Acting Chairperson Poskochil convened a meeting of the Nebraska Real Estate Commission at 9:00 a.m. on May 5, 2008, 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, with the exception of Chairperson Gale, who was absent and excused. Also present were Director Les Tyrrell, Deputy Director for Education and Licensing Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Rut. Greg Barton, Special Assistant Attorney General and Counsel to the Commission, was 
present for the orientation on the prehearing procedures.

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

Acting Chairperson Poskochil 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 and a copy of the Open Meetings Act was posted on the easel located in the northwest corner of the meeting room, and that the procedures followed were in accordance with the Open Meetings Act. Acting Chairperson Poskochil asked that guests sign the 
guest list.

Director Tyrrell noted that agenda item 19 - Hearing Procedures Orientation had been added since the tentative agenda was mailed to the Commissioners.

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

The minutes of the Commission meeting held on April 3-4, 2008, were considered.

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

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

The cash fund balance as of March 31, 2008, was $684,823.34, which compared to a cash fund balance of $862,123.62 on March 31, 2007.

Acting Chairperson Poskochil asked what the anticipated Cash Fund Balance would be at the end of the Fiscal Year. Director Tyrrell indicated that the estimated cash fund balance would be approximately $450,000 to $500,000. The Director indicated the licensing and renewal fees would probably, at least, need to remain current levels. Acting Chairperson Poskochil inquired as to any large expenditures being projected for the next few years. Director Tyrrell 
explained that in the next two to five years, the licensee database system would need to be modified. It could be costly, but he had not received an estimated cost from the system programmers.

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

Specialized Registrations

Time-Share Registrations - 
Amendment for Vacation Village at Parkway

Director Tyrrell presented a Specialized Registrations Report which included a registration of an amendment to the time-share registration for Vacation Village at Parkway. A copy of said report is attached to and made a part of these minutes.

A motion was made by Leisey and seconded by Dover to approve the amendment to the registration as presented. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

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 Grady to ratify issuance of the licenses as set forth in the report. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Director Tyrrell indicated that he had been in contact with all but two of the many jurisdictions with which Nebraska had license recognition agreements. He had had discussions regarding any changes, or lack of changes, being implemented by the other jurisdictions. Some jurisdictions would require Nebraska licensees to take a course in license law, specific 
to that jurisdiction. The length of the course would range from two to six hours of education. There were four or five jurisdictions which would require Nebraska licensees to take the state portion of the real estate examination. He also noted that Iowa had confirmed that Nebraska licensees would be required to take the state portion of the examination. 
He indicated that some jurisdictions would not be changing the agreement; thirteen jurisdictions were reviewing the agreement; and two jurisdictions had not returned his telephone calls or e-mails. He indicated that he would like to finish the addendums to the agreements during the month of May to allow enough time to get the addendums signed and in 
place by July 18, 2008. Director Tyrrell indicated that he was asking the Commission to authorize him to negotiate the best deal possible for Nebraska licensees, to draft the addendums and to sign the addendums amending the current 
agreements.

A motion was made by Leisey and seconded by Dover to allow for Director Tyrrell to negotiate the addendums for the license recognition agreements, draft the addendums and to sign the addendums on behalf of the Commission.

In response to questions, Director Tyrrell indicated that he had not received notification from South Dakota or Kansas, but did feel that Iowa was a big issue. Director Tyrrell indicated he had had preliminary discussions with Colorado, but nothing definitive. Commissioner Griess asked if Colorado currently required additional hours. Director Tyrrell indicated 
that the current license recognition agreement with Colorado was license for license.

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

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

Deputy Director Hoffman indicated that it had been discovered that the statistics page of the Examination Reports for January 2008 and February 2008 had been incorrect. Deputy Director Hoffman indicated that the examination company corrected a coding error which improperly reported the statistics relative to which portion of the examination had been failed. She 
indicated that the coding error had no effect on the overall pass/fail rate or the individual score reports as reported previously and that the incorrect pages on the Reports had been replaced with the corrected pages in the minutes of the January and February Meetings.

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

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

Acting Chairperson Poskochil indicated that there were several construction related courses and asked if they covered new aspects of the topic. Deputy Director Hoffman noted that one of the courses focused on how to represent the builder or developer more appropriately and one developed by a continuing legal education provider was an in-depth look at construction 
contracts.

