenses. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Real Estate Education Matters

Continuing Education Activity Approval

Deputy Director Hoffman presented for ratification the Continuing Education Activity Approval Report, which listed approvals for eight continuing education activities. A copy of said Report is attached to and made a part of these Minutes.

Deputy Director Hoffman noted that there were four distance education courses on the Report. Acting Chairperson Fletcher asked if the ethics training course was based on the same outline as the training provided at the Nebraska Realtors Association Convention. Deputy Director Hoffman said it was a similar outline which had been supplemented with Nebraska regulations and case studies.

After discussion, a motion was made by Wiebusch and seconded by Nigro to ratify the Report. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Continuing Education Instructor Approval

Deputy Director Hoffman presented for ratification the Continuing Education Instructor Approval Report, which listed approvals for two continuing education instructors. A copy of said Report is attached to and made a part of these Minutes.

After discussion, a motion was made by Nigro and seconded by Wiebusch to ratify the Report. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Continuing Education Activity Rejection

Deputy Director Hoffman presented for ratification the Continuing Education Activity Rejection Report, which listed rejections for two continuing education activities. A copy of said Report is attached to and made a part of these Minutes.

Deputy Director Hoffman noted that these courses were discussed at the previous Commission Meeting. No appeal had been sought for either course.

No action was necessary on the Report.

Instructor Development Workshop Update

Deputy Director Hoffman presented information about the upcoming Instructor Development Workshop, which is scheduled for May 14 at Larabee School in Lincoln. Approximately 36 instructors have pre-registered for the Workshop, and RSVPs are not due until May 1.

The registrants represented a good cross-section of instructors.

No action was necessary on this Report.

Director Tyrrell noted that the discussion of the continuing education presented at the Nebraska Realtors Association Convention, which was tabled at the March Meeting, was continued to the May Meeting at request of Chairperson Gale.

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 were disciplinary hearings scheduled on both days of the May Meeting, unless Stipulation and Consent Orders are worked out.

No action was necessary on this Report.

The following Sworn Complaints and Investigative Matters were presented to the Commission:

Item A Complaint #2001-010 - Arwyn West Inc., Franklin A. West, President and Garth D. West, Secretary vs. Gordon O. Luhrs

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

It was the consensus of the Commission to have Deputy Director Mayrose investigate the questions raised during discussion, and report his findings to the Commission. After further investigation and discussion with Counsel Widger, Deputy Director Mayrose reported that there was no violation of agency law.

After being advised of the results of the investigation and discussion, a motion was made by Moline and seconded by Wiebusch that the Complaint be dismissed. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Item B Complaint #2001-011 - James L. & Tina R. Rothe vs. Larry Dean Melichar & William Harry Bauer

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 Moline and seconded by Wiebusch that the Complaint be dismissed. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Item C Complaint #2001-012 - DeVon & Debra Huebert vs. Timothy Charles Plate & Rudolf F. Plate

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. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Item D Investigative Matter - Richard D. Peterson, Broker Applicant

Director Tyrrell presented the issues regarding this applicant to the Commission and, when necessary, answered questions on this matter.

After being advised of said issues and discussion, a motion was made by Moline and seconded by Nigro that the applicant be issued a Nebraska broker=s license, under the statutory moving to Nebraska criteria. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Presentation of Stipulation and Consent Orders

Complaint #2001-017, Commission vs. Lyle Richard Todd

Deputy Director for Enforcement Mayrose presented a Stipulation and Consent Order in the matter of Complaint #2001-017, Commission vs. Lyle Richard Todd. A copy of said Order is attached to and made a part of these Minutes. Mr. Todd was in attendance.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Todd.

After discussion, a motion was made by Johnson and seconded by Wiebusch to enter into the Order as presented.

Commissioner Landow asked how many continuing education activities were available to meet the requirements of the Order. Deputy Director Hoffman noted that there were fewer correspondence activities available than in the past, due to the relatively recent requirement of ARELLO Certification for all distance education activities. Deputy Director Hoffman estimated that there were 4 or 5 activities available on trust accounts. She also indicated that all trust account activities were based on the Trust Account Manual, and were essentially the same.

Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Hearings

April 26, 9:30 a.m. - Show-Cause Hearing on

Complaint #1998-026, Commission vs. Buree Stovall

The Show-Cause Hearing scheduled in the matter of Complaint #1998-026 was continued to the June Meeting.

Informal Special Appearances

There were no Informal Special Appearances scheduled for this Meeting.

Review and Approval of Errors and Omissions Contract Effective January 1, 2002

Director Tyrrell presented an Exhibit entitled AContract for Provision of Insurance and Related Administrative Services,@ for Williams Underwriting Group, Inc., to provide the state errors and omissions insurance policy for Nebraska licensees. A copy of said Exhibit is attached to and made a part of these Minutes.

Director Tyrrell noted that the contract was the same format as the contract signed in 1996. Director Tyrrell noted that legal counsel for both sides had reviewed and approved the contract and all changes; that all parties were in agreement; and that he recommended entering into the contract.

After discussion, a motion was made by Moline and seconded by Nigro to authorize the Director to enter into the insurance contract with Williams Underwriting Group, Inc. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

Legislative Matters

Director Tyrrell reviewed the status of various Legislative Bills of interest to the Commission.

Director Tyrrell noted that the final version of LB 215 had been mailed to the Commissioners. Director Tyrrell also noted that he had polled the Commissioners regarding the Chambers amendment, and that he had informed the Policy Research Office and Senator Smith that the Commission had no problems with the bill as amended. Commissioner Landow asked about the Nebraska Realtors Association=s position on the bill. Perre Neilan of the Nebraska Realtors Association said that the Association had informed Senator Smith and Governor Johanns that they supported LB 215 in its final reading form.

