NEBRASKA REAL ESTATE COMMISSION

June 14, 2006

Ramada Limited South                         Goldenrod Room                         Lincoln, NE


Opening

Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:02 a.m. on June 14, 2006, in the Goldenrod Room of the Ramada Limited South, located at 1511 Centerpark Road in Lincoln, Nebraska. All of the members of the Real Estate Commission were present, with the exception of Commissioner Shepard, who was absent and excused. Also present were Deputy Director for Education Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Wade. Amie Martinez, Special Assistant Attorney General and Counsel to the Commission, was present for the presentation of the Stipulation and Consent Order for Steven Lee Taylor.

Notice of Meeting (Adopt Agenda)

Deputy Director Hoffman presented a public notice and proofs of publication thereof relating to this meeting, all of which are attached to and made a part of these minutes. Chairperson Gale reported that all Commissioners had been notified of the meeting simultaneously, in writing, and that a proposed tentative agenda accompanied the notification.

Chairperson Gale pointed out to those in attendance that a public copy of the materials being used during the meeting 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.

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

Minutes of May 3, 2006

The minutes of the Commission meeting held on May 3, 2006, were considered.

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

Receipts and Expenditures Reports

Deputy Director Hoffman presented the Receipts and Expenditures Reports for April and May. Copies of said reports are attached to and made a part of these minutes. Deputy Director Hoffman noted that an explanation page was included on each report.

Regarding the April report, Deputy Director Hoffman noted that any unusual items were set forth on the explanation pages, but noted that the Aother contractual services@ expense was higher than budgeted due to the resolution of a billing problem with Nebraska.gov that had delayed previous expenditures. She also noted Apostage@ expense was more than budgeted due to the mailing of the Commission Comment. Commissioner Poskochil noted that fees collected for salespersons transfers were higher than budgeted and asked for clarification. Deputy Director Hoffman indicated there were several group transfers that occurred during the beginning of the year. Chairperson Gale noted the legal fees were lower than budgeted. Chairperson Gale inquired as to why building rent expense was not at the budgeted rate. Deputy Director Hoffman indicated that when the lease contract gets signed the rate will probably be the budgeted rate.

The cash fund balance as of April 30, 2006, was $963,304.73, which compared to a cash fund balance of $973,860.72 on April 30, 2005.

The cash fund balance as of May 31, 2006, was $930,798.29, which compared to a cash fund balance of $936,200.42 on May 31, 2005.

For the May report, Deputy Director Hoffman noted that there was nothing unusual to report in Receipts. Expenditures Category 515500 Ahealth insurance@ expense reflects the deficit appropriation allotted to our agency. Commissioner Johnson asked who constituted the group the health insurance was based upon. Deputy Director Hoffman indicated the group was of all state employees.

Commissioner Johnson asked if the Commission Comment Newsletter could be emailed instead of mailed to reduce the postage expense. Deputy Director Hoffman explained that email addresses are not presently acquired from the licensees. Commissioner Johnson inquired if other jurisdictions offer newsletters via email. Deputy Director Hoffman noted that she believed there are a few that email the newsletters. Her concern is the Commission Comment Newsletter is a major communication tool and should be available to everyone, it is also available to download from the Commission website. Chairperson Gale noted there are some inconveniences to a digital newsletter and it would most likely be read more if in printed form. Commissioner Poskochil indicated that he would like to see both a printed copy as well as an email copy sent to give adequate notice to the public, but believes it is worth the money to print.

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

Specialized Registrations - none

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

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.

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

Amended Reciprocal Agreement with Kentucky Real Estate Commission

Deputy Director Hoffman presented an exhibit which consisted of the proposed amended reciprocal agreement with Kentucky, a copy of which is attached to and made a part of these minutes.

Deputy Director Hoffman noted the changes to the reciprocal agreement included language to their agreement to specify reasons a license would not be issued, and also to acknowledge the three hour course now required in Nebraska.

Commissioner Poskochil asked if more jurisdictions would be changing the agreements due to the new three hour course required by Nebraska. Deputy Director Hoffman indicated only a few jurisdictions are still looking at the agreement, the other jurisdictions do not have any changes. Commissioner Johnson asked how many agreements Nebraska currently has with other jurisdictions. Deputy Director Hoffman counted thirty-two.

After discussion, a motion was made by Johnson and seconded by Grady to authorize Director Tyrrell to enter into the amended reciprocal agreement with Kentucky. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Amended Reciprocal Licensing Memorandum of Understanding with North Carolina Real Estate Commission

Deputy Director Hoffman presented an exhibit which consisted of the proposed amended reciprocal licensing memorandum of understanding with North Carolina, a copy of which is attached to and made a part of these minutes.

