Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:03 a.m. on September 24, 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. 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 order. Jim Titus, Special Assistant Attorney General and Counsel to the Commission, was present for the rule change hearing and the Time-Share Act discussion items.

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 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. Chairperson Gale asked that guests sign the guest list.

Director Tyrrell noted that agenda item 10a had been added since the tentative agenda was mailed to the Commissioners.

After review of the final agenda, a motion was made by Wiebusch and seconded by Strand to adopt the final agenda as presented. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

The minutes of the Commission meeting held on August 20, 2003, were considered.

After review, a motion was made by Moline and seconded by Johnson to approve the minutes as presented. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale abstaining, not having been present at the meeting.

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

Director Tyrrell noted that Receipts Category 475220, Promotional Land Registration, showed $5.00 submitted to complete a registration fee. Expenditures Category 521500, Publication and Printing, was over for the month because it included renewal envelopes and continuing education reminders; Category 527200, Repair and Maintenance of Motor Vehicles, included the cost of repairing two permanently-assigned vehicles, which were vandalized in two different areas of town within about a month of each other; Category 527400, Repair and Maintenance of Data Processing Equipment, showed $1257.00 for 5-year warranties on the new examiner laptops, which had to be shown in this category due to the NIS system, rather than being included in the purchase price; Category 547100, Educational Services, was over because 108 examinations were administered during July; Category 555200, Software/New Purchases, were for a new antivirus program for the office, which was purchased with the savings on the new laptops.

The cash fund balance as of August 31, 2003, was $585,675.22, which compared to a cash fund balance of $538,368.28 on August 31, 2002.

After discussion, a motion was made by Moline and seconded by Wiebusch to file the August Receipts and Expenditures Report for audit. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell presented the 2003-2004 Fiscal Year Monthly Budget Spread. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell reviewed the budget spread changes, and noted that changes had been necessary due to encumbrances from fiscal year 2002-2003. The specific encumbrances were shown on a separate page for ease of reference. Under the NIS system, the encumbrances could not be shown until September. The budget spread was also adjusted for the late mailing of 2004 renewals and the expenditures for the laptop warranties and antivirus program.

No action was necessary on this report.

There were no specialized registrations to report.

Deputy Director Hoffman 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 Moline and seconded by Strand to ratify issuance of the licenses as set forth in the report. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Deputy Director Hoffman presented for ratification the August Examination Report, a copy of which is attached to and made a part of these minutes.

Deputy Director Hoffman noted that she will be attending the October 6 meeting with AMP.

After review, a motion was made by Moline and seconded by Wiebusch to ratify the August Examination Report for the purpose of issuing licenses. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

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

Deputy Director Hoffman noted that one activity dealt with diversity issues such as using licensed translators. Commissioner Moline asked Deputy Director Hoffman to let the Commissioners know when and where the activity would be offered.

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

After review, a motion was made by Wiebusch and seconded by Moline to ratify both reports. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

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 #2003-019 - Angela S. Melancon vs. Carolyn Lee Carnley

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 complaint be dismissed, and that a letter of admonishment be sent to the respondent regarding the $2.00 overcharge on the monthly commission. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Item B Complaint #2003-028 - Arlan Boelter vs. Terry Keith Held

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

Item C Complaint #2003-031 - Phil & Laurie Janulewicz vs. Robert J. Daniel

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

Item D Complaint #2003-032 - Judy Pittack vs. John Walter Hammon

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

Item E Complaint #2003-034

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 Johnson that the complaint be dismissed. Motion failed with Johnson and Moline voting aye, and with Poskochil, Shepard, Strand, Wiebusch, and Gale voting nay.

A motion was made by Strand and seconded by Poskochil to delay a decision pending further investigation. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

The Commissioners specified the information they wanted Deputy Director Mayrose to obtain: whether all the lot prices went up at that time, or if this lot price went up because of the additional 6 feet of dirt; were the lots initially platted, then improved with dirt, then the price changed; were there any walkout lots in the area; what was the street level compared to the grade level, and was the 6 feet of dirt was added at the curb; pictures of the lot, from the back toward the front, and from the front toward the back; on what basis the licensee started advertising walkout lots; had the lots been platted, the street and grades established, and the dirt added later; were streets and improvements in place prior to the dirt being added; and whether the builder had done anything to change the grade since building began.

Item F Complaint #2003-036 - Tanya Berger vs. H. James Merrigan

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

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 #2003-017, Commission vs. Vincent Muniz, Sr. A copy of said order is attached to and made a part of these minutes. Mr. Muniz was not present.

