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62-6-103. License requirement -- Recovery of expenses by unlicensed contractor. [Effective until January 1, 2014. See the version effective on January 1, 2014.]

62-6-103.  License requirement -- Recovery of expenses by unlicensed contractor.  [Effective until January 1, 2014. See the version effective on January 1, 2014.]

  (a)  (1) Any person, firm or corporation engaged in contracting in this state shall be required to submit evidence of qualification to engage in contracting, and shall be licensed as provided in this part. It is unlawful for any person, firm, or corporation to engage in or offer to engage in contracting for any project in this state, unless, at the time of such engagement or offer to engage, the person, firm, or corporation has been duly licensed with a monetary limitation sufficient to allow the person, firm, or corporation to engage in or offer to engage in such contracting project under this chapter. The board for licensing contractors shall have the authority to grant or allow an exception, in an amount not to exceed ten percent (10%), to the monetary limitation of such license provided in this subdivision (a)(1). Any person, firm, or corporation engaged in contracting, including a person, firm, or corporation that engages in the construction of residences or dwellings constructed on private property for the purpose of resale, lease, rent, or any other similar purpose, shall be required to submit evidence of qualification to engage in contracting and shall be licensed. It is unlawful for any person, firm, or corporation to engage in, or offer to engage in, contracting as described in this subdivision (a)(1) unless the person, firm, or corporation has been duly licensed under this part.

   (2)  (A) Notwithstanding subdivision (a)(1), any person, firm or church that owns property and constructs on the property single residences, farm buildings or other buildings for individual use, and not for resale, lease, rent or other similar purpose, is exempt from the requirements of this part.

      (B) Except in counties with a population of not less than seven hundred seventy-seven thousand one hundred thirteen (777,113), according to the 1980 federal census or any subsequent federal census, a person or firm specified in subdivision (a)(2)(A) shall not make more than one (1) application for a permit to construct a single residence or shall not construct more than one (1) single residence within a period of two (2) years. There shall be a rebuttable presumption that the person or firm intends to construct for the purpose of resale, lease, rent or any other similar purpose if more than one (1) application is made for a permit to construct a single residence or if more than one (1) single residence is constructed within a period of two (2) years. This subdivision (a)(2)(B) shall not be construed to alter the definition of "contractor" as defined in § 62-6-102.

   (3) Notwithstanding subdivisions (a)(1) and (2), the license requirements and restrictions contained in this subsection (a) shall not apply to single residences constructed by:

      (A) Nonprofit charitable or religious corporations, associations and organizations that are exempt from federal income taxation under § 501(c)(3) of the Internal Revenue Code of 1986, compiled in 26 U.S.C. § 501(c)(3); or

      (B) Students enrolled in educational institutions who construct the residences under the direct supervision of faculty as part of the curriculum of the institution.

   (4) The exemption provisions of subdivisions (a)(2) and (3) concerning licensure shall apply to limited licensed electricians.

   (5) Notwithstanding subdivision (a)(1), any single residence homeowner is exempt from the limited licensed electrician requirements of this part for purposes of performing electrical work on the homeowner's own residence.

(b) Any contractor required to be licensed under this part who is in violation of this part or the rules and regulations promulgated by the board shall not be permitted to recover any damages in any court other than actual documented expenses that can be shown by clear and convincing proof.

(c) Notwithstanding any law to the contrary, no lien otherwise authorized pursuant to title 66, chapter 11 shall be available to any person, firm, or corporation engaged in construction in violation of this chapter.

 

62-6-103.  License requirement -- Recovery of expenses by unlicensed contractor.  [Effective on January 1, 2014. See the version effective until January 1, 2014.]

  (a)  (1) Any person, firm or corporation engaged in contracting in this state shall be required to submit evidence of qualification to engage in contracting, and shall be licensed as provided in this part. It is unlawful for any person, firm, or corporation to engage in or offer to engage in contracting for any project in this state, unless, at the time of such engagement or offer to engage, the person, firm, or corporation has been duly licensed with a monetary limitation sufficient to allow the person, firm, or corporation to engage in or offer to engage in such contracting project under this chapter. The board for licensing contractors shall have the authority to grant or allow an exception, in an amount not to exceed ten percent (10%), to the monetary limitation of such license provided in this subdivision (a)(1). Any person, firm, or corporation engaged in contracting, including a person, firm, or corporation that engages in the construction of residences or dwellings constructed on private property for the purpose of resale, lease, rent, or any other similar purpose, shall be required to submit evidence of qualification to engage in contracting and shall be licensed. It is unlawful for any person, firm, or corporation to engage in, or offer to engage in, contracting as described in this subdivision (a)(1) unless the person, firm, or corporation has been duly licensed under this part.

