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NEBRASKA REAL ESTATE COMMISSION July 25, 2000 Ramada Inn Airport Lindbergh/Kitty Hawk Room Lincoln, NE Opening Chairperson Moore convened a Meeting of the Nebraska Real Estate Commission at 9:05 a.m. on July 25, 2000, in the Lindbergh/Kitty Hawk Room of the Ramada Inn (Airport), located at 1101 West Bond Street in Lincoln, Nebraska. All of the members of the Real Estate Commission were present except for Commissioner John Hansen, who was temporarily absent and excused. Also present were Director Les Tyrrell, Deputy Director Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Finance Officer/Webmaster Monica Wade. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, was present for the discussion on the proposed changes to the License Act and the proposed policy on attorney exemption to the License Act. 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. Chairperson Moore reported that all Commissioners had been notified of the Meeting simultaneously, in writing, and that a proposed Tentative Agenda accompanied the notification. Chairperson Moore pointed out to those in attendance that a APublic Copy@ of the materials being used during the Meeting was available to the public on the Counsel table in the Meeting Room, and that the procedures followed were in accordance with the Open Meetings Law. Chairperson Moore asked that guests sign the guest list.Director Tyrrell noted that Agenda Item 8c had been added to the Final Agenda. After review of the Final Agenda, a motion was made by Fletcher and seconded by Nigro to adopt the Final Agenda as presented. Motion carried with Fletcher, Landow, Moline, Nigro, Wiebusch, and Moore voting aye, with Hansen not voting, being temporarily absent and excused. Minutes of May 31, 2000 The Minutes of the Commission Meeting held on May 31, 2000, were considered. After review, a motion was made by Moline and seconded by Wiebusch to approve the Minutes as presented. Motion carried with Fletcher, Hansen, Moline, Nigro, and Wiebusch voting aye, with Landow and Moore not voting, not having been present for the Meeting. Receipts and Expenditures Reports for May and June Director Tyrrell presented the Receipts and Expenditures Reports for May and June 2000. Copies of said Reports are attached to and made a part of these Minutes. With regard to the May Report, Director Tyrrell noted the following: Expenditures Categories 4414, Education Services, and Category 4731, State-Owned Transportation, reflected payments for both March and April. The Cash Fund Balance as of May 31, 2000, was $490,019.72, which compared to a Cash Fund Balance of $400,896.50 on May 31, 1999. Following discussion, a motion was made by Fletcher and seconded by Nigro to file the May Receipts and Expenditures Report for audit. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. With regard to the June Report, Director Tyrrell noted the following: Receipts Category 7522, Promotional Land Registration, showed unusually high income compared to past years, which is not expected to continue. Expenditures Categories 4211, Postage, and 4215, Publication and Printing, reflected printing and mailing costs for the License Manual; and Category 4221, Dues and Subscriptions, should have shown a $900.00 ARELLO dues payment, which was miscoded to Category 4253, Data Processing Software License. The Cash Fund Balance as of June 30, 2000, was $433,274.51, which compared to a Cash Fund Balance of $346,940.96 on June 30, 1999. Following discussion, a motion was made by Fletcher and seconded by Wiebusch to file the June Receipts and Expenditures Report for audit. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. Final Renewal Report for 2000 Director Tyrrell presented the Final Renewal Report for 2000. A copy of said Report is attached to and made a part of these Minutes. No action was necessary on this Report. Proposed 2000-2001 Monthly Budget Director Tyrrell presented the proposed 2000-2001 Monthly Budget. A copy of said Budget is attached to and made a part of these Minutes. Director Tyrrell noted that the proposed 2000-2001 Monthly Budget was the new one mailed separately to the Commissioners after the regular mailing, with corrected Cash Fund Balances. No action was necessary on this Report. Specialized Registrations There were no Specialized Registrations to report. Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other States This Report, a copy of which is attached to and made a part of these Minutes, was presented by Deputy Director Hoffman and reported to be in order. After review, a motion was made by Hansen and seconded by Nigro to ratify issuance of the licenses as set forth in the Report. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. Examination Report - May and June Deputy Director Hoffman presented Reports relating to the Real Estate Examinations administered during May and June 2000. Copies of said Reports are attached to and made a part of these Minutes. After review, a motion was made by Fletcher and seconded by Moline to ratify the May Report for the purpose of issuing licenses. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. After review, a motion was made by Moline and seconded by Wiebusch to ratify the June Report for the purpose of issuing licenses. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. Real Estate Education Matters Continuing Education Activity Approval Deputy Director Hoffman presented for ratification the Continuing Education Activity Approval Report, which listed approvals for seven continuing education activities. A copy of said Report is attached to and made a part of these Minutes. Deputy Director Hoffman noted that one of the approved activities was a program on fair housing delivered via the Internet. After discussion, a motion was made by Moline and seconded by Nigro to ratify the Report. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. Continuing Education Instructor Approval Deputy Director Hoffman presented for ratification the Continuing Education Instructor Approval Report, which listed approvals for four continuing education instructors. A copy of said Report is attached to and made a part of these Minutes. After discussion, a motion was made by Moline and seconded by Wiebusch to ratify the Report. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. Pre-License Instructor Approval Deputy Director Hoffman presented for ratification the Pre-License Instructor Approval Report, which listed two course approvals for one pre-license instructor. A copy of said Report is attached to and made a part of these Minutes. After discussion, a motion was made by Fletcher and seconded by Hansen to ratify the Report. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. 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. A new cover page, with updated information, was substituted for the one mailed to the Commissioners. No action was necessary on this Report. The following Sworn Complaints and Investigative Matters were presented to the Commission:
Hearings No Hearings were scheduled for this Meeting. Informal Special Appearances July 25, 9:30 a.m. - Pamela S. Gaston, Potential Salesperson Applicant Director Tyrrell presented an Exhibit which included letters regarding Ms. Gaston =s Special Appearance, letters and documentation regarding Ms. Gaston=s criminal history, and a letter of recommendation. A copy of said Exhibit is attached to and made a part of these Minutes.The Commissioners questioned Ms. Gaston regarding her conviction, and her behavior since the conviction. After discussion, a motion was made by Landow and seconded by Hansen to allow Ms. Gaston to apply to sit for the examination, and upon successful completion of the examination, to be issued the applicable license. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. Preliminary Discussion - Amendments to License Act Director Tyrrell presented an Exhibit which included proposed changes to the License Act. A copy of said Exhibit is attached to and made a part of these Minutes. Counsel Widger reviewed the proposed changes. Director Tyrrell suggested a change to the language in the proposed amendment to 81-885.17(5), to make the wording less cumbersome and to more succinctly represent the intent of the amendment. Discussion was held on the proposed new language dealing with discrimination. Director Tyrrell reported that the proposed language had been reviewed and approved by the Director of the Nebraska Equal Opportunity Commission. Director Tyrrell also proposed reinstating the proposed deletion of Arebate or direct profit@ in 81-885.24(6), and the inclusion in the sixth line of Awho is@ after the Aor@ in the proposed new language in 81-885.24(18).The proposed new subsection 33 on page LA-28 was discussed, regarding whether the language was too broad, and if it should be deleted. After review, representatives of the Nebraska Realtors Association reviewed their time frame for forwarding their comments to the Commission. The Commissioners requested that any comments or suggestions on any of the statutes under review be submitted in writing to the Commission Office, for distribution to the Commissioners prior to being scheduled on an upcoming Meeting Agenda. The representatives of the Nebraska Realtors Association agreed. No action was taken. Proposed Policy on Attorney Exemption to the Nebraska Real Estate License Act and its Effect on the Agency Relationships Statute Director Tyrrell presented an Exhibit entitled AProposed Policy on Attorney Exemption to the Nebraska Real Estate License Act and Its Effect on the Agency Relationships Statutes.