No action was necessary on this Report.

Information Matters

ARELLO Spring Meeting - April 4-8 - Report of Attendees

Director Tyrrell reported that the ARELLO Spring Meeting was held April 4-8 in Baltimore.

Commissioner Nigro reported that she had chaired her first Fair Housing Training Board meeting, and that the Board had taken on a heavy agenda for the next six months. She also participated in her first Board of Directors Meeting, which was very interesting.

Commissioner Moline said he got more out of this meeting that the one held in Savannah. Commissioner Moline said he learned a great deal during the panel discussions, and from participant questions.

Commissioner Wiebusch said it was a great meeting. She found the forums very informative, and noted that she was serving on two committees. Commissioner Wiebusch said Nebraska was fortunate in the training Commissioners received, and noted that some states have no training at all, which was especially hard on the public members. Commissioner Wiebusch said she appreciated Commissioner Landow>s participation as a public member. Commissioner Wiebusch said that some states have representatives from the attorney general=s office present information on Ado=s and don=ts@ for Commissioners, regarding appropriate questions to ask of staff, proper procedures, etc. Commissioner Wiebusch noted that ethical and legal considerations for real estate regulation was also covered, in the context of the ARELLO code of ethics. Commissioner Wiebusch asked for Director Tyrrell=s opinion on the session.

Director Tyrrell said he was also shocked at the lack of information provided to Commissioners in other jurisdictions, according to the participants in the meeting. He said some Commissioners did not find out about ARELLO until they got a meeting notice, and did not know what it was. Also, an administrator group recommended that the two separate training boards for Commissioners and administrators be combined, which was against the intent of dividing the two training boards in the first place. One public member Commissioner wanted a session without administrators or industry people, so Commissioners could discuss items more freely. Director Tyrrell felt an additional session for public members would be a good idea, to get them up to speed on real estate issues. Director Tyrrell also noted his appreciation for the active participation of Commissioner Landow and past public members.

Commissioner Johnson said it was a good meeting, but that he found the convention meeting more helpful. Commissioner Johnson noted that he and Commissioner Moline were on the Communication Committee chaired by Deputy Director Hoffman. He enjoyed the discussion with the Attorney General from Maryland regarding disciplinary hearings. Commissioner Johnson said he always learns something new at ARELLO meetings.

Commissioner Nigro asked who was planning to attend the Denver meeting. It was determined that Chairperson Gale, Commissioner Nigro, and Deputy Director Hoffman were planning to attend; Commissioner Fletcher, Commissioner Landow, Commissioner Moline, and Director Tyrrell were not; and Commissioner Wiebusch and Commissioner Johnson had not yet decided.

Director Tyrrell said the Commissioner reports had covered almost everything. During the session on ethics, he had been very impressed that the ARELLO code of ethics was the context, instead of focusing on one particular jurisdiction. Director Tyrrell reported that ARELLO had adopted an additional classification of membership to allow Aemerging nations@ who are developing real estate laws to become members, so ARELLO can assist with developing the laws, and the members can come to meetings. The Board of Directors passed a motion to send a letter to the Federal Reserve Board to indicate ARELLO=s concern that nothing be done in its regulations to usurp the licensing and regulating authority of state real estate commissions. Director Tyrrell agreed that there were very good sessions, which were well-organized. The new Law Committee chair was impressive.

Deputy Director Hoffman said she had mainly observed the structure of the meeting, which was the first meeting since the Association=s reorganization. Most committees had very heavy agendas and multiple year projects. She found it refreshing to have forums and programs at the spring meeting. The Commissioner reports gave her an idea for the Communication Committee. She said ARELLO had designed some good Commissioner training materials, and the Communication Committee may need to communicate those for wider use. She thought there was great progress made with the new structure, with few false starts.

No action was necessary on this Report.

Service Satisfaction Survey - Spring 2001 Commission Comment Results

Director Tyrrell presented an Exhibit entitled AService Satisfaction Survey, Spring 2001 Commission Comment Results.@ A copy of said Exhibit is attached to and made a part of these Minutes.

Director Tyrrell noted that the survey appeared in the Spring Commission Comment, which was mailed during March 2001. Two more surveys had been received since the Report was done, which were in keeping with the other comments. The response rate was low, and all but one of the comments received were positive. There was no indication of why Apoor@ was marked on one question, because there were no comments listed with the response. An additional question will be added regarding website usability.

No action was necessary on this Report.

Future Meeting Dates

May 22-23, 2001 - Staybridge Suites, Lincoln
June 26-27, 2001 - Staybridge Suites, Lincoln
August 20-21 - Staybridge Suites, Lincoln
September 26-27 - TBA

Recesses and Adjournment

At 9:45 a.m. on April 26, Acting Chairperson Fletcher declared a brief recess, and reconvened the Meeting at 9:58 a.m.

At 10:40 a.m. on April 26, Acting Chairperson Fletcher declared a brief recess, and reconvened the Meeting at 10:48 a.m.

At 10:55 a.m. on April 26, there being no further business to come before the Commission, a motion was made by Landow and seconded by Wiebusch that the Meeting adjourn. Motion carried with Johnson, Landow, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Gale not participating or voting, being absent and excused.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing Minutes of the April 26, 2001, Meeting of the Nebraska Real Estate Commission were available for inspection on May 3, 2001, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Guests Signing the Guest List

Perre Neilan, Nebraska Realtors Association, Lincoln
Harding Collis, NP Dodge, Omaha
Beth Lube, ReMax Real Estate Group, Omaha
Mary Sears, CBSHOME, Omaha
Henry Kammandel Jr., CBSHOME, Omaha
Lyle Todd, South Sioux City