Acting Chairperson Moline convened a meeting of the Nebraska Real Estate Commission at 9:04 a.m. on August 24, 2005, in the Staybridge Room of the Staybridge Suites, located at 2701 Fletcher Avenue in Lincoln, Nebraska. All of the members of the Real Estate Commission were present, with the exception of Chairperson Gale. Also present were Director Les Tyrrell, Deputy Director for Education Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund. Neal Stenberg, Special Assistant Attorney General and Counsel to the Commission, was present for the discussion on hiring pre-hearing conference officers.

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 Moline reported that all Commissioners had been notified of the meeting simultaneously, in writing, and that a proposed tentative agenda accompanied the notification.

Acting Chairperson Moline 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 Moline 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 Poskochil and seconded by Strand to adopt the final agenda as presented. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

The minutes of the Commission meeting held on June 13, 2005, were considered.

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

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

The cash fund balance as of June 30, 2005, was $878,697.82, which compared to a cash fund balance of $797,334.13 on June 30, 2004.

The cash fund balance as of July 31, 2005, was $847,721.29, which compared to a cash fund balance of $757,958.03 on July 31, 2004.

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

Director Tyrrell presented the final Renewal Report, which showed renewals as of June 30, 2005. A copy of said report is attached to and made a part of these minutes.

No action was necessary on this report.

Director Tyrrell presented the Budget Spread for Fiscal Year 05-06. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell noted that there would be an adjustment in the computer expenditure sections. Director Tyrrell decided to contract with the Communications Division to provide server and database support, rather than replace the servers currently maintained in the Commission office. Communications will house the servers, do all backups, and address all security issues for approximately $900 per year. The file server was done on Monday, and the database will be done in September.

No action was necessary on this report.

Director Tyrrell presented a Time-Share Registration for Private Quarters at Porto Cima, A Condominium, and a Retirement Community Registration for The Grand Lodge at the Preserve - Phase II, and consolidation under The Grand Lodge at the Preserve. A copy of said report is attached to and made a part of these minutes.

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

Deputy Director Hoffman presented for ratification the June and July Examination Reports, copies of which are attached to and made a part of these minutes.

After review, a motion was made by Grady and seconded by Shepard to ratify the June and July Examination Reports for the purpose of issuing licenses. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale 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 Pre-License Education Instructor 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 and discussion, a motion was made by Shepard and seconded by Johnson to ratify the reports. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

Deputy Director Hoffman presented an exhibit regarding a continuing education activity rejection, a copy of which is attached to and made a part of these minutes.

No action was necessary on this report.

No action was necessary on this report.

The following sworn complaints and investigative matters were presented to the Commission:

Item A Complaint # 2005-007 - Elisabeth Jensen vs. Linda J. Medic

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

Item B Complaint # 2005-012 - Grete H. Scholz vs. Gerald Owen Waldrop

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

Item C Complaint # 2005-014

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 Poskochil that the complaint against Respondent B be set for hearing . Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused. A motion was made by Poskochil and seconded by Shepard that the complaint against Respondent A be dismissed without prejudice. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

Item D Complaint # 2005-016 - Thomas E. Grafton vs. William Glenn Krein

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

Item E Complaint # 2005-018

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 that the complaint be set for hearing. After further discussion, the motion was withdrawn. A motion was made by Johnson and seconded by Strand that the complaint be held in abeyance, and that the Commission file a complaint on its own motion regarding dual agency and unworthiness. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

Item F Complaint # 2005-019

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

Item G Complaint # 2004-053, Commission vs. Steven M. Abboud

Deputy Director Mayrose noted that Mr. Abboud had not renewed his license. Since the Commission no longer had jurisdiction over him, the complaint should be dismissed. If Mr. Abboud ever reapplied for a license, he would have to address the complaint at that time.

