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Regulation of Contractors

Reference Number: MTAS-335
Reviewed Date: 11/17/2022

T.C.A. §§ 7-62-101, et seq., allow municipalities and counties to license "residential, commercial, or assembly builders and residential, commercial, and assembly maintenance and alteration contractors." However, municipalities and counties are prohibited from imposing upon HVAC, plumbing, and electrical contractors any licensing requirements (i.e., tests, examinations, etc.) other than state requirements. T.C.A. § 7-62-104(7). Municipalities and counties also are prohibited from discriminating against a state licensee based on non-residency in the municipality or county. T.C.A. § 62-6-111(i)(2)(c). Municipalities may require a permit bond for contractors to ensure compliance with applicable laws and ordinances. Approving the permit bond program requires a two-thirds vote of the governing body. T.C.A. § 62-6-137.

Contractors’ Permits
An optional general law available for adoption by ordinance authorizes an unlimited number of building permits for general home repairs and improvements to be issued to state-licensed contractors. No more than 10 active permits may be issued to certain unlicensed contractors. T.C.A. §§ 7-62-201, et seq.

A building permit official must advise any permit applicant of the provisions of this law if it has been adopted by ordinance by the city. T.C.A. §§ 7-62-201, et seq.

Workers’ Compensation Coverage Prerequisite to Issuing Permit
Officials who issue building permits are required to make sure contractors have a certificate of compliance, a certificate of insurance, a workers' compensation policy, or a number from a certificate of compliance from the Department of Labor or other evidence of workers’ compensation coverage before issuing a permit. T.C.A. § 13-7-211.