Acting Chairperson Wiebusch convened a meeting of the Nebraska Real Estate Commission at 9:05 a.m. on May 19, 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 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 rule hearing and VOW discussion, and served as an advisor during the disciplinary hearing. Rob Kinsey, Special Assistant Attorney General and Counsel to the Commission, was present for the disciplinary hearing.

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 10a and 16d had been added since the tentative agenda was mailed to the Commissioners.

After review of the final agenda, a motion was made by Johnson and seconded by Moline to adopt the final agenda 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.

The minutes of the Commission meeting held on April 1, 2004, were considered.

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

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

The cash fund balance as of March 31, 2004, was $901,342.47, which compared to a cash fund balance of $794,000.80 on March 31, 2003.

The cash fund balance as of April 30, 2004, was $861,766.33, which compared to a cash fund balance of $753,204.69 on April 30, 2003.

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

Director Tyrrell presented a time-share registration report for Fairfield Smoky Mountains II, and an amendment to a time-share registration for Vacation Village at Parkway. A copy of said report is attached to and made a part of these minutes.

Following discussion, a motion was made by Strand and seconded by Moline to approve the registrations 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.

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 Shepard to ratify issuance of the licenses as set forth in the report. 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 presented an exhibit which consisted of the proposed reciprocal agreement with Pennsylvania, a copy of which is attached to and made a part of these minutes.

Deputy Director Hoffman noted that it was a fairly typical agreement, which will allow Nebraska licensees to obtain reciprocal Pennsylvania licenses and allow dual license holders to meet continuing education requirements in their resident jurisdiction only. If a non-resident licensee moved to Pennsylvania, s/he would have to pass the Pennsylvania portion of the examination.

After discussion, a motion was made by Moline and seconded by Poskochil to authorize Director Tyrrell to enter into the reciprocal agreement with Pennsylvania. 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 presented for ratification the March and April Examination Reports, copies of which are attached to and made a part of these minutes.

After review, a motion was made by Strand and seconded by Shepard to ratify the March and April Examination Reports for the purpose of issuing licenses. 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 presented for ratification the Prelicense 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.

After review, a motion was made by Moline and seconded by Poskochil to ratify the reports. 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 reminded the Commission of the discussion at the last meeting regarding sponsored study groups for correspondence courses from distance education providers, and the problems that may arise when students are encouraged to rely on the coordinators themselves, rather than the recognized and approved providers and faculty. The Commission had felt study groups may be appropriate in some situations, and wanted to support them when appropriate. Deputy Director Hoffman had worked with Harold Briley, who oversees private post-secondary schools for the Department of Education, and he saw no violation of their rules. Mr. Briley likened it to tutoring, which happens fairly frequently. In talking to prelicense distance education providers and others concerned, Deputy Director Hoffman suggested the Commission should establish lines of communication with study group coordinators, and instead of discouraging study groups, help to make them better. There are only two schools doing prelicense distance education, so these administrators could let Commission staff know when study groups formed. Commission staff could then seek to establish communication with these coordinators. The Commission could try it and determine whether this makes a positive impact on students.

Commissioner Moline said that would be great. Rural areas had trouble educating people. This solution should work for both sides. Commissioner Poskochil agreed that this should provide much better results.

Commissioner Strand asked if Deputy Director Hoffman was in regular communication with distance education providers. Deputy Director Hoffman said yes. Commissioner Strand said she could continue to have them let students know to stay in communication also. Deputy Director Hoffman agreed, and said at least one provider was considering having study group coordinators approved as instructors, to ensure quality.

Acting Chairperson Wiebusch asked where the study groups were located. Deputy Director Hoffman said both study groups of which she was aware were in Norfolk. The groups did not form that often, and she could not analyze their effectiveness because she did not know how many or which applicants had used them.

The consensus of the Commission was to work with study groups to keep the lines of communication open. Commissioner Moline said staff should encourage and nurture them.

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 #2003-053 - Trenton Reed vs. Martin Ian Cohen

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

Item B Complaint #2004-011

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 Moline that the complaint be dismissed without prejudice. After discussion, the mover withdrew the motion.

