NEBRASKA REAL ESTATE COMMISSION

May 22-23, 2001

Staybridge Suites                         Staybridge Room                         Lincoln, NE


Opening

Chairperson Gale convened a Meeting of the Nebraska Real Estate Commission at 9:05 a.m. on May 22, 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 Commissioner Paul Landow, who was not participating or voting, being absent and excused. Also present were Director Les Tyrrell, Deputy Director Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund. Applications and Licensing Secretary Nancy Glaesemann was present for the Hearing. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, was present for the Hearing, a Stipulation and Consent Order, and the discussion and policy items. Director Tyrrell also introduced Pat Stehly, the new Trust Account Examiner.

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.

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

Minutes of April 26, 2001

The Minutes of the Commission Meeting held on April 26, 2001, were considered.

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

Receipts and Expenditures Reports for April

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

With regard to the April Report, Director Tyrrell noted the following: there was nothing unusual to report in Receipts. In Expenditure Category 4100, Personal Services, the actual year-to-date amount was over the budgeted amount, but LB 538 will provide the additional $6000 to the spending limit to cover Bob Arterburn=s retirement expenses; in Category 4215, Publications and Printing, costs included the Spring Commission Comment and were slightly over the year-to-date budgeted amount, and Director Tyrrell also noted that staff will not publish a summer Commission Comment because there is very little news to report at this time; and in Category 4491, Other Operating Expenses, the expenditure for microfilming the Commission Meeting Minutes exceeded the monthly budgeted amount, but was still under the year-to-date budgeted amount.

The Cash Fund Balance as of April 30, 2001, was $549,905.75, which compared to a Cash Fund Balance of $537,071.37 on April 30, 2000.

Chairperson Gale noted that it appeared the Commission was significantly under budget. Director Tyrrell explained that the budget included a $98,000 carryover from last year.

After discussion, a motion was made by Fletcher and seconded by Nigro to file the April Receipts and Expenditures Report for audit. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow 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 Wiebusch to ratify issuance of the licenses as set forth in the Report. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Examination Report - April

Deputy Director Hoffman presented a Report relating to the real estate examinations administered during April 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 Nigro to ratify the April Report for the purpose of issuing licenses. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Deputy Director Hoffman noted that applicants can now make examination appointments on line, at no additional fee. Applicants receive both the toll-free telephone number and the website address after their applications are approved.

Real Estate Education Matters

Continuing Education Activity Approval

Deputy Director Hoffman presented for ratification the Continuing Education Activity Approval Report, which listed approvals for four 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 Fletcher and seconded by Nigro to ratify the Report. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow 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 five 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 Wiebusch and seconded by Johnson to ratify the Report. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Instructor Development Workshop Report

Deputy Director Hoffman reported that the Instructor Development Workshop was held May 14 at Larabee School in Lincoln. The 32 instructors who attended were representative of instructors across the state. Topics included teaching adults and holding their attention, and license law changes and clarification. The feedback received was very positive.

No action was necessary on this Report.

Discussion of Ethics and E&O Insurance Continuing Education Sessions

This discussion item had been tabled at the Commission Meeting held March 27, 2001. A motion was made by Johnson and seconded by Wiebusch to remove the discussion item from the table. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Chairperson Gale noted the Exhibits, which consisted of student evaluation information on the Ethics Training and the Reducing E& O Liability continuing education activities offered at the Nebraska Realtors7 Association convention. Copies of said Exhibits are attached to and made a part of these Minutes, denoted as Exhibit 8d1 and 8d2 respectively.

Deputy Director Hoffman noted that this Agenda Item, regarding the Ethics continuing education activity, was originally requested by Commissioner Nigro. Commissioner Moline had requested review of the Errors and Omissions continuing education activity evaluations during general discussion of the Nebraska Realtors7 Association convention. Discussion had been tabled at a previous Meeting to allow staff to obtain the student evaluation information on both activities.

Al Avery, President of Nebraska Realtors7 Association, noted that ethics are not only important to Realtor members, but also to the public. Mr. Avery said he wanted to correct misleading statements noted in the Minutes of the March Meeting. Mr. Avery said that some attendees may have arrived late, but they were not given credit. Some licensees who were late decided not to attend, because they knew they would not receive credit, but others stayed to learn the information without receiving credit. Certain members are required to attend ethics courses, such as the Board of Directors and members of the Professional Standards Committee. For some people, continuing education credit may be a secondary reason to attend an activity.

Chairperson Gale asked if attendance was monitored so that people could not come and go. Mr. Avery said there were proctors monitoring attendance, in addition to the sign-in sheet. Chairperson Gale asked if the evaluation exhibit was compiled by Mr. Avery=s office. Mr. Avery said yes, and explained that each person in attendance received an evaluation form to complete. The provider gets the completed evaluation forms. Mr. Avery distributed an Exhibit which consisted of a list of attendees who did not receive continuing education credit. Said Exhibit is attached to and made a part of these Minutes, denoted as Exhibit 8d3. Mr. Avery said there were approximately 200 attendees.

Commissioner Nigro noted that the instructor could not answer questions on Nebraska law. Mr. Avery said it was hard to have an instructor well-versed in everything, and agreed that the instructor might not have had expertise in Nebraska law. Mr. Avery also noted that the start time was changed from 9:00 to 8:30 a.m., which was the start of the problem. Mr. Avery reemphasized that only those attending for the proscribed time were given credit. Chairperson Gale asked if, overall, it was a good activity which was well attended and well received. Mr. Avery said there was some grumbling because 4 hours of attendance was required, but only 3 hours of continuing education credit was given. Overall comments indicated that the activity was very good. Commissioner Nigro said that a person in her office sat through the Association=s activity, and then went to the activity presented by CBS on the same topic. The person said the CBS activity was much better, because the information was related to Nebraska law.

Chairperson Gale asked for discussion on the Errors and Omissions activity evaluations. Commissioner Moline said that he had requested the evaluations for the Errors and Omissions activity for comparison with the evaluations for the Ethics activity, and that the Commission did not need to specifically address the Errors and Omissions activity.

