Acting Chairperson Poskochil convened a meeting of the Nebraska Real Estate Commission at 9:03 a.m. on October 11, 2007, in the Plaza Room of the Villager Courtyard & Gardens, located at 5200 A O Street in Lincoln, Nebraska. All of the members of the Real Estate Commission were present, with the exception of Chairperson Gale, who was absent and excused and Commissioner Bohrer, who had informed the Commission that he would be late and was excused until he arrived. Also present were Director Les Tyrrell, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Rut.

John M. Gerrard, Justice of the Supreme Court conducted a swearing-in ceremony for recently appointed Commissioner Robert E. Dover. Acting Chairperson Poskochil welcomed Commissioner Dover to the Commission.

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

Acting Chairperson Poskochil 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. Acting Chairperson Poskochil asked that guests sign the guest list.

Director Tyrrell noted that agenda items 4b-Renewal Report; the Examination Report for September; and 12b-an Informal Special Appearance had been added to the agenda since the tentative agenda was mailed to the Commissioners.

After review of the final agenda, a motion was made by Grady and seconded by Griess to adopt the final agenda as presented. Motion carried with Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale and Bohrer not participating or voting, being absent and excused.

The minutes of the Commission meeting held on August 23, 2007, were considered.

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

Director Tyrrell presented the Receipts and Expenditures Reports for August and September. 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.

The cash fund balance as of August 31, 2007, was $596,056.40, which compared to a cash fund balance of $844,242.44 on August 31, 2006.

The cash fund balance as of September 30, 2007, was $570,512.05, which compared to a cash fund balance of $767,646.99 on September 30, 2006.

Director Tyrrell noted that on the explanation page for the month of September that the description for 510000 Personal Services stated A ...plus interest@ , when, in fact, the interest is explained under 523600 Interest Expense. This page of the Exhibit was corrected for attachment to these minutes.

After discussion, a motion was made by Grady and seconded by Leisey to file the August and September Receipts and Expenditures Reports for audit. Motion carried with Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale and Bohrer not participating or voting, being absent and excused.

Director Tyrrell presented a report of Possible Deficit Budget Requests. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell indicated that it may be necessary to introduce a deficit budget request for salaries, health insurance and the rewiring of the Commission Office.

Director Tyrrell explained that the office staff would receive at least a 2.5% increase in their salary this fiscal year, as per the decision made by the Commission of Industrial Relations and some members of the office staff in addition would receive up to a 7.5% salary increase in order to make wages comparable to other jurisdictions. The Commission= s budget analyst with the Division of Administrative Services (DAS) indicated that the Budget Division would introduce a legislative bill to increase the Personal Services Limit (PSL) and the Commission= s appropriation to cover the salary increases. The amount for FY 2007-2008 would be approximately $7,300.00. The amount FY 2008-2009 had yet to be calculated.

The Director also indicated that a deficit budget request may need to be submitted for at least $3,600.00 due to a health insurance premium increase. The actual amount will not be known until after staff insurance selections have been made for 2008. The reason the request may be necessary was that the Legislature budgeted health insurance costs to increase 8%, when, in fact, they actually increased 15%. The budget analyst was unsure if the deficit budget request for health insurance would need to be submitted by each individual agency or would be submitted as part of an omnibus bill by the Budget Division.

Director Tyrrell also explained that the Atrium Building was being remodeled and the Department of Environmental Quality (DEQ) rewired its offices. The Commission receives data and voice services through DEQ, therefore, rewiring would need to take place in the Commission's Office space. Director Tyrrell indicated the cost to rewire would be approximately $6,000.00.

He requested that the Commission authorize him to submit deficit budget requests, if necessary, for these three items.

A motion was made by Leisey and seconded by Grady to give the Director authority to file deficit budget requests as requested, if needed. Motion carried with Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale and Bohrer not participating or voting, being absent and excused.

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

Director Tyrrell indicated that the percentage of renewed licensees was lower than in the previous year's report. However, the report date from last year was two weeks later.