After further discussion, a motion was made by Poskochil and seconded by Johnson that the complaint be set for hearing on the violations alleged in the investigative report. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Item C Complaint #2004-012 - Commission vs. Mark A. Nichols

Item D Complaint #2004-013 - Commission vs. Charles Wing Concannon

Item E Complaint #2004-014 - Commission vs. Joseph John Valenti

These complaints were about the same situation, so the Commission considered them together. 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 all three complaints be dismissed without prejudice. Motion carried with Johnson, Moline, Shepard, and Strand voting aye, with Poskochil and Wiebusch voting nay, and with Gale not participating or voting, being absent and excused.

Item F Complaint #2004-015 - Jerome Rohde vs. Dexter R. Wolf

Prior to discussion of this matter, Commissioner Moline 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 Johnson that the complaint be dismissed without prejudice. Motion carried with Johnson, Poskochil, Shepard, Strand, and Wiebusch voting aye, with Moline recused, and with Gale not participating or voting, being absent and excused.

Item G Complaint #2004-019 - T. J. Heinert vs. Kenneth John Jansen & Patricia Ann Jansen

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

Item H Complaint #2004-023

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 Strand that the complaint be dismissed without prejudice against Respondent A, and held in abeyance until Respondent B either renewed his/her salesperson license or could no longer renew the license after June 30, 2004. 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 Mayrose presented a stipulation and consent order in the matter of Complaint #2004-029, Commission vs. Gary W. Fenster. A copy of said order is attached to and made a part of these minutes. Mr. Fenster 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 Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Director Tyrrell reviewed the proposed amendments set out in Title 299, Chapter 8. No comments had been received prior to the meeting, and no one appeared either for or against the proposed amendments at the hearing.

After discussion, a motion was made by Moline and seconded by Strand that the Commission adopt Title 299, Chapter 8, with the proposed amendments as presented; to direct staff complete the filing process for the proposed rule changes; and to authorize staff to make any non-substantive grammatical, spelling, or punctuation corrections needed. Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or voting, being absent and excused.

Acting Chairperson Wiebusch declared the rule hearing concluded at 10:22 a.m.

A hearing was held on May 19, at 10:35 a.m., in the matter of Complaint #2004-009, Commission vs. Sharon J. Martin. Rob Kinsey, Special Assistant Attorney General and Counsel to the Commission, appeared for the Complainant. Respondent Sharon J. Martin was present without counsel. Counsel Widger served as an advisor to Acting Chairperson Wiebusch regarding evidentiary rulings.

After opening statements, Counsel Kinsey presented 22 exhibits, all of which were offered and received by Acting Chairperson Wiebusch. Counsel Kinsey called Ms. Martin, Daniel Vescio, Julie Erickson, Thomas Webster, and Deputy Director for Enforcement Terry Mayrose as witnesses.

At 12:00 p.m., Acting Chairperson Wiebusch declared a brief recess, and reconvened the meeting at 12:06 p.m.

At 12:20 p.m., Acting Chairperson Wiebusch declared a recess for lunch, and reconvened the meeting at 12:45 p.m.

Ms. Martin presented five exhibits, all of which were offered and three of which were received by Acting Chairperson Wiebusch. Ms. Martin called no witnesses.

After closing arguments had been presented, Acting Chairperson Wiebusch declared the hearing concluded.

A motion was made by Moline and seconded by Strand to find the respondent guilty of violating Neb. Rev. Stat. Section 81-885.24(29).

Commissioner Moline said Ms. Martin failed to do basic things that should have been done, such as completing agency forms and extending the listing when addendums modified it.

A motion was made by Poskochil to amend the motion, to add a violation of Neb. Rev. Stat. Section 76-2418(1) regarding drafting the lease. The motion died for lack of a second.

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

Acting Chairperson Wiebusch then opened the disciplinary envelope. No prior disciplinary actions were on file.

Commissioner Poskochil asked if additional continuing education was needed. No Commissioners offered an amendment.

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

Acting Chairperson Wiebusch notified the Respondent that the costs incurred for the court reporter and any witness fees would be billed to the Respondent, as provided for in 305 NAC Chapter 4, and that the Respondent would have thirty days from the date of the order to reimburse the Commission for said costs.

With the consent of the Respondent, Acting Chairperson Wiebusch directed Counsel Kinsey to prepare the order.

Acting Chairperson Wiebusch announced that all exhibits related to this hearing would be retained in the Commission office.