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

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

Director Tyrrell indicated that at the April meeting there had been subpoenaed witnesses who had not appeared for the Hearing. The Commissioners had asked what the consequences were for not appearing when subpoenaed. Director Tyrrell had asked for and received an answer to that question from Counsel Barton. Director Tyrrell reported that the Commission 
could make a filing with the district court which would require the person to appear and show cause why they should not be held in contempt. Otherwise, there was not much the Commission could do. He also indicated that if the Commission had this situation occur again and the subpoenaed witness was very integral to the case, the hearing could be continued and 
the witnesses could be compelled to attend.

He also updated the Commissioners on the pending appeals for John Clark, and for Mark Boyer and Timothy Young.

No action was necessary on this report.

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

Item A Complaint 2007-043

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

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

A motion was made by Grady and seconded by Griess that the complaint be set for hearing.

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

Item B Complaint 2007-060 - Mary Beth Brandt vs. Scott Mitchell McGowan

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

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2008-014, Commission vs. Michael Patrick Earl. 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. Earl. The Order specified a censure for Mr. Earl plus three hours of additional continuing education in the area of agency to be completed within 180 days of the date of the Order.

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

Deputy Director Mayrose requested Complaint 2007-055 be dismissed. Deputy Director Mayrose explained it was being held in abeyance until Complaint 2008-014 had been adjudicated, which it was at this meeting.

A motion was made by Griess and seconded by Bohrer to dismiss Complaint 2007-055 without prejudice. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint 2008-013, Commission vs. Roger A. Nieman. 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. Nieman. The Order specified a thirty-day suspension served on probation plus three hours of additional continuing education in the 
area of ethics to be completed within 180 days of the date of the Order.

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

The Hearing regarding Complaint 2008-008, Commission vs. Sally Joanne Beyer was continued to the June 2008 Meeting at the request of Respondent's Counsel.

Ryan Paul Jones, Salesperson Applicant - Reappearance

Director Tyrrell presented an exhibit which included: correspondence regarding this special appearance; correspondence requesting additional information from Mr. Jones; an Out-Patient Treatment Discharge Summary regarding Mr. Jones; a Satisfaction of Judgement 
and Sentence for Mr. Jones; letters of reference for Mr. Jones; and information regarding Mr. Jones' previous special appearance in December 2007. A copy of said exhibit is attached to and made a part of these minutes. Mr. Jones was present.

Acting Chairperson Poskochil reviewed the procedure for informal special appearances.

Mr. Jones indicated that he had provided the explanations and letters that the Commission had requested and hoped that would take care of any questions they might have. Commissioner Grady asked Mr. Jones how serious he felt his problems were. Mr. Jones explained that 
he had an alcohol problem and would always have an alcohol problem, which he would have to live with. He felt that in the past he had not taken his drinking problem seriously, but he does now.

Acting Chairperson Poskochil indicated that although the Out-Patient Treatment Discharge Summary received from Dwite A. Pedersen was from a few years back, the summary indicated that Mr. Jones= attitude was good when he was there, but his attendance was spaced. 
Acting Chairperson Poskochil also indicated that the summary recommended completion of steps four and five of Alcoholics Anonymous with sponsorship. Acting Chairperson Poskochil asked what Mr. Jones had completed since the date of the Summary. Mr. Jones indicated 
that he had attended Alcoholics Anonymous every other week with sponsors, but did not finish the twelve-step program. He had been trying to deal with his alcohol problem his own way, by surrounding himself with the right people and staying focused. Acting Chairperson Poskochil 
asked if Mr. Jones still attended Alcoholics Anonymous meetings. Mr. Jones indicated he had gone every other week. Acting Chairperson Poskochil asked if Mr. Jones continued to drink. Mr. Jones felt he had quit drinking approximately 99% of the time. However, he occasionally 
drank a glass of wine.

Commissioner Leisey noted that there were two letters which appeared to be identical with the exception of the signatures. Mr. Jones explained that he had forwarded a letter to one of the individuals to use as an example and the person copied it verbatim. Acting Chairperson Poskochil asked why Mr. Jones= probation officer had not sent a letter or comments on his behalf. Mr. Jones indicated that he had requested any information to be provided to him and the probation officer had sent the Satisfaction of Judgement and Sentence to indicate that he had 
completed his probation. Acting Chairperson Poskochil asked if Mr. Jones completed probation. Mr. Jones indicated that he had completed probation in 2006. Acting Chairperson Poskochil asked Mr. Jones if all of his convictions were misdemeanors. Mr. Jones answered yes.

