Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:00 a.m. on March 3, 2004, in the Fireside Room of the Days Hotel Carlisle, located at 10909 M Street in Omaha, Nebraska. All of the members of the Real Estate Commission were present, with the exception of Commissioner Wiebusch, 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 Rasmussen stipulation and consent order and the Request for Proposals for the errors and omissions insurance contract.

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 the February Receipts and Expenditures Report had been added since the tentative agenda was mailed to the Commissioners.

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

The minutes of the Commission meeting held on January 21, 2004, were considered.

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

Director Tyrrell presented the Receipts and Expenditures Reports for January and February. Copies of said reports are attached to and made a part of these minutes.

Regarding the January report, Director Tyrrell noted that Receipts included new branch office licenses and transfer fees for the Woods Bros. transfer to the new designated broker. Expenditures Category 516400, Unemployment Compensation, was an expenditure for a former employee; Category 521100, Postage, included mailing the 2004 pocket cards, errors and omissions insurance certified letters, and the Commission Comment; Category 521500, Publication & Printing, included the Commission Comment printing and copies of the License Law manual; and Category 571100, Board and Lodging, was for the ARELLO meetings in Denver.

The cash fund balance as of January 31, 2004, was $984,903.51, which compared to a cash fund balance of $863,202.38 on January 31, 2003.

The cash fund balance as of February 29, 2004, was $944,335.49, which compared to a cash fund balance of $822,104.09 on February 29, 2003.

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

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

Director Tyrrell noted that renewals had caught up and were ahead of last year. More licensees renewed their licenses this year than were anticipated.

No action was necessary on this report.

Director Tyrrell presented a Time-Share Registration for Club de Soleil. A copy of said report is attached to and made a part of these minutes.

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

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, and Gale voting aye, and with Wiebusch not participating or voting, being absent and excused.

Deputy Director Hoffman presented for ratification the January Examination 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 Poskochil to ratify the January Examination Report for the purpose of issuing licenses. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Gale voting aye, and with Wiebusch not participating or voting, being absent and excused.

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

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

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

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

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

No action was necessary on this report.

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 #2003-057 - Florence Fattig vs. Jacqueline Rae Beltzer

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

Item B Complaint #2003-059 - Charles W. Balsiger vs. James Anthony Schmit

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 Strand that the complaint be dismissed without prejudice, and that Director Tyrrell send a letter to the limited dual agent clarifying the requirement for placing a fixed date of expiration in any written listing agreement. Poskochil offered a friendly amendment to include in the letter the issue of proposing a price other than the listing price. The amendment was accepted by the mover and the seconder. The amended motion carried with Johnson, Poskochil, Shepard, Strand, and Gale voting aye, and with Moline and Wiebusch not participating or voting, being absent and excused.

Item C Complaint #2003-060 - Patricia A. Hooker-Lankford & Robert Dale Lankford vs. Vicki K. Huddleston & Constance Jean Bogle-Herting

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

Item D Complaint #2004-002

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

After further discussion, a motion was made by Poskochil and seconded by Johnson that the Commission file complaints on its own motion against the Respondent for both violations alleged in the report conclusion, and against Licensee A for the first alleged violation only. Poskochil offered a friendly amendment to his motion, to file the complaints only on the first alleged violation against both parties. The friendly amendment was accepted by the seconder. The amended motion carried with Johnson, Poskochil, Shepard, and Gale voting aye, with Strand voting nay, and with Moline and Wiebusch not participating or voting, being absent and excused.

Item E Complaint #2004-004

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

Item F Complaint #2004-001

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 Johnson that the complaint be set for hearing. Motion carried with Johnson, Poskochil, Shepard, Strand, and Gale voting aye, and with Moline and Wiebusch not participating or voting, being absent and excused.

Deputy Director for Enforcement Mayrose presented a stipulation and consent order in the matter of Complaint #2003-051, Anthony W. and Barbara J. Bartram vs. Curtis Alan Spilker. A copy of said order is attached to and made a part of these minutes. Mr. Spilker was not present.

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

Counsel Widger presented a stipulation and consent order in the matter of Complaint #2003-043, Commission vs. Matthew Alson Rasmussen. A copy of said order is attached to and made a part of these minutes. Mr. Rasmussen was present and represented by attorney Robert F. Peterson of Omaha.

After discussion, a motion was made by Poskochil and seconded by Strand to enter into the order as presented. Motion carried with Poskochil, Shepard, Strand, and Gale voting aye, with Moline voting nay, with Johnson abstaining, and with Wiebusch not participating or voting, being absent and excused.

