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State licensing board denies contractor application after staff finds undisclosed lawsuits and bankruptcy

December 14, 2024 | Commerce & Insurance, Deparments in Office of the Governor, Organizations, Executive, Tennessee


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State licensing board denies contractor application after staff finds undisclosed lawsuits and bankruptcy
The Tennessee Board for Licensing Contractors voted Nov. 19 to deny an applicant who staff said submitted false information on his contractor license application and had pending litigation tied to a prior company.

Board staff told members they found two pending legal actions arising from construction work against the applicant's prior business that existed at the time the applicant completed an April 21 application. Staff also reported the prior company was in bankruptcy. "He answered 'no' on the application when asked whether persons associated with the business had pending litigation arising out of the field of construction," staff said, adding that court records showed service on at least one suit shortly before the application was submitted.

Staff recommended denial on two statutory grounds: submission of false evidence on the application and concerns about financial stability arising from related litigation and bankruptcy. Andy Allen moved to deny the application; the motion was seconded and carried on a voice vote.

Board members asked whether the matter related to a particular classification; staff said the application was for a BC A classification. After the vote, the board resumed consideration of other applications with factors and approved the remaining candidates.

The board did not announce any further sanctions beyond denial of issuance. The action follows the board's authority under state licensing rules to refuse issuance when an applicant misstates material facts or demonstrates lack of financial stability.

The board meeting packet includes the applicant's application materials and the staff follow-up report; the board took the denial motion after staff presented those findings. No further appeals or next steps were discussed on the record at the meeting.

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Scribe from Workplace AI
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