A motion was made by Grady and seconded by Strand that the complaint be dismissed without prejudice. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline 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 2005-008, Jeffrey E. and Connie A. Williamson vs. Troy Lynn Musick. A copy of said order is attached to and made a part of these minutes. Mr. Musick was not present.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the order, which had been signed by Mr. Musick. 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 Shepard and seconded by Poskochil to enter into the order as corrected. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

There were no hearings scheduled for the meeting.

Acting Chairperson Moline reviewed the procedure for informal special appearances.

Mr. Vampola said that, a lot of years ago, he was in a drug situation of using and getting drugs for someone else. The other person got caught, and set him up. Mr. Vampola wound up pleading guilty to possession, and was sentenced to 1 year. He served the six months required, and had been clean and sober for a lot of years now. Mr. Vampola said he put in for a pardon a week ago, and was approved for a hearing on September 21. His sentencing judge said he saw no problem with it, and said to put his name down. The conviction will never be gone, because it will always be in his memory, but Mr. Vampola wanted to move on.

Acting Chairperson Moline asked when the conviction happened. Mr. Vampola said it happened in 1992, and was over in November 1993. Acting Chairperson Moline asked what Mr. Vampola had been doing since. Mr. Vampola said he worked in a can factory, and lost some fingers in an accident. Workers compensation paid for his college, and he got a business degree. About a year ago, Mr. Vampola finished a year of appraisal work, but he really wanted to go into real estate.

Acting Chairperson Moline noted that Mr. Vampola had graduated college with honors. Mr. Vampola said he had taken school real seriously, and had worked real hard at it, which was how he did everything. He was proud of his accomplishments, and his instructors had been supportive. It seemed like everything that had happened to him was for a reason.

Commissioner Johnson asked if Mr. Vampola had talked to any employing brokers. Mr. Vampola said yes, one would be happy to have him after Mr. Vampola passed the examination. Commissioner Johnson asked if Mr. Vampola had any problem with the appraiser test. Mr. Vampola said he did not take the test, because he was at the apprentice level. He had done over 400 appraisals, but was short one year of experience to get certified. He had called every appraisal company in Lincoln and Omaha, to get in the rest of the time required to be licensed, but nobody needed help.

Commissioner Poskochil said he appreciated the letters of support for Mr. Vampola, and noted there was one from his ex-wife.

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

Commissioner Grady asked if the motion should specify that could happen after Mr. Vampola received a pardon. Commissioner Strand said that was not a part of his motion. He did not want to make a license contingent on receiving a pardon.

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

Acting Chairperson Moline reviewed the procedure for informal special appearances.

Ms. Cary said she had a felony charge in 2003 for possession of a controlled substance. She had completed probation, a treatment program, and parenting classes. Acting Chairperson Moline asked if she had been using drugs herself. Ms. Cary said the drug she got caught with was not the one she used, and she had not realized the seriousness of what two pills would do. Acting Chairperson Moline asked what Ms. Cary had used herself. Ms. Cary said she used marijuana. Acting Chairperson Moline asked if she had stopped. Ms. Cary said yes, probably since last March. She had just graduated from probation on July 30. Her probation officer had told her to not come in for her last appointment, because she had completed everything.

Commissioner Grady asked if Ms. Cary was a single parent. Ms. Cary said yes.

Commissioner Shepard asked for clarification on when Ms. Cary stopped using marijuana. Ms. Cary said it was a year ago last March.

Commissioner Poskochil asked if Ms. Cary had any other charges or arrests regarding drugs. Ms. Cary said no.

Commissioner Strand noted that it was rare to see a felony conviction with a sentence of probation only. It had been only a short time since she was off probation, and the Commission liked to see plenty of time of being clean. Commissioner Strand said it seemed the courts must have thought it was only a moderate offense. Ms. Cary said she had never ever been in trouble otherwise, and that may be why.

Commissioner Shepard said he thought Ms. Cary was on the right track, but his biggest concern was the brief time from the end of probation to today. It was just a time factor, because he wanted there to be enough time to make sure she had no future problems. Commissioner Shepard said he thought the rest of the Commissioners were also having trouble with it.

Commissioner Poskochil asked if Ms. Cary was currently employed. Ms. Cary said she did market research surveys over the phone, to assess whether people wanted to spend money on a product before it was produced. Commissioner Poskochil asked how she liked it. Ms. Cary said it was a job. Commissioner Grady asked if she worked full time. Ms. Cary said she worked 20 hours per week, and took care of her daughter.

Commissioner Johnson asked if she had been counseled about being a single parent with a small child, and that it could be difficult to get started in the real estate business. Ms. Cary said her mom helped her out a lot.

Commissioner Grady said he was concerned about the timing. He did not know what the magic date was, but he felt the Commission should not approve Ms. Cary to sit until more time had passed without problems. Acting Chairperson Moline said more time would show her track record, and whether Ms. Cary had changed her life and things were going in right direction. Commissioner Poskochil said he agreed, and having more letters of support would help him approve her to sit. All Ms. Cary had provided was one letter.

Commissioner Strand said he was dwelling on the court sentence of only probation, which was completed with rave reviews. He agreed that the Commission wanted licensees of integrity and ability. If the possession charge was for two pills, and she had completed probation and cleaned up her act, Commissioner Strand would err on the side of giving people a chance.

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

Commissioner Johnson noted that Ms. Cary had done some work that was not all that exciting to her. He noted that she could do other things for a real estate firm, and learn a lot about the industry, without a license. That would allow her to get more comfortable with real estate. Commissioner Johnson would like to have more time pass since Ms. Cary was off probation, which was basically the way the Commissioners treated everybody. If she got some real estate experience and came back in a year with a good record, he would probably be willing to vote yes at that time.

Commissioner Grady said that a larger support group who could attest to fact that she was on the straight and narrow would also help to sell her case.

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

Acting Chairperson Moline noted that, when Ms. Cary came back before the Commission, she should bring letters of support and be able to show what she had accomplished. She may have the opportunity to sit for the examination then, and should talk to staff in six months. Acting Chairperson Moline said it was a great suggestion for her to get experience in real estate.

Ms. Cary asked if she should finish her classes, so that she did not waste the money she had spent, and then wait for six months. Acting Chairperson Moline said that was her call, but if the classes were completed, she would be ready to go. She could decide then whether she wanted to review for the examination on her own or in a class. Acting Chairperson Moline said she should ask staff for help and guidance.

Director Tyrrell presented an exhibit regarding the statutory authority to fine in other jurisdictions. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell said this was on the agenda as the result of Commission discussions. Director Tyrrell reviewed the exhibit, and noted that any fines levied would go to the Nebraska school fund. Past arguments against it included: 1) if fines were set in stone, there was a disparate impact of a $1000 fine to a small or large firm; and 2) the Commission would need to develop an equitable system. That was probably why it had not been done in the past. There were agencies that levied fines in Nebraska and in other jurisdictions. The Commission had good cooperation with county attorneys in prosecuting unlicensed persons, which was usually a misdemeanor with a $100 fine, and the Commission usually did not hear from them again. Nebraska did not have the problem some jurisdictions had with unlicensed persons. Director Tyrrell could give arguments on both sides, and would do whatever the Commission decided.

Commissioner Grady asked if the $25 per month late renewal fee went to the school fund. Director Tyrrell said he did not know why, but it stayed with the Commission.

Commissioner Johnson said he was neutral on the issue, and could vote either way. Previous Commissioners had spoken to him in opposition of fining. The issue had not come up in a while. Acting Chairperson Moline asked what reasons had been given to oppose fining. Commissioner Johnson said it did not really have that much effect on the performance of licensees fined. Director Tyrrell said that a complaint would have to go to hearing in order to levy a fine, unless there was a stipulation and consent order. Some jurisdictions had authority for summary judgment.

