NEBRASKA REAL ESTATE COMMISSION

October 30, 2008

Staybridge Suites         Staybridge Room         Lincoln, NE


Opening

Acting Chairperson Grady convened a meeting of the Nebraska Real Estate Commission at 9:09 a.m. on October 30, 2008, 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 John Gale, who was absent and excused. Also present were Director Les Tyrrell, Deputy Director for Education and Licensing Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Rut.

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

Acting Chairperson Grady pointed out to those in attendance that a public copy of the materials being used during the meeting were available to the public on the counsel table in the meeting room; that a copy of the Open Meetings Act was posted on the easel located in the northwest corner of the meeting room by the west entrance; and that the procedures followed were in accordance with the Open Meetings Act. Acting Chairperson Grady asked that guests sign the guest list.

Director Tyrrell noted that no agenda items had been added since the tentative agenda was mailed to the Commissioners.

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

Minutes of September 26, 2008

The minutes of the Commission meeting held on September 26, 2008, were considered.

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

Receipts and Expenditures Report for September

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

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

Approve Deficit Budget Request

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

Director Tyrrell explained the proposed request.

After discussion, a motion was made by Leisey and seconded by Bohrer to approve the Deficit Budget Request as presented. Motion carried with Bohrer, Dover, Griess, Leisey, Rouch and Grady voting aye, with Gale not participating or voting, being absent and excused.

Renewal Report

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

No action was necessary on this report.

Specialized Registrations

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

Nonresident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other Jurisdictions Report

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.

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

Examination Report - September

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

After review and discussion, a motion was made by Leisey and seconded by Griess to ratify the September Examination Report for the purpose of issuing licenses. Motion carried with Bohrer, Dover, Griess, Leisey, Rouch and Grady voting aye, with Gale 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.

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 review and discussion, a motion was made by Leisey and seconded by Dover to ratify the two reports. Motion carried with Bohrer, Dover, Griess, Leisey, Rouch and Grady voting aye, with Gale 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. Director Tyrrell noted that one of the references regarding a licensee’s disciplinary action set out the wrong course and that the report had been corrected for the record.

Director Tyrrell provided an update on the Boyer and Young Appeal.

Director Tyrrell reported, as requested by the Commission, that licensees and applicants with expunged or pardoned convictions, according to legal counsel, did not need to report such matters.

No action was necessary on this report.

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

Item A Complaint 2008-006

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

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

After being advised of the results of the investigation and discussion, a motion was made by Leisey and seconded by Rouch that the complaint be dismissed against Respondents 1, 2 and 3 and that the Commission file a complaint on its own motion against Licensee X per Staff recommendation. Motion carried with Bohrer, Dover, Leisey, Rouch and Grady voting aye, with Griess not participating or voting, having recused herself, thereby nullifying any potential conflict of interest, and with Gale not participating or voting, being absent and excused.

Item B Complaint 2008-012

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

After being advised of the results of the investigation and discussion, a motion was made by Griess and seconded by Dover that the complaint be set for hearing per Staff recommendation. Motion carried with Bohrer, Dover, Griess and Grady voting aye, with Leisey voting nay, with Rouch abstaining, and with Gale not participating or voting, being absent and excused.

Item C Complaint 2008-016

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, it was the consensus of the Commission to bring this Investigative Matter back to the Commission after legal counsel review and additional information was gathered.

Presentation of Stipulation and Consent Orders

Complaint 2007-070,
Jeremy and Cristal Hansen vs. Kerri Lea Pearson

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2007-070, Jeremy and Cristal Hansen vs. Kerri Lea Pearson. A copy of said Order is attached to and made a part of these minutes.

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

Complaint 2008-004,
Commission vs. Gary Thomas Thompson and Michael Dean Slatten

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2008-004, Commission vs. Gary Thomas Thompson and Michael Dean Slatten. A copy of said Order is attached to and made a part of these minutes.

After discussion, a motion was made by Boher and seconded by Leisey to enter into the Order as presented.

After further discussion, the pending motion was withdrawn by the mover and second. The proposed Order was not approved.