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

Director Tyrrell noted that two comments had been received regarding the rule changes. There was one telephone call from a person who said that the changes were fine, and one inquiry asking if Section 5 was deleted due to statutory changes, which was the case.

Director Tyrrell reviewed the amendments set out in Title 300, Chapter 1. Director Tyrrell noted that a correction needed to be made to the effective date, which will be February 29, 2004.

Chairperson Gale asked if there were any comments from the public. There were none.

A motion was made by Moline and seconded by Wiebusch to change the effective date to February 29, 2004. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

A motion was made by Moline and seconded by Shepard that the Commission adopt Title 300, Chapter 1, as amended, and to direct staff complete the filing process for the proposed rule changes. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

A motion was made by Wiebusch and seconded by Johnson that the Commission authorize staff to make any non-substantive grammatical, spelling, or punctuation corrections needed. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Chairperson Gale declared the rule hearing concluded at 9:55 a.m.

Chairperson Gale reviewed the procedure for informal special appearances.

Commissioner Moline said that he had assumed that, if an applicant made a special appearance and got licensed, they were good to go. Commissioner Moline wondered if requiring a reappearance for a broker license was a requirement that the Commission would want to make for certain individuals, on a case-by-case basis. The Commission could decide at the first special appearance whether they wanted to see the applicant again if he or she applied for a broker license.

Commissioner Poskochil noted that there had been previous appearances by applicants with similar backgrounds, and asked if the Commission was opening itself up to allegations of discrimination. Director Tyrrell noted that criminal history background checks were only required for those who applied after the statutory change, and did not apply to those already licensed.

After discussion, a motion was made by Moline and seconded by Shepard to allow Mr. Abboud to sit for the salesperson examination, and to have a license issued upon passing; and that if Mr. Abboud applied for a broker license, he would have to reappear before the Commission.

Commissioner Moline offered a friendly amendment to his motion, to add the conditions that Mr. Abboud notify his employing broker of his criminal history, and that Mr. Abboud immediately notify Commission staff if he had any further contact with the law which could result in jail time during his first two years of licensure. The friendly amendment was accepted by the seconder, Commissioner Shepard.

Commissioner Johnson noted that a couple of the speeding convictions were for going 15 mph over the speed limit on the interstate, which was really moving. Mr. Abboud said there was a lot of construction around Sapp Brothers, and the speed zones changed every few feet, so you did not know what it was. He lives right by the construction. Mr. Abboud noted that one ticket said he got probation, but it should have been dismissed, and he did not know why it had not been. Commissioner Johnson said he just did not want Mr. Abboud to take someone down the interstate at 90 mph. Mr. Abboud said he would not.

A vote was taken on the pending motion. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Poskochil voting nay.

Director Tyrrell noted that the May 2001 conviction for driving under the influence (DUI) was the only criminal conviction that Mr. Kuehn had reported on his salesperson application. Mr. Kuehn failed to report the additional criminal convictions, including two prior DUI convictions, which were discovered by staff investigation. All the convictions were considered incidents or misdemeanors, not felonies. Commissioner Moline asked for clarification that the application question asked for all convictions, not just felonies. Director Tyrrell said that was correct.

Chairperson Gale reviewed the procedure for informal special appearances.

Chairperson Gale asked if Mr. Kuehn was currently driving under a court permit. Mr. Kuehn said he had the option to get a work permit, but had not done it yet because he had not needed it yet, because his job was near his home. Mr. Kuehn was waiting to see if he needed it for real estate, because the work permit application asked for the specific position for which it was needed. It would not be approved if the work site was close to his residence. Commissioner Moline asked if Mr. Kuehn had been driving while suspended. Mr. Kuehn said no.

Commissioner Poskochil asked how Mr. Kuehn was currently getting around. Mr. Kuehn said he took taxis, or got a ride from a mutual friend. He just traveled when he needed to, and was saving his money up for a car and insurance. Commissioner Poskochil asked how Mr. Kuehn had gotten to the Commission meeting. Mr. Kuehn said he had his lady, Angie, bring him up here. Commissioner Poskochil questioned how Mr. Kuehn could possibly be allowed to drive. Mr. Kuehn said he did not see a problem. The DMV (Department of Motor Vehicles) had sent him the permit form, and he just had to fill it out and send it in. It was approved in advance, so Mr. Kuehn just had to do it.

