Texas to Minnesota: general contractor license reciprocity

Minnesota's ban on local contractor licensing is narrower than it first looks. Minn. Stat. 326B.835 stops a city, county or township from licensing a contractor who holds a state residential license, but only for the work that license covers. DLI's own FAQ spells out the rest: cities and counties "can require a local license for Certificate of Exemption holders and specialty contractors, and state licensed contractors performing work outside the scope of the state license (for example: Work on city-owned property, such as curb cut-ins or sidewalks, HVAC installation or maintenance, or commercial work)." A commercial builder should therefore ask the building department in each city it will work in whether a local contractor license or registration applies on top of the state construction contractor registration, and should expect the permit desk to ask for the registration number. Local governments may also add a permit surcharge of up to $5 for license verification.

How it works in Texas. No Texas agency issues a general, commercial, building or unlimited contractor license, and there is no Texas equivalent of a qualifying party, a NASCLA route or a business-and-law exam. Cities control commercial construction through the building permit. Where a city registers contractors, registration is an annual (or biennial) filing backed by insurance, bonding and identity documents - never a competency exam - so out-of-state experience, an out-of-state license and a NASCLA Accredited Examination score all carry the same weight in Texas, which is none. What does matter is holding, or employing, the state trade licenses for any electrical, HVAC or plumbing scope, and registering those licenses with the city as well.

Dallas. Building Inspection's contractor registration form covers General Contractor and notes that the category 'includes, but is not limited to, the following: residential general contractor, commercial general contractor, roofing contractor, fence contractor, foundation contractor, demolition contractor and pool contractor.' The form prints an annual registration or renewal fee of $120.00. A company with a Dallas address must supply a Certificate of Occupancy number or have a home office form on file. The responsible party lists and assigns PINs to the staff who may sign permit applications, and registrations are suspended or revoked under Chapter 52 of the Dallas City Code, the Administrative Procedures for the Construction Codes. Renewals go through DallasNow or any Building Inspection office; (214) 948-4480.

Fort Worth. 'Any firm, business, individual or organization obtaining a permit related to the building, mechanical, plumbing or electrical provisions' of the city codes must have a valid Contractor Registration on file with Development Services. A commercial builder registers as a Building Contractor for $168.75, submitting the application and a copy of a valid driver's license; 'the Contractor Registration, unless revoked or suspended, shall expire one year from the date of issuance.' The Mechanical, Electrical and Plumbing registration types require the matching Texas state license; the Building type does not require any license or exam. Parkway and Utility contractors are the exception that carries a bond ($25,000 commercial or $10,000 residential) and a certificate of liability insurance naming the City as additional insured, at $562.50. Call 817-392-2222.

El Paso. Planning and Inspections registers a General Contractor for 'New Commercial & Tenant Improvements'. The filing is an Assumed Name Certificate or corporate documents, the Contractor Registration Application, a certificate of general liability insurance of at least $100,000 with the City of El Paso as certificate holder, and a blanket building construction bond; the city's current application states $50,000 for general contractors while its requirements sheet lists $25,000, so confirm the figure with the One Stop Shop before buying the bond. Stated minimum liability limits are $250,000 bodily injury per person, $500,000 aggregate, and $100,000 property damage per occurrence and in the aggregate. The requirements sheet lists a $102.00 annual fee, and the application 'must be filed annually to be eligible to obtain permits from the City of El Paso in accordance with Section 18.02.104.5 of the El Paso City Code.' Electrical, mechanical, plumbing, irrigation and fire contractors register on their state licenses at no annual fee. One Stop Shop, 811 Texas Avenue, 915-212-0104.

Austin. Development Services states plainly that 'in Texas, anyone can be a General Contractor, including homeowners, and a state license is not required.' The general contractor named on a building permit must still register with Building and Trade Contractor Services before the permit is activated: create an Austin Build + Connect (AB+C) portal account, submit the registration web form and a Letter of Authorization. General contractors register once and update only on a change of name, address or authorized agents, while trade contractors must hold the state license and refresh their registration annually with the license information. Austin publishes no fee for general contractor registration.

San Antonio. Development Services registers residential builders and home improvement contractors under Chapter 10-115 of the Code of Ordinances, but for commercial work it states: 'There are no license or registration requirements for commercial general contractors.' A commercial builder in San Antonio pulls permits without any city credential; the electrical, mechanical and plumbing subcontractors must be registered with Development Services on their state licenses before permits are issued.

Houston. Houston requires no general contractor credential of any kind. Its Commercial Permitting 101 guide states that 'the building permit may be purchased by the owner, agent, contractor. General Contractors are not required to be licensed', and the city's plan review page repeats that 'a general contractor's license is not required to obtain building permits.' The city instead registers the licensed trades: a TDLR Master Electrician, a TDLR Class A or B air conditioning contractor, a TSBPE Master Plumber, and fire alarm and fire sprinkler contractors licensed by the Texas Department of Insurance State Fire Marshal's Office, each of whom must also be registered with the City of Houston to buy a trade permit. Commercial projects over $50,000 additionally need a TDLR project registration under the Architectural Barriers Act.

Everywhere else. Other Texas cities set their own rules, and outside city limits and extraterritorial jurisdictions there is usually no building permit authority at all. Ask each city's building or development services department what it registers before you bid work there.