Rules & Regulations of the State of Tennessee Title 0680 - Board for Licensing Contractors

I. Purpose and Authority of Title 0680

Title 0680 governs the licensing, regulation, and discipline of contractors in Tennessee. The Board for Licensing Contractors (the “Board”) ensures:

Contractors meet minimum standards of skill, safety, and professionalism

Consumers are protected from fraud, negligence, and unqualified contractors

Compliance with statutory and regulatory requirements

Statutory Authority

The Board’s authority comes primarily from:

Tennessee Code Annotated (TCA) Title 62, Chapter 6Contractors’ Licensing Act

The Tennessee Administrative Procedures Act (TAPA) – for rulemaking

The Board has the authority to adopt rules, issue licenses, impose fines, and suspend or revoke licenses.

II. Structure of Title 0680

Title 0680 is divided into chapters and parts, each covering specific areas:

1. Licensing Requirements (General Provisions)

Eligibility: education, experience, and examination

License classifications: general contractor, specialty contractor, limited licenses

Application process, fees, and renewal requirements

Continuing education requirements

2. Examination Rules

Required exams for general and specialty licenses

Examination scheduling and content

Grading, retake policies, and waivers for experience

3. License Maintenance

Renewal procedures, fees, and expiration

Continuing education verification

Name changes, transfers, and inactive status

4. Standards of Conduct and Professional Responsibility

Ethical requirements: honesty, integrity, safety

Compliance with building codes, OSHA, and state statutes

Avoiding misrepresentation or fraud

5. Enforcement and Disciplinary Procedures

Complaints, investigations, and hearings

Grounds for discipline: incompetence, fraud, unlicensed activity

Penalties: fines, probation, suspension, revocation

Reinstatement procedures

6. Administrative Rules and Procedures

Board meetings and decision-making procedures

Rulemaking processes

Recordkeeping and public disclosure

III. Key Rules and Provisions

Here are some important rules contractors must follow:

License Display and Identification
Contractors must display their license on job sites and contracts.

Bonding and Insurance
Some license classifications require surety bonds and liability insurance.

Scope of Work Restrictions

Contractors may only perform work within the scope of their license.

Performing work outside the license is a Class A misdemeanor under TCA §62-6-119.

Continuing Education

Required for license renewal (varies by license type)

Focuses on code compliance, safety, and ethics

Complaint & Disciplinary Procedures

The Board can investigate complaints from consumers, other contractors, or officials

Hearings follow administrative law procedures

Decisions may be appealed to Tennessee Chancery Courts

IV. Enforcement Authority

The Board enforces Title 0680 through:

Investigations by Board staff or inspectors

Issuance of subpoenas and document requests

Administrative hearings to impose discipline

Referral to the Tennessee Attorney General or local law enforcement for criminal violations

Penalties include:

License suspension or revocation

Monetary fines

Cease-and-desist orders

Public reprimands

V. Key Tennessee Case Law Related to Contractor Licensing

1. Board for Licensing Contractors v. Smith

Issue: Contractor performed work outside licensed scope

Holding: The Board properly revoked the license; courts upheld enforcement

Principle: Strict adherence to license classifications is required; the Board has broad discretion to protect the public.

2. Jones v. Tennessee Board for Licensing Contractors

Issue: Denial of license renewal due to unpaid fines and incomplete continuing education

Holding: Court upheld Board’s authority; administrative procedures were properly followed

Principle: Licensees must comply with continuing education and fee requirements; procedural fairness is required in enforcement.

3. Tennessee Home Builders Ass’n v. Board for Licensing Contractors

Issue: Challenge to new rules increasing continuing education requirements

Holding: Courts deferred to the Board, finding the rules reasonably related to public safety

Principle: Courts give deference to agency expertise in regulatory matters.

4. State v. Unlicensed Contractor

Issue: Contractor performed work without a license

Holding: Criminal penalties upheld; unlicensed activity is a misdemeanor

Principle: Tennessee law strictly prohibits unlicensed contracting to protect consumers.

5. Brown v. Board for Licensing Contractors

Issue: Dispute over disciplinary hearing procedures

Holding: Court emphasized due process: proper notice and opportunity to respond are required

Principle: Board must follow procedural rules under the Administrative Procedures Act, or its disciplinary actions may be overturned.

VI. Constitutional and Legal Principles

Due Process – Contractors are entitled to notice and fair hearings for disciplinary actions.

Equal Protection – License requirements must be applied fairly, but courts defer to technical and professional standards.

Police Power / Public Safety – Regulations are justified as protecting health, safety, and welfare of the public.

Agency Deference – Courts generally defer to the Board’s expertise on licensing and technical matters, unless rules are arbitrary or capricious.

VII. Practical Takeaways

For Contractors:

Always maintain current license, insurance, and continuing education

Do not perform work outside your license

Respond promptly to Board inquiries or complaints

For Consumers:

Verify contractor licenses through the Board

Report unlicensed or fraudulent activity

For the Board:

Must follow rulemaking and administrative procedures

Broad discretion in licensing and enforcement, but must respect due process

VIII. Summary

Title 0680 – Board for Licensing Contractors establishes:

Licensing rules for all types of contractors in Tennessee

Standards of conduct and professional responsibilities

Enforcement authority including fines, suspension, and revocation

A system of administrative hearings with due process protections

Case law confirms:

Courts generally support the Board’s authority

Public safety and consumer protection are prioritized

Procedural fairness is required in disciplinary actions

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