No action was necessary on this report.

Specialized Registrations

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

Director Tyrrell 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.

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

Director Tyrrell presented an exhibit which consisted of a proposed Mutual Recognition Agreement with Florida, a copy of which is attached to and made a part of these minutes.

Director Tyrrell noted that the Agreement was the same as the current agreement but Florida required such Agreements be reapproved every five years.

Commissioner Griess indicated that there was no education requirement or course requirement listed as a provision for issuance of a Florida real estate license. Director Tyrrell indicated that Nebraska licensees would still need to take the Florida portion of the examination and comply with the post licensing requirements. Commissioner Grady asked if the requirements were the same if a Florida licensee were seeking licensure in Nebraska. Director Tyrrell referred to Section B of the Mutual Recognition Agreement which explained what a current Florida real estate licensee seeking an equivalent real estate license in Nebraska must complete. Commissioner Leisey noted that the Agreement indicated that Nebraska licensees would need to successfully complete the state portion of the State of Florida's real estate examination and wondered if several states have the same requirement. Director Tyrrell referred to Exhibit 13f, a survey conducted by Deputy Director Hoffman, which indicated that a number of jurisdictions required an education course, completion of the state portion of the examination or both. Commissioner Dover asked if the Commission had the authority to enforce the same requirement as Florida. Director Tyrrell indicated that the Nebraska law had always been license for license until last year when the three-hour course requirement had been added for nonresident licensees. Director Tyrrell also indicated that license recognition agreements were entered into to allow Nebraska licensees the least restrictive means to acquire a license in the other jurisdiction.

Commissioner Griess requested clarification of what needed to be approved for this agenda item. Director Tyrrell indicated that an approval would make the Mutual Recognition Agreement effective. Commissioner Griess asked if Florida was aware of Nebraska's requirements. Director Tyrrell noted that the Nebraska requirements were set forth in Section B of the Agreement. Acting Chairperson Poskochil noted that either state may terminate the Agreement upon giving at least a sixty-day written notice. Director Tyrrell explained that if there were to be a change in the Nebraska law, the change would affect this Agreement and other Agreements.

A motion was made by Griess and seconded by Dover to enter into the Mutual Recognition Agreement with Florida as set forth in the proposal. Motion carried with Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale and Bohrer not participating or voting, being absent and excused.

Director Tyrrell presented for ratification the August and September Examination Reports, copies of which are attached to and made a part of these minutes.

Director Tyrrell indicated that the number of broker examinations taken was low but reflected an improved passing rate. Director Tyrrell also indicated that some candidates had taken the broker examination in previous months. Commissioner Griess indicated that three of the broker candidates had taken the examination for the first time and passed.

After review, a motion was made by Griess and seconded by Leisey to ratify the August and September Examination Reports for the purpose of issuing licenses. Motion carried with Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale and Bohrer not participating or voting, being absent and excused.

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

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

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

After review, a motion was made by Grady and seconded by Leisey to ratify the three reports. Motion carried with Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale and Bohrer not participating or voting, being absent and excused.

Director Tyrrell presented a Continuing Education Activity Rejection Report, a copy of which is attached to and made a part of these minutes.

Commissioner Griess asked why the continuing education courses had been rejected. Director Tyrrell indicated that he did not have that information but would be able to obtain the information. Acting Chairperson Poskochil requested that the Continuing Education Activity Rejection Report be brought back for explanation at the next meeting.

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 2007-014 - Charisa L. McGee and Elwood L. Rave vs. Russell Dean Lauglin, Ronald Sabata and Lee Vermeer

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 Grady that the complaint be dismissed without prejudice. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Item B Complaint 2007-024

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 Griess that this complaint be held in abeyance and a new complaint be filed against the Respondent per the Staff recommendation. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Item C Complaint 2007-025 - David and Laura Singh vs. Kimberly Rae Mustard

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 Griess and seconded by Dover that the complaint be dismissed without prejudice.

