NEBRASKA REAL ESTATE COMMISSION

June 12, 2002

Staybridge Suites                         Staybridge Room                         Lincoln, NE


Opening

Chairperson Gale convened a Meeting of the Nebraska Real Estate Commission at 9:06 a.m. on June 12, 2002, 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. Also present were Director Les Tyrrell, Deputy Director for Education Teresa Hoffman, Deputy Director for Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund. Abbie Widger, Special Assistant Attorney General and Counsel to the Commission, was present for the Rule Hearing.

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 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 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 Gale asked that guests sign the guest list.

Director Tyrrell noted that Agenda Items 5a and 15c had been added since the Tentative Agenda was mailed to the Commissioners, and information was updated on Item 12b.

After review of the Final Agenda, a motion was made by Strand and seconded by Nigro to adopt the Final Agenda as presented. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Minutes of May 21, 2002

The Minutes of the Commission Meeting held on May 21, 2002, were considered.

After review, a motion was made by Wiebusch and seconded by Nigro to approve the Minutes as presented. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Receipts and Expenditures Report for May

Director Tyrrell presented the Receipts and Expenditures Report for May. A copy of said Report is attached to and made a part of these Minutes.

Director Tyrrell noted the following: there was nothing unusual to report in Receipts. In Expenditures Category 4271, Repair and Maintenance of Office Equipment, a fax machine repair put the amount over the year-to-date budgeted amount, but should not cause any problems; in Category 4491, Other Operating Expenses, the expenditure was for microfilming the Minutes; Category 4721, Commercial Transportation, included expenditures for the Texas ARELLO Meeting; and Category 4856, Hardware-Data Processing, was an expenditure for scheduled replacement of computers.

The Cash Fund Balance as of May 31, 2002, was $611,337.70, which compared to a Cash Fund Balance of $516,715.96 on May 31, 2001.

Chairperson Gale asked if the Commission=s cash fund was in any danger during the Special Legislative Session. Director Tyrrell said he had no indication of any problems, because there were not excessive funds in the cash fund balance. There was just enough to fund the Commission until renewals started coming in, with a 4-5 month reserve. During budget-cutting sessions, the cash fund agencies had been left alone, unless there was an excessive amount in their cash fund balance. Chairperson Gale asked if it took a vote of the Commission to allow the Legislature to take the funds. Director Tyrrell said that if the Legislature passed a law to take the funds, he did not think the Commission would have any input at the time of the taking.

After discussion, a motion was made by Moline and seconded by Nigro to file the May Receipts and Expenditures Report for audit. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Specialized Registrations

Grand Lodge at the Preserve

Director Tyrrell presented a Retirement Community Registration for the Grand Lodge at the Preserve. A copy of said Report is attached to and made a part of these Minutes.

Following discussion, a motion was made by Wiebusch and seconded by Johnson to approve the Grand Lodge at the Preserve registration as presented. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses in Other States Report

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

After review, a motion was made by Moline and seconded by Strand to ratify issuance of the licenses as set forth in the Report. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Reciprocal Memorandum of Understanding with Indiana

Deputy Director Hoffman presented a copy of the proposed Reciprocal Memorandum of Understanding with Indiana. A copy of said Memorandum is attached to and made a part of these Minutes.

Deputy Director Hoffman noted that it was a fairly typical agreement, which will allow Nebraska licensees to obtain reciprocal Indiana licenses after passing the Indiana portion of the examination, and allow dual license holders to meet continuing education requirements in their resident jurisdiction only.

Commissioner Nigro asked how many states had reciprocal agreements with Nebraska. Director Tyrrell said there were 29, and noted that this was a modification of an existing agreement. Commissioner Nigro asked if most of them required Nebraska licensees to take their state-specific examination. Deputy Director Hoffman said no, and that was the modification. Deputy Director Hoffman felt that may be a trend in reciprocal agreements. Director Tyrrell disagreed. In his opinion, in the vast majority of agreements, issuance was based on reciprocal licenses only. He thought all agreements would ultimately be license-to-license, to avoid federal licensing.

After discussion, a motion was made by Moline and seconded by Wiebusch to authorize the Director to enter into the Reciprocal Memorandum of Understanding with Indiana. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Examination Report for May

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

After review, a motion was made by Moline and seconded by Johnson to ratify the May Report for the purpose of issuing licenses. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Real Estate Education Matters

Pre-License Education Course Approval

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

After discussion, a motion was made by Moline and seconded by Nigro to ratify the Report. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Pre-License Education Instructor Approval

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

After discussion, a motion was made by Wiebusch and seconded by Nigro to ratify the Report. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

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.