Deputy Director Hoffman noted the changes to the reciprocal licensing memorandum of understanding were to accommodate the new single license concept implemented in North Carolina. The memorandum indicates the provisional broker license issued by North Carolina is equivalent to the Nebraska salesperson license and the broker license is equivalent between the two states.

After discussion, a motion was made by Grady and seconded by Johnson to authorize Director Tyrrell to enter into the amended reciprocal licensing memorandum of understanding with North Carolina. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Examination Reports - April and May

Deputy Director Hoffman presented for ratification the April and May Examination Reports, copies of which are attached to and made a part of these minutes.

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

Real Estate Education Matters

Pre-License Education Instructor Approval

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

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.

Continuing Education Activity Significant Change

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.

Commissioner Poskochil asked to review the course outline for the new continuing education activity offered by Lorman Business Center. Deputy Director Hoffman noted that a copy would be sent to his office.

Chairperson Gale expressed concern for real estate licensees, who are also notaries, that they should be properly educated. Deputy Director Hoffman noted that there are currently no continuing education course offered that have an emphasis on being a notary, however, if the Notary Division would like to provide an article it could be included in a future Commission Comment Newsletter publication.

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

Pending Sworn Complaints and Investigative Matters

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

No action was necessary on this report.

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

Item A Complaint # 2006-001 Grapes Family Farms, LLP vs. John Francis Stock and James Eugene Stock

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

After being advised of the results of the investigation and discussion, a motion was made by Poskochil and seconded by Grady that the complaint be dismissed without prejudice and a letter of admonishment be sent to the Respondents. Motion carried with Bohrer, Grady, Griess, Poskochil, and Gale voting aye, with Johnson voting nay, and with Shepard not participating or voting, being absent and excused.

Item B Complaint # 2006-011

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

After discussion, a motion was made by Grady and seconded by Johnson that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Item C Complaint # 2006-013 Thomas R Zuk vs. Fred N Tichauer

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

After being advised of the results of the investigation and discussion, a motion was made by Poskochil and seconded by Grady that the complaint be dismissed without prejudice and a letter of admonishment be sent to the Respondent and the Buyer=s Agent. Motion carried with Bohrer, Grady, Griess, Poskochil, and Gale voting aye, with Johnson voting nay, and with Shepard not participating or voting, being absent and excused.

Item D Complaint # 2006-017 Marlene Butcher vs. Steven Charles Herron

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

Item E Complaint # 2006-018 Sara Berns and Rudie Hill vs. James K. Hunt

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

Item F Complaint # 2006-020 Bobbi Decker and Fred Brown Jr. vs. Rebecca Mae Estrada

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

After being advised of the results of the investigation and discussion, a motion was made by Poskochil and seconded by Griess that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Item G Complaint #2006-023 Frances Cervantes vs. Cheryl Lea Kerrigan

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

Item H Complaint # 2006-027 Bruce A. Anderson vs. Jerry Thomas Vogel

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

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

Item I Investigative Report on Melvin R. Dryer Matter

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

After discussion, a motion was made by Grady and seconded by Griess that a complaint be filed and set for hearing on Neb. Rev. Stat. '81-885.24(29). Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Presentation of Stipulation and Consent Orders

Complaint 2005-040,
Marshall Borchert and Jennie Borchert vs. Steven Lee Taylor

The presentation of a Stipulation and Consent Order was held on June 14, at 9:30 a.m., in the matter of Complaint 2005-040, Marshall Borchert and Jennie Borchert vs. Steven Lee Taylor.

Amie Martinez, Special Assistant Attorney General and Counsel to the Commission, appeared for the presentation of the Stipulation and Consent Order. Respondent Steven Lee Taylor was represented by Counsel Scott Vogt of Lincoln. Prior to discussion of this matter, Commissioner Griess recused herself, thereby nullifying any potential conflict of interest.

Counsel Martinez presented to the Commission the Stipulation and Consent Order. A copy of said Order is attached to and made a part of these minutes.

Counsel Martinez reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Mr. Taylor. The Order specified a censure plus three hours of additional continuing education in disclosures, to be completed within 90 days.

Counsel Vogt noted that Mr. Taylor had no prior problems, while there were multiple mistakes which led to misrepresentation all were promptly corrected. Counsel Vogt indicated Mr. Taylor had agreed that he was negligent.