Commissioner Poskochil asked about the multiple firearms charges from 1999. Mr. Kuehn said that, basically, he was 18 and was working for hourly wages doing gutters. He was 18 years old and fascinated with firearms. An opportunity came up where he could get an old .22, like ladies had in their garters in the old Westerns. Mr. Kuehn was pulled over and was charged for it, but the gun was not loaded. All the firearms charges were on the same date. Commissioner Poskochil noted that was the same date Mr. Kuehn was charged with a DUI, minor in possession, and disorderly conduct. Commissioner Moline said that was not a good day for him. Mr. Kuehn said that was just another example of why he did not need to include a lot of alcohol in his daily activities.

Chairperson Gale asked if Mr. Kuehn was sure there was not 15-year suspension. Mr. Kuehn said there was not, and all his court papers said he was eligible to get his license back in December 2004.

Commissioner Wiebusch told Mr. Kuehn he had a hurdle to overcome with her, since he had no license, and there was a great deal of responsibility when licensees had people in their cars. Mr. Kuehn said it was no secret that he had quite a bit of problems in the past. He was asking for a chance to turn his life around even more, and to get into something so he could afford the nicer things in life, take care of a family, and be the kind of man he wanted to be. Mr. Kuehn said he did not have anything to combat the license issue with. He could not change it, but he was very remorseful. He had changed and turned his life around, and was not making juvenile mistakes any more.

Commissioner Strand seconded the motion.

Mr. Kuehn said he was just always interested in real estate, with his uncle and grandfather in the business. He wanted to do pretty much whatever it took to take the real estate test, whether it was in November or in 6 months, because he could do something else in the meantime. Mr. Kuehn said he would do whatever it took to make the Commission comfortable with his getting a license.

A vote was taken on the pending motion. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Gale voting aye, and with Wiebusch voting nay.

Chairperson Gale instructed Mr. Kuehn to get the additional information as requested, and said the Commission would see him at the November meeting.

Chairperson Gale reviewed the procedure for informal special appearances.

Chairperson Gale congratulated Ms. Sabatka on turning her life around, and said it could have gone the other way. Ms. Sabatka was the kind of person that gave us hope, in the prison system, that people can turn their lives around. Chairperson Gale said he had no problem in terms of her personal history or conduct, but the question was that her 3-year supervised release would not be complete until 2004. Chairperson Gale asked for confirmation that she did not have to see her probation officer. Ms. Sabatka said no, he was located in Lincoln, and she had not seen him in 5 months. They had a very good rapport. Chairperson Gale said it was a fine letter on her behalf. Ms. Sabatka said he was a good man, and she was able to talk to him from the heart. Commissioner Shepard noted that it was rare to get a recommendation letter from a probation officer. Ms. Sabatka said it had been a hard lesson, but it needed to be that hard to wake her up.

Commissioner Poskochil asked if Ms. Sabatka was on supervisory probation until December 2004. Ms. Sabatka said yes. Director Tyrrell said he had confirmed that the supervised release was not probation, that it was less restrictive than probation, and that Ms. Sabatka did not have scheduled times to meet with her probation officer. Ms. Sabatka reported in by sending a letter, but it could be just a telephone call. She was on no restrictions, and it was considered to be less than probation.

Commissioner Poskochil asked if Ms. Sabatka had filed an application. Director Tyrrell said no, she was a potential applicant.

Commissioner Poskochil asked if Ms. Sabatka lived on her own in an apartment. Ms. Sabatka said yes, it was close to the Medical Center, because she had no vehicle at the time. She now has a vehicle that gets her around, and she was fully insured and everything, because it was very important to her to be accountable for her actions, and to not step out of line. Her landlord would be her employing broker. Ms. Sabatka had maintained her rent and bills, had been clearing up credit issues from the past, and this was just one more thing to clear up. She knew that if she worked hard, she could get over her past.

A motion was made by Strand to allow Ms. Sabatka to sit for the salesperson examination after making proper application, if no further items were discovered during the criminal history background search, and to have a license issued upon passing, with the conditions that Ms. Sabatka notify her employing broker of her criminal history, that the employing broker verify that notification to the Commission in writing, and that Ms. Sabatka immediately notify Commission staff if she had any further contact with the law which could result in jail time during her first two years of licensure. Chairperson Gale offered a friendly amendment that Ms. Sabatka be required to furnish final discharge papers to the Commission office when she completed her sentence. Strand accepted the friendly amendment, and Shepard seconded the motion as amended. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Counsel Titus presented an exhibit which consisted of forms used to register retirement subdivisions and communities. A copy of said exhibit is attached to and made a part of these minutes.

