Chairperson Gale convened a meeting of the Nebraska Real Estate Commission at 9:10 a.m. on March 17, 2005, in the Goldenrod Room of the Ramada Limited South, located at 1511 Center Park Road in Lincoln, Nebraska. All of the members of the Real Estate Commission were present, with the exception of Commissioner Strand, who was absent and excused. 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 discussion items.

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 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 12b and 12c had been added since the tentative agenda was mailed to the Commissioners.

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

The minutes of the Commission meeting held on February 15-16, 2005, were considered.

Commissioner Johnson said he liked the minutes as they were, and that he liked to refresh his memory from the minutes. Commissioner Poskochil agreed, and said he did not know where one would draw the line. Ms. Burklund noted that there was not much in the minutes regarding the routine reports. She included more detail in policy discussions and special appearances, when the Commission was making or interpreting policy.

Commissioner Moline said that sometimes he did not remember making statements attributed to him, and that sometimes the intent was lost in the detail.

Chairperson Gale said minutes were usually for recording the voting, not the discussion. The Commission had some minutes that were 25-30 pages long, and the Commissioners had to read every line to make sure it was an accurate reflection of what was said. Commissioners did not have a transcript to compare it against, they just remembered the general discussion. Chairperson Gale said staff needed to do more editing, and that informal special appearances did not need as much detail.

Commissioner Shepard said he agreed with Commissioner Poskochil. He liked to look back at the minutes, and it would be tough making decisions whether to put something in or not. Commissioner Shepard did not think every word needed to be put down, but that the context was needed. Commissioner Shepard did not know if the Commission could get that without every word. Commissioner Shepard did not want to see the minutes with just the final result of a discussion. Commissioner Shepard said he had faith in Ms. Burklund that she could cut it back a bit if the Commission wanted.

After review, a motion was made by Poskochil and seconded by Shepard to approve the minutes as presented. Motion carried with Johnson, Poskochil, Shepard, and Moline voting aye, with Gale not voting, having been absent and excused for part of the meeting, with Grady not participating or voting, having being absent and excused for the meeting, and with Strand not participating or voting, being absent and excused.

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

Director Tyrrell noted that there was nothing unusual to report in Receipts The list of expenditures which were carried over to this month was attached, as requested at the previous meeting. Commissioner Moline said he liked having the list, because Commissioners did not have to look for exceptions in the report.

Director Tyrrell reported that Expenditures Category 554900, Other Contract Services, was over for the month due to website credit card fees and court reporters at hearings; and Category 583000, Furniture and Office Equipment, was over because staff bought a paper shredder to dispose of bank statements.

The cash fund balance as of February 28, 2005, was $1,037,661.82, which compared to a cash fund balance of $944,335.49 on February 29, 2004.

After discussion, a motion was made by Moline and seconded by Shepard to file the February Receipts and Expenditures Report for audit. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

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

Deputy Director Hoffman presented for ratification the Non-Resident 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 Moline and seconded by Poskochil to ratify issuance of the licenses as set forth in the report. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Deputy Director Hoffman presented for ratification the February Examination 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 Shepard to ratify the February Examination Report for the purpose of issuing licenses. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

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.

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.

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 Moline and seconded by Johnson to ratify the reports. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Deputy Director Hoffman presented an exhibit regarding a continuing education activity application, a copy of which is attached to and made a part of these minutes.

Commissioner Poskochil said the Commission should not appear to endorse licensees trying to act as financial advisors, and should not approve the course.

Commissioner Johnson said the goal should be to get licensees knowledgeable enough to know when they are not knowledgeable enough, and let them know when they need expert input, so they would let the client know that was an option. If the course content could be tempered to let licensees know what resources were available for clients, that might be approvable. Commissioner Johnson did not think licensees themselves had enough knowledge to address this subject without the appropriate license.

Deputy Director Hoffman said that marketing products should happen outside the classroom. Commissioner Johnson asked if the course was approved in other jurisdictions. Deputy Director Hoffman said that Colorado was the only jurisdiction referenced. Commissioner Grady said the material stated there were a lot of them. Deputy Director Hoffman agreed, but the only specific one mentioned was Colorado.

