Board adopts three-option plan to fix improperly granted residential monetary limits, grants on-the-spot waiver to Memphis contractor

Board for Licensing Contractors · December 14, 2024

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Summary

After staff found several BCAR residential licenses with monetary limits above the statutory $125,000 threshold, the board gave affected licensees three remediation options (lower limit, take full exam within 90 days, or request interview/waiver) and authorized complaints for noncompliance; the board also granted an immediate exam waiver and equivalent BCA monetary limit to public commenter Billy Irby.

Tennessee's Board for Licensing Contractors voted Nov. 19 to address a small set of residential BCAR licenses it found were granted monetary limits above the statutory $125,000 cap.

Staff said an administrative review uncovered about 40 licenses with potential mismatches and that further work narrowed the list to about six unresolved cases that could not be fixed administratively. "They should not have been granted," staff said, and recommended offering each affected licensee three informal avenues: (1) agree to lower the limit to the statutory $125,000 for BCAR, (2) achieve full BCA status by passing the full exam and become compliant within 90 days, or (3) appear for a board interview to request an exam waiver. If a licensee does not select one of those options, staff recommended authorizing a complaint and adverse action.

Board members debated practicalities, including whether licensees could complete existing work within a 90-day testing window and whether adverse action would affect projects in progress. Staff clarified licensees would typically be able to finish active contracts even if their limit reverted, and that some cases required individualized review.

The board voted to authorize the letter containing the three options and approved the plan to pursue complaints against those who do not come into compliance.

During the public-comment period, licensed contractor Billy Irby of Memphis described his career, said he recently passed a combined commercial/industrial exam, and explained a recent medical episode (facial paralysis/Bell's palsy) that reduced his ability to test. While Irby was at the podium, board members moved to consider his request and a motion to exempt him from the BCA exam and grant a BCA-level monetary limit consistent with his current financial profile (board discussion referenced $460,000 as his current limit) carried by voice vote.

Board staff said they would set interviews online for other licensees who request a waiver and would send the new letter with the three options. The board did not announce specific case-by-case penalties at the meeting; staff said formal complaints would be authorized only for licensees who refuse all available remediation options.