Director Tyrrell noted that agenda items 12b and 19c had been added since the tentative agenda was mailed to the Commissioners. Director Tyrrell requested that an emergency item be added to the final agenda regarding the hiring of a Special Assistant Attorney General to handle a complaint with which current counsel had a conflict of interest. After discussion, a motion was made by Poskochil and seconded by Shepard to add Approval of Contact with Special Assistant Attorney General - Complaint 2005-040 as agenda item number 20. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

After review of the final agenda, a motion was made by Johnson and seconded by Griess to adopt the final agenda as amended. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

After review, a motion was made by Griess and seconded by Johnson to approve the minutes as presented. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Regarding the report, Director Tyrrell noted that any unusual items were set forth on the explanation page. Director Tyrrell noted that there was nothing unusual to report in Receipts. Director Tyrrell indicated that expenditures category 583300, Computer Hardware Equipment reflected a reduction of $3,000.00 in the budgeted column and the money was moved to 521200, Communications Expense. The amount was moved due to the change in server location since it is now housed out of the office. Director Tyrrell also discussed a delay in payment for the Nebraska.gov services for online transactions due to billing errors. Chairperson Gale asked Director Tyrrell to write a letter to the Secretary of State=s Office if help was needed to get the billing issue resolved.

After discussion, a motion was made by Poskochil and seconded by Bohrer to file the January Receipts and Expenditures Reports for audit. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

After review, a motion was made by Poskochil and seconded by Bohrer to ratify issuance of the licenses as set forth in the report. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

After review, a motion was made by Bohrer and seconded by Poskochil to ratify the January Examination Report for the purpose of issuing licenses. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

The new continuing education course titled ARookie Training@ offered by the Nebraska REALTORS7 Association of Lincoln was discussed. Commissioner Griess indicated the title was to get the Arookies@ to actually take it. Deputy Director Hoffman indicated that the course is worth nine hours of continuing education and is a two day course. There was also discussion regarding the courses taught by the Nebraska Bar Association and Deputy Director Hoffman reported that attorneys teach the courses.

Item A Complaint # 2005-045

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 Poskochil that the complaint be set for hearing as presented. After further discussion, a motion to amend was made by Poskochil and seconded by Johnson that the complaint be set for hearing only on Neb. Rev. Stat. '81-885.24(29). After further discussion, the motion to amend was withdrawn by the mover and second. A motion to amend was made by Griess and seconded by Johnson that the complaint be set for hearing on Neb. Rev. Stat. '81-885.24(22) and Neb. Rev. Stat. '81-885.24(29). The motion to amend carried with Bohrer, Grady, Griess, Poskochil, Shepard, and Gale voting aye, and with Johnson voting nay. A vote was then taken on the motion as amended. The motion as amended carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Item B Complaint # 2005-049 - Barry & Peggy Franzen vs. James K. Hunt

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 Bohrer that the complaint be dismissed without prejudice. After further discussion, a motion to amend was made by Poskochil and seconded by Johnson that a letter of admonishment be sent to the Respondent. The motion to amend carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye. A vote was then taken on the motion as amended. The motion as amended carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Item C Complaint # 2005-053 - Trenton Bradly Magid vs. Scott Keith Schneiderman

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 Shepard that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Shepard, and Gale voting aye, and with Johnson, Griess, and Poskochil voting nay.

Item D Complaint # 2005-054

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

After being advised of the results of the investigation and discussion, a motion was made by Johnson and seconded by Grady that the complaint be dismissed without prejudice. Motion failed with Grady and Johnson voting aye, and with Bohrer, Griess, Poskochil, and Gale voting nay and with Shepard not participating or voting, having recused himself, thereby nullifying any potential conflict of interest. After further discussion, the Commission requested additional information be acquired by Deputy Director Mayrose.

Item E Complaint # 2005-057 - Don L. Clarke vs. Peggy A Krauer

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 Griess and seconded by Bohrer that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Item F Complaint # 2005-058 - Don L. Clarke vs. Roger Lynn Koertner

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 Griess and seconded by Bohrer that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Item G Complaint # 2005-059 - Don L. Clarke vs. Joseph Valenti, JoAnn Grennan, Georgianna Vint, and Cynthia Lea Stovie

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 Griess and seconded by Bohrer that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Item H Complaint # 2005-060 - Charles W. Concannon vs. Mark A. Nichols and Beverly A Nichols

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 Poskochil that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Item I Complaint # 2005-063 - Robert C. Jenkins vs. Connie Rae Meyerring and James Michael Meyerring

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 Bohrer that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Item J Complaint # 2006-003 - Bruce A. Anderson vs. Jerry Thomas Vogel

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 Griess that the complaint be dismissed without prejudice. Motion carried with Bohrer, Grady, Griess, Poskochil, Shepard, and Gale voting aye, and with Johnson abstaining.

Item K Investigative Matter

Deputy Director Mayrose informed the commission that Staff had been alerted to certain trust account irregularities regarding a broker=s real estate trust account. The trust account at the present time was under review and being re-constructed by a Certified Public Accountant. Upon completion, this matter would be presented to the Commission as an investigative matter.