Commissioner Moline noted that the provider could run the course without credit, but they were seeking continuing education approval to get more people to come. Deputy Director Hoffman said she had discussions with the provider regarding marketing contained in the course, and that they had removed most product promotion. Commissioner Poskochil said the Commission did not want to give credit for self-promotion.

A motion was made by Poskochil and seconded by Johnson to reject the activity. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Deputy Director Hoffman presented an exhibit regarding the instructor development workshop, a copy of which is attached to and made a part of these minutes.

Commissioner Moline noted that instructor development workshops were very good. Deputy Director Hoffman noted that this one would be half a day longer than usual, because a representative from Williams Underwriting Group Inc. would be there to discuss risk management. The costs were estimated on the high end. Commissioner Moline asked if staff would market it extensively. Deputy Director Hoffman said that mailings would be sent to all pre-license instructors and continuing education providers, and that providers were encouraged to bring potential instructors as well. Rod Faubion from Great Plains School of Real Estate had offered the Commission the use of his newly-remodeled facility at no charge, and Deputy Director Hoffman appreciated his support.

A motion was made by Moline and seconded by Shepard to approve the expenditures for the instructor development workshop. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Deputy Director Hoffman noted that the Commission had discussed emphasizing risk management for licensees a few months ago. Deputy Director Hoffman had researched the topic on the Internet, and found that courses most often focused on financial fraud and protecting databases and records. For our industry, areas of focus included agency, Seller Property Condition Disclosure Statements, handling trust funds, fair housing compliance, and adhering to ethical practices. Deputy Director Hoffman noted that the Commission was already emphasizing these areas by designating them as R courses. She suggested that the next step was to give the instructors training in making risk reduction a part of each of their courses. That was why she had invited Richard Williams to the instructor development workshop to address how to reduce risk and how to incorporate it into both pre-license and continuing education courses.

Deputy Director Hoffman said the Commission had also discussed putting articles in the Commission Comment regarding risk reduction. In trying to develop a series of articles, she contacted REEA member authors, but had not yet been successful. Some articles that were available will need editing to be specific to Nebraska. Richard Williams will be doing an article on basic office skills regarding documentation, responsiveness, and paperwork.

Commissioner Moline thanked Deputy Director Hoffman for addressing one of his highest priority issues. Commissioner Moline said there were articles in the paper regarding responsibility and liability for protecting identity-related information, and he did not know if it was covered under errors and omissions insurance. Chairperson Gale said that most information was being entered into databases, which seemed more vulnerable than if it was in a file. Counsel Widger asked if the Commission wanted an article on these concerns. Commissioner Moline said yes, and that it should encourage licensees to talk to their legal counsel. Director Tyrrell said that staff was preparing a newsletter, and will include such an article.

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.

Counsel Widger said that it cut down on attorney fees to have the investigator do preliminary work during an expansive investigation, such as contacting witnesses and getting documents. It was helpful from her perspective.

Commissioner Moline asked that the investigative reports be kept as short as possible.

Director Tyrrell asked the Commission to contact staff at any time if they had a comment or idea on the investigative reports. Staff were willing to make them the way the Commission wanted.

Commissioner Grady said he appreciated the investigative reports, and how they summarized the information gathered. Commissioner Grady thought they were concise and extremely good.

Regarding the summary sheet, Director Tyrrell noted that the Voss appeal had been dismissed due to a procedural error, i.e., it being filed in the wrong office. The issue had not been adjudicated. There would be a hearing on the Zitek appeal on April 26.

No action was necessary on this report.

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

Item A Complaint # 2004-064, Connie Nordhues vs. Linda Claire McGuire & Lisa Marie McGuire

Prior to discussion of this matter, Commissioner Johnson recused himself, thereby nullifying any potential conflict of interest. Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Moline that the complaint be dismissed without prejudice against both parties, and that the Commission file a complaint on its own motion per the staff recommendation. The motion died for lack of a second.

A motion was made by Grady and seconded by Poskochil that the complaint be dismissed without prejudice against both parties. Motion carried with Grady, Poskochil, Shepard, Moline, and Gale voting aye, with Johnson not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Strand not participating or voting, being absent and excused.

A motion was made by Moline and seconded by Poskochil that the Commission file a complaint on its own motion against Respondent B only on Neb. Rev. Stat. 76-2421(1), for an untimely agency brochure, and 81-885.24(29), for negligence. Motion carried with Grady, Poskochil, Shepard, Moline, and Gale voting aye, with Johnson not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Strand not participating or voting, being absent and excused.

A motion was made by Shepard and seconded by Moline that the Commission file a complaint on its own motion against the Complainant on Neb. Rev. Stat. 76-2418(1)(b) and (c), for failure to explain the buyer agency agreement, and 81-885.24(29), for negligence. Motion carried with Grady, Poskochil, Shepard, Moline, and Gale voting aye, with Johnson not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Strand not participating or voting, being absent and excused.

Item B Complaint # 2004-065, Harold & Lola Radford vs. Norman Eugene Schulz & Karen M. Firnhaber

Prior to discussion of this matter, Commissioner Moline recused himself, thereby nullifying any potential conflict of interest. Deputy Director Mayrose presented the alleged violations and investigative report to the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and discussion, a motion was made by Poskochil and seconded by Shepard that the complaint be dismissed without prejudice against Respondent A. Motion carried with Grady, Johnson, Poskochil, Shepard, and Gale voting aye, with Moline not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Strand not participating or voting, being absent and excused.

A motion was made by Shepard and seconded by Grady that the complaint be dismissed without prejudice against Respondent B, and that a letter of admonition be sent. Motion carried with Grady, Johnson, Poskochil, Shepard, and Gale voting aye, with Moline not participating or voting, having recused himself, thereby nullifying any potential conflict of interest, and with Strand not participating or voting, being absent and excused.

Item C Complaint # 2004-067, Mary Huffman vs. Kyle William Schow

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 Poskochil that the complaint be dismissed without prejudice. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Item D Complaint # 2004-070, James Nuels vs. Hanna M. DeBruin

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 Poskochil and seconded by Moline that the complaint be dismissed without prejudice. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Item E Complaint # 2004-071, Marjorie Ann Peterson vs. Robert A. Garrett

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 Shepard and seconded by Grady that the complaint be dismissed without prejudice. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Item F Complaint # 2004-072, Harold & Phyllis Buhr vs. Roger R. Williams & Farrell F. Ross

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 Poskochil that the complaint be dismissed without prejudice. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Item G Complaint # 2004-074, Ron Abboud & Nicole Byrnes vs. James Meadows Acuff & Gary Bert Stoneburg

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 Grady and seconded by Moline that the complaint be dismissed without prejudice. Motion carried with Grady, Poskochil, Shepard, Moline, and Gale voting aye, with Johnson voting nay, and with Strand not participating or voting, being absent and excused.

Deputy Director Mayrose presented a stipulation and consent order in the matter of Complaint #2004-051, Timothy E. Kuchta vs. Donald Christopher Miller. A copy of said order is attached to and made a part of these minutes. Mr. Miller was not present.

Deputy Director Mayrose reviewed the circumstances involved and noted the provisions of the order, which had been signed by Mr. Miller. The order specified a censure plus three hours of additional continuing education in ethics, to be completed within 90 days.

After discussion, a motion was made by Moline and seconded by Johnson to enter into the order as presented. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

The hearing scheduled for Complaint #2004-061, Commission vs. Stuart B. Mills, was continued to May 16, 2005, at 10:00 a.m.

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Chase said he thought he got all the documentation requested of him. There was one reference he had not yet received, but he had submitted three other reference letters, court documents showing that the charges all stemmed from same date, a statement from his parole officer, and an affidavit from his ex-fiancee.

