Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:04 a.m. on August 23, 2007, 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. Also present were Director Les Tyrrell, Deputy Director for Education and Licensing Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose and Administrative Assistant Monica Wade. Director Tyrrell introduced Rebecca Hallgren, the recently hired Finance Officer for the Commission, to the Commissioners. Director Tyrrell also reported that the Governor had appointed Robert E. Dover of Norfolk to replace Commissioner Shepard, whose term would expire on August 28.

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 and a copy of the Open Meetings Act were available to the public on the counsel table in the meeting room, and that the procedures followed were in accordance with the Open Meetings Act. Chairperson Gale asked that guests sign the guest list.

Director Tyrrell noted that agenda item 17c had been added since the tentative agenda was mailed to the Commissioners.

After review of the final agenda, a motion was made by Bohrer and seconded by Leisey to adopt the final agenda as presented. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

The minutes of the Commission meeting held on June 28, 2007, were considered.

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

Director Tyrrell presented the Receipts and Expenditures Reports for June and July. A copy of each report is attached to and made a part of these minutes. Director Tyrrell noted that an explanation page was included in each report and a list of items encumbered from Fiscal Year 2006-2007 was included with the July Report.

The cash fund balance as of June 30, 2007, was $716,287.76, which compared to a cash fund balance of $893,555.59 on June 30, 2006.

The cash fund balance as of July 31, 2007, was $643,984.69, which compared to a cash fund balance of $844,242.44 on July 31, 2006.

Chairperson Gale asked if there had been any unexpected expenses in June or July. Director Tyrrell indicated that there were no unexpected expenses in the month of June but noted that in July there was an unexpected expense, the purchase of a new chair. Director Tyrrell explained the encumbrance process and noted that the encumbrance amount of $47,133.21 would be added to the appropriation for fiscal year 2007-2008.

After discussion, a motion was made by Grady and seconded by Griess to file the June and July Receipts and Expenditures Reports for audit. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Director Tyrrell presented the Final Renewal Report for 2007. A copy of said report is attached to and made a part of these minutes.

Chairperson Gale asked if the report was a cumulative report. Director Tyrrell indicated that it was a cumulative report. The renewals are mailed in September of each year and the licensees have until June 30^th of the next year to renew. Commissioner Grady asked if any extensions were given after June 30. Director Tyrrell indicated that after June 30^th, a non-renewed person would become an original applicant and would have to make application and take the examination. Commissioner Leisey asked if the licensees were notified at the beginning of the year if they had not yet renewed. Director Tyrrell indicated that three notices were sent to employing brokers requesting wall license certificates of affiliated licensees - one at the end of December and the other two at the beginning of February and March. One notice was sent to non-renewed salespersons and non-renewed associate brokers at the end of December.

No action was necessary on this report.

Director Tyrrell presented the monthly Budget Spread for Fiscal Year 07-08. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell noted that the budget spread included the June 2007 encumbered amount. The budgeted expenditures for fiscal year 2007-2008 are $1,109,040.21 and the budgeted receipts are $777,470.00. Commissioner Griess asked why the investment interest had been projected to decrease by $10,000.00. Director Tyrrell indicated that the cash fund balance will be less than previous years. Commissioner Griess asked why there had been a miscellaneous adjustment of approximately $5,000.00 the previous fiscal year. Director Tyrrell explained that the miscellaneous adjustment had been an erroneous deduction made by State Accounting in Fiscal Year 2005-2006 and was not credited until the 2006-2007 Fiscal Year and would not be reoccurring.

Chairperson Gale asked if the budgeted receipts for fiscal year 2007-2008 were based on an average or a percentage. Director Tyrrell explained that the actual projection was based on what had been received in fiscal year 2006-2007 with the exception of approximately two percent. Chairperson Gale asked if the budget was a conservative or generous projection. Director Tyrrell indicated that he did not consider the budget to be either. The anticipated receipts were based on the 2006-2007 numbers and expenditures were as approved during last year= s budget process. Director Tyrrell explained that in Sepember of each year the cash fund balance was at its lowest level of the year until revenue began to increase in October due to receipt of renewals. He also indicated that should the cash fund balance ever become zero the Commission would cease to exist. Commissioner Leisey asked when a determination needed to be made to raise the renewal fees for 2008 and new license issuance fees. Director Tyrrell indicated that renewals were typically mailed to licensees the first half of September each year. Commissioner Poskochil asked when the renewals would be printed. Director Tyrrell noted that the renewals would not be printed until the fee had been determined.

