Senate committee rejects bill creating broker exemption for property managers

A proposal to create a licensing exemption aimed at recognizing property management as a distinct profession failed after the Senate Insurance & Commerce Committee questioned how key protections would be enforced.

Daniel Brown introduced the measure and a string of witnesses, including Michael Ford, a West Memphis realtor with 43 years in the business, warned that the bill contains ‘‘minimal protections’’ and does not specify who would verify experience, national certification, felony disqualifications or the required bond. Ford said, “there is no one to ensure or monitor these things are in place.”

Jennifer Lester, chief operating officer of Moses Tucker Partners and vice president of the Building Owners and Managers Association of Greater Little Rock, told senators the bill affects more than residential multifamily housing and would apply to commercial office, industrial and medical facilities that house large state employers and Fortune 500 tenants. Lester also said she had successfully used the real estate commission’s waiver process in the past, describing it as a practicable path in some cases.

Doyle Yates, who identified himself from Fayetteville, described how the real estate commission’s waiver for broker experience operates in practice and said that, in his case, he was still required to take the broker exam. Yates stressed the commission’s review of claimed experience is subjective: applicants must show they were ‘‘involved in those transactions’’ in a way the commission can document.

During committee discussion senators repeatedly pressed for clarity about enforcement. Senator Murdock asked who would ‘‘police’’ bond requirements and whether felony disqualifications would actually be verified; witnesses and committee members did not point to a single agency that would perform continuous verification.

After debate, Senator Johnson moved to ‘‘do pass’’ and the motion was seconded; the committee recorded voice votes and the chair announced, “Your bill has failed.” Senators on both sides said they appreciated the testimony and acknowledged the issue raises questions about where to draw lines between sales and property‑management disciplines.

The committee did not adopt amendments to add explicit enforcement or verification mechanisms before the vote. With the defeat, the measure will not advance out of this committee in its current form.

The committee recessed for floor business and planned to resume later in the day to consider additional bills.