After discussion, a motion was made by Moline and seconded by Nigro to ratify the Report. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

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 discussion, a motion was made by Wiebusch and seconded by Moline to ratify the Report. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Continuing Education Activity Significant Change

Deputy Director Hoffman presented for ratification the Continuing Education Activity Significant Change Report, a copy of which is attached to and made a part of these Minutes.

After discussion, a motion was made by Johnson and seconded by Wiebusch to ratify the Report. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Continuing Education Activity Rejection

Deputy Director Hoffman presented the Continuing Education Activity Rejection Report, a copy of which is attached to and made a part of these Minutes.

Commissioner Johnson noted that the provider usually had pretty good courses, and asked if these courses were approved anywhere else. Deputy Director Hoffman said that some jurisdictions gave blanket approvals, so she was sure it was approved somewhere. These courses are looked at individually in Nebraska, and some content is outside the approvable subject matter guidelines. Chairperson Gale asked if the provider would want to change the course to receive approval. Deputy Director Hoffman said this provider=s courses are part of a designation curriculum, and the provider does not have flexibility in their program to change the courses. Deputy Director Hoffman noted that the provider had been notified and had not appealed the rejection.

No action was necessary on this Report.

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.

No action was necessary on this Report.

The following Sworn Complaints and Investigative Matters were presented to the Commission:

Item A Complaint #2002-006 - Marjorie McIntire vs. Alexander Lee White-Hamilton & Cleo Anne Jackson

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 Moline and seconded by Nigro that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item B Complaint #2002-011 - Amy Feidler vs. John Robert Greguska

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 Moline and seconded by Wiebusch that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item C Complaint #2002-013 - Donald R. & Valerie A. Keeton vs. Michael D. Hanson & Mark F. Abboud

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 Wiebusch and seconded by Nigro that the Complaint be dismissed without prejudice. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item D Complaint #2001-043

Deputy Director Mayrose presented information regarding the pending civil action 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 Wiebusch and seconded by Strand that the Complaint be held in abeyance until Counsel Widger and the Complainant=s counsel determine that Commission action would not impede the progress in the civil action. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Item E Complaint #2002-007 - Commission vs. John Steven Headlee
Complaint #2002-008 - Commission vs. Elizabeth T. Lube

These Complaints were about the same situation, so the Commission considered them together. Deputy Director Mayrose presented the information obtained from the Respondents= answers 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 Moline and seconded by Strand that both Complaints be dismissed without prejudice, and a letter of admonishment be sent to the broker to clarify the forms in question. Motion carried with Moline, Nigro, Shepard, Strand, and Wiebusch voting aye, and with Johnson and Gale voting nay.

Item F Non-resident broker applicant

Counsel Widger presented the information obtained regarding the non-resident broker applicant to the Commission and, when necessary, answered questions on this matter.

The witnesses Counsel Widger spoke with had no documentation of their problems with the applicant. Neither witness felt they could say that the applicant did not deserve a Nebraska license, but each knew of separate situations where the applicant had borrowed money and had not repaid it. Director Tyrrell noted the lack of documentation, and asked for the Commission=s guidance. There was no disciplinary action against the applicant in his resident jurisdiction. Director Tyrrell reviewed the procedural options open to the Commission.

It was the consensus of the Commission to proceed with the decision made at the previous meeting, which was to offer the applicant a Special Appearance to explain the situation, and if the applicant chose not to appear, the license would be denied.

Presentation of Stipulation and Consent Orders

There were no Stipulation and Consent Orders to be presented at the Meeting.

Hearings

June 12, 9:30 a.m. - Rule Hearing on Title 302, Chapter 1

At 9:38 a.m. on June 12, Chairperson Gale called to order the Public Hearing on the Proposed Amendments to Title 302, Chapter 1, of the Commission=s Rules and Regulations. Chairperson Gale explained that the Hearing would be conducted in accordance with the Administrative Procedure Act, and explained how testimony would be given.

Director Tyrrell presented four Exhibits, which included: 1) a copy of the Notice of Meeting, which was published in two newspapers and filed with the Secretary of State, the Executive Board of the Legislative Council, and the Governor=s Policy Research Office; 2) a copy of the Lincoln Journal-Star proof of publication of the Meeting Notice; 3) a copy of the Omaha Daily Record proof of publication of the Meeting Notice; and 4) a copy of the proposed amendments to Title 302, Chapter 1, in legislative style. Exhibit 4 (marked as Item 11a in the Commissioner packets) is attached to and made a part of these Minutes.

