Acting Chairperson Shepard convened a meeting of the Nebraska Real Estate Commission at 9:00 a.m. on February 20, 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, with the exception of Chairperson Gale, who was absent and excused. Also present were Director Les Tyrrell, Deputy Director for Education and Licensing Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Wade.

Director Tyrrell noted that agenda item 15d had been added since the tentative agenda was mailed to the Commissioners.

The minutes of the Commission meeting held on January 25, 2007, were considered.

Director Tyrrell presented the Receipts and Expenditures Report for January. A copy of said report is attached to and made a part of these minutes. Director Tyrrell noted that an explanation page was included on the report.

The cash fund balance as of January 31, 2007, was $935,710.77, which compared to a cash fund balance of $1,094,399.75 on January 31, 2006.

Specialized Registrations

There were no Specialized Registrations to be presented at the meeting.

Deputy Director Hoffman presented for ratification the Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other Jurisdictions Report, a copy of which is attached to and made a part of these minutes.

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

Deputy Director Hoffman noted that on the report, a hand written statistic had been added to reflect a Nebraska Real Estate Broker Examination taken in the State of Colorado which could not be electronically added to the report by Applied Measurement Professionals.

Deputy Director Hoffman followed up on last month= s discussion by reporting that beginning with this report, statistics would routinely be collected on broker license examinees and whether they had qualified by coursework alone or a combination of coursework and experience.

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

Deputy Director Hoffman presented for ratification the Continuing Education Activity Significant Change 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 report. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, and Shepard voting aye, with Gale not participating or voting, being absent and excused.

Director Tyrrell presented a summary report of the pending complaints, which included a list of licensees presently under disciplinary action or on appeal. A copy of said report is attached to and made a part of these minutes.

No action was necessary on this report.

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

Presentation of Stipulation and Consent Orders

There were no Stipulation and Consent Orders to be presented at the meeting.

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

Director Tyrrell presented exhibits which included: a summary of Mr. Pierson= s situation; correspondence regarding Mr. Pierson= s special appearance; additional answers to questions on the salesperson application form; Public Record Criminal History Listing and Memorandum from the City of Lincoln; correspondence regarding the explanation of the criminal background requested by the Director; additional explanation of offenses; Mr. Pierson= s criminal history report; a copy of Mr. Pierson= s Motor Vehicle Record; miscellaneous copies of materials supplied by Mr. Pierson; his salesperson application form; letters of reference; and a newspaper article. A copy of said exhibit is attached to and made a part of these minutes. Mr. Pierson was present.

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

Acting Chairperson Shepard reviewed the procedure for informal special appearances.

Mr. Pierson explained that he viewed getting a real estate license as a career change. Mr. Pierson indicated that he had been a paralegal secretary when he lived in California and that position was unfulfilling. He explained that he wanted to help people and since he was not making much money in the industry he was in or receiving benefits, he decided to make a career change. He also felt that since companies were not hiring or offering good work, he would like to work for himself. He explained that he had seen how Lincoln had grown since he was young and felt real estate would be a great way to help people. Since he was looking for fulfillment, he felt real estate was a good choice. He also indicated he had matured and through bad judgement, he had learned good judgement.

Acting Chairperson Shepard asked Mr. Pierson to explain the encounters he had had with law enforcement. Acting Chairperson Shepard also explained that the Commission is the protector of the public and due to the drunk driving charges, resisting arrest and disturbing the peace there were some safety issues that caused concern.

Mr. Pierson explained that he had been A lippy@ and the charge for resisting arrest was a sarcastic remark taken the wrong way by the officer. Mr. Pierson also explained that he had been known to have a warped or dry sense of humor on occasion. Mr. Pierson explained that his first DUI charge was in 2005 when he had had too much to drink and should not have been driving. He was thankful he got arrested before any damage was done to himself or someone else. Mr. Pierson explained that he was not drunk when he received the DUI in 2006. He explained that it was his late father= s birthday and while driving on 13^th Street, he became overwhelmed with the loss. He became distracted and went the wrong way on a one-way street. He explained that he had become disoriented and was driving on A auto-pilot@ , and when he turned the corner a patrol car was right there. He indicated that he blew for the breathalyzer test, the officer then took him to detox where he blew again and since it was not good enough they charged him with refusal. Mr. Pierson explained that he no longer drove after drinking. He lived downtown and either rode his bike or walked. He also noted that this time through alcohol counseling he had seen tapes of those who were innocent being hit by drunk drivers and could see for the first time that life was too short.

Acting Chairperson Shepard asked Mr. Pierson if his probation was to be completed by August 16, 2007. Mr. Pierson indicated that date was correct. Mr. Pierson also explained that he currently goes to Narcotics Anonymous meetings, the last time he drank was New Years, and wanted to show the Commission that he was more than willing to prove he is worthy of having a real estate license.

Commissioner Grady asked Mr. Pierson what the circumstances were which caused him to have six different jobs in the last four years. Mr. Pierson explained that most were temporary positions taken through a temporary agency when companies had a project. Mr. Pierson explained that it was not like he could not keep a job. He had been a paralegal secretary for 8 years. Mr. Pierson noted that he had friends who were lawyers and dentists. Commissioner Grady asked Mr. Pierson if all of the positions were voluntarily terminated. Mr. Pierson explained that some ran out, but had ended the position at U-Stop.

Commissioner Leisey expressed concern after reading that Mr. Pierson had a DUI in both Arizona and California and two DUI= s in Nebraska. Mr. Pierson explained that he had received one in Arizona and two in Nebraska but did not receive a DUI in California. Commissioner Leisey noted that Mr. Pierson had indicated that his past experiences taught him how to act today, but, with the convictions listed in 2005 and 2006, it would appear the same patterns continued. Therefore, the changed ways referred to would be for the period since July 2006. Mr. Pierson agreed that since 2006 he had changed his ways. Before he had always felt restless and now was calm. Mr. Pierson also indicated that friends he had known since 1975 had seen the calmness and, from what they say, he was more calm, cool and the A rough water@ had gone out of him.

Commissioner Leisey indicated that Mr. Pierson= s appearance was early, since he had not completed probation. Perhaps he could be reconsidered if he were to come before the Commission in the future. Commissioner Leisey noted that Mr. Pierson= s recent history had shown problems with the reoccurring issues and hoped that what Mr. Pierson said about changing was true. If so, he may have a different opinion if Mr. Pierson were to come before the Commission again. Acting Chairperson Shepard agreed with Commissioner Leisey but noted that Mr. Pierson was still on probation and still had an unpaid fine.

Commissioner Poskochil referred to the Connecting Links Drug & Alcohol Evaluation and asked Mr. Pierson for clarification as to why the report indicated that his profession, trade or skill was a Realtor. Mr. Pierson indicated that he had told the person conducting the evaluation that he had training and was taking classes to get a real estate license. Commissioner Poskochil also asked when the report was completed. Director Tyrrell indicated that in the shaded area of the Evaluation Report it appeared to have a date of October 20, 2006.

Commissioner Grady indicated that he felt Mr. Pierson was headed in the right direction, but was not in favor of him receiving a real estate license at this point, but advised Mr. Pierson to keep an open mind.

Commission Bohrer agreed that Mr. Pierson should not be allowed to sit for the examination until the end of his probation. However, he felt Mr. Pierson should authorize the Commission to speak with probation officer. Mr. Pierson indicated that he had not signed that authorization, but would meet with the probation officer the first Tuesday of March. Commissioner Bohrer felt he would give Mr. Pierson high marks, and felt he was courageous to put his life out there in a public meeting. He believed Mr. Pierson wanted to be able to help people.

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

Director Tyrrell presented exhibits which included: correspondence regarding Mr. Tuimauga=s special appearance; Mr. Tuimauga= s explanation of the situation; staff memoranda and materials regarding the situation; copies of documents supplied by Mr. Tuimauga; and his salesperson application form. A copy of said exhibit is attached to and made a part of these minutes. Mr. Tuimauga was present.

Acting Chairperson Shepard reviewed the procedure for informal special appearances.