Chairperson Gale noted the three hours of additional continuing education is less than the normal penalty. Deputy Director Mayrose explained that the penalty started at six hours of additional continuing education and, through negotiations, was reduced to three.

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

Complaint 2006-030,
Commission vs. Daniel Jay Dunne

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2006-030, Commission vs. Daniel Jay Dunne. 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. Dunne. The Order specified a censure plus three hours of additional continuing education in the area of license law, and three hours in the area of agency, to be completed within 90 days.

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

Deputy Director Mayrose then asked that Complaint #2006-015 be dismissed as it was pending outcome of this Stipulation and Consent Order. A motion was made by Poskochil and seconded by Griess that Complaint #2006-015 be dismissed. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Hearings

June 14, 9:30 a.m. - Complaint #2006-005,
Commission vs. David Emerson Jeffers

The hearing scheduled for Complaint #2006-005, Commission vs. David Emerson Jeffers, was continued.

Informal Special Appearances

Glen Ingram, Salesperson Applicant

Deputy Director Hoffman presented exhibits which included correspondence regarding Mr. Ingram=s special appearance, Mr. Ingram=s salesperson application, information regarding Mr. Ingram=s criminal history, and letters of explanation by Mr. Ingram. A copy of said exhibit is attached to and made a part of these minutes. Mr. Ingram was present.

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Ingram indicated that approximately 12 years ago he did not make an intelligent decision, and has had no problems with the law since. Mr. Ingram noted his father sold real estate in Illinois, and that is how he became interested in real estate. Mr. Ingram stated that since 12 years had passed since his infraction, he felt he had a good chance that the Commission would allow him to pursue his license.

Chairperson Gale asked if Mr. Ingram had considered getting a pardon. Mr. Ingram had not pursued a pardon but would consider it.

Mr. Ingram noted he currently works in sales. Mr. Ingram also noted the fine for this infraction was paid right away and he was released from a two-year probation after one year for meeting all of the requirements of his probation.

Chairperson Gale asked if Mr. Ingram had any drug or alcohol problems. Mr. Ingram indicated that he did not and that this infraction was not committed to support a habit. Commissioner Grady asked Chairperson Gale how long the pardon process would take. Chairperson Gale noted that the process could take approximately three months.

Commissioner Poskochil asked if there were two charges, delivering and possession? Mr. Ingram noted that the possession charge was dismissed and he was convicted on the delivery charge.

Commissioner Johnson asked if Mr. Ingram had spoken with real estate brokers who were interested in employing him. Mr. Ingram indicated he had spoken with a broker and had also received a great deal of mail offers.

Commissioner Poskochil noted Mr. Ingram had done an excellent job since the infraction and perhaps learned from his mistake.

After discussion, a motion was made by Poskochil and seconded by Bohrer to allow Mr. Ingram to sit for the salesperson examination after making proper application and to have a license issued upon passing. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Adam Wayne Eppolito, Salesperson Applicant

Deputy Director Hoffman presented exhibits which included correspondence regarding Mr. Eppolito=s special appearance, Mr. Eppolito=s salesperson application, information regarding Mr. Eppolito=s criminal history, and letters of reference. A copy of said exhibit is attached to and made a part of these minutes. Mr. Eppolito was present.

Mr. Eppolito distributed a letter of reference. A copy of said exhibit is attached to and made a part of these minutes, denoted as exhibit 12b.

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Eppolito noted he lived in Norfolk where he was born and raised. Mr. Eppolito indicated that his family was dysfunctional. Mr. Eppolito also explained that he did not want to make excuses, but that he had made some bad decisions. Mr. Eppolito indicated he has been working in retail sales and has been told by numerous people to sell real estate, so he thought he would pursue it. Mr. Eppolito also thanked the Commission for taking time to listen to him. Mr. Eppolito noted he had a driving under suspension recently, but currently he has his license, and insurance.

Chairperson Gale asked if Mr. Eppolito had any conversations with real estate brokers. Mr. Eppolito indicated he had spoken with several people as well as real estate brokers. If given the opportunity, Mr. Eppolito indicated he would like to be employed with a local real estate company with whom he had already taken classes. Deputy Director Hoffman clarified the classes Mr. Eppolito had referred to were actually approved correspondence courses for which the real estate company held study groups. Mr. Eppolito also indicated that in the future he would like to pursue obtaining a brokers license.