The hearing that was scheduled for this meeting was continued, pending presentation of a stipulation and consent order.

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Holm said he had been in sales for some years, and was now in the restaurant business. He had a good ability to work with people, and felt he would excel at selling real estate. Mr. Holm said there were some things in his criminal history report that he was not proud of. The issues were alcohol-related, including 2 DUI (driving under the influence) convictions, in 1999 and 2000. Mr. Holm said he had completed the court-ordered counseling and had quit drinking, so that was not an issue any more.

Commissioner Moline asked if Mr. Holm had talked to Lincoln brokers regarding employment. Mr. Holm said a broker had indicated that Mr. Holm could come sell for him. Commissioner Moline asked how he knew the broker, and Mr. Holm said he got to know him while looking for a home last year.

Commissioner Strand said it was not uncommon to see letters of support with applications, and asked if Director Tyrrell asked for them, because the record seemed deficient. Mr. Holm said that Director Tyrrell did not ask for additional information, just an explanation of his criminal history. Director Tyrrell said that he normally tells applicants that they may include references if they wish, but he may not have mentioned it to Mr. Holm. Commissioner Strand noted that Mr. Holm had worked for over 3 years at a local restaurant, which would be tough to do if he was still drinking, so there may be an implication of a reference there. Commissioner Strand would have felt better about making a decision if there were references.

Chairperson Gale asked if any of the convictions were felonies, or if there was a third offense DUI. Mr. Holm said no.

Chairperson Gale asked how the Commission would know about future felony convictions. Director Tyrrell said that had to be reported on the renewal form, which would be brought to the Commission if there was a felony. Depending on the situation, a misdemeanor might even be brought before the Commission.

Commissioner Poskochil noted that Mr. Holm had quit drinking on December 10, 2000, had completed probation in October 2002 on all the misdemeanor convictions, was gainfully employed, owned a home, and was married. Mr. Holm confirmed that information. Commissioner Poskochil said that Mr. Holm was pursuing a career at which he could be successful.

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

A motion was then made by Moline and seconded by Johnson to amend the motion, so that the license would be issued with the conditions that Mr. Holm had to notify his initial employing broker of his criminal history, that the employing broker had to verify that notification to the Commission in writing prior to issuance of the license, and that Mr. Holm had to immediately notify Commission staff if he had any further contact with the law which could result in jail time during his first year of licensure. The amendment carried with Johnson, Moline, Poskochil, Shepard, Strand, and Gale voting aye, and with Wiebusch not participating or voting, being absent and excused.

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

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Brown said he was 21 years old, married, and had two kids. He currently ran a daycare with his wife and owned a barbershop. Mr. Brown had been in sales, selling cars, and now wanted to sell houses.

Chairperson Gale asked if Mr. Brown knew people in the real estate business. Mr. Brown said not really, but he had met some by looking into it.

Chairperson Gale asked if Mr. Brown had a barber license. Mr. Brown said no, he was not a barber. He owned the barbershop, and licensed barbers rented booths from him. He was currently running a daycare with his wife.

Chairperson Gale noted that the Commission guidelines state that unless extraordinary circumstances are present, licensure would be denied if a sentence was not completed. Mr. Brown had not completed his sentence, because he was still on probation for a felony.

Commissioner Johnson asked if Mr. Brown had completed real estate school. Mr. Brown said yes. Commissioner Johnson asked if Mr. Brown had talked to brokers regarding employment. Mr. Brown said yes, with two brokers in Omaha.

After discussion, a motion was made by Moline and seconded by Poskochil to not allow Mr. Brown to sit for the salesperson examination at this time, but that Mr. Brown could make another special appearance after his probation was successfully completed. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Gale voting aye, and with Wiebusch not participating or voting, being absent and excused.

Chairperson Gale reviewed the procedure for informal special appearances.

Chairperson Gale asked Mr. Anania to discuss his criminal record. Mr. Anania said he had a lot of bad luck driving, and it was not an impressive record. He has had no moving violations for over a year. Mr. Anania was trying to turn his life around and take the test.

Chairperson Gale asked where Mr. Anania went to school for nursing. Mr. Anania said Metro Community College. Chairperson Gale asked if the classes were for an LPN license. Mr. Anania said yes. Chairperson Gale asked how long Mr. Anania was in the program. Mr. Anania said that, actually, he just completed the prerequisites, but did not go into the program. Chairperson Gale asked how Mr. Anania got his GED. Mr. Anania said it was through Metro. Chairperson Gale asked why Mr. Anania left high school. Mr. Anania said he was a junior at Creighton Prep, but was behind on his credits, so the counselor recommended that he transfer to Central. By his senior year he was behind on credits again, because Central did not give credits for theology classes at Creighton Prep. Mr. Anania got his GED in 1996.