After further discussion, a friendly amendment was suggested by Acting Chairperson Poskochil to send a letter of admonishment to the Respondent. The friendly amendment was accepted by the mover and the second.

Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Item D Investigative Matter

Deputy Director Mayrose presented an 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 a complaint be filed against the Respondent and set for hearing per the Staff recommendation. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-015, Lindsey DeBerry vs. Shannon Kole Yates. 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. Yates. The Order specified a censure for Mr. Yates plus six hours of additional continuing education, with three hours being in the area of contracts and three hours in the area of license law, to be completed within 180 days of the date of the Order.

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

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-023, Kevin Delong vs. Debbie A. Newburn. 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 Ms. Newburn. The Order specified a censure for Ms. Newburn plus six hours of additional continuing education, with three hours being in the area of agency and three hours in the area of license law, to be completed within 180 days of the date of the Order.

After discussion, a motion was made by Griess and seconded by Bohrer to enter into the Order as presented. Motion carried with Bohrer, Dover, Grady, Griess and Poskochil voting aye, with Leisey not participating or voting, having recused himself, thereby nullifying any potential conflict of interest and with Gale not participating or voting, being absent and excused.

There were no hearings scheduled to be held at the meeting.

Director Tyrrell presented exhibits which included: letters from Mr. Johnson explaining his conviction; a copy of a Certificate of Rehabilitation issued by the State of California; Mr. Johnson's criminal history report; letters of character reference; and his broker application form. A copy of said exhibit is attached to and made a part of these minutes. Mr. Johnson was not present.

Director Tyrrell explained that Mr. Johnson resided in California and chose not to appear before the Commission in person but had requested to appear by exhibit. Director Tyrrell indicated that Mr. Johnson had been involved in an armed robbery which occurred in 1961. Director Tyrrell also indicated that Mr. Johnson had received a court rehabilitation document but had not been pardoned.

Acting Chairperson Poskochil indicated that Mr. Johnson was licensed in Georgia, Alabama and California where he had been a broker/owner since 1999. Director Tyrrell indicated that when he spoke with Mr. Johnson on the telephone he had been cooperative and had sent everything which had been requested. Acting Chairperson Poskochil noted that Mr. Johnson would have been approximately twenty-one at the time of the armed robbery and had no other criminal problems.

After discussion, a motion was made by Grady and seconded by Leisey to allow Mr. Johnson to have a license issued after making proper application, and providing all the materials needed for licensure. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Director Tyrrell presented exhibits which included: a summary of Mr. Bradley= s convictions; notes taken by staff members during telephone conversations with Mr. Bradley; Mr. Bradley= s 2007 criminal history report; his salesperson application form received by the Commission on September 28, 2007; Mr. Bradley's 2004 criminal history report; and his salesperson application form received by the Commission on March 29, 2004. A copy of said exhibit is attached to and made a part of these minutes. Mr. Bradley was present.

Acting Chairperson Poskochil reviewed the procedure for informal special appearances.

Mr. Bradley distributed four character reference letters. Copies of said exhibit is attached to and made a part of these minutes, denoted as Exhibit 12b1.

Mr. Bradley thanked the Commission for allowing him time to appear. He explained that he had received three DUI's. Due to poor decision making, he had made the mistake of getting behind the wheel in all three convictions. He indicated that since the third offense, he had met with a counselor once a week, and since drinking had caused him problems, he had stopped drinking. He also indicated that he owned an irrigation business, which had been very busy and while the business was going good, it was seasonal and felt that he would be interested in real estate. He would like to refurbish houses and has friends in the trade. He felt that with all of the foreclosures, it might be a good time to get into the business. He also explained that if the Commission was wondering why it took him three DUI's to learn from his mistakes, he had asked himself that same question too. He felt that he had matured more in the last three years than in the first 25 years, and was trying to branch out in different avenues. He indicated that ethics were important in the real estate business and felt he had good ethics and conducted business correctly and timely.