Director Tyrrell indicated that the Commission had reduced the new license issuance fees and the renewal fees for the past three years and that the cash fund balance had been reduced to the amount that the Commissioners had determined suitable. Director Tyrrell also indicated that, in the recent past, revenue had increased due to the increased number of applicants. However, that trend may not continue and if the fees were not increased the cash fund balance may drop below the amount the Commission felt suitable. Commissioner Grady asked if the Commission= s Budget Subcommittee had scrutinized the expenditures. Director Tyrrell indicated the Subcommittee had reviewed the numbers. He also indicated that all expenditures were discretionary with the exception of salaries, which the Commission is obligated to pay. Commissioner Poskochil asked if the discussion was actually on the budget for fiscal year 2007-2008 or if the discussion had changed to consideration of the increase in renewal and license fees. Chairperson Gale indicated that the discussion should have been on the budget rather than on the fee increase but if there were no other comments on the budget then the next agenda item could be discussed.

No action was necessary on this report.

Director Tyrrell presented an exhibit in which the Budget and Planning Subcommittee recommended an increase in the renewal fee and license issuance fee. A copy of said exhibit is attached to and made a part of these minutes. (Note: Some discussion on this item appears as part of the previous discussion.

Director Tyrrell noted that the Budget Subcommittee recommended an increase of ten dollars for the 2008 renewal fees and a ten dollar increase for new licenses issued to new salesperson and broker licensees effective January 1, 2008. Director Tyrrell also noted that the calculations on the exhibit had been his own calculations, as were the calculations presented to the subcommittee. Commissioner Leisey indicated that the Nebraska REALTORS7 Association wanted additional time to discuss the increases. Commissioner Poskochil indicated that the Commission had accomplished their goal to reduce the cash fund balance and he would rather raise the fee by $10.00 this year instead of having to raise the fees next year by a larger amount. Commissioner Poskochil also felt that a decision should be made at this meeting whether or not to increase the fees since there was no meeting scheduled for next month and the licensees needed to be notified now for continuing education purposes rather than in late October.

Director Tyrrell urged caution so that the cash fund balance would not decrease to an amount which could be critical, which had happened in the past. Commissioner Griess asked what the Commission had done in the past to increase the cash fund balance. Director Tyrrell noted that expenditures were cut significantly where they could be and fees were raised dramatically. Commissioner Poskochil indicated that he would rather see a small increase rather than a thirty to fifty dollar increase a year from now.

A motion was made by Poskochil and seconded by Leisey to postpone the vote of fee increases until the October Commission Meeting.

Chairperson Gale asked when the greatest surge of renewals was received. Director Tyrrell indicated that at the end of October and during November was when the greatest share of the renewals were received.

Chairperson Gale asked what the impact would be to licensees if the rate increase was not approved until the October meeting. Director Tyrrell indicated that the renewals would not be mailed out until the fee had been set. Director Tyrrell also indicated that if the rate increase decision was delayed until the October meeting, the renewals would not get mailed out until the last week of October due to printing and stuffing time. Therefore, everyone would be renewing in November. Chairperson Gale asked what the impact of everyone renewing in November would have on the budget. Director Tyrrell indicated that there would no impact in the budget other than the month in which the revenues were received. But it might impact the licensees who need to meet the continuing education requirement as Commissioner Poskochil had mentioned earlier. Commissioner Griess felt that it would not have much impact on the licensees who needed continuing education since the new labels used on A Commission Comment@ indicated the continuing education hours needed or completed. Director Tyrrell indicated that the labels had been used for a number of years.

Commissioner Grady indicated that he appreciated the Association' s view point, but as a Commission, the responsibility was to the licensees and it would cause less stress to the licensees if they knew of the increase now rather then sixty days from now. Commissioner Grady also indicated that continuing education may not be an important issue to those in Lincoln or Omaha but could be to licensees farther away. Commissioner Grady did not feel that ten dollars would be a great cause for stress this time of year and it was a good practice to let them know as soon as possible. He felt that the Commission could not have made a decision based on the revenues two months ago but felt that the Commission needed to move forward with the decision today. Director Tyrrell indicated that the revenue collected would go into the cash fund and would remain there unless it was expended.

