HLS 22RS-292 ENGROSSED 2022 Regular Session HOUSE BILL NO. 602 BY REPRESENTATIVE DAVIS CONTRACTORS: Provides relative to the Louisiana State Licensing Board for Contractors 1 AN ACT 2To amend and reenact R.S. 37:2150.1(introductory paragraph) and (2) through (13), 3 2152(Section heading), 2153(A), (E), and (F), and 2154 through 2165, to enact R.S. 4 37:2150(14) through (18) and 2153(G), and to repeal R.S. 37:2152(C), 2166 through 5 2173, Part II of Chapter 24 of Title 37 of the Louisiana Revised Statutes of 1950, 6 comprised of R.S. 37:2175.1 through 2175.6, and Chapter 24-A of Title 37 of the 7 Louisiana Revised Statutes of 1950, comprised of R.S. 37:2181 through 2192, 8 relative to the Louisiana State Board for Contractors; to revise and reorganize 9 provisions related to contractors, generally, including home improvement contractors 10 and mold remediation contractors; and to provide for related matters. 11Be it enacted by the Legislature of Louisiana: 12 Section 1. R.S. 37:2150.1(introductory paragraph) and (2) through (13), 2152(Section 13heading), 2153(A), (E), and (F), and 2154 through 2165 are hereby amended and reenacted 14and R.S. 37:2150(14) through (18) and 2153(G) are hereby enacted to read as follows: 15 §2150.1. Definitions 16 As used in this Chapter, the following words and phrases shall be defined as 17 follows terms have the following meanings: 18 * * * 19 (2) "Commercial purposes" means any construction project except 20 residential structures with no more than four incorporated or attached dwelling units. Page 1 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 intended to be primarily occupied as a residence with no more than four separate 2 dwelling units incorporated into one structure. 3 (3) "Contract" means an agreement to perform a scope of work that is 4 regulated by this Chapter. It includes the entire cost of the construction undertaking, 5 including labor, materials, rentals, and all direct and indirect project expenses. The 6 cost of materials, rentals, and direct and indirect expenses shall be included 7 regardless of who pays the costs or if they are donated. The "principal contract" is 8 the agreement to perform the entire scope of work for a construction project. 9 (4)(a) "Contractor" means any person who undertakes to, attempts to, or 10 submits a price or bid or offers to construct, supervise, superintend, oversee, direct, 11 or in any manner assume charge of the construction, alteration, repair, improvement, 12 movement, demolition, putting up, tearing down, or furnishing labor, or furnishing 13 labor together with material or equipment, or installing the same for material or 14 equipment for any of the following: 15 (i) Any building, highway, road, railroad, sewer, grading, excavation, 16 pipeline, public utility structure, project development, housing, or housing 17 development, improvement, or any other construction undertaking for which the 18 entire cost is fifty thousand dollars or more when the property is to be used for 19 commercial purposes. 20 (ii) Any new residential structure where the entire cost is seventy-five 21 thousand dollars or more when the property is used for residential purposes. 22 (iii) Any improvements or repairs where the entire cost exceeds seven 23 thousand five hundred dollars to an existing residential structure. 24 (iv) Any mold remediation where the entire cost exceeds seven thousand five 25 hundred dollars. 26 (b) The term "contractor" includes general contractors, subcontractors, 27 architects, and engineers persons who receive an additional fee for the employment 28 or direction of labor, or any other work beyond the normal architectural or 29 engineering services. Page 2 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (c) A contractor holding a license in the major classification of hazardous 2 materials, or any subclassifications thereunder, shall be defined in terms of work 3 performed for which the cost is one dollar or more. 4 (d) "Contractor" shall not mean any person, supplier, manufacturer, or 5 employee of such person who assembles, repairs, maintains, moves, puts up, tears 6 down, or disassembles any patented, or proprietary, or patented and proprietary 7 environmental equipment supplied by such person to a contractor to be used solely 8 by the contractor for a construction undertaking. "Proprietary" shall mean specific 9 and specialized equipment installation, manufacturing processes, uses, or 10 components that are protected from disclosure to third parties by the owner or 11 manufacturer of the equipment. 12 (4.1) (5) "Electrical contractor" means any person who undertakes to, 13 attempts to, or submits a price or bid or offers to construct, supervise, superintend, 14 oversee, direct, or in any manner assume charge of the construction, alteration, 15 repair, improvement, movement, demolition, putting up, tearing down, or furnishing 16 labor together with material and equipment, or installing the same for the wiring, 17 fixtures, or appliances for the supply of electricity to any residential, commercial, or 18 other project, when the cost of the undertaking exceeds the sum of ten thousand 19 dollars. This Paragraph shall not be deemed or construed to limit the authority of a 20 contractor, general contractor, or residential building contractor, as those terms are 21 defined in this Section, nor to require such individuals to become an electrical 22 contractor. 