Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:10 a.m. on June 13, 2005, in the Goldenrod Room of the Ramada Limited South, located at 1511 Center Park Road in Lincoln, Nebraska. All of the members of the Real Estate Commission were present, with the exception of Commissioner Strand, who was absent and excused. Also present were Director Les Tyrrell, Deputy Director for Education and Licensing Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund.

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 no agenda items 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 Grady to adopt the final agenda as presented. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

The minutes of the Commission meeting held on May 16, 2005, were considered.

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

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

The cash fund balance as of May 31, 2005, was $936,200.42, which compared to a cash fund balance of $827,896.94 on May 31, 2004.

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

There were no specialized registrations to be presented at the meeting.

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 Poskochil to ratify issuance of the licenses as set forth in the report. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Deputy Director Hoffman presented for ratification the May 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 Johnson to ratify the May Examination Report for the purpose of issuing licenses. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand 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 an exhibit regarding a continuing education activity significant change, 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 the reports. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

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 # 2004-069 - C. G. Hallgren vs Mark R. Wilson, David R. Vogtman, and Kay Ellen Singles

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

Item B Complaint # 2005-003 - Cinda L. Hazuka vs. Sam Cortese

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

Item C Complaint # 2005-004 - Vickie DeVries vs. Carol Renee Summers

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

Item D Complaint # 2005-006 - Monica D. Vinci vs. Kerry Lin Watson

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 without prejudice. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Item E Complaint # 2005-008

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 set for hearing. Motion carried with Johnson, Moline, Poskochil, Shepard, and Gale voting aye, with Grady voting nay, and with Strand not participating or voting, being absent and excused.

Item F Complaint # 2005-013

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 without prejudice, because the complaint was incorrectly cited. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Commissioner Moline asked that Commission staff and counsel monitor the situation, and report back to the Commission as to whether the Commission should consider filing a complaint on its own motion at a later date.

Item G Investigative Matter

Deputy Director Mayrose presented the 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 a complaint be filed on the Commission= s own motion, and that the notary matter be referred to the Secretary of State= s office. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Deputy Director Mayrose presented a stipulation and consent order in the matter of Complaint #2005-009, Commission vs. Constance J. Nordhues. A copy of said order is attached to and made a part of these minutes. Ms. Nordhues was not present.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the order, which had been signed by Ms. Nordhues. The order specified a censure plus three hours of additional continuing education in agency, to be completed within 90 days.

After discussion, a motion was made by Moline and seconded by Poskochil to enter into the order as presented.

Commissioner Grady asked if the Commission had the ability to fine licensees. Director Tyrrell said the Commission had no authority to do so under statute. Chairperson Gale noted that hearing costs were assessed to licensees who were found guilty. Chairperson Gale asked if the Commission had ever had authority to fine. Director Tyrrell said no. The Commission had not wanted that authority in the past, because fines could have a discriminatory effect. Fines would have to be evenly assessed, but the impact would be quite different depending on the size of the company. Also, the fines would go to a state school fund. Director Tyrrell suggested that the Commissioners talk to representatives from other jurisdictions, for other perspectives on issuing fines, at the ARELLO meeting. Director Tyrrell planned to have a report in August regarding fining authority in other jurisdictions.

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

There were no hearings scheduled for the meeting.

Director Tyrrell presented an exhibit which included correspondence regarding Mr. Hynek= s special appearance, Mr. Hynek= s salesperson application, and information regarding Mr. Hynek= s criminal history. A copy of said exhibit is attached to and made a part of these minutes. Mr. Hynek was present.

Chairperson Gale reviewed the procedure for informal special appearances.

Director Tyrrell noted that Mr. Hynek did not have a felony conviction, but was scheduled for a special appearance due to the number of misdemeanors and DUIs.

Mr. Hynek said he was born in Omaha, and attended South High, the University of Nebraska-Omaha, and Metro Community College. He had transferred to South High from Ralston in his sophomore year, and had hung around with people he should not have. Mr. Hynek said he had worked hard to square away his criminal past. He had two DUIs, one for alcohol and one for marijuana. Mr. Hynek had attended a 10-week program, and was told he was not dependent on alcohol. Mr. Hynek had signed a contract that he would refrain from using alcohol or drugs, and he had not used either since signing the contract. He was very proud of that. Mr. Hynek was trying to square away his life and do better for his family. Mr. Hynek went through Randall School because he wanted to sell real estate.