Deputy Director Hoffman noted that the Errors and Omissions activity evaluation form actually included responses given on 20 evaluations. There was an incorrect notation at the bottom of the form that indicated 153 returned evaluations. The Minutes copy will be corrected.

Commissioner Nigro asked if instructors get copies of the evaluations. Ms. Betts of the Nebraska Realtors7 Association said yes.

No action was required on this discussion item.

Clarification on Approvable Content for Code of Ethics Training

Deputy Director Hoffman presented an Exhibit which consisted of a cover memo asking for clarification on approvable content regarding Code of Ethics training, and the November Minutes excerpt of the previous discussion. A copy of said Exhibit is attached to and made a part of these Minutes.

Deputy Director Hoffman asked for clarification on approvable content regarding Code of Ethics training. Deputy Director Hoffman asked if it was the Commission=s intent to give credit for the entire curriculum, or to omit the part on the National Association of Realtors7=s enforcement process in determining the amount of credit. According to the November Minutes, the topic was addressed but not clearly resolved. Deputy Director Hoffman noted that the enforcement process was applicable only to members of the National Association of Realtors7.

Chairperson Gale said that, from his interpretation of the Minutes, two separate issues were addressed. One dealt with allowing continuing education credit for an organization=s orientation material vs. allowing credit only for activities covering Nebraska law; and the other dealt with including only the National Association of Realtors7=s grievance procedure vs. including the Commission=s complaint process. Chairperson Gale felt that if the grievance procedure was just a small part, it could be easily absorbed as part of the approvable activity, but that if it was a significant portion of the activity, it was orientation. Chairperson Gale thought it was probably not approvable if it just covered the processes within the Association. Commissioner Johnson agreed that 5 or 10 minutes would be considered a short part of the activity, when included in a 3 hour activity. He felt that spending 10 minutes or less on specific Association matters was acceptable, but more than that would be considered orientation.

Commissioner Wiebusch asked if that was why the Ethics training was 4 hours long, but only approved for 3 hours of continuing education credit. Deputy Director Hoffman said that, in the outline originally submitted, enforcement process items totaled 25 minutes, and was not included in the approved hours. Deputy Director Hoffman also noted that activities are often longer than the approved credit hours, especially when the activities are for specific designations.

Chairperson Gale said that the Minutes indicated that Chairperson Moore saw 3 hours of good stuff after eliminating the enforcement process portion, and that Deputy Director Hoffman had commented that it was 3 hours of orientation to the National Association of Realtors7.

Director Tyrrell said this discussion was intended to be more philosophical than specific to the National Association of Realtors7 activity, and that more than one activity would be affected. Director Tyrrell noted that there can be various segments in a 3 hour activity, and that if any segment of an activity can be pulled out and made into a 3 hour activity, it would be considered approvable subject matter because of the precedent set. The Nebraska Realtors7 Association thought the 4th hour was not approvable subject matter. This question was raised during a phone call, and when it came up, Deputy Director Hoffman and Director Tyrrell discussed whether the grievance process could be part of a 3 hour activity, because there was room for interpretation. Since there was no specific mention of excluding the grievance process in the motion, all of the subject matter had been considered approvable based on the Commission=s vote. Staff had approved other activities based on that vote, with 5-10 minutes of grievance process material included. Director Tyrrell was concerned that if a segment was pulled out of an activity and expanded into its own activity, it would automatically be considered approvable. Director Tyrrell wanted to determine the Commission=s intent so that all providers could know whether the grievance process was approvable as continuing education subject matter.

Commissioner Moline said he tended to agree with Commissioner Johnson and Chairperson Gale that approval depended on the length of time spent on the subject. Commissioner Moline noted that the general public and non-member licensees can file grievances with the Nebraska Realtors7 Association. He thought it was appropriate that people participating in the activity, whether they were members or not, could find out in a 10-minute segment that they could participate in a grievance with Nebraska Realtors7 Association which could address issues that were not necessarily violations of license law. Commissioner Moline also stated that a 3 hour activity on just the grievance process would probably not be approvable.

Chairperson Gale asked if the consensus of the Commission was that if less than ten minutes was spent on the grievance process during a three hour activity, it would be considered approvable subject matter. Most of the Commissioners concurred.

Commissioner Nigro asked how it could be limited to ten minutes if discussion ensued. Chairperson Gale said the time allocated would be identified on the activity outline. Director Tyrrell said sometimes instructors ask interested students to stay after class for further discussion.

Director Tyrrell said that staff now was clear on the Commission=s intent and philosophy in this area, and noted that staff did not want to make a ruling on this issue without the Commission=s input.

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.

No action was necessary on this Report.

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

Item A Complaint #2001-009 - William Rodriguez vs. Kristi Kay Creger

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 Fletcher that the Complaint be dismissed without prejudice. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Item B Complaint #2001-021 - Joseph Valenti vs. Daniel Carl Bohm

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 set for Hearing on the allegations in Sections C1, C2, and C4 of the investigative report, omitting C3 if the company in question was not an LLC, and omitting C5. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Item C Complaint #2001-027 - Evelyn Kay Allison vs. Sharlet Rae Morgan

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 Wiebusch and seconded by Nigro that the Complaint be dismissed without prejudice. Motion carried with Fletcher, Johnson, Nigro, Wiebusch, and Gale voting aye, with Moline voting nay, and with Landow not participating or voting, being absent and excused.

Presentation of Stipulation and Consent Orders

Complaint #2001-007, Terry & Pamela Weldin vs. H. James Merrigan

Counsel Widger presented a Stipulation and Consent Order in the matter of Complaint #2001-007, Terry & Pamela Weldin vs. H. James Merrigan. A copy of said Order is attached to and made a part of these Minutes.

Counsel Widger reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Merrigan.