Director Tyrrell noted that no comments had been received verbally or in writing regarding the rule changes.

Director Tyrrell reviewed the amendments set out in Title 302, Chapter 1.

Following discussion and review, it was moved by Moline and seconded by Wiebusch that the Commission adopt Title 302, Chapter 1, as amended, and to direct staff complete the filing process for the proposed rule changes.

Commissioner Strand asked if the warning at the end was in bold print. Director Tyrrell said no. Commissioner Strand said that, as a consumer, it would be a real easy mistake to make. If there was misrepresentation, the seller could just say the buyer should have gotten an inspection. Director Tyrrell noted that it was the same language that was on the first page, which was in all capital letters, so it was in the document twice. Commissioner Strand said that was sufficient.

Commissioner Nigro asked if Part II, Section A was where a seller would answer regarding hail damage for the roof or siding. Director Tyrrell said yes, that would be where they would indicate if an insurance claim had been filed. There was another place the seller could also indicate damage, but Section A would be the place to hang your hat if there was misrepresentation.

Chairperson Gale asked if there were any questions which pertained to situations where handymen had built sheds or enclosed porches without the proper permits or zoning. Commissioner Moline noted that Part II, Section C, #4 addressed those concerns. Chairperson Gale said the problem was that the seller might not necessarily know. Commissioner Moline said the subcommittee discussed the issue, and thought they might be opening Pandora=s box. Chairperson Gale said that inspections may be done to find out about setbacks and similar problems. Director Tyrrell noted he could not find anything in the rule which referenced permits.

Chairperson Gale asked about disclosing electrical problems. Counsel Widger noted that Section B, #12 addressed all other electrical problems. The subcommittee discussed the question, and decided it was broad enough that an honest seller would note any problems or rewiring. The subcommittee thought it was as close as they could get to broad enough to cover all contingencies. Chairperson Gale said the concern was brought to mind by today=s paper, where a fire was started by an extension cord attached to an air conditioner. Chairperson Gale said that home remedies could be dangerous, but he thought that section addressed them.

Commissioner Shepard referenced Part II, Section D, regarding Athe dwelling and the improvements@ language. If a home had a detached double car garage, the questions would include the garage, and water connections would not normally be in a garage.

Commissioner Shepard also questioned the reference to whether the property was in a flood plain. In his area, it was common practice that the question would only be answered Ayes@ if the property was in a 100-year flood plain, because homeowners only needed insurance for 100-year flood plains. If the property was in a 200-year flood plain, it was marked no. In Fremont, the concern was whether the homeowner needed flood insurance. Commissioner Shepard asked if the Commission needed to take the next step and ask if flood insurance was required, or whether the property had a flood-proof basement. Director Tyrrell asked for clarification that the question was commonly answered no if the property was in a 200-year flood plain. Commissioner Shepard said they would say no every time, because you do not need flood insurance. That had been the general consensus that was how it was answered. Commissioner

Moline asked if all the practitioners on the Commission agreed that the industry worked with a 100-year flood plain. The consensus of the Commission was yes. Commissioner Moline asked if the Commission should refer to a 100-year flood plain. Director Tyrrell said that was his initial thought, but that the correct way would be to answer yes whether it was 100 or 200, then note in the comments section that it was in a 200-year flood plain, and no insurance was needed. Commissioner Shepard noted that there were actually several different levels of flood ratings, and that the Commission needed to school people on proper completion of the form. Counsel Widger said she did not know there was a difference, and it was not brought up in the subcommittee. Chairperson Gale agreed that in North Platte, if a homeowner was required to have flood insurance, it would be checked yes, but if not, it would be checked no. Chairperson Gale thought that all of North Platte was probably in a flood plain. The question was intended to put up a red flag, and get the buyer to ask questions.

In reference to Commissioner Shepard=s first point, Director Tyrrell agreed that the lead-in language regarding Athe dwelling and the improvements@ would technically include the garage.

Extensive discussion ensued on alternative wording. Commissioner Moline made a motion to change it to read Adwelling improvements,@ but withdrew his motion after further discussion. Commissioner Strand eventually called the question on the original motion to approve the amendments as presented, but withdrew his call of the question when Chairperson Gale pointed out it would limit public comment. It was the consensus of the Commission to leave the wording as originally proposed.