Chairperson Gale asked Mr. Hynek if his record was a pattern of behavior, or unconnected incidents. Chairperson Gale noted that Mr. Hynek had said he was running with the wrong group, and asked if his record was related to a gang initiation. Mr. Hynek said no, it was nothing like that, and he was never in a gang. Mr. Hynek came in to a new school without friends other than his football teammates, and did some wrong things.

Chairperson Gale asked if Mr. Hynek was in high school when he got the gun charge. Mr. Hynek said yes. Chairperson Gale asked if Mr. Hynek pled guilty to a misdemeanor. Mr. Hynek said yes. Chairperson Gale asked what Mr. Hynek was doing with the gun. Mr. Hynek said he was trying to be cool, he guessed. Chairperson Gale asked if Mr. Hynek took the gun to school. Mr. Hynek said no. The police pulled him over for failure to yield, and when they asked if he had anything in the car, he said yes. The gun belonged to a friend. Commissioner Johnson asked if the gun worked. Mr. Hynek said no. He was trying to show off, he supposed. Chairperson Gale asked if the gun was used in the commission of crimes. Mr. Hynek said no. He had gotten it three weeks prior to his arrest. Commissioner Moline asked if Mr. Hynek had any ammunition for it. Mr. Hynek said no.

Mr. Hynek said he was never convicted of any marijuana or drug charges. Chairperson Gale noted the DUI. Mr. Hynek said he was found to be under the influence of THC, which was the chemical in marijuana. Chairperson Gale asked if Mr. Hynek went to trial or pled guilty. Mr. Hynek said he pled guilty. Chairperson Gale asked if Mr. Hynek was under sentence for 18 months of probation, until the end of 2003. Mr. Hynek said no, that was not correct. It took a year to go to court, which was in July 2003, then Mr. Hynek was on probation for 10 or 11 months. He was let off early because his fines were paid, and he had completed his community service and drug/alcohol evaluation. The counselor thought Mr. Hynek had a problem with smoking marijuana, and wanted him to go through a 10-week program, so he did. Chairperson Gale asked if Mr. Hynek received his final discharge in 2004. Mr. Hynek said he thought it was in August 2004, and he sent in his application during September 2004. He was not exactly sure on the dates. Chairperson Gale asked if Mr. Hynek was ever cited for violation of probation. Mr. Hynek said never once.

Chairperson Gale asked if Mr. Hynek was currently employed. Mr. Hynek said yes, he installed new housing duct ventilation for HVAC systems. He had installed ventilation for 9 years. That work did not require a license when he started, but he was in the process of getting his journeyman= s license. Mr. Hynek said he had never been fired from a job for any reason.

Chairperson Gale asked if Mr. Hynek had received his DUIs when driving company vehicles. Mr. Hynek said no.

Chairperson Gale asked if Mr. Hynek had been working since graduation from high school. Mr. Hynek said yes, for three different companies in the same field. He was sick of manual labor work, and his hands and back hurt.

Commissioner Poskochil asked if Mr. Hynek continued to receive counseling. Mr. Hynek said he went to 1-2 meetings per month, when he felt he needed to, but there was nothing scheduled. Commissioner Poskochil asked when was the last time that Mr. Hynek used alcohol or drugs. Mr. Hynek said since March 4, 2004, which was the date he thought he had signed the contract.

Commissioner Poskochil asked if Mr. Hynek had a family. Mr. Hynek said that was probably in his future. Mr. Hynek had no kids.

Commissioner Johnson asked if Mr. Hynek had enjoyed his real estate classes at Randall School. Mr. Hynek said yes, and he got pretty good grades. Commissioner Johnson asked if Mr. Hynek had talked to any brokers. Mr. Hynek said they had been contacting him, but it was not worth talking to them unless he got approval to take the examination.