Commissioner Leisey felt the Nebraska REALTORS Association should be given time to look at this issue. Director Tyrrell was asked when this discussion was held in past years. Director Tyrrell indicated that the issue of fees had been discussed at the August meeting as long as he had been the Director. Commissioner Shepard agreed with Commissioner Grady and felt that even though the Nebraska REALTORS Association had not had time to look at the numbers, the vote would not be affected by their review since the fees were going to have to increase. Commissioner Leisey also felt that the Commission would have to increase the fees no matter what and time was of the essence. Chairperson Gale indicated that he was originally going to support the motion to give the Nebraska REALTORS Association time to address the fee issue, however, since Commissioner Shepard had been a part of the Budget and Planning Subcommittee, he valued his judgement. Chairperson Gale also explained that if an increase were approved, the money would go into the cash fund and the Commission could do a reduction in the future. Therefore, he would vote against the motion today.

Motion failed with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting nay.

A motion was made by Grady and seconded by Leisey to approve the $10.00 increase in the salesperson and the broker renewal fee for 2008 and the salesperson and the broker original license issuance fee beginning January 1, 2008, as recommended. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

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

Deputy Director Hoffman presented for ratification the Nonresident 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. Deputy Director Hoffman noted that the exhibit for this agenda item was incorrect, the address for Grace Hundley was A Jupiter, Florida not Tupiter, Florida . Commissioners were informed that a corrected exhibit would be attached to the Minutes.

After review, a motion was made by Leisey and seconded by Poskochil to ratify issuance of the licenses as set forth in the report. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

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.

Deputy Director Hoffman noted that several broker candidates took the examination in June. Commissioner Poskochil indicated that the majority had passed. Deputy Director Hoffman indicated that fourteen candidates took the examination twice in July. Chairperson Gale asked if a licensee had to wait for a period of time after they had failed the examination to retake it. Deputy Director Hoffman indicated that there was no longer a waiting period imposed after three failures as had been in the past. Commissioner Leisey indicated that the candidates who had taken the examination after July 1, did not do so well and felt that perhaps the instructors were going through a learning curve to prepare the candidates for simulation questions. Deputy Director Hoffman indicated that some candidates could have made application some time ago and may not have reviewed the sample simulation questions. Deputy Director Hoffman also indicated that the Commission tried to minimize that risk as did the educators by encouraging the candidates to become familiar with the simulation format. She believed the success rate would improve. Commissioner Leisey indicated less people had been taking the examination. Deputy Director Hoffman indicated that the budget had reflected a decrease, but there had not been a tremendous decrease yet.

Deputy Director Hoffman pointed out that in the broker report, the names were not in alphabetical order and some of the headings were not correct on the failing report. She indicated these would be corrected on future reports. Commissioner Leisey asked for clarification of the broker failing report and how to correctly read it. Deputy Director Hoffman explained the report and the different categories to the Commissioners. Commissioner Leisey asked if there was a different possible score for the various simulation situations. Deputy Director Hoffman confirmed that each simulation would have different scoring ratio. Chairperson Gale asked if the Commission had received any feedback from those broker candidates who had taken the examination. She reported that a candidate who had failed the broker examination twice admitted, that even though he had failed the simulation portion of the examination, it made sense. He later passed the examination.

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

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

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

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

Commissioner Poskochil noted that there were more courses on foreclosures, lending practices and financial disclosures being submitted than in the past. Deputy Director Hoffman indicated that these were hot topics.

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

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 2007-010 - Steven P. Petersen vs. Rebecca Mae Estrada

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 Leisey and seconded by Bohrer that the complaint be dismissed without prejudice and a letter of admonishment be sent to the Respondent. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Item B Complaint 2007-013 - Rachael Mindrup vs. Kenneth J. Landolt, Jr.

Prior to discussion of this matter, Commissioner Leisey recused himself, thereby nullifying any potential conflict of interest.

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Bohrer and seconded by Griess that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Poskochil, Shepard and Gale voting aye, with Leisey not participating or voting, having recused himself, thereby nullifying any potential conflict of interest

Item C Complaint 2007-015

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 Bohrer that the complaint be set for hearing on 81-885.24(22) and 81-885.24(29). Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Item D Complaint 2007-016 - Kevin M. Borgeson vs. Kathryn Pocras Halperin

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 Leisey that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Item E Complaint 2007-017 - Matthew and Jean Ford vs. Richard E. Kavan

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 Bohrer that the complaint be dismissed without prejudice and a letter of admonishment be sent to the Respondent. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Item F Complaint 2007-018 - Steven R. Blair vs. Aaron Jacob Horn

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 dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Item G Complaint 2007-022 - Dan Fried vs. Vincent W. Leisey and Karen J. Fries

Prior to discussion of this matter, Commissioner Leisey recused himself, thereby nullifying any potential conflict of interest.