Commissioner Johnson asked if Mr. Anania still had high risk insurance. Mr. Anania said yes, it was SR-22. Mr. Anania said that if you had a license you had to have insurance, and that was taken care of.

Commissioner Poskochil asked about the open container conviction. Mr. Anania said he was driving and was pulled over for a traffic violation, but was not sure what for. Mr. Anania had a bottle of wine in the back seat of his car which had been opened, but the lid was on it. Mr. Anania had not been drinking. Mr. Anania said he should have put the bottle in the trunk. Commissioner Moline asked how old Mr. Anania was at the time. Mr. Anania said it happened about a year or so ago, and he was currently 26.

Chairperson Gale said that he sat on the Pardons Board with the Governor and the Attorney General, and that 3^rd offense DUI drivers lost their license for 15 years. Some of them asked for special privileges, but if someone was driving on suspension, that showed total indifference to the law and was a high risk to the public, because the person might drive recklessly to avoid the police. Such total reckless indifference to the law made it hard to find a person trustworthy. Chairperson Gale noted that Mr. Anania had 7 charges for operating a vehicle during revocation, one for which he was jailed, and some of which were dismissed. It seemed like no matter what they told Mr. Anania, he thought he was above the law, and did it time after time after time. The most recent charge was in June 2001. Chairperson Gale questioned how Mr. Anania thought he could overcome that.

Mr. Anania said he agreed completely with what Chairperson Gale was saying. Mr. Anania was not drinking the wine, and was not under the influence when stopped. He was not trying to make excuses, and he knew there were many times he should not have been driving. Mr. Anania said that a year with no trouble whatsoever showed a lot of progress. He completely understood how it looked on paper. Mr. Anania said that in January 2006, if he had no additional violations, all the old violations would fall off his record. He was honestly trying to change it.

Chairperson Gale asked why Mr. Anania did not take the bus, or catch a ride, or walk. The law told him that he no longer had the privilege of driving, so why had he felt entitled. Mr. Anania said he had ridden the bus, and still had bus tickets even though he was licensed and insured now. He could not make excuses, but he was trying to turn it around. Chairperson Gale asked if counseling had helped him to find out what was motivating his behavior, if he had gained any insight regarding his conduct, and how it was different today. Mr. Anania said, to be honest, when he was younger he did not care about a lot like he should have. A lot of things had happened in his life to make him realize he had to take things more seriously.

Commissioner Johnson asked if Mr. Anania would pay regular rates in January 2006. Mr. Anania said he would have nothing on his record then. By September, several convictions will have dropped off, which will make his insurance cheaper. In January 2006, his insurance premium will decrease dramatically. Commissioner Johnson asked if Mr. Anania understood the nature of the real estate business, and that he may have no income for 6 months. Mr. Anania said he knew that some people did not make a lot at all, and that he had to stick with it. He was not planning to make a million dollars right away.

Commissioner Johnson said he thought Mr. Anania was a little premature to sit for the examination.

Commissioner Poskochil noted that Mr. Anania was 26, and it had only been a year since his last ticket. Mr. Anania said that he came out of an alley, did not see a one-way sign and went the wrong way, so he got a ticket for that. Commissioner Poskochil said he would expect this type of record more from teenagers, at that maturity level. Commissioner Poskochil said he was concerned about the safety of the public, and would like to see more time elapse with no further offenses before the Commission considered issuing Mr. Anania a license. Commissioner Poskochil said he believed Mr. Anania was trying to make a change.

Commissioner Strand asked if there was an error regarding the alias listed on the criminal history report. Mr. Anania said he was born with the last name of Zavala. In 1982, when he was 3 or 4 years old, his mom changed it due to divorce.

Mr. Anania asked if he could maybe sit for the examination at the end of September, if he stayed clean until then. Chairperson Gale said that may be good timing, because he might have some points back by then.

Mr. Anania asked, if he reapplied in 6 months and was not allowed to take the test then, would he be allowed to take it for sure after January 1, 2006. Chairperson Gale said that was most likely, if his record was clean. Commissioner Strand said he did not know without an application to review. Mr. Anania asked if he would need to keep up the SR-22 insurance until then, rather than sell his car and not drive at all. Commissioner Strand said he also wanted to see a good employment history, and that Mr. Anania needed to focus on holding a job. Commissioner Strand said that may make Mr. Anania able to pay for the insurance, so he could show responsibility while being able to drive. Mr. Anania asked, if he did not have a steady job but the insurance was paid and kept up, would that be OK.

