Associated Builders and Contractors (ABC) Greater Tennessee Chapter News & Updates

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ABC Celebrates Political Wins of 2019

Off the heels of the most exciting legislative session for the construction industry in years, ABC- Greater Tennessee was able to pass a majority of our legislative priorities for the year. Thank you to all of the ABC members for their help in marking this achievement. ABC Greater Tennessee is looking forward to many more successes in the years to come. 

Below is an update on each piece of legislation that ABC - Greater Tennessee pushed in the Tennessee General Assembly in 2019. 

SB324/HB 271  Payment Rights of contractors and subcontractors (Sen. Johnson/Rep. Gant)
Prohibits a written contract to have a condition precedent for payment clause where the prime contractor is not required to pay the remote contractor due to contract or until they are paid by the construction owner. Declares that if payment is not received, work by contractor can be suspended until received. Makes other revisions relative to the payment rights of contractors and subcontractors.

ABC Position: Oppose as currently written
Update: Returned to House clerk's desk and deferred until 2020 calendar


SB697/HB1286 Definition of action to determine cause (Sen. Stevens/Rep. Farmer)
Expands the definition of action for the purposes of determining a cause of action to mean the filing of a lawsuit, demand for arbitration, motion, garnishment, petition, or any other legal proceeding for the redress of civil injuries. Broadly captioned.

Update: Senate passed, but taken off notice in House Civil Justice Subcommittee


SB1172/HB757 Limits recovery of a real property who prevails in action challenging validity of lien (Sen. Swann/Rep. Marsh)
Limits recovery of a real property owner who prevails in an action challenging the validity of a lien to only liens filed against certain residential units.

Update: Enacted and Signed by Governor Lee


SB 364/HB563 Discriminatory actions against a business entity by local government (Sen. Gardenhire/Rep. Zachary)
Prohibits state and local governmental entities from taking discriminatory action against a business based on that business's internal policies, regarding health insurance policies, family leave policies, minimum wage policies, or anti-discrimination policies.

Update: Passed by House


SB779/HB923 Authorizes (CM/GC) pilot program as project delivery method (Sen. Johnson/Rep. Lamberth)
Removes the department's construction manager/general contractor services (CM/GC) pilot program and establishes as a fully authorized project. Declares the department will not initiate more than five contracts in any one fiscal year, and if a contract is larger than $70 million, the department will identify the project in the transportation improvement program submitted to the general assembly. Defines the appointment of members and the requirements of each.

Update: Enacted and Signed by Governor Lee


SB1000/HB1124 UAPA – board for licensing contractors
Clarifies that the board for licensing contractors must promulgate rules in accordance with the Uniform Administrative Procedures Act. Broadly captioned.

ABC Position: OPPOSE
Update: Deferred to the 2020 calendar


SB1053/HB1063 Main Street Historic Tourism and Revitalization Act (Sen. Watson/Rep. Vaughan)
Declares that any person incurring costs or expenses for the rehabilitation of a certified historic structure shall receive a credit against state tax liability in an amount equal to the applicable percentage of rehabilitation expenditures, not exceeding $4M per certified historic structure per annual allocation with provisions of requirements established. Establishes that the entire tax credit will be earned in the year the qualified rehabilitation expenditure is placed in service and if the amount of the tax credit exceeds the total tax liability, then the amount can be carried forward for credit against the state tax liability for the succeeding five years or when the full credit is used. Defines allocation of the tax credit and how the person eligible for the tax credit can use the credit. Defines the process used for an applicant to receive approval for a tax credit regarding the rehabilitation of a historic structure. Specified that rehabilitation of a certified historic structure must begin within 18 months of approval of tax credit. Establishes that upon completion, the owner must notify the commission that the rehabilitation has been completed, along with the process of rehabilitation, schedule, and costs associated. Establishes liability to the owner in the event of an excessive tax credit. Defines the appeal process an applicant can make in the event of denial of application. (pp 13).

Update: Set for House Finance, Ways & Means Subcommittee


SB1227/HB1126 Unfair trade practices in business of insurance (Sen. Nicely/Rep. Tillis)
Specifies the law surrounding rebates does not prohibit the payment of a fee to a trade or professional association exempt from income tax.

Update: Enacted and Signed by Governor Lee

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