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Poskochil and seconded by Griess that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Poskochil, Shepard and Gale voting aye, with Leisey not participating or voting, having recused himself, thereby nullifying any potential conflict of interest.

Item H Complaint 2007-023

Prior to discussion of this matter, Commissioner Leisey recused himself, thereby nullifying any potential conflict of interest.

Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Poskochil and seconded by Shepard that the complaint be set for hearing on 76-2419(1). Motion carried with Bohrer, Grady, Griess, Poskochil, Shepard and Gale voting aye, with Leisey not participating or voting, having recused himself, thereby nullifying any potential conflict of interest.

Item I Complaint 2007-044 - Bush Hoang and Ann Trong vs. Andy Dung Vu

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 Griess that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Item J Investigative Matter

Deputy Director Mayrose presented an investigative report to the Commission and, when necessary, answered questions on this matter.

After discussion, it was a consensus that no action, by the Commission, was necessary at this time.

Item K Complaint 2007-005

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 Leisey and seconded by Poskochil that the complaint be set for hearing per the staff recommendation. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-042, Commission vs. Tia Lyn Stratton. 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 Ms. Stratton. The Order specified a censure for Ms. Stratton plus three hours of additional continuing education in the area of agency to be completed within 180 days of the date of the Order.

After discussion, a motion was made by Grady and seconded by Leisey to enter into the Order as presented. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2006-064, Ronald S. Kopiasz vs. Gustavo A. Buenrostro. A copy of said Order is attached to and made a part of these minutes. Respondent Gustavo A. Buenrostro was represented by Counsel Mike Matukewicz of Omaha.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Buenrostro. The Order specified a sixty-day suspension plus six hours of additional continuing education, with three hours being in the area of agency, and three hours in the area of ethics, to be completed within 180 days of the date of the Order.

After discussion, a motion was made by Leisey and seconded by Poskochil to enter into the Order as presented. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2006-068, Raymond M. Zendejas vs. Gustavo A. Buenrostro and Angel Ramon Loza. A copy of said Order is attached to and made a part of these minutes. Respondent Gustavo A. Buenrostro was represented by Counsel Mike Matukewicz of Omaha.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Buenrostro. The Order had not been signed by Mr. Loza because the Commission had been unable to contact him. The Order specified a one hundred and twenty-day suspension followed by a one hundred and eighty-day probation for Mr. Buenrostro plus six hours of additional continuing education, with three hours being in the area of trust accounts, and three hours in the area of license law, to be completed within 180 days of the date of the Order. The suspension to run immediately following the suspension in Complaint 2006-064.

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

After further discussion, a friendly amendment was made by Commissioner Leisey, the mover, to correct Mr. Loza= s name throughout the Order. The friendly amendment was accepted by the second, Commissioner Poskochil. Counsel Matukewicz also agreed to having the Order corrected.

The motion, as amended, carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-012, Commission vs. Kevin Dean Irish. A copy of said Order is attached to and made a part of these minutes.

Prior to discussion of this matter, Commissioner Leisey recused himself, thereby nullifying any potential conflict of interest.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Irish. The Order specified a three-year suspension all served on probation. The Order also specified that if Mr. Irish was charged with and convicted of another criminal offense during said three-year period which involved the use or possession of alcohol or any controlled substance, other than prescription drugs taken in accordance with a medical doctor= s prescription, he must report such conviction to the Commission within ten days following the date of the conviction. Further, such probation would be immediately revoked effective on the date of the conviction of said charge, and Mr. Irish must not engage in any activity in the State of Nebraska that required the holding of a Nebraska real estate license for the balance of the three-year period. The suspension would remain in effect for the remainder of the three-year period, even if said conviction was appealed to a higher court. However, if the new conviction was actually reversed on appeal by a higher court, the revocation of his probation would be rescinded and Mr. Irish would return to a probationary status.

