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Board considers delegated citation process for contractor‑report preparers to streamline discipline
Summary
Board members discussed a proposal to allow staff to issue agreed citations with modest civil penalties for first‑time preparers who file unlawful attest reports with the Contractors Licensing Board; staff to draft formal proposal for a future meeting.
Board members discussed a proposal to streamline discipline when an unqualified preparer submits attest reports to the Tennessee Board for Licensing Contractors, by delegating to board staff the ministerial authority to offer agreed citations in straightforward, first‑time cases.
Board member Rob Vance summarized the problem: the Contractors Licensing Board often refers cases to the Accountancy Board where a preparer issued attest reports without holding required credentials (CPA license, firm permit, and peer review enrollment). Legal counsel and staff discussed a draft memo concluding the board may delegate ministerial authority to staff to issue a citation or notice of violation in clear, undisputed fact patterns; if a respondent accepts the citation and pays a civil penalty, the matter would close without full investigation. If the respondent declines, the matter would proceed through the board’s normal enforcement process and be considered at the quarterly legal report.
Participants debated details. Counsel said the proposal would not strip the board’s legal authority; it would delegate only ministerial settlement authority in limited cases. Board members asked whether citations would be limited to referrals from the Contractors Licensing Board, whether penalties should be discounted to encourage settlement, whether citations would be published, and whether settlements could require reimbursement to affected clients. Counsel said publication of discipline remains part of board practice (disciplinary action reports are public once final) and that reimbursement issues may raise additional legal and jurisdictional questions.
The board asked staff and counsel to develop a formal proposal for the next meeting that would include: eligibility criteria (for example, first‑time inadvertent violations and referrals from the Contractors Licensing Board), proposed penalty amounts, publication practice, and an estimate of expected time and cost savings to the board if implemented.
Ending
No formal vote was taken; staff and counsel will draft a proposed agreed‑citation procedure and cost‑savings estimate for the board to consider at a future meeting.