Chairperson Gale asked if there were any comments from the public.

Jerry Ahlvers, representing the Nebraska Realtors7 Association, recommended adding Aif known@ after the question regarding capacity and amps in Part I, Section B. Mr. Ahlvers said the Association originally tried to get that part deleted, because homeowners usually do not know how many amps. Mr. Ahlvers also noted that the Association wanted to make Part II, Section D refer only to the dwelling, but were told the language had to include improvements. Mr. Ahlvers noted that the primary issue to the public was whether the house was connected to public water, private water, a septic tank, etc., not whether there was running water in the barn. Mr. Ahlvers also said it did not come up very often.

A motion was made by Moline and seconded by Nigro to amend the pending motion, to add A, if known@ after amp in Part I, #1, in the second line, so that it read A(Capacity ____ amp, if known).@ Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

A motion was made by Moline and seconded by Wiebusch to further amend the pending motion, to allow staff to make non-substantive changes such as punctuation and grammatical changes without changing the meaning. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Commissioner Wiebusch asked for clarification from Mr. Ahlvers regarding the dwelling and improvements language. Mr. Ahlvers said the Association originally wanted it to just say Adwelling,@ and alternatives were not discussed in depth. It was discussed that Aimprovements@ meant everything on the property. They did not think the average person was that concerned with all buildings on the property, but did not know how to re-word it for sure. Counsel Widger said she thought making it Aand/or@ would be approvable by the Attorney General=s office. Mr. Ahlvers said that would mean either the dwelling or the improvements, or both, but would not necessarily mean both. Sellers needed to identify anything out of the ordinary.

JoAnn Grennan noted that Part II, Section D, #9 asked if the property was connected to a natural gas system, which was straightforward. Chairperson Gale asked if she was suggesting the section could just ask if the property was connected. Ms. Grennan said yes. Mr. Ahlvers noted that there may be gas to the property, but it may not be connected to the dwelling.

Commissioner Shepard said he did not think it was significant whether the question read Aand/or@ or just Aand,@ and he would not vote to make that amendment.

A vote was taken on the pending motion as amended. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Director Tyrrell announced that the changes would need to be made to the form promptly, to allow implementation of the form by 1-1-03. If licensees want to use the new form before that date, they would need to advise the seller that the old form had information not included on the new form, and that they would need to include three additional items in the comments section: whether there was a sauna, and if it was steam or dry; if there was any exposed wiring; and if there were any other defects which materially affected the value of the property. Otherwise, licensees should use the old form, then have the seller complete a new form for use on 1-1-03. Commissioner Moline asked what was the earliest date licensees could use the new form. Director Tyrrell said it would be after approval by the Attorney General and the Governor, and distribution to brokers. Commissioner Wiebusch asked how late licensees could use the old form. Director Tyrrell said it cannot be used after 12-31-02, and noted that it was a civil statute. Commissioner Shepard asked if licensees could have sellers fill out both forms. Director Tyrrell said yes, as long as each form was dated correctly, a seller could fill out both forms at the time of the listing prior to 1-1-03. Director Tyrrell said he could put an explanatory article in the Commission Comment.

Commissioner Strand was temporarily absent and excused from 10:49 a.m. to 10:51 a.m.

Chairperson Gale declared the Rule Hearing concluded at 10:52 a.m.

Informal Special Appearances

By Exhibit - David L. Rogness, Salesperson Applicant

Director Tyrrell presented an Exhibit which included correspondence regarding Mr. Rogness=s Special Appearance, a copy of Mr. Rogness=s application, and supplemental information Mr. Rogness provided regarding his funeral director license disciplinary history. A copy of said Exhibit is attached to and made a part of these Minutes. Mr. Rogness was not present.

Director Tyrrell reviewed the Exhibit, including Mr. Rogness=s explanation of the disciplinary action against his funeral director license.

After discussion, a motion was made by Moline and seconded by Wiebusch to allow Mr. Rogness to be granted a non-resident reciprocal broker=s license. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

June 12, 9:15 a.m. - Charity M. Wegner, Potential Salesperson Applicant

Director Tyrrell presented an Exhibit which included correspondence regarding Ms. Wegner=s Special Appearance, a letter from Ms. Wegner regarding her criminal history, and letters of recommendation, and an additional Exhibit which consisted of the judge=s order to set aside Ms. Wegner=s felony conviction. A copy of said Exhibits are attached to and made a part of these Minutes. Ms. Wegner was not present.

