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.

Chairperson Gale asked if the Commission=s cash fund was in any danger during the Special Legislative Session. Director Tyrrell said he had no indication of any problems, because there were not excessive funds in the cash fund balance. There was just enough to fund the Commission until renewals started coming in, with a 4-5 month reserve. During budget-cutting sessions, the cash fund agencies had been left alone, unless there was an excessive amount in their cash fund balance. Chairperson Gale asked if it took a vote of the Commission to allow the Legislature to take the funds. Director Tyrrell said that if the Legislature passed a law to take the funds, he did not think the Commission would have any input at the time of the taking.

Commissioner Johnson noted that the provider usually had pretty good courses, and asked if these courses were approved anywhere else. Deputy Director Hoffman said that some jurisdictions gave blanket approvals, so she was sure it was approved somewhere. These courses are looked at individually in Nebraska, and some content is outside the approvable subject matter guidelines. Chairperson Gale asked if the provider would want to change the course to receive approval. Deputy Director Hoffman said this provider=s courses are part of a designation curriculum, and the provider does not have flexibility in their program to change the courses. Deputy Director Hoffman noted that the provider had been notified and had not appealed the rejection.

Item A Complaint #2002-006 - Marjorie McIntire vs. Alexander Lee White-Hamilton & Cleo Anne Jackson

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 Nigro that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item B Complaint #2002-011 - Amy Feidler vs. John Robert Greguska

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 without prejudice. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item C Complaint #2002-013 - Donald R. & Valerie A. Keeton vs. Michael D. Hanson & Mark F. Abboud

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 Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item D Complaint #2001-043

Deputy Director Mayrose presented information regarding the pending civil action 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 Strand that the Complaint be held in abeyance until Counsel Widger and the Complainant=s counsel determine that Commission action would not impede the progress in the civil action. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item E Complaint #2002-007 - Commission vs. John Steven Headlee
Complaint #2002-008 - Commission vs. Elizabeth T. Lube

These Complaints were about the same situation, so the Commission considered them together. Deputy Director Mayrose presented the information obtained from the Respondents= answers 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 Strand that both Complaints be dismissed without prejudice, and a letter of admonishment be sent to the broker to clarify the forms in question. Motion carried with Moline, Nigro, Shepard, Strand, and Wiebusch voting aye, and with Johnson and Gale voting nay.

Item F Non-resident broker applicant

Counsel Widger presented the information obtained regarding the non-resident broker applicant to the Commission and, when necessary, answered questions on this matter.

The witnesses Counsel Widger spoke with had no documentation of their problems with the applicant. Neither witness felt they could say that the applicant did not deserve a Nebraska license, but each knew of separate situations where the applicant had borrowed money and had not repaid it. Director Tyrrell noted the lack of documentation, and asked for the Commission=s guidance. There was no disciplinary action against the applicant in his resident jurisdiction. Director Tyrrell reviewed the procedural options open to the Commission.

It was the consensus of the Commission to proceed with the decision made at the previous meeting, which was to offer the applicant a Special Appearance to explain the situation, and if the applicant chose not to appear, the license would be denied.

At 9:38 a.m. on June 12, Chairperson Gale called to order the Public Hearing on the Proposed Amendments to Title 302, Chapter 1, of the Commission=s Rules and Regulations. Chairperson Gale explained that the Hearing would be conducted in accordance with the Administrative Procedure Act, and explained how testimony would be given.

Director Tyrrell presented four Exhibits, which included: 1) a copy of the Notice of Meeting, which was published in two newspapers and filed with the Secretary of State, the Executive Board of the Legislative Council, and the Governor=s Policy Research Office; 2) a copy of the Lincoln Journal-Star proof of publication of the Meeting Notice; 3) a copy of the Omaha Daily Record proof of publication of the Meeting Notice; and 4) a copy of the proposed amendments to Title 302, Chapter 1, in legislative style. Exhibit 4 (marked as Item 11a in the Commissioner packets) is attached to and made a part of these Minutes.

Chairperson Gale asked if there were any questions which pertained to situations where handymen had built sheds or enclosed porches without the proper permits or zoning. Commissioner Moline noted that Part II, Section C, #4 addressed those concerns. Chairperson Gale said the problem was that the seller might not necessarily know. Commissioner Moline said the subcommittee discussed the issue, and thought they might be opening Pandora=s box. Chairperson Gale said that inspections may be done to find out about setbacks and similar problems. Director Tyrrell noted he could not find anything in the rule which referenced permits.