The hearing was adjourned at 2:27 p.m.

Acting Chairperson Wiebusch reviewed the procedure for informal special appearances.

Mr. Viveros said he had talked about real estate with a friend with whom he worked. They decided to go to real estate classes together. Halfway through the first course, he found out about the criminal background check. He had gotten into trouble with the law once in his life. He talked to his instructor, and she said it would be good to be honest about it. The instructor said to call the Commission. Mr. Viveros talked to Director Tyrrell, who told him he would need to make a special appearance.

Mr. Viveros said he had two jobs. He worked from 9:30 p.m. to 7 a.m., took an hour nap, then worked 8:30 a.m. to 5 p.m., got 3 hours of sleep, and went to work again. When he got in trouble, it was the lowest point in his life. He had never been in jail before, and he felt real bad. He had promised himself that by age 30, he would have a family and settle down. Instead, he turned 30 in jail, and felt real bad about letting himself down. He decided to change things around. He spent 120 days in the county jail, but made something useful of his time by getting his GED. He had come to the United States at 18 and always had a job, but had never gone to school here. As a teenager, he wanted a car, so he needed a job and did not have time for school. He had to work to achieve his dream of getting his car. In jail, he passed 3 finals in 4 months. He got out on bond, with the condition of going to a rehabilitation center, because he had used drugs and especially alcohol. He completed a 2-month program. A year went by before he was sentenced, and he got probation because of his clean record. The judge gave him a chance. He had decided inside his heart that he would turn everything around, and he had analyzed everything in his life. The Iowa probation officer released him from probation in 3 years instead of 5 for good behavior, and he had completed 200 hours of community service in less time than was required.

When Mr. Viveros took the real estate courses, he looked at it as an opportunity for a better job. His night job is sanitation, and he works with chemicals. His day job is painting cars, which also involves solvents and chemicals. He will not be able to last long at that job. Painters move to being body men or something else because of the chemicals and solvents. While taking courses, he realized a lot of things, such as there are a lot of people who did not have a house; being bilingual would help; and he would be involved in the Hispanic community, which was growing. Mr. Viveros had been going to Alcoholics Anonymous for 8 years, since he stopped drinking, using anything, and even smoking. He had come in touch with a lot of people there, who the police send there to improve themselves and to give them a chance to quit drinking. It was the American dream to have a roof over your head, and feel a part of the community. That was why he wanted to get a license, to have the satisfaction of helping people get a house.

Acting Chairperson Wiebusch asked when Mr. Viveros was in jail originally. Mr. Viveros said April 1996. Commissioner Moline asked on what charge. Mr. Viveros said it was possession with intent. Acting Chairperson Wiebusch said that would be intent to distribute.

Commissioner Poskochil noted that Mr. Viveros said he came here at age 18, and asked if he lived here for 12 years before his arrest. Mr. Viveros said yes. Commissioner Poskochil asked where Mr. Viveros worked prior to his arrest. Mr. Viveros said he did body work on cars. Commissioner Poskochil asked if Mr. Viveros lived in Nebraska or Iowa. Mr. Viveros said he lived in Council Bluffs, in the same house for 6 years. Commissioner Poskochil noted it was a felony conviction, and asked what was the quantity. Mr. Viveros said he thought the package was about a pound, but he did not weigh it. Commissioner Poskochil said that was a pretty big amount. Mr. Viveros said the judge said it was worth about $10,000.

Commissioner Poskochil asked how Mr. Viveros got involved in drugs. Mr. Viveros said his brother introduced him to the guy, and he became friends with him. The guy was a drug user and also an informant. Mr. Viveros said the government let informants do whatever they wanted to do, but every so often they had to turn someone in. The guy talked Mr. Viveros into it for that. Mr. Viveros used weed at the time, and no other drugs. The guy convinced Mr. Viveros to do it. Mr. Viveros had been in Omaha for about 2 years, he had not known the winters were so bad, he was laid off from a couple of jobs, and he was kind of forced to do what he did. Mr. Viveros was not dealing with anyone else, just that guy, and it was a one-time thing. Looking back, Mr. Viveros was glad he got arrested. If he would have continued with drugs, he would probably be in jail for the rest of his life or killed by now. It was a good experience.

