NEBRASKA REAL ESTATE COMMISSION

March 5, 2003

Staybridge Suites                         Staybridge Room                         Lincoln, NE


Opening

Acting Chairperson Wiebusch convened a meeting of the Nebraska Real Estate Commission at 9:01 a.m. on March 5, 2003, 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 Commissioners Moline and Strand, who were excused until they arrived, and Chairperson Gale, who was absent and excused. Also present were Director Les Tyrrell, Deputy Director for Education Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, was present for the stipulation and consent orders and the hearing.

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 Wiebusch reported that all Commissioners had been notified of the meeting simultaneously, in writing, and that a proposed Tentative Agenda accompanied the notification.

Acting Chairperson Wiebusch pointed out to those in attendance that a Public 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 Wiebusch asked that guests sign the guest list.

Director Tyrrell noted that Agenda Items 14h and 15c had been added since the Tentative Agenda was mailed to the Commissioners.

Director Tyrrell noted that a salesperson applicant had requested an Informal Special Appearance, and asked if the Commission wanted to add it as an Emergency Agenda Item, since it was requested after the Commission=s three-day cutoff. A motion was made by Johnson and seconded by Shepard to add the Informal Special Appearance as an Emergency Agenda Item. Motion carried with Johnson, Poskochil, Shepard, and Wiebusch voting aye, and with Moline, Strand, and Gale not participating or voting, being absent and excused.

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

Minutes of January 29, 2003

The minutes of the Commission meeting held on January 29, 2003, were considered.

After review, a motion was made by Shepard and seconded by Poskochil to approve the minutes as presented. Motion carried with Johnson, Poskochil, Shepard, and Wiebusch voting aye, and with Moline, Strand, and Gale not participating or voting, being absent and excused.

Receipts and Expenditures Report for January

Director Tyrrell presented the Receipts and Expenditures Report for January. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell noted that Receipts Category 9131, Sale of Surplus Property, showed a large payment for the sale of old computers and monitors. Expenditures Category 4211, Postage Expense, included the cost of mailing renewals, brochures, and both manual updates; Category 4212, Communication Expense, included bills for November and December; Category 4271, Repair and Maintenance of Office Equipment, included refinishing storage cabinets and repairing the fax machine; Category 4274, Repair and Maintenance of Data Processing Equipment, was for a laptop repair; Category 4311, Office Supplies Expenditures, included bills for September and November, because the September payment was held due to problems with obtaining credit for returned merchandise; Category 4491, Other Operating Expense, was higher than anticipated because of returned renewal checks; and Category 4721, Commercial Transportation, included airfare for ARELLO meetings.

The Cash Fund Balance as of January 31, 2003, was $863,202.38, which compared to a Cash Fund Balance of $733,773.65 on January 31, 2002.

Commissioner Poskochil asked about the increase from a year ago in Category 4421, Other Contract Services, which was noted on the back page of the report. Director Tyrrell said that expenditure category included payments to First National Bank and Nebrask@ On-Line for credit card processing, and the increase was primarily due to increased usage in the office. Credit card usage was not increasing as rapidly as had been anticipated.

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

Renewal Report

Director Tyrrell presented a Renewal Report, which showed renewals as of February 27, 2003. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell noted that the percentage of renewed licenses was up slightly.

No action was necessary on this report.

Specialized Registrations

There were no Specialized Registrations to report.

Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other Jurisdictions Report

Director Tyrrell presented for ratification the Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other Jurisdictions Report, a copy of which is attached to and made a part of these minutes.

After review, a motion was made by Johnson and seconded by Poskochil to ratify issuance of the licenses as set forth in the report. Motion carried with Johnson, Moline, Poskochil, Shepard, and Wiebusch voting aye, and with Strand and Gale not participating or voting, being absent and excused.

January and February Examination Reports

Director Tyrrell presented for ratification the January and February Examination Reports, copies of which are attached to and made a part of these minutes.

After review, a motion was made by Shepard and seconded by Poskochil to ratify the January and February Examination Reports for the purpose of issuing licenses. Motion carried with Johnson, Moline, Poskochil, Shepard, and Wiebusch voting aye, and with Strand and Gale not participating or voting, being absent and excused.