Chairperson Gale felt that Mr. Irish had plea bargained the convictions in order to receive several first and second offenses. Chairperson Gale also felt that alcohol was hard to beat and there were some big loop holes. He noted that some individuals who lose their driver= s license still continue to drive and then they get picked up for other offenses since they usually continue to violate the law. Chairperson Gale indicated that for the Order to say A other alcohol convictions@ would be limiting as well as the sentence that read A ...the Commission having actual knowledge as of August 15, 2007.@ Commissioner Gale did not know if Mr. Irish had been to rehabilitation and did not know the terms and conditions for future driving. Chairperson Gale stated that future DUI= s were not his only concern and that there was no A teeth@ in what the Commission is trying to say in the Order. Chairperson Gale also stated that on the last page of the Order, he was unsure why the attorneys were trying to resolve the unfair trade practices issue rather than the real estate license issue.

Deputy Director Mayrose indicated that this Order had been offered and presented by Mr. Irish= s legal counsel. Director Tyrrell explained the reasoning regarding the August 15 and the A unfair trade practice@ references, as he understood them.

Commissioner Grady asked how an individual could get a second chance on both first and second offenses of DUI and did not understand how a person who got arrested four different times was still driving since most people would be on foot. Chairperson Gale noted that this Order arose from Mr. Irish= s failure to disclose the information on his renewal form and that was the violation being addressed. Chairperson Gale expressed concern as to what kind of policy could be adopted in order to ensure proper disclosures by other licensees. He felt this was a different case then seen in the past since the licensee failed to disclose the conviction and perhaps the licensee was in denial and had a drinking problem. He also felt that without knowing the set of circumstances for Mr. Irish, the failure to report the conviction on his renewal form may be another act of denial. Chairperson Gale felt that if Mr. Irish was not disciplined by the Commission it would show that the Commission was not serious about disclosures.

Commissioner Griess indicated that she would like to hear from Mr. Irish and would like to have him appear for failure to report the conviction on his renewal form. Commissioner Poskochil asked how may convictions Mr. Irish had reported to the Commission. Deputy Director Mayrose indicated that Mr. Irish had reported three out of the four. Commissioner Poskochil asked if Mr. Irish had reported the 2003 convictions on the 2004 renewal, if it was an issue of timing or if there were any other reasons as to why he had not reported all four. Deputy Director Mayrose indicated that he had no knowledge why Mr. Irish had not reported all four convictions since it had not been a timing issue. Commissioner Griess noted that if Mr. Irish had not self reported the convictions they would not have come to the attention of the Commission. Commissioner Poskochil indicated that it may not have come to the Commission since his convictions were only shown as a second offense. Director Tyrrell noted that Commissioner Poskochil was correct. Chairperson Gale stated that four offenses would have been a felony but even plea bargaining it down to the second offense did not reduce the risk. Director Tyrrell noted that if it had actually been Mr. Irish= s fourth offense then this issue would have been brought to the Commission. Commissioner Grady asked if it would have if Mr. Irish had said it was his second offense. Director Tyrrell noted that even though he said it was his second offense, but the Commission knew it was his fourth, it would be treated similar to what was done for other applicants and would be brought to the Commission for decision.

