Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:05 a.m. on June 28, 2007, in the Meeting Room of the Settle Inn & Suites, located at 2800 Husker Circle in Lincoln, Nebraska. All of the members of the Real Estate Commission were present. Also present were Director Les Tyrrell, Deputy Director for Education and Licensing Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Wade.

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

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

Director Tyrrell noted that agenda items 17g, 17h and 17i had been added since the tentative agenda was mailed to the Commissioners.

The minutes of the Commission meeting held on May 24, 2007, were considered.

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

The cash fund balance as of May 31, 2007, was $773,338.20, which compared to a cash fund balance of $930,798.29 on May 31, 2006.

Specialized Registrations

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

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

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

Chairperson Gale indicated that the broker examinations reflected improvement. Deputy Director Hoffman indicated that the percentage of passing perhaps reflected improvement since more brokers had taken the examination. Commissioner Poskochil asked if the number of examinations taken had decreased. Deputy Director Hoffman indicated that the budget showed some decline in examinations taken.

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

Deputy Director Hoffman noted that the pre-license education provider would be offering the Principles and Practices pre-license education course via the Internet. Commissioner Grady asked what applicant acceptance the provider had experienced with this course. Deputy Director Hoffman indicated that the course had not yet been offered but the course had been marketed and would be available soon.

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.

Chairperson Gale asked if the Real Estate Law pre-license education course would be offered in Wahoo or if instructor Christopher Schicker was located in Wahoo. Deputy Director Hoffman indicated that the school was in Omaha, Mr. Schicker was an attorney in Wahoo.

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

Deputy Director Hoffman reported that on the first day of the workshop there were thirty people in attendance with an excellent representation of educational institutions. On the morning of the first day Dr. Larry Fabrey gave a thorough presentation on how the examinations were built, and then demonstrated the simulations. Dr. Fabrey had given everyone ample opportunity to ask questions and had a lot of interaction with the group. The attendees appeared to gain confidence in the simulation examination.

Deputy Director Hoffman also reported that in the afternoon on the first day of the workshop, Mary Shern, who is with the Georgia Institute of Real Estate, gave a candid account of Georgia educators= experience with simulation examinations. Ms. Shern explained how the State of Georgia converted to the simulation examinations and the mistakes which were made. Ms. Shern admitted that one of the mistakes educators made was to think that the Georgia Commission would delay the launch date of the simulation examinations, which they did not. Ms. Shern pointed out that the Georgia Commission expected the examination to sort in favor of persons with higher level skills and were not sympathetic when the schools= pass rates were somewhat negatively affected initially.

Deputy Director Hoffman indicated Ms. Shern also discussed the types of learning experiences that had to be brought into the classroom to help prepare students to demonstrate more analytical thinking. Mainly, it was minimal lecture, maximum interactive lessons. She said the students saw the sense in the simulations as A real life@ right away. The hardest to convert to the new approach were the instructors.

Both Ms. Shern and Dr. Fabrey indicated that candidates must have exposure to sample simulations before they sit down to take the examination. Deputy Director Hoffman reported that the Commission was addressing this by: putting inserts which contain instructions on how to access sample simulations into the broker application packets and in the letter telling candidates they were approved to schedule an examination; publishing a cover article in the A Commission Comment@ that had been mailed out in June; and having the new Candidate Handbook on AMP= s website and printed versions sent out by the Commission office in application packets.

Deputy Director Hoffman reported that the manual needed to be drafted and edited and sent out to the participants for one final review in July. Her goal was to have the course reviewed by the Commissioners and ready for printing in August. Chairperson Gale asked if this was in keeping with the original objective. Deputy Director Hoffman responded that because of the health challenges during this last year, this had been rescheduled, but that August was, indeed, the revised completion date.

No action was necessary on this report.