Real Estate Education Matters

Pre-License Education Instructor Approval

Director Tyrrell presented for ratification the Pre-License Education Instructor Approval Report, a copy of which is attached to and made a part of these minutes.

Continuing Education Activity Approval

Director Tyrrell presented for ratification the Continuing Education Activity Approval Report, a copy of which is attached to and made a part of these minutes.

Continuing Education Instructor Approval

Director Tyrrell presented for ratification the Continuing Education Instructor Approval Report, a copy of which is attached to and made a part of these minutes.

Continuing Education Activity Rejection

Director Tyrrell presented for ratification the Continuing Education Activity Rejection Report, a copy of which is attached to and made a part of these minutes. This report was for informational purposes only.

After discussion, a motion was made by Moline and seconded by Shepard to ratify the first three reports. Motion carried with Johnson, Moline, Poskochil, Shepard, and Wiebusch voting aye, and with Strand and Gale not participating or voting, being absent and excused.

Deputy Director Hoffman reported that Western Nebraska Community College had conducted a satellite downlink class, with a live site in Scottsbluff and two remote sites. The activity should have obtained certification from ARELLO, because it was offered in a distance education format. Officials at the college said they were unaware of the requirement because of staff turnover, even though the requirement was in the Rules and Regulations, and had been the subject of an Instructor Development Workshop and various communications since 1999. Deputy Director Hoffman gave them copies of all documentation regarding distance education. Deputy Director Hoffman also sent them a certified letter to cease and desist distance education. The college is exploring ARELLO certification, and will not offer the activity in distance education format again until they have achieved certification. Deputy Director Hoffman and Director Tyrrell had discussed the situation and decided to allow credit for the activity, because they did not want to penalize the applicants involved, some of whom were already licensed. Because of the interaction, Deputy Director Hoffman was invited to a community college meeting, and met with administrators of all the community colleges in Nebraska. Deputy Director Hoffman explained the ARELLO distance education certification program, and the administrators are thinking about forming a consortium for certification of televised classrooms, to share expenses. There was one bad outcome, when Deputy Director Hoffman found out that, in addition to Scottsbluff, MidPlains Community College in North Platte had offered a satellite downlink course. The administrator understands the requirements now, and has also gotten a certified letter to cease and desist distance education. Deputy Director Hoffman appreciated that students are few, and that their philosophy was to make education available all across the state.

Commissioner Strand asked for clarification that the students involved received credit. Deputy Director Hoffman said yes, that she had discussed the situation with Director Tyrrell, and the students were not guilty of any wrongdoing.

Commissioner Moline asked that, if certification was not pursued, Deputy Director Hoffman find out why. Deputy Director Hoffman said she would keep in close contact with the group.

Consideration of Request to Expand Required Subject Matter Topics

Deputy Director Hoffman presented an exhibit regarding a request from the Nebraska REALTORS7 Association to expand required subject matter topics, a copy of which is attached to and made a part of these minutes.

Lisa Betts, representing the Nebraska REALTORS7 Association, said the suggestion emanated from the language in the Rules and Regulations regarding R courses, which included federal or state laws pertaining to real estate. Ms. Betts thought that finance was too broad a subject area to add to R subject matter, but thought that knowledge of state and federal loan programs should be added. Agents needed accurate knowledge of the requirements and regulations of state and federal loan programs, which led to the affordability issue. Ms. Betts said agents needed to be well-versed in those programs.

Commissioner Wiebusch asked if there was a record of attendance on those classes, to see if licensees felt they should be well-versed in the subject. Deputy Director Hoffman said she did not have the numbers at hand, but could get them. Deputy Director Hoffman said the Commission would not find this many courses in a subject area if they were not well-attended. It was safe to say that a large majority of licensees took a finance course almost every two years. Licensees knew they were the first line and needed the information, and that the information changed, so licensees knew they needed the classes. A great many availed themselves of the subject matter, and they were fairly popular courses.

Commissioner Poskochil asked if approving the 30-40 classes listed for R subject matter would keep licensees from taking courses in the currently-approved R subject matter. Commissioner Poskochil questioned whether finance issues rose to the level of the other approved subject matter.

