NEBRASKA REAL ESTATE COMMISSION

February 26, 2002

 

Staybridge Suites                         Staybridge Room                         Lincoln, NE


Opening

Chairperson Gale convened a Meeting of the Nebraska Real Estate Commission at 9:07 a.m. on February 26, 2002, 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 Commissioner Nigro, who was absent and excused. Also present were Director Les Tyrrell, Deputy Director for Education Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, was present for the Title 302 revision discussion.

Notice of Meeting (Adopt Agenda)

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 APublic Copy@ of the materials being used during the Meeting was available to the public on the Counsel table in the Meeting Room, and that the procedures followed were in accordance with the Open Meetings Law. Chairperson Gale asked that guests sign the guest list.

Director Tyrrell noted that Item 8c had been added since the Tentative Agenda was mailed to the Commissioners.

After review of the Final Agenda, a motion was made by Moline and seconded by Wiebusch to adopt the Final Agenda as presented. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Minutes of January 24, 2002

The Minutes of the Commission Meeting held on January 24, 2002, were considered.

After review, a motion was made by Moline and seconded by Johnson to approve the Minutes as presented. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Receipts and Expenditures Report for January

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.

With regard to the January Report, Director Tyrrell noted the following: at the bottom of the last page, the date on the left will be corrected to 2002, and a corrected copy will be placed in the Minutes book. In Receipts Category 7512, New Broker License Fees, an incorrect journal entry will be corrected on future reports; and in Category 7532, Examination Fees, the odd amount was due to an applicant paying the additional $4 fee increase from last summer. Expenditure Category 4421, Other Contract Services, included the temporary help for renewal season because Personnel had not yet billed us; Category 4731, State-Owned Transportation, included a two-month payment.

The Cash Fund Balance as of January 31, 2002, was $733,773.65, which compared to a Cash Fund Balance of $672,285.45 on January 31, 2001.

After discussion, a motion was made by Moline and seconded by Shepard to file the January Receipts and Expenditures Report for audit. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Renewal Report

Director Tyrrell presented a Renewal Report, which showed renewals as of February 25, 2002. A copy of said Report is attached to and made a part of these Minutes.

Director Tyrrell noted that the renewal figures were normal.

No action was necessary on this Report.

Specialized Registrations

Time-Share Registration - Vacation Village at Parkway

Director Tyrrell presented a Time-Share Registration for Vacation Village at Parkway. A copy of said Report is attached to and made a part of these Minutes.

Following discussion, a motion was made by Wiebusch and seconded by Moline to approve the Vacation Village at Parkway registration as presented. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other States Report

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

After review, a motion was made by Moline and seconded by Wiebusch to ratify issuance of the licenses as set forth in the Report. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Examination Report for January

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

After review, a motion was made by Moline and seconded by Wiebusch to ratify the January Report for the purpose of issuing licenses. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Real Estate Education Matters

Continuing Education Activity Approval

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

After discussion, a motion was made by Wiebusch and seconded by Johnson to ratify the Report. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Continuing Education Instructor Approval

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.

After discussion, a motion was made by Moline and seconded by Wiebusch to ratify the Report. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Consideration of CRB Activity Applications

Deputy Director Hoffman presented information regarding activities submitted by the Council of Real Estate Brokerage Managers (CRB), a copy of which is attached to and made a part of these Minutes.

Deputy Director Hoffman noted that she traditionally brought continuing education activities to the Commission when she had questions regarding approvable subject matter. Deputy Director Hoffman reviewed the Exhibit, and noted that these activities were traditionally not approvable, because they were business-oriented instead of consumer-oriented. If the Commission wished to maintain its past policy, Deputy Director Hoffman recommended rejection of these activities.

Commissioner Moline asked if the material on marketing to generational values was approvable, because it would help licensees understand the needs and thought patterns of different generations. Deputy Director Hoffman said there was lots of information on respecting different generational values, but that the application of the information was the problem. The material focused on recruiting and retaining employees, which was an internal business practice, and there was a significant emphasis on identifying the company=s marketing image and packaging the business to target specific generations. Commissioner Moline agreed that this focus was not approvable. Commissioner Moline asked if any part of it was focused on serving clients. Deputy Director Hoffman said it was a very small part of the course. Deputy Director Hoffman felt that using generational values to better serve clients would make a good course, but it was not a significant factor in this course.