Commissioner Strand said that, if it streamlined the process for nit-picky stuff with a schedule of fines, it could work. He would not want to set every complaint for hearing in order to collect a fine. Commissioner Strand wanted a model from other jurisdictions for a streamlined process. Acting Chairperson Moline asked if it should be like a traffic violation, where a person could pay the fine or go to court. Commissioner Strand said that was right. Director Tyrrell said he did not know if the Legislature would want to give up a finding of probable cause. Commissioner Strand said that, if the Commission wanted, staff could research the 41 jurisdictions with fining authority for the best model, rather than invent it ourselves.

Commissioner Poskochil said he would not want to get to the point of small fines taking away from the seriousness of the violation. Licensees might think violations were no big deal if they just had to pay a $50 fine. Acting Chairperson Moline said it should go along with a censure and additional continuing education. Director Tyrrell said that, if there was a censure, then probable cause was required.

Commissioner Poskochil said the Commission did not know if the other jurisdictions were happy with having fining authority. Director Tyrrell said he could ask, but there were not many directors who would say it was not good if their Commissioners had decided to fine. There was probably more disagreement among Commissioners than between the Commission and the director.

Commissioner Shepard noted that, if the Commission was thinking fines would be a deterrent, $25 or $50 was not much of a deterrent. If the Commission wanted an automatic fine for examiners finding forms violations, it would open a whole can of worms. If there were not current massive problems, Commissioner Shepard would want the Commission to think and talk about it for a great while before doing it. Director Tyrrell said that raised a good point, and that the Commission would probably need more proof than for staff to say that a form was not in a file.

Commissioner Shepard said the Commission could have the option to fine, but did not have to use it.

Commissioner Grady said it might force licensees to do things right, and to realize they could not change dates, must get changes initialed, etc. Commissioner Grady liked the idea of finding out more about the experiences in other jurisdictions.

It was the consensus of the Commission to ask staff to find out more details on how other jurisdictions handled fines against both licensed and unlicensed people.

Director Tyrrell presented an exhibit regarding the potential fee reduction impact. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that the state required the Commission to encumber money to pay bills for the previous fiscal year. The Commission had approximately $26,000 in encumbrances, for bills incurred prior to July 1. Director Tyrrell reviewed the exhibit, and noted that any new license fee change would go into effect January 1, 2006.

Acting Chairperson Moline noted that the Budget and Finance Subcommittee had met prior to the meeting. The Commission had wanted to stop building the cushion of money, and this fee reduction would bring the Commission close to that. The Budget and Finance Subcommittee recommended a $10 reduction in renewal fees for 2006, and new license fees effective January 1, 2006.

After discussion, a motion was made by Shepard and seconded by Johnson to approve a $10 reduction in renewal fees for 2006 and new license fees effective January 1, 2006. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

Director Tyrrell presented an exhibit regarding the hiring of hearing officers. A copy of said exhibit is attached to and made a part of these minutes.

Acting Chairperson Moline asked if Chairperson Gale wanted to do this on every case. Counsel Stenberg said no, because the process would not be necessary on relatively simple cases. Both parties would have the option of requesting a pre-hearing conference after the notice of hearing. It might be useful when there were complex legal questions, significant discovery, or complicated cases. Both sides would be invited to say whether they felt a pre-hearing conference was necessary or useful, and could oppose having a pre-hearing conference.

Commissioner Johnson asked how pre-hearing conferences would be handled. Counsel Stenberg said most would be conducted by conference call, since people were spread out all over the state. The parties would submit exhibits and witness lists in advance of the pre-hearing conference, so the parties and the pre-hearing officer would have them. The pre-hearing officer would prepare the final order regarding legal issues, exhibits, and witnesses. A pre-hearing conference provided for cooperative interaction between the parties. Counsel Stenberg would probably do the bulk of the work, and would make sure any needed work got done. If there were unresolved issues, they would be considered at the pre-hearing conference. It may take some experimentation to see how it works.

Counsel Stenberg said it was possible for a smoking gun exhibit or surprise witness to come up, since the Commission operated under the Administrative Procedure Act and was not bound by strict rules of evidence, unless requested by counsel. The Chairperson would probably permit it to come into evidence, unless it was seriously prejudicial or there was no excuse for late submittal. If it was something that only came up later, it would probably be allowed. If it was significant, the Commission might have to continue the hearing to allow the other party to address it. That was the same process currently used.