Hearings

Complaint 2007-043 Gabriel Lee Beavers vs.
Constance Leana Hartig and Connie Sue Smith

The Hearing regarding Complaint 2007-043, Gabriel Lee Beavers vs. Constance Leana Hartig and Connie Sue Smith was continued to the February 2009 Meeting at the request of the Complainant= s Counsel.

Informal Special Appearances

Gregory S. Poor, Salesperson Applicant

Director Tyrrell presented an exhibit which included: correspondence regarding Mr. Poor= s special appearance; a summary of Mr. Poor= s situation; an Indictment from the United States District Court; a Plea Agreement from the United States District Court; a Third Amended Petition for Disciplinary Action issued by the Department of Health and Human Services Regulation and Licensure State of Nebraska; Findings of Fact, Conclusions of Law and Order from the Department of Health and Human Services Regulation and Licensure State of Nebraska; State of Iowa District Court Amendment of Trial Information; Sentencing Order from the Iowa District Court; Case Dismissal from the Iowa District Court; Order of Probation from the Douglas county Court, Criminal/Traffic Division; a report regarding a quashed arrest warrant; a letter from Palazzo Law Firm indicating the warrant had been quashed; correspondence requesting additional information required; a part of the salesperson application form regarding prior convictions; a portion of his criminal background check; additional answers to questions on the salesperson application form; letters of reference; a criminal history report from the Omaha Police Department; Mr. Poor= s criminal history report; and his salesperson application form. A copy of said exhibit is attached to and made a part of these minutes. Mr. Poor was present.

Acting Chairperson Grady reviewed the procedure for informal special appearances.

Mr. Poor explained his past criminal history and expressed interest in receiving a real estate license.

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

Kristine Vergith, Potential Applicant

Director Tyrrell presented an exhibit which included: correspondence regarding Ms. Vergith= s special appearance; a request to sit for the examination from Ms. Vergith; correspondence requesting additional information; a court document which included Ms. Vergith’s sentencing; an explanation of Ms. Vergith’s situation; an Indictment from the United States District Court; an Appearance Bond from the County Court of Dodge County, Nebraska; a Waiver of Preliminary Hearing and Order from the County Court of Dodge County, Nebraska; and letters of reference. A copy of said exhibit is attached to and made a part of these minutes. Ms. Vergith was present.

Acting Chairperson Grady reviewed the procedure for informal special appearances.

Ms. Vergith explained the situation regarding her past criminal history.

After discussion, a motion was made by Leisey and seconded by Bohrer to allow Ms. Vergith to sit for the examination after making proper application and to have a license issued upon passing. Motion carried with Bohrer, Dover, Griess, Leisey, Rouch and Grady voting aye, with Gale not participating or voting, being absent and excused.

Approve Travel to ARELLO Leadership Symposium and Board of Directors Meeting – January 15-18, 2009 – Charlotte, North Carolina

Director Tyrrell presented an exhibit setting out the estimated expenditures. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell indicated that Deputy Director Hoffman had been elected to the ARELLO Board of Directors and this would be the first meeting that would be held for the new Board.

A motion was made by Griess and seconded by Dover to approve the travel to the Meeting. Motion carried with Bohrer, Dover, Griess, Leisey, Rouch and Grady voting aye, with Gale not participating or voting, being absent and excused.

Legislative Matters

Increase "Up-To" Limits of Fees Charged By Commission

Director Tyrrell explained that Senator Langemeier had agreed to introduce the legislation to increase the "up-to" limits of fees charged by Commission. Senator Langemeier indicated that he would introduce the legislation on the first day and get an early hearing date as he has in the past.

No action was necessary with regard to this matter.

Institute Fining Authority for the Commission

Director Tyrrell explained that he and Greg Barton, Special Assistant Attorney General and Counsel to the Commission, met with Fred Hoppe and Tonia Novak, with the Nebraska Realtors Association, to finalize the proposed legislation. He indicated that the final proposed legislation would be brought to the Commission at the December Meeting.

