Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:04 a.m. on May 3, 2006, in the Goldenrod Room of the Ramada Limited South, located at 1511 Centerpark Road in Lincoln, Nebraska. All of the members of the Real Estate Commission were present, with the exception of Commissioner Bohrer, who was absent and excused. Also present were Deputy Director for Education Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Wade. Neal Stenberg, Special Assistant Attorney General and Counsel to the Commission, was present for the joint hearing.

Deputy Director Hoffman presented a public notice and proof 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.

Deputy Director Hoffman noted that agenda item 14c 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 Griess to adopt the final agenda as presented. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye, and with Bohrer not participating or voting, being absent and excused.

The minutes of the Commission meeting held on March 23, 2006, were considered.

After review, a motion was made by Griess and seconded by Shepard to approve the minutes as presented. Motion carried with Griess, Johnson, Poskochil, Shepard and Gale voting aye, with Bohrer not participating or voting, being absent and excused, and with Grady not voting having not been in attendance at the March Meeting.

Deputy Director Hoffman presented the Receipts and Expenditures Report for March. Copies of said report is attached to and made a part of these minutes. Deputy Director Hoffman noted that an explanation page was included on each report.

Regarding the March report, Deputy Director Hoffman noted that any unusual items were set forth on the explanation page.

The cash fund balance as of March 31, 2006, was $1,013,754.09, which compared to a cash fund balance of $995,658.07 on March 31, 2005.

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

Deputy Director Hoffman presented a Time-Share Registration for Horizons at Branson. A copy of said report is attached to and made a part of these minutes.

Chairperson Gale asked which revenue account the Time-Share Registrations are deposited to. Deputy Director Hoffman noted account number 475220 which is Promotional Land Registration Fees are where the fees get deposited.

After discussion, a motion was made by Johnson and seconded by Poskochil to approve the report as presented. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye, and with Bohrer 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.

Chairperson Gale asked if this report would indicate if the licensees took the required continuing education course. Deputy Director Hoffman indicated there would be some type of report developed to accommodate the new requirement. Commissioner Poskochil asked how the non-resident applicants are getting notified of the new requirement for continuing education. Deputy Director Hoffman noted that the packets being sent out and the website has a notification of the continuing education requirement included. Deputy Director Hoffman also noted the number of licensees that were licensed in Nebraska from out of state in 2005 were 37 brokers and 48 salespersons, therefore the volume is expected to be manageable.

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

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

Chairperson Gale asked if the pass/fail rate is consistent. Deputy Director Hoffman pointed out the graph within the exhibit shows consistency. Deputy Director Hoffman indicated the changes to the statutes have been sent to the examination company and are being put in the application packets for the applicants should they be testing after the 14^th of July.

After review, a motion was made by Shepard and seconded by Grady to ratify the March Examination Report for the purpose of issuing licenses. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye, and with Bohrer 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.

After review, a motion was made by Grady and seconded by Johnson to ratify the reports. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye, and with Bohrer 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.

Deputy Director Mayrose 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:

Deputy Director Mayrose presented a Joint Stipulation and Consent Order in the matter of Complaint 2005-066, Kathy Uhler and Terry Harimon vs. Daniel F. Dickinson. A copy of said Order is attached to and made a part of these minutes.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Dickinson. The Order specified a censure plus three hours of additional continuing education in Agency and three hours of additional continuing education in License Law, to be completed within 90 days.

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

A hearing was held on May 3, at 9:30 p.m., in the matter of Complaint #2006-008,
Commission vs. Michelle Lynn Haywood, and Complaint #2006-009, Commission vs. Gene Ward, and Complaint #2006-010, Commission vs. Hobert Eugene Brake. Neal Stenberg, Special Assistant Attorney General and Counsel to the Commission, appeared for the Complainant. Respondents Michelle Lynn Haywood, Gene Ward and Hobert Eugene Brake were present and represented by counsel Shannon Harner of Lincoln. Prior to discussion of this matter, Commissioners Griess and Poskochil recused themselves, thereby nullifying any potential conflict of interest.

After opening statements, Counsel Stenberg and Counsel Harner jointly offered 28 exhibits, all of which were received by Chairperson Gale.

At 11:10 a.m., Chairperson Gale declared a brief recess, and reconvened the hearing at 11:22 a.m.

At 11:55 a.m., Chairperson Gale declared a recess for lunch, and reconvened the hearing at 1:10 p.m.

After closing arguments had been presented, Chairperson Gale declared the hearing concluded and gathered the original exhibits.

The Commissioners reviewed the original exhibits. Commissioner Johnson felt the complaint was a result of an honest mistake. Chairperson Gale asked if the discussion of each complaint should be separate or together. Commissioner Shepard felt they could discuss the complaints together. Chairperson Gale noted that Mr. Brake was the designated broker for a large number of licensees in an expanding office. The first red flag makes you look at the procedures and it seems that Mr. Brake had delegated authority and that corrective measures were already being put in place. Chairperson Gale indicated the wall certificate and pocket card which are mailed on to the branch manager is the process which had been done hundreds of times without problems. With corrections already in place Mr. Ward and Mr. Brake did not appear to be negligent.

Commissioner Grady felt that the complaints should be discussed separately. Commissioner Shepard agreed to discuss them separately. Chairperson Gale indicated that complaint #2006-010 could be discussed first.

After discussion, a motion was made by Grady and seconded by Shepard that Complaint #2006-010 be dismissed. Motion carried with Grady, Johnson, Shepard and Gale voting aye, with Bohrer not participating or voting, being absent and excused, and with Griess and Poskochil not participating or voting, having recused themselves, thereby nullifying any potential conflict of interest.