After discussion, a motion was made by Moline and seconded by Shepard to allow Mr. Viveros to sit for the salesperson examination after making proper application, and to have a license issued upon passing.

Commissioner Johnson asked if Mr. Viveros had talked to any brokers regarding employment. Mr. Viveros said no, he did not want to get his hopes up. Commissioner Johnson asked if his instructor supported his getting a license. Mr. Viveros said yes, especially because the Hispanic community was growing in Omaha. Brokers needed bilingual people.

Commissioner Strand said Mr. Viveros was to be commended on his recommendations, which were from people who had known him for 5-6 years, and on turning his life around. Mr. Viveros said when he was in jail, he thought about how he got there, and how he let somebody talk him into doing that. It was a good experience, and he will never do it again. As of July 21, Mr. Viveros would have 8 years of sobriety. He wanted to continue that, and since he had his wife and kids, he wanted to be a good role model for his kids.

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

Acting Chairperson Wiebusch reviewed the procedure for informal special appearances.

Mr. Colvin said that, 9 years ago, he worked at a grocery store. He decided to take some money, against his better judgment. They confronted him, he admitted it, and he was convicted. He served 2 years on probation.

Commissioner Strand said he appreciated the recommendation letters. They were helpful from people who had known him for a long time.

Commissioner Moline asked if Mr. Colvin had been in trouble with law enforcement since his conviction. Mr. Colvin said not before and not since. Mr. Colvin said he had been in the military police. Commissioner Moline asked if Mr. Colvin had paid restitution. Mr. Colvin said yes, he paid full restitution, and got his civil rights back in January 1998. In the future, Mr. Colvin will request expungement. It had been almost 9 years now, and he had considered waiting to apply until his record was expunged, but he wanted to get into real estate now. His fiancee had made calls to the Commission office, and had found out he did not have to wait until he got a pardon.

After discussion, a motion was made by Strand and seconded by Moline to allow Mr. Colvin to sit for the salesperson examination after making proper application, and to have a license issued upon passing.

Commissioner Johnson asked if Mr. Colvin was currently employed. Mr. Colvin said yes, but he would leave that employer when classes started. Commissioner Johnson asked if Mr. Colvin understood this was a commission-based business. Mr. Colvin said yes, and all his friends in the business thought he could do it.

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

Acting Chairperson Wiebusch reviewed the procedure for informal special appearances.

Ms. Swanson presented an exhibit which consisted of her resume. A copy of said exhibit is attached to and made a part of these minutes, denoted as exhibit 12c1.

Commissioner Moline noted that Ms. Swanson had trouble with alcohol in the past, and asked if she drank now. Ms. Swanson said absolutely not. She participated in Alcoholics Anonymous, and had done service work with that too. She did personal sponsoring as well. She had been sober for 4 years.

After discussion, a motion was made by Strand and seconded by Moline to allow Ms. Swanson to sit for the salesperson examination after making proper application, and to have a license issued upon passing.

Commissioner Johnson asked if Ms. Swanson had talked to a broker about employment. Ms. Swanson said yes.

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

Director Tyrrell presented an exhibit which was a draft of a VOW (virtual office website) guidance article for the Commission Comment. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that Counsel Widger had registered at a VOW, and developed the article based on her experience. Director Tyrrell asked if the Commission wanted staff to hold off on it, since the VOW policy was delayed again. The additional delay could be included in the explanatory paragraph at the top. It came down to 2 issues - when agency disclosure is made, and that it was advertising which must comply with advertising regulations. Those issues were addressed in the article.

Director Tyrrell said staff could put the article into the June Commission Comment, or delay it until the policy was implemented. Commissioner Moline said he would want to put the article out now, because VOWs were advertising. As more jurisdictions said it was advertising, it clarified the issue. If licensees were thinking about implementing VOWs, the article would give them something to consider.