Director Tyrrell noted that the second Exhibit was an order which set aside Ms. Wegner=s felony conviction. The District Court had nullified her conviction, and in the opinion of Director Tyrrell and Counsel Widger, that nullification did away with the conviction so it was no longer on her record, and therefore did not fit under the Commission=s policy which required all applicants with felony convictions to appear before the Commission. Director Tyrrell recommended that the Commission take no action, or take a vote to allow her to sit for the examination.

Chairperson Gale said that only the Pardons Board had the power to set aside convictions. Counsel Widger noted that this was not a pardon. The Order stated that the conviction was nullified, and all civil disabilities and disqualifications shall be removed. Counsel Widger noted there was an inconsistency in the law regarding similar situations. The State Constitution stated that only the Pardons Board could restore civil rights, but the law said the courts could set aside convictions and restore civil rights. In an Attorney General opinion, it was determined that the legislative branch could not give the judiciary branch that power. If all this information was taken in context, Counsel Widger=s conclusion was that court had the authority to set aside a conviction. The person could then get the record expunged. If it involved a felony conviction, the court could not restore civil rights. Ms. Wegner needed to go to the Pardons Board to get her civil rights back. Chairperson Gale said he was not convinced, and felt that the Commission needed to ask the Attorney General for an opinion. This discussion had come up at the Pardons Board, and they had determined that setting aside a felony could only be done by the Pardons Board. The courts did not have the constitutional authority to do so. Counsel Widger noted that the Order did not restore her civil rights, and setting aside convictions was a separate issue. Chairperson Gale noted that, if the conviction was wiped from the record, then there was no conviction, so the civil rights were restored automatically. The Attorney General argued that only the Pardons Board had this power. Counsel Widger noted that the Orders were worded incorrectly, like this one, which was the reason the Attorney General had commented. The Attorney General had not commented on the court=s power to set aside convictions, or to expunge them from the record. In Counsel Widger=s opinion, the courts could set aside convictions without restoring civil rights.

Director Tyrrell asked if the Commission would allow Ms. Wegner to sit for the examination based on Exhibit 12b alone, and not considering Exhibit 12b1.

After discussion, a motion was made by Strand and seconded by Moline to allow Ms. Wegner to sit for the salesperson examination after making proper application, and to have a license issued upon passing. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Counsel Widger said she would ask Lynn Melson at the Attorney General=s office regarding the current opinion on setting aside convictions.

Approve DAS Memorandum of Understanding - Performance of Pre-Audit Functions

Director Tyrrell presented an Exhibit which consisted of a proposed Memorandum of Understanding - Performance of Pre-Audit Functions between the Department of Administrative Services and the Commission. A copy of said Exhibit is attached to and made a part of these Minutes.

Director Tyrrell noted that the Memorandum would require some additional work on the part of Commission staff, which consisted of slightly more review, but the workload increase was not onerous by any means.

After discussion, a motion was made by Moline and seconded by Strand to authorize the Director to enter into the Memorandum of Understanding as presented. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Consider Residence Address Display on Website

Director Tyrrell reported that it was the Commission=s long-standing practice to not give out residence addresses by phone or on the website, and to only give them if a formal public information request was received. Companies subscribed to the passing list, which contained applicant residence addresses, since that was the only address the Commission had for applicants. When the test was given monthly, there was a natural cutoff for sending out the passing list. Now that the test is given daily, there is no cutoff. It would make sense to put applicant information on the website, so that companies could search by applicant status, and contact applicants prior to passing. It would cost $650 to set up the capability. Director Tyrrell wanted the Commission to determine whether to make residence address information available on the website.

Deputy Director Hoffman noted that certain people had requested that their residence address not be disclosed, and for those people only, residence information was not even entered on the computer. Staff had to refer to the paper file to get that information. Staff had buried residence information for less than 10 people during her tenure, and their information would still not show on the website if this was allowed. That information would still be protected.

Chairperson Gale asked if all applicants= addresses would be shown. Director Tyrrell said yes, for every salesperson or broker applicant. Commissioner Wiebusch asked if that would include current licensees. Deputy Director Hoffman noted that some licensees had specifically requested and given permission to use their home address as their business address, and in those instances, the home address would be shown. Director Tyrrell noted that the website did not currently contain any residence address information. Once the Commission allowed home addresses to be disclosed, that would also show on the website if that was the licensee=s contact address. Chairperson Gale asked if written consent was needed to use the residence address. Deputy Director Hoffman noted that the software defaulted to the business address unless the licensee specifically requested otherwise. Most of time the request was made in writing, but it may not have been in 100% of the situations.