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:

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2006-074, Robin T. Schmid, Jeffrey Beaudette and Melissa Larson vs. Keith Eugene Morris. 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. Morris. The Order specified a thirty-day suspension plus three hours of additional continuing education in the area of ethics, to be completed within 180 days of the date of the Order.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2006-076, Nebraska Dirtworks Inc., Kirk Helmink vs. Ronald James Perry. 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. Perry. The Order specified a one-year suspension plus three hours of additional continuing education in the area of ethics, to be completed within 180 days of the date of the Order.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-002, Robert J. Swatek vs. Thomas F. Kean. 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. Kean. The Order specified a twelve-month suspension with the first month served on suspension and the remaining eleven months served on probation plus six hours of additional continuing education, with three hours being in the area of ethics, and three hours in the area of license law, to be completed within 180 days of the date of the Order.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-019, Commission vs. Annette Marie Hirsch. A copy of said Order is attached to and made a part of these minutes.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the Order, which had been signed by Ms. Hirsch. The Order specified a twelve-month suspension with the first month served on suspension and the remaining eleven months served on probation plus six hours of additional continuing education, with three hours being in the area of agency, and three hours in the area of license law, to be completed within 180 days of the date of the Order. The suspension and probation period would commence within 30 days of Ms. Hirsch transferring her real estate salesperson= s license from A inactive@ status to A active@ status.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-020, Commission vs. Dennis Lee Nelson. 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. Nelson. The Order specified a censure of Mr. Nelson= s license.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-021, Commission vs. Timothy Sean Caffery. 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. Caffery. The Order specified a three-year suspension all served on probation. The Order also specified that if Mr. Caffery was charged and convicted of another criminal offense during said three-year period which involved the use or possession of alcohol or any controlled substance, said probation would be immediately revoked effective on the date of conviction of said charge and he would not engage in any activity in the State of Nebraska that required the holding of a Nebraska real estate license for the balance of the three-year period.

Chairperson Gale asked what if the licensee violated his probation. Director Tyrrell indicated there was no reason not to tie that in with the language in the Order. Commissioner Leisey asked if new language could be added to the Order to include this issue. Commissioner Grady asked if they could approve the Order if it included the probation concern or if it needed to be brought back to at a later meeting. Director Tyrrell indicated that the Commission could put in language to include if Mr. Caffery violated his court ordered probation that the probation in the Stipulation and Consent Order would terminate and suspension would result. The Commission could give Chairperson Gale permission to sign it, if the Respondent agreed and signed the amended Stipulation and Consent Order.

A motion was made by Leisey and seconded by Grady to give Chairperson Gale permission to sign the Order if the Respondent accepts the Stipulation with language including that a violation of his court ordered probation would result in termination of the suspension in the Stipulation and Consent Order.

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

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

Director Tyrrell presented exhibits which included: correspondence regarding this special appearance; a Certificate of Discharge; a letter from the Nebraska Department of Correctional Services; a Criminal History Report from the Omaha Police Department; Mr. Abboud= s Nebraska Motor Vehicle Record; a cease and desist letter addressed to the Omaha World Herald; and information regarding Mr. Abboud= s previous special appearances in September 2003 and October 2002 and a cancelled appearance on November 2, 2006. A copy of said exhibit is attached to and made a part of these minutes. Mr. Abboud was present.

Chairperson Gale reviewed the procedure for informal special appearances.

Director Tyrrell explained that Mr. Abboud had been previously approved to have a real estate license under a condition which required him to reappear before the Commission should he apply for a broker= s license. Mr. Abboud was also required to notify the Commission of any involvement with law enforcement within his first two years of licensure. An incident with law enforcement occurred in November of 2003. Mr. Abboud was arrested for felony assault. A complaint was later filed by the Commission which had not been adjudicated as of August of 2005. Mr. Abboud did not renew his salesperson= s license for 2005. The complaint was still pending and was one of the issues resulting in this appearance.

Mr. Abboud explained that the conviction was a second degree assault which was a bar fight. He explained that he had been defending himself and had paid his debt to society for two and one-half years. He had not received probation and had no further obligations. He understood that he had been convicted of a felony but hoped the Commission would grant him his license since he needed to provide for his family. He explained that he currently worked for an attorney in downtown Omaha and during the time he had a real estate license he had been fair with everyone. He also explained that he had fallen back into a bad lifestyle. He had been hanging out at bars which was now behind him and hoped the Commission would give him the opportunity to get back into real estate.