Acting Chairperson Poskochil asked if the three DUI's were misdemeanors. Mr. Bradley indicated that the three DUI's were misdemeanors. Acting Chairperson Poskochil asked if Mr. Bradley had been sober since 2005. Mr. Bradley indicated that he had been sober since September of 2005. Acting Chairperson Poskochil asked if the places of employment and positions held, which Mr. Bradley had reported on his application, had something to do with the convictions. Mr. Bradley indicated they may have played a role in his convictions. Acting Chairperson Poskochil asked when he attended counseling. Mr. Bradley indicated that he went weekly to the counselor. Acting Chairperson Poskochil asked if Mr. Bradley had checked into employment with any real estate brokers. Mr. Bradley indicated he had been contacted by brokers, but since he was busy right now with his irrigation business, he felt he should pass the test before talking to any brokers.

Acting Chairperson Poskochil asked if Mr. Bradley felt he had a drinking problem. Mr. Bradley felt he did have a drinking problem which complicated a lot of things in his life and the convictions were a big set back since he lost a year of his life with no driver= s license. Acting Chairperson Poskochil indicated that Mr. Bradley applied for a real estate license back 2004, and asked why he had not gone through with getting his license then. Mr. Bradley indicated that he received a DUI and decided not to follow-up. Acting Chairperson Poskochil asked if Mr. Bradley was staying away from the bar scene. Mr. Bradley indicated that he stayed at home more and watched television. Acting Chairperson Poskochil asked if Mr. Bradley enjoyed his irrigation business. Mr. Bradley indicated that he enjoyed installing sprinklers and liked to look back and see his accomplishments. Acting Chairperson Poskochil asked how Mr. Bradley became interested in real estate as a profession. Mr. Bradley explained that his friend got into the real estate business and he became interested through him. He indicated that he would like to refurbish homes since he had done that before. Acting Chairperson Poskochil asked if Mr. Bradley had any other infractions. Mr. Bradley indicated that he had none at all.

Commissioner Grady asked how long Mr. Bradley had owned his lawn sprinkler business. Mr. Bradley indicated that he had owned his business for approximately two years. Commissioner Grady asked if his business had any other employees other than himself and if they were employed full-time or part-time. Mr. Bradley indicated that both he and a friend installed the sprinklers, and it was full-time work for himself. His friend worked elsewhere during the day and installed sprinklers in the evenings. Mr. Bradley felt there was a good amount of work for two people. Mr. Bradley explained that he had worked with plumbing and irrigation for another company but this was the first time owning his own business. He used them when he started his new business to get introduced to some of his clients.

Commissioner Dover asked if Mr. Bradley had gone through Alcoholics Anonymous and when he attended his first and last meeting. Mr. Bradley indicated that he had gone through Alcoholics Anonymous. He had started in 2002 and finished in November 2006.

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

Commissioner Grady indicated that since Mr. Bradley had had his driver's license back for a year, he felt that he was on the right track and hoped he kept up the good work. However, he was unsure how strongly he supported Mr. Bradley getting a real estate license. Acting Chairperson Poskochil indicated that if he had another misdemeanor it would be reported on his license renewal.

A friendly amendment was suggested by Commissioner Leisey to require Mr. Bradley to self report any convictions for the next two years. The friendly amendment was accepted by the second.

Commissioner Leisey felt that a young person tended to make mistakes and believed Mr. Bradley now had the right intentions and focus. Acting Chairperson Poskochil indicated that some people take longer to mature and since he had his own business, that showed that he was taking responsibility and making changes in his life.

Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Director Tyrrell presented exhibits which consisted of four different options of proposed legislation to change the language in Neb. Rev. Stat. ' 81-885.17; a letter from the Nebraska REALTORS Association with its proposed legislation; and a survey conducted by staff on the effect of changing this statute with regard to the current license recognition agreements. Copies of said exhibits are attached to and made a part of these Minutes. Representatives of the Nebraska REALTORS Association, Joseph Valenti and Fred Hoppe, were in attendance to speak to this matter.