Commissioner Moline noted that Ms. Betts was not asking for all finance classes to be approved, just FHA/VA/NIFA loan programs, and he was not sure that subject matter rose to that level. Licensees should have loan officers who specifically know that information. The loan programs could not be covered in a 3-hour course, because there were huge books on them. Commissioner Moline asked Ms. Betts why she thought this class rose to the R designation. Ms. Betts said that agents are the front line, and any real estate agent must disclose that the buyer needed to consult with a loan officer. Agents were often in a position to disclose that information, and there were legal and financial ramifications that the information they dispensed was valid. Commissioner Moline noted that employing brokers educated their affiliated licensees on the programs. Commissioner Moline said that the subject did not rise to that level for him. License law was vital to his business. For lending, there were experts, i.e. loan officers, and it was his job to get buyers to an expert. It was not the licensee=s job to know.

Ms. Betts said that the course affected housing affordability, because if licensees had knowledge of available programs, they could counsel prospective buyers on their options. Licensees should defer to a loan officer, but it was important to know exactly what the requirements were before they opened their mouths.

Commissioner Poskochil asked if the list in the exhibit was added to give a general idea of the classes that would be affected, or if the R designation would be limited to FHA/VA/NIFA classes. Deputy Director Hoffman said the dilemma was that the designation would affect all finance courses, because you could not have a good finance class that would not cover FHA/VA/NIFA. All finance courses would be approved for R designation retroactively. Commissioner Poskochil asked if it was possible to separate out the FHA/VA/NIFA classes. Deputy Director Hoffman said that was how broad the definitions were currently, but they could get more broad.

Commissioner Moline noted that the Commission could approve one class for R status, technically. Deputy Director Hoffman said that subject matter categories had been approved in the past. Director Tyrrell said he would not recommend doing approvals class-by-class, because the Commission would find that every month there would be a request to approve a particular class for R status.

Commissioner Strand asked for clarification on whether this subject matter would be included in all R courses in order for them to continue to be R courses, or if the courses listed would become separate R courses. Deputy Director Hoffman said it would be the latter, and that the Commission would be endorsing that area of study. Licensees had to take 3 hours in R subject matter every 2 years. Commissioner Strand agreed that licensees were the front line, and it was important for people to have accurate information early on, but he was struggling with whether it rose to the level of an R course.

Commissioner Poskochil noted that the subject matter was available now, and questioned the need for it to be a 3 hour R course. Commissioner Moline said that R courses are sometimes dry material that licensees did not like to take. Commissioner Poskochil said that finance was an integral part of his job every day, but the other R courses were sufficient. He would hate to have licensees take an R course in finance, and exclude the other R material for it.

Commissioner Shepard asked if most licensees were taking courses in it anyway. Deputy Director Hoffman said yes, and she did not think the Commission needed to encourage licensees to do it.

After discussion, a motion was made by Moline and seconded by Shepard to not expand required subject matter to include finance or federal and state loan programs.

Commissioner Johnson asked Ms. Betts if there had been a groundswell of support for this. Ms. Betts said she had been horrified to find out that some licensees did not know about NIFA. The R designation would encourage them to educate themselves. Financing was the backbone of the real estate transaction. Some licensees did not know how a VA loan operated. The R designation would make the information available to them in an enticing way.

Commissioner Johnson said that rules, regulations, and statutes were very important, but consumer issues should concern the Commission too. He could see both sides of the issue.

A vote was taken on the pending motion. Motion carried with Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, with Johnson voting nay, and with Gale not participating or voting, being absent and excused.

Deputy Director Hoffman said she would encourage providers to offer more courses in affordable financing. Commissioner Wiebusch recommended that the course be emphasized in the Nebraska REALTORS7 Association newsletter. Ms. Betts said that finance was a huge subject area, and it would become a nightmare to pick and choose which courses should receive the R designation among those courses.

Commissioner Moline asked Mr. Neilan to check with the brokers at an upcoming meeting to see if there was a concern in this area, and noted that brokers needed to get their people trained. Ms. Betts said she was seeing a need in small brokerages, not large ones.