Chairperson Gale asked if the 10-week course determined that Mr. Hynek was not addicted to alcohol. Mr. Hynek said that was what their diagnosis was, based on how his meetings went. Chairperson Gale asked if there was a propensity for dependency. Mr. Hynek said he believed the counselor was an independent drug/alcohol evaluator, and she felt during her interview that there could possibly be an addiction to marijuana. That was why she told him that he had to go to the 10-week program. Chairperson Gale asked if her concern was marijuana, not alcohol. Mr. Hynek said yes. Chairperson Gale asked how long Mr. Hynek had avoided using. Mr. Hynek said it was a little over a year. Chairperson Gale asked if Mr. Hynek had a network to rely upon for support, or if he attended Alcoholics Anonymous. Mr. Hynek said he went to Alcoholics Anonymous meetings once in a while. It just kind of helped him out to go and listen to others. Chairperson Gale asked if Mr. Hynek had a sponsor. Mr. Hynek said no, he sat in the corner and just listened.

Commissioner Poskochil noted that Mr. Hynek had checked A no@ on the application when it asked for any criminal offense or charge, and asked Mr. Hynek to explain. Mr. Hynek said he should have probably read that a little bit better. All the information was filled out by his mother. Mr. Hynek had looked it over and thought it was fine. Mr. Hynek said he still did not see that part. Commissioner Johnson noted that it was at the top of the page on Mr. Hynek=s right. Mr. Hynek said that definitely should not have been marked no, and he apologized for that.

Commissioner Poskochil asked if Mr. Hynek was currently 26. Mr. Hynek said yes. Commissioner Poskochil asked if Mr. Hynek was 23 at his last offense. Mr. Hynek said yes, and he believed that was his second DUI.

Chairperson Gale said he thought Mr. Hynek was making good progress. He had been heading down the road of trouble, and would have felonies on his record if he had continued down that road. Cumulatively, Mr. Hynek had 7 years of involvement with the law. Chairperson Gale said he thought Mr. Hynek was making good progress, and it sounded like he had stuck to the commitment of the contract. Chairperson Gale was concerned that Mr. Hynek had no support network. When Chairperson Gale served on the Pardons Board, they always wanted to know that there was a network of support to maintain that sobriety. Plus, Mr. Hynek just got off probation a year ago. Plus, Mr. Hynek did not disclose his criminal history, for whatever reason. Chairperson Gale noted that was why the Commission required criminal history background checks. Chairperson Gale noted that Mr. Hynek felt it was an innocent omission. Mr. Hynek said he had been fully aware there would be a criminal history background check. Chairperson Gale said he would like to see another year or two of Mr. Hynek getting his life together, for more assurance that Mr. Hynek was on the right track with drugs and alcohol. When the Commission gave a license, that meant that the public could trust him. Mr. Hynek had been driving under the influence before, and that would put the public in danger. Mr. Hynek had no violent crimes, but the concealed weapon was a potential danger. It seemed that Mr. Hynek was past that now.

Commissioner Johnson agreed with Chairperson Gale. Commissioner Johnson understood that Mr. Hynek had been doing hard physical labor for a long time, but he was only 26. Commissioner Johnson would like to see Mr. Hynek come back in a year. Commissioner Johnson said that Mr. Hynek might be married by then, have a support system, and have another year of a clean record. Commissioner Johnson might vote then to let Mr. Hynek sit for the examination, but he wanted that additional year of a clean record.

Commissioner Poskochil said that, if Mr. Hynek had stopped when he was 19 or 20, he would have voted to let him sit. Commissioner Poskochil felt Mr. Hynek needed more time off probation. The Commission had to be cautious, and not endanger the public.

A motion was made by Grady and seconded by Johnson that Mr. Hynek not be allowed to sit for the examination at this time, but could make another special appearance in a year, if Mr. Hynek contacted staff to request it.

Commissioner Moline noted that he would not be on the Commission in a year, but that it appeared Mr. Hynek would be given a second chance if he continued with a clean record.

Director Tyrrell noted that it was Commission policy that applications were good for one year, and Mr. Hynek= s application would expire in September. The examination fee could be refunded, but he would have to file a new application if the Commission did not waive the requirement. Chairperson Gale said he would want a clean application, filled out accurately.

Commissioner Poskochil noted that letters of support would be good to have with the new application, and perhaps a letter from the counseling place that Mr. Hynek successfully completed the program. The Commission was taking Mr. Hynek= s word for that now. Any documentation of support, to show that Mr. Hynek had made changes in his life, would help.