Counsel Titus noted that Commissioner Strand had requested that the forms be reviewed by the Commission.

Commissioner Strand asked if item 6 on Exhibit 13a, which asked for current audited financial statements of the developer, needed to be changed to conform with the current proposed changes. Counsel Titus said no, the Commission was now asking for audited financial statements as required under the new statute.

Commissioner Strand asked if it was conceivable that health care services would be offered, as listed in item 11 on Exhibit 13a. Counsel Titus said it was possible. If the services included assisted living, that would require Health and Human Services licensing. If it was just retirement living with a future upgrade discounted, that would need to be listed. An actuarial study was needed to prove that the money coming in would keep it going and cover costs. Health and Human Services licensing did not look at financial feasibility.

Chairperson Gale noted that the form read as if it would be a notarized statement, but did not require a notarized signature. Chairperson Gale said that some retirement communities would involve signatures from outside the state, which were not signed in Nebraska, and asked if there was any reason the form was not notarized. Counsel Titus noted that the signatures were previously notarized. Director Tyrrell asked Counsel Titus if all the retirement communities were in Nebraska. Counsel Titus said that all of them were in the state now, but it was possible that a retirement community could be from outside Nebraska. Director Tyrrell said the statement replaced the notary requirement and was based on electronic filing requirements. The current wording was developed by legal counsel. It had been changed because it was not possible to electronically notarize documents. All notarized forms were changed to non-notarized forms with similar language so that they could be submitted via the website. In the cases of promotional lands, time shares, subdivided lands, retirement communities, and campgrounds, electronic filing was not available because plats, architectural drawings, etc. had to be included in the filing. Those had downloadable forms, which were to be included with all the required documentation.

Chairperson Gale asked if it would be useful to require a printed name. Counsel Titus noted that there was a place in the paragraph above for a printed name, and said that most forms were either typed or printed.

Commissioner Wiebusch asked if the Commission needed to vote to change the renewal fee noted on Exhibit 13b. Director Tyrrell said it was not needed, because the fee would automatically change if the Title 300 amendments are approved by the Attorney General and the Governor.

A motion was made by Wiebusch and seconded by Shepard to approve all the forms for use. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell presented an exhibit on per diems paid by state boards and commissions. A copy of said exhibit is attached to and made a part of these minutes.

It was the consensus of the Commission to leave the per diem as is.

Director Tyrrell reminded the Commissioners of the ARELLO Annual Meeting, which will be held October 25-28, 2003 in Portland, Oregon. Commissioners Shepard, Wiebusch, Strand, Poskochil, and Johnson are registered for the meeting, and Chairperson Gale was considering whether to attend.

No action was necessary on this report.

Director Tyrrell presented the Errors and Omissions Insurance Loss Report through June 30, 2003. 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.

Deputy Director for Enforcement Mayrose presented an exhibit which included the changes Commissioners had requested to the trust account examination cycle and procedures, as discussed at the previous Commission meeting. A copy of said exhibit is attached to and made a part of these minutes.

After discussion, a motion was made by Moline and seconded by Strand to adopt the procedures and cycle as presented. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Counsel Titus presented an exhibit which consisted of a rough draft of the legislative bill to amend the Time-Share Act. A copy of said exhibit is attached to and made a part of these minutes.

After discussion, a motion was made by Moline and seconded by Strand to approve the amendments as presented, to have them introduced in the 2004 Legislature, and to authorize staff to make any non-substantive grammatical, spelling, or punctuation corrections needed. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell noted that the proposed amendments will be mailed to all registrants to solicit comments, which will be noted in his legislative testimony.

Director Tyrrell noted that if the RFP was sent out during January or February, underwriters may not want to write the policy for 2005, since they would not yet have the June 30, 2004, loss report. Commissioner Moline asked that the Commission find out what it could do to reduce risk, to keep the state plan viable. Director Tyrrell noted that the Seller Property Condition Disclosure Statement was one reason Nebraska had such a low premium. Commissioner Moline said the Commission should ask insurers what would make Nebraska even more attractive.

Commissioner Strand asked for a white paper on the general issue, and wanted to know which states were in the insurance business and which were not. Commissioner Strand wanted to find out philosophically what the overall direction should be, which would be a basis for discussion. Commissioner Moline said the issue was the ability to get insured. In transactions involving small and large brokers, if one was insured and one was not, the insured one always carried the liability.