Director Tyrrell explained to Mr. Anania that the Commission was not saying Mr. Anania had to keep SR-22 insurance. Director Tyrrell noted that, whether Mr. Anania was driving or not, the Commission felt he needed a longer period of time with a clean record. At the point in time when Mr. Anania wanted to come back, Director Tyrrell suggested that Mr. Anania not file an application, but reappear before the Commission with updated information on his employment history and driving record. Commissioner Johnson said that personal references would help too.

After discussion, a motion was made by Johnson and seconded by Poskochil to not allow Mr. Anania to sit for the salesperson examination at this time. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Gale voting aye, and with Wiebusch not participating or voting, being absent and excused.

Director Tyrrell presented exhibits regarding the request for proposals (RFP) on the errors and omissions insurance plan for 2005. Copies of said exhibits are attached to and made a part of these minutes.

Chairperson Gale asked how many proposals were expected. Director Tyrrell said there were only two providers in the past who administered mandatory programs, Williams Underwriting Group Inc. (WUG) and Rice Insurance Services Company LLC (RISC). Staff occasionally received letters from other people asking to be put on the RFP list, so staff will send the RFP to those people as well. Usually only WUG and RISC responded.

Chairperson Gale asked if the RFP would be posted online. Director Tyrrell said no, the RFP did not have to go through the Materiel Division of the Department of Administrative Services because it was a specialized contract award, so it was not posted there.

Chairperson Gale noted that the RFP stated that it should be submitted back to Risk Management, and asked if they were on the review team. Director Tyrrell said no, they had asked to be left out of it, so that would be changed. The Commission had the full authority to award the contract.

Commissioner Strand asked if wording changes would be considered an exception to the RFP, as decided by the Commission. Director Tyrrell said the changes would be made prior to mailing the RFP. Staff answered all questions during the RFP process, and provided the questions and answers to everyone who requested the RFP.

Commissioner Moline asked if the deductible was set by statute or rule. Director Tyrrell said it was set by rule, in Title 299, Chapter 8, Section 003.03c, which stated it could not be greater than 1% of the total combined limit, which currently made it $1000.00. Commissioner Moline noted that the deductible amount affected the cost of insurance, and a higher deductible made people more careful. Commissioner Moline thought that a $1000.00 deductible was not much money. Commissioner Moline asked if there was time for a rule hearing this summer to change the limit, if the Commission found out the premium would be significantly less with a higher deductible. Director Tyrrell said that, if everything fell right, there probably would be time to change the rule for the fall enrollment. Director Tyrrell suggested that it might be quicker to make an initial phone call to the known providers, and ask what the premium difference would be in general terms. If desired, the Commission could ask the question in the RFP, to see what the quoted rate would be. It could be done as an optional proposal, if the rule changed to 2.5% or any specific amount. It took about 140 days for a rule change, if everything flowed perfectly.

Commissioner Poskochil asked who usually paid the deductible. Commissioner Moline said it was usually the licensee, but often the designated broker. Commissioner Poskochil thought some licensees would rather not have a lower premium by raising the deductible. Director Tyrrell indicated that policies were written to individual licensees, so that would be where the deductible was owed. Whether the broker or the licensee paid, or split the cost, depended on the real estate company.

Commissioner Strand asked why not post the proposed rule change today, if the Commission was asking for rate quotes, so we had a head start. Commissioner Strand suggested putting a percentage range in the rule. Director Tyrrell said staff would need direction on what the Commission would want to propose in the rule change, because the notice with the specific proposed changes had to be published ahead of time. Commissioner Strand said he wanted to be able to have a range in the rule. Commissioner Moline said the Commission could say it not be greater than a specific percentage. Director Tyrrell noted that would also affect the equivalent coverage section.

Chairperson Gale said that the issue today was whether the Commission wanted to include something in the RFP to find out the premium options based on different deductibles. Commissioner Strand said he was just trying to save time on putting the notice into motion. Chairperson Gale said the Commission needed to hold a public hearing with open minds.

A motion was made by Moline and seconded by Strand that the Commission instruct staff to make the phone calls to the current providers regarding 1% and 2.5% deductibles, and to develop an exhibit with potential language changes needed in whatever sections of rule necessary to change the deductible to not greater than 3%.

Commissioner Poskochil said the Commission could not make the deductible so high that the licensee would not pay it. Commissioner Moline noted that the insurance company paid the claim, then came after the licensee for the deductible. They were trying to create flexibility to get coverage at a good rate. Commissioner Poskochil said he understood, he just wanted to make sure the claims got paid. Commissioner Shepard said the motion made sense, so the Commission could find out if it would make a difference, and decide at the next meeting whether to change the rule.