Director Tyrrell noted that, if Mr. Hynek reapplied and was turned down by the Commission, he would lose his application fee. Director Tyrrell asked if the Commission wanted to allow Mr. Hynek to have another special appearance before another application fee was due. Chairperson Gale said he wanted a current application, and the Commission could refund the fee if he was turned down.

Chairperson Gale noted that the Commission was keeping the door open for Mr. Hynek to get a license, but wanted to have more of a track record on him. Chairperson Gale said he hoped that Mr. Hynek would come back in a year.

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

Director Tyrrell presented an exhibit which included correspondence regarding Ms. McKoy= s special appearance, Ms. McKoy= s salesperson application, information regarding Ms. McKoy= s criminal history, and letters of reference. A copy of said exhibit is attached to and made a part of these minutes. Ms. McKoy was present.

Chairperson Gale reviewed the procedure for informal special appearances.

Ms. McKoy said she took real estate classes at Metro Community College and had been studying real hard for 3-4 months. She was ready to sit for the examination. She had a couple of marijuana tickets on her criminal history.

Chairperson Gale asked at what ages Ms. McKoy had received the tickets. Ms. McKoy said it was when she was 18-21. Chairperson Gale asked if she was charged with possession. Ms. McKoy said yes. She had used marijuana until 4-5 months ago, and had been clean since then. Ms. McKoy said she had been diagnosed with ADHD, and she had read that those not diagnosed in a timely manner had a higher risk of using drugs. She was not diagnosed until she was 20. Ms. McKoy now had goals in her life that she wanted to achieve.

Chairperson Gale asked if Ms. McKoy= s sobriety was due to a court order. Ms. McKoy said yes. She had gotten into trouble 4-5 months ago, and was ordered to take drug and parenting classes and to see a psychologist once a week. Chairperson Gale asked if she had completed the requirements. Ms. McKoy said yes, she had completed everything. Chairperson Gale asked if the charges were discharged. Ms. McKoy said yes, everything was dismissed. Chairperson Gale asked, since Ms. McKoy had a record of several marijuana convictions, what she was doing to maintain her sobriety. Ms. McKoy said she kept busy, worked out every other day, spent time with her son, and did research on investing in property and buying foreclosed houses. Ms. McKoy was taking a class through New Community Development, which would loan her money to start a business if they liked the business plan she was preparing. Chairperson Gale asked if it was a community college. Ms. McKoy said no, it was a program offered through a bank and the Small Business Administration.

Chairperson Gale asked if Ms. McKoy was in a paralegal program. Ms. McKoy said she started that program in 1999, and would like to go back for commercial law instead of litigation. Chairperson Gale asked if she attended business school. Ms. McKoy said she had attended Metro Community College since 1999. She was still not done, and wanted to go back. Chairperson Gale asked on what degree she was working. Ms. McKoy said she was working on her associate= s degree for now.

Chairperson Gale asked if her rehabilitation classes had recommended a support network like Alcoholics Anonymous. Ms. McKoy said no, but she had taken up Narcotics Anonymous classes to take up time in her day. Chairperson Gale asked if she was in group therapy. Ms. McKoy said no, the drug classes and psychologist were enough. Chairperson Gale asked if there was a course of treatment for ADHD. Ms. McKoy said no, but she had been taking medicine for 2 years, because she was not diagnosed until she was 20.

Chairperson Gale noted that Ms. McKoy apparently felt that her marijuana use was to compensate for ADHD, and asked if the medicine had replaced marijuana. Ms. McKoy said yes. She was hyper before, and the marijuana had calmed her down, and now the medicine worked fine.

Chairperson Gale noted that Ms. McKoy had a strong telemarketing background, with public contact. Ms. McKoy said yes. The problem with telemarketing was sitting still for too long. Ms. McKoy needed variety, because she could not say and do the same thing over and over, for 8 hours a day.

Chairperson Gale asked if Ms. McKoy had completed her real estate classes. Ms. McKoy said yes. Chairperson Gale asked if Ms. McKoy had a strong interest in real estate. Ms. McKoy said yes, that was where she wanted to be.

Commissioner Moline noted that a recommendation letter said Ms. McKoy had a strong family background in real estate. Ms. McKoy said her father was a contractor, and her grandfather was an architect who built several buildings in Omaha. Commissioner Moline asked if Ms. McKoy had family support. Ms. McKoy said her family thought her interest in real estate would take her a long way. Chairperson Gale asked if anyone in her family was licensed. Ms. McKoy said no, it was more construction.

Commissioner Johnson asked if Ms. McKoy had talked to brokers. Ms. McKoy said yes, she was meeting with a broker tomorrow about an internship.

Commissioner Moline asked about the YWCA= s Family Futures program. Ms. McKoy said that was information technology classes which lasted about a year, and provided hands-on computer experience.

Commissioner Shepard asked Ms. McKoy about the child neglect charge. Ms. McKoy said that was a big misunderstanding. Ms. McKoy was staying with her mom at the time. She had been studying downstairs, and took a break at midnight. She drove down the street, and her son followed her out of house and walked down the street. He went into temporary state custody. That charge brought her to drug classes and the psychologist, and the charges were dismissed after she completed the classes.

Commissioner Shepard asked if Ms. McKoy had not used marijuana for four months. Ms. McKoy said it was four or five months. Commissioner Shepard asked if Ms. McKoy took classes after being picked up in November 2004. Ms. McKoy said yes.

Commissioner Moline asked who was Mr. Williams, who had written a reference letter. Ms. McKoy said he was a real close friend of the family. Commissioner Moline noted that her name was wrong in another reference letter. Ms. McKoy said the person who wrote it was rushing, and got her name wrong.

Chairperson Gale noted that a license was a very special privilege, like an attorney or CPA license. When it was issued by the Commission, it meant that the Commission was saying that the applicant was qualified to deal with the public fairly and honestly, without risk. Ms. McKoy did not have a felony conviction, but there was a pattern of misdemeanor conduct regarding marijuana and paraphernalia. Ms. McKoy had been candid with the Commission, and it sounded like the medicine might be a replacement for her dependence on marijuana. Chairperson Gale said the Commission had needed to talk to Ms. McKoy to assess whether she was ready for a license now, and was not reverting to drug use. Chairperson Gale noted that Ms. McKoy had continued to go to school and work, in spite of her drug use, and had not been using for 4 months. Ms. McKoy said that time had been flying by, and it had actually been since September. Chairperson Gale clarified that Ms. McKoy had no court supervision or drug use for the past 8 months. Ms. McKoy said that was correct.

Commissioner Johnson noted Ms. McKoy= s telemarketing background, but that she had not been working since December 2001. Ms. McKoy said she had odd jobs here and there, for two weeks or so, but that was not worth putting on a resume.

Commissioner Poskochil asked if Ms. McKoy realized that marijuana was illegal. Ms. McKoy said yes, that was why she was going through the drug program. Commissioner Poskochil noted that Ms. McKoy had been clean for 8 months, and asked if the medication was a substitute for the marijuana. Ms. McKoy said yes. Commissioner Poskochil noted again that it was illegal to use marijuana. Ms. McKoy said yes sir, that was why she was going through this now.

Commissioner Grady asked where Ms. McKoy was at in her paralegal studies. Ms. McKoy said she had about a year= s worth of studies left. She wanted to do commercial law, instead of litigation.

Commissioner Shepard said he liked to see a longer time period of no drug use or convictions, to make sure the pattern was not continuing. In his opinion, he would want to see about two years of a break in the pattern, where Ms. McKoy remained clean and had no further arrests. Commissioner Shepard said he thought Ms. McKoy was off to a good start, but wanted to see more than 8 months of non-usage, due to the number of convictions.

Ms. McKoy asked if there was more she could do to assure the Commission that she would not go back to usage, such as more drug counseling or testing. Ms. McKoy said she did not have a year or two to wait. Commissioner Shepard said she needed the time, in his opinion, but he had just one vote.

Chairperson Gale asked if Ms. McKoy had been going to school for the past two years. Ms. McKoy said yes, that was her focus. Ms. McKoy was on public housing and assistance while going to school. She was renting to own now, and was not on public assistance. Chairperson Gale asked if it was her priority to finish her degree. Ms. McKoy said yes, to get a career going.

Chairperson Gale said he knew how much Ms. McKoy would like to get ahead, but her case was similar to a case earlier today. She had recent marijuana and child neglect charges in 2004, and had only been off marijuana for 8 months. Ms. McKoy was on the right track and was doing very well, in moving forward with her life and not letting drugs divert her from her goals. It would be good to know that the medicine she was taking had proven to be a good substitute. Chairperson Gale noted that Ms. McKoy did not have a support system, but might not need it with the drug substitute. Ms. McKoy said that she had her family, which was all the support she needed. They gave her lots of love and compassion.

Chairperson Gale said he thought another year would be appropriate to establish that Ms. McKoy was free from addiction or use, and had taken to heart the lessons from the court regarding her direction in life. Time flies, as Ms. McKoy had noted, and she had already gotten past 8 months. If she continued on this track, Chairperson Gale would feel that another year free of charges or drug involvement would show worthiness to hold a license.

Ms. McKoy said that her opinion was that she had been no threat to anybody, in all her years of using. She had never tried to kill anybody, and had no assaults or DUIs. Ms. McKoy asked how she posed a threat. Commissioner Moline said that, when members of the public were in her automobile, she was responsible for their safety. The Commission required a number of years between drug or alcohol use and licensure. People on drugs were a hazard to society and their clients. One year was a very quick turnaround. If this had been a felony, chances were good she would never get a license, or would have to wait 5-10 years. This was just a year that she had to stay off drugs and get things together. Ms. McKoy said she could not get her life together without a job.

Chairperson Gale said that Ms. McKoy was asking for a very special privilege from the state of Nebraska. Licensees had to earn it, and could not just demand it. Chairperson Gale said he wanted her to someday have a license, but he was not ready to grant one to her yet. Ms. McKoy was almost there, and was halfway across the bridge, but the Commission could not just give her a license. Chairperson Gale said he would support her application in a year. In the meantime, Ms. McKoy should seek employment, establish an employment record, and put in more class time. Ms. McKoy was not quite there yet. It was the Commission= s duty to citizens to not just hand out licenses freely. Ms. McKoy said that was better than a flat-out no. Commissioner Moline agreed, and noted that the Commission did say no a lot. Chairperson Gale said that some people were told to not come back, but in her case, the Commission was saying she was almost there.

A motion was made by Johnson and seconded by Grady that Ms. McKoy not be allowed to sit for the examination at this time, but could make another special appearance in a year, if Ms. McKoy contacted staff to request it. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Chairperson Gale said that Ms. McKoy had conducted herself well, and had a lot of character. Chairperson Gale thought she had a great future, and hoped she would come back in a year.

Director Tyrrell noted that Ms. McKoy would need to reapply next year. The Commission could consider a fee waiver if the license was denied at that time. Staff would refund the $115 she had paid for the examination.

Director Tyrrell presented an exhibit consisting of the Commission= s expense reimbursement form. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that some Commissioners had suggested raising the daily meal allowance. The maximum is currently set at $30 for in-state travel, and $45 for out-of-state travel, which was a limit that Commission had imposed upon itself. There was no limit in state law. The state only required that a meal log must be kept, and that a receipt must be provided for any single meal over $75. It was the state= s position that you should be reimbursed for what you spend.

Commissioner Moline asked if the limit applied to staff as well. Director Tyrrell said yes. Commissioner Moline asked if trust account examiners were trying to travel on $30 per day. Director Tyrrell said yes, and they did it pretty well. There was no reason not to raise the limit, if the Commission wanted to raise it. Paul Carlson at DAS had been adamant that the Commission did not have to have a limit, and it sounded like no other agency had limits.

Director Tyrrell noted that he did not expect somebody to go to Grand Island and come back with a receipt for a $75 meal. If he felt something was out of line, staff might call and ask about it. If a receipt looked like it was for two meals, it would be questioned. Director Tyrrell did not see why the Commission should not do what rest of state did, according to Paul Carlson.

Commissioner Grady asked if it would be helpful to specify what was included. Director Tyrrell noted that the state did not reimburse for alcohol, and the $75 was for the meal only, not including the tip. Tips were submitted under miscellaneous expenses.

Commissioner Moline said he thought the limits were pretty low, but he did not think unlimited was wise. Director Tyrrell noted that a meal log was still needed, and a receipt was only required for meals over $75. On trips, it was pretty common to spend $10 on breakfast, $15 on lunch, and $35 on dinner. It was Director Tyrrell= s responsibility to question excessive amounts, and expenses would have to be within reason.

