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SB 1786

Real Estate Agents and Brokers - As introduced, exempts an affiliate broker or broker licensed under the Tennessee Real Estate Broker License Act from the additional licensure and classroom hours in training programs requirements for a vacation lodging service firm's designated agent; requires that vacation lodging services be under the supervision of the principal broker of an affiliate broker, broker, or firm. - Amends TCA Title 62, Chapter 13.

114th Regular Session (2025-2026)

Allows exempt real estate brokers to handle vacation lodging services without extra licensure or classroom hours, but requires supervision by a principal broker.

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Bill Summary · SB 1786

Summary: SB 1786 (as amended) / HB 1916

Jurisdiction: Tennessee

Session: 114

Topic: Real estate licensing — vacation lodging service designation

1) Main purpose and intent

  • The bill exempts a real estate affiliate broker or licensed broker from the additional licensure and classroom-hour requirements that apply to a designated agent for a vacation lodging service firm.
  • It also imposes a supervision requirement, mandating that vacation lodging services performed by an exempt affiliate broker or broker be under the supervision of the principal broker of the affiliate broker, broker, or firm.
  • Overall effect: streamline certain licensing obligations for brokers handling vacation lodging services, while ensuring supervisory oversight.

2) Key provisions and changes

  • Amends Tenn. Code Ann. § 62-13-104(b)(3)(B)(iv) (new subdivision):
    • An affiliate broker or broker licensed under this chapter is not required to obtain the additional licensure or complete the classroom hours in training programs described in subdivisions (b)(3)(B)(i) and (ii) for the vacation lodging designation.
    • Condition: any vacation lodging services performed by such an affiliate broker or broker without the additional licensure must be under the supervision of the principal broker of any affiliate broker or broker.
  • Amends scope of licensure requirement timing (technical change in § 62-13-104(b)(3)(B)(i) through (iii) via Amendment 1, with cross-reference to existing application requirements).
  • Effective date: Upon becoming law (no separate delayed date specified).

3) Who or what would be affected

  • Affected parties:
    • Real estate affiliate brokers and licensed brokers operating in Tennessee.
    • Vacation lodging service firms/designated agents who would otherwise require additional licensure and classroom-hours.
  • Supervisory structure:
    • Vacation lodging services performed by exempt brokers must be supervised by the principal broker of the affiliate/broker/firm.

4) Procedural and timeline aspects

  • Legislative path:
    • As amended, SB 1786 is linked to HB 1916.
    • The bill has advanced through committee and floor action in both chambers (citations show passage in Senate and amendments in House; result indicates eventual cross-chamber concurrence).
  • Fiscal impact (as stated in fiscal notes):
    • Estimated recurring state revenue decrease to the Real Estate Commission Fund: $9,030 in FY26-27 and subsequent years.
    • Breakdown:
      • License application fee for initial vacation lodging licensure: $90 per new licensee (7 new vacation lodging agents per year estimated from growth).
      • Renewal fee: $75 every two years; 50% of the current 224 vacation lodging licensees would renew biennially, as a proxy for ongoing activity.
      • Resulting declines:
      • $630 per year from exemption of licensure (7 new licenses x $90).
      • $8,400 per year from reduced renewal fees (50% of 224 x $75).
    • No significant state/local expenditure savings or costs beyond the revenue impact; administration of licensure changes is not expected to create major new costs.
  • Oversight/financing:
    • Regulatory boards are expected to be self-sustaining; the bill references existing surplus/reserves for the Tennessee Real Estate Commission.

5) Practical implications and considerations

  • Administrative:
    • Agencies administering real estate licenses and vacation lodging designations would need to adjust licensing procedures to reflect the new exemption.
    • Supervisory requirements remain, ensuring fiduciary and managerial oversight for vacation lodging activities conducted by exempt brokers.
  • Market impact:
    • Potentially lower barrier to entry for brokers engaging in vacation lodging services.
    • A targeted reduction in licensure-related training requirements could affect professional development timelines for a subset of brokers.

6) Bottom line

SB 1786 (as amended) modestly relaxes licensure/training requirements for real estate affiliate brokers and brokers involved with vacation lodging services, while mandating supervision by a principal broker. The measure is projected to reduce state revenue to the Real Estate Commission Fund slightly beginning in FY26-27, with no significant anticipated impact on commerce.

Compiled from official sources — confirm details with the bill’s official record.

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