Commissioner Strand said he had been in opposition to pre-hearing conferences from the start, and did not see a need for them on this Commission. It may seem like a contradiction that the Commission took hearings seriously, but that the informality helped him as a layman to know what was going on. Some things happened spontaneously that helped the Commissioners understand the question at hand. Commissioner Strand did not know whether the Commission should address this issue when Chairperson Gale was gone.

Acting Chairperson Moline noted that it was an agenda item. People had been bending his ear, and two-thirds of them were not happy with it. Acting Chairperson Moline asked if strict rules of evidence would apply. Counsel Stenberg said it could be applied, and could be invoked by either side three days in advance of the hearing. Counsel Stenberg said he agreed with Commissioner Strand, that being informal helped. A pre-hearing conference would not make it more formal. Director Tyrrell noted that less than approximately 5% of all hearings were held with strict rules of evidence, in all his time with the Commission. It was generally only done with complex cases, when revocation was on the line.

Commissioner Shepard asked if it boiled down to being a time saver for the Commission. Commissioner Poskochil asked if it was more for the Chairperson. Counsel Stenberg said that was part of it, so things would be well-organized, and make hearings go more smoothly and more quickly.

Commissioner Johnson noted that his observation of Chairperson Gale was that he did not like to have exhibits come before him when he had not seen them before. That was just his observation, which may be wrong. Counsel Stenberg said that was part of it, because Chairperson Gale wanted to be informed and do a good job of running the hearing. He could do a better job with fewer surprises, and would like to have legal questions identified. It was not like a court of law, but sometimes there were issues of statute interpretation as to whether there was a violation or not.

Acting Chairperson Moline said his concern was approving six pre-hearing officers, if this was only needed from time to time. Director Tyrrell said the Commission was approving these people to be contacted by Chairperson Gale as needed. Acting Chairperson Moline clarified that it was not six to handle the workload. Director Tyrrell said no, these were just the people with whom he initially chose to enter into a contract, so the Commission would be good to go when needed. Commissioner Strand asked why they would not be contracted on a case-by-case basis. Director Tyrrell said the Commission could do it that way, but they would have to wait for the next Commission meeting to approve a pre-hearing officer, which would move the hearing to at least the Commission meeting after that.

Commissioner Poskochil asked how many pre-hearing conferences Chairperson Gale was envisioning in a year. Counsel Stenberg said he could not speak for him. Commissioner Poskochil questioned why the Commission would get into this, if the Commission had not held two pre-hearing conferences in the past eight years, unless Chairperson Gale wanted to use the option a lot more. Counsel Stenberg reiterated that he could not speak for him on that. The way it was currently set up, somebody had to ask for one. If one was asked for, it would probably happen. Acting Chairperson Moline asked if the Chairperson could order it. Counsel Stenberg said the chairperson did have the authority to order it, even if one was not asked for.

A motion was made by Grady and seconded by Johnson to give Director Tyrrell the authority to enter into memorandums of agreement and understanding, per the exhibit and at the rates negotiated.

Commissioner Poskochil asked where the amounts came from. Director Tyrrell said that State Personnel indicated these were the going rates for grievances. Director Tyrrell estimated two to five hours total for each pre-hearing conference.

Commissioner Grady said it was very clear where Chairperson Gale is at, and there was no point to delay the vote. Motion carried with Grady, Johnson, Poskochil, and Shepard voting aye, with Strand voting nay, with Moline abstaining, and with Gale not participating or voting, being absent and excused.

Director Tyrrell presented an exhibit which consisted of the proposed records retention schedule. A copy of said exhibit is attached to and made a part of these minutes.