Acting Chairperson Poskochil asked why Mr. Jones had not reported the conviction information on the Salesperson Application form. Mr. Jones indicated that there had been a gap in time from when he had first applied until his recent application. He explained that he had not reported the misdemeanors, since he did not think they were a big deal. But now he understood their importance. Acting Chairperson Poskochil noted that Mr. Jones was a minor when he received the first two misdemeanors listed and the first two DUI= s were considered first offenses. Mr. Jones indicated that certain charges had been dropped. Acting Chairperson Poskochil asked if the last time Mr. Jones had been arrested was in 2005. 
Mr. Jones believed that was a correct date.

Commissioner Grady asked if Mr. Jones would continue to work for his current employer. Mr. Jones indicated that he would continue employment with his current employer but would like to branch off and try different things, since he was an entrepreneur.

Acting Chairperson Poskochil asked if Mr. Jones had any other encounters with the law. Mr. Jones replied no.

Acting Chairperson Poskochil expressed concern that Mr. Jones had displayed a lack of willingness to follow rules by not reporting the convictions on his application form and his sporadic attendance at the Alcoholics Anonymous meetings. He indicated that Mr. Jones still admitted to drinking, to some degree, and did not feel that Mr. Pedersen had given him a A glowing@ report. Commissioner Bohrer asked if Mr. Jones still met with Mr.
Pedersen. Mr. Jones indicated that while he did not meet with Mr. Pedersen, he attended church for support and did not feel Alcoholics Anonymous helped him.

Acting Chairperson Poskochil also felt Mr. Jones had been dealing with the situation and had not received any additional DUI= s which would indicate that his own way was working.

Commissioner Dover asked Mr. Jones if he had ideas for future business. Mr. Jones indicated that he had a list of things he wanted to accomplish if he received a real estate license.

Commissioner Leisey did not feel that Mr. Jones had to attend Alcoholics Anonymous meetings. Mr. Jones admitted to drinking wine which took courage and he respected Mr. Jones= honesty.

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

Acting Chairperson Poskochil asked if there were any restrictions which could be included in the motion. Director Tyrrell indicated that any other arrests, convictions or charges could be reported to the Commission or the designated broker during a certain time period. Mr. Jones indicated that he would like to eventually receive a broker license.

A friendly amendment was offered by Commissioner Bohrer to require Mr. Jones to immediately report any arrest of alcohol related charges to the Commission. The friendly amendment was accepted by the second.

Commissioner Leisey indicated that he would suggest including in the motion that Mr. Jones not be approved to receive a broker license yet.

A friendly amendment was offered by Commissioner Bohrer to require Mr. Jones receive only a salesperson license and to immediately report any arrest for alcohol related charges to the Commission within one year of licensure as a salesperson and after that one year, he could sit for the broker examination. The friendly amendment was accepted by the second.

Director Tyrrell suggested that the motion be further clarified, either that Mr. Jones could not sit for the broker examination for one year from the time he sits for the salesperson examination or one year from when he receives a salesperson license.

A friendly amendment was offered by Acting Chairperson Poskochil to require Mr. Jones to hold a real estate salesperson license for a minimum of one year before he would be allowed to get a broker license. The friendly amendment was accepted by the mover and the second.

Director Tyrrell reviewed the motion as amended: Mr. Jones be allowed to sit for the salesperson examination after making proper application and have a license issued upon passing; to require Mr. Jones to immediately report any alcohol related charges to the Commission within one year of licensure as a salesperson; and Mr Jones hold a real estate salesperson license for a minimum of one year before being allowed to acquire 
a broker license. The mover and the second agreed with the restatement of the motion.

The motion as amended carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Director Tyrrell presented an exhibit which included: correspondence regarding this special appearance; letters of reference; Ms. Geneski= s criminal history report; and her salesperson application form. A copy of said exhibit is attached to and made a part of these minutes. Ms. Geneski was present.

Acting Chairperson Poskochil reviewed the procedure for informal special appearances.

