Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:05 a.m. on June 26, 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 Commissioners Bohrer, Grady and Leisey, who were absent and excused. Also present were Director Les Tyrrell, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Monica Rut. Chairperson Gale introduced Jennifer Jorgensen, an intern at the Secretary of State= s Office, to the Commissioners. Greg Barton, Special Assistant Attorney General and Counsel to the Commission, was present for the Monica Lakia Martin Show-Cause Hearing. Mr. Barton introduced Kelly Ekeler, a Senior Certified Law Student for Harding & Shultz, to the Commissioners, who would assist him with the Show-Cause Hearing.

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 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 by the entrance to 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 the time for the Show-Cause Hearing (Agenda item 11b) had changed from 2:30 p.m. to 9:30 a.m., since the tentative agenda had been mailed to the Commissioners.

The minutes of the Commission meeting held on May 5, 2008, were considered.

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

The cash fund balance as of April 30, 2008, was $637,301.78, which compared to a cash fund balance of $808,722.73 on April 30, 2007.

The cash fund balance as of May 31, 2008, was $576,008.60, which compared to a cash fund balance of $773,338.20 on May 31, 2007.

Chairperson Gale asked what the anticipated cash fund balance was for June 2008. Director Tyrrell indicated that the cash fund balance appeared sufficient this year, but after reviewing the 2008-2009 budget and in preparation for development of the biennium budget, it appeared that an increase of approximately ten to twenty dollars would be necessary for the 2009 renewal and license fees. Chairperson Gale asked if the cash fund balance was the lowest it had been in a long time. Director Tyrrell indicated that the cash fund balance was the lowest it had been in a number of years. Chairperson Gale asked if the budget committee would be meeting regarding the 2009 fee recommendations. Director Tyrrell indicated that the committee would meet soon after June 30. Chairperson Gale asked if the budget committee= s recommendations would be brought to the August Commission meeting. Director Tyrrell anticipated that the recommendations would be brought to the August Commission meeting.

Commissioner Poskochil asked about the increase in the amount of transfer fees collected year-to-date. Director Tyrrell reported that there had been large firm transfer which caused the increase in revenue. Commissioner Poskochil asked if there were any increases in the expenditures anticipated. Director Tyrrell indicated that health insurance would increase approximately ten percent on January 1, 2009 and the salary settlement would increase the salaries. He explained that in the next three to five years, a recommendation had been made to the Commission to change the current database to a web-based system, which would be necessary in order to receive support in the future.

Commissioner Poskochil also noted that the legal services expenditure was approximately twenty-five thousand dollars under budget. Director Tyrrell indicated that the budgeted amount would remain unchanged for fiscal year 2008-2009 since the expenditure depended on the number of hearings. He also noted that educational services expenditure was under budget and correspondingly examination fee revenues had decreased. Commissioner Poskochil felt the Commission had been fortunate with the lack of expenditures but felt that it may be necessary to increase the 2009 fees by twenty dollars.

Commissioner Griess asked if the percentage of licensees renewing had decreased. Director Tyrrell indicated that the number of licensees had remained close to last fiscal year based on the receipts, but typically there were approximately eight percent each year who did not renew. Commissioner Griess indicated that typically the new licensees replaced those who did not renew. However, that might not be true this year. Chairperson Gale indicated that the fees could be better discussed after the review had been completed by the subcommittee.

Director Tyrrell presented a specialized registrations report which included the time-share registration for Liki Tiki Village II and the subdivided land registration for Midtown Crossing Condominiums. A copy of said report is attached to and made a part of these minutes.

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

Director Tyrrell 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.

Director Tyrrell presented an update on the renegotiation of the license recognition agreements with other jurisdictions because of the pre-license three-hour class required of nonresidents. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell reported that the renegotiation of the license recognition agreements had been moving along fairly well. He anticipated that of the eight jurisdictions which were still reviewing options, one of the jurisdictions may rescind its agreement, but that the remainder would likely enter into agreements. He explained that the new jurisdiction requirements ranged from requiring an equivalent course, two to six hours in length, to requiring the state portion of the examination. He noted that the other jurisdictions did not change the Agreement either because its law would not allow for additional requirements or the jurisdiction did not want to administer such change.

Commissioner Poskochil asked if Director Tyrrell had spoken with the jurisdictions which had rescinded their Agreements and if any reason was given. Director Tyrrell indicated that one of the jurisdictions would be rescinding many, if not all, of its Agreements. The other jurisdiction had very few agreements and believed it did not want to administer the enforcement of an equivalent course.

No action was necessary on this report.

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

Chairperson Gale asked what the pass and fail percentages were. Director Tyrrell indicated that the passing rates were lower than eleven months ago. Chairperson Gale asked if this was the effect of adding additional questions to the examinations and the new simulation examination. Director Tyrrell indicated that the Commission had set a higher bar in order to pass the examination. Commissioner Griess indicated that the number of applicants had also decreased. Director Tyrrell explained that the number of examinations taken were lower for both salespersons and brokers, which could skew the percentages. Commissioner Griess indicated that she had been told that a person taking the examination could not go back and change an answer on the examination. Director Tyrrell indicated that on the simulation portion of the examination, the applicant could not go back because the test was based on their decisions. However, the multiple choice portion of the examination could be changed prior to ending the examination session.