Director Tyrrell asked Deputy Director Hoffman to specifically encourage FHA/VA/NIFA, courses when talking with providers and instructors. He also noted that the Nebraska REALTORS7 Association could offer them at conventions. Ms. Betts said it was not a problem to offer the course, the problem was getting the people there, because it was kind of a yawn.

2003 Instructor Development Workshop

Deputy Director Hoffman noted that the Commission generally offered an Instructor Development Workshop every two years, for prelicense and continuing education instructors. Attendance was not mandatory, and was consistently 25-30 instructors. The input she got from providers and instructors was that they wanted to get back to basics. The last workshop was on technology in the classroom, the previous one was on the ARELLO distance education certification program, and the one prior to that was on ethical decision-making and fair housing. It had been a while since the topic of teaching adults, and techniques to keep it interesting, was offered. Deputy Director Hoffman proposed bringing in Diane Simpson, who was a National Association of REALTORS7 instructor evaluator, a Distinguished Real Estate Instructor, and REEA past president. Feedback was very positive from the 1995 seminar which she taught. Ms. Simpson was available during the last week in April, and two schools had offered free use of their facilities for the workshop. Deputy Director Hoffman would need discretion to decide whether to have the workshop in Lincoln or Omaha, depending on flight availability and other factors. Deputy Director Hoffman estimated that the expenses would be approximately $3000.00, which had been budgeted.

Commissioner Moline asked if the instructor could stay another day so that a class could also be offered in western Nebraska, and if Deputy Director Hoffman thought we might gain from having something in the western half of the state. Deputy Director Hoffman said there was usually good attendance in Lincoln and Omaha. She had been told they preferred to come to Lincoln, because they were not comfortable driving in Omaha. Deputy Director Hoffman noted that there were not as many instructors out west. Commissioner Moline asked that Deputy Director Hoffman bring back figures on past attendance of instructors from west of Grand Island. Deputy Director Hoffman said she would bring the information to the next meeting. Commissioner Strand asked that the figures be done as a percentage of all instructors who might have attended. Deputy Director Hoffman said that instructors tended to become inactive, while technically still approved. She could try to find out how many instructors were on the faculties as a whole, and do it that way.

Commissioner Poskochil asked if it would be a two-day seminar. Deputy Director Hoffman said it would last one day. Commissioner Poskochil asked who would be invited. Deputy Director Hoffman said that information would be mailed to approved instructors and also to school administrators, to reach those interested in becoming instructors. Commissioner Poskochil asked how many invitations would be mailed. Deputy Director Hoffman estimated that it would be sent to approximately 120-150 people, and she would rely on the providers to get the information to potential instructors. Most of those receiving the invitations were not active, and some taught maybe 1-2 prelicense classes a semester. Commissioner Poskochil asked what type of information would be presented. Deputy Director Hoffman said she had asked Ms. Simpson to address basic teaching methodology, guidelines for teaching adults, writing learning objectives and reaching them, teaching to mastery, specific tools and techniques for specific topics in real estate, and maintaining a good learning environment.

Susan Geschwender said the past seminar was very good, and contained practical, usable information. She had made several changes right away, based on the information presented.

Director Tyrrell noted that, as part of the workshop preparation, Deputy Director Hoffman could find out if there was enough interest to do a workshop in western Nebraska. Commissioner Moline said the Commission could give Deputy Director Hoffman and Director Tyrrell the authority to make that decision, and the necessary expenditures. The state needed to grow good leaders, and there was a void in western Nebraska. The Commission needed to support them in developing leaders and instructors, and it did not help to always have things in Lincoln or Omaha.

Commissioner Poskochil asked if those who would attend a seminar in western Nebraska would have come to Lincoln. Director Tyrrell said it would be half or a third of the Lincoln attendance. Commissioner Poskochil agreed that the Commission should explore having an additional session in western Nebraska. Commissioner Moline said it would be worthwhile, even if there were only 3 or 6 attendees, and the seminar was expensive.

A motion was made by Moline and seconded by Poskochil to approve the expenditures for the Instructor Development Workshop, to give Deputy Director Hoffman and Director Tyrrell latitude on where it would be held, and to approve holding a session in western Nebraska if there was sufficient interest.