23 (5) (6) "Executive director" means the person appointed by the board to 24 serve as the chief operating officer in connection with the day-to-day operation of 25 the board's business. The executive director shall be the appointing authority for all 26 employees of the board. 27 (6)(a) (7)(a) "General contractor" means a person who contracts directly with 28 the owner. The term "general contractor" shall include the term "primary contractor" Page 3 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 and wherever used in this Chapter or in regulations promulgated thereunder "primary 2 contractor" shall mean "general contractor". 3 (b) "General contractor" shall not mean any person, supplier, manufacturer, 4 or employee of such person who assembles, repairs, maintains, moves, puts up, tears 5 down, or disassembles any patented, proprietary, or patented and or proprietary 6 environmental equipment supplied by such person to a contractor to be used solely 7 by the contractor for a construction undertaking. 8 (7) (8) "Home improvement contracting" means the reconstruction, 9 alteration, renovation, repair, modernization, conversion, improvement, removal, or 10 demolition, or the construction of an addition to any pre-existing owner occupied 11 building residential structure which building is used or designed to be used as a 12 residence or dwelling unit, or to structures which are adjacent to such residence or 13 building where the project value exceeds seven thousand five hundred dollars but is 14 not greater than seventy-five thousand dollars. "Home improvement contracting" 15 shall not include services rendered gratuitously. 16 (8) (9) "Home improvement contractor" means any person, including a 17 contractor or subcontractor, who undertakes or attempts to undertake or submits a 18 price or bid on any home improvement contracting project. 19 (8.1) (10) "Mechanical contractor" means any person who undertakes to, 20 attempts to, or submits a price or bid or offers to construct, supervise, superintend, 21 oversee, direct, or in any manner assume charge of the construction, alteration, 22 repair, improvement, movement, demolition, putting up, tearing down, or furnishing 23 labor, or furnishing labor together with material and equipment, or installing the 24 same for the construction, installation, maintenance, testing, and repair of air 25 conditioning, refrigeration, heating systems, and plumbing for all residential, 26 commercial, and industrial applications as well as ventilation systems, mechanical 27 work controls, boilers and other pressure vessels, steam and hot water systems and 28 piping, gas piping and fuel storage, and chilled water and condensing water systems 29 and piping, including but not limited to any type of industrial process piping and Page 4 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 related valves, fittings, and components, when the cost of the undertaking exceeds 2 the sum of ten thousand dollars. This Paragraph shall not be deemed or construed 3 to limit the authority of a contractor, general contractor, or residential building 4 contractor, as those terms are defined in this Section, nor to require such individuals 5 to become a mechanical contractor. 6 (11) "Mold remediation contractor" means any person who engages in 7 removal, cleaning, sanitizing, demolition, or other treatment, including preventative 8 activities, of mold or mold-contaminated matter that was not purposely grown at that 9 location and where the costs for such labor and materials exceed seven thousand five 10 hundred dollars. Mold remediation applies only to the regulation of mold-related 11 activities that affect indoor air quality and does not apply to routine cleaning when 12 not conducted for the purpose of mold-related activities intended to affect indoor air 13 quality. 14 (9) (12) "Person" means any individual, firm, partnership, association, 15 cooperative, corporation, limited liability company, limited liability partnership, or 16 any other entity recognized by Louisiana law; and whether or not acting as a 17 principal, trustee, fiduciary, receiver, or as any other kind of legal or personal 18 representative, or as a successor in interest, assignee, agent, factor, servant, 19 employee, director, officer, or any other representative of such person; or any state 20 or local governing authority or political subdivision performing a new construction 21 project which exceeds the contract limits provided in R.S. 38:2212 and which does 22 not constitute regular maintenance of the public facility or facilities which it has been 23 authorized to maintain. 24 (13) "Plumbing contractor" means any person who installs, maintains, and 25 repairs potable and nonpotable tap water or sewer systems within a building structure 26 or residential structure when the cost of the undertaking exceeds the sum of ten 27 thousand dollars. 