Ms. Geneski indicated that she had made mistakes in judgement when she was younger and did not think seriously about her actions. She indicated that she had served her time, went through the Alcoholics Anonymous program and had learned from the mistakes she had made. 
She also indicated that she had been employed by an engineering company for eleven years.

Acting Chairperson Poskochil asked if she had spoken with anyone regarding employment in real estate. Ms. Geneski indicated that she would like to go into property management, but had not made any decisions yet. Acting Chairperson Poskochil asked if Ms. Geneski had been on 
probation. Ms. Geneski indicated that she served a thirty-day jail sentence instead.

Commissioner Leisey asked if Ms. Geneski continued to drink and drive. Ms. Geneski indicated that she had learned the severity of drinking and driving and had overcome that. However, she explained that she did have some drinks at home. Commissioner Grady asked Ms. Geneski if she had attended the Alcoholics Anonymous program and to what extent. Ms. Geneski indicated that she had attended the program. Commissioner Grady asked if she had completed the twelve-step program. Ms. Geneski indicated that she had quit drinking for a long time, but had not completed the twelve-step program.

Acting Chairperson Poskochil noted that Ms. Geneski had chose jail time rather than probation when charged in 2004. Ms. Geneski explained that the court was going to recommend outpatient treatment in Omaha which was a forty-five minute drive from her home and without a driver= s license, her husband would have to drive her each day to the treatment center. She indicated that the treatments would have been three nights a week and six months at Alcoholics Anonymous. She would be without a license for one year which was asking a lot from her husband. She further explained that she did not want to inconvenience her husband and also had a child at home who required supervision. Therefore, she put the responsibility on herself and chose to take the jail time. Acting Chairperson Poskochil asked if she took the thirty-day jail sentence with no probation to get out of going through the outpatient treatment. Ms. Geneski noted that transportation was the deciding factor, since she would not be able to get to 
treatment without a driver= s license. Acting Chairperson Poskochil wanted to make sure she was not trying to bypass treatment, only that she just could not get there. She indicated that was not trying to bypass treatment.

Commissioner Grady asked Ms. Geneski how her thirty-day jail sentence affected her employment. Ms. Geneski explained that her employer had hired a temporary employee and held her position for her. Acting Chairperson Poskochil asked if Ms. Geneski= s husband was employed. Ms. Geneski indicated that he also worked in Omaha. Acting Chairperson Poskochil asked if they both commuted to Omaha to work. Ms. Geneski indicated that they both commuted to Omaha but they would both have had to stay in Omaha three nights a week after work which would have left their child at home unsupervised.

Acting Chairperson Poskochil asked if Ms. Geneski had any problems since her last conviction. Ms. Geneski indicated that she had absolutely none. Commissioner Leisey felt that Ms. Geneski had been brutally honest and there had been a lot of good reference letters submitted indicating she was a valued employee. However, he did not like that she still drank, but felt she was using good judgement not to drink and drive.

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

Director Tyrrell presented an exhibit which included a recommendation and a copy of LB 619. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell indicated that LB619 had been passed by the Legislature and would require a change to the returned check fee currently imposed by the Commission and would allow a fee to be charged for an electronic payment which was not accepted against the Commission. He was therefore recommending the Returned Check Fee be reduced to $30.00 and a new fee of $30.00 be charged for an electronic payment which was not accepted against the Commission be approved and made effective on July 18, 2008.

A motion was made by Leisey and seconded by Dover to approve the recommendation as presented.

Acting Chairperson Poskochil asked approximately how many returned checks the Commission received in a year. Director Tyrrell indicated that returned checks were more common during renewal season, but for this last fiscal year only three had been received.

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

Director Tyrrell presented an exhibit which included a copy of Article 24 - Agency Relationships and Title 301, Chapter 1 - Agency Relationships. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that at the April Commission meeting, it had been requested that this matter be placed on the agenda for discussion regarding licensees not complying with the law. Commissioner Griess indicated that she did not feel that licensees understood agency relationship. She indicated that she had a brief discussion about this with Deputy Director Hoffman. Deputy Director Hoffman reported that she was working with a provider on developing a new course that would likely be submitted for approval at the June Commission Meeting. The new course would approach agency law from the perspective of being a benefit to the licensee. The idea was to emphasize the protection afforded the licensee when the licensee disclosed timely and properly and communicated and acted appropriately. The goal of the course was to get licensees to embrace the agency laws rather than just to begrudgingly comply with them. Deputy Director Hoffman confirmed that this would be an A R@ course and indicated that the provider was enthusiastic and that she expected the course would receive a new course content number because of the new approach to content. Commissioner Poskochil voiced support for the positive approach rather than a negative one.