Commissioner Wiebusch said she had reviewed the activity outlines in terms of the Commission=s guidelines, and tried to make them fit, but could not. Commissioner Wiebusch thought these were fantastic classes, and licensees could take them for the sake of improving their knowledge, but not for continuing education credit.

After discussion, a motion was made by Moline and seconded by Wiebusch to reject all three courses.

Chairperson Gale said that some of the material seemed to fit under #6 of the guidelines, utilizing computers to serve the customer, or #18, e-commerce, or #9, counseling the real estate client. Commissioner Moline said that was a good point, but asked if the instructor was someone who claimed to have knowledge about the future, and if there was any real substance to the course. Deputy Director Hoffman noted that most of the material was on brokerage income and profitability, and how to position the business in the marketplace.

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

Pending Sworn Complaints and Investigative Matters

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 #2001-041

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 Moline and seconded by Shepard that the Complaint be dismissed without prejudice, and that the Commission file a Complaint on its own motion against the broker and the affiliated licensee on the violations alleged in the report conclusion. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Item B Complaint #2001-043

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 Wiebusch and seconded by Moline that the Complaint be held in abeyance until discovery is completed in the civil matter, then have staff update the investigative report and bring it back to the Commission at the June Meeting. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Item C Complaint #2001-045

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 Moline and seconded by Wiebusch that the Complaint be amended to include the violations alleged in the report conclusion, and that the amended Complaint be sent out for answer. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Item D Overcome Presumption to Supervise

Director Tyrrell presented a report regarding an employing broker who also worked in a jewelry store, which was not noted in the broker=s file. Director Tyrrell said he felt the broker needed to appear before the Commission to overcome the presumption to supervise, and should be allowed to continue operations until his appearance. Director Tyrrell noted that it did not appear that the broker was trying to put one over on the Commission, but staff would have made him appear before allowing other licensees to transfer to him, if they had known in advance.

A motion was made by Johnson and seconded by Wiebusch that the broker be allowed to operate until his Commission appearance, when he would be required to present information to overcome the presumption to supervise. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Presentation of Stipulation and Consent Orders

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

Hearings

There were no Hearings scheduled for this Meeting.

Informal Special Appearances

February 26, 9:15 a.m. - Ritchie A. Baade, Potential Salesperson Applicant

Director Tyrrell presented an Exhibit which included correspondence regarding Mr. Baade=s criminal history and Special Appearance. A copy of said Exhibit is attached to and made a part of these Minutes. Mr. Baade was present.

Mr. Baade said he was interested in a career in real estate. His arrest was for a Class III felony, possession with intent to deliver, but was plea bargained down to a Class IV felony. He had been employed at the Nebraska State Penitentiary, and was having financial difficulties, when an inmate offered him money to bring in marijuana. He chose to do it, and suffered the consequences. He was sentenced to 18-36 months, and served 19 months. The Parole Board would not grant him parole, because he had betrayed the system by delivering marijuana into the Penitentiary, so he served his full sentence. This was his single felony conviction, he had no prior convictions, and had been in no trouble since. He had worked 20 months at Corrections. The way it usually worked, first-time offenders could usually enter a pretrial diversion program, which was a 6-8 week intensive program which included drug testing and monitoring the person. Completion of the program would result in the person having no criminal record. The county attorney did not allow him to participate because he betrayed the institution. His lawyer told him it would be beneficial if he cooperated with the State Patrol and Nebraska State Penitentiary investigations, but that did no good. During the presentence investigation, the investigator recommended that he get 3 years of probation, but the judge chose incarceration.

Chairperson Gale asked if Mr. Baade took an oath as a correctional officer. Mr. Baade said he was not an officer, he was a food service specialist, and there was no oath. Chairperson Gale said that licensees were given a pretty high level of public trust, and asked if Mr. Baade thought he qualified for that trust. Mr. Baade said he thought he did now. Mr. Baade said he violated the public trust by bringing drugs into prison, and served his prison sentence, which was very eye-opening. The experience taught him a lot about himself, what he wanted in life, and the consequences of decisions. Mr. Baade felt he was trustworthy again.