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

Complaint #2001-014, Commission vs. Sam C. Huston

Counsel Widger presented a Stipulation and Consent Order in the matter of Complaint #2001-014, Commission vs. Sam C. Huston. A copy of said Order is attached to and made a part of these Minutes.

Counsel Widger reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Huston.

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

Complaint #2001-018, Commission vs. Gregory Dean Mehring

Deputy Director for Enforcement Mayrose presented a Stipulation and Consent Order in the matter of Complaint #2001-018, Commission vs. Gregory Dean Mehring. A copy of said Order is attached to and made a part of these Minutes.

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

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

Commissioner Wiebusch asked what education was available in property management. Deputy Director Hoffman noted that Principles and Practices prelicense education covered trust accounts. Commissioner Wiebusch asked if specialized continuing education activities were available for people who were already licensed. Director Tyrrell said trust account continuing education activities covered property management trust accounts, and there was a specific section on property management in the trust account manual provided to every designated broker. Director Tyrrell said there was specialized training for licensees which focused exclusively on property management. Deputy Director Hoffman noted that both the salesperson and broker licensing examinations emphasized property management. Commissioner Wiebusch said she was not thinking of changing the requirements, just wondering where licensees could go for help. Director Tyrrell noted that management associations such as IREM had several continuing education activities approved, and that achieving special designations such as CCIM required specialized training.

Commissioner Moline noted that problems often arose because property management required more bookkeeping, with issuing statements and maintaining subaccounts, and the person doing it usually had no formal training in accounting. Commissioner Moline said a class was needed that specifically addressed accounting for property management, and that it should be about six hours long, so that licensees are immersed in it and really understand how to balance a property management checking account. Deputy Director Hoffman said that educators were always looking for topics of significance, and that she would put the word out. Commissioner Moline asked if it would be approvable as continuing education subject matter, if it focused on accounting. Deputy Director Hoffman said yes, since it was directly related to real estate.

Complaint #2001-015, Commission vs. Elaine R. Richman

Counsel Widger presented a Stipulation and Consent Order in the matter of Complaint #2001-015, Commission vs. Elaine R. Richman. A copy of said Order is attached to and made a part of these Minutes.

Counsel Widger reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Ms. Richman.

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

Hearings

May 22, 9:30 a.m. - Complaint #2001-007, Terry & Pamela Weldin vs. H. James Merrigan

The Hearing regarding Complaint #2001-007, Terry & Pamela Weldin vs. H. James Merrigan, was continued for presentation of a Stipulation and Consent Order.

May 23, 9:30 a.m. - Complaint #2001-013, Commission vs. Dennis L. Kilmer

A Hearing was convened on May 23, at 9:50 a.m., in the matter of Complaint #2001-013. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, appeared for the Complainant. Respondent Dennis L. Kilmer was not present, so Acting Chairperson Fletcher declared a recess until 10:00 a.m. to allow him extra time to arrive. At 10:00 a.m., the Hearing proceeded without Mr. Kilmer, after a search for Mr. Kilmer of the public areas inside and outside of the facility had been completed.

After her Opening Statement, Counsel Widger presented ten Exhibits, all of which were offered and received by Acting Chairperson Fletcher. Counsel Widger called Deputy Director for Enforcement Terry Mayrose, Deputy Director for Education Teresa Hoffman, Director Les Tyrrell, and Applications and Licensing Secretary Nancy Glaesemann as witnesses.

After the closing argument had been presented, Acting Chairperson Fletcher declared the Hearing concluded.

A motion was made by Moline and seconded by Wiebusch that Mr. Kilmer be found guilty of the violations alleged in the Complaint.

Chairperson Gale reviewed the many instances where Mr. Kilmer repeatedly failed to disclose information regarding lawsuits and judgments against him. Chairperson Gale said he was quite satisfied that Mr. Kilmer had violated the requirement for disclosure. Supplying the information at a later date did not necessarily exonerate the failure to disclose, and the information that was finally supplied was not accurate.

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

Acting Chairperson Fletcher then asked if there were any prior disciplinary actions taken against Mr. Kilmer. No prior disciplinary actions were on file.

A motion was made by Moline and seconded by Nigro to revoke Mr. Kilmer=s salesperson license immediately, and reject Mr. Kilmer=s broker=s application. A roll call vote was taken on the motion. Motion carried with Gale, Johnson, Moline, Nigro, Wiebusch, and Fletcher voting aye, and with Landow not participating or voting, being absent and excused.

Acting Chairperson Fletcher ordered that the Respondent pay the costs incurred for the court reporter and any witness fees, as provided for in 305 NAC Chapter 4, and stated that the Respondent would have thirty days from the date of the Order to reimburse the Commission for said costs.

Hearing no objections, Acting Chairperson Fletcher directed Counsel Widger to prepare the Order.

Acting Chairperson Fletcher announced that all Exhibits related to this Hearing would be retained in the Commission Office.

The Hearing was adjourned at 10:57 a.m.

Informal Special Appearances

May 22, 11:00 a.m. - John D. Thomas, Jr., Salesperson Applicant

Director Tyrrell presented an Exhibit which included letters regarding Mr. Thomas= Special Appearance, letters and documentation regarding Mr. Thomas= criminal history, and Mr. Thomas= application form. A copy of said Exhibit is attached to and made a part of these Minutes.

Mr. Thomas said that, during the application process, Commission staff had asked for more information on his criminal record from when he was 17-18 years old. Mr. Thomas said he was young then, and had not been in trouble since. He got married, had a daughter, obtained his college degree, and was working at United Parcel Service (UPS). He had dropped out of high school, and obtained his GED in 1994 or 1995.

Chairperson Gale asked if he had done any time in jail or prison. Mr. Thomas said he had done 10 days in jail on one charge of shoplifting in July 1994. Chairperson Gale asked if the conviction for theft by unlawful taking in September was also for shoplifting. Mr. Thomas said no, it was for a stolen toolbox, which was not taken from a store.