Commissioner Moline asked if this information was used by companies to recruit agents. Deputy Director Hoffman said that appeared to be the primary use, but it was also used by schools to market test preparation courses. Allowing the residence information to be shown would also allow companies to contact reciprocal applicants, not just those taking the examination. Commissioner Moline noted that recruiting helped applicants find designated brokers, too.

After discussion, a motion was made by Moline and seconded by Nigro to allow applicant and licensee residence addresses to be made available on the website when it is the contact address of record, and to approve the necessary expenditure.

Chairperson Gale asked if applicants gave permission for residence address disclosure. Deputy Director Hoffman said she believed permission was given on the application, above the signature. Chairperson Gale asked for clarification that if the applicant said confidentiality was critical, it would not be put on the website. Deputy Director Hoffman said that was the case, and the residence information was not even entered into the office database. Staff had to look at the paper file. Chairperson Gale asked if this would compel disclosure. Director Tyrrell said no, staff would continue the same policy, but if a person made a formal public records request, staff could not redact the information from the paper file. Deputy Director Hoffman noted that it was public information.

Commissioner Johnson noted that the Douglas County Assessor had recently put residence addresses on that website. There were protests, but the Assessor said the information would be removed if asked, and there had been few requests for removal.

A vote was taken on the pending motion. Motion carried with Johnson, Moline, Nigro, Shepard, Strand, Wiebusch, and Gale voting aye.

Commissioner Strand requested that staff put an article in the Commission Comment to give people a chance to react to the change.

Information Matters

ARELLO District Meeting - July 14-16 in Rapid City, SD

Director Tyrrell reminded Commissioners that the ARELLO District Meeting would be held July 14-16 in Rapid City, SD. Commissioners Johnson, Nigro, and Wiebusch will attend.

No action was necessary on this Report.

Modified Rule Changes Submitted for Final Approval on June 4, 2002

Director Tyrrell reported that the rule changes approved in January and modified in May were submitted for final approval on June 4.

No action was necessary on this Report.

Michael Poskochil of Lincoln Appointed to Fill
Salesperson Member Position Effective July 23, 2002

Director Tyrrell announced that Michael Poskochil of Lincoln was appointed to fill the Commission=s salesperson member position, which is currently held by Joan Nigro, effective July 23, 2002. Director Tyrrell also reminded the Commissioners to keep the night of August 21 open for Commissioner Nigro=s retirement party.

Commissioner Wiebusch noted that this was Commissioner Nigro=s last official meeting, and thanked her for her commitment and the time she had given to the Commission. Commissioner Nigro thanked all the current and past Commissioners and staff, and noted that she had recently been appointed to the Omaha Housing Authority.

No action was necessary on this Report.

Future Meeting Dates

August 21-22, 2002 - Staybridge Suites, Lincoln

September 25-26, 2002 - Staybridge Suites, Lincoln

Recesses and Adjournment

At 9:30 a.m. on June 12, Chairperson Gale declared a brief recess, and reconvened the Meeting at 9:38 a.m. for the Hearing.

Commissioner Strand was temporarily absent and excused from 10:49 a.m. to 10:51 a.m.

At 10:52 a.m. on June 12, Chairperson Gale adjourned the Hearing and declared a brief recess, and reconvened the Meeting at 11:05 a.m.

Chairperson Gale was temporarily absent and excused from 12:41 p.m. to 12:44 p.m.

At 12:45 p.m. on June 12, there being no further business to come before the Commission, Chairperson Gale passed the gavel to Commissioner Nigro. A motion was made by Moline and seconded by Wiebusch that the Meeting adjourn. Motion carried with Gale, Johnson, Moline, Shepard, Strand, Wiebusch, and Nigro voting aye.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission, do hereby certify that the foregoing Minutes of the June 12, 2002, Meeting of the Nebraska Real Estate Commission were available for inspection on June 26, 2002, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Guests Signing the Guest List
Jerry Ahlvers, Nebraska Realtors
7 Association, Omaha and Lincoln
JoAnn Grennan, CBSHOME, Omaha
Harding Collis, NP Dodge, Omaha
Beth Lube, Re/Max Real Estate, Omaha