The Tennessee Real Estate Commission voted unanimously to delegate routine advertising-violation cases to administrative law judge (ALJ)-only proceedings and to give its executive director, Miss Baker, authority to grant the initial 30-day extension for firms that temporarily lack a principal broker and to close firms that do not appoint a replacement within the allotted time.

Commissioners made the decisions during the commission’s legal report session in Jackson. The ALJ delegation was offered to reduce the volume of matters that reach a formal hearing before the commission. The executive-director delegations are intended to streamline responses when a principal broker dies, becomes incapacitated or otherwise leaves a firm and the firm needs short-term relief to keep operating.

Counsel told commissioners the ALJ-only category would be expanded to include advertising cases because “the advertising rules are pretty specific and clear cut” and therefore suitable for an ALJ to adjudicate without a full commission hearing. Commissioners agreed that sending those cases to an ALJ-only proceeding would not absolve respondents of liability; it would simply remove the requirement that the commission itself hold the initial hearing.

On firm operations, the commission discussed rule 1260-202-0.38, which addresses notification and temporary operation after the death or extended absence of a principal broker. Counsel summarized that the rule requires notification to the commission within 10 days and authorizes the commission to permit a firm to operate up to 30 days, with the executive director authorized to grant an additional 30 days in appropriate circumstances. Commissioners said the commission’s new meeting cadence made it desirable to delegate the initial 30-day decision to the executive director so firms would not be delayed waiting for the next scheduled meeting.

Commissioner Smith (maker) and Commissioner Moffat (seconder) moved and seconded the motion to delegate advertising cases to ALJ-only proceedings; the motion carried unanimously. Commissioners later approved two separate motions — to delegate to Executive Director Miss Baker the authority to grant the first 30-day extension for firms without a principal broker and to delegate authority to close firms who do not appoint a replacement principal broker within the allotted time or who fail to respond — each carried unanimously.

Why it matters: the changes are procedural but will affect how quickly routine advertising violations and short-term firm staffing disruptions are handled. Licensees who receive notices for advertising violations will now receive ALJ-only proceedings in many cases instead of initial commission hearings. Firms experiencing the sudden loss or incapacity of a principal broker will be able to apply to the executive director for the initial 30-day extension rather than awaiting the next commission meeting.

The commission moved on to its monthly legal report after the votes.