Commissioner Johnson noted that, if cost of living increases had been made since 1980, that would be a lot. Commissioner Poskochil asked if the Commission should make it $40/60. Commissioner Moline said he thought $50/100 would be better. Commissioners could not travel on less, and gave an example of a $22 breakfast buffet. Director Tyrrell agreed that the limit was low. Commissioner Moline said that, for travel within Nebraska, $50 was reasonable.

A motion was made by Moline and seconded by Grady to change the Commission= s meal reimbursement limits to $50 for in-state travel, and $100 for out-of-state travel, effective July 1, 2005.

Commissioner Moline said he hoped staff would bring this issue back to the Commission every 3-5 years for adjustment.

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

Director Tyrrell noted that a Commissioner had suggested getting business cards for Commissioners. Director Tyrrell noted that the Commission used to get them, and decided to discontinue them some time prior to Commissioner Moline's appointment. It was not a big expense, at $24 for 500 and $17.50 for 100.

Commissioner Shepard said that he had asked Director Tyrrell to check into business cards. It would have been nice to have them on occasion, especially at ARELLO meetings, if it was not a big expense. They would have to be printed only once, and would be good for 6 years. Commissioner Shepard would like to have them, but it was not necessary.

Chairperson Gale agreed that they would be nice to have. Commissioner Johnson said it was a nice idea, and he could go either way. He still had a full box from when he was President of the Omaha Area Board of REALTORS7 . They were nice to have in some cases.

Director Tyrrell noted that the minimum order was 100, and the Commission used to get 500.

Chairperson Gale said he did not need any, but could see doing it if the other Commissioners had use for them.

Commissioner Shepard said it seemed like he was soliciting business if he used his own.

Commissioner Moline said it should be left up to each Commissioner.

A motion was made by Shepard and seconded by Moline that the Commission purchase business cards for those Commissioners wanting them. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Director Tyrrell presented an exhibit consisting of the draft article on the services required of licensees under the License Act and Agency statute. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted a couple of minor proposed changes, and that they were not substantive. Counsel Widger had drafted the article because of her familiarity with agency law. The article did not try to get into a dogfight with the Department of Justice regarding A minimum services,@ but the issue was mentioned as a reason for developing the article.

Commissioner Moline said that staff and Counsel Widger had done a wonderful job of drafting the article. It was important to emphasize that licensees had to present offers, not just put a listing in the Multiple Listing Service and forget it. That was an issue of protection of the public. Commissioner Moline noted that the Governor of Oklahoma recently told the Department of Justice that it was a state law and a state matter, and signed the law in spite of their objections.

Commissioner Johnson said he also thought the article was well written. Commissioner Johnson asked if the reference to rebates should be explained any further, since a rebate could be a violation if the other person was not licensed. Commissioner Johnson was concerned that licensees would think that they could give rebates whenever and to whoever they wanted. Director Tyrrell said he would try to reword that with Counsel Widger, and would call Commissioner Johnson with the changes.

Consensus of Commission was to publish the article in the next Commission Comment, with the changes noted during discussion.

Director Tyrrell reviewed legislation of interest to the Commission.

No action was necessary on this report.

Director Tyrrell presented an exhibit consisting of the registration form for the ARELLO District Meeting, which will be held July 17-19, 2005, in Nashville, Tennessee. A copy of said exhibit is attached to and made a part of these minutes.

Commissioner Johnson was the only Commissioner planning to attend.

No action was necessary on this report.

Director Tyrrell noted that the amendments to Title 299, Chapter 2, were approved by the Attorney General= s office on June 8, 2005. The amendments were currently at the Governor=s office.

No action was necessary on this report.

August 24-25, 2005 - Staybridge Suites, Lincoln

September 22-23, 2005 - Staybridge Suites, Lincoln

Recesses and Adjournment

At 10:43 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 11:00 a.m.

At 12:17 p.m., there being no further business to come before the Commission, a motion was made by Moline and seconded by Poskochil that the meeting adjourn. Motion carried with Grady, Johnson, Moline, Poskochil, Shepard, and Gale voting aye, and with Strand 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 June13, 2005, meeting of the Nebraska Real Estate Commission were available for inspection on June 22, 2005, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director