Acting Chairperson Grady voiced his concerns regarding the fines and whether the affiliated licensees opinions were heard since they would be affected the most. Commissioner Leisey felt that since the Nebraska Realtors Association would be introducing the legislation, that concerns should be brought to them. Acting Chairperson Grady asked if fining would be appropriate and if the Commission could do anything different since he did not feel that fining would accomplish anything. He felt that suspension and revocation were suitable punishments. Commissioner Griess felt that if a person received a punishment of suspension all served on probation, that punishment was not hurting them or getting their attention. However, a suspension would be totally disturbing their business. She felt in some cases, fining was another option for penalizing a licensee. She did not feel that fining should be the penalty in every situation, just another tool in certain circumstances which may be more meaningful. Acting Chairperson Grady indicated that fining would be a financial lesson for licensees but felt that suspension would be a good penalty for someone who was prone to break the rules. Commissioner Griess indicated that there were different penalties for different circumstances and there were huge gaps between the current penalties.

No action was necessary with regard to this matter.

Allow Designated Brokers to Manage Branch Offices

Director Tyrrell explained that when the legislation was introduced he would bring a copy of the bill to the Meeting for the Commissioners to review.

Acting Chairperson Grady asked if larger markets were negatively affected by having a branch office without a broker present. Commissioner Griess explained that the law allowed an associate broker to manage more than one branch office, but the designated broker could not manage any branch offices. She indicated that the law had been changed recently, but felt the law had been incorrectly changed. Director Tyrrell explained that the law had changed three or four years ago to allow for an associate broker to manage more than one office. Acting Chairperson Grady asked if the Commission had noticed any problems since the law had changed. Director Tyrrell was unaware of any problems relating to this section of the statutes.

No action was necessary with regard to this matter.

Information Matters

Updated Objectives for 2008 – 2009

Director Tyrrell presented an exhibit regarding the proposed 2008-2009 objectives. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell explained that he had updated the objectives with the new items added at the September Meeting.

No action was necessary with regard to this matter.

ARELLO Annual Meeting – Indianapolis, IN – Report of Attendees

Director Tyrrell noted that Commissioners Dover, Grady, and Rouch and Deputy Director Hoffman and he attended the ARELLO Annual Meeting.

Each of the Attendees discussed their experiences at the ARELLO Meeting.

No action was necessary on this report.

Commission Employee of the Year
Marilyn Masters

Deputy Director Hoffman noted that Marilyn Masters had been selected as the Commission’s Employee of the Year. Marilyn was known to the Commissioners through her testimony as a witness in show-cause hearings. While conscientiously meeting her responsibilities in processing applications for real estate licenses, Marilyn implemented new procedures resulting from changes in statute and rules and regulations. She did this effectively and efficiently allowing citizens to pursue licensure without delay. She sought information and knowledge to facilitate the communication process and foster understanding of these procedures among the staff and the public. Staff had benefited greatly from Marilyn’s work ethic. Marilyn Masters was recognized at a ceremony in the Capitol.

Acting Chairperson Grady indicated that the Commissioners were unanimous in supporting her and congratulating her for the recognition.

No action was necessary on this report.

Future Meeting Dates

December 4-5, 2008 - Staybridge Suites, Lincoln
January 22-23, 2009 - Hampton Inn - Airport, Lincoln
February 19-20, 2009 - Staybridge Suites, Lincoln
March 19-20, 2009 - Staybridge Suites, Lincoln
May 21-22, 2009 - Staybridge Suites, Lincoln

Recesses and Adjournment

Commissioner Leisey was briefly excused from the meeting at 10:20 a.m., and rejoined the meeting at 10:22 a.m.

At 10:28 a.m., Acting Chairperson Grady declared a brief recess, and reconvened the meeting at 10:39 a.m.

At 12:04 p.m., there being no further business to come before the Commission, a motion was made by Leisey and seconded by Dover that the meeting adjourn. Motion carried with Bohrer, Dover, Griess, Leisey, Rouch and Grady voting aye, with Gale not participating or voting, being absent and excused.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the October 30, 2008 meeting of the Nebraska Real Estate Commission were available for inspection on November 4, 2008, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Guests Signing the Guest List

Beth Lube, Re/Max Real Estate Group, Omaha
Kristen Anderson, Nebraska REALTORS7 Association, Lincoln
Bonnie Wood, CBSHOME Real Estate, Omaha
Kristine Vergith, Fremont