Mr. Valenti indicated that the Nebraska REALTORS Association was asking for the support of the Commission on the proposal presented by the Association. Mr. Valenti explained that this bill would require the education course to be completed prior to getting a license. He also recommended that the 90-day post-license requirement not be continued. He indicated that having the course be pre-license would make it easier to administer and that licensees would meet the education requirement prior to practicing not after.

Director Tyrrell asked if the exhibit was the legislation that the Nebraska REALTORS Association was going to introduce. Mr. Valenti indicated that it was. Director Tyrrell suggested reviewing Exhibit 13d, which was Option 4. It contained new language in subsection 7 which would continue the post-license course requirement for those issued licenses under the current language who had not completed the course by the effective date of the proposed pre-license language.

Director Tyrrell also suggested leaving the language which stated that nonresident licensees would need to sign an affidavit. Mr. Hoppe asked if that requirement also applied to Nebraska applicants. Director Tyrrell indicated it did not. Mr. Valenti indicated that he had no objection to Director Tyrrell' s suggested changes.

Commissioner Grady asked what the time frame would be to make the appropriate changes. Director Tyrrell indicated that the law would not go into effect until mid-year 2008 since there would be no emergency clause on the bill. Mr. Valenti indicated that they had sponsors for the bill.

Director Tyrrell referred to Exhibit 13f which indicated that if the law changed there may be some repercussions. He indicated that Deputy Director Hoffman conducted a survey of the jurisdictions with which Nebraska currently had Agreements and approximately half of the agreements would not be changed. A few jurisdictions indicated that the change would be extreme, such as New Mexico which could do away with the Agreement and Iowa which would retract the current agreement. Commissioner Griess asked for a recap of the other 16 states that are not listed on the survey. Director Tyrrell indicated that there were no agreements with those other states.

Commissioner Dover asked how long the process took to become a licensee in Nebraska. Director Tyrrell indicated that for nonresidents, with the exception of the time that it would take for the criminal background check, the three-hour required course and the certification of licensure from their resident state, the license would be issued the day all requirements were met. Licenses were issued the day all of the paperwork was in the Commission office. Commissioner Dover asked Director Tyrrell what his best time guess would be if an Iowa licensee wanted to get a license in Nebraska. Director Tyrrell indicated that if a licensee of Iowa wanted to get a Nebraska license, it would take approximately two weeks for the criminal background check, it would depend on Iowa with regard to how long the certification of licensure would take and if the applicant was a designated broker there would need to be filings made with the Secretary of State= s Office and he was unsure how long that process took.

Commissioner Leisey felt that the proposed legislative changes were intended to include the licensees moving to Nebraska as well as the nonresident licensees. Commissioner Leisey asked Mr. Valenti what his thoughts were about the number of licensees residing in Omaha who also had Iowa licenses and if the proposed changes were made and Iowa followed through and retracted the current agreement. Mr. Valenti indicated that he was concerned that it was too simple to get an Iowa license and felt it would be appropriate for Nebraska licensees to know the Iowa laws and forms. Commissioner Leisey indicated that Nebraska licensees may have to take the test in Iowa. Mr. Valenti indicated that would be if Iowa followed through and actually retracted the current Agreement. Director Tyrrell noted that if Iowa did follow through with the retraction, he did not believe Iowa would make it retroactive, so it would not affect the current licensees. Commissioner Leisey asked if the proposed changes passed, would Iowa make it equal rather than requiring Nebraska licensees to take a test. Director Tyrrell indicated that based on the information given to Deputy Director Hoffman, the licensees would have to qualify by Iowa's rules as set out in the survey report. Commissioner Leisey asked if Iowa could amend the current Agreement. Director Tyrrell explained that, it appeared, Iowa would probably have to go through a process to get the rule changed or through the legislature depending whether it was a rule or statute in order to not require the examination and other requirements as set forth in the survey report.

