Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Local Government topic
No spam. Unsubscribe anytime.
Committee approves amended bill allowing municipalities to use exclusive real-estate listings with notice and fair process
Summary
The committee amended and passed House Bill 1401 to permit political subdivisions to enter exclusive listing agreements for real property if the entity posts notice and follows an objective, public selection process; the committee approved the measure on a roll-call voice vote.
The House Industry, Business and Labor Committee approved House Bill 1401 as amended, a measure that would allow cities and other political subdivisions to enter exclusive real-estate listing agreements provided the seller posts public notice, follows an objective selection process, and requires disclosure of commission-sharing arrangements.
Representative Koppelman, who carried the amendment developed with the League of Cities and realtor representatives, said the change lets local governments engage a designated broker while protecting public notice and competition. The amendment requires a municipality to post a notice on its website for at least 14 days inviting real-estate professionals to apply, sets objective selection criteria, and includes language on equitable sharing of commissions to comply with federal case law affecting brokerage compensation.
Committee discussion focused on ensuring transparency and competition while allowing smaller jurisdictions that may have one local broker to participate. Representative Volmer asked whether a jurisdiction with a single local agent must solicit interest; the sponsor said the statute requires the public posting but does not force a municipality to find multiple bidders if none express interest.
The committee adopted the amendment on a voice vote and then passed the bill as amended. The committee roll call recorded unanimous 'yes' votes from members present. Representative Greenberg agreed to carry the bill forward. No fiscal note or executive testimony was recorded in the hearing minutes.
The amended bill is intended to give local governments an additional tool for marketing surplus or other municipal property while preserving an open and documented selection process for brokers.
