|
Tennessee Board for Licensing Contractors
Notification of Statutory Changes
Pursuant to T.C.A. § 4-3-1306(d), you are receiving this notice because you have elected to receive notification by e-mail of certain changes or potential changes to the law applicable to your profession. As such, the Department would notify you of the following Public Chapter that was passed during this legislative session and the effective date:
Bill Number: SB2429/HB1903
Public Chapter: PC0664 – https://publications.tnsosfiles.com/acts/113/pub/pc0664.pdf
Effective Date: April 9, 2024
FREQUENTLY ASKED QUESTIONS - AMENDED
PC0664 (Renewal Applications)
What does the recent statute change, PC0664, mean for the industry?
PC0664 refers to renewal applications only. It requires a compiled financial statement prepared by a Public Accountant or a Certified Public Accountant for licenses with a monetary limit over $1,500,000, including Unlimited. Any license with a limit of $1,500,000 or less will only require a notarized statement from the contractor attesting that the financial statement is true and correct.
Can I provide a compilation of only the balance sheet?
Yes. A compilation of the balance sheet only is acceptable.
Does the compilation need to provide disclosures?
No, a compilation without disclosures will be accepted.
Does the compilation need to be prepared by an accountant?
Yes, the compilation must be prepared by a Public Accountant or a Certified Public Accountant. In Tennessee, only Public Accountants or Certified Public Accountants operating within a licensed CPA/PA firm can provide compilation services. Additionally, any licensed CPA/PA firm providing compilation services must be enrolled in an approved peer review program.
Following is a link to the Tennessee State Board of Accountancy’s website which provides information on attest work and how to locate a CPA Firm that can perform this work.
https://www.tn.gov/commerce/regboards/accountancy/consumer/attest.html
Will the new statute affect monetary limit increase applications?
No, the laws and rules concerning monetary limit increases have not changed. Any monetary limit request for $3,000,000 or less will require a reviewed or audited financial statement. Any monetary limit request over $3,000,000, including unlimited, will require an audited financial statement.
If I apply for a monetary limit increase, do I only include a self-prepared financial statement?
No, you must include either a reviewed financial statement or an audited financial statement based on the limit amount in the previous answer.
What is a notarized statement?
The statute requires a notarized statement for any renewal of a license with a monetary limit of $1,500,000 or less. If you are renewing online, there will be a box to check at the end of the application process attesting that all questions and documents submitted, including financial statements, are true and correct. This will serve as a “notarized statement”. You do not need to provide any other document.
If you are renewing on paper, either through the mail or in-person, the renewal application packet is required to be notarized by a Notary Public.
Who signs the notarized statement?
The Contractor or Qualified Agent signs the notarized statement.
If I have previously applied for my renewal online, do I need to submit a notarized statement?
No, as stated previously, there is a box that is checked attesting to your submitted documents, including financial statement, as being true and correct. That will serve as a notary statement. If you renewed your license before April 9, 2024, you are not affected by this change in the statute.
When renewing a license, will the department accept a review or audit instead of a compilation?
Yes, the statute gives minimum requirements to be submitted when renewing your license. The department will accept a reviewed or audited financial statement instead of a compilation.
Can a licensed contractor request a monetary increase anytime or just at the scheduled renewal date?
A contractor can request a monetary limit increase at any time. If the increase request is within one year of its original license issuance, special permission must be granted by the Board. A detailed explanation as to the reasoning for the request must be submitted with the application.
If I want to request a monetary limit increase at the same time of my renewal, what do I need to do?
Depending on your limit amount, you will need to submit a compilation or notarized statement/online attestation with your renewal. A separate application for the limit increase will need to be submitted. Based on the requested limit amount, you will need to submit a reviewed or audited financial statement prepared by a Public Accountant or Certified Public Accountant.
If you have any other questions, please call 615-741-8307 or 800-544-7693, or email Contractors.Home-Improvement@tn.gov
|