Commissioner Poskochil asked if the altercation had happened the same month that he had received his real estate license. Mr. Abboud indicated that he had been practicing real estate for one year starting in 2003. Director Tyrrell reviewed Mr. Abboud= s licensee file and noted that he had been licensed on November 13, 2003, and the altercation happened in November of 2003 but the charges were not filed until March 2004. Director Tyrrell also explained that the charges triggered notification to the Commission resulting in the complaint. Chairperson Gale asked Mr. Abboud about the altercation at the bar and if the other person involved in the bar fight had been charged in this case. Mr. Abboud explained that the other person involved was never charged. Mr. Abboud also explained that he had gone to the bar and was standing there when some guy shoved him into the bar. At that time he thought the guy was just drunk so he ignored him until he sat down with other people who started antagonizing Mr. Abboud. The guy came up to him again and that was when the manager of the bar approached them and Mr. Abboud explained that he was leaving. When Mr. Abboud went to leave he was hit again by the guy. Mr. Abboud explained that was when he hit the guy with a glass he had in his hand and if he had to do it all over again he would not have gone into the bar that night.

Chairperson Gale asked if the bartender testified on his behalf. Mr. Abboud explained that the bartender did not testified, nor did the waitress who overheard the men antagonizing Mr. Abboud. Mr. Abboud indicated that he did not know the guy who had pushed him, but recognized one of the people with the guy as a person with whom he had had an altercation earlier that night. Chairperson Gale asked if there had been more than one fight. Mr. Abboud explained that he had been in a fight earlier that evening at a different bar. When he went to the bar where he was arrested, the guy he got in the first fight with was waiting for him with three other guys. One of the guys took a jab at him but left after Mr. Abboud hit the other guy with his glass. Mr. Abboud felt he did what he had to do.

Chairperson Gale noted that Mr. Abboud had been sent to jail for five years and asked if he was placed on probation after he was released. Mr. Abboud indicated that he had been discharged and did not receive probation. Chairperson Gale indicated that there had been some concern when he previously appeared and there was concern now after reviewing his life history and after seeing the pattern that might follow his licensing. Chairperson Gale indicated that despite the fact that he had ended up in the situation he did, he was found guilty of a felony. Chairperson Gale explained that Mr. Abboud had blatantly ignored the standards of having a real estate license which the Commissioners had hoped he would adopt and the Chairperson was unsure if Mr. Abboud was ready to be licensed again.

Commissioner Poskochil asked Mr. Abboud to explain how he had a fight with one person and then someone else on the same night. Mr. Abboud indicated that he had a fight with one person, left that bar and went to a different bar. The guy must have called his friends who were waiting for Mr. Abboud at the second bar. Mr. Abboud agreed that he had no business being in the bars and was living a different lifestyle now and had a different focus on life. Mr. Abboud believed he had a different outlook at this point in his life and had proven himself since he had not received probation. Commissioner Poskochil asked when Mr. Abboud had been released from jail. Mr. Abboud explained that he had been discharged on April 20, 2007. Commissioner Poskochil asked if there had been any civil suits in the matter. Mr. Abboud indicated that he had been sued and was unsure if he wanted the case to continue to the Supreme Court. Commissioner Poskochil asked Mr. Abboud to explain how he had changed his lifestyle. Mr. Abboud indicated that he had attended anger management courses, parenting counseling, Alcoholics Anonymous and had taken advantage of all the classes that were available to him and had the certificates to prove the courses he had attended. Commissioner Poskochil felt that Mr. Abboud was on the right path and making the right changes but would like to see more time pass to prove that he was on the right path. Chairperson Gale also felt that not much time had passed since the time of discharge and felt more time was needed to see if Mr. Abboud had learned his lesson and changed his lifestyle or if he would fall back again. Chairperson Gale also noted that Mr. Abboud had not had a real estate license in approximately two and one-half years, therefore not having a license should not impact his current situation. Mr. Abboud requested that the time required by the Commission be as short as possible because he really wanted to get back into real estate. Chairperson Gale explained to Mr. Abboud that the Commission needed to protect the public and maintain a high level of behavior. The public needed to have trust and faith in real estate licensees and this type of conviction was of concern. Chairperson Gale also noted that even though Mr. Abboud may do a good job in real estate, he was unsure how the public would perceive the assault conviction.