Chairperson Gale asked what kind of counseling he had previously received. Mr. Eppolito said the counseling he received was family counseling for problems with his mother. The counseling was prior to the time his problems with the law started. Mr. Eppolito indicated the counseling was not for drug or alcohol abuse, he does not do drugs or abuse alcohol.

Chairperson Gale inquired about the charge he received for unlawful consumption of alcohol. Mr. Eppolito indicated he lived in Kearney at the time, he came home from work and his roommates had a party. At that time Mr. Eppolito was a manager at a fast food restaurant and one of the employees he supervised was at the party. The employee asked Mr. Eppolito for a ride home. When Mr. Eppolito was taking him home he got pulled over for a broken license plate bracket. Since there was a minor with alcohol in the car, who falsely indicated Mr. Eppolito bought the alcohol for him, he got charged for this offense and at the same time, Mr. Eppolito was driving on a suspended license.

Chairperson Gale stated that driving under suspension and with no license to drive dated back to 1997. Mr. Eppolito said it began when he forgot to pay a speeding ticket, therefore, his license was suspended. Mr. Eppolito did not realize that if you do not pay a fine in the State of Nebraska, your drivers license becomes suspended.

Chairperson Gale expressed concern for his troublesome record. Chairperson Gale indicated that the Commission has to protect public welfare, and Mr. Eppolito would be dealing with the public if a real estate license was granted. Chairperson Gale asked if Mr. Eppolito had any driving accidents. Mr. Eppolito indicated he was not in any accidents. Chairperson Gale asked if he had been pulled over for speeding. Mr. Eppolito indicated that one or two times he was pulled over for speeding, but only for going 5 to 7 miles per hour over at the most.

Commissioner Grady asked Mr. Eppolito to explain his part-time employment history since 1981. Mr. Eppolito indicated he worked at a bar in Norfolk as a bartender, only when they needed help. Mr. Eppolito indicated that he currently has an internet company where he buys and resells jeans, and also sells auto parts. Mr. Eppolito noted this is more of a full time job.

Commissioner Griess asked for the circumstances surrounding the theft by deception. Mr. Eppolito indicated he got into trouble writing checks for food. Commissioner Griess asked if these were non-sufficient funds checks. Mr. Eppolito said they were. Commissioner Griess asked if the amount of bad checks written was approximately $1,000.00. Mr. Eppolito said that it was approximately $1,000.00, which was paid back by having his wages garnished.

Commissioner Poskochil indicated that there has been nothing new on his record recently. Mr. Eppolito indicated that in August his insurance record would be clean. Commissioner Poskochil stated that Mr. Eppolito appeared to be going in a good direction, however, there are a lot of rules and regulations to follow in order to be licensed. Commissioner Poskochil felt Mr. Eppolito needed more time to prove that he is turning his life around. Commissioner Grady agreed with Commissioner Poskochil that there has been a short time lapse since the last infraction, but encouraged Mr. Eppolito to keep up the good work. Commissioner Grady was not in favor of letting Mr. Eppolito get a license now, but would like Mr. Eppolito to feel free to reapply. Commissioner Johnson felt as soon as another year went by he would feel more comfortable voting for him to get licensed. Deputy Director Hoffman indicated that Mr. Eppolito=s current application would expire in February 2007, that while he would need to submit a new application and fee, the examination fee could be kept on file and the education is good indefinitely.

Chairperson Gale felt Mr. Eppolito made great progress. Chairperson Gale was relieved that there were no accidents on Mr. Eppolito=s record, and no alcohol or drug involvement. However, Chairperson Gale noted that Mr. Eppolito had almost a total indifference to the law, and perhaps Mr. Eppolito did not care back then, but seems to care now with a positive career and family life. Chairperson Gale also believes the public would expect more of a time span between infractions.

After discussion, a motion was made by Poskochil and seconded by Grady that Mr. Eppolito not be allowed to sit for the salesperson examination at this time. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Personnel Matters - Closed Session

At 1:31 p.m., a motion was made by Johnson and seconded by Grady to go into closed session for the purpose of discussing personnel matters. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

At 2:05 p.m., a motion was made by Grady and seconded by Poskochil to go into open session. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

A motion was made by Grady and seconded by Poskochil that the Director receive a 3.25% pay increase effective July 1, 2006. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

A motion was made by Grady and seconded by Johnson that the Deputy Director for Education and Licensing receive a 6% pay increase effective July 1, 2006. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

Information Matters

Title 299, Chapter 5, Subsection 11 Amendments - signed by Governor on May 8, 2006; filed with Secretary of State on May 8, 2006; effective May 13, 2006

Deputy Director Hoffman noted that the amendments to Title 299, Chapter 5, Subsection 11 Amendments completed the approval process and were effective May 13, 2006.