Mr. Chase said the board could see that the crime was an isolated incident. He had no criminal background to speak of, just charges for disturbing the peace and minor in possession when he was younger. Since completing his sentence, he had moved up quickly in the mortgage management company, and strove to improve his career. This charge had very much hindered that, which it should. Mr. Chase was not trying to minimize the crime he had committed, but it was an isolated incident, and there was no way it would every happen again, or a crime of any other nature. A real estate license was required for companies with whom he wanted to pursue his career. Mr. Chase said he understood the guidelines were in place for good reason. He had provided the board everything they had required. Mr. Chase did not know if his situation was extraordinary, but something like that would never happen again. He hoped the board would help him get over this hurdle, and get on with his life.

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

Chairperson Gale asked the mover and seconder to consider imposing the conditions that Mr. Chase must notify his initial employing broker of his criminal conviction(s) and the circumstances of the conviction(s); the employing broker must confirm said notification in writing to the Commission prior to issuance of the license; and that Mr. Chase must immediately notify Commission staff of any criminal charge which could result in jail time during his first two years of licensure. Both the mover and seconder accepted the amendment.

Commissioner Grady said he recently made a presentation to his peers, and one concern was how the Commission allowed some applicants with problem histories to sit for the examination. They were very emphatic for the level of standards set for someone to enter the real estate industry. Chairperson Gale said he agreed with them, and had a pretty strong view of past history indicating future performance. Commissioner Grady said he brought that concern from his peers, and himself.

Chairperson Gale said the Commission struggled with it, and spent an awful lot of time on special appearances. The Commission had set the guidelines. Applicants could no longer get away with providing false information on the application, due to the fingerprint-based criminal history search. Some applicants with criminal histories have not been allowed to be licensed, and some have. At an informal special appearance, the Commission was almost sitting as a judge and jury, assessing the character, values, and honesty of applicants by how they addressed their convictions. Some applicants blamed others or the system, which did not pass muster. There must be sincere remorse for the crime committed, clear evidence that they have rehabilitated their lives, and good conduct toward their family, career, and community. The Commissioners weighed those factors pretty closely, and were aware of the potential negative impact on the industry. Chairperson Gale had run into this perception on the Pardons Board as well. The purpose was to have a mechanism for equity and to allow a person a new beginning, as well as the duty to maintain a high standard in the industry.

Commissioner Johnson said the Commission typically asked folks to not let them down. Commissioner Johnson asked that of Mr. Chase, too. Commissioner Johnson agreed that, as Commissioner Grady had said, Commissioners got questions from their peers about approving people, and it really helped if they did not let us down.

Motion carried with Johnson, Poskochil, Shepard, Moline, and Gale voting aye, with Grady voting nay, and with Strand not participating or voting, being absent and excused.

Chairperson Gale reviewed the procedure for informal special appearances.

Mr. Short distributed letters from his probation officer and a real estate broker. A copy of said exhibit is attached to and made a part of these minutes, denoted as exhibit 12b1.

Chairperson Gale asked if Mr. Short sold insurance in Omaha. Mr. Short said he originally sold insurance in Newport News, VA. He did well, and when his manager started a corporation in Omaha, he moved here with his family in 1978, and it was home now. Chairperson Gale asked if the insurance business had supported him. Mr. Short said yes, he had been a member of the Million Dollar Round Table for 5 years in a row, and was Agent of the Year once.

Chairperson Gale said the guidelines stated that, unless there were extraordinary circumstances, a license will be denied if the sentence, probation, and restitution were not completed. It appeared that Mr. Short was still on probation, but near the end. Mr. Short said that was true.

Director Tyrrell noted that the Commission had previously allowed an applicant who was still on probation for a misdemeanor sit for the examination. Applicants still on probation for felonies had not been allowed to sit.

Commissioner Moline noted that the guidelines specified a felony violent crime or financial crime, and asked if felony only applied to violent crime. Chairperson Gale said his recollection was that felony applied to both, but other Commissioners may have a different recollection.

Commissioner Grady asked if Health and Human Services claimed 100% of the inheritance, and came after him because of that, or if they would only have been entitled to a portion of it. Mr. Short said that anything over $5000 would be considered theirs, as he understood it.