Chairperson Gale asked what employment Mr. Baade had since prison. Mr. Baade said he was a cook, then enrolled in management training at Applebee=s. He earned a good salary, but had to work nights and weekends, 60 hours a week. He was married and had a family, and wanted to spend more time with them, and his family was home nights and weekends. He was looking to spend more time with his family, and still have a high income potential.

Chairperson Gale asked what led Mr. Baade to consider real estate. Mr. Baade said he had a couple of friends in real estate, and they enjoyed it; he felt the income potential was better than for a food service manager; and he wanted a flexible schedule so he could attend his children=s sports and activities. Mr. Baade was currently working first shift for MSP Resources at Kawasaki. This job let him be home nights and weekends and had an adequate salary, but he wanted more. The job was not union and did not have benefits, because it was a temporary full-time position, and 50% of the Kawasaki workforce was temporary. Mr. Baade said he was not looking for benefits, but was looking for a permanent position, where he could make his own income.

Commissioner Moline asked if Mr. Baade had ever done drugs. Mr. Baade said no, and that he drank very occasionally, like on New Year=s Eve.

Chairperson Gale asked if Mr. Baade had been out of prison since August 1998, and if it had been 32 years since his release. Mr. Baade said that was correct.

Chairperson Gale asked about the newly-adopted guidelines for applicants with criminal history. Director Tyrrell said that allowing applicants with felony convictions to sit for the examination was at the discretion of the Commission, and there was no prohibition against it in the guidelines. Chairperson Gale noted that convicts could get pardons after 10 years, and asked for confirmation that Mr. Baade had not yet been pardoned. Mr. Baade said he had not. Chairperson Gale asked what happened to the money Mr. Baade received for the drug transaction. Mr. Baade said he guessed it stayed with him, and noted that it was not much, just a couple hundred dollars over a month-long period. Mr. Baade said the investigation never delved into that. Chairperson Gale asked if Mr. Baade had turned himself in, or if he was caught as the result of an investigation. Mr. Baade said that, on occasion, Corrections searched the employees when they came in to work. Mr. Baade saw the officers doing the staff searches, and could have just left instead of going in without getting into trouble, but he went ahead and turned the stuff into them. They held him until the State Patrol showed up. Mr. Baade said that, when you are involved in something like that, you can not tell the inmate that you are not going to do it any more. The inmate would go to your superiors, and you would get fired. Mr. Baade felt it was better to give it up that morning. He knew he would probably lose his job, but he did not think he would be incarcerated. Mr. Baade said it happened more than you would like to think, and that it happened before and after him. If he had just left, he would have just received a reprimand from his boss for not going through the search, but he wanted it to be over with because he was tired of having it over his head.

Chairperson Gale asked if Mr. Baade had cooperated with the investigation. Mr. Baade gave them the information he had, including his source. Chairperson Gale asked if the plea bargain was allowed because he cooperated. Mr. Baade said it was that, and because he was not given the normal breaks, like the pretrial diversion program. He could have gotten 10 years for the Class III felony.

Commissioner Johnson asked if Mr. Baade had contacted any brokers regarding employment. Mr. Baade said he had talked to a couple, and there was a broker interested in employing him. Commissioner Wiebusch asked if the broker was aware of his criminal history. Mr. Baade said yes, the broker brought up the Commission=s background check, and they had a discussion about his history. The broker had suggested he contact Director Tyrrell about applying.

Commissioner Johnson asked if Mr. Baade was aware that, even though there was flexibility in real estate, there would be times he could not go to ballgames and events. Mr. Baade said yes. Commissioner Wiebusch noted that 60-hour weeks, and working nights and weekends, were common. Mr. Baade said he thought the financial rewards would be better than in food service. Commissioner Johnson said hopefully.

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

Commissioner Strand noted that he was not on the Commission when the guidelines were developed, and did not know the history of the Commission=s actions in these cases. Chairperson Gale said the guidelines were developed because the Commission intended to play by the same rules for all applicants. Any felony conviction was a very close question. Licensees were given a high degree of public trust, and the Commission did not want it violated. Chairperson Gale said a conviction caused him concern no matter what it was for. Chairperson Gale noted that Mr. Baade had been out of prison for 32 years, was helping raise his kids, and had saved a person from a burning vehicle, which showed public integrity and public interest. At the same time, Mr. Baade had held a high degree of public trust at Corrections, and had violated it, which was why they were tougher with his sentence. His actions could have had a lot of violent consequences, but he was on the right track now.

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

February 26, 9:30 a.m. - Christopher Payne, Potential
Salesperson Applicant - Re-appearance

Director Tyrrell presented an Exhibit which included information regarding Mr. Payne=s criminal history, correspondence regarding Mr. Payne=s Special Appearances, and a Minutes excerpt from his August 20, 2001, Special Appearance. A copy of said Exhibit is attached to and made a part of these Minutes. Mr. Payne was present.

Mr. Payne noted that, at his previous Special Appearance, the Commission had requested that he make another Special Appearance in six months so that they could check on his pattern of behavior. He was still working at Mortgage Express, as a receptionist, file clerk, and processing assistant. He had worked with real estate licensees in that job, and would like to help people find their dream houses. As far as he knew, his performance and prospects there were excellent. He was considering moving to Grand Island, and they offered him a job at that branch. Mr. Payne said he currently had no personal life, because he was working all day and assisting with Mortgage Express=s new telemarketing program in the evenings. He was computer literate, because his father was a LAN administrator. Mr. Payne obtained his GED, because he was expelled due to the incident, and also took one prelicense course at Randall. Chairperson Gale asked if Mr. Payne had any arrests, convictions, or problems with the law since his previous Special Appearance. Mr. Payne said no.

Commissioner Strand noted that the February 8, 2001, urinalysis showed he was using a controlled substance. Mr. Payne said one urinalysis was a false positive, and the retest came back positive also. Mr. Payne said he was using back then, but he has not used since. Commissioner Strand asked if there was any ongoing verification of that. Mr. Payne said no, not since his release in July. Chairperson Gale asked if Mr. Payne had completed parole. Mr. Payne said yes. Chairperson Gale asked if Mr. Payne had pled guilty or had a trial. Mr. Payne said he pled guilty. Chairperson Gale asked if there had been a plea bargain. Mr. Payne said no. Chairperson Gale asked if Mr. Payne had been represented by counsel. Mr. Payne said he had a public defender. Chairperson Gale asked what the prosecuting attorney had recommended. Mr. Payne said he was not sure, but he had received two years= probation. He believed the judge went with what the attorneys agreed to. Mr. Payne spent a month in county jail, then was under house arrest, and then on probation. That probation was revoked, and he served 90 additional days in a correctional facility in Lincoln. Chairperson Gale asked if it was a felony. Mr. Payne said yes, because it was in a school zone. Chairperson Gale asked if he was just a user. Mr. Payne said yes, he was not in distribution. He gave some marijuana to a friend, and when the friend was caught, he told them he got it from Mr. Payne. Chairperson Gale asked if Mr. Payne cooperated in the investigation. Mr. Payne said yes. Chairperson Gale asked if he gave police the name of his source. Mr. Payne said no, that was why they would not plea bargain for him. Chairperson Gale asked if Mr. Payne was still married, living with his family, and raising his children. Mr. Payne said yes.

Commissioner Moline noted that Mr. Payne said he had not used drugs since his release, but asked if he had been around others who had. Mr. Payne said yes, a friend who lived in their basement was a heavy user, but Mr. Payne kicked him out.

Commissioner Shepard asked Mr. Payne=s age. Mr. Payne said he was 22.