No action was necessary on this matter.

Director Tyrrell presented as an exhibit a draft copy of an article to be published in the A Commission Comment newsletter entitled A Considerations When Operating As A Team In Real Estate. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell indicated that the article had been drafted to be published in the June issue of the Commission Comment newsletter as requested by the Commission. It was being reviewed to acquire the Commissioners comments. The Director pointed out that on page 2 of the article, in the fourth line of the first paragraph the second unlicensed should be  licensed. Commissioner Leisey indicated that the article was good but, the article indicated that most teams were husband and wife, which he did not feel was a correct statement. Director Tyrrell indicated that the reference could be changed. Commissioner Leisey indicated that in Omaha, most teams were the top producers rather than husband and wife. He also indicated that he liked the example given in the article on listings, the process if there were more than one person, and the role of each person. However, he would like to have an example of a team working with the buyer and the roles of each person in that process. Commissioner Leisey asked if all team members names who were representing the client needed to be placed on the Acknowledgment page of the brochure. Director Tyrrell indicated they did. Commissioner Leisey agreed that the article should provide clarification that the agency brochure should have all of the team members names who were representing the client, listed on it.

Acting Chairperson Poskochil indicated that the article should also instruct the licensees to contact their broker should they have any questions. Commissioner Leisey indicated that instructing the licensees to contact their broker with questions would put the burden on the broker. Acting Chairperson Poskochil indicated that licensees were under the broker's supervision and should ask their broker since many licensees would not call the Commission if they had questions. Acting Chairperson Poskochil felt that the comment to ask further questions of the broker should be placed at the end of the article.

Director Tyrrell indicated the article would appear with appropriate changes in the June  Commission Comment .

Director Tyrrell presented as an exhibit a draft copy of an Article to be published in the Commission Comment newsletter entitled A What Can I Do...? . A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that this article had been drafted at the request of the Commission after a hearing which dealt with this issue. It was being reviewed to acquire the Commissioners comments. He indicated that Commissioner Leisey suggested adding an example to the article relating to some brokers policies which state that if a licensee leaves a firm, the listings could be cancelled.

Commissioner Leisey indicated that some may think it would be a violation to cancel a listing. But, they should look at their company policy to see if they can submit a cancellation to the broker upon resignation to see if that was the policy. Commissioner Dover did not feel that the Commission should be going into detail in the article on that subject since it may have unintended repercussions. Acting Chairperson Poskochil felt that the licensees should check with their brokers on the appropriate way to transfer a listing and a general statement should be added to the article to consult the broker regarding the broker s policy.

Commissioner Leisey indicated that over fifty percent of the listings in Nebraska were in Omaha, and Omaha brokers were not having a problem in this regard. However, a broker could always change their policy without notifying the other brokers in Omaha. Director Tyrrell indicated that in the draft article, language could be added that an affiliated licensee should consult their broker regarding policy at the time of transferring their real estate license to another broker.

Commissioner Dover indicated that a licensee should not postpone the listings until transferred since all allegiance should be to the current broker. Commissioner Leisey agreed that the licensee should work for the broker with whom he/she was currently employed not the anticipated broker. Commissioner Dover felt there were some licensees who delay the listings until they are transferred to the new broker which was a disservice.

Commissioner Leisey explained that a licensee just needed to represent the broker with whom he/she was employed. That would prevent any violations. Commissioner Dover explained various ways this could occur. Other scenarios were discussed.

Director Tyrrell suggested that rather than trying to fit all that had been discussed into this article, may be just add those issues that could be easily accommodated and then, in a future issue include guidance on these other matters either as a separate article or in the Director s Desk column. Acting Chairperson Poskochil thought that would be a good idea.

Director Tyrrell indicated the article would be published with appropriate changes in the June  Commission Comment.