Commissioner Shepard indicated that one year from April 30 could be a reasonable time and felt Mr. Abboud had been doing a great job but encouraged Mr. Abboud to keep on the right track.

Commissioner Leisey asked if the standard was to appear before the Commission after one year. Commissioner Shepard indicated that it was usually not less than one year unless there was an overwhelming reason. Commissioner Poskochil noted that it could be two years or five years depending on the individual and the circumstances. Commissioner Poskochil encouraged Mr. Abboud, should he reappear in the future, to provide documentation and proof of a new lifestyle with character references from his peers.

Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard and Gale voting aye.

Director Tyrrell presented exhibits which included correspondence regarding this special appearance and information regarding Mr. Pierson= s previous special appearance on February 20, 2007. 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.

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Pierson explained that he had completed probation and had been disappointed at the end of the last meeting but kept an open mind about reappearing when his probation had ended. He also explained that he had completed his probation three months early and had signed documents so his probation officer could discuss his case with the Commissioners. Mr. Pierson felt he was capable of being a salesperson applicant. He felt he had been well prepared and would like the opportunity to become a real estate salesperson. He would make sure the Commission would not be seeing him at another meeting for disciplinary actions. Chairperson Gale asked if Mr. Pierson had met all the requirements set out by the court. Mr. Pierson indicated that he had paid the fine, received counseling and had attended Alcoholics Anonymous. Mr. Pierson reviewed an impacting speech he had heard and felt it had been an eye opening experience for him since he felt the world revolved around him in his twenties and thirties. Mr. Pierson explained that at another class he attended, the participants felt they were not guilty. He felt that reflected his attitude at the time. Chairperson Gale asked if he had to take an examination to pass these classes. Mr. Pierson indicated that tests were not required for these courses.

Chairperson Gale asked Mr. Pierson how long he had been on probation. Mr. Pierson noted that he had been given nine months but completed the probation three months early. Chairperson Gale asked Mr. Pierson if he used an interlock device when he drove. Mr. Pierson explained that he used it for three months but no longer had the device and had unrestricted driving. Mr. Pierson also explained that he had not had any alcohol since January 1, 2007.

Chairperson Gale noted that on his motor vehicle record it indicated that he had a SR-22 requirement until 2008. Mr. Pierson indicated that a SR-22 is special vehicle insurance which was more pricey and was in place of a bond. Chairperson Gale asked how many convictions Mr. Pierson had for driving under the influence. Mr. Pierson indicated two times. Chairperson Gale asked if Alcoholics Anonymous courses were taken during his probation. Mr. Pierson explained that they were not required but he had taken both Alcoholics Anonymous and Narcotics Anonymous. Chairperson Gale asked if Mr. Pierson considered himself an alcoholic. Mr. Pierson indicated that he was not an alcoholic or a drug addict either, he could stop drinking when he wanted to and did not use drugs.