Chairperson Gale asked if Mr. Payne was still interested in real estate after taking the Randall course. Mr. Payne said yes, he had always been interested in real estate. Chairperson Gale noted that a felony was a very serious matter, because licensees had a very high degree of public trust, and had a big impact on the lives of their customers. Chairperson Gale noted that Mr. Payne was very young, and asked how long it had been since his release. Mr. Payne said it was since July 2001. Chairperson Gale said he found it troublesome that Mr. Payne was still associating with drug users and dealers. Mr. Payne said he had cut off those associations. Chairperson Gale asked what Mr. Payne=s associations were now. Mr. Payne said they included his family and church on Sunday, and that was about it.

Commissioner Johnson noted that Mr. Payne had made progress with his current job, and had good potential for advancement, and questioned whether Mr. Payne wanted to leave it to go into real estate sales. Mr. Payne said yes, he enjoyed houses. He hoped to eventually do appraisals, and get to know all aspects of the business. Commissioner Johnson said there was a lot more to it than liking houses, and that he was glad to hear Mr. Payne was doing well in the mortgage business.

Commissioner Wiebusch said she was also glad that Mr. Payne was doing well now, but would feel more comfortable if more time had passed between Mr. Payne=s legal problems and his getting a license. Commissioner Wiebusch said she would vote against allowing Mr. Payne to obtain a real estate license.

A motion was made by Wiebusch and seconded by Johnson to not approve Mr. Payne to sit for the examination.

Commissioner Strand noted that the Commission had a similar concern at Mr. Payne=s previous Special Appearance, according to the Minutes, and that Commissioner Johnson had wanted six months to pass before allowing Mr. Payne to sit for the examination. Commissioner Moline agreed that the Commission had said if Mr. Payne was clean for six months, then he would be approved to sit. Commissioner Moline questioned where the Commission was going with this. Commissioner Wiebusch noted that the motion at that time was to reconsider the situation in six months. Chairperson Gale agreed, and said that was what the Commission was deciding today. Chairperson Gale noted that Mr. Payne had a clean record so far since last July, had steady employment, and was living with his family, which were all good things in his life. The question for the Commission was whether 6-8 months of good behavior was sufficient for the public trust that would be placed in Mr. Payne.

Commissioner Moline asked if Mr. Payne had contacted Director Tyrrell, or if Director Tyrrell had contacted him. Director Tyrrell said he had tried to notify Mr. Payne by mail at his last known address, and the letter was returned as undeliverable. Shortly after that, Director Tyrrell received an email from Mr. Payne asking if he could reappear. Commissioner Moline asked if Mr. Payne had tried to keep track of the time. Director Tyrrell said yes, we tried to contact him first, but he contacted us too.

Commissioner Strand asked if a felony conviction would automatically do something to a real estate agent=s licensure. Director Tyrrell said no, not automatically. Depending on the situation, a complaint could be filed, and there could be a hearing. Commissioner Strand asked for clarification that the Commission could intervene. Director Tyrrell said yes, it would be brought to the Commission as an investigative matter. Chairperson Gale noted that the statute gave the Commission the power to deny a license on several grounds, including moral turpitude, and most felony convictions would fall within the statute, so the Commission could decide whether to take disciplinary action depending on the circumstances.

Chairperson Gale said he thought Mr. Payne was doing great, but that he did have concerns because it had been a pretty short time since Mr. Payne=s incarceration. Chairperson Gale said he would probably vote against licensure, because he did not think there was enough track record at this time.

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

Director Tyrrell noted that, because the motion to deny licensure failed, Mr. Payne would be allowed to sit for the salesperson examination after making proper application, and to have a license issued upon passing.

By Exhibit - James Roger Nelson, Non-Resident Salesperson Applicant

Director Tyrrell presented an Exhibit which included Mr. Nelson=s reciprocal non-resident salesperson=s application, and information regarding Mr. Nelson=s criminal history. A copy of said Exhibit is attached to and made a part of these Minutes. Mr. Nelson was not present.

Director Tyrrell reviewed the Exhibit. Under the Commission=s new guidelines, this application had to be brought to them, because it involved a financial matter. Director Tyrrell noted that Mr. Nelson was licensed in Colorado and was applying for a reciprocal Nebraska license, and had offered to drive to Lincoln for a Special Appearance if the Commission felt it was necessary.