@ A copy of said Exhibit is attached to and made a part of these Minutes.During discussion, it was suggested that wording be added to the proposed language for clarification purposes. The language agreed upon was to be added at the end of the proposed language as follows: Aand, therefore, disclosure must be made to the clients of an attorney, unless said attorney is acting as a designated broker.@After discussion, a motion was made by Moline and seconded by Fletcher to adopt the proposed Policy with the additional language as discussed. Motion carried with Fletcher, Hansen, Landow, Moline, Nigro, Wiebusch, and Moore voting aye. Commissioner Wiebusch requested that Counsel Widger contact the appropriate party at the Bar Association regarding the delineation of duties which would or would not require an attorney to have a real estate license. Presentation of Stipulation and Consent Order Complaint # 2000-022, Commission vs. William Joseph Clark Deputy Director Mayrose presented a Stipulation and Consent Order in the matter of Complaint #2000-002, Commission vs. William Joseph Clark. A copy of said Order is attached to and made a part of these Minutes. Deputy Director Mayrose reported that this matter was originally brought to the Commission by Deputy Director Hoffman at the May Meeting. Mr. Clark, the designated broker for Property Management Inc., failed to provide proof of errors and omissions insurance coverage for 2000. Mr. Clark was notified by certified mail of his omission; informed that his license was placed on inactive status effective January 1, 2000; and instructed to return his wall license. Mr. Clark did not return his wall license, and continued to act as an active real estate broker through May 9, 2000, without errors and omissions insurance and while his license was on inactive status. At the May Meeting, the Commission decided to file a Complaint against Mr. Clark. The Complaint was filed and sent to Mr. Clark for answer. In lieu of answering the Complaint, Mr. Clark was offered and had signed the Stipulation and Consent Order, which specified a censure. After discussion, a motion was made by Moline and seconded by Hansen to enter into the Stipulation and Consent Order as presented. Motion carried with Fletcher, Hansen, Moline, Nigro, Wiebusch, and Moore voting aye, with Landow not participating or voting, being absent and excused. Approval of On-Line Transactions Director Tyrrell presented an Exhibit regarding on-line transactions, which included per-transaction fees, an addendum to the Interagency Agreement Between the Commission and the Nebraska State Records Board, the Interagency Agreement Between the Commission and the Nebraska State Records Board, and information on other Nebraska On-Line projects. A copy of said Exhibit is attached to and made a part of these Minutes. Discussion centered on the costs for use of a credit card, and how much Nebraska On-Line charges for their services. There was also discussion regarding the need to amend the Interagency Agreement, Section 6, to accurately reflect how and when payment is made to Nebraska On-Line. Director Tyrrell indicated he would negotiate said amendment for Commission approval as soon as the State Records Board and the Department of Administrative Services have finalized procedures. After discussion, it was the consensus of the Commission to wait until the August Meeting to take action on this item. Approval of Providing Licensee Information via Web Site Director Tyrrell presented an Exhibit regarding licensee information to be provided on the website, which included a list of specific items to be made available to the public, a list of items to be provided only to the applicable licensee, and a memorandum authorizing IFMC to develop those capabilities. A copy of said Exhibit is attached to and made a part of these Minutes. After discussion, a motion was made by Fletcher and seconded by Wiebusch to approve providing licensee information via the web site, as presented, and to affirm the $2000.00 payment to IFMC for development of said capability. Motion carried with Fletcher, Hansen, Moline, Nigro, Wiebusch, and Moore voting aye, with Landow not participating or voting, being absent and excused. Information Matters Service Satisfaction Survey - June Mailing Results Director Tyrrell presented the Service Satisfaction Survey Report from the forms sent randomly with June outgoing mail. A copy of said Report is attached to and made a part of these Minutes. Director Tyrrell noted that the responses were again very positive. No action was necessary on this Report. Trust Account Examinations Quarterly Progress Report - 2nd Quarter 2000 Deputy Director for Enforcement Mayrose presented the Trust Account Examinations Quarterly Progress Report. A copy of said Report is attached to and made a part of these Minutes. No action was necessary on