Chairperson Gale suggested that on page two of the Order that a counter proposal be offered to strike the language which stated A ... which involves the use or possession of alcohol or any controlled substance, other than prescription drugs taken in accordance with a medical doctor= s prescription.@ Chairperson Gale indicated that he felt Mr. Irish could potentially be a high risk to the public or property. Chairperson Gale indicated he would not want the Order to include parking tickets or anything petty, only misdemeanors or felonies. Commissioner Poskochil asked why the Order had defined one area of conviction. Director Tyrrell indicated that the Order was similar to the Order which was approved last month. Chairperson Gale indicated that the Order should clarify either felony or any criminal offense. Commissioner Bohrer asked if a Stipulation and Consent Order was the way to handle this case since there seemed to be a lot of discomfort with the wording of the Order and how to rewrite the Order. Commissioner Bohrer felt that it would make more sense to reject the Order and go to hearing. Commissioner Bohrer also was concerned about the last paragraph in the Order regarding the trade practices and did not feel the Order could be signed since it was unclear why the wording was included. Commissioner Poskochil indicated that instead of having the hearing they should request a special appearance of Mr. Irish. Director Tyrrell indicated that this matter had already been set for hearing and did not feel the Commission could request a special appearance. Commissioner Shepard asked if Mr. Irish could appear before the Commission to negotiate the Order without going through a hearing. Director Tyrrell indicated that he would check with legal counsel and see if the Order could be changed at the Commission meeting and could perhaps initiate that process if that was what the Commission wanted to propose to Mr. Irish. Commissioner Shepard indicated that it would be easier to discuss the Order with Mr. Irish than to go to hearing. Director Tyrrell indicated that if possible he could ask if Mr. Irish would like to appear before the Commission with his legal counsel otherwise the matter would go to hearing. Chairperson Gale asked if this case had been heard by a prehearing officer. Director Tyrrell said yes. Chairperson Gale asked if the case was ready for a hearing. Director Tyrrell indicated that the attorneys had briefs to file but that was all that was left to do prior to the hearing. Chairperson Gale indicated that there was no dispute about the allegations that Mr. Irish had not disclosed the conviction and it would be helpful to have Mr. Irish appear then perhaps the Order could be signed. Chairperson Gale felt the Commission had two choices either to eliminate the last paragraph or have Mr. Irish appear. Commissioner Poskochil indicated that he would make a motion to that effect. Chairperson Gale asked if Mr. Irish needed to be notified. Director Tyrrell indicated that the Commission could amend the Order or reject the order and have the hearing for Mr. Irish. Commissioner Grady indicated that the Commission did not have to give guidance but should reject the Order and see what Mr. Irish and his legal counsel= s course of action would be. Commissioner Bohrer concurred with Commissioner Grady but felt they should give guidance to the Commission= s legal counsel.

A motion was made by Grady and seconded by Poskochil to reject the proposed Stipulation and Consent Order. Motion carried with Bohrer, Grady, Griess, Poskochil, Shepard and Gale voting aye, with Leisey not participating or voting, having recused himself, thereby nullifying any potential conflict of interest.

The hearing regarding Complaint 2007-012, Commission vs. Kevin Dean Irish was continued pending a Stipulation and Consent Order.

There were no informal special appearances scheduled to be held at the meeting.

Deputy Director Hoffman presented a summary and details of the fining authority and practices in other jurisdictions. A copy of said exhibit is attached to and made a part of these minutes.

Deputy Director Hoffman noted that the survey included the United States, it= s territories and some Canadian real estate jurisdictions. The survey had been requested by the Commission as a follow-up to discussion held by the Commission in a previous meeting. This report summary was a compilation of surveys and e-mail inquiries. The summary explained that out of the fifty-six jurisdictions which responded to the survey and did have fining authority, the fine amounts noted ranged from $500 to $300,000. Deputy Director Hoffman noted that some jurisdictions were not satisfied with the dollar amount of their fining authority. She also noted that at least one jurisdiction had fining authority but had not used it in years, citing the expense of collecting the fine and the amount of staff time required. Commissioner Poskochil asked if any jurisdiction expressed support for fining authority or had data on how fining had proven beneficial. Deputy Director Hoffman indicated that impressions on strengths and weaknesses were captured on the exhibit in Part B. She said that often the jurisdictions felt fining was another disciplinary option to be used between censure and suspension and, apparently, some jurisdictions did not have a probationary status. Commissioner Shepard asked if any jurisdictions used a specific fining schedule for a specific violation. Deputy Director Hoffman said that most indicated that they had flexibility to assess the fine to the specific set of circumstances and used collective memory to be mindful in keeping the fines consistent. Chairperson Gale noted that there was dissatisfaction with fining amounts at almost every level, from the lowest to some of the highest.

Commissioner Grady commended Deputy Director Hoffman on the research and report she had done. He felt she had done an outstanding job. He was surprised at how little fining was being done. He felt that the idea of fining had been more appealing last year than now that the survey had been completed. Commissioner Leisey indicated that enough agents can barely live on what they earn now and it would be a nightmare for collection. Chairperson Gale indicated that the Commission was consistently imposing continuing education and could see where there could be a tendency to use fines instead but he felt fining would be less beneficial. He also noted that in one jurisdiction, a licensee could A buy@ time off a suspension by paying a fine.

Commissioner Griess was surprised that only three or four jurisdictions did not fine. Director Tyrrell noted that some jurisdictions did not respond to the survey. Chairperson Gale indicated that it would be nice to have more disciplinary options available to the Commission, but the jurisdictions did not appear to be happy with the fining authority they had. Director Tyrrell also noted that some jurisdictions have to pay for the collection of the fines or pay for a collection agency. Chairperson Gale noted that the collections were done by the Attorney General= s Office in some of the jurisdictions.