Chairperson Gale asked what Mr. Thomas had done to turn himself around. Mr. Thomas said he was put on house arrest for six months, which included intensive probation and psychiatric counseling through Operation Bridge, which is when he got his GED. Mr. Thomas supported himself during college by working as a restaurant cook. Chairperson Gale asked if Mr. Thomas had graduated from college. Mr. Thomas said he went to Metro Community College and got an Associate=s of Applied Science Degree in computer programming. He uses that degree at UPS, where he does database administration. Chairperson Gale asked how long Mr. Thomas had been employed at UPS. Mr. Thomas said it had been a year and three weeks. Chairperson Gale asked if he had not been in trouble with the law since 1994. Mr. Thomas said he was ticketed for speeding and driving on suspension in October 1998. He took a ticket dismissal class that canceled the speeding ticket, but he did not know that the driving on suspension ticket was not dismissed. He failed to appear for the driving on suspension ticket, and a warrant was issued for his arrest. He pled guilty and was penalized with a $100 fine and 30-day probation, which he accepted so that his driver=s license would not be suspended. The probation was canceled the same day, when he showed that he had obtained a valid driver=s license. Mr. Thomas had lost his license on points as a teen in April 1998, as a result of one ticket. He had pulled into a gas station and tipped over a trash can with his car, so he put it upright and left. He was ticketed for leaving the scene of an accident, but he went back and paid for the trash can when he found out the owner thought it was damaged. The conviction for leaving the scene of an accident took 8 points off his license. He got his license back on April 16, 2001.

Commissioner Moline asked if Mr. Thomas had talked to brokers about employment. Mr. Thomas said he had discussed employment with a broker in Omaha who had offered to attend the Special Appearance.

After discussion, a motion was made by Moline and seconded by Nigro to allow Mr. Thomas to sit for the salesperson=s examination and have the license issued upon passing, after proper application is made.

Director Tyrrell clarified the terms of Mr. Thomas=s probation regarding driving. Chairperson Gale asked Mr. Thomas if he had a vehicle licensed while he was not authorized to drive a motor vehicle. Mr. Thomas said yes, and that he drove during the first six months without a license, then after being charged with driving on suspension, he had his wife take him to work and wherever else he needed to go. Chairperson Gale asked if Mr. Thomas was also driving without insurance. Mr. Thomas said no, he had insurance during entire time on both his and his wife=s cars. Mr. Thomas said it costs more to get insurance reinstated if it is allowed to lapse.

Motion carried with Fletcher, Johnson, Moline, and Nigro voting aye, with Wiebusch and Gale voting no, and with Landow not participating or voting, being absent and excused.

May 22, 11:30 a.m. - Marvin D. Sundquist, Salesperson Applicant

Director Tyrrell presented an Exhibit which included letters regarding Mr. Sundquist=s Special Appearance, letters and documentation regarding Mr. Sundquist=s criminal history, and Mr. Sundquist=s application form. A copy of said Exhibit is attached to and made a part of these Minutes.

Mr Sundquist noted the three judgments entered against him, and said he had financial difficulties in 1992-93 when he lost his job and the bill collectors were calling. Mr. Sundquist said that, a couple of years ago, a default judgment was entered against him because he was not aware he needed to show up in court, and had forgotten that he owed money to that creditor. The judgment for The Liquidators had been set aside, because it was not his account. Chairperson Gale asked if it belonged to someone with the same name. Mr. Sundquist said he did not know for sure, it may have been his dad=s account, but Mr. Sundquist did not owe it and had never done business with the company. Another judgment, for Fremont First Central Credit Union, was on a loan he had never been late on, and the payment had been taken out of his paycheck weekly. Mr. Sundquist paid off the amount in full, and the judgment was set aside. Mr. Sundquist said that everything he had ever owed had been paid as of today, and all his loans and debts are current.

Chairperson Gale asked if Mr. Sundquist had declared bankruptcy. Mr. Sundquist said he never went through bankruptcy, and everything was paid in full. Chairperson Gale asked if Mr. Sundquist was currently employed. Mr. Sundquist said he had worked at Valmont Industries for approximately 12 years. He worked at Valmont from November 1996 to June 1999, was laid off in June 1999 and worked temporary jobs, then reapplied and was rehired by Valmont in January 2000, and has worked there full-time ever since.

Chairperson Gale asked if he completed training courses for computer skills. Mr. Sundquist said he took a few classes, but most of his training was self-study through the Microsoft MCSE program. Chairperson Gale asked if he used those skills at Valmont. Mr. Sundquist said no.

Chairperson Gale asked if the DWI in 1998 was Mr. Sundquist=s first offense. Mr. Sundquist said yes. Chairperson Gale asked if it was his only one. Mr. Sundquist said no, he had a DWI four years ago in Dodge County. He was going home after a company Christmas party in January 1997. He lost his license for 60 days, and then there was a separate administrative revocation for 90 days. Chairperson Gale asked if he completed the revocations without further violation, and currently had a license. Mr. Sundquist said yes, he had insurance and a driver=s license.

Commissioner Moline referenced the assault charge and subsequent anger control classes, and asked if Mr. Sundquist had his anger under control. Mr. Sundquist said yes, he had not had a problem keeping it under control since then. In that situation, the other guy threw the first punch, and Mr. Sundquist retaliated out of anger.

Commissioner Moline asked if Mr. Sundquist had talked to a broker about employment. Mr. Sundquist said he had talked with a broker in Omaha, but that he had not yet told the broker about the situation, so the broker does not know about the judgments or criminal history. The broker would have to decide after Mr. Sundquist explained the situation to him.

Chairperson Gale asked if Mr. Sundquist considered alcohol a problem, since he had two DWIs. Mr. Sundquist said that the first DWI resulted when he started drinking heavily, and it was a problem until 1994. After one of those instances, he decided that was enough. He quit for a year, then drank in moderation after that. Chairperson Gale asked if he had it under control. Mr. Sundquist said it had not been a problem since 1994, which was his last criminal activity, and he had gotten no speeding tickets since the second DWI.