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

Commissioner Strand asked how coverage was maintained when the Commission changed carriers. Director Tyrrell said that the date of the claim determined which carrier covered it, not the date of the occurrence. Licensees could get tail coverage if they were leaving real estate, or going inactive. He also indicated staff had just found out that, if coverage lapsed for 90 days, there was no retroactive coverage.

Commissioner Moline asked to have that information put in the Commission Comment, so that licensees did not wait to renew. Director Tyrrell indicated that if that was not possible, a letter to all employing brokers would be sent.

Chairperson Gale said there were always details in contract negotiation, and asked if the claim history issue would be a contract issue or in the RFP. Counsel Widger noted that the Commission sent providers a sample contract, and they had to point out the changes they wanted, then the terms were negotiated. The claim history issue should go in the RFP, but Counsel Widger did not know exactly where it would go in the RFP.

Commissioner Strand noted that insurance was mandatory, and asked how it could lapse. Director Tyrrell noted that insurance was not required if the licensee was inactive or non-renewed. If a licensee went on inactive status or did not renew in 2004, and did not get insurance for 2004, but a person filed a claim in 2004 on a 2003 transaction, the licensee would have no errors and omissions insurance coverage. The person could still file a lawsuit against the licensee, and the licensee could be personally liable.

Director Tyrrell presented an exhibit regarding increasing the fee charged for returned checks. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that, effective April 1, 2004, the State Treasurer will charge the Commission $20.00 per returned check. To recoup the costs of processing returned checks in our office in addition to that fee, the Commission should charge at least $32.00 per returned check.

After discussion, a motion was made by Moline and seconded by Strand to increase the fee charged for returned checks to $35.00 per check, effective April 1, 2004. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Gale voting aye, and with Wiebusch not participating or voting, being absent and excused.

Director Tyrrell presented an exhibit which consisted of LB 1234. A copy of said exhibit is attached to and made a part of these minutes.

Commissioner Poskochil asked about LB 743. Director Tyrrell said it was not moving, because of changes in federal law.

No action was necessary on this report.

Director Tyrrell presented the Trust Account Examination Evaluation Report - Fourth Quarter 2003. 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. One broker had complimented the Commission on 35 years of being well served. Chairperson Gale noted that these were consistently good reports, which was a compliment to the staff.

No action was necessary on this report.

Director Tyrrell noted that the ARELLO Mid-Year Meeting would be held in Omaha on April 21-24, 2004. ARELLO had decreased the guest price from $60 to $40. Staff would like to have Commissioner registrations by March 15^th. So far, Commissioners Shepard and Wiebusch had registered.

Commissioner Moline said the federal government had recently preempted states rights with bank charters, and was talking about real estate. Deputy Director Hoffman said she got a transcript of the hearings last year, and there would be a round table discussion about it at this meeting. Deputy Director Hoffman did not know what ARELLO President Scott Taylor had seen recently on the subject. Discussion had dealt primarily with predatory lending so far, not real estate laws. They knew ARELLO was available for input. Commissioner Moline said his concern was not regarding licensing, but that there were so many state laws regarding title, mortgage, and the closing process, and he was concerned federal law would preempt state regulations. Real estate was a local business, and the only body to address it nationally was ARELLO. Commissioner Moline said the federal government should not preempt state law regarding consumer protections. He hoped ARELLO would stay on top of the issue. All 50 attorneys general have signed a letter opposed to it. Chairperson Gale said there had also been discussion of nationalizing election laws, which had always been local. The Association of Secretaries of State had banded together to oppose that.

No action was necessary on this report.

No action was necessary on this report.

April 1, 2004 - Staybridge Suites, Lincoln

May 19-20, 2004 - Days Hotel Carlisle, Omaha

June 14-15, 2004 - Ramada Limited South, Lincoln

August 17-18, 2004 - Staybridge Suites, Lincoln

At 10:35 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 10:48 a.m.

At 11:53 a.m., Commissioner Moline was excused from the remainder of the meeting.

At 11:53 a.m., Chairperson Gale declared a recess for lunch, and reconvened the meeting at 12:35 p.m.

At 1:49 p.m. on March 3, there being no further business to come before the Commission, a motion was made by Strand and seconded by Shepard that the meeting adjourn. Motion carried with Johnson, Poskochil, Shepard, Strand, and Gale voting aye, and with Moline and Wiebusch 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 3, 2004, meeting of the Nebraska Real Estate Commission were available for inspection on March 10, 2004, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director