Commissioner Grady indicated that he would like for this report to be kept on file. Chairperson Gale asked if there was interest in pursuing legislation this could be brought to the October or December meeting to get something drafted for legislation. Director Tyrrell indicated that drafting this type of legislation would take more time than that to draft correctly.

No further action was taken on this matter.

Deputy Director Hoffman presented the draft of the revised Sales and Brokerage pre-license course outline. A copy of said exhibit is attached to and made a part of these minutes.

Deputy Director Hoffman noted that the draft of the Instructor Manual was a result of the work completed with the instructors in the State as identified on page two of the draft. The goal was to include the study of the Nebraska Real Estate License Act and Rules and Regulations, the Agency statute and Rules and Regulations, Seller Property Condition Disclosure statute and the Fair Housing Act, and to update the original sales and brokerage content. The first fifteen hours of the course are specific to real estate statutes and rules in Nebraska and the last fifteen hours are sales and brokerage topics. Interactive teaching methods are encouraged in the section A Presenting The Course@ . Deputy Director Hoffman also highlighted the updated sections such as the list of recommended textbooks and supplemental materials.

Deputy Director Hoffman requested permission from the Commission to have the Instructor Manual printed and sent to the pre-license providers and instructors for implementation. Deputy Director Hoffman also recommended that the implementation of the course begin at the first of the year, to fall between semesters. Commissioner Grady asked if the course outline was mandatory. Deputy Director Hoffman said yes. Instructors are required to cover the material in order to assure uniformity in the course no matter where it was taken. Commissioner Grady asked how this process was monitored. Deputy Director Hoffman indicated that the Commission could monitor through student performance, through speaking with the instructors and through reviewing the resources being used. Deputy Director Hoffman also indicated that most instructors referred to the Instructor Manual and new instructors were usually happy to have the Manual as a resource.

Commissioner Grady felt that some instructors may follow the outline but others may not. Deputy Director Hoffman felt that with the Nebraska specific course material, the improved sequence and the enthusiasm of those involved in the rewrite, instructors would embrace the rewritten Manual. Commissioner Griess felt that the Manual would be received well by the instructors and would be presented enthusiastically. Chairperson Gale indicated that he liked how the Manual had been written. He also indicated that in his seven years in state government, plain language and simplicity was sometimes hard to accomplish in reports, but found this Manual to be very readable and was impressed with the result.

A motion was made by Griess and seconded by Bohrer to approve the Nebraska Real Estate Sales & Brokerage Instructor= s Manual and begin implementation January 2008.

Commissioner Grady asked if the new Manual was just a A tweaking@ of the previous version or if they had reinvented the wheel. Deputy Director Hoffman explained that this would be considered a significant rewrite to the general approach of the Sales and Brokerage course and was not just a revision. Commissioner Griess indicated that this could almost be considered a new course. Commissioner Grady asked if the first of the year was a reasonable time frame for the instructors. Deputy Director Hoffman indicated that the first of the year was reasonable time to implement the course and also a good time for the instructors. She indicated that the instructors were licensed and understood the laws and had written the Manual in such great detail that they could implement it fairly easily.

Director Tyrrell indicated that while mandatory implementation of the course on January 1, 2008, would be good, the Commission may wish to allow those prepared to convert to the new Manual before that time to do so.

After further discussion, a friendly amendment was made by Commissioner Griess, the mover, to allow an instructor to begin using the course outline prior to January 1, 2008, with approval, but require usage of the outline starting with any Sales and Brokerage course beginning on or after January 1, 2008. The friendly amendment was accepted by the second, Commissioner Bohrer.

The motion, as amended, carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Commissioner Poskochil asked Deputy Director Hoffman to recognize the people who helped in the development of the Manual in the A Commission Comment@ . Deputy Director Hoffman indicated that she would put the names in the next issue.

Director Tyrrell presented an e-mail regarding the proposed errors and omissions insurance contract renewal for 2008. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that there were no changes proposed in terms and conditions of the policy or the premium. He also noted that the carrier would remain the same.

A motion was made by Bohrer and seconded by Shepard to renew the errors and omissions insurance contract with Williams Underwriting Group, Inc. for 2008.