A motion was made by Shepard and seconded by Strand to approve schedule as submitted. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

Acting Chairperson Moline noted that current statute required the collection and return of the pocket card for transfers. Licensees were no longer required to carry the pocket card, and tended to lose it. It essentially served as a receipt that the licensee had paid the license fee. Its use was limited, if it was used at all. Director Tyrrell said that some continuing education providers used it to get the license number, so that was one ancillary use. The auditors required that it be turned back in, as a control device. Acting Chairperson Moline said that, in practice, nobody asked licensees to prove they held a license via the pocket card. He did not want to eliminate it, just to eliminate the requirement to return it to the office. Acting Chairperson Moline asked the Commissioners to consider asking staff to develop legislation to call the pocket card a receipt, so that it did not have to be collected for all licensees who transferred, which was a colossal waste of time for the broker, the Commission, and everybody involved.

Commissioner Grady asked how important the pocket card was for continuing education providers. Deputy Director Hoffman said the license number would still be put on the receipt, just not on a pocket card. Director Tyrrell noted that the pocket card would still be generated, with the license number, and just used as a receipt. The law would have to change so that it would not have to be collected. Director Tyrrell would check with the auditors to make sure it would not be required to come in if it was just a receipt.

It was the consensus of the Commission to have staff look into it with the auditor, and bring proposed legislative changes to the Commission for final approval.

Director Tyrrell presented an exhibit which consisted of the proposed errors and omissions insurance contract renewal rates. A copy of said exhibit is attached to and made a part of these minutes.

A motion was made by Strand and seconded by Shepard to approve renewing the contract with Williams Underwriting Group, Inc. for 2006. Motion carried with Grady, Johnson, Poskochil, Shepard, Strand, and Moline voting aye, and with Gale not participating or voting, being absent and excused.

Director Tyrrell presented an exhibit regarding the 2004-2005 objectives. A copy of said exhibit is attached to and made a part of these minutes.

No action was necessary on this report.

Regarding recommendation #1, Acting Chairperson Moline noted that Congressional districts were subject to change, and perhaps the Commission should think ahead and have the Governor appoint representatives at large. Acting Chairperson Moline thought the Governor would be good about picking representatives from across the state, and it was food for thought.

Regarding recommendation #3, Mr. Kammandel said that, as he looked at it today, perhaps applicants from other states should meet the suggested requirement before getting a reciprocal license. However, the Board of Directors had passed it as written.

Regarding recommendation #6, Director Tyrrell noted that the Commission currently required community college course instructors and pre-license classes to be approved. Deputy Director Hoffman noted it was required of the University too, and none of them failed to pass muster with the Commission Guidelines. Acting Chairperson Moline said that this one was already taken care of, then. Director Tyrrell noted that the Commission required that law classes be taught by attorneys, and preference is given for appraisal classes to be taught by appraisers, finance classes to be taught by instructors with a background in finance, and principles and practices to be taught by instructors with a real estate background. The Commission thought it was important for pre-license instructors to have a background in the subject matter they teach.

Mr. Kammandel said the Association wanted law classes to focus on Nebraska law, not case studies. Commissioner Poskochil asked if the Commission had approval on what was taught. Deputy Director Hoffman said the Commission developed the course outlines, and she had not ever heard a complaint about an unqualified attorney. Instructor evaluations were monitored by the Commission and the Department of Education. Occasionally there was a shortage of attorneys in smaller towns, and the Commission had approved temporary instructors.

Commissioner Johnson asked if any other states allowed non-attorneys to teach real estate law. Deputy Director Hoffman said she did not know.

Commissioner Strand asked a rhetorical question of how many licensees would pass the examination 2-3 years into practice. Director Tyrrell said he had mentioned to audiences that the Commission could potentially accept passing the examination instead of continuing education, but there was no support for it. Commissioner Strand said that would be true of almost any licensing examination. Acting Chairperson Moline said it was a question of whether the items on the examination were needed to do the job. Director Tyrrell said they should be, since they were based on a job questionnaire and analysis.

Regarding recommendation #1, Commissioner Poskochil asked how districting was currently done. Director Tyrrell explained the maps in the exhibit. Acting Chairperson Moline said the

Governor would pick good people. Commissioner Strand said the sentiment was to codify it, to ensure representation from agricultural areas.