Item L Investigative Matter

Deputy Director Mayrose sought guidance from the Commission as to whether or not they would consider a Stipulation and Consent Order on Complaint #2006-006 providing for a Suspension of Respondent=s license with said suspension all served on probation to run parallel to the Court=s Order of Probation on the criminal matter. The Commission felt this matter should be set for hearing.

After discussion, a motion was made by Grady and seconded by Shepard to enter into the order as presented. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Director Tyrrell presented an exhibit which included correspondence regarding Mr. Dodenhof=s special appearance, Mr. Dodenhof=s salesperson application, information regarding Mr. Dodenhof=s criminal history and letters of reference. A copy of said exhibit is attached to and made a part of these minutes. Mr. Dodenhof was present.

After discussion, a motion was made by Poskochil and seconded by Griess to allow Mr. Dodenhof to sit for the salesperson examination after making proper application and to have a license issued upon passing. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Director Tyrrell presented an exhibit which included correspondence regarding Mr. Anderson=s special appearance, Mr. Anderson=s salesperson application, information regarding Mr. Anderson=s criminal history and letters of reference. A copy of said exhibit is attached to and made a part of these minutes. Mr. Anderson was present.

Mr. Anderson informed the Commission of his background, including the accounting degree he received from the University of Kearney (UNK). He currently is the vice-president for a telemarketing company and also does contract deliveries. Mr. Anderson explained to the Commission that a building owner wants him to manage the building and is aware of Mr. Anderson=s convictions, but would not give a reference. Mr. Anderson expressed his desire to get involved in property management. Chairperson Gale noted that the degree from UNK was not listed on his application. Mr. Anderson thought this might have been an oversight, but that he received a business administration degree in 1969 from UNK.

Commissioner Griess asked if Mr. Anderson was planning on going into commercial or residential property management. Mr. Anderson indicated that he planned on going into commercial property management, he also stated he will be 60 years old and does not want to deliver anymore. Commissioner Poskochil asked if he has a broker lined up for whom he will be working. Mr. Anderson stated that he is going to go for his brokers license and is already taking the courses. Commissioner Griess noted that he has applied for a salesperson=s license. Mr. Anderson agreed that he applied for the salesperson=s license and in 6 weeks will apply for the brokers license.

After discussion, a motion was made by Grady and seconded by Griess to allow Mr. Anderson to sit for the salesperson examination after making proper application and to have a license issued upon passing. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Director Tyrrell presented an exhibit of the Settlement Agreement. A copy of said exhibit is attached to and made a part of these minutes. Prior to discussion of this matter, Commissioner Griess and Commissioner Poskochil recused themselves, thereby nullifying any potential conflict of interest.

A motion was made by Johnson and seconded by Shepard to agree to terms that Mr. Zitek be given credit for the six hours of continuing education and the word Anot@ be stricken and the word Aagainst@ be changed to Atoward@ in paragraph 7. Motion carried with Bohrer, Grady, Johnson, Shepard, and Gale voting aye, and with Poskochil and Griess not participating or voting, having recused themselves, thereby nullifying any potential conflict of interest.

Deputy Director Hoffman quoted Dr. Larry Fabrey, Psychometrician for Applied Measurement Professionals (AMP) and our program manager, AYour 32-item state portion generates scores that are only moderately reliable; when used in combination with the passing point on the national portion, the level of confidence in the accuracy of the score is more certain. If the Commission decides to proceed in this direction, I would definitely advise lengthening the state portion to enhance reliability of the state scores.@ Dr. Fabrey suggests that it would take no less than 2 months to implement and will cost an additional $2.00 per examination. Deputy Director Hoffman suggested that perhaps this change could wait until the next Request For Proposal (RFP) which will be brought to the Commission this summer. The Examination RFP will be sent out this fall. This Commission will award the contract in either November or December this year to become effective July 1, 2007. Deputy Director Hoffman indicated that competition could reduce the cost if the Commission decided to make these changes through the RFP process.

Deputy Director Hoffman reported the second formula would be to put the Nebraska Real Estate License Law in a 9 to 12 hour continuing education course. The Commission could advise applicants to take this course via application packet and licensees could also take this as an AR@ course. Deputy Director Hoffman indicated that offering this course as continuing education would not take away from the 60 hour course requirement and not affect the foundation already laid. Commissioner Poskochil asked why it would be good to take it after receiving a license. Deputy Director Hoffman said that it could be suggested in the application packet and the schools could perhaps recommend taking this course prior to getting licensed in addition to the required 60 hours of pre-license education. Commissioner Poskochil noted that most applicants would take only what is required not continuing education. Commissioner Griess thought this should be learned prior to getting a license, and would be helpful in passing the examination. Commissioner Griess indicated that if the course is offered as continuing education, it would minimize the importance because of the expense to the applicants. Commissioner Griess noted that finance in real estate is becoming a specialty and the Finance course should not try to make a licensee an expert. Commissioner Poskochil indicated the licensees should know this subject prior to getting into the real estate business. Commissioner Poskochil indicated the need for 30 hours of Finance should be minimal since most consumers are already preapproved.