Chairperson Gale said the way he read the original paragraph, anyone with a felony or a pattern of convictions must come before the Commission, and others were at the discretion of staff. Chairperson Gale asked if Director Tyrrell recommended that Mr. Short appear. Director Tyrrell said he asked Mr. Short to appear because it was a financial matter. If it was not financial, he would probably not have appeared.

Commissioner Poskochil asked if Mr. Short pled guilty. Mr. Short said he pled guilty to a lesser charge to put the matter behind him. The charge was abuse, and he pled guilty to attempted abuse.

Commissioner Grady noted that Mr. Short was well aware when the former employee received the money that Health and Human Services was entitled to it. Mr. Short said yes. Mr. Short said that he currently paid the court, and the court paid the former employee. If any amount was over the asset limit, Health and Human Services seized it. Commissioner Grady asked if Mr. Short was aware of that at the time. Mr. Short said yes, and that he had paid back $1600 by putting it in his social services account. Health and Human Services was obligated to pay the nursing home for rest of his life, and he was a fairly young man. Commissioner Grady asked if Mr. Short knew it should not have been borrowable, and that it should have been paid to social services. Mr. Short said yes and no. He thought it was OK because the former employee signed a note. Mr. Short did not think he was breaking the law at the time.

Commissioner Poskochil asked Mr. Short why he became the power of attorney for his former employee, and asked if he served as power of attorney for others. Mr. Short said the former employee had no family, and that he did not have a power of attorney for anyone else. Commissioner Poskochil asked if Mr. Short was aware of the scrutiny power of attorneys received. Mr. Short said he now knew the fiduciary responsibility.

A motion was made by Grady and seconded by Johnson that Mr. Short not be allowed to sit at this time, and he could reappear before the Commission after his probation and restitution were completed.

Commissioner Moline noted that, when Mr. Short comes back, he will be off the Commission. Commissioner Moline was big on financial crimes. Mr. Short may have done this totally innocently, but to be the power of attorney and not have a note did not wash with him. Commissioner Moline said he will vote with the motion to deny. Commissioner Poskochil agreed.

Commissioner Shepard asked if Mr. Short would have to come back if his request was denied today. Director Tyrrell said Mr. Short would contact staff whenever he wished to reappear. If he requested a reappearance or filed an application, he would reappear. If he did not, the Commission would not see him again.

A vote was taken on the pending motion. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Chairperson Gale reviewed the procedure for informal special appearances.

Ms. Wilcox said she was here because she would like to continue her schooling and become a real estate agent. She had a felony record. In 1998, when she was about 19, she made some bad choices in her life. She and a friend had taken money from an acquaintance, who pressed charges against them, which led to her felony conviction. Ms. Wilcox was sentenced to a year of incarceration in York. She served a month in York, then was on work release in Omaha for about three months, then was released on parole. Ms. Wilcox had not been in trouble with the law otherwise, and had nothing else on her record. Ms. Wilcox said it was really hard getting a job because of the conviction. She wanted to choose a career that was not like her past jobs, so she chose real estate. She liked working with people, and this would be a lifelong career at which she would be really good.

Chairperson Gale noted that Ms. Wilcox had four children, and that she must be pretty busy with them. Ms. Wilcox said she was. Chairperson Gale said he was surprised at the severity of the punishment, to be convicted of a felony and incarcerated on the first offense. Ms. Wilcox said her accomplice only received a year of probation. Chairperson Gale asked if Ms. Wilcox denied guilt and went to trial. Ms. Wilcox said no, she had accepted responsibility for her actions, and complied with everything they wanted. Her lawyer had said she had a good chance of getting probation. The judge said he wanted to make an example of her. She never questioned the sentence, she just served her time and went on with her life. Chairperson Gale noted that the institution must have had confidence in her, since they paroled her quickly. Chairperson Gale asked if she had any other episodes since. Ms. Wilcox said she had not. Chairperson Gale asked how much money was involved. Ms. Wilcox said she did not remember exactly, but it was around $600.