No action was necessary on this report.

ARELLO District Meeting - July 20-22, 2006 -
Oklahoma City, Oklahoma

Deputy Director Hoffman noted that Commissioners Bohrer, Johnson, and Shepard and Deputy Director Hoffman plan on attending the upcoming ARELLO District Meeting.

No action was necessary on this report.

Trust Account Examination Evaluation Report - First Quarter 2006

Deputy Director Hoffman presented the Trust Account Examination Evaluation Report - First Quarter 2006. A copy of said report is attached to and made a part of these minutes.

Deputy Director Hoffman reviewed some of the comments received, and how the situations were handled.

Commissioner Poskochil indicated the trust account examiners do an excellent job.

No action was necessary on this report.

Increase in Cost of Criminal Background Checks

Deputy Director Hoffman presented an exhibit which consisted of a letter received from the Nebraska State Patrol, a copy of which is attached to and made a part of these minutes.

Deputy Director Hoffman reviewed the letter which indicated the fee for fingerprint based checks will increase from $33.00 to $38.00 on June 1, 2006.

No action was necessary on this report.

Report on Meeting Facilities

Administrative Assistant Monica Wade was asked to review other facilities in which the Commission Meetings could be held. After visiting the facilities which met the requirements of the Commission. She reported that there are three that will be considered starting with the November meeting.

No action was necessary on this report.

Discussion of Commission Express National Matter

Deputy Director Hoffman presented an exhibit which consisted of a letter received from Jacqueline A. Pueppke, representing Commission Express National, and a response letter from the Commission, a copy of which is attached to and made a part of these minutes.

Deputy Director Hoffman reviewed the letter which indicated Commission Express National=s business is to buy accounts receivable from real estate salespersons. Commission Express National provides cash flow to real estate salespersons by purchasing contract rights and obtaining security interest in their real estate commissions (accounts receivable). Commission Express National purchases the contract rights prior to settlement. Ms. Pueppke inquired as to whether laws in Nebraska would prohibit such a business.

Deputy Director Hoffman reported that Chris Heinrich, Special Assistant Attorney General and Counsel to the Commission, reviewed the letter and did not see any law that would prohibit Commission Express National from conducting business in Nebraska since the business would collect the accounts receivable at the time of closing.

Commissioner Johnson indicated that the terms are usually high. Commissioner Poskochil asked that the specifics of this practice be researched. Commissioner Griess and Commissioner Grady expressed concern that if licensees receive their commission prior to the closing of a transaction, they may not have the incentive to meet their fiduciary duties through to closing. The general consensus was of concern.

Deputy Director Hoffman noted that at least one other jurisdiction had laws to prohibit this type of activity and indicated that the commission could pursue legislation if desired. Commissioner Grady felt the Commission should aggressively oppose this business practice. Commissioner Griess expressed concern that Commission Express National could be doing business in Nebraska prior to legislation being enacted.

A motion was made by Grady and seconded by Poskochil to have the staff research this business practice and to work with counsel to draft legislation to prohibit such a practice.

Perre Neilan of the Nebraska REALTORS7 Association, expressed surprise at the company=s claim that they did business in forty states and asked if Commission Express National only purchases accounts receivable from real estate licensees. Deputy Director Hoffman indicated that she was unaware if they only deal with real estate licensees, but understands that the company was started by real estate brokers.

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

Future Meeting Dates

August 24-25, 2006 - Staybridge Suites, Lincoln

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

Recesses and Adjournment

At 10:15 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 10:30 a.m.

At 12:15 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 12:23 a.m.

At 2:10 p.m., there being no further business to come before the Commission, a motion was made by Poskochil and seconded by Bohrer that the meeting adjourn. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, and Gale voting aye, and with Shepard not participating or voting, being absent and excused.

I, Teresa Hoffman, Deputy Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the June 14, 2006, meeting of the Nebraska Real Estate Commission were available for inspection on June 28, 2006, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Teresa Hoffman
Deputy Director

Guests Signing the Guest List

Perre Neilan, Nebraska REALTORS7 Association, Lincoln
Craig Dullun, CBSHome, Omaha
Rod Faubion, NP Dodge, Omaha
Scott Vogt, Attorney, Lincoln
Glen Ingram, Omaha
Adam Eppolito, Norfolk