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Oregon Realtors back bill to define managing principal broker and tighten supervisory duties for brokerages
Summary
House Bill 3137 would create a statutory managing principal broker designation, spell out supervisory duties and require additional continuing education and proficiency assessment for real estate licensees; proponents say changes update licensing law to match modern brokerage practices and strengthen consumer protections.
Committee members heard Feb. 5 testimony on House Bill 3137, a proposal from Oregon Realtors that would add a statutory designation for a managing principal broker, clarify supervisory duties within brokerage firms, strengthen continuing-education requirements, and add a proficiency assessment for license renewals.
Representative Vicki "Brie" Siverson introduced the concept, and Rick Harris, past president of Oregon Association of Realtors and a long-time principal broker, testified in support. "Creating a managing principal broker designation recognizes that firms often have many principal brokers but one person ultimately responsible for administration," Harris said. He described provisions that would require succession planning, two hours of fair-housing training and two hours on new Oregon rule and law each licensing renewal period, definitions for real-estate teams, and a requirement that a licensee pass a proficiency assessment before their first renewal.
Jeremy Rogers, general counsel and director of government affairs for Oregon Realtors, and other industry witnesses said the changes are meant to modernize statute to reflect current practice, increase oversight of brokers and firms, and enhance consumer protection. The sponsor and witnesses said the measure would not change the core licensing framework but would make lines of supervisory responsibility clearer.
Representative Gamba asked whether the bill changes the underlying liability framework for brokers. Rogers replied the change primarily clarifies who is the ultimate responsible party (the managing principal broker) in addition to existing principal-broker responsibilities; it does not create a new license type. "This creates an ultimate buck-stops-here in addition to maintaining the responsibilities that principal brokers who are not the managing ones had," Rogers said.
The committee had no further substantive questions and closed testimony with an announcement that members would study the proposal further. No vote was taken.
Why it matters: The bill would put the commonly used industry role of a managing principal broker into statute and add specific supervisory duties and continuing-education requirements intended to improve licensee oversight and consumer protections without creating a new license category.