Commissioner Poskochil asked if the people involved were all friends. Ms. Wilcox said the victim was older, in his late 20s. They were friends, but the victim was more of a friend of her accomplice, who was the same age as her. Commissioner Poskochil asked whose idea it was to take the money. Ms. Wilcox said she did not know, but it was probably both of them. Commissioner Poskochil asked how they decided to do it, and if it was planned in advance. Ms. Wilcox said it was not a sudden thing. She did not know how far in advance they had talked about it. She had tried to move on with her life, and did not remember that detail. Commissioner Poskochil noted that her accomplice got probation, and asked if Ms. Wilcox thought his testimony was that it was her idea. Ms. Wilcox said it could have been. Commissioner Poskochil said he wanted to find out whose idea it was. Ms. Wilcox said she did not think just one of them thought of it, but that both of them did.

Commissioner Moline said that, if the Commission allowed her to sit, there were certain responsibilities that went with that. Licensees had to keep track of earnest money. Commissioner Moline asked if anything else was going to show up on her criminal history background check. Ms. Wilcox said no. Commissioner Moline asked if she had any other contacts with law enforcement. Ms. Wilcox said no, she never had a ticket or anything.

Commissioner Johnson asked where Ms. Wilcox currently lived. Ms. Wilcox said Norfolk. Commissioner Johnson asked if she had talked to any brokers. Ms. Wilcox said she was currently taking classes and was involved in a study group at a real estate company. She planned to work for them. Director Tyrrell noted that it was a satellite study group for correspondence courses.

Commissioner Shepard asked if the company knew she was here today, and if she had been open and honest with them. Ms. Wilcox said yes. Commissioner Shepard asked if she had any other job history besides raising her kids. Ms. Wilcox said she had been a photographer, and her supervisor would write her a letter of recommendation. She had also worked in a nursing home. Commissioner Shepard asked her to verify that there was nothing else on her record. Ms. Wilcox said there was not.

Chairperson Gale asked if Ms. Wilcox had paid her full restitution. Ms. Wilcox said yes. Chairperson Gale asked if it had been split between her and her accomplice. Ms. Wilcox said she thought it was supposed to be split, but she had paid two payments of $310. Chairperson Gale asked if she had paid it all, plus court costs. Ms. Wilcox said yes.

Chairperson Gale asked if Ms. Wilcox had regular employment as a photographer. Ms. Wilcox said she had done that for 2 out of the 6 years, and otherwise had stayed home with the kids.

Commissioner Poskochil asked if Ms. Wilcox was soon to be married. Ms. Wilcox said yes. Commissioner Poskochil asked if her fiancee was employed. Ms. Wilcox said yes, he was a farmer. Commissioner Poskochil asked if they had any financial problems, a bankruptcy, or anything that would cause her to take earnest money funds. Ms. Wilcox said no.

Chairperson Gale recommended that, no matter what the Commission decided, Ms. Wilcox should consider applying for a pardon since it was close to 10 years since her conviction. It sounded like Ms. Wilcox was on a good path, and could probably be pardoned without much difficulty. Ms. Wilcox said she would keep it in mind.

After discussion, a motion was made by Moline and seconded by Shepard to allow Ms. Wilcox to sit for the salesperson examination after making proper application and to have a license issued upon passing, with the conditions that Ms. Wilcox must notify her initial employing broker of her criminal conviction(s) and the circumstances of the conviction(s); the employing broker must confirm said notification in writing to the Commission prior to issuance of the license; and that Ms. Wilcox must immediately notify Commission staff of any criminal charge which could result in jail time during her two years of licensure.

Commissioner Moline said he was death on financial crimes, but he could chalk it up to her being 19 and not too bright at that time. Commissioner Moline told her not to squander her second opportunity.

Motion carried with Moline, Poskochil, Shepard, and Gale voting aye, with Grady and Johnson voting nay, and with Strand not participating or voting, being absent and excused.

Chairperson Gale said the industry had high standards for truthfulness and honesty. The Commission expected the best from Ms. Wilcox, and asked that she be a role model and be successful in her career. The Commission put themselves on the line whenever they approved someone with criminal convictions, but the majority of those convinced the Commission that they were on the right path, could be a successful licensee, and could maintain high ethical standards. Chairperson Gale asked that Ms. Wilcox not let them down. Ms. Wilcox said she would not.