Commissioner Nigro asked if Valmont had rehired Mr. Sundquist. Mr. Sundquist said he was not rehired from the layoff, because it was a permanent layoff. He had to go through the whole application process and started off the second time with no seniority.

After discussion, a motion was made by Moline and seconded by Fletcher to allow Mr. Sundquist to sit for the salesperson=s examination and have the license issued upon passing, after proper application is made.

Director Tyrrell asked the Commission if they wanted staff to verify the status of Mr. Sundquist=s debts. Commissioner Moline said he considered verification part of making sure the application was proper, truthful, and honest.

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

Personnel Matters - Closed Session

At 9:07 a.m. on May 23, a motion was made by Fletcher and seconded by Wiebusch to go into closed session for discussion of personnel matters. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

At 9:38 a.m. on May 23, a motion was made by Johnson and seconded by Landow to go into open session. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

At 11:12 a.m. on May 23, a motion was made by Wiebusch and seconded by Nigro to go into closed session for further discussion of personnel matters. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

At 11:38 a.m. on May 23, a motion was made by Fletcher and seconded by Wiebusch to go into open session. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

After reconvening in open, public session, a motion was made by Fletcher and seconded by Wiebusch to increase the salaries of Director Tyrrell and Deputy Director Hoffman by 1.5% on July 1, 2001, and by 2.5% on January 1, 2002. Motion carried with Fletcher, Moline, Nigro, Wiebusch, and Gale voting aye, and with Johnson and Landow not participating or voting, being absent and excused.

Approval of Travel to Advanced Investigator Workshop - Austin, TX - July 16-19

Director Tyrrell presented an Exhibit which showed the estimated cost of sending Deputy Director for Enforcement Mayrose to the ARELLO Advanced Investigator Seminar in Austin, TX on July 16-19, 2001. A copy of said Exhibit is attached to and made a part of these Minutes. Total cost was expected to be approximately $1519.00.

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

Discussion of Criteria to Determine Whether Persons with Criminal Convictions or Disciplinary Actions from Other Jurisdictions May Sit for the Examination and/or Have a License Issued

Chairperson Gale noted that he had requested this item be placed on the Agenda.

Director Tyrrell said current practice is that if applicants have had any convictions, they are brought before the Commission. Up until approximately eight years ago, applicants were not considered eligible for licensure until their civil rights had been restored, depending on the type of conviction. Director Tyrrell said the past procedure was pretty similar to most other jurisdictions, because convicts are considered rehabilitated after their civil rights are restored; some jurisdictions do not require an appearance if the conviction was more than 10 years prior, or if the incarceration ended more than 10 years prior; jurisdictions will usually not issue a license until probation is fully completed; a license is usually not issued for applicants convicted of embezzlement, fraud, or similar offenses; and applicants convicted of misdemeanors were usually allowed to sit for the examination and obtain a license, but, in some jurisdictions, applicants convicted of felonies were not allowed to obtain a license. The Commissioners will probably see more felony convictions, for drug-related offenses. Approximately 8 years ago, applicants convicted of felonies would probably not be allowed to sit, but applicants with drug-related felonies have been allowed to sit since then. In past years, applicants convicted of misdemeanors were not brought to the Commission, but 4 or 5 years ago the Commission decided they wanted to see all applicants with convictions.

Commissioner Moline said he was always uncomfortable making decisions on applicants with convictions, and sometimes felt he should vote against allowing them to be licensed. He asked if there was any research on how applicants fare after they appear, such as whether they pass the examination, become licensed, and have disciplinary action taken against them. Director Tyrrell said that very seldom does someone who appears come back for disciplinary action. The success rate in the business is probably about the same as any other applicant. Commissioner Moline asked if that meant there was no data that showed people have been harmed by allowing applicants with convictions to obtain licenses. Director Tyrrell said he did not remember any instances of complaints filed or disciplinary action taken against applicants who had made a Special Appearance.

Chairperson Gale said that, at the Pardons Board, there were fixed standards for consideration which gave predictability and fairness, because precedent was followed consistently. He said he was a bit shocked at some of the conduct of the applicants, such as driving while on suspension for a DWI conviction, which showed the person=s character, moral turpitude, and community integrity. Chairperson Gale said it bothered him when an applicant had recent violations, especially when the violations involve ethical considerations. At a recent ethics seminar, the presenter said that more successful people tend to be less ethical. Chairperson Gale was worried about allowing people into the profession who already have tendency to act unethically. Chairperson Gale felt that perhaps requiring a clean record for the past five years, and if DWIs were involved, requiring that the applicant be an active member of Alcoholics Anonymous, would be a good start for general standards. He felt that allowing convicts into the profession invited claims losses, and loss of reputation, for all licensees. Chairperson Gale was concerned that there were no consistent standards.

Commissioner Moline said he was not sure what actions would cause him to refuse an applicant. He tried to go by what he had approved for others, and tried to be fair. Commissioner Moline would welcome a standard that made sense. Commissioner Wiebusch concurred.

Director Tyrrell said he had received information from other jurisdictions on the subject, and could bring a list of written criteria as proposed policy, from which the Commission could pick and choose what to use. Most jurisdictions dealt with applicants on a case-by-case basis. Some jurisdictions allowed convicts to be licensed after they have served their time, and others only allowed licensure if they have had a clean record for the past three years. Chairperson Gale asked if Director Tyrrell would have counsel review the proposed policy items. Director Tyrrell said yes, he and Counsel Widger would review the material. Counsel Widger noted that Nebraska case law was limited in this area, but there was plenty to reference from other jurisdictions regarding when licenses have been denied. Nebraska statutes are very broad, and allow enforcement agencies to fashion policy. Chairperson Gale asked if the Commission would have authority under the statute to develop a policy. Counsel Widger said yes, because the statute gives very general guidelines, and the burden of proof of good character is on the applicant. If an applicant had been convicted of forgery, etc, including crimes involving moral turpitude, the Commission could refuse to issue a license. There is a broad definition of moral turpitude in Nebraska law.

