§ 62-6-120 — Penalties

(a) (1) Any person, firm or corporation that engages or offers to engage in contracting without a license as required by § 62-6-103 or who violates the terms and conditions of any license or renewal granted by the board pursuant to this part commits a Class A misdemeanor. The penalties imposed by this subdivision (a)(1) shall not apply to a person who engages a contractor without a license for the purpose of constructing a residence for the use of that person. (2) Any person, firm or corporation that engages or offers to engage in contracting without a license as required by § 62-6-103 may, in the discretion of the board, be deemed ineligible to receive a license until six (6) months after the date the person, firm or corporation engaged or offered to engage in contracting. Additionally, no such person, firm or corporation shall be awarded any contract for the project upon which it engaged in contracting without a license or permitted to participate in any rebidding of the project. (b) Any person, firm or corporation that accepts a bid in excess of twenty-five thousand dollars ($25,000) from a contractor who is not licensed, with appropriate classifications and sufficient monetary limitations, or in the case of a limited licensed electrician where the amount is less than twenty-five thousand dollars ($25,000), in accordance with this part, commits a Class A misdemeanor. (c) (1) No official of the state other than of the department of transportation shall issue a permit or contract work order to any applicant for a permit or work order to engage in contracting, unless the applicant holds a license as a contractor with appropriate classifications and sufficient monetary limitations, in accordance with this part. (2) Any official violating this subsection (c) commits a Class A misdemeanor. (d) Notwithstanding the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, relative to the amount of civil penalties that may be imposed, the board may impose a civil penalty not to exceed five thousand dollars ($5,000) per offense against any person or firm that violates the terms and conditions of an existing license to engage in contracting or against any person or firm that engages in unlicensed contracting. (e) (1) (A) The director of the board, acting on behalf of the board, is authorized to issue citations against persons: (i) Acting in the capacity of or engaging in the business of a contractor without a license in violation of § 62-6-103 ; (ii) Exceeding the monetary limitation on the person's contractor's license; or (iii) 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. (B) Each citation shall be in writing and shall describe with particularity the basis of the citation. (C) Each citation shall contain an order to cease all violations of this part and an assessment of a civil penalty in an amount no less than fifty dollars ($50.00) nor more than one thousand dollars ($1,000). (2) The board shall promulgate rules and regulations to specify those conditions necessary to the issuance of a citation and the range of penalties for violations of this part. (3) The sanctions authorized pursuant to this subsection (e) shall be in addition to any other remedies, civil and criminal, available to any person harmed by a violation of this part. (4) Service of a citation issued pursuant to this subsection (e) may be made by first-class mail at the last known business address or residence address of the person cited. (5) A citation issued pursuant to this subsection (e) shall be issued by the director within one (1) year after the act or omission that is the basis for the citation. (6) Any person served with a citation pursuant to this subsection (e) may appeal to the director by written notice postmarked within fifteen (15) working days after service of the citation with respect to violations alleged, scope of the order or amount of civil penalty assessed. (7) If a person cited timely notifies the director that the person intends to contest the citation, the director shall afford an opportunity for a contested case hearing pursuant to the Uniform Administrative Procedures Act. (8) After all administrative appeals have been exhausted, the director may apply to the appropriate court for a judgment in an amount of the civil penalty, plus applicable court costs, and for an order to cease activities in violation of § 62-6-103 . A certified copy of the final order of the board, hearing officer, or administrative judge or a certified copy of the unappealed citation shall constitute a sufficient showing to warrant the issuance of the judgment and order. (9) (A) Notwithstanding any other law to the contrary, the director may waive part of the civil penalty if the person against whom the civil penalty is assessed satisfactorily completes all the requirements for, and is issued, a license as a general contractor. (B) Any outstanding injury to the public shall be settled satisfactorily before a license as a general contractor is issued. (f) Any individual or entity that fails to pay a civil penalty assessed by the board pursuant to the terms of a final order entered by the board after a contested case hearing against the individual or entity pursuant to the Uniform Administrative Procedures Act, may be referred to a collection agency. (g) Failure to pay any civil penalty assessed by the board shall subject the individual or entity to suspension or revocation of a license issued pursuant to this part.

Legislative History

Amended by 2021 Tenn. Acts, ch. 549, s 16, eff. 10/1/2021. Amended by 2015 Tenn. Acts, ch. 290, Secs.s 1, s 2 eff. 4/24/2015. Amended by 2013 Tenn. Acts, ch. 180, s 5, eff. 4/23/2013. Acts 1976, ch. 822, § 21; 1981, ch. 399, § 2; 1981, ch. 497, § 2; T.C.A., § 62-621; Acts 1984, ch. 888, § 4; 1986, ch. 718, § 3; 1989, ch. 487, § 15; 1989, ch. 591, § 111; 1991, ch. 247, §§ 2, 3; 1994, ch. 986, § 14; 1999, ch. 238, § 6; 2007 , ch. 460, § 6; T.C.A., §62-6-118(e); T.C.A., §§62-6-201--62-6-207.