66-32-121 - Powers and duties of commission. - Tennessee Statutes

66-32-121. Powers and duties of commission.

(a)  The commission may adopt, amend, and repeal rules, regulations and issue orders consistent with, and in furtherance of the objectives of this part.

(b)  The commission may prescribe forms and procedures for submitting information to the commission.

(c)  The commission may accept grants-in-aid from any governmental source and may contract with agencies charged with similar functions in this or other jurisdictions, in furtherance of the objectives of this part.

(d)  The commission may cooperate with agencies performing similar functions in this and other jurisdictions to develop uniform filing procedures and forms, uniform disclosure standards, and uniform administrative practices, and may develop information that may be useful in the discharge of the commission's duties.

(e)  The commission may initiate private investigations within or outside this state.

(f)  The commission shall have the power to revoke, or suspend the real estate license of a sales agent, or the registration of a time-share project, or to otherwise appropriately discipline the sales agent, or fine the developer pursuant to the provisions of § 56-1-308, if, after notice and hearing, any of the following conditions exist:

     (1)  Any representation in any document or information filed with the commission is false or misleading; or

     (2)  Any developer or agent of a developer has:

          (A)  Engaged in or is engaging in any unlawful act or practice;

          (B)  Disseminated or caused to be disseminated orally, or in writing, any false or misleading promotional materials in connection with a time-share program;

          (C)  Concealed, diverted, or disposed of any funds or assets of any person in a manner impairing rights of purchasers of time-share intervals in the time-share program;

          (D)  Failed to perform any stipulation or agreement made to induce the commission to issue an order relating to that time-share program;

          (E)  Otherwise violated any provision of this part or the commission's rules, regulations, or orders;

          (F)  Makes any willful or negligent misrepresentation, or any willful or negligent omission of material fact about any time-share or time-share project, or exchange program;

          (G)  Makes any false promises of a character likely to influence, persuade or induce;

          (H)  Engages in any other conduct which constitutes improper, fraudulent or dishonest dealing; or

          (I)  Fails to promptly account for any funds held in trust, or who fails to display all records, books and accounts of such funds to the commission upon demand as provided for in this part, and the rules and regulations.

(g)  The commission may issue a cease and desist order if the developer has not registered the time-share program as required by this part.

(h)  The commission, after notice and hearing, may issue an order revoking the registration of a time-share program upon determination that a developer or agent of developer has failed to comply with a notice of suspension issued by the commission affecting the time-share program.

(i)  The commission may reject an application for registration if the commission finds that:

     (1)  The developer or any entity or individual which composes the developer, or any officer or director of the developer does not possess a history of honesty, truthfulness, and fair dealing. Factors to be used in making such determination shall include whether the developer or any entity or individual which composes the developer, or any officer or director of the developer has:

          (A)  Been convicted of, or has pleaded nolo contendere to, any crime involving an act of fraud or dishonesty;

          (B)  Consented to or suffered a judgment in any civil or administrative action based upon conduct involving an act of fraud or dishonesty;

          (C)  Consented to or suffered the suspension or revocation of any professional, occupational, or vocational license based upon conduct involving an act of fraud or dishonesty;

          (D)  Knowingly made or caused to be made in any application or report filed with the commission, or in any proceeding before the commission, any written or oral statement which was at the time, and in light of the circumstances under which it was made, false or misleading with respect to material fact;

          (E)  Willfully omitted a material fact with respect to information furnished or requested in connection with an application;

          (F)  Willfully committed any violation of, or has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person, of any provision of state law or rule; or

          (G)  Been involved in unlicensed activity; or

     (2)  The commission may reject an application for registration if the commission finds that the developer or any entity or individual which composes the developer, or any officer or director of the developer does not possess a history of financial integrity. Factors to be used in making such determination shall include whether the developer or any entity or individual which composes the developer, or any officer or director of the developer:

          (A)  Has been placed in receivership or conservatorship during the previous ten (10) years;

          (B)  Has filed for bankruptcy within the previous ten (10) years; or

          (C)  Is liable for amounts of debt which would create excessive risks of default.

[Acts 1981, ch. 372, § 22; T.C.A., § 64-3222; Acts 1985, ch. 98, §§ 5, 6; 1988, ch. 482, § 1.]