Director Tyrrell noted that this agenda item had been postponed from the previous Commission meeting, so that more than four Commissioners could participate in the discussion of the proposed amendments. Director Tyrrell presented an exhibit which included discussion points and enabling language changes to allow a business entity to have more than one trade name. A copy of said exhibit is attached to and made a part of these minutes.

Counsel Widger reviewed the first two discussion points, and Deputy Director Hoffman reviewed the database-related discussion points.

Commissioner Moline asked Counsel Widger what legal concerns she had. Counsel Widger said she did not know if there were legal issues, because the Commission could revise its regulations to read as desired. Commissioner Moline asked Counsel Widger if she had concerns regarding protection of the public with this change. Counsel Widger noted that she did not take the calls at the Commission office. From a prosecution standpoint, she did not have a problem. She did not know if it would cause confusion in the office.

Commissioner Shepard said that, if he wanted to buy Coldwell Banker, he could not be the designated broker for that company and Don Peterson Associates. Counsel Widger said that was correct. Commissioner Shepard could not operate as two different companies. This rule change did not change that. This rule change just allowed one company to have more than one trade name.

Director Tyrrell said the issue was basically that the public could be confused as to who owns the company, and who is the broker, if they were totally different trade names. Commissioner Moline asked what was the issue with that. Director Tyrrell said he did not know if it was an issue, but people had issues with everything. Commissioner Moline said he did not see a hue and cry to tell the Commissioners not to do this.

Commissioner Shepard that was already the case, and asked that the Commission talk about what they were talking about. In this case, Home Services owned both Home and Woods Bros. Commissioner Moline noted that 30% of all agents in the state essentially worked for the same entity. Commissioner Johnson agreed, but said the general public did not know that. Commissioner Moline said they did in Lincoln.

Chairperson Gale noted that Commissioner Strand was not in attendance, but he was the public member of the board. Chairperson Gale said he tried to act in that capacity also. If there was a potential of public harm, the Commission would need to decide.

Commissioner Moline suggested that the Commission hold a public hearing on the rule change and see who showed up.

At 12:50 p.m., Chairperson Gale was excused, and passed the gavel to Acting Chairperson Johnson since Commissioner Moline was the proponent of this issue.

Commissioner Poskochil asked if using multiple unrelated trade names was allowed in other states. Director Tyrrell said that other states allowed ownership of multiple companies, but they licensed the companies. Nebraska used to license companies in the 1970s, but it was discontinued because Nebraska licensees felt they were being double-taxed for the broker license and the company license. There were probably a number of jurisdictions that allow brokers to be designated brokers for multiple companies, and probably tracked licensees by tying them to the companies.

Commissioner Grady noted that, two meetings ago, Commissioner Moline said he would figure out a way to proceed if this change was not made. Commissioner Moline said he had indicated that his company would just have to live with the current situation. In Lincoln, it was always in the paper that both Home Real Estate and Woods Bros. were owned by Berkshire Hathaway. Marketing research showed that people chose agents, not companies. Commissioner Moline said he did not know how the public would get hurt by allowing this change. His company just got through rolling Home Real Estate into HomeServices, and wanted to move Woods Bros. in and keep doing business as is. Commissioner Moline did not know the cost of changing the database. Director Tyrrell estimated that it would be $40,000. Commissioner Moline noted that staff currently ask that companies tell the Commission when agents move offices, so mail was sent to the correct branch address. Commissioner Moline looked at this change as allowing flexibility to company structure. The Commission would still hold the agent and the branch manager responsible.

Commissioner Moline said he did not want to make policy decisions based on money. He did not want to spend it foolishly, but the expenditure would not break the Commission. Director Tyrrell said that, without a statutory change, the Commission needed to tie licensees to the designated broker. He was pretty sure that, statutorily, licensees could not transfer within one company. Director Tyrrell noted that changing the database would cost the same whether 2 or 10 trade names were allowed.

Commissioner Poskochil asked if there would be a reason for 100 different shops. Commissioner Moline said common sense would limit the number of trade names. He did not think there was a difference between allowing related or non-related trade names. It came back to the designated broker being held responsible.

