Tennessee SB 234: Consumer Protection - As introduced, limits the number of times that a real estate developer, business entity, or individual working on behalf of the developer or business entity is permitted to contact a property owner to make an unsolicited offer to buy the property owner's property; allows a property owner who believes a developer has violated the limitation to submit a complaint to the consumer affairs division in the office of the attorney general; adds additional requirements and penalties for a violation. - Amends TCA Title 40, Chapter 33, Part 2; Title 47 and Title 66.

Bill Text

Senate Commerce and Labor 1

Amendment No. 1 to SB0234

Bailey
Signature of Sponsor

AMEND Senate Bill No. 234* House Bill No. 528

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by deleting all language after the enacting clause and substituting:
SECTION 1. Tennessee Code Annotated, Title 47, Chapter 18, is amended by adding
the following as a new part:
47-18-5601.
As used in this part:
(1) "Affiliate" means any person controlling, controlled by, or under
common control with such person;
(2) "Division" means the division of consumer affairs in the office of the
attorney general and reporter; and
(3) "Person" means a natural person, individual, governmental agency,
partnership, corporation, trust, estate, incorporated or unincorporated
association, and any other legal or commercial entity however organized,
including any affiliate.
47-18-5602.
(a)
(1) A person shall not contact a property owner more than one (1) time in
a calendar year in connection with an unsolicited request to buy the property
owner's real property.
(2) The limitation described in subdivision (a)(1) applies to contact made
through a telephone call, text message, email, mail, facsimile transmission, or
another form of contact.

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(b) When a person contacts a property owner in connection with an unsolicited
request to buy the property owner's real property, prior to making the solicitation, the
person shall provide to the property owner:
(1) The person's legal name;
(2) The address from which the person operates;
(3) A telephone number at which the person can be contacted; and
(4) An email address at which the person can be contacted.
47-18-5603.
(a) If a property owner believes a person has violated § 47-18-5602, then the
property owner may submit a complaint to the division. The division shall:
(1) Begin reviewing a complaint submitted pursuant to this subsection (a)
within twenty (20) business days from the date the complaint is submitted;
(2) Send a written notice to the property owner that the division is
reviewing the complaint; and
(3) Send a written notice to the property owner upon completion of the
review describing the findings of the review, including whether the individual who
contacted the property owner is a licensed real estate agent, and the actions
taken, if any, as a result of the findings.
(b)
(1) With regard to alleged violations of this part, the attorney general and
reporter has all of the investigative and enforcement authority that the attorney
general and reporter has under part 1 of this chapter. The attorney general and
reporter may institute a proceeding involving alleged violations of this part in
Davidson County circuit or chancery court or another venue otherwise permitted
by law.
(2) The attorney general and reporter shall require the person being
investigated pursuant to a complaint submitted in accordance with subsection (a)

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to disclose any affiliates of the person that have sent an unsolicited request to
buy the property owner's real property.
(3) If a court finds that a person violated § 47-18-5602, then the court
shall assess a fine of up to one thousand five hundred dollars ($1,500) per
violation. The court may also order reimbursement to this state for the
reasonable costs and expenses of investigation and prosecution of actions under
this part, including attorneys' fees.
(4) For purposes of determining how many violations a person has
committed, each contact beyond the permitted number under § 47-18-5602 by a
person, including any affiliate of the person, is a separate violation.
47-18-5604.
This part does not apply to an individual who is licensed as a real estate agent in
the state in which the real property about which the individual contacted the property
owner is located.
SECTION 2. This act takes effect July 1, 2023, the public welfare requiring it, and
applies to prohibited conduct occurring on or after that date.