Commissioner Grady asked Mr. Pierson the reason that he had completed his probation in less time. Mr. Pierson indicated that he was diligent and hard working. He had paid the fine and his probation officer had suggested writing to the judge to get released early since he was a low risk offender. Commissioner Poskochil asked Mr. Pierson if he had any felonies. Mr. Pierson indicated that he had no felonies. Commissioner Poskochil reviewed Mr. Pierson= s exhibit and felt he had a history of getting into trouble. It appeared that alcohol and drugs had affected his behavior. Mr. Pierson indicated that alcohol was involved only when he received his DUI= s and he had not taken drugs. Mr. Pierson explained that one of the convictions he received was disturbing the peace which was due to him playing his music too loud. Mr. Pierson also explained that when he was growing up, it was common for him to question authority. He also explained that he had a dry sarcastic side to him which was sometimes taken wrong. He also noted another conviction when he was at a football game with one of his friends. There was an altercation where he got into trouble but his friend did not Commissioner Poskochil asked if he had been drinking prior to this altercation. Mr. Pierson noted that he had only been drinking when he received his two DUI= s and not during this incident. Commissioner Poskochil asked if he was under the influence when he was in a verbal altercation with the lady he was going to marry. Mr. Pierson indicated that he was not under the influence.

Commissioner Poskochil asked what Mr. Pierson was currently doing for employment. Mr. Pierson indicated that he currently was working as a temporary employee for U.S. Foods in Lincoln. Commissioner Poskochil asked Mr. Pierson when he felt he had changed from the sarcasm and disregard for authority behavior he used to have. Mr. Pierson indicated that when he moved back from California or shortly after he finished up his degree at Nebraska Wesleyan. When he received his diploma, he decided how foolish and selfish he had been and it became clear how time had A caught-up@ with him. Commissioner Poskochil felt that Mr. Pierson was sincere in what he said, but felt that with so much history he would like more time, than just three weeks, to pass. Commissioner Poskochil asked Mr. Pierson how long he had worked at his current position. Mr. Pierson indicated that he had worked there for eight days. Commissioner Poskochil asked where he had previously worked. Mr. Pierson noted that he had worked at the Lied Center for Performing Arts for three years in the summer which was getting old. It was part-time and he had no guaranteed hours. Mr. Pierson understood that the Commission would like to see more time elapse. Chairperson Gale indicated that when Mr. Pierson previously appeared, he was advised to come back and reappear but was not guaranteed that he would be allowed to sit for the examination. Director Tyrrell noted that the normal procedure was to appear before the Commission six months to one year after the completion of probation. Chairperson Gale did not want Mr. Pierson to believe that he would be automatically approved since that was not the policy of the Commission. Chairperson Gale said with Mr. Pierson= s history of behavior in recent years and the seriousness of the offenses, he did not feel he was ready to allow Mr. Pierson to sit for the examination. Maybe in one year, or maybe not, depending on his behavior. Chairperson Gale wished Mr. Pierson well and congratulated him for the early completion of his probation and noted that real estate licensees were held to a high level of behavior. He did not feel that Mr. Pierson was there yet.

Commissioner Leisey expressed his concerns about Mr. Pierson not admitting that he was an alcoholic and indicating that he could stop drinking when he wanted. Commissioner Leisey indicated he would like to see Mr. Pierson stop drinking for a longer period of time then six months. Commissioner Leisey felt that if Mr. Pierson continued down the right path and appeared before the Commission next year he would be more willing to vote in his favor. Commissioner Leisey felt that Mr. Pierson was passionate, had the desire to change his life, was excited about real estate and hoped he would stay on the course he was on.

Commissioner Poskochil felt that setting a timeframe was difficult based on merit and felt that timeframes hinder people. Commissioner Grady felt that the timeframe was established as a minimum. If no timeframe was given, a person could come back in one month. Commissioner Grady hoped that Mr. Pierson would be ready to appear in one year.

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

Director Tyrrell presented information regarding the costs of sending Deputy Director for Enforcement Mayrose to the ARELLO Advanced Investigator Workshop in Orlando, Florida, on August 7-9, 2007. A copy of said letter is attached to and made a part of these minutes.