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

Director Tyrrell presented an exhibit which included summary of a staff denied request to use unlicensed persons at a kiosk; a copy of the Commission Policy regarding the use of unlicensed persons by licensees; a letter from Mr. Allen Grimes of HearthStone Homes regarding the situation; and a copy of the sales greeter responsibilities. A copy of said exhibit is attached to and made a part of these minutes. Mr. Grimes was in attendance to speak to this matter.

Mr. Grimes indicated that HearthStone Homes had a kiosk at the Oakview Mall where potential buyers would be able to pick out home furnishings such as carpet; schedule appointments with licensees; and pick-up brochures about HearthStone Homes. He explained that the staff at HearthStone Homes were aware of what the unlicensed staff could and could not do. They understand what the statutes say and the unlicensed persons do not sell or negotiate. The intention of HearthStone Homes was not to use the kiosk as a selling place, but rather an information center to invite people to visit the website and to hand out brochures. Mr. Grimes indicated that the company had strict policies in place and wanted to take advantage of the business opportunities such as e-mail, internet, a mall kiosk, etc. He also felt that as opportunities were presented, it would be appropriate to ask for the Commission to reconsider the license laws or the interpretations. He did not feel that a kiosk would violate statute. Like any other company, HearthStone Homes would like to maximize opportunities and distribute the workload to better utilize the associates who are employed.

Commissioner Grady asked if the licensees at HearthStone Homes were paid hourly or if they were salaried. Mr. Grimes indicated that the sales associates and staff were salaried. Commissioner Griess asked if the employees at the Choice Studio were real estate licensees. Mr. Grimes indicated that the Choice Studio staff guides people through the selection process on the design elements, color selections and the like.

Acting Chairperson Poskochil indicated that it appeared that HearthStone Homes was a fine company and although the kiosk might not be a problem for HearthStone Homes, in general, kiosks would be difficult to regulate with regard to what was being said to the consumers. He also indicated that there were other methods of advertising which could help clients find HearthStone Homes services.

Acting Chairperson Poskochil asked Mr. Grimes if HearthStone Homes currently had only one kiosk; what the value of the kiosk was; if it was cost effective; and if the company had projected that the kiosk would replace the cost of advertising on the television and radio. Mr. Grimes indicated that the mall receives a lot of traffic which was great exposure. They were not sure what to expect. He indicated that HearthStone Homes would like to represent themselves this way and have personal interaction with potential clients. Acting Chairperson Poskochil indicated that part of the issue was not knowing what an unlicensed person would discuss with the people at the mall. Mr. Grimes indicated that the staff would not discuss the price, square footage or other aspects which would require licensure. He also explained that staff had parameters which gave them a list of those things they could discuss, such as carpet quality. Acting Chairperson Poskochil indicated that although HearthStone Homes might follow the rules, kiosks would be hard for the Commission to regulate throughout the industry.

Director Tyrrell indicated that when the interpretation was written to include kiosks and open houses, the discussion dealt with prospecting being a licensed activity. Therefore, the restriction was included. He also indicated that if the Commission were going to allow an unlicensed person at a kiosk, the next question would be why an unlicensed person could not be at an open house or a home show to conduct similar activities.

Commissioner Grady was concerned with the concept and did not believe an unlicensed person should be at a mall kiosk. Mr. Grimes indicated that the Choice Studio had been operating for approximately four years and it was not uncommon for people to stop by the Studio. He indicated that at the Studio they explain the home buying process with a wet your whistle tour . He explained that at the kiosk, contact information was not captured. It was more of an invitation to see what was offered. It would not be considered prospecting since they were not trying to establish relationships until the client was with the real estate licensee. At the kiosk, the potential client would be invited to see what HearthStone Homes offers. This approach had been very effective and people had not been offended when an unlicensed person could not answer questions. Acting Chairperson Poskochil asked if the kiosk only dealt with the building of a new home. Mr. Grimes indicated that it would be new home construction. Commissioner Griess referred to the kiosk employee as being a sales greeter on floor duty. Mr. Grimes indicated that the intent was to have a warm welcoming greeter at the kiosk to provide support to clients; to help clients look at cabinets; or to scheduled appointments for real estate licensees.

