Amends TCA Title 13; Title 62, Chapter 6 and Title 66.

Generally under present law, a person must be licensed in order to engage in contracting in this state. This bill exempts from the licensure requirement a person who owns real property and intends to construct a residential building on that real property, if the person: (1) Personally appears at the local permitting agency, if applicable, and receives from the agency a Disclosure Statement and Notice of Non-licensed Owner's Intent to Build form, sample contents of which are included in this bill and informs the person that construction is only allowed on that person's property and limited to a residential building for that person's use and occupancy. The form must be signed and filed with the register of deeds, indexed under the person's name in the grantor's index; (2) Provides the local permitting agency a copy of the signed form with a stamp or other designation of the register of deeds attached evidencing the form has been filed with the register of deeds; personally appears at the local permitting agency and signs applicable building permits; and provides the local permitting agency an affidavit affirming that the person maintains general liability insurance and workers' compensation insurance and specifying the amount of each insurance policy as well as any other information the agency may require; and (3) Complies with the requirements described in the form. This bill also provides that: (1) If the person fails to comply with the requirements described in the form, then the board may penalize the person for contracting in this state without a license in violation of the laws governing contractors and seek all applicable penalties; (2) In addition to any other remedy provided in law, a buyer of the real property who suffers damages from a person violating this bill has a cause of action against the person violating this exemption provision. A court may award to the buyer reasonable attorney's fees and costs if the buyer prevails in the action; (3) The exemption in this bill only applies to new construction for which a building permit is obtained on or after the effective date of this bill; (4) The owner of real property for which a Disclosure Statement and Notice of Non-licensed Owner's Intent to Build form was filed in the grantor's index in the register's office may remove the form not less than four years after the date of certificate of occupancy was issued for the residential building that is subject of the form; (5) To remove the disclosure and notice form, the property owner must complete a removal form created by the department of commerce and insurance in consultation with the state board for licensing contractors. The board will review the form to determine whether the owner-building complied with state law in constructing the building, and if so, return the form to the owner for recording with the county register of deeds; and (6) Any costs associated with filing a disclosure and notice form or a removal form with the register of deeds will be at the property owner's expense. ON APRIL 12, 2021, THE SENATE SUBSTITUTED HOUSE BILL 369 FOR SENATE BILL 275 AND ADOPTED AMENDMENT #1. HOUSE BILL 369 FAILED TO RECEIVE A CONSTITUTIONAL MAJORITY AND WAS REFERRED TO THE CALENDAR COMMITTEE. AMENDMENT #1 limits this bill's application to jurisdictions where a building permit is required from a local permitting agency and changes this bill's effective date from upon becoming a law to January 1, 2022.