   (2)  (A) Notwithstanding subdivision (a)(1), any person, firm or church that owns property and constructs on the property single residences, farm buildings or other buildings for individual use, and not for resale, lease, rent or other similar purpose, is exempt from the requirements of this part.

      (B) Except in counties with a population of not less than seven hundred seventy-seven thousand one hundred thirteen (777,113), according to the 1980 federal census or any subsequent federal census, a person or firm specified in subdivision (a)(2)(A) shall not make more than one (1) application for a permit to construct a single residence or shall not construct more than one (1) single residence within a period of two (2) years. There shall be a rebuttable presumption that the person or firm intends to construct for the purpose of resale, lease, rent or any other similar purpose if more than one (1) application is made for a permit to construct a single residence or if more than one (1) single residence is constructed within a period of two (2) years. This subdivision (a)(2)(B) shall not be construed to alter the definition of "contractor" as defined in § 62-6-102.

   (3) Notwithstanding subdivisions (a)(1) and (2), the license requirements and restrictions contained in this subsection (a) shall not apply to single residences constructed by:

      (A) Nonprofit charitable or religious corporations, associations and organizations that are exempt from federal income taxation under § 501(c)(3) of the Internal Revenue Code of 1986, compiled in 26 U.S.C. § 501(c)(3); or

      (B) Students enrolled in educational institutions who construct the residences under the direct supervision of faculty as part of the curriculum of the institution.

   (4) The exemption provisions of subdivisions (a)(2) and (3) concerning licensure shall apply to limited licensed electricians.

   (5) Notwithstanding subdivision (a)(1), any single residence homeowner is exempt from the limited licensed electrician requirements of this part for purposes of performing electrical work on the homeowner's own residence.

(b) Any contractor required to be licensed under this part who is in violation of this part or the rules and regulations promulgated by the board shall not be permitted to recover any damages in any court other than actual documented expenses that can be shown by clear and convincing proof.

(c) Notwithstanding any law to the contrary, no lien otherwise authorized pursuant to title 66, chapter 11 shall be available to any person, firm, or corporation engaged in construction in violation of this chapter.

(d) No contractor shall be authorized to perform roofing work on a construction project where the roofing portion of the construction project is twenty-five thousand dollars ($25,000) or more unless the contractor is licensed; provided:

   (1) Any person who holds a license issued by the department as either a manufactured home installer or a manufactured home retailer, pursuant to title 68, chapter 126, shall not be required to be a licensed contractor in order to perform roofing work on a manufactured home as defined in § 68-126-202; provided, that such work is related to the construction of a manufactured home or performed in connection with a manufacturer's warranty covering a manufactured home, or the repair of such home; and

   (2) Any person who holds a license issued by the department as to the manufacture or installation of modular building units, pursuant to title 68, chapter 126, shall not be required to be a licensed contractor in order to perform roofing work on a modular building unit as defined in § 68-126-303; provided, that such work is related to the construction or installation of a modular building unit, or performed in connection with a manufacturer's warranty covering a modular building unit, or the repair of such unit.

 

62-6-130.  Limited licensed electricians not contractors.

  Nothing in this part shall be construed to provide that a limited licensed electrician is a contractor. It is the intent of this part to provide that a limited licensed electrician is subject to the jurisdiction of the board solely for the purposes of licensure and disciplinary proceedings. No limited licensed electrician shall be authorized to use the appellation "contractor" or any other designation that gives or is designed to give the impression that a limited licensed electrician is a contractor unless the limited licensed electrician also holds a valid contractor's license issued by the board.

 

62-6-505.  Exemption from licensing requirements.

  (a) No home improvement contractor's license may be required of any person when acting in the particular capacity or particular type of transaction set forth in this section:

   (1) An individual who performs labor or services for a home improvement contractor or subcontractor for wages or salary;

   (2) A plumber, electrician, architect or any other person who is required by state or local law to attain standards of competency or experience as a prerequisite to engaging in a craft or profession, and who is acting exclusively within the scope of the craft or profession for which the person is currently licensed pursuant to such other law. The installation of central heating or air conditioning systems by such a person shall be deemed within the scope of the person's craft or profession;

   (3) Any retail clerk, clerical employee, salesperson or other employee of a licensed home improvement contractor;

   (4) Any residential or commercial contractor who holds a valid license issued pursuant to this chapter and is engaged in contracting within the terms and conditions of the license; or

   (5) An interior designer performing services as set forth in § 62-6-501(4)(B)(vii).

(b) A homeowner may secure a permit without a state license to do any improvements on the homeowner's own properties; however, in so doing, the homeowner shall have no claim to the fund.

 

62-32-301.  Short title.

  This part shall be known and may be cited as the "Alarm Contractors Licensing Act of 1991."

 

62-32-302.  Purpose.