Deputy Director Hoffman agreed the Finance course could stand some updating, but didn=t think the hours could be minimized. Deputy Director Hoffman reported being told by educators that 30 hours are needed for the Finance course. Deputy Director Hoffman stated that students can take any two pre-license education courses, most students take Principles and Practices, which is the foundation, however, by law they don=t have to take a certain course such as Sales and Brokerage but it should gain popularity if it has Nebraska-specific material in it.

Chairperson Gale asked if it is reasonable to embed this material into the Sales and Brokerage course. Ms. Geschwender indicated that it could happen, but in every pre-license course the instructors try to draw in the Nebraska Law but they cannot teach the detail needed based on how the courses are currently outlined. Commissioner Griess asked if Ms. Geschwender had a prep course she offered. Ms. Geschwender indicated that the prep course is offered as a two day course, one day spent on Nebraska License Act, and one day on the National portion of the examination. Ms. Geschwender indicated that a 3 hour update to continuing education cannot go into depth. Deputy Director Hoffman noted Mr. Faubian indicated that it is a good idea to have a continuing education course for licensees so they can read through the License Laws and Rules and Regulations once a year. Perry Neilan, from the Nebraska REALTORS7 Association, indicated the need for additional emphasis on Nebraska Law and heard the Finance course needed to be updated, but License Law may be more appropriate elsewhere. Mr Neilan also indicated that while Deputy Director Hoffman is still researching, he did not think the option should be to learn the material later. Deputy Director Hoffman indicated that information on this course could be put in the application packet, and could be endorsed to take it before getting a license as well. Deputy Director Hoffman noted that continuing education can be taken before getting a license not just after you get a license. Mr. Neilan thought it would be alright to have the material as continuing education, but pre-license education is more obvious for this type of material.

Deputy Director Hoffman discussed Dr. Larry Fabrey=s reservations about being able to retake only the section of the examination that was failed. Dr. Fabrey believes, Ait could lead to a higher probability of an incompetent candidate to obtain a license.@ Dr. Fabrey believes if the Commission addresses the issues on Nebraska License Law and changing the amount of questions on the examination, that allowing candidates to carry forward a passing score would not be necessary. Chairperson Gale asked if other states allow candidates to carry forward a passing score and split-up the examination. Deputy Director Hoffman indicated this method is practiced. Deputy Director Hoffman also indicated that some jurisdictions think this method is fine, while others do not. Deputy Director stated that in other jurisdictions if candidates do not pass the examination within one or two years, the candidates have to retake the pre-license education, which is not currently done in Nebraska. Deputy Director Hoffman indicated that Nebraska=s performance is in the top two percent of AMP=s clientele. Deputy Director Hoffman indicated that out of AMP=s clients, Nebraska rates very high with a passing score of 75%. Deputy Director Hoffman was told by Dr. Fabrey that some jurisdictions have a lower passing score. Commissioner Johnson indicated he had agents who do well in one area of the examination but not the other. Deputy Director Hoffman reviewed the failure statistics and reported that more candidates fail both sides. Commissioner Griess felt that candidates do not know what is being asked, perhaps they have an understanding of the questions, but they may not understand the wording. Commissioner Griess also felt that some people who would be good sales agents just give up. Chairperson Gale suggested an option to require the candidate to pass the Nebraska portion of the examination and if the candidate would fail the Nebraska portion of the examination they would have to retake it all, but if the candidate passes the Nebraska portion and fails the National portion, then the National portion only needs to be retaken. Director Tyrrell indicated that may not be possible since it is considered an occupational licensing examination, but perhaps AMP could answer that question. Commissioner Griess suggested if the candidate came within three or five points of passing they could only take that portion. Director Tyrrell indicated again that this may not be possible since it is considered an occupational licensing examination. Deputy Director Hoffman added that the State portion of the examination is a whole and so is the National portion. Chairperson Gale indicated that in this case it would be better to treat the State portion and National portion of the examination as two halves. Deputy Director Hoffman again stated that Dr. Fabrey did not recommend changing to this method.

Director Tyrrell noted that the Commission=s bill, LB 819, went forward. Director Tyrrell indicated that the Association=s bill LB 868 was unable to be placed on the Consent Calendar. Walt Radcliffe, the Association=s lobbyist, had indicated they may try to amend LB 868 into LB 819. If however, it appeared that such a move would negatively impact LB 819's passage, the amendment would be withdrawn. Perre Neilan concurred with the Director. Director Tyrrell indicated he would cooperate with this if there was no objection by the Commission. There was no objection.

A motion was made by Shepard and seconded by Grady to authorize Director Tyrrell to enter into a contract with Amie C. Martinez, the appointed Special Assistant Attorney General. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

At 1:30 p.m., there being no further business to come before the Commission, a motion was made by Poskochil and seconded by Griess that the meeting adjourn. Motion carried with Bohrer, Grady, Griess, Johnson, Poskochil, Shepard, and Gale voting aye.

Perre Neilan, Nebraska REALTORS7 Association, Lincoln