this Report. Website Statistics for May and June Director Tyrrell presented Reports on the website usage during May and June. A copy of said Reports are attached to and made a part of these Minutes. Director Tyrrell noted that the statistics for the pre-license education portion of the website are now being reported. No action was necessary on these Reports. ARELLO Central District Meeting - July 9-11, 2000 - Report of Attendees The annual ARELLO Central District Meeting was held July 9-11, 2000, in Lansing, Michigan. Director Tyrrell reported on the nominations from the District for Directors. He reported that, in addition to the other nominations, Commissioner Nigro had been nominated as the Alternate Director for the upcoming year. Director Tyrrell also reported that the Central District had voted to support Janet Carder of Missouri for Treasurer and Richard Strader of West Virginia for President-Elect in 2000. The District also endorsed Deputy Director Hoffman for President-Elect in 2001. Director Tyrrell indicated that the Central District Meeting would be held in Denver in July 2001, and that the Western District had requested that it be a joint District Meeting. Director Tyrrell also shared reports on possible legislation in other jurisdictions. Commissioner Nigro reported on the Fair Housing session that she and LaChun Ellison from Colorado had coordinated and presented, and the positiveness with which it was received. Deputy Director Hoffman thanked Commissioner Nigro for her nomination speech, and thanked the Commission for its support. She also reviewed the Ethics sessions held, and their relevance to Nebraska. ARELLO Investigator Seminar - Report of Attendee The annual ARELLO Advanced Investigator Training Workshop was held July 19-21, 2000, in Raleigh, North Carolina. Deputy Director Mayrose reported that the workshop was attended by 35 investigators from various jurisdictions, including Canada and Hong Kong. Speakers presented useful information, and the round table discussions allowed investigators to hear what types of illegal activities are occurring in other jurisdictions, and how they are being addressed. REEA Meeting - Report of Attendee The annual Real Estate Educators Association (REEA) Conference was held June 14-17, 2000, in Las Vegas, Nevada. Deputy Director Hoffman reported that her attendance at the Conference began by attending a pre-conference session coordinated by ARELLO regarding the application process for ARELLO Distance Education Certification. She expressed surprise that approximately one-third of the attendees in that session were under the impression that distance education programs were an inexpensive revenue source that required little ongoing support. These people expressed surprise and resentment at the extent of the ARELLO Standards for Distance Education. Deputy Director Hoffman also reported that several providers who had undergone the certification process were in attendance, and had verified that the process was sound, constructive, and supportive. Deputy Director Hoffman felt this interaction supported the Commission =s decision to require ARELLO Certification of programs delivered in a distance education format in order to distinguish programs of integrity.Deputy Director Hoffman also reported that the Conference was typical of REEA, with updates and an opportunity to preview various educators. She noted that this year marked ARELLO =s first presence as an exhibitor, and that she had been asked to serve at the booth to disseminate information. Deputy Director Hoffman felt that this had provided many productive exchanges, and indicated that future ARELLO exhibits should be supported.Future Meeting Dates The following dates are scheduled: August 23-24, 2000 - Lincoln At 9:07 a.m., Commissioner Hansen arrived at the Meeting. At 10:15 a.m. on July 25, Chairperson Moore declared a brief recess, and reconvened the Meeting at 10:28 a.m. At 12:07 p.m. on July 25, Chairperson Moore declared a recess for lunch, and excused Commissioner Landow from the remainder of the Meeting. At 1:33 p.m. on July 25, Chairperson Moore reconvened the Meeting. At 2:50 p.m. on July 25, Chairperson Moore declared a brief recess, and reconvened the Meeting at 3:00 p.m. At 3:40 p.m. on July 25, there being no further business to come before the Commission, a motion was made by Moline and seconded by Fletcher that the Meeting adjourn. Motion carried with Fletcher, Hansen, Moline, Nigro, Wiebusch, and Moore voting aye, with Landow 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 July 25, 2000, Meeting of the Nebraska Real Estate Commission were available for inspection on August 2, 2000, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska. Respectfully submitted, Les Tyrrell
Guests Signing the Guest List Paul Quinlan, Director Emeritus, Lincoln |