Commissioner Griess asked how many claims the State of Nebraska had in comparison to other jurisdictions. Director Tyrrell indicated that he could bring a claims report to the next meeting but there would be no comparison to other jurisdictions. Commissioner Poskochil indicated that with other insurance policies you have to pay a large amount for little coverage, however, this provides a great rate and as well as great coverage. Director Tyrrell indicated that some insurance carriers require a rate for the basic insurance then licensees have to pay extra for the additional coverage. Commissioner Leisey asked what percentage of licensees use the Commission-offered plan. Director Tyrrell estimated ninety to ninety-five percent.

After further discussion, motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard, and Gale voting aye.

Director Tyrrell presented a resolution commemorating service to the Commission by Larry Shepard. A copy of said resolution is attached to and made a part of these Minutes.

Chairperson Gale remarked on Larry Shepard= s exceptional dedication to the Commission besides just attending the meetings and how he had always made himself available.

A motion was made by Grady and seconded by Poskochil that the resolution for Larry Shepard be adopted and signed. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil and Gale voting aye, and with Shepard abstaining.

Director Tyrrell noted that he and Deputy Director Hoffman attended the ARELLO District Meeting.

Director Tyrrell indicated that future meeting sites were selected and the officers from the District were selected, including Deputy Director Hoffman as our District= s Alternate Director. Director Tyrrell noted that the program was light. The first day= s discussion dealt mostly with the hurricane and it= s aftermath, which was interesting. He also noted that the jurisdiction reports were very good and there did not appear to be any issues on the horizon that had not already been discussed or talked about by the Commission.

Deputy Director Hoffman indicated that the legal updates were given at the District Meeting which was not usually done. She also obtained great information regarding procedures for managing an emergency situation.

Chairperson Gale asked how many were in attendance at the District meeting. Director Tyrrell estimated seventy people.

No action was necessary on this report.

Director Tyrrell presented the Trust Account Examination Evaluation Report - Second Quarter 2007. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell reviewed some of the comments received.

No action was necessary on this report.

Deputy Director Hoffman reported that she had attended the Applied Measurement Professionals (AMP) Advisory Committee Meeting. She indicated that the AMP real estate clients present besides Nebraska were: Alabama, Georgia, Illinois, Missouri, Montana, New Hampshire, North Dakota, South Dakota, and Wyoming. She reported that the morning was spent with updates regarding the examinations in the various jurisdictions and the afternoon was spent writing simulation examination items. She reported that currently, Georgia, Montana, South Dakota and Nebraska were utilizing simulation examinations and that after recent bid processes, New Hampshire and Alabama were now committed to simulation examinations as well. Both Missouri and Illinois were in the process of drafting their Requests for Proposals seeking simulation examinations.

Deputy Director Hoffman reported that both Georgia and Montana indicated that their passing percentage since the implementation of simulation examinations in their jurisdictions had not been adversely affected. They wanted to require competency at a higher level and felt they were accomplishing that purpose. South Dakota stated that while their passing percentage dropped initially, due to a variety of reasons, it was now coming back to previous levels. Examination candidates and instructors from these various jurisdictions appeared to be accepting the simulation format more readily. Deputy Director Hoffman noted that she would be watching the Nebraska scores closely.

No action was necessary on this report.

October 11-12, 2007 - Villager Courtyard & Gardens, Lincoln
November 1-2, 2007 - Staybridge Suites, Lincoln
December 20-21, 2007 - Villager Courtyard & Gardens, Lincoln
January 24-25, 2008 - Staybridge Suites, Lincoln
March 6-7, 2008 - Staybridge Suites, Lincoln
April 3-4, 2008 - Staybridge Suites, Lincoln

At 10:26 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 10:40 a.m.

At 11:55 a.m., Chairperson Gale declared a recess for lunch, and reconvened the meeting at 12:50 p.m.

At 2:15 p.m., there being no further business to come before the Commission, a motion was made by Shepard and seconded by Poskochil that the meeting adjourn. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the August 23, 2007, meeting of the Nebraska Real Estate Commission were available for inspection on September 7, 2007, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Warren Wakeland, Nebraska REALTORS7 Association, Lincoln
Suzi Wolfe, Coldwell Banker Dover, Norfolk
Susan Geschwender, Randall School of Real Estate, Omaha
Arla Meyer, Woods Bros Realty, Lincoln
Mike Matukewicz, Omaha