Commissioner Johnson asked if the workshop was usually held every couple of years, and was well-attended. Deputy Director Hoffman said yes.

Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Deputy Director Hoffman distributed new Consumer Guides to the Commissioners. Deputy Director Hoffman noted that the Commission website was more consumer-friendly now. Staff are researching other websites to access through ours, and the Department of Economic Development website will provide access to websites for counties and cities in Nebraska. Deputy Director Hoffman will put an article in the Commission Comment regarding the Consumer Guides, and will note that the consumer section of the website is in progress.

Ms. Betts requested that the trademark 7 be included after each use of the word REALTOR7 in the next printing. Acting Chairperson Wiebusch asked how many were just printed. Deputy Director Hoffman said 5000. Acting Chairperson Wiebusch asked that the guides also be distributed at the Nebraska REALTORS7 Association convention.

Commissioner Poskochil suggested that the next time the consumer guides were printed, the website address be in bold or on the front. Glossary terms should be added regarding types of surveys. Seller Property Condition Disclosure Statement should be identified in the glossary. Home inspector terminology should be explained, with their function and why homeowners might want one. Also, references should be made to homeowners associations, dues, and restrictions. Deputy Director Hoffman said she had made notes regarding the suggestions. The website version could be adjusted immediately, after the language was approved by the Commission. Deputy Director Hoffman will bring text change suggestions back, which would be put in the next printing and changed immediately on the website.

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 #2002-039

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 Shepard that the Commission file a complaint on its own motion on all the violations alleged on pages 4 and 5 of the report. Motion carried with Johnson, Moline, Poskochil, Shepard, and Wiebusch voting aye, and with Strand and Gale not participating or voting, being absent and excused.

Item B Complaint #2002-041 - Steven H. Voss vs. Gary Edward Tusa

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 Poskochil and seconded by Shepard that the complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Poskochil, Shepard, and Wiebusch voting aye, and with Strand and Gale not participating or voting, being absent and excused.

Item C Complaint #2002-042 - Kevin & Wendy Reed vs. Michael W. Kircher & Valerie D. Kircher

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 Poskochil and seconded by Moline that the complaint be dismissed without prejudice against both respondents, and that Director Tyrrell send a letter of admonition regarding the late written agreement to dual agency. Motion carried with Johnson, Moline, Poskochil, Shepard, and Wiebusch voting aye, and with Strand and Gale not participating or voting, being absent and excused.

Item D Complaint #2002-043 - Vicki & Mark Hoyt vs. Geri Ann Debolt

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 Poskochil and seconded by Strand that the complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Item E Complaint #2002-045 - Ronald & Patricia Butler vs. T. Kirk McClane

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 Poskochil that the complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Item F Complaint #2002-049 - Mark Scheetz vs. Mark R. Wilson

Prior to discussion of this matter, Commissioner Johnson recused himself, thereby nullifying any potential conflict of interest. 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 Poskochil and seconded by Shepard that the complaint be dismissed without prejudice. Motion carried with Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, with Johnson not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Gale not participating or voting, being absent and excused.

Presentation of Stipulation and Consent Orders

Complaint #2002-016, Commission vs. Steven Robert Evers

Prior to discussion of this matter, Commissioner Johnson recused himself, thereby nullifying any potential conflict of interest. Counsel Widger presented a stipulation and consent order in the matter of Complaint #2002-016, Commission vs. Steven Robert Evers. A copy of said order is attached to and made a part of these minutes. Mr. Evers was present with his counsel, Mike Matukewicz and John Liakos of Omaha.

Counsel Widger reviewed the circumstances involved and noted the provisions of the order, which had been signed by Mr. Evers. The order specified a censure of Mr. Evers= broker=s license and three additional hours of continuing education in agency.

Counsel Matukewicz said Mr. Evers showed homes for Monarch Homes, and he remembered having completed the brochure that day. The complainants said they did not. Mr. Evers ended his relationship with Monarch Homes, left all his paperwork at the model home, and thought his paperwork was discarded. He could not prove he had a signed brochure. Counsel Widger said that Monarch Homes had not provided any documentation. They said that documentation was left in the model home, but did not know what happened to it. The sale did not close.