A motion was made by Johnson and seconded by Shepard that Complaint #2006-009 be dismissed.

Commissioner Grady noted the difficulty of comparing experiences, in his office anytime a new licensee is coming everyone knows when and how it should happen. Commissioner Grady felt there was some neglect shown since this licensee did not follow up on the license. Chairperson Gale felt Mr. Ward thought he could rely on applicants to take care of business, perhaps too much, and this has alerted Mr. Brake and Mr. Ward to follow up as well. Chairperson Gale expressed concern that this is an example that results in a loss of professionalism. Chairperson Gale also felt that Ms. Haywood had personal reasons to get her license activated immediately, as she indicated in her letter, which is not a professional reason and perhaps not intuned to the importance of a professional license.

Motion carried with Grady, Johnson, Shepard and Gale voting aye, with Bohrer not participating or voting, being absent and excused, and with Griess and Poskochil not participating or voting, having recused themselves, thereby nullifying any potential conflict of interest.

With regard to Complaint #2006-008, Commissioner Grady inquired as to what jurisdiction the Commission had if a license was on inactive status. Deputy Director Hoffman noted the Commission had full jurisdiction. Commissioner Grady felt it was appropriate for Ms. Haywood to take additional continuing education courses in license law if she decides to activate her license again. Chairperson Gale felt she showed reckless negligence and a total disregard of procedure to ensure proper licensure. Commissioner Shepard found it interesting that if Ms. Haywood was receiving her license for the first time that she was not excited to see the pocket card and wall license, and was not even looking for it. Commissioner Johnson found it hard to believe that no one in the office asked Ms. Haywood about her pocket card, including her mother who is a licensee and was mentoring her.

A motion was made by Shepard and seconded by Grady that Ms. Haywood is guilty of negligence under Neb. Rev. Stat. 81-885.24(29) negligence. Motion carried with Grady, Johnson, Shepard and Gale voting aye, with Bohrer not participating or voting, being absent and excused, and with Griess and Poskochil not participating or voting, having recused themselves, thereby nullifying any potential conflict of interest.

Chairperson Gale opened the past disciplinary actions envelope. It showed no prior disciplinary action. The Commissioners then discussed the penalty to be assessed.

The Commissioners felt this was an awkward disciplinary phase since Ms. Haywood is on inactive status and her license is not being used. Deputy Director Hoffman noted that Ms. Haywood had entitlement to the license and the Commission could require the continuing education courses to be completed in a certain amount of time.

Chairperson Gale suggested other disciplinary options could be more appropriate such as censuring the license instead of additional continuing education if this was a reckless disregard for the law or procedures in order to cut corners.

Commissioner Shepard felt Ms. Haywood got the message after appearing before the Commission and believes the additional education requirement is appropriate. Commissioner Johnson felt Ms. Haywood displayed a lack of professional concern.

Motion carried with Grady, Johnson, Shepard and Gale voting aye, with Bohrer not participating or voting, being absent and excused, and with Griess and Poskochil not participating or voting, having recused themselves, thereby nullifying any potential conflict of interest.

Chairperson Gale 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, Chairperson Gale directed Counsel Stenberg to prepare the order.

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

The hearing was adjourned at 2:32 p.m.

The hearing scheduled for Complaint #2005-040, Marshall & Jennie Borchert vs. Steven Lee Taylor, was continued to June 15, 2006, at 9:30 a.m.

Informal Special Appearances - none

Deputy Director Hoffman reviewed legislation of interest to the Commission. Deputy Director Hoffman indicated the amended LB819 was passed and to be effective July 14, 2006, and LB1060e passed and the allocated amount for the increase in the cost of health insurance will be added to the Receipts and Expenditures reports for May and June.

No action was necessary on this report.

Information Matters

No action was necessary on this report.

Deputy Director Hoffman presented an exhibit regarding the ARELLO District Meeting, which will be held July 20-22 in Oklahoma City, OK. A copy of said exhibit is attached to and made a part of these minutes.

Deputy Director Hoffman noted the agenda allowed for a one hour seminar on mortgage fraud for those interested. Commissioners Shepard, Johnson, and Poskochil indicated they would be attending.

Deputy Director Hoffman asked that Commissioners planning to attend to fill out the registration form and send it to the Commission office, with a check for the guest registration, if applicable. Deputy Director Hoffman reported that the deadline for hotel reservations is June 19, 2006.

No action was necessary on this report.

No action was necessary on this report.

June 14-15, 2006 - Ramada Limited South, Lincoln

August 24-25, 2006 - Staybridge Suites, Lincoln

October 5-6, 2006 - Ramada Limited South, Lincoln

At 9:25 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 9:30 a.m.

At 11:10 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 11:22 a.m.

At 11:55 a.m., Chairperson Gale declared a recess for lunch, and reconvened the meeting at 1:10 p.m.

At 2:32 p.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 2:45 p.m.

At 3:40 p.m., there being no further business to come before the Commission, a motion was made by Shepard and seconded by Johnson that the meeting adjourn. Motion carried with Grady, Griess, Johnson, Poskochil, Shepard and Gale voting aye, and with Bohrer not participating or voting, being absent and excused.

I, Teresa Hoffman, Deputy Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the May 3-4, 2006, meeting of the Nebraska Real Estate Commission were available for inspection on May 15, 2006, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Teresa Hoffman
Deputy Director