Commissioner Moline asked if Mr. Nelson was moving to Nebraska. Director Tyrrell said no, he was staying in Colorado, but Nebraska had lots of non-resident licensees.

Commissioner Moline asked if Mr. Nelson had falsified a loan application. Director Tyrrell said he had falsified his income. Chairperson Gale asked if anyone had suffered a loss as a result. Director Tyrrell said he did not think so. Commissioner Strand noted that Mr. Nelson was convicted of a crime. Chairperson Gale noted that the conviction was in Nebraska. Director Tyrrell said the conviction was in 1987, and Mr. Nelson had served 3 years on probation. Commissioner Strand noted that it was 2 years on probation. Chairperson Gale asked if Mr. Nelson had only been licensed in Colorado since June 1, 2001. Director Tyrrell said yes. Chairperson Gale noted that the sentencing letter was pretty positive. Commissioner Strand also noted that Mr. Nelson had paid restitution of $2300 as a condition of probation.

After discussion, a motion was made by Moline and seconded by Strand to issue a reciprocal non-resident salesperson=s license to Mr. Nelson, after receipt of all required documentation and fees. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Consider Revisions to Title 302

Director Tyrrell presented an Exhibit which included proposed revisions to Title 302. A copy of said Exhibit is attached to and made a part of these Minutes. Director Tyrrell noted that a committee consisting of Commissioner Wiebusch, Commissioner Moline, staff, and members of the Nebraska Realtors7 Association were in agreement on the revisions.

Director Tyrrell reviewed the changes made since the last Commission Meeting. For the effective date on the last page, Director Tyrrell recommended that it be the same as the new agency brochures, which was January 1, 2003. The implementation process could be the same for both, that it was OK to use the new form prior to the effective date, but mandatory after 1-1-03. The Commission agreed by consensus.

Commissioner Moline asked if a licensee would need to get a new form completed and signed if an agreement entered into prior to 1-1-03 included the old form. Director Tyrrell said yes.

A motion was made by Johnson and seconded by Wiebusch that the Exhibit be considered as a preliminary draft for publication purposes as amended at today=s meeting; that staff could make grammatical and punctuation changes as needed; and that the rule-making process continue to the public hearing stage. Motion carried with Johnson, Moline, Shepard, Strand, Wiebusch, and Gale voting aye, and with Nigro not participating or voting, being absent and excused.

Discussion of Potential Commission Retreat

Chairperson Gale noted that, in discussion with staff, he realized a retreat was fraught with problems because of the Open Meetings Law requirements. Chairperson Gale did not know how to accomplish a retreat with those requirements. Director Tyrrell said the Commission could not if it wanted the retreat to be private. Director Tyrrell noted that the Commission=s objectives were usually done in advance, and could be a discussion item on the agenda. Chairperson Gale said the Commission could just build in the time for discussion at a regular meeting. Director Tyrrell said that was correct. If the Commission wanted to hear a specific speaker, they should let Deputy Director Hoffman or Director Tyrrell know in advance, so they could attempt to get the speaker at an ARELLO meeting. ARELLO was always looking for ideas and speakers for forums. Chairperson Gale noted that would include lots of other people. Chairperson Gale said the Commission could just put it on the agenda, and bring in a speaker at a regular meeting. Chairperson Gale asked the Commissioners to keep it in mind, and that the Commission had funds available and could do it at Lincoln meeting.

Commissioner Moline noted that the Commissioners could have lunch or dinner together, as long as they did not discuss business. Director Tyrrell said that was correct, and it was also permissible to have a chance meeting, or to all attend another meeting such as ARELLO. If something came from the meeting, or if the Commissioners crystallized a decision there, it could be a violation of the Open Meetings Law. The Commission needed to be careful, because that would be like making decisions in closed session. Director Tyrrell noted that the Commission could discuss issues in closed session, but had to come out of closed session in order to make decisions. Chairperson Gale asked if the Commission could do planning, just not make decisions. Counsel Widger noted that closed sessions could be done to discuss litigation, Attorney General opinions, purchasing decisions, or anything that would injure the reputation of parties involved, but all decisions must be made in open session.

Chairperson Gale said he did not intend to use the retreat for making nitty-gritty decisions. He just wanted to get an overview of the industry and how it all worked. Director Tyrrell said that, if there was a formalized process, it must be done in open meeting. The chance meeting provision was a limited exemption so that notice was not required, for example, to send four Commissioners to an ARELLO meeting in Ft. Worth. If the Commissioners were called together to conduct Commission business, the meeting had to be noticed. Counsel Widger emphasized that Commissioners did not discuss issues or make decisions while at lunch.

Chairperson Gale asked if a meeting would have to be noticed if the Commission just had speakers come in for educational purposes. Counsel Widger said yes, that it was better to err on the side of caution.

Legislative Matters

Director Tyrrell reported that LB 863 was on General File, but had not yet been prioritized as of yesterday.

Director Tyrrell presented an Exhibit which consisted of a letter regarding the Commission=s concerns on LB 1049. A copy of said Exhibit is attached to and made a part of these Minutes. Director Tyrrell noted that the legal counsel of the legislative committee made him take a position on the bill, rather than remain neutral with serious concerns. It was his understanding that the district court judges were also in opposition, even though they instigated the bill. The Attorney General=s office had a $1.9 million fiscal note for the bill, and a similar amount was expected from the judges.

No action was necessary on this Report.

Information Matters

Trust Account Examination Evaluation Report - Fourth Quarter 2001

Director Tyrrell presented the Trust Account Examination Evaluation - Fourth Quarter 2001 Report. A copy of said Report is attached to and made a part of these Minutes.

Director Tyrrell reported that comments were again very positive, and noted the comments regarding examiners= willingness to work around brokers= schedules. There was an inquiry regarding non-resident broker examinations, and Director Tyrrell noted that examiners performed some non-resident examinations, generally near the border. Staff were trying to develop an examination-by-mail program, like the resident program for inactive trust accounts.

Chairperson Gale asked if there had been discussion of having the Nebraska Real Estate Commission examine title company trust accounts, instead of the Department of Insurance. Director Tyrrell said that would not be likely to happen, because Insurance was a code agency and Real Estate was a non-code agency, and they addressed different industries. Director Tyrrell had provided the Department of Insurance and members of the Legislature with information and forms used by the Nebraska Real Estate Commission trust account examination program.

No action was necessary on this Report.

ARELLO Spring Meeting - April 10-13, 2002

Director Tyrrell reminded Commissioners to make their hotel reservations by March 4 if they planned to attend, and to get their registration forms in to the office.

Commissioner Moline noted that there would be a committee meeting regarding the website database and the model law during the Spring Meeting, and asked Commissioners to get their comments to him as soon as possible.

No action was necessary on this Report.

Future Meeting Dates

April 3-4, 2002 - Staybridge Suites, Lincoln
May 7-8-9, 2002 - Staybridge Suites, Lincoln
June 12-13, 2002 - Staybridge Suites, Lincoln
August 21-22, 2002 - Staybridge Suites, Lincoln
September 25-26, 2002 - Staybridge Suites, Lincoln

Recesses and Adjournment

At 10:00 a.m. on February 26, Chairperson Gale declared a brief recess, and reconvened the Meeting at 10:16 a.m.

At 11:47 a.m., Chairperson Gale passed the gavel to Acting Chairperson Wiebusch, and was excused from the remainder of the Meeting.

At 11:48 a.m. on February 26, there being no further business to come before the Commission, a motion was made by Moline and seconded by Shepard that the Meeting adjourn. Motion carried with Johnson, Moline, Shepard, Strand, and Wiebusch voting aye, and with Nigro and 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 February 26, 2002, Meeting of the Nebraska Real Estate Commission were available for inspection on March 11, 2002, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Guests Signing the Guest List

Jerry Ahlvers, Nebraska Realtors7 Association, Omaha
Jack McSweeney, Nebraska Realtors
7 Association, Kearney
Perre Neilan, Nebraska Realtors
7 Association, Lincoln
Harding Collis, NP Dodge, Omaha
Mary Sears, CBSHOME Real Estate, Omaha
John E. Wiedel, Re/Max Real Estate Group, Lincoln