Acting Chairperson Wiebusch asked if Counsel Widger had anything to add. Counsel Widger said she went to the website of a person who maintained that VOWs were absolutely not advertising. The website gave a huge disclosure, which was very thorough, and stated that registering and submitting information was not creating an agency relationship with the company. Counsel Widger accepted the terms, and went into the website. The listings were searchable by criteria. She got 10-12 listings which matched her criteria, and they clearly identified listing agents in the Boulder, Colorado, area. She submitted her contact information, and got an email back immediately from a licensee at the company which asked if she could look at houses on Saturday from 10 to 12. Counsel Widger wrote back and indicated that Saturday would not work for her, but she wanted to know if any inspections had been done and asked tons of questions. Counsel Widger noted that she sent her emails from her office, which identified herself as an attorney, but did not indicate she was working for the Nebraska Real Estate Commission. The response stated that a buyer disclosure would be given after a purchase agreement was written, and that inspections were not given until the property was under contract. Counsel Widger stated that the properties were subject to Colorado law, and she saw no Nebraska properties listed on the website. The licensee said he would show her the properties, and she would choose whether he should act as a transaction agent or buyer agent before the showings. He offered to email the choices to her for her to consider, and asked again when to schedule showings. She thanked him for providing the information, but said she would not be coming to Colorado. Counsel Widger occasionally got emails from the company when the status changed on a property she had selected.

Director Tyrrell noted that it was no different than if a licensee today had a website through the firm or the MLS, and/or somehow got an email regarding a property and started corresponding with the interested party. There was nothing in a VOW that a licensee could not do in person. People using the website had to register. Counsel Widger noted that the disclosure that they were not acting as her agent was on the opening screen. A VOW provided for the online creation of an agency relationship. This company said it was a VOW, and Counsel Widger did not see any distinction between that and any other form of web-based advertising.

Commissioner Moline said it was good to treat VOWs as advertising. Director Tyrrell noted that, if a VOW advertised Nebraska property for sale, the broker would need a Nebraska real estate license to do it. It was the same as if they overtly prospected in Nebraska.

Commissioner Moline said this was a deep issue, and he thought staff should publish the article. It was the consensus of the Commission to publish the article in the June Commission Comment.

Director Tyrrell presented an exhibit regarding the length of processing time for criminal history background checks. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell introduced Lieutenant John Shelton of the Nebraska State Patrol. Lt. Shelton distributed an exhibit regarding processing time for applicant criminal history requests. A copy of said exhibit is attached to and made a part of these minutes, denoted as exhibit 14a.

Commissioner Strand noted that the county and city governments in Lincoln created interlocal agreements, which were government-to-government, regarding some staffing issues. Maybe the Commission could pay to have a dedicated person for real estate applicant fingerprint reports. Priorities were always a moving target, but these were livelihood issues. Lt. Shelton said they were currently researching whether the fees charged covered all the costs involved, which had not been reviewed for years. He met with Health and Human Services (HHS) representatives, who were researching the possibility of providing funds to hire a person for HHS applicant fingerprint reports. He did not know at which step in the process the person would work.

Commissioner Moline asked if it was appropriate for Commission staff to talk to HHS, and work with them to hire another person. The licensees he had talked to wanted to go to work, and would have willingly paid $5-10 more to get the report done sooner. Lt. Shelton said the Patrol would need legislative approval to increase the fee. Commissioner Moline asked how the Commission could facilitate this happening faster. Lt. Shelton said that, to increase fees, they would need justification, and need to get approval up through the Governor. Commissioner Strand said it might be helpful to split the issue. Since livelihood licensing requirements would be relatively stable, perhaps the Commission could pay to keep it a stable amount of time to get reports back. Livelihood reports should not have to compete with other types of reports.

Director Tyrrell noted that the Commission office could house the additional staff person, especially since space was currently an issue.

It was the consensus of the Commission that Director Tyrrell work with Lt. Shelton and HHS regarding funding a person to do real estate fingerprint-based criminal history reports.

Commissioner Strand added that, if the processing time was an ongoing problem, staff should look at changing the Commission procedure regarding not allowing applicants to sit for the examination until the report was completed. It was tough timing for people going back to school. Director Tyrrell said that depended on how we wrote the law. Commissioner Strand asked that Director Tyrrell look into allowing applicants to take the test before the report came back. Director Tyrrell said he will look at that too.

Acting Chairperson Wiebusch asked if anyone had heard from Chairperson Gale regarding the working group on home inspector licensing. Director Tyrrell said Commission staff had not heard anything on that. Acting Chairperson Wiebusch said she had emailed him a suggestion she had received from a Kearney home inspector.

No action was necessary on this report.