Chairperson Gale asked about disclosing electrical problems. Counsel Widger noted that Section B, #12 addressed all other electrical problems. The subcommittee discussed the question, and decided it was broad enough that an honest seller would note any problems or rewiring. The subcommittee thought it was as close as they could get to broad enough to cover all contingencies. Chairperson Gale said the concern was brought to mind by today=s paper, where a fire was started by an extension cord attached to an air conditioner. Chairperson Gale said that home remedies could be dangerous, but he thought that section addressed them.

Commissioner Shepard referenced Part II, Section D, regarding Athe dwelling and the improvements@ language. If a home had a detached double car garage, the questions would include the garage, and water connections would not normally be in a garage.

Commissioner Shepard also questioned the reference to whether the property was in a flood plain. In his area, it was common practice that the question would only be answered Ayes@ if the property was in a 100-year flood plain, because homeowners only needed insurance for 100-year flood plains. If the property was in a 200-year flood plain, it was marked no. In Fremont, the concern was whether the homeowner needed flood insurance. Commissioner Shepard asked if the Commission needed to take the next step and ask if flood insurance was required, or whether the property had a flood-proof basement. Director Tyrrell asked for clarification that the question was commonly answered no if the property was in a 200-year flood plain. Commissioner Shepard said they would say no every time, because you do not need flood insurance. That had been the general consensus that was how it was answered. Commissioner

In reference to Commissioner Shepard=s first point, Director Tyrrell agreed that the lead-in language regarding Athe dwelling and the improvements@ would technically include the garage.

Extensive discussion ensued on alternative wording. Commissioner Moline made a motion to change it to read Adwelling improvements,@ but withdrew his motion after further discussion. Commissioner Strand eventually called the question on the original motion to approve the amendments as presented, but withdrew his call of the question when Chairperson Gale pointed out it would limit public comment. It was the consensus of the Commission to leave the wording as originally proposed.

Jerry Ahlvers, representing the Nebraska Realtors7 Association, recommended adding Aif known@ after the question regarding capacity and amps in Part I, Section B. Mr. Ahlvers said the Association originally tried to get that part deleted, because homeowners usually do not know how many amps. Mr. Ahlvers also noted that the Association wanted to make Part II, Section D refer only to the dwelling, but were told the language had to include improvements. Mr. Ahlvers noted that the primary issue to the public was whether the house was connected to public water, private water, a septic tank, etc., not whether there was running water in the barn. Mr. Ahlvers also said it did not come up very often.

A motion was made by Moline and seconded by Nigro to amend the pending motion, to add A, if known@ after amp in Part I, #1, in the second line, so that it read A(Capacity ____ amp, if known).@ Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Commissioner Wiebusch asked for clarification from Mr. Ahlvers regarding the dwelling and improvements language. Mr. Ahlvers said the Association originally wanted it to just say Adwelling,@ and alternatives were not discussed in depth. It was discussed that Aimprovements@ meant everything on the property. They did not think the average person was that concerned with all buildings on the property, but did not know how to re-word it for sure. Counsel Widger said she thought making it Aand/or@ would be approvable by the Attorney General=s office. Mr. Ahlvers said that would mean either the dwelling or the improvements, or both, but would not necessarily mean both. Sellers needed to identify anything out of the ordinary.

Commissioner Shepard said he did not think it was significant whether the question read Aand/or@ or just Aand,@ and he would not vote to make that amendment.

Director Tyrrell presented an Exhibit which included correspondence regarding Mr. Rogness=s Special Appearance, a copy of Mr. Rogness=s application, and supplemental information Mr. Rogness provided regarding his funeral director license disciplinary history. A copy of said Exhibit is attached to and made a part of these Minutes. Mr. Rogness was not present.

Director Tyrrell reviewed the Exhibit, including Mr. Rogness=s explanation of the disciplinary action against his funeral director license.

After discussion, a motion was made by Moline and seconded by Wiebusch to allow Mr. Rogness to be granted a non-resident reciprocal broker=s license. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell presented an Exhibit which included correspondence regarding Ms. Wegner=s Special Appearance, a letter from Ms. Wegner regarding her criminal history, and letters of recommendation, and an additional Exhibit which consisted of the judge=s order to set aside Ms. Wegner=s felony conviction. A copy of said Exhibits are attached to and made a part of these Minutes. Ms. Wegner was not present.