Commissioner Moline said he did not like the wording of the stipulation and consent order, because the respondent did not admit guilt.

After discussion, a motion was made by Strand and seconded by Poskochil to enter into the order as presented. Motion carried with Poskochil, Shepard, Strand, and Wiebusch voting aye, with Moline voting nay, with Johnson not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Gale not participating or voting, being absent and excused.

Hearings

The hearings scheduled for this meeting were continued.

Complaint #2002-017, Commission vs. Nathan P. Dodge Jr.

Prior to discussion of this matter, Commissioner Johnson recused himself, thereby nullifying any potential conflict of interest. Counsel Widger presented an exhibit regarding Complaint #2002-017, Commission vs. Nathan P. Dodge Jr. A copy of said exhibit is attached to and made a part of these minutes.

Counsel Widger reported that this was a complaint filed on the Commission's own motion, and that additional information was gathered during the course of discovery that may have an impact on the complaint. The information and documentation were about the NP Dodge policy and procedure for handling trust account funds, and the deposition of the potential buyer. The Commission questioned Counsel Widger about the terms of the purchase agreement, the potential buyer's understanding of the terms of the agreement, the refundability of the earnest money, the commencement of construction, and the potential buyer's receipt of the documentation.

A motion was made by Moline and seconded by Strand to dismiss the complaint against Mr. Dodge. Motion carried with Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, with Johnson not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Gale not participating or voting, being absent and excused.

Informal Special Appearances

There were no informal special appearances scheduled for this meeting.

The Commission addressed the Emergency Agenda Item which they had added to the agenda, Abelardo Xavier Delgado=s informal special appearance.

Director Tyrrell presented an exhibit which included Mr. Delgado=s salesperson application form, and additional information Mr. Delgado submitted regarding his conviction.

Mr. Delgado stated that his conviction in 1991 was for unlawful taking of a computer valued over $1000, which was a Class III felony. Mr. Delgado was not given any jail time, but was placed on probation in Douglas County, which he completed satisfactorily. His voting rights had been reinstated.

Commissioner Strand asked from where the computer was taken. Mr. Delgado said it was from Stockade Restaurant. Commissioner Strand asked if Mr. Delgado had been working there. Mr. Delgado said no.

Commissioner Moline asked if it was a case of breaking and entering. Mr. Delgado said yes. Commissioner Moline asked if Mr. Delgado had been in any trouble since. Mr. Delgado said no.

Commissioner Strand asked if Mr. Delgado had made restitution or given back the computer. Mr. Delgado said they took it back.

Commissioner Poskochil asked what was Mr. Delgado=s situation at the time, and why he took the computer. Mr. Delgado said that, at that time, he was drinking heavily, and made a bad judgment while under the influence. Commissioner Poskochil asked where Mr. Delgado was employed at that time. Mr. Delgado said he had two jobs - full-time at American Diaper Service, and part-time at Food-For-Less stocking shelves.

Commissioner Moline asked what Mr. Delgado had done after the incident to address his alcohol problem. Mr. Delgado said he joined Alcoholics Anonymous. Commissioner Moline asked what Mr. Delgado=s habits were today. Mr. Delgado said he completed the Alcoholics Anonymous program at Immanuel Hospital, and had no further alcoholic incidents. He no longer drinks.

Commissioner Moline asked if Mr. Delgado had talked to any brokers in the area. Mr. Delgado said yes. Commissioner Moline asked if any had expressed an intention to hire Mr. Delgado. Mr. Delgado named three brokers with which he had interviewed.

Commissioner Strand noted that Mr. Delgado=s situation met the extraordinary circumstances provision of the Commission=s guidelines, in that it was 12 years since the conviction and Mr. Delgado=s civil rights had been restored.

A motion was made by Strand and seconded by Shepard to allow Mr. Delgado to sit for the examination, and to have a license issued upon passing.

Commissioner Poskochil offered a friendly amendment to make it conditional to a criminal history background check, to ensure that the information Mr. Delgado provided was correct and complete. The friendly amendment was accepted by the mover and seconder.