Commissioner Grady asked if the information provided in Exhibit 13f, was correct for Kansas. It said that a salesperson applicant must complete a 30-hour Kansas-specific course. Director Tyrrell indicated that the survey was correct. He indicated this was a recent change. Commissioner Grady indicated that essentially the license for license agreements would automatically change. Director Tyrrell indicated that if the proposed legislation were to pass making the course a precondition of licensure, according to the survey some would require changes and others would not. Commissioner Grady indicated that at the ARELLO meeting they were talking about going the other way and making a license universal. Director Tyrrell noted that for the last twenty years ARELLO had pushed for a license for license issuance with no restrictions between jurisdictions, and Nebraska law had been license for license for 20 years. Director Tyrrell also noted that ARELLO was still pushing for the license for license agreements but more jurisdictions are requiring coursework, examinations or both. Director Tyrrell indicated that things were in a state of flux. ARELLO was not endorsing portability, which would be like a driver's license, they were just pushing for license for license recognition. Commissioner Dover asked if Nebraska could look into a requirement to have the Nebraska portion of the examination given to nonresidents. Director Tyrrell indicated that there was not a state portion of the broker examination, therefore, the Commission would not be able to institute that requirement. Mr. Valenti also noted that he understood ARELLO was pushing for the license for license recognition, but states are going another way and it seemed to vary by state.

Acting Chairperson Poskochil indicated that there would need to be a motion made in order for the Commission to support the legislation. Mr. Valenti indicated that he was not opposed to cleaning-up their proposed legislation to catch the people in the gap. Director Tyrrell indicated that he would like to see the affidavit language kept in the statute as well. Acting Chairperson Poskochil asked if the motion needed to include support of the changes and to have Director Tyrrell work with the Nebraska REALTORS Association on the language. Mr. Valenti indicated that there were only the two modifications and the Association would work with the Director on the language. Acting Chairperson Poskochil asked if the proposed changes would be presented to the Commission prior to filing with the legislature. Director Tyrrell indicated they would.

A motion was made by Leisey and seconded by Griess to support the Nebraska Realtors Association's proposed legislative bill if they work with Director Tyrrell on the language modifications as discussed.

Mr. Hoppe indicated that the proposed legislative changes would include the language about the affidavit and include the language to close the loophole.

A friendly amendment was suggested by Acting Chairperson Poskochil to bring the final draft back for the Commission to review prior to introduction. The friendly amendment was accepted by the mover and the second.

Motion carried with Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale and Bohrer not participating or voting, being absent and excused.

Director Tyrrell presented the Final Report regarding the 2006-2007 objectives. A copy of said report is attached to and made a part of these minutes.

Commissioner Grady asked if the objective list was all inclusive. Director Tyrrell indicated that he did not have a copy of the original document but the objective list had been added to during the year as the Commission approved projects. Commissioner Grady indicated that it was good to see the report and commended the accomplishments of the staff and commissioners.

No action was necessary on this report.

Director Tyrrell presented an exhibit regarding the proposed 2007-2008 objectives of the Commission. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell indicated that Objective Number One had already been initiated. Acting Chairperson Poskochil asked Director Tyrrell to explain each of the objectives. Director Tyrrell indicated that Objective Number Two was a requirement made by State Accounting for all agencies to switch to bi-weekly payroll. Commissioner Griess asked what the reason was for the bi-weekly requirement. Director Tyrrell indicated that currently agencies get to choose their pay cycle, and Accounting felt that one bi-weekly pay cycle for all agencies would be more efficient.

Director Tyrrell indicated that Objective Number Three was the implementation of a required statewide e-mail system.