Director Tyrrell presented a letter written by Susan Geschwender of Randall School of Real Estate, Inc. regarding the completion of education required by Order of the Commission being in-class versus distance education. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell indicated that this matter was placed on the agenda at the request of one of the Commissioners. Commissioner Leisey indicated by requiring a licensee to attend an in-class course, they had to show up and put in their time. Commissioner Leisey also felt that licensees got more out of correspondence courses. But, he valued both processes. Commissioner Shepard expressed appreciation for the letter and that the point Ms. Geschwender made in the letter was well taken. Chairperson Gale indicated that if someone violated the standards of the industry and displayed an unwillingness to comply with the standards, then in-class attendance was the price they should pay to be in good standing. In-class courses provide no short cut, they have to show up to class and spend the time in the classroom.

Commissioner Grady felt that he might be responsible for the letter the Commission received from Ms. Geschwender. His reasoning for requiring in-class courses was because of a comment by a licensee regarding a pre-license correspondence course taken a few years ago. The licensee had commented that the course was a A piece of cake@ . Commissioner Grady, therefore, had prejudged the distance education continuing education courses by virtue of that. He also felt that if all the licensee does is nap for three hours in an in-class course that would be unfortunate. But at least, they had been forced to go to the class rather than sit at home. The goal, however, was to acquire knowledge.

No action necessary

At 1:55 p.m., a motion was made by Shepard and seconded by Grady to go into closed session for discussion of personnel matters. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard, and Gale voting aye.

At 2:50 p.m., a motion was made by Shepard and seconded by Leisey to go into open session. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard, and Gale voting aye.

A motion was made by Poskochil and seconded by Griess that the Director and Deputy Director for Education and Licensing receive a 4.25% pay increase effective July 1, 2007. Motion carried with Bohrer, Grady, Griess, Leisey, Poskochil, Shepard, and Gale voting aye.

LB 104 - No new information was presented.

LB 321 - Director Tyrrell reviewed the exhibit which is attached to these minutes. Director Tyrrell noted that the Legislature had appropriated the expenditure levels requested by the Commission.

Chairperson Gale asked how the pay increase appeal would affect the staff of the Real Estate Commission. Director Tyrrell indicated that all of the staff except for Deputy Director Hoffman and himself were covered by the contract and those nine employees would not be receiving a raise, unless prior to July 1, 2007, the Court of Industrial Relations made a decision on the pay increase that was appealed. Director Tyrrell also indicated that when a decision was made and accepted, it was his understanding from a newspaper article, that the employees would get paid the raise plus interest. However, not all employees will be getting the same raise. As he understood it, there will be a range of raises depending on where the employee was in the salary range and which bargaining unit they were in. Director Tyrrell noted that a two and one-half percent raise is already included in the Commission= s appropriation. However, when the raises are approved, the Legislature would probably add money to the Personal Services Limitation (PSL) with a deficit appropriation bill. The PSL is the limitation on spending set for salaries and per diems. Chairperson Gale asked if the Commission has enough PSL to cover the raises when approved. Director Tyrrell indicated that the Legislature allowed for the 2.5% raise, but if the employees were to get a 9% raise, the Commission would need to be given an increased PSL and additional funding in the next Legislative session and if additional funding is not given then the Commission would have to come up with the money from its remaining appropriation. Chairperson Gale indicated that an increase in the PSL requires legislative approval. Director Tyrrell indicated that the funds could not be taken from the operations portion of the budget and be put into the PSL without legislative action. If needed, there would have to be an amendment passed in the next Legislative session to raise the Commission= s PSL. Commissioner Grady asked what rationale the union had for a raise of up to 9% or if it was just a part of the negotiations. Director Tyrrell indicated that a survey was conducted of other comparable states which set out what each position or job category made. Director Tyrrell also indicated, as he understood it, according to the survey, Nebraska had not kept up with other states and the union is trying to bring equality to the pay of State employees and that was what the appeal would decide.

LB 386 - No new information was presented.

LB 622 - No new information was presented.

Director Tyrrell presented the Trust Account Examination Evaluation Report for the first quarter of 2007. 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 attention.