Chairperson Gale asked for reactions from the Nebraska Realtors7 Association representatives present. Ms. Brookhouser agreed that standards should be developed. Mr. Avery said it was a good idea, and would raise the consumer=s bar of expectations. Licensees hold themselves out to be trusted, and it would reflect favorably on the profession to license only upstanding citizens.

After discussion, a motion was made by Moline and seconded by Wiebusch to have staff research the issue and bring back criteria to use when setting standards for allowing licensing of applicants with criminal convictions and prior disciplinary actions.

Chairperson Gale asked if it would be too soon to have the information at the next Meeting. Director Tyrrell said no.

Commissioner Johnson asked if staff would also check on special appearances over the past few years, to see if applicants were licensed and still held a license. Commissioner Johnson noted that some may not make it in the business, even after getting a license. Director Tyrrell said staff could go back as far as the Commission wanted. Commissioner Moline asked that staff also track how many applicants were turned down and how many were approved. Consensus of the Commission was to have staff review records since 1995.

A vote was taken on the pending motion. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Discussion of Procedure to Add Agenda Items after the Tentative Agenda Has Been Mailed to Commissioners and Subscribers

Chairperson Gale noted that he had requested this item be placed on the Agenda, because of a recent instance when subscribers were not notified of an Agenda change.

Chairperson Gale asked what the current guideline was. Director Tyrrell said that, according to the Open Meetings Law, the Agenda must be finalized 24 hours in advance of the Meeting. Counsel Widger agreed that the law allowed changes up to 24 hours ahead of the Meeting, and there could be no changes after that unless it was an emergency. Commissioner Moline asked if there were standards for declaring an emergency. Counsel Widger said the statute does not define it, but that case law has, and that it must be a true emergency. She gave the example of a sewer line that required immediate repairs, and a vote had to be taken on the expenditure before repairs could be made. After the 24 hour deadline had passed, the Agenda could be changed only by a vote at the Meeting.

Chairperson Gale ascertained that he should not ask the Commissioners if they had any changes to the Agenda when opening the Meeting. Director Tyrrell said that, up until today, the Chairperson always asked if additions or corrections had been made to the Tentative Agenda since it was mailed to the Commissioners, and Director Tyrrell would identify what had been updated. Counsel Widger noted that only the members of the Commission could make changes at the Meeting.

Director Tyrrell gave an example of when the Agenda had been changed by the Commission after its official adoption at the Meeting. A Hearing had been held on the first day of the Meeting, and the next morning the Respondent=s attorney asked for an emergency Hearing on motions, so the Agenda was amended so that the Commission could meet the appeal time frame.

Chairperson Gale noted that 24 hours was the minimum, but that the Commission could set something more restrictive. Chairperson Gale thought 24 hours was inadequate, and that 36 hours in advance would be more fair. Discussion ensued on the appropriate amount of time to allow changes.

Director Tyrrell requested that staff be allowed to add Stipulation and Consent Orders up to the 24 hour deadline, in order to deal with disciplinary matters in a timely fashion. Director Tyrrell noted that Consent Orders are worked out between the attorneys, and the details are not always finalized three business days ahead of the Meeting.

After discussion, a motion was made by Moline and seconded by Johnson to prohibit changes to the Agenda during the three business days prior to the Meeting, except for adding Stipulation and Consent Orders. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

This matter was reopened on May 23 for further discussion. Director Tyrrell requested that Information Matters also be exempted from the Commission=s deadline, because no action was required from the Commission on those items. After discussion, a motion was made by Moline and seconded by Wiebusch to also exempt Information Matters from the prohibition against changing the Agenda during the three business days prior to the Meeting. Motion carried with Fletcher, Moline, Nigro, Wiebusch, and Gale voting aye, and with Johnson and Landow not participating or voting, being absent and excused.

Review AUse of Unlicensed Persons by Licensees@ Policy Adopted February 12, 1992

Director Tyrrell presented an Exhibit which consisted of the AUse of Unlicensed Persons by Licensees@ Policy. A copy of said Exhibit is attached to and made a part of these Minutes.

Chairperson Gale noted that Commissioner Nigro had requested this item be placed on the Agenda.

Commissioner Nigro asked, if a person was looking at an Internet website or flyer, and called the office and asked the staff person if the price shown is still the listing price, could the staff person answer the question. Counsel Widger said not as the policy was written. When the policy was developed, there was discussion on how far the Commission wanted to go in allowing unlicensed people to be involved in a transaction. The Commission adopted this black-and-white rule, so there was no gray area about how far an unlicensed person could go.

Commissioner Moline noted that all licensees were struggling with this policy. When reviewing the policy, he had been surprised that unlicensed people could measure property. Commissioner Moline asked if the Commission could make new guidelines to reflect today=s practices and needs. Counsel Widger said the policy was restrictive in part because the Commission only has statutory authority over licensees. Brokers could be found negligent for allowing unlicensed people to do too much.

Commissioner Moline asked if Errors and Omissions insurance would cover a claim if an unlicensed person did something wrong. Director Tyrrell said it would be covered if it was a typo in a contract, but would probably not be covered if it was an intentional illegal act. Director Tyrrell did not know where the Errors and Omissions insurer would draw the line, but thought it would depend on what the Commission considered to be licensed activity. Using unlicensed persons put licensees at risk, including the designated broker.

Commissioner Nigro questioned why unlicensed persons could not answer questions, when the information was readily available to the public, including MLS listings. Commissioner Moline asked if the Commission had the authority to issue a new policy. Counsel Widger said yes, but noted that it was not law.

Commissioner Johnson asked if this issue had come up in any other jurisdictions. Director Tyrrell said that at least half of other jurisdictions have similar restrictions. If the allowed activity was too broad, it could include financing and other areas, so the Commission must be careful in setting policy.