Commissioner Griess suggested having the A Commission Comment distributed electronically. Director Tyrrell indicated that past issues appeared on the website starting in 2000. Commissioner Griess indicated that after seeing the recycle bins in her office after receipt of the newsletter, and knowing how much it costs to mail out the newsletter, it may be a better way for licensees to receive them. She also indicated that although all paper copies were not going to go away, she suggested that the licensees could choose how to receive the A Commission Comment newsletter. Director Tyrrell indicated that staff would look into it. Acting Chairperson Poskochil felt that having a delivery choice would be a good option. Commissioner Grady indicated that one option could be to send one newsletter to each firm or company rather than each individual since most of them get put in the garbage. Commissioner Grady also felt that if the newsletter were to get e-mailed it might get ignored or deleted without getting opened which was a concern since the newsletter had good information in it and should be read. Commissioner Griess felt that it would depend on the individual if they would or would not delete the e-mail or what delivery method they would prefer.

Commissioner Dover asked what the cost was to mail the newsletter. Director Tyrrell indicated that the cost for printing and mailing is approximately $4,000.00 per issue. Commissioner Leisey asked if that amount was quarterly or yearly. Director Tyrrell indicated that it was a quarterly amount. Commissioner Leisey asked if that amount was included in the approved annual budget. Director Tyrrell indicated that it was included in the approved annual budget. Commissioner Dover asked if the licensees were given a choice, was there a way to monitor if they were opening their e-mail. Acting Chairperson Poskochil asked if there was a way to sort the people who wanted the newsletter delivered by e-mail, postal mail or sent only to the broker. Commissioner Dover indicated that if an e-mail did not get delivered, we would want to be notified right away. Commissioner Leisey did not feel it was the job of the staff to check the e-mail addresses. Commissioner Leisey asked how the Commission knew where to send them. Director Tyrrell indicated that they are mailed to a licensee's chosen contact address. Acting Chairperson Poskochil asked if Director Tyrrell could look into the cost or savings of this accommodation. Commissioner Leisey indicated that communications are changing and some individuals do everything online while others prefer hard copies. Commissioner Dover asked if there needed to be procedures to move forward with this objective. Director Tyrrell indicated this project would be included in the objectives. Commissioner Griess felt that the staff would need time to look into this request. Acting Chairperson Poskochil asked if there was a law that required the A Commission Comment be mailed. Director Tyrrell said there was no law that stated that the newsletter had to be sent out, and, in the past, due to expenditure cuts, the newsletter had not been sent out at times.

Commissioner Grady indicated that at the ARELLO meeting he learned that A E-real estate was here and preparations were being made for electronic signatures, since everything was on the web and felt the Commission needed to be on the cutting edge of technology. Commissioner Grady indicated that one of the objectives should be to try to stay on the leading edge of technology although this was a big request of the staff. Commissioner Leisey agreed.

No action was necessary on this report.

Director Tyrrell noted that Commissioners Grady, Griess, Leisey and Deputy Director Hoffman attended the ARELLO Annual Meeting.

Commissioner Griess indicated that the subject of fines was discussed. Some jurisdictions felt there were no teeth in punishments if there were no fines. Other states take fining authority for granted. She noted that the requirements to either pass a test or take education for nonresidents was perceived as a problem for people moving between states. She felt that the technology portion of the meeting was good.

Commissioner Leisey felt there would be a lot of change in the next 10 years regarding technology. He indicated that this was the first ARELLO meeting he had attended. He was interested in hearing how the panels and boards, in other states, do things, such as a A prehearing committee. He also felt that the way things are done in Nebraska are not how other states do things. He felt there was no common ground and it would be helpful to have a new member training class. Commissioner Griess indicated that there was a Commissioner College offered by ARELLO that was an attempt at that. Director Tyrrell indicated that the Commissioner College was a Commission Member orientation session to ARELLO and general regulatory matters. Commissioner Leisey felt that attending such a session would be beneficial. Commissioner Griess indicated that she attended the Commissioner College and that was where she really saw how the different jurisdictions do things.