Acting Chairperson Poskochil asked if there needed to be a motion made on this issue or what needed to be done by the Commission. Director Tyrrell indicated that there were a range of options the Commission had: they could approve; disapprove; take under advisement and determine at a later time; or by making no motion, nothing would change.

Commissioner Griess asked Mr. Grimes how the kiosk was being staffed now. Mr. Grimes indicated that the kiosk had been unstaffed quite a bit of the time and was only staffed when a licensee was available. Commissioner Dover asked what would prohibit a builder from doing this. Director Tyrrell indicated that the Real Estate Commission had no authority over unlicensed builders. Commissioner Grady indicated that he felt that no action should be taken. Acting Chairperson Poskochil asked what the other Commissioners thoughts were and if anyone was in favor of making a motion.

Commissioner Dover asked how HearthStone Homes businesses were set up - was it all one firm or separate firms? Mr. Grimes indicated that HearthStone Homes was one corporation which was the builder and the broker and had the permits licensed under the one name.

Acting Chairperson Poskochil indicated that he felt Mr. Grimes request should be denied due to the fact that not everyone would follow the rules, but he also could agree to delay the decision to receive guidance. Commissioner Dover indicated that the request would not be approved if it was any other company here requesting the use of unlicensed persons. Director Tyrrell indicated that the Commission had, a number of years ago, told a Lincoln real estate company that they could not use unlicensed persons at a kiosk in a Lincoln mall.

A motion was made by Grady and seconded by Griess to deny HearthStone Homes request to use unlicensed persons at a kiosk.

After further discussion, the motion carried with Bohrer, Dover, Grady, Griess, and Poskochil voting aye, with Leisey not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Gale not participating or voting, being absent and excused.

Director Tyrrell indicated that new hearing procedures had been developed regarding pre-hearing conferences which would affect the information received by Commissioners as it related to disciplinary hearings. Since the new procedures would be used for the Hearing which would be conducted at the June Commission meeting it was determined some orientation would be appropriate. He explained that he therefore had asked Greg Barton, Special Assistant Attorney General and Counsel to the Commission to provide an orientation on the new procedures.

Counsel Barton indicated that he had drafted the changes to the procedures under the direction of Chairperson Gale. He felt that after the last hearing it became apparent that the procedures needed fine tuning. He felt that, with regard to that hearing, the time frames were compressed, the prehearing conferences were held late and there was a lack of timely cooperation by the Respondents= Counsels. Problem areas were generally discussed. He explained that he had worked with Director Tyrrell, Deputy Director Mayrose and Chairperson Gale in order to revise the procedures to work more effectively. Counsel Barton reviewed the revised procedures and documents.

Commissioner Grady asked how the new procedures would improve the process. Counsel Barton indicated that if the new procedures had been in effect for the last hearing, none of the confusion would have occurred.

In response to questions from Acting Chairperson Poskochil, Counsel Barton reviewed the procedures for initiating and conducting prehearing conferences.

Director Tyrrell indicated that by receiving both the Final Prehearing Order and any briefs filed, the Commissioners would have the issues to be decided at the Hearing clearly set forth. Counsel Barton added that the prehearing process normally narrows the issues in a case which would be beneficial to all.

No action was necessary.

At 1:04 p.m., a motion was made by Grady and seconded by Leisey to go into closed session for discussion of personnel matters. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

Acting Chairperson Poskochil again indicated, prior to the closed session beginning, that the reason for the closed session was to discuss personnel matters.

At 1:56 p.m., a motion was made by Grady and seconded by Leisey to reconvene in open session. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

After reconvening in open, public session, a motion was made by Grady and seconded by Leisey that the Director receive a 3.5% pay increase effective July 1, 2008. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

A motion was then made by Bohrer and seconded by Dover that the Deputy Director for Education and Licensing receive a 2% pay increase effective July 1, 2008. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil voting aye, with Gale not participating or voting, being absent and excused.

LB 104 - No new information presented.

LB 386 - No new information presented.

LB 622 - No new information presented.

LB 715 - No new information presented.

LB 785 - No new information presented.

LB 824 - No new information presented.

LB 960 - No new information presented.

LB 980 - No new information presented.

No action was necessary with regard to these matters.

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

Commission Grady thought that the meeting was very good, as well as the facility. He felt that the schedule was set up better for this meeting since he was able to get to every session he wanted to attend and there was not duplication during the sessions. He thought the course content was good. He felt that sometimes at the mid-year meetings there was a lack of direction.