Acting Chairperson Moline asked what kind of changes would be needed for each recommendation. Director Tyrrell said that #1, #2, and #3 would require statutory changes; #4 would be an agenda item for a new pre-license course, unless it was an application requirement; #5 might require a rule change; and #6 was a guideline that could be changed as an agenda item.

At 12:48 p.m., Acting Chairperson Moline passed the gavel to Acting Chairperson Johnson.

A motion was made by Grady and seconded by Shepard to approve the resolution. Motion carried with Grady, Poskochil, Shepard, Strand, and Johnson voting aye, with Moline not participating or voting, and with Gale not participating or voting, being absent and excused.

At 12:52 p.m., Acting Chairperson Johnson passed the gavel back to Acting Chairperson Moline.

A motion was made by Johnson and seconded by Strand that the Commission go on record as thanking Ms. Burklund, with a great amount of gratitude, for her years of service to the Commission.

Commissioner Johnson said the Commission appreciated her ability to accurately and concisely put together information on what the Commission did, her work coordinating Commission meetings and hearings, and everything else she did for the Commission. Commissioner Johnson said the Commissioners wished Ms. Burklund the best in her future endeavors. Acting Chairperson Moline said it had been a pleasure working with Ms. Burklund, and noted that she always had a smile on her face and was always helpful. He especially appreciated that, and said it had been a pleasure working with her. Acting Chairperson Moline wished Ms. Burklund all the best.

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

Commissioner Johnson attended a panel discussion on minimum services, and the various issues covered were discussed.. There will be another panel on minimum services in Toronto. Commissioner Johnson reviewed law changes and issues from other states.

Director Tyrrell noted that it was rumored that Colorado may eliminate continuing education requirements, and may change the Commission structure.

No action was necessary on this report.

Deputy Director Mayrose said the Investigator Workshop had approximately 45 attendees. Topics included mortgage fraud, deception, internet investing, and report writing. It was a very good session.

No action was necessary on this report.

Deputy Director Hoffman attended the REEA meeting in June. It was well-attended. The biggest opportunity at REEA meetings was for education directors to get together, because they were often not active in ARELLO. Topics included the struggles with post-license education implementation, and disciplining those licensees who did not get it done; minimum services; and applying PhD research to the classroom. The spotlight on speakers allowed education directors to see the presentation style and methods of national providers for 20 minutes each.

No action was necessary on this report.

Director Tyrrell presented the Trust Account Examination Evaluation Report - Second Quarter 2005. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell reviewed some of the comments received, and how the situations were handled.

No action was necessary on this report.

Director Tyrrell noted that the amendments to Title 299, Chapter 2, completed the approval process and were effective June 22, 2005.

No action was necessary on this report.

Director Tyrrell presented an exhibit which included information on the upcoming ARELLO Annual Meeting. Commissioners Grady, Johnson, and Shepard indicated that they plan to attend.

No action was necessary on this report.

September 22-23, 2005 - Staybridge Suites, Lincoln
October 13-14, 2005 - Ramada Limited South, Lincoln
November 16-17, 2005 - Ramada Limited South, Lincoln
January 18-19, 2006 - Staybridge Suites, Lincoln

Recesses and Adjournment

At 10:10 a.m., Acting Chairperson Moline declared a brief recess, and reconvened the meeting at 10:19 a.m.

At 11:54 a.m., Acting Chairperson Moline declared a recess for lunch, and reconvened the meeting at 12:48 p.m.

At 12:48 p.m., Acting Chairperson Moline passed the gavel to Acting Chairperson Johnson.

At 12:52 p.m., Acting Chairperson Johnson passed the gavel back to Acting Chairperson Moline.

At 1:45 p.m., there being no further business to come before the Commission, Acting Chairperson Moline declared the meeting adjourned.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the August 24, 2005, meeting of the Nebraska Real Estate Commission were available for inspection on August 31, 2005, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director