Commissioner Grady indicated he was pleased to find that the Commission staff and Commissioners were on the cutting edge of the industry and felt that each time he attended the ARELLO meetings that he received the worldwide view of the industry. He also felt that the Commission was fortunate to have Director Tyrrell and Deputy Director Hoffman who were both well respected in ARELLO. He felt that the meeting was good and that the Commissioner College should be offered every year or separate from the ARELLO meetings so everyone can get an orientation promptly. Commissioner Grady also asked if the Commissioners used to get sent to a law college once they were appointed. Director Tyrrell indicated that the Commissioners were sent to a judicial college and at times it came to Nebraska. Commissioner Grady felt that would be excellent to have that knowledge. Commissioner Grady felt the ARELLO conference was good but the administrative staff at ARELLO did not make as many choices of sessions available at the meetings as had been made available in the past. He felt that it was essential to attend the ARELLO meetings and that the meetings were something to look forward to.

Commissioner Griess indicated that she attended a fair housing committee which was interesting. There were two topics - predatory lending and neutralizing homes - which generated considerable discussion.

No action was necessary on this report.

Director Tyrrell reported that the Errors and Omissions Seminars were held across the State, from September 24 through September 28. He reported that Dick Williams of Williams Underwriting Group, Inc., the Program Administrator for the mandatory Errors and Omissions Program, conducted the Seminars. Mr. Williams reviewed the loss history of the Program; pointed out risks and awareness strategies; and presented information on economic issues including the mortgage-bubble and globalization. The Director noted that 138 people attended the seminars. Commissioner Griess asked if the class size was equal across the state. Director Tyrrell reported the number of people who attended in each city. Director Tyrrell indicated the people who came seemed to enjoy the seminars and he had a lot of good comments. Commissioner Griess felt that the people who attended were expecting to get more risk management out of the seminar than they did. Commissioner Grady concurred and indicated that some of the information was not as pertinent as it could have been.

No action was necessary at this time.

Director Tyrrell presented the Errors and Omissions Loss Report through June 30, 2007. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell reviewed the report and indicated that the first set of numbers were from Williams Underwriting Group, Inc. (WUGI). The information for calendar year 2004 from Rice Insurance Services Company was also included. Commissioner Grady indicated that there was no column for the premiums paid. Director Tyrrell agreed and indicated that approximately 90% of the licensees acquire errors and omissions insurance through the commission-offered plan.

No action was necessary on this report.

November 1-2, 2007 - Staybridge Suites, Lincoln
December 20-21, 2007 - Ramada Limited South, Lincoln
January 24-25, 2008 - Staybridge Suites, Lincoln
March 6-7, 2008 - Staybridge Suites, Lincoln
April 3-4, 2008 - Staybridge Suites, Lincoln

Recesses and Adjournment

At 9:05 a.m., Acting Chairperson Poskochil declared a brief recess, and reconvened the meeting at 9:19 a.m.

At 10:30 a.m., Acting Chairperson Poskochil declared a brief recess, and reconvened the meeting at 10:36 a.m.

At 10:36 a.m., Commissioner Bohrer joined the meeting.

At 12:11 p.m., Commissioner Dover briefly excused himself from the meeting and rejoined the meeting at 12:13 p.m.

At 12:20 p.m., there being no further business to come before the Commission, a motion was made by Grady and seconded by Leisey that the meeting adjourn. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the October 11, 2007, meeting of the Nebraska Real Estate Commission were available for inspection on October 23, 2007, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Joe Valenti, Nebraska REALTORS Association, Lincoln
Tod Dover, Norfolk
Warren Wakeland, Nebraska REALTORS Association, Lincoln
Gene Ward, Nebraska REALTORS Association, Lincoln
Ron Herms, Nebraska REALTORS Association, Lincoln
Scott M. Vogt, Hoppe Harner Vogt & Burrows, Lincoln
WF Hoppe, Hoppe & Harner, Lincoln
Tammy Brookhouser, Nebraska REALTORS Association, Lincoln
Rod Faubion, NP Dodge, Omaha
Don Evans, NP Dodge, Papillion
Thomas Dover, Norfolk
John M. Gerard, Nebraska Supreme Court, Lincoln