Acting Chairperson Wiebusch agreed that it was hard to talk across jurisdiction lines. There was no consistency with license requirements and terminology. The dream of the Strategic Planning Committee was to have some consistency, and also to make ARELLO a proactive entity that jurisdictions or governments went to for answers. These were lofty goals and aspirations, and Acting Chairperson Wiebusch totally concurred with them. The process was not done yet, but a huge step had been taken. Director Tyrrell said that the 3-5 year objectives would be the subject of real discussion. Acting Chairperson Wiebusch asked if a draft of the objectives was on the ARELLO website. Director Tyrrell said the member section had changed considerably, but the draft was there.

Acting Chairperson Wiebusch said she wished she had been on the Communications Committee before now, because she was having a ball on it. The committee was looking at jazzing up the ARELLO Digest, so it would be used all the time. They were considering making it a journal, featuring hot topics, and issuing it more frequently. They were also reviewing the ARELLO public and member websites, and coming up with suggestions so that ARELLO websites were easier to use for new members. She noted that Director Tyrrell gave a report on Commission member training. She was one of three members who were reviewing the new member orientation CD, and coming up with suggestions. She also had fun planning the district meeting, and encouraged the other Commissioners to attend.

Acting Chairperson Wiebusch said she got a handout on ARELLO continuing education course approval requirements. Director Tyrrell said it was probably a white paper at the continuing education session. Commissioner Poskochil said there was an error on it, which was noted in the session, and it would be updated. Commissioner Moline noted that the Nebraska Realtors Association was currently trying to compile information on that. Acting Chairperson Wiebusch said she would share the information with them. Commissioner Poskochil said he did not know which information was in error. Acting Chairperson Wiebusch said she thought that, of all the states, the only one without continuing education requirements was New Jersey.

Commissioner Johnson said he thought it was nice that Joan Nigro got to introduce her friend, Mayor of Omaha Mike Fahey. Former Commissioner Nigro had also created a restaurant list for attendees. Acting Chairperson Wiebusch thought the meeting coordinators might have been able to make a better presentation on what Omaha had to offer for entertainment, in addition to the restaurant list.

No action was necessary on this report.

Trust Account Examination Evaluation Report - First Quarter 2004

Director Tyrrell presented the Trust Account Examination Evaluation Report - Third 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.

No action was necessary on this report.

Director Tyrrell presented the Errors and Omissions Insurance Loss Report - First Quarter 2004. 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.

Director Tyrrell reported that the Title 300, Chapter 1, Retirement Subdivisions and Communities rule changes had been approved by Governor and were filed with Secretary of State on May 17, 2004. The changes will be effective May 22, 2004, and operational July 1, 2004.

No action was necessary on this report.

Approval of Travel to ARELLO Advanced Investigator Workshop

Director Tyrrell presented information regarding the costs of sending Deputy Director for Enforcement Mayrose to the ARELLO Advanced Investigator Workshop in Denver on August 12-14, 2004. A copy of said exhibit is attached to and made a part of these minutes. Total cost was expected to be approximately $1228.00.

After discussion, a motion was made by Moline and seconded by Shepard to approve the expenditures 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.

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

August 17-18, 2004 - Staybridge Suites, Lincoln

At 9:55 a.m., Acting Chairperson Wiebusch declared a brief recess, and reconvened the meeting at 10:03 a.m.

At 10:22 a.m., Acting Chairperson Wiebusch declared a brief recess, and reconvened the meeting at 10:29 a.m.

At 12:00 p.m., Acting Chairperson Wiebusch declared a brief recess, and reconvened the meeting at 12:06 p.m.

At 12:20 p.m., Acting Chairperson Wiebusch declared a recess for lunch, and reconvened the meeting at 12:45 p.m.

At 2:27 p.m., Acting Chairperson Wiebusch declared a brief recess, and reconvened the meeting at 2:40 p.m.

At 4:41 p.m., Commissioner Strand was excused from the remainder of the meeting.

At 4:48 p.m. on May 19, there being no further business to come before the Commission, a motion was made by Poskochil and seconded by Moline that the meeting adjourn. Motion carried with Johnson, Moline, Poskochil, Shepard, and Wiebusch voting aye, and with Strand and 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 May 19, 2004, meeting of the Nebraska Real Estate Commission were available for inspection on June 2, 2004, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell, Director