Committee approves bill to codify interstate real estate education reciprocity standards

The Senate Licensing and Occupations Committee reported Senate Bill 127 favorably after testimony from real-estate education providers and discussion among senators about compact agreements and effects on military spouses and border communities.

Sponsor Senator Shelley Funke Frohmeyer introduced the bill and brought representatives from Perry Real Estate College. Dominic Rossi, the college’s CEO, and John Talarigo, its general counsel, told the committee that termination of bilateral reciprocity agreements by other states left “hundreds” of Kentucky students and education providers without a stable pathway for licensure. They asked the legislature to codify the standards historically contained in bilateral agreements so Kentucky’s requirements are clear and cannot be unilaterally revoked by other jurisdictions.

Testimony described the bill as codifying the educational portion of reciprocity — for example, preserving the requirement that out-of-state licensees complete Kentucky-specific instruction (roughly the state’s general agency and contracts topics and state-law elements) before being licensed in Kentucky. Supporters said codifying the standards would provide stability for military spouses and others who move across state lines and would not prevent future interstate compacts or bilateral agreements.

Committee members asked whether the change would also make it easier for Kentucky licensees to practice in other states; witnesses and the sponsor said the bill standardizes Kentucky’s side of the process but cannot compel other states to accept Kentucky licensees. Senator Higdon and others suggested a compact remains preferable for broader mutual recognition, but witnesses said interstate compacts have proven difficult to negotiate because states vary in licensing content and terminology.

During the committee vote, several members recorded aye votes and the chair announced the bill passed the committee with favorable expression. Senators who explicitly recorded votes included Senator Mays Bledsoe (aye), Senator Nunn (aye), Senator Namus (aye) and Chair Rocky Adams (aye); Senators Berg and Meredith recorded no votes during the roll call. The sponsor said the bill would allow the Kentucky Real Estate Commission to have clear, codified education standards and make it easier for commission staff to negotiate future bilateral agreements.

Why it matters: By codifying a set of education standards for out-of-state licensees, the bill aims to prevent abrupt loss of reciprocity pathways if another state withdraws a bilateral agreement. Backers framed the measure as stabilizing the real estate workforce in border areas and helping military families who relocate to Kentucky. Opponents cautioned that codifying only the Kentucky side could reduce the state’s leverage in future reciprocity negotiations and urged further input from local brokerages and the Kentucky Realtors.

Votes at a glance: Committee reported Senate Bill 127 favorably. During the roll call, Senators Mays Bledsoe, Namus, Nunn and Chair Rocky Adams recorded aye votes; Senators Berg and Meredith recorded no votes. Several members said they wanted more outreach to local realtors before final action in the full legislature.