  The purpose of this part is to provide uniform procedures and qualifications throughout this state for the certifying, licensing and regulation of alarm systems contractors and to protect the safety and security of persons and property by assuring the competence of individuals or companies offering alarm systems and services to the general public.

 

62-32-303.  Part definitions.

  As used in this part, unless the context otherwise requires:

   (1) "Alarm system" means any mechanical, electrical or electronic system, or any combination of those systems, designed to:

      (A) Record, view, monitor, protect against, avoid or reduce the probability of personal or property loss or injury resulting from fire, smoke, heat, burglary, theft, shoplifting, pilferage or other losses of that type;

      (B) Monitor, detect or prevent intrusion; or

      (C) Detect and summon aid for other emergencies;

   (2) "Alarm systems contractor" means any person, firm, association or corporation that sells or attempts to sell, installs, services or monitors alarm systems, signal devices, fire alarms, burglar alarms, television cameras or still cameras used to detect fire, burglary, breaking or entering, intrusion, shoplifting, pilferage or theft;

   (3) "Alarm verification" means an attempt by a monitoring company or its representative to contact a burglar alarm location or a burglar alarm user by telephone or other electronic means to determine whether a burglar alarm signal is valid in an attempt to avoid unnecessary police response before requesting law enforcement to be dispatched to the location. Alarm verification further means that at least a second call shall be made to a different number if the first attempt fails to reach an alarm user;

   (4) "Board" means the state board for licensing alarm systems contractors created by § 62-32-306;

   (5) "Burglar alarm system" means an alarm or monitoring system that has the primary function of detecting or responding to emergencies other than fire;

   (6) "Business entity" means each location from which alarm systems are sold, installed or serviced;

   (7) "Certification" means the authority granted by the board to do business as an alarm systems contractor;

   (8) "Fire alarm system" means an alarm or monitoring system that is intended to respond to or detect fire, heat, smoke or other byproducts of combustion;

   (9)  (A) "Good moral character" means an individual with high legal, moral and ethical values;

      (B)  (i) The following shall be prima facie evidence that an individual does not have good moral character:

            (a) Conviction by any local, state, federal or military court of any crime involving the illegal use, possession, sale, manufacture, distribution or transportation of a controlled substance, controlled substance analogue, drug or narcotic;

            (b) Conviction of a crime involving felonious assault;

            (c) Conviction of a crime involving unlawful breaking or entering, burglary, larceny or arson;

            (d) Conviction as an habitual criminal; or

            (e) An addiction to alcohol or a narcotic drug;

         (ii) For purposes of subdivision (9)(B)(i), "conviction" means and includes the entry of a plea of guilty, plea of no contest or a verdict rendered in open court by a judge or jury;

   (10) "Installation" means the installation, maintenance, service and repair of alarm systems;

   (11) "Monitoring" means any off-site central monitoring station or location that receives electronic burglar alarm, closed circuit television or fire alarm signals from multiple locations and notifies or dispatches, or both, other persons to emergency burglaries, hold ups, thefts, vandalism, civil unrest, personal emergencies or fire alarm conditions; and

   (12) "Qualifying agent" means any individual licensed by the board whose qualifications have been demonstrated to the board for overseeing and supervising alarm systems contractor operations of any classification or combination of classifications.

 

62-32-304.  Prohibited activities -- Requirements.

  (a) No person shall engage in or hold out as engaging in the business of an alarm systems contractor without first being certified in accordance with this part.

(b) No person shall do business under this part unless the business entity has in its employ a qualifying agent who meets the requirements for licensing by the board and who is, in fact, licensed under this part. The qualifying agent who is licensed under this part shall be in a management position and be responsible for overseeing the quality of operations of the alarm systems contractor.

(c) In the event that the qualifying agent upon whom the business entity relies in order to do business ceases to perform the agent's duties as qualifying agent, the business entity shall notify the board within ten (10) working days. The business entity must obtain a substitute qualifying agent within thirty (30) days after the original qualifying agent ceases to serve as qualifying agent unless the board, in its discretion, extends this period for good cause for a period not to exceed three (3) months.

(d) The certification application shall designate at least one (1) qualifying agent who is or shall be licensed for each classification of service to be performed by the certified business entity. No qualifying agent who has been so designated may serve on behalf of or be employed by any other business entity. The certification application shall designate for which classification or classifications the applicant is seeking a certification.

(e) No alarm systems contractor may participate in a joint venture to provide equipment or services that require certification under this part unless all parties to the joint venture are certified in accordance with this part.

(f) No contractor may subcontract the provision of equipment or services requiring a certification under this part to any uncertified person, firm, association or corporation except as provided in § 62-32-305(7).

(g) No alarm systems contractor shall retain as an employee any person known not to be of good moral character.

(h) No person shall act as an alarm systems contractor under a certification without having a licensed qualified agent who holds a valid license in the category for which business is sought or work is to be done.

(i) No person shall act as a qualified agent without a valid license issued by the board.

(j) No person shall sell and install, service, monitor or respond to alarm signals, signal devices, fire alarms, burglar alarms, television or still cameras used to detect fire, burglary, breaking or entering, intrusion, shoplifting, pilferage or theft in violation of this part or the rules adopted under this part.

(k) No person shall advise anyone as to the need, quantity or quality of alarm systems and sell the systems unless certified, licensed or registered under this part.

 

62-32-305.  Exclusions from requirements of part.

  The following persons, firms, associations or corporations are specifically excluded from the requirements of this part:

   (1) Equipment manufacturers not providing direct sales, monitoring or installation of service to system end users;

   (2) Telephone installers/dealers not providing direct sales, monitoring, installation or maintenance service of alarm systems;

   (3) Equipment distributors or suppliers not offering sales, monitoring or installation services directly to the system user;

   (4) Retail stores or catalog sales not offering installation or consulting services to the system user;

   (5) Utility companies not installing, selling, servicing or monitoring alarm systems;

   (6) Sprinkler contractors not providing direct sales, monitoring, installation or maintenance service of alarm systems;

   (7) Electrical, mechanical or HVAC contractors licensed under chapter 6 of this title who do provide direct sales, monitoring, installation or maintenance service of alarm systems, but who derive less than fifty percent (50%) of their gross annual revenues from that business;

   (8) Architects and engineers not providing direct sales, monitoring, installation or maintenance service of alarm systems;

   (9) Individual property owners personally installing an alarm system within the owner's residence or other building not open to the general public;

   (10) Direct sellers and installers dealing exclusively with alarm systems for motor vehicles;

   (11) Locksmiths not providing direct sales, monitoring, installation or maintenance service of alarm systems. Locksmiths who install only mechanical locks or mechanical locks that have an integral alarm as part of their design without electrical components and electromechanical locks such as self-contained, low voltage exit alarm devices that secure a single entry point, that are not part of an integrated system, are also exempt from the requirements of this part;

   (12) A company that does not provide monitoring services and that has fifty million dollars ($50,000,000) or more in annual sales and whose product requires no internal building wiring to install;

   (13) Medical alert or medical monitoring services to individuals made available by a hospital or an affiliate of a hospital;

   (14) The monitoring and minor maintenance of alarm systems by a hospital or an affiliate of a hospital solely for its own use; and

   (15) The sale or installation of delayed egress locks by a company when the locks are used to detect and monitor the wandering of residents of a nursing home.

 

62-32-312.  Employee registration -- Procedure.

  (a) All alarm systems contractor employees with access to records, diagrams, plans or other sensitive information pertaining to monitored, installed or proposed alarm systems shall be registered with the board.

(b) In accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, the board shall promulgate rules to establish an appropriate system of employee classifications and registration.

(c) An alarm systems contractor may not employ any employee required to be registered with the board unless the employee is properly registered with the board in compliance with subsection (d) and meets the training requirements of subsection (g).

(d) All alarm systems contractors, within thirty (30) working days of the beginning of employment of any employee, shall furnish the board with the following:

   (1) A set or sets of classifiable fingerprints on standard FBI/TBI applicant cards;

   (2) A recent color photograph or photographs of acceptable quality for identification; and

   (3) Statements of any criminal records in each area where the employee has resided within the immediately preceding forty-eight (48) months.

(e) Upon receipt of an application, the board shall cause an FBI/TBI background investigation to be made, during which the applicant shall be required to show that the applicant meets all the following requirements and qualifications, prerequisite to registration or licensure:

   (1) The applicant is at least eighteen (18) years of age;

   (2) The applicant is of good moral character; and

   (3) Registration of an employee shall be for two (2) years and shall be subject to renewal.

(f) Employee registration pursuant to this section shall be renewed every two (2) years.

(g) All alarm system contractor employees who sell, install or repair alarm systems, including closed circuit television systems, shall take and successfully complete the National Burglar and Fire Alarm Association Level 1 or equivalent training. The board may determine what constitutes equivalent training.

   (1) New employees after January 1, 2005, must successfully complete such training within one (1) year of employment.

   (2) Employees not in compliance with this subsection (g) shall not sell, install or repair alarm systems, including closed circuit television systems.

(h) All alarm system contractors shall provide proof of employee training upon request by the board.

(i) Any costs associated with the alarm system training required by this section shall be the responsibility of and paid by the alarm system contractor who employs the person being trained.

 

 

 

Rules of the Tennessee Alarm Systems Contractors Board (2012)

http://www.tn.gov/sos/rules/0090/0090.htm