After discussion, a motion was made by Moline and seconded by Strand to adopt the 2003-2004 objectives as amended in discussion. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell informed the Commission that the lowest 2004 premium that could be negotiated by Williams Underwriting Group, Inc., was $140.00, and that offer had been rescinded. Director Tyrrell had been working with Risk Management and DAS on a solution. The Commission had an October 30 deadline to inform licensees of the errors and omissions insurance policy terms. There was a provision in DAS procedures for emergency contract procurement, which was not an RFP. Risk Management said it could be done that way, and that the best way would be to work with the current program administrator and have the Commission waive the renewal deadline requirement. Our legal counsel said the two parties to the contract could agree to waive it. Last night, Dick Williams said he could not guarantee us that we could get coverage within two weeks. The two carriers he was negotiating with had never written professional liability policies before. Rice was the only other errors and omissions insurance underwriter Director Tyrrell knew. Director Tyrrell talked to them this morning, and they thought they could do it, so the Commission could negotiate directly with them. Cindy Rice Grissom said she did not think the deadlines were a problem. This solution would work only for one year, not for the total problem, then the Commission could do a full-blown RFP next year. Ms. Grissom indicated that it may work better if the Commission could negotiate a two-year term, which could probably result in a lower premium. The Commission could do that, but would have to do some things to accomplish it. Staff will try to get the exact same policy, terms, and conditions as the current policy, and Ms. Grissom indicated it should not be a problem to stay under the $200.00 limit. Director Tyrrell suggested that the Commission either: 1) authorize staff to negotiate, make the changes needed, and enter into an errors and omissions insurance agreement; 2) authorize the Budget and Planning Subcommittee to work with staff to accomplish that; 3) set up a different committee, consisting of no more than three Commissioners, to work with staff to accomplish that; or 4) specify one Commissioner to work with staff to accomplish that. The Commission will need to be able to move on a proposed contract by October 15.

Commissioner Johnson asked if this meant Williams Underwriting Group was out of the errors and omissions insurance business. Director Tyrrell said no, that other states were a month behind Nebraska for deadlines. New Mexico was currently working with Rice, and Director Tyrrell did not know about the other states. Director Tyrrell said that the Commission may need some wiggle room. Counsel Widger said the Commission may get some wiggle room under the emergency waiver clause, but the Commission must provide notice by October 30 if the premium was under $200.00 If it was over $200.00, it would be impossible due to the statutory cap.

Chairperson Gale asked if Nebraska was in a larger pool. Director Tyrrell said the group consisted of Nebraska. To some degree, the overall insurance market would affect the premium. Commissioner Moline agreed that if a whole line of business was not profitable, regardless of individual state experience, a company would get out of the business. Also, with all the new construction, Nebraska may be getting the same mold problems that have been an issue in Texas and California. Commissioner Moline offered two suggestions:1) take whatever we can get, for as long as we can get it; and 2) look at the errors and omissions insurance requirements, to adjust coverages as needed to keep the premium low and cover crucial areas.

Commissioner Johnson asked if Williams Underwriting Group could still be the underwriter. Director Tyrrell said that Mr. Williams could not guarantee that he could get coverage for Nebraska in time, or even months from now.

A motion was made by Johnson and seconded by Strand to authorize the Budget and Planning Subcommittee to work with staff to negotiate and enter into contractual agreements regarding errors and omissions insurance for 2004. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

November 12, 2003 - Staybridge Suites, Lincoln

December 10-11, 2003 - Staybridge Suites, Lincoln

January 30, 2004 - Staybridge Suites, Lincoln

NOTE: after the meeting, the consensus of the Commission was to leave the meeting dates as originally scheduled, with November 12-13 at the Days Inn Carlisle in Omaha and January 21-22 at the Staybridge Suites in Lincoln.

At 9:33 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 9:41 a.m.

At 10:50 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 11:00 a.m.

At 12:19 p.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 12:35 p.m.

At 1:47 p.m. on September 24, there being no further business to come before the Commission, a motion was made by Moline and seconded by Strand that the meeting adjourn. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, Wiebusch, and Gale voting aye.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the September 24, 2003, meeting of the Nebraska Real Estate Commission were available for inspection on October 8, 2003, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Harding Collis, NP Dodge, Omaha

Rod Faubion, NP Dodge, Omaha

Judy Burford, CBSHOME Real Estate, Omaha

Beth Lube, Re/Max Real Estate Group, Omaha