Chairperson Gale asked if the policy was adopted through the rule-making process. Director Tyrrell said no, the Commission adopted this policy as an Agenda Item when licensees started using unlicensed people. Director Tyrrell brought a criteria list to a Meeting, and the Commission chose which items to include. Commissioner Nigro said that since it had been 10 years since the policy was developed, it was time to revisit it. Commissioner Wiebusch suggested that the Commission look at other jurisdictions= policies again, too. Director Tyrrell said he will find out the results of a recent ARELLO survey on the subject.

Commissioner Moline asked if the Nebraska Realtors7 Association representatives wanted to comment. Mr. Avery said the Association would be happy to research the subject, and bring it to the table. Director Tyrrell said that would be fine. Commissioner Moline said he would like to have Director Tyrrell research it from the regulatory side, and the Nebraska Realtors7 Association research it from the licensee side.

A motion was made by Wiebusch and seconded by Nigro to have staff explore other jurisdictions= policies on using unlicensed persons, and bring a report to the next Meeting.

Director Tyrrell noted that the Commission could have acted to change the policy at today=s Meeting, because no hearing was required for policy changes. Counsel Widger reiterated that these are only guidelines, not rules or regulations. The policy change would be published in the Commission Comment, as well as in the APolicies and Interpretations@ section of the License Manual, to inform the licensee population.

Chairperson Gale asked if the Commission kept a separate set of books regarding policies. Director Tyrrell said there is a section in the License Manual on Commission policies and interpretations, which is provided to all licensees, and there is also a section in the Commissioner Manual.

A vote was taken on the pending motion. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Commissioner Moline asked that the same research process be done for predatory lending, especially regarding increasing the sale price of a home after a contract is written, for possible disciplinary action and liability. Commissioner Moline asked that it be put on the Agenda for the next Meeting. Director Tyrrell cited rule and regulation that may provide authority in that area.

Legislative Matters

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

Director Tyrrell said that LB 215 was listed as being on Final Reading, but was not on the Legislature=s Agenda. Director Tyrrell had a long discussion with Senator Smith, who said the bill was on hold. The Legislature could reintroduce it or introduce the provisions in a new bill next January, but it looked like it would be in the same position if reintroduced. Most other options did not look promising. Director Tyrrell said he thought the Nebraska Realtors7 Association was meeting with Senator Smith in the near future to discuss the issue.

No action was necessary on this Report.

Chairperson Gale distributed a draft of a letter he was considering sending to Senator Smith on behalf of the Nebraska Real Estate Commission. A copy of said letter is attached to and made a part of these Minutes, denoted as Exhibit 18c. Chairperson Gale said it was sad, after all this work, for the bill to fail for reasons not related to the bill. Chairperson Gale said the Commission=s position had been very favorable and supportive of the bill, and he thought the letter reflected the position of the Commission. The Nebraska Realtors7 Association had requested the letter, and thought it would be helpful in their discussions with Senator Smith.

Commissioner Moline said he liked the tone of the letter, and suggested that it be noted in the letter if the vote was unanimously in favor of the letter. Chairperson Gale said it could not be an unanimous vote with Commissioner Landow absent. Director Tyrrell suggested it be noted as an unanimous vote of those present. A motion was made by Moline and seconded by Fletcher to approve that the letter be delivered by Chairperson Gale, with unanimous language added if the Commission voted unanimously in favor of the letter. Motion carried with Fletcher, Johnson, Moline, Nigro, Wiebusch, and Gale voting aye, and with Landow not participating or voting, being absent and excused.

Information Matters

ARELLO Central/Western District Conference - July 14-16, 2001

Director Tyrrell presented an Exhibit which consisted of registration materials for the ARELLO Central/Western District Conference. A copy of said Exhibit is attached to and made a part of these Minutes.

Director Tyrrell reported that the ARELLO Central/Western District Conference will be held July 14-16, 2001, in Denver. Director Tyrrell noted that the registration deadline is June 10 for both meeting and hotel reservations. Attendees need to let Director Tyrrell know by the end of the week, so the Commission can pay for all the registrations with one check. Guest registration checks will be forwarded with the Commission payment. Attendees should make their hotel reservations immediately. Director Tyrrell noted that the conference schedule was changed, and the conference now starts on Saturday night.

No action was necessary on this Report.

Errors and Omissions Insurance Loss Information Report through March 31, 2001

Director Tyrrell presented the Errors and Omissions Insurance Loss Report through March 31, 2001. A copy of said Report is attached to and made a part of these Minutes.

Director Tyrrell noted that there were no unusual claims in the Report. Director Tyrrell also noted the Report did not include information on this year=s policy from 1-1-01 through 3-31-01, due to a change in the method of reporting within the insurer=s database. Director Tyrrell will forward that information when it is received.

Director Tyrrell reported that he had also asked Williams Underwriting Group (WUG) to review stackable deductions, as the Commission had requested. WUG is researching the possibility with insurers.

Commissioner Moline noted that he had asked if WUG would provide separate builders= insurance, and was waiting to hear back. Director Tyrrell and Commissioner Moline will both contact WUG on that issue.

Chairperson Gale noted an apparent decline in paid expenses, and asked if claims have declined. Director Tyrrell said the figure depended on when a claim was actually closed, and also depended on individual cases. Some of the expenses may have been carried over. Commissioner Johnson said it appeared that claims have leveled out.

No action was necessary on this Report.

Trust Account Examination Evaluation Report - First Quarter 2001

Director Tyrrell presented the Trust Account Examination Evaluation - First Quarter 2001 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. This report only included feedback on two examiners, since one recently retired.

No action was necessary on this Report.

Review Proposed ADirect Earnest Payments to Closing Agent@

Director Tyrrell presented an Exhibit which consisted of proposed ADirect Earnest Payments to Closing Agent@ language. A copy of said Exhibit is attached to and made a part of these Minutes.

Director Tyrrell noted that legal counsel had reviewed the proposed language, and agreed with staff that it was within the statute to handle money this way. With this language, the earnest money check would be made out to the closing company, and the licensee would deliver it to the closing agent. The earnest money would not go through the broker=s trust account. Director Tyrrell noted that this language was developed by one company that wanted to handle money in this way, but more companies may want to do this in the future.

Commissioner Moline noted that, in Utah, earnest money was handled differently than in Nebraska. Currently in Nebraska, when a broker receives earnest money, the broker deposits it and transfers it immediately to the closing company. This system would allow earnest money to go directly to the escrow closing company, if the language was included in the purchase contract, and the extra transfer would not be needed. If the broker was doing the closing, the broker would keep the earnest money in the trust account, but the broker could forward it directly to the closing company if they were doing the closing. This language would eliminate the requirement for the buyer=s agent deposit. Chairperson Gale clarified that now, if earnest money is received by a buyer=s agent, it goes into the buyer=s agent account, then into the listing agent=s account, then to the escrow closing company. Director Tyrrell said yes, unless all the parties agreed otherwise in writing. Commissioner Moline said that, at the time the rule was written, most brokers were doing their own closings, and it made sense. It no longer makes sense now that closing companies are doing most of the closings.

Chairperson Gale noted that escrow agents do not like to refund earnest money without a legal decision. Director Tyrrell reiterated that this one company submitted their policy to make sure it was in compliance with the law, and that it was not a proposed Commission policy. Director Tyrrell brought it to the Commission so that the Commission would be aware of the situation, in case more companies decided to do this. Counsel Widger further clarified that the language was proposed to be included in a company=s standard purchase agreement contract, specifically regarding receipt of earnest money.

Commissioner Moline noted that staff and counsel determined it was legal, and that it was tedious accounting and inefficient to do it the way the rule was written. Commissioner Moline said the Commission could update the rule to show that this was allowable. Director Tyrrell said staff would review all the rules if LB 215 did not pass. Staff would bring proposed rule changes back to the Commission. Commissioner Moline said he would like to see this change.

Counsel Widger noted that the broker was changing the wording in purchase agreements. This provision would not apply if the check was written to the broker, or especially if cash earnest money was involved. In that case, an addendum would show receipt of the earnest money. Chairperson Gale said if it was done by agreement of the parties, it would be OK. Counsel Widger also noted that staff did not get into wordsmithing the broker=s purchase agreement. The statute allowed this approach with the written agreement of all parties. Staff brought it to the Commission because it was a new approach.

Chairperson Gale said the company should have the title insurance association review the clause, and predicted they would not like it. Counsel Widger said she will recommend that to the company. Commissioner Moline said to tell the company that the Commission will look at the applicable rule, and that the company may not want to go down this path if the Commission revised the rule.

It was the consensus of the Commission that the company=s proposed addition to their purchase agreements did not violate the License Act or rules and regulations of the Commission.

Future Meeting Dates

June 26-27, 2001 - Staybridge Suites, Lincoln

August 20-21 - Staybridge Suites, Lincoln

September 26-27 - Holiday Inn Central, Omaha

Recesses and Adjournment

At 10:16 a.m. on May 22, Chairperson Gale declared a brief recess, and reconvened the Meeting at 10:39 a.m.

At 11:51 a.m. on May 22, Chairperson Gale declared a brief recess, and reconvened the Meeting at 12:05 p.m.

At 12:43 p.m. on May 22, Chairperson Gale declared a recess for lunch.

At 2:15 p.m. on May 22, Chairperson Gale reconvened the Meeting.

At 3:10 p.m. on May 22, Chairperson Gale recessed the Meeting until 9 a.m. on May 23.

At 9:04 a.m. on May 23, Chairperson Gale reconvened the Meeting.

At 9:07 a.m. on May 23, the Commission voted to go into closed session to discuss personnel matters.

At 9:38 a.m. on May 23, the Commission voted to reconvene in open session.

At 9:38 a.m. on May 23, Chairperson Gale declared a brief recess, and passed the gavel to Acting Chairperson Fletcher to preside at the Hearing. Acting Chairperson Fletcher reconvened the Meeting and convened the Hearing at 9:50 a.m.

At 9:51 a.m. on May 23, Acting Chairperson Fletcher declared a brief recess to allow the Respondent extra arrival time and to search the premises for the Respondent, and reconvened the Hearing at 10:00 a.m.

At 10:57 a.m. on May 23, Acting Chairperson Fletcher adjourned the Hearing and passed the gavel back to Chairperson Gale.

At 10:57 a.m. on May 23, Chairperson Gale excused Commissioner Johnson from the remainder of the Meeting

At 10:57 a.m. on May 23, Chairperson Gale declared a brief recess, and reconvened the Meeting at 11:10 a.m.

At 11:12 a.m. on May 23, the Commission voted to go into closed session to discuss personnel matters.

At 11:38 a.m. on May 23, the Commission voted to reconvene in open session.

At 11:46 a.m. on May 23, there being no further business to come before the Commission, a motion was made by Fletcher and seconded by Wiebusch that the Meeting adjourn. Motion carried with Fletcher, Moline, Nigro, Wiebusch, and Gale voting aye, and with Johnson and Landow 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 May 22-23, 2001, Meeting of the Nebraska Real Estate Commission were available for inspection on June 7, 2001, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Guests Signing the Guest List
Al Avery, Nebraska Realtors
7 Association, Grand Island
Perre Neilan, Nebraska Realtors
7 Association, Lincoln
Tammy Brookhouser, Nebraska Realtors
7 Association, Lincoln
Lisa Betts, Nebraska Realtors
7 Association, Lincoln
Mary Bills, Woods Brothers and Nebraska Realtors
7 Association, Lincoln
Jerry Ahlvers, CBSHOME and Nebraska Realtors
7 Association, Omaha
Henry Kammandel, Jr., CBSHOME and Nebraska Realtors
7 Association, Omaha
Judy Burford, CBSHOME, Omaha
Harding Collis, NP Dodge, Omaha
Beth Lube, ReMax Real Estate Group, Omaha
Bevan Alvey