Director Tyrrell noted that the second Exhibit was an order which set aside Ms. Wegner=s felony conviction. The District Court had nullified her conviction, and in the opinion of Director Tyrrell and Counsel Widger, that nullification did away with the conviction so it was no longer on her record, and therefore did not fit under the Commission=s policy which required all applicants with felony convictions to appear before the Commission. Director Tyrrell recommended that the Commission take no action, or take a vote to allow her to sit for the examination.

Chairperson Gale said that only the Pardons Board had the power to set aside convictions. Counsel Widger noted that this was not a pardon. The Order stated that the conviction was nullified, and all civil disabilities and disqualifications shall be removed. Counsel Widger noted there was an inconsistency in the law regarding similar situations. The State Constitution stated that only the Pardons Board could restore civil rights, but the law said the courts could set aside convictions and restore civil rights. In an Attorney General opinion, it was determined that the legislative branch could not give the judiciary branch that power. If all this information was taken in context, Counsel Widger=s conclusion was that court had the authority to set aside a conviction. The person could then get the record expunged. If it involved a felony conviction, the court could not restore civil rights. Ms. Wegner needed to go to the Pardons Board to get her civil rights back. Chairperson Gale said he was not convinced, and felt that the Commission needed to ask the Attorney General for an opinion. This discussion had come up at the Pardons Board, and they had determined that setting aside a felony could only be done by the Pardons Board. The courts did not have the constitutional authority to do so. Counsel Widger noted that the Order did not restore her civil rights, and setting aside convictions was a separate issue. Chairperson Gale noted that, if the conviction was wiped from the record, then there was no conviction, so the civil rights were restored automatically. The Attorney General argued that only the Pardons Board had this power. Counsel Widger noted that the Orders were worded incorrectly, like this one, which was the reason the Attorney General had commented. The Attorney General had not commented on the court=s power to set aside convictions, or to expunge them from the record. In Counsel Widger=s opinion, the courts could set aside convictions without restoring civil rights.

Counsel Widger said she would ask Lynn Melson at the Attorney General=s office regarding the current opinion on setting aside convictions.

Director Tyrrell reported that it was the Commission=s long-standing practice to not give out residence addresses by phone or on the website, and to only give them if a formal public information request was received. Companies subscribed to the passing list, which contained applicant residence addresses, since that was the only address the Commission had for applicants. When the test was given monthly, there was a natural cutoff for sending out the passing list. Now that the test is given daily, there is no cutoff. It would make sense to put applicant information on the website, so that companies could search by applicant status, and contact applicants prior to passing. It would cost $650 to set up the capability. Director Tyrrell wanted the Commission to determine whether to make residence address information available on the website.

Chairperson Gale asked if all applicants= addresses would be shown. Director Tyrrell said yes, for every salesperson or broker applicant. Commissioner Wiebusch asked if that would include current licensees. Deputy Director Hoffman noted that some licensees had specifically requested and given permission to use their home address as their business address, and in those instances, the home address would be shown. Director Tyrrell noted that the website did not currently contain any residence address information. Once the Commission allowed home addresses to be disclosed, that would also show on the website if that was the licensee=s contact address. Chairperson Gale asked if written consent was needed to use the residence address. Deputy Director Hoffman noted that the software defaulted to the business address unless the licensee specifically requested otherwise. Most of time the request was made in writing, but it may not have been in 100% of the situations.

Director Tyrrell announced that Michael Poskochil of Lincoln was appointed to fill the Commission=s salesperson member position, which is currently held by Joan Nigro, effective July 23, 2002. Director Tyrrell also reminded the Commissioners to keep the night of August 21 open for Commissioner Nigro=s retirement party.

Commissioner Wiebusch noted that this was Commissioner Nigro=s last official meeting, and thanked her for her commitment and the time she had given to the Commission. Commissioner Nigro thanked all the current and past Commissioners and staff, and noted that she had recently been appointed to the Omaha Housing Authority.

Guests Signing the Guest List
Jerry Ahlvers, Nebraska Realtors7 Association, Omaha and Lincoln
JoAnn Grennan, CBSHOME, Omaha
Harding Collis, NP Dodge, Omaha
Beth Lube, Re/Max Real Estate, Omaha