HB 1255 Summary

• Establishes new definitions for "broker company" (a licensed business entity in any form including sole proprietorship, partnership, LLC, or corporation) and "managing broker" (an individual broker whom the commission holds responsible for licensees' actions).

• Requires individual brokers to associate with a broker company and managing broker; brokers may only be associated with one managing broker, must advertise only under the managing broker's name, and cannot maintain separate offices.

• Mandates individuals become managing brokers only after holding an active broker's license for at least 2 years and completing 24 hours of approved broker management courses; individuals who were designated brokers on June 30, 2014 became managing brokers retroactively on July 1, 2014.

• Reduces broker continuing education requirements from 12 hours per year to 8 hours per year, but maintains 36 hours per three-year cycle; managing brokers must complete at least 4 hours on business and management skills.

• Expands "in-house agency relationship" definition to clarify that individual licensees represent only their specific client within the same broker company with no imputation of knowledge between clients, broker company, managing broker, and licensees.