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Regular Session, 2014
SENATE BILL NO. 627
BY SENATOR MURRAY
WORKERS' COMPENSATION. Exempts certain home improvement contractors who have
no employees from the requirements of workers' compensation. (8/1/14)
AN ACT1
To amend and reenact R.S. 37:2171.2(B) and 2175.2(C) and to enact R.S. 23:1064, relative2
to workers' compensation; to provide for certain home improvement contractors; to3
provide for certain exemptions from the requirements of workers' compensation4
coverage; to provide for remedies in tort; to provide reservation of certain rights; to5
provide for forms; to provide for affidavits; to provide for permitting; and to provide6
for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 23:1064 is hereby enacted to read as follows:9
§1064. Home improvement contractors with no employees; exemption from10
coverage11
A.(1) The provisions of this Chapter shall not apply to any home12
improvement contractor who is licensed pursuant to the provisions of R.S.13
37:2175.2 and who meets all of the following criteria:14
(a) Has no employees, no independent contractors, and no15
subcontractors.16
(b) Is not an officer or principal of any corporation, or a member or17 SB NO. 627
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manager of any limited liability company, or a partner of any partnership or a1
principal of any firm engaged in the business of home improvement contracting2
who employs independent contractors or subcontractors or who has any3
employees other than the home improvement contractor himself.4
(c) The licensed home improvement contractor has chosen to be exempt5
from coverage pursuant to this Chapter.6
(2)(a) Any home improvement contractor who avails himself of the7
provisions of this Section, who would otherwise be immune from a tort liability8
claim based upon the exclusive remedies provided for in this Chapter, thereby9
waives any defense or immunity against any claim in tort which would10
otherwise be subject to the provisions of this Chapter.11
(b) Any person who would otherwise be covered under the provisions12
of this Chapter is hereby authorized to pursue any and all claims against the13
licensed home improvement contractor in tort where such claims would14
otherwise be subject to the exclusive remedies provided pursuant to the15
provisions of this Chapter.16
B.(1) The provisions of Subsection A of this Section shall not exempt or17
in any way apply to subcontractors or employees of any person, firm,18
partnership, or corporation engaged within a project under a principal19
contractor.20
(2) The provisions of this Section shall require a Home Improvement21
Contractors' Coverage Exemption form to be completed and submitted to the22
Louisiana State Licensing Board for Contractors upon application for licensing.23
(3) An affidavit reflecting the exemption from coverage shall be24
completed upon the application for any building permit and submitted to the25
local permits office, with a copy submitted to the Louisiana State Licensing26
Board for Contractors, before receiving a local building permit.27
Section 2. R.S. 37:2171.2(B) and 2175.2(C) are is hereby amended and reenacted28
to read as follows:29 SB NO. 627
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§2171.2. Requirements; building permit1
* * *2
B.(1) In addition to and notwithstanding requirements set forth in Subsection3
A of this Section, a nonresident commercial, residential, or home improvement4
contractor applicant shall provide its federal taxpayer identification number to the5
local building permit official, as well as proof of registration to do business in the6
state of Louisiana.7
(2) In addition to and notwithstanding requirements set forth in8
Subsection A of this Section, a home improvement contractor who is exempt9
from the requirements of workers' compensation pursuant to R.S. 23:1064 shall10
submit an affidavit as is required in R.S. 23:1064.11
* * *12
§2175.2. Home improvement contracting; registration required13
* * *14
C. The applicant shall furnish the board proof of general liability insurance15
in a minimum amount of one hundred thousand dollars, proof of workers'16
compensation insurance coverage in compliance with Title 23 of the Louisiana17
Revised Statutes of 1950, and proof of registration with the Department of Revenue18
by providing a certificate of resident/nonresident status.19
* * *20
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Carla S. Roberts.
DIGEST
Murray (SB 627)
Proposed law provides that a home improvement contractor who is licensed pursuant to the
provisions of R.S. 37:2175.2 and who meets all of the following criteria shall be exempt
from the requirements of workers' compensation coverage:
(1)Have no employees, no independent contractors, and no subcontractors.
(2)Is not an officer or principal of any corporation, or a member or manager of any
limited liability company, or a partner of any partnership or a principal of any firm
engaged in home improvement contracting who employs independent contractors or
subcontractors or who has any employees other than the home improvement
contractor himself. SB NO. 627
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(3)The licensed home improvement contractor has chosen to be exempt from workers'
compensation coverage.
Proposed law provides that any home improvement contractor who avails himself of
proposed law, who would otherwise be immune from a tort liability claim based upon the
exclusive remedies provided for in workers' compensation, thereby waives any defense or
immunity against any claim in tort which would otherwise be subject to the provisions of
exclusive remedy in workers' compensation.
Proposed law provides that any person, who would otherwise be limited to the provisions
of workers' compensation coverage, is authorized to pursue any and all claims against the
licensed home improvement contractor in tort where such claims would otherwise be subject
to the exclusive remedies of workers' compensation.
Proposed law provides that the provisions of proposed law shall not exempt or in any way
apply to subcontractors or employees of any person, firm, partnership, or corporations
engaged within a project under a principal contractor.
Proposed law provides that the provisions of proposed law shall require a Home
Improvement Contractors' Coverage Exemption form to be completed, and submitted to the
Louisiana State Licensing Board for Contractors upon application for licensing.
Proposed law provides that an affidavit reflecting the exemption from coverage shall be
completed upon the application for any building permit and submitted to the local permits
office, with a copy submitted to the Louisiana State Licensing Board for Contractors, before
receiving a local building permit.
Proposed law provides that a home improvement contractor who is exempt from the
requirements of workers' compensation must submit an affidavit to the local building permit
official in order to obtain a building code permit.
Effective August 1, 2014.
(Amends R.S. 37:2171.2(B) and 2175.2(C); adds R.S. 23:1064)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Labor and Industrial
Relations to the original bill
1. Clarifies that a sole practitioner may avail himself of the provisions of
proposed law if he practices his home improvement contracting trade through
a corporation, a limited liability company, or partnership.
2. Requires that a home improvement contractor who is exempt from the
requirements of workers' compensation must submit an affidavit to the local
building permit official in order to obtain a building code permit.