Commissioner Johnson asked Mr. Delgado at what point he decided real estate was a good career course for him. Mr. Delgado said he worked in Waverly for 4 years as a machinist at Crane. He was laid off there, and was collecting unemployment while seeking employment. At the holidays he decided to take the classes to start his new career. The manufacturing sector had been down since 9-11, and there was not much future there. He had completed the required classes. Commissioner Johnson asked if Mr. Delgado enjoyed the classes. Mr. Delgado said yes.

Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Consider Revised Director Evaluation Form

Director Tyrrell presented an exhibit which consisted of the proposed revised Director Evaluation Form. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that the exhibit had been revised to include suggestions from the Department of Administrative Services Personnel Division. Commissioners could still send in the previous version of the form to Shelley at the Secretary of State=s office, and she would use the new form to report the results to State Personnel.

Commissioner Moline asked if question 4 should be made into two questions, since consumers and the industry were different groups. Commissioner Poskochil agreed. Director Tyrrell said he assumed it would not be a problem to make it into two questions. Commissioner Strand thought the question as written would apply to both constituencies in complaints. Commissioner Moline said he had thought consumers would involve complaints, and the industry would be questions on the law.

After discussion, a motion was made by Moline and seconded by Johnson to approve the usage of the new Director Evaluation Form as presented. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Legislative Matters

Director Tyrrell reported that LB 60, which would require criminal history record checks, was on Enrollment and Review Final status. LB 61, which would revise the Retirement Communities and Subdivisions statutes, would be first on the Select File list the next time it was considered. An actuary had recommended the technical change noted in Exhibit 14b. Director Tyrrell had not heard back from any of the three individuals who were interested in the language change he had reported to the Commissioners since the last meeting.

Director Tyrrell also reviewed other bills of interest to the Commission, including the proposed amendment to LB 743 as set forth in Exhibit 14h.

No action was necessary on this report.

Information Matters

ARELLO Mid-Year Meeting - April 9-13, 2003 - Incline Village, Nevada

Director Tyrrell presented an exhibit which included information on the upcoming ARELLO Mid-Year Meeting. Chairperson Gale and Commissioners Poskochil, Wiebusch, Johnson, and Shepard were planning to attend with their spouses.

No action was necessary on this report.

Trust Account Examination Evaluation Report - Fourth Quarter 2002

Director Tyrrell presented the Trust Account Examination Evaluation - Fourth Quarter 2002 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. Director Tyrrell noted that examiners were available to attend sales meetings and answer questions. He had received good feedback on the new approach to examinations, from the examiners and from brokers.

No action was necessary on this report.

Errors and Omissions Insurance Loss Report - Fourth Quarter 2002

Director Tyrrell presented the Errors and Omissions Insurance Loss Report through December 31, 2002. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell noted that there was nothing unusual in the report.

No action was necessary on this report.

Future Meeting Dates

April 16-17, 2003 - Staybridge Suites, Lincoln

May 28-29, 2003 - Staybridge Suites, Lincoln

July 16-17, 2003 - Staybridge Suites, Lincoln

August 20, 2003 - Staybridge Suites, Lincoln

September 24-25, 2003 - Staybridge Suites, Lincoln

Recesses and Adjournment

Commissioner Moline was absent and excused until his arrival at 9:12 a.m.

Commissioner Strand was absent and excused until his arrival at 9:24 a.m.

At 10:10 a.m. on March 5, Acting Chairperson Wiebusch declared a brief recess, and reconvened the meeting at 10:22 a.m.

At 11:40 a.m. on March 5, there being no further business to come before the Commission, a motion was made by Strand and seconded by Moline that the meeting adjourn. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch 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 March 5, 2003, meeting of the Nebraska Real Estate Commission were available for inspection on March 19, 2003, 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 Realtors7 Association, Lincoln

Lisa Betts, Nebraska REALTORS7 Association, Lincoln

Susan Geschwender, Randall School, Omaha

Mark Leaders, CBSHOME, Omaha

Mike Matukewicz, for Steve Evers, Omaha

John Liakos, for Steve Evers, Omaha