Mr. Tuimauga explained that he moved to Omaha in October 2006, to take a position selling real estate. He explained that in transferring his Missouri license to Nebraska, a mistake was made on the application form regarding his high school education. The license history received from Missouri expired before the background report was received by the Commission so he made a trip to Missouri to get a new license history. He also indicated that he was told by Commission staff that he could not get a license until he provided a G.E.D. diploma or verification through a credentialing service that his New Zealand High School was equivalent. Since New Zealand was out of school for the summer, he decided he would try to find a faster way to get licensed, especially since he had just returned from Missouri with a new license history. He asked the Commission staff if a G.E.D. diploma received over the internet would be acceptable and was told it could be but it would have to be reviewed before it could be approved. Mr. Tuimauga found an internet site where you could get a G.E.D. right away. So he paid the fees and received the online G.E.D. diploma. He indicated that when he brought the diploma into the Commission Office, Deputy Director Hoffman indicated that she would have to investigate the school from which he received the diploma and later told him he could not use the diploma from this online source. Mr. Tuimauga noted that, by this time, his wife had found a qualification authority from New Zealand where he could get his records. He then sent that information to a credentialing service for review.

Commissioner Poskochil asked Mr. Tuimauga if when he moved to Omaha in October 2006 he requested the application packet. Mr. Tuimauga believed he requested the packet in either October or November 2006. Commissioner Poskochil asked if Mr. Tuimauga read through the materials in the application packet and if the foreign high school graduate information had been included in the packet. Mr. Tuimauga indicated that the foreign high school graduate information was included in the packet and he had received the information again when he came into the Commission Office on January 4, 2007. Mr. Tuimauga indicated that after reading the foreign graduate information he found he would have to produce the records from New Zealand to a NACES member credentialing service. Because of time, he felt that he had to find another way to provide the documentation of high school equivalency. Commissioner Poskochil asked Mr. Tuimauga when he found the Rochville University website if he felt it was legitimate. Mr. Tuimauga indicated that he felt the website was shady and it was not the best decision to use it.

Commissioner Grady asked if Mr. Tuimauga was employed in Kansas City, Missouri as a real estate licensee. Mr. Tuimauga explained that he had a real estate license in Missouri, but did not sell anything. Mr. Tuimauga was offered an opportunity in Omaha by a friend and thought it would be a great move. Commissioner Grady asked if this friend was licensed in Nebraska or Missouri. Mr. Tuimauga indicated that the friend was licensed in both states.

Commissioner Poskochil asked Mr. Tuimauga if in the licensing process in Missouri proof of a high school diploma or G.E.D. diploma had been required. Mr. Tuimauga indicated that Missouri did not require that information.

Commissioner Grady asked if there were differences in processes since Mr. Tuimauga had been seeking licensure under recognition rather than testing. Director Tyrrell indicated that statutory provisions require the licensees to be 19 and have a high school diploma or its equivalent whether the license is issued by examination or license recognition.

Commissioner Poskochil indicated that it appeared that the correct information had recently been submitted to the Real Estate Commission. Mr. Tuimauga noted that the correct information had been submitted to the Commission. Commissioner Poskochil also noted that Mr. Tuimauga had displayed poor judgement and asked if the license history from Missouri had expired again. Director Tyrrell indicated that the license history may have expired but if it had expired because of this proceeding, then it could still be used. Commissioner Leisey asked Deputy Director Hoffman if the Commission Office was satisfied with the credentialing information submitted by Mr. Tuimauga and if the information was correct. Deputy Director Hoffman indicated that the information was satisfactory.

A motion was made by Leisey and seconded by Bohrer to allow Mr. Tuimauga to have a license issued upon submitting all necessary materials to the Commission Office.

Commissioner Poskochil asked if Mr. Tuimauga= s background report had been received by the Commission. Director Tyrrell indicated that it had been received and there was nothing on the report or it would have been included as part of the exhibit. Commissioner Leisey noted that Mr. Tuimauga made a bad decision and logic should have told him that the website was not legitimate. Commissioner Leisey also noted that Mr. Tuimauga should have read the licensing information since he had been licensed in Missouri. However, he still felt comfortable letting Mr. Tuimauga receive a Nebraska Real Estate License.