Acting Chairperson Johnson asked if people would want trade names based on the office location. Commissioner Moline said no, because they could not market all those names. The key to marketing was a brand name, and you wanted the public to know who you were. Companies would not want to divide up into all these little names. Acting Chairperson Johnson said he was just talking about limiting competition.

Commissioner Moline asked, if the Commissioners could support the change, that the Commission decide on the language and set the rule hearing today. Then the Commission could invite the public to come and tell them what was good or bad about this rule change.

Counsel Widger reviewed the specific wording changes noted in the exhibit.

Commissioner Moline asked if staff had a laundry list of little fixes to be made. Counsel Widger said no, the rule hearing was only opening up this chapter. Ms. Burklund noted that the Commission usually stated in the motion that staff could make grammatical and punctuation changes if needed.

Acting Chairperson Johnson said he did not know for sure how many companies would be operating this way.

A motion was made by Poskochil and seconded by Grady to approve the language changes as presented and set a rule hearing, and to give staff permission to fix punctuation and grammatical errors. Motion carried with Grady, Moline, Poskochil, Shepard, and Johnson voting aye, and with Strand and Gale not participating or voting, being absent and excused.

Director Tyrrell presented information regarding the costs of sending Deputy Director for Enforcement Mayrose to the ARELLO Advanced Investigator Workshop in Louisville, KY, on August 18-20, 2005. A copy of said exhibit is attached to and made a part of these minutes. Total cost was expected to be approximately $1209.00.

After discussion, a motion was made by Moline and seconded by Shepard to approve the expenditures as presented. Motion carried with Grady, Johnson, Poskochil, Shepard, Moline, and Gale voting aye, and with Strand not participating or voting, being absent and excused.

Counsel Widger noted that this was a proposed response to the HearthStone Homes Inc. letter presented at the previous meeting. The Commission had directed staff to prepare a letter interpreting the policy. Currently, HearthStone Homes Inc. was the only company doing this program, and the Commission had not wanted to develop a policy based on one company. Counsel Widger drafted this letter instead of a formal policy interpretation.

Consensus of the Commission was that the proposed response should be sent to HearthStone Homes Inc., with the date corrected.

Director Tyrrell reviewed legislation of interest to the Commission.

LB 88 was approved by the Governor, and would be effective approximately September 1. During the Appropriations Committee hearing, senators quizzed Director Tyrrell about the increase in attorney fees. Commissioner Moline asked if the Commission had signed a contract with its new counsel. Director Tyrrell said they had worked out an agreement, but could not do a contract until the appointment letters were received. The Commission would operate as before, with its current attorneys, until the appointment letters were received.

No action was necessary on this report.

Director Tyrrell noted that Commissioners Grady, Johnson, Poskochil, and Shepard were planning to attend the Mid-Year Meeting.

No action was necessary on this report.

May 16-17, 2005 - Staybridge Suites, Lincoln

June 13-14, 2005 - Ramada Limited South, Lincoln

August 24-25, 2005 - Staybridge Suites, Lincoln

September 22-23, 2005 - Staybridge Suites, Lincoln

At 10:05 a.m. on March 17, Chairperson Gale declared a brief recess, and reconvened the meeting at 10:25 a.m.

At 12:15 p.m. on March 17, Chairperson Gale declared a brief recess, and reconvened the meeting at 12:21 p.m.

At 1:28 p.m. on March 17, there being no further business to come before the Commission, a motion was made by Shepard and seconded by Moline that the meeting adjourn. Motion carried with Grady, Poskochil, Shepard, Moline, and Johnson voting aye, and with Strand and 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 March 17, 2005, meeting of the Nebraska Real Estate Commission were available for inspection on March 29, 2005, in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.

Respectfully submitted,
Les Tyrrell
Director

Ernest Faubion, NP Dodge/Great Plains, Omaha

Mark Wehner, CBSHOME Real Estate, Omaha

Beth Lube, Re/Max Real Estate Group, Omaha

Pat Hoppe, Re/Max Real Estate Group, Omaha