TN Home Improvement Contractor Licensing Bill to Watch

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On January 23 and February 3, House Bill 2297 and Senate Bill 2051 were introduced, proposing to amend Title 62, Chapter 6, Part 5 of the Tennessee Code to expand home improvement contractor licensing and other requirements to the entire state, to clarify the meaning of owner, contractor, and commissioner, and to remove certain exemptions in the home improvement contractor law. If signed into law, HB 2297/SB 2051 will take effect July 1, 2014.

Present law defines a “home improvement contract” as an agreement between a “contractor” and an owner for the performance of home improvement. HB 2297/SB 2051 clarify that such a contract is between a home improvement contractor and owner. A “home improvement contractor” is anyone, other than a bona fide employee of the owner, who undertakes or offers to undertake or agrees to perform any home improvement for the owner, whether or not the person is licensed or subject to the licensing requirements. “Owner” will be defined as “(A) Any homeowner, tenant or any other person who orders, contracts for or purchases the home improvement services of a home improvement contractor; or (B) The person entitled to the performance of the work of a contractor pursuant to a home improvement contract.” Present law specifies that no home improvement contractor’s license is required for a retail clerk, clerical employee, salesperson or “other employee of a licensed home improvement contractor”. HB 2297/SB 2051 specify that this exemption applies to employees who do not perform home improvement work, amending from the current law “an individual who performs labor or services for a home improvement contractor or subcontractor for wages or salary” is exempt for the licensure requirements.

HB 2297/SB 2051 will also require a home improvement contract to contain information regarding each home improvement contractor who will perform work pursuant to the contract, amending from the current law reference to certain home improvement contractors being exempt from licensure due to the county exclusions under the contractor provisions.

Additional Resources: HB 2297; SB 2051; TN Gen. Assem. Fiscal Review Committee Fiscal Note SB 2051 – HB 2297 (Mar. 7, 2014)