Commissioner Griess indicated that she learned a lot of information about subjects that the Nebraska Real Estate Commission does not have jurisdiction over. She felt that the RESPA information was interesting. She thought the predatory lending session was good. The instructor was passionate about the topic and was trying to get someone to do something about it.

Acting Chairperson Poskochil felt that the meeting was good. He attended a lender fraud session. He felt that more issues may arise if banking and the FBI look in to lender problems. There were a lot of fraud issues and many who would be in financial trouble, if the speaker was correct. He also felt that the real estate internet and best practices session was interesting. He felt the meeting facility was nice and remarked that the meetings were on time.

Commissioner Dover explained that this was the first ARELLO meeting he had attended. He felt that the meeting was good and looked forward to attending the Commissioner College. Commissioner Griess indicated that it had only been offered one time, but felt the next course should be much better. Commissioner Dover indicated that there had been discussion about going into a closed session at a Commission Meeting and felt it was good to have open discussion but felt that people were not as open to discussion in public and may not be as candid as they would be in a closed session. Director Tyrrell indicated that the Commission always had the option to go into a closed session. Commissioner Leisey felt that people have a right to hear what the Commissioners were saying and liked open sessions. Director Tyrrell indicated that the only warning he would offer in choosing to go into closed session was that a decision not get A crystalized@ in closed session. Deputy Director Hoffman felt that ARELLO does not make it clear that regulations were different between jurisdictions. Some jurisdictions may make decisions, motions and vote in closed session. Director Tyrrell indicated that he had attended another Commission= s meeting and they had done just what Deputy Director Hoffman described. He indicated that if the Commission went into closed session and a decision was crystalized, that anyone involved was liable if they did not stop the unauthorized discussion or action.

Director Tyrrell reported that ARELLO had a new program on registering time-share projects electronically. He indicated that there would be no cost to the Commission to participate and that he would look into it. He explained that he was on a task force for license recognition which was updating the position statement and will be sending a survey to the jurisdictions. He indicated that there were concerns by commercial licensees regarding the movement of licensee= s between jurisdictions. He indicated that the ARELLO Tenants-In-Common Committee met with federal government officials, NAR and the SEC but there was nothing new to report with regard to a formal position.

Deputy Director Hoffman indicated that she was on a number of committees and one of the committees administers the ARELLO Distance Education Certification program. That committee had voted to require instructors of certified distance education courses to complete ARELLO= s distance education instructor course. Deputy Director Hoffman indicated that in the committee= s past research they had become aware that there was very little education available in the area of teaching methodology specifically for distance education formats and she thought this course was exceptionally well done. Three distance education providers at the ARELLO Committee meeting endorsed the requirement as adding quality to the education. In general, Deputy Director Hoffman agreed that it was a good meeting.

No action was necessary on this report.

Future Meeting Dates
June 26-27, 2008 - Settle Inn & Suites, Lincoln

August 28-29, 2008 - Staybridge Suites, Lincoln

September 26, 2008 - Staybridge Suites, Lincoln

At 9:25 a.m., Acting Chairperson Poskochil declared a brief recess, and reconvened the meeting at 9:33 a.m.

At 10:55 a.m., Acting Chairperson Poskochil declared a brief recess, and reconvened the meeting at 11:05 a.m.

At 12:45 p.m., Acting Chairperson Poskochil declared a brief recess, and reconvened the meeting at 1:04 p.m.

At 1:56 p.m., there being no further business to come before the Commission, a motion was made by Bohrer and seconded by Griess that the meeting adjourn. Motion carried with Bohrer, Dover, Grady, Griess, Leisey and Poskochil 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 May 5, 2008, meeting of the Nebraska Real Estate Commission were available for inspection on May 14, 2008, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,

Les Tyrrell
Director

Kristen Anderson, Nebraska REALTORS Association, Lincoln
Sharon Wulf, Woods Bros Realty, Lincoln
Dixie TenEyck, Re/Max Real Estate Group, Lincoln
Lindsey Krenk, Re/Max Real Estate Group, LaVista
Allen Grimes, Omaha
Ryan Jones, Omaha
Crystal Geneski, Ashland
Dave Geneski, Ashland