TREC counsel outlines bills affecting licenses and staff details proactive compliance sweep of inactive firms
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Summary
Program counsel updated the commission on three bills under review that could change licensing and notice rules; staff also reported a proactive audit that flagged many firms with principal-broker issues and prompted an uptick in legally opened cases.
Program counsel provided a legislative and enforcement update at the Tennessee Real Estate Commission’s April meeting, summarizing bills the commission is tracking and explaining a recent proactive enforcement effort aimed at firms with missing or expired principal brokers.
Counsel said the commission is tracking three primary measures: SB 1786/HB 1916 (would remove the separate designated-agent license requirement for vacation lodging services and the related eight hours of continuing education), HB 1677/SB 1692 (the Military Families Licensing Recognition Act, which would extend some reciprocal licensure recognition to military members’ dependents), and SB 2224/HB 2530 (an administration bill that would expand post-licensure revocation grounds for certain violent or force-related convictions, remove a required zoning-letter submission for firm filings, and permit electronic notice in place of mandatory first-class mail for some hearings and E&O suspension notices). Matlock told commissioners those bills were currently placed "behind the budget" and not moving at the time of the meeting, but cautioned that action could resume.
On enforcement, staff described an audit of the commission’s firm roster that identified numerous firms where the listed principal broker was deceased, expired or otherwise noncompliant. Staff said they reviewed roughly 4,400 firms and are opening administrative cases and sending 10-day letters to firms that have not rectified their records. Commissioners asked about notification to agents at those firms, the possibility of delegating clear-cut cases to staff, and whether the meeting cadence should change to accommodate heavier legal caseloads. Staff said every agent in a closed firm is notified and suggested quarterly or every-other-month reporting could reduce burden; commissioners asked staff to return in June with a proposal for organizing the legal report and options for case processing.
Chair Diaz and several commissioners praised staff for the proactive approach while expressing concern about workload and the volume of cases placed on the legal report. Counsel said the department is discussing additional resources to handle the increased caseload.
Staff indicated the commission would get a fuller legislative update in June and that outreach and system improvements (CORE/regulatory-access tools) are part of ongoing compliance work.
