Establishes Environmental and Special Construction as one of nine major construction licensing classifications, and requires the state contractor licensing board to adopt rules establishing specialty classifications that are automatically included in licenses issued for major classifications. Licenses may also be issued for specialty classifications alone. Regulations implementing the law (Tenn. Admin. Code 0680-01-.16) establish a Specialty/Environmental classification that includes, among other things, mold remediation, asbestos material handling/removing, and lead paint abatement; a license holder must "keep abreast of all applicable state and federal requirements to ensure ‘state of the art’ handling and removing" of these materials and must notify the board within 10 days of any citation lodged against it.

Encourages local education agencies to implement an IAQ inspection and evaluation program, such as EPA’s IAQ Tools for Schools program, which may address ventilation, radon, relative humidity, separation of students and staff from construction, and reduced use of cleaning and maintenance products. Directs the state Department of Education to compile a statewide survey of IAQ in public schools by 2006.