Legislative Issues

2016 Legislation and Rules Updates

Public Chapter 0587

Public Contracts – Prohibits the state or any local government from requiring a company bidding or contracting to provide services on a public construction project to employ individuals who reside within the jurisdiction of the state or local government or who are within a specific income range, unless otherwise required by federal law. For more detailed information click HERE.

Public Chapter 0816

Workers Compensation – Revises various provisions governing payments for permanent partial disabilities; revises other provisions of the workers’ compensation law. For more detailed information click on the link above. For more detailed information click HERE.

Public Chapter 1007

Water Pollution – Prohibits any NPDES permit that is issued to a municipal separate storm sewer system (“MS4”) administrator in this state from imposing post-construction stormwater requirements, except to the extent necessary to comply with the minimum requirements of federal law; prohibits the state from requiring any entity that administers a MS4 under an NPDES permit to impose control measures for post-construction stormwater that exceed the minimum requirements of federal law; enacts other related provisions. For more detailed information click HERE.

Public Chapter 1056

Workers Compensation – Revises various workers’ compensation and drug-free workplace provisions. For more detailed information click HERE.

2015 Legislation and Rules Updates

Public Chapter 209

This bill revises provisions governing prohibited conduct for which the state board for licensing contractors may impose a penalty and revises other penalty-related provisions.

This bill expands the director’s authority so that the director may also issue a citation against a person:

(1) Exceeding the monetary limitation on the person’s contractor’s license; or
(2) Acting in the capacity of or engaging in the business of a contractor in a classification in which the person is not licensed by the board, notwithstanding the person’s licensure to perform such services in another classification.

This bill increases both of the above maximum civil penalties to $1,000.

Public Chapter 500

This bill creates the “Go Build Tennessee Program” to promote the development of a comprehensive statewide program designed to increase career opportunities for secondary and postsecondary students in the construction industry.

Public Chapter 68

This bill specifies that the prevailing wage rate is only applicable to public highway projects and is not required for privately owned or maintained highways, roads, and streets.

2014 Legislation and Rules Updates

Public Chapter No. 528, amends Tenn. Code Ann. § 62-6-111, by providing a means to prevent licenses being issued in the same name of an existing licensee. In addition, a license cannot be issued in a name so similar to another licensee if it is likely to cause confusion. However, the law allows granting a license to those having an exclusive right to use the name as a registered trademark, such as a licensed franchise. This law became effective on March 12, 2014.

Public Chapter No. 644, amends Tenn. Code Ann. § 62-6-119, relative to the bid document requirements. The law did not affect the information currently required to be listed. Therefore, the name, license number, expiration date and license classification of the prime contractor, as well as their subcontractors for electrical, plumbing, HVAC, geothermal and masonry must continue to be listed. However, the awarding authority now has forty-eight (48) hours, excluding weekends and state-recognized holidays, to have corrections made to any typographical errors or omissions found, such as the spelling of the bidder’s names or transposed license numbers. This law will become effective on July 1, 2014.

Public Chapter No. 355, amends Tenn. Code Ann. §§ 62-6-102, 103 and 605, relative to licensing requirements. This change specifically requires a contractor to have a contractor’s license even if the contractor is working as a subcontractor when performing a roofing project where the total cost of the project is $25,000.00 or more. Acceptable license classifications to bid roofing projects would be as follows: BC (residential, commercial and industrial); BC-B (commercial); BC-b (small commercial); BC-A (residential); BC-12 (roof decks); and BC-21 (roofing-includes gutters and vinyl siding). This Act became law on May 13, 2013, but did not go into effect until January 1, 2014.

Public Chapter No. 815, amends Title 40, Chapter 29, relative to restoration of citizenship. This Act allows certain persons beginning on January 1, 2015, who have had their rights of citizenship restored to petition the court for a certificate of employability. If a person obtains such a certificate, an agency may not deny the issuance, restoration or renewal of an occupational license solely on the person’s past record of criminal activity but, instead, must consider each such applicant on a case-by-case basis. The certificate of employability preempts any existing rule that authorizes or requires the denial or refusal to issue, restore or renew a license based on the person’s past record of criminal history; however, any agency may promulgate new rules which allow or require such a denial or refusal to issue, restore or renew a license notwithstanding the certificate based on the time elapsed since the criminal offense or the nature of the offense having a direct bearing on the fitness or ability to perform any duty or responsibility necessarily related to the sought license. Further, employers that hire individuals holding a certificate of employability may be provided with defenses to certain civil actions based on such hiring. This law became effective on April 28, 2014.

Public Chapter No. 881, amends Tenn. Code Ann. §§ 62-76-201 and 202, and Tenn. Code Ann. §§ 68-1-129 and 130, relative to each board and commission created under Title 62. This Act requires each board and commission in consultation with the division of Regulatory Boards develop a plan to create an apprentice program for use by such board or commission. The details of the plan shall include specific items set out in the Public Chapter and shall be submitted to the speaker of the senate, the speaker of the house of representatives, the government operations committees of the senate and the house of representatives, the commissioner of commerce and insurance, the commissioner of health and the commissioner of labor and workforce development on or before December 31, 2014. If any board or commission has statutorily created apprenticeship programs or previously had such programs, it shall submit a similar report detailing information about such programs as set out in the Public Chapter. This law became effective on May 1, 2014.

Hot Topics

PC 260 – Alteration of Bid
PC 565 – Retainage on Contracts
PC 804 – Retainage/Prompt Pay Act
PC 355 – Roofing Subcontractors
PC 469 – Unlawful to Exceed Monetary Limit with Tolerance