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

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

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

Chairperson Gale indicated that there had been many continuing education instructor approvals in the subject of commercial leases. Director Tyrrell noted that those instructors were approved to teach for Sterling Education Services.

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

Director Tyrrell presented a Continuing Education Activity Rejection Report, a copy of which is attached to and made a part of these minutes.

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.

Director Tyrrell reported that the Clark appeal had been finalized. The Commission= s decision had been affirmed and Mr. Clark would start his penalty within the next thirty days. Chairperson Gale requested that the Commissioners and he receive the written opinion regarding this case.

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 2007-061, Christin Pruess and R.E.L.M. Investors, LLC vs. Kenneth Alan Muckey. A copy of said Order is attached to and made a part of these minutes.

The Commission discussed the penalty set forth in the Stipulation and Consent Order which had been offered by the Commission after discussion at the May meeting.

Motion failed with Griess, Poskochil and Gale voting aye, with Dover voting nay.

After considerable discussion it was determined that the Stipulation and Consent Order should be reviewed by the full Commission. It was a consensus of the Commission to have this matter brought back to the August meeting.

A Hearing was held on June 26 at 9:40 a.m., in the matter of SC2008-001. Greg Barton, Special Assistant Attorney General and Counsel to the Commission, appeared for the Complainant. He was assisted by Kelly Ekeler. Respondent Monica Lakia Martin was not present and was not represented by Counsel.

After Opening Statements, Counsel Barton offered twenty-two Exhibits, one which was Ms. Martin= s written testimony. All were received by Chairperson Gale. Counsel Barton called Marilyn Masters and Terry Mayrose as witnesses.

After closing arguments had been presented, Chairperson Gale declared the hearing concluded and gathered the original exhibits.

Prior to any motion the following occurred:

Commissioner Dover felt that Ms. Martin did not fulfill her license obligations and did not feel she should be licensed in Nebraska. Commissioner Griess expressed mixed feelings since the statute had been poorly written, and had since been remedied. She also indicated that it was common for licensees to be licensed in several states and felt Ms. Martin viewed getting a Nebraska license was more paperwork and hassle. She indicated that even though Ms. Martin swore that she understood Nebraska law, some people do not understand what they are signing and that was why she had been in favor of requiring the three-hour class prior to receiving a license. She also felt Ms. Martin did not understand the importance of completing the class requirement obligation until Ms. Masters explained the negative impact of a revocation and the effect it could have on a licensee. She noted that Ms. Martin made an effort to complete the education requirement but was too late.

Commissioner Poskochil indicated that according to how the statute reads, the Commission should revoke her license if cause was not shown not to revoke her license. He thought that Ms. Martin= s testimony indicated that she had received a A convenience@ license which was a requirement of her employer and then thought that the license could expire and perhaps did not realize it would be revoked. He felt that the staff at the Commission did an excellent job of notifying Ms. Martin of her obligations and felt that according to the statute the Commission needed to revoke Ms. Martin= s license.

Chairperson Gale felt there had been confusion regarding Ms. Martin= s address, but did not feel it was the fault of the Commission staff. He wanted to verify that Ms. Martin did not A fall through the cracks@ and had received all of the documentation she should have. He felt Ms. Martin understood that she needed to complete the three-hour class.

A motion was made by Poskochil and seconded by Dover to revoke the license of Ms. Martin.

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

Chairperson Gale directed Counsel Barton to prepare the order.

Chairperson Gale announced that all exhibits related to this hearing would be retained in the Commission office.

The Hearing was adjourned at 11:05 a.m.

There were no informal special appearances scheduled to be held at the meeting.

Director Tyrrell presented information regarding the estimated costs of Deputy Director for Enforcement Mayrose attending the ARELLO Investigator Workshop in Baltimore, Maryland, on September 3-5, 2008. A copy of said exhibit is attached to and made a part of these minutes.

Director Tyrrell presented the Trust Account Examination Evaluation Report - First Quarter 2008. A copy of said report is attached to and made a part of these minutes.

Some of the comments received were reviewed.

No action was necessary on this report.

Director Tyrrell reminded the Commissioners that the ARELLO meeting would be held July 19-21. He noted that three of the Commissioners had registered for the meeting as well as himself and Deputy Director Hoffman.

No action was necessary on this report.

August 28-29, 2008 - Staybridge Suites, Lincoln
September 26, 2008 - Staybridge Suites, Lincoln

This being Commissioner Poskochil= s last meeting before his term expired, Chairperson Gale noted that Commissioner Poskochil had done a great job while on the Commission and expressed his appreciation of Commissioner Poskochil= s hard work and dedication to his duties.

At 9:31 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 9:39 a.m.

At 11:00 a.m., Chairperson Gale declared a brief recess, and reconvened the meeting at 11:25 a.m.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing minutes of the June 26, 2008, meeting of the Nebraska Real Estate Commission were available for inspection on June 30, 2008, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Kristen Anderson, Nebraska REALTORS7 Association, Lincoln
Judy Burford, CBSHOME Real Estate, Omaha
Kelly Ekeler, Lincoln
Janis Fuller, Lincoln
Bob Summers, Lincoln
Jennifer Jorgensen, Secretary of State= s Office, Lincoln