Commissioner Poskochil also indicated he was comfortable with Mr. Tuimauga receiving a license since he had admitted that the information he submitted to the Commission was not legitimate. Commissioner Poskochil indicated that Mr. Tuimauga needed to be honest with the people he dealt with and not cut corners. Commissioner Poskochil also indicated that Mr. Tuimauga could get pressured financially and warned Mr. Tuimauga not to let money be the deciding force since some real estate licensees go months without pay. Commissioner Grady felt that through what appeared to be A testy@ conversations with Commission staff that Mr. Tuimauga had perhaps let his ego get in the way and hoped this lesson would last for a lifetime.

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

Director Tyrrell explained that at the January 25, 2007 Commission Meeting after accepting the proposal of contract with Applied Measurement Professionals under RFP 07-001, he had failed to ask for a motion authorizing the Director to sign the contract. He requested that such authority be given.

After discussion, a motion was made by Poskochil and seconded by Griess to authorize Director Tyrrell to enter into the examination contract with Applied Measurement Professionals under RFP 07-001. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, and Shepard voting aye, with Gale not participating or voting, being absent and excused.

LB 26 - Director Tyrrell reported that the Commission= s bill was passed by the Legislature and approved by the Governor and will become effective approximately September 1, 2007. He reported it was the fastest he had seen a bill move through the Legislature.

LB 104 - Director Tyrrell reported that this bill, to change the age of majority, was the same as the bill introduced in the last Legislative Session. He indicated he would continue to monitor the bill. The hearing on the bill was scheduled to be held on March 1.

LB 321 - Director Tyrrell reported that the hearing on this bill was scheduled for February 21 at 1:30 p.m. The Legislature had preliminarily recommended the Commission= s requested appropriation along with the additional funds needed for benefits and raises. Director Tyrrell also noted that the Committee would be informed that the requested increase for examination expenditures could be reduced by $15,000.00 due to the new examination fees which will become effective July 1, 2007.

LB 386 - Director Tyrrell reported that this bill proposed the adoption of the Nebraska Security Instrument Satisfaction Act. At the hearing held on February 12, it was indicated that amendments were going to be drafted by the interested parties. He indicated he would continue to monitor this bill.

LB 622 - Director Tyrrell reported that this was the bill that required training in the Public Records and Open Meetings Acts. The hearing had been held and it appeared the bill would continue to move through the Legislative process.

No action was necessary with regard to these matters.

Director Tyrrell presented the Trust Account Examination Evaluation Report for the fourth quarter of 2006. A copy of said report is attached to and made a part of these minutes.

Director Tyrrell reviewed some of the comments received and indicated appropriate action had been taken with regard to those matters needing action.

No action was necessary on this report.

Director Tyrrell asked that Commissioners planning to attend this meeting to complete the registration form and send it to the Commission office by March 1, 2007, with a check or credit card information for the guest registration, if applicable. Director Tyrrell reported that the deadline for hotel reservations was March 25, 2007.

No action was necessary on this report.

Director Tyrrell noted that the amendment to Title 299, Chapter 5, Section 003.18 had completed the approval process and had become effective on February 12, 2007.

No action was necessary on this report.

Director Tyrrell presented an exhibit regarding the ARELLO Annual Meeting, which will be held September 13-18 in New York, New York. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell asked that Commissioners planning to attend let him know by February 23 if they would need rooms for the dates prior to the meeting or dates after the meeting and, per the exhibit, he would inform ARELLO.

No action was necessary on this report.

March 29-30, 2007 - Staybridge Suites, Lincoln

May 24-25, 2007 - Staybridge Suites, Lincoln

June 28-29, 2007 - Settle Inn & Suites, Lincoln

August 23-24, 2007 - Staybridge Suites, Lincoln

At 10:16 a.m., Acting Chairperson Shepard declared a brief recess, and reconvened the meeting at 10:32 a.m.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the February 20, 2007, meeting of the Nebraska Real Estate Commission were available for inspection on February 23, 2007, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director