Commissioner Grady indicated that there were several comments on the surprise element of the examinations. In a small town the word spreads fast. He wondered if the Commission found that no notice still worked and if violations were still found. He also asked if a courtesy notice would hinder the examination process. Deputy Director Mayrose indicated that notice should not be given, even though it only affects the first person in a small town. Director Tyrrell indicated that the Commission, in the past, had sent out letters at the beginning of a quarter which indicated that the examiners would be in the area in the near future. The Commission discontinued the notice because it felt brokers were waiting until the notice and then bringing their books up-to-date.

Chairperson Gale reviewed the comments which expressed gratitude and thanks for the manner in which the examiners conducted examinations. Director Tyrrell explained that the examiners knew that they were the first line of public relations with the real estate brokers and endeavored to make sure they represented the Commission in a professional manner. Commissioner Poskochil noted the obvious helpfulness of the examiners and believed this only benefitted the brokers in their work. Director Tyrrell noted that the examiners make the examination process an educational tool. They often conduct presentations at the end of an examination especially in the smaller firms. Director Tyrrell felt the examiners represent the commission well. Chairperson Gale asked the Director to thank the examiners for the fine work they were doing and the way they represent the Commission. The Director indicated he would.

No action was necessary on this report.

Director Tyrrell noted that Commissioners Grady, Griess, Poskochil and Shepard and Deputy Director Hoffman and he attended the ARELLO Mid-Year Meeting.

Commissioner Griess indicated that the meeting location was beautiful but she did not get as much out of the meeting as she had other meetings. She had attended a management session and received good information. Commissioner Poskochil noted that there was too much duplication especially with the issue of mortgage fraud. Commissioner Shepard felt this was the weakest ARELLO meeting that he had attended and felt there was too much repetition regarding home inspections. Commissioner Shepard felt that future meetings needed to provide fresh information and information which was more pertinent. Director Tyrrell indicated that the round table discussions had become too repetitive. Commissioner Shepard indicated that he had received a lot of good information at the annual meetings. Commissioner Grady indicated that he had not been to a formal inspection of a home until this meeting. He went on the inspection tour offered as part of the meeting. He felt that the inspections done in his area of Nebraska were not thorough and to see how professional inspections were conducted was an eye opening experience for him. Commissioner Grady agreed that the program was light, but it was not a bad experience. Deputy Director Hoffman indicated that she missed most of the sessions since she was attending committee meetings. Director Tyrrell also felt that this meeting was one of the lightest educational programs that ARELLO had put on for a long time. Director Tyrrell noted that the Law Committee would be putting together an orientation package, which everyone should get. It contained information about what ARELLO had to offer. Director Tyrrell indicated that the Committee was going to try to do A briefs@ of real estate laws throughout the Member Jurisdictions. Director Tyrrell indicated he served on ARELLO= s Tenants-In-Common (TIC) Advisory Group which was a liaison with a national task force of real estate and securities related organizations looking into the regulation of TIC projects and the necessary licensing requirements. He indicated he would keep the Commission updated on the work of the Committee.

No action was necessary on this report.

Director Tyrrell noted that Commissioner Poskochil, Deputy Director Hoffman and he met with the Nebraska Realtors Association License Law Task Force on May 1, 2007. They discussed continuing education, pre-license education and the new examinations. Director Tyrrell indicated that he had not received the minutes of the meeting yet but would share them with the Commissioners when he received them. Director Tyrrell felt that the meeting was very positive. Commissioner Poskochil indicated that he would also like to obtain the minutes of that meeting. He felt that the information shared at the meeting was beneficial to understanding issues by those in attendance. He felt the task force had concerns regarding education which Deputy Director Hoffman did a good job of answering. He noted that it was a good meeting. Director Tyrrell indicated that they might meet again, but had not heard yet. Chairperson Gale indicated that he had not heard either and asked if the meeting was to discuss the emerging issues in the industry. Director Tyrrell indicated that they discussed the new simulation examination and other issues. Deputy Director Hoffman indicated that concern was expressed about the re-write of the sales and brokerage outline which she told them was in process. Commissioner Poskochil indicated that the task force had concerns about the penalty phase of the disciplinary process either being too heavy or too light. He felt they now had a better understanding of the Commission= s process.

No action was necessary on this report.

Director Tyrrell presented an exhibit regarding the ARELLO District Meeting, which will be held July 26-29 in New Orleans, Louisiana. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell reported that only Deputy Director Hoffman and he would be attending the meeting and the report of attendees would be given at the August meeting.

Director Tyrrell noted that the examination contract with Applied Measurement Professionals for contract term beginning July 1, 2007, had been finalized and signed.

Commissioner Griess asked what would be changing on the salesperson= s examination. Deputy Director Hoffman indicated that more questions had been added. Commissioner Griess asked if there were concerns on the time given to complete the examination. Deputy Director Hoffman indicated that ample time was given for the examination and time was of no concern.

Director Tyrrell indicated that the Commissioners could use the exhibit for educational purposes and share it with others. He also felt it contained interesting information. Director Tyrrell also indicated that there were some statistics in the Report from the Multiple Listing Service (MLS) in Lincoln from 1986.

No action was necessary on this report.

Deputy Director Hoffman reported that the REEA Meeting had much to offer. That the benefit to her was the opportunity to view performances by educators and continuing education speakers. She indicated that some of these were very good and gave sound information while others had material that was questionable. She indicated that this exposure was beneficial when programs sought credit in Nebraska.

Deputy Director Hoffman noted a particularly good session in which a man who had been convicted of mortgage fraud very eloquently reported his experience. He told of how easy it was to become involved in it, how the red flags were apparent and he ignored or rationalized them and how his 5 years in prison devastated his life and his family. Deputy Director Hoffman noted that she had seen the Education Director for the Nebraska REALTORS Association talking with him but did not know if he had been asked to do a presentation in Nebraska.

Deputy Director Hoffman indicated that besides Christie Jennings from the REALTORS Association, Susan Geschwender from Randall School of Real Estate and Craig Larabee from Larabee School of Real Estate were also there. She felt that was good representation for Nebraska.

No action was necessary on this report.

Director Tyrrell presented an exhibit regarding the ARELLO Annual Meeting, which will be held September 14-17 in New York, New York. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that Commissioners Leisey, Griess and Grady and Deputy Director Hoffman planned to attend the ARELLO Annual Meeting. Director Tyrrell asked that Commissioners planning to attend complete the registration form and send it to the Commission office by August 1, 2007, with a check or credit card information for any guest registration.

No action was necessary on this report.

Director Tyrrell noted that sites for the workshops had been selected: Scottsbluff; North Platte; Kearney; Grand Island; Norfolk; Lincoln; and Omaha. Director Tyrrell also noted that the first workshop would be held on September 24, 2007, in Scottsbluff and they would work their way back across Nebraska and conduct the final workshop in Omaha on September 28, 2007. Director Tyrrell explained that Dick Williams would be reviewing the Errors and Omissions Program loss/claims records and, since he had a PhD in Economics, he would also discuss economic trends and forecasts relating to the real estate industry. Director Tyrrell indicated that the presentation would be approximately three hours and the workshops would be advertised in the A Commission Comment@ newsletter which would be mailed in early August. Commissioner Poskochil asked where the workshop would be held in Lincoln. Director Tyrrell indicated that the Lincoln workshop would be held at the Southeast Community College - Continuing Education Center and the workshops would be offered free of charge.

No action was necessary on this report.

August 23-24, 2007 - Staybridge Suites, Lincoln

October 11-12, 2007 - Villager Courtyard & Gardens, Lincoln

At 10:05 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 10:24 a.m.

At 12:30 p.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 12:50 p.m.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the June 28, 2007 meeting of the Nebraska Real Estate Commission were available for inspection on July 12, 2007, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Warren Wakeland, Nebraska REALTORS7 Association, Lincoln
Susan Geschwender, Randall School of Real Estate, Omaha
Al Avery, Woods Bros Realty, Grand Island
Beth Lube, RE/Max Real Estate Group, Omaha