28 (10) (14) "Qualifying party" means a natural person designated by the 29 contractor to represent the contractor for the purpose of complying with the Page 5 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 provisions of this Chapter including without limitation meeting the requirements for 2 the initial license and any continuation thereof. 3 (11) (15) "Residential building contractor" means any corporation, 4 partnership, or individual person who constructs a fixed building or structure for sale 5 for or use by another as a residence or who, for a price, commission, fee, wage, or 6 other compensation, undertakes or offers to undertake the construction or 7 superintending of the construction of any building or structure, with no more than 8 four incorporated or attached dwelling units, which is not more residential structure 9 which is not more than three floors in height, to be used by another as a residence, 10 when the cost of the undertaking exceeds seventy-five thousand dollars. The term 11 "residential building contractor" includes all contractors, subcontractors, architects, 12 and engineers persons who receive an additional fee for the employment or direction 13 of labor, or any other work beyond the normal architectural or engineering services. 14 "Residential building contractor" also means any person performing home 15 improvement contracting as provided for in Paragraph (9) of this Section when the 16 cost of the undertaking exceeds seventy-five thousand dollars. It shall not include 17 the manufactured housing industry or those persons engaged in building residential 18 structures that are mounted on metal chassis and wheels. 19 (16) "Residential structure" means a building or structure that is used 20 primarily for occupancy by a person as a residence. Such structures or buildings 21 include but are not limited to single family dwellings, duplexes, triplexes, and 22 fourplexes which are not more than three floors in height and structures that are part 23 of or adjacent to the building or structures to be used as a residence. 24 (12) (17) "Subcontract" means an agreement to perform a portion of the 25 scope of work contained in the principal contract including the entire cost of labor 26 and materials of that part of the principal contract which is performed by the 27 subcontractor. 28 (13)(a) (18)(a) "Subcontractor" means a person who contracts directly with 29 the primary contractor for the performance of a part of the principal contract or with Page 6 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 another contractor for the performance of a part of the principal contract. to perform 2 a scope of work that is a part of the scope of work contained in the principal contract. 3 (b) "Subcontractor" shall not mean include any person, supplier, or 4 manufacturer, or employee of such person who assembles, repairs, maintains, moves, 5 puts up, tears down, or disassembles any patented, or proprietary, or patented and 6 proprietary environmental equipment supplied by such person to a contractor to be 7 used solely by the contractor for a construction undertaking. 8 * * * 9 §2152. Domicile; officers; bond 10 * * * 11 §2153. Powers of the board 12 A. The board is hereby vested with the authority requisite and necessary to 13 carry out the intent of the provisions of this Chapter. The board shall have the power 14 to make, amend, or repeal by-laws, rules, and regulations for the proper 15 administration and enforcement of this Chapter; to employ such administrative 16 assistants as are necessary; and to fix their compensation. The board is hereby 17 vested with the authority requisite and necessary to carry out the intent of the 18 provisions of this Chapter. and to carry out the purposes thereof, in accordance with 19 the Administrative Procedure Act. The enumeration of specific matters which may 20 be made, and the subject of rules and regulations, shall not be construed to limit 21 general powers of the board to make all rules and regulations necessary to fully 22 effectuate the purpose of this Chapter. 23 * * * 24 E. The board may sue and be sued and shall have the right and authority to 25 obtain, in the jurisdiction in which a violation of the provisions of this Chapter 26 occurs, upon submission of an affidavit in support, a temporary restraining order and 27 preliminary and permanent injunctions, without the necessity of posting a bond or 28 other security, restraining and prohibiting the violation of this Chapter and the 29 performance of any work then being performed or about to be performed. Page 7 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 F. In addition to any other duties and powers granted by this Chapter, the 2 board shall: 3 (1) Grant licenses to qualified contractors pursuant to this Chapter. 4 (2) Make, amend, or repeal such rules and regulations as it may deem proper 5 fully to effectuate this Chapter and carry out the purposes thereof, in accordance with 6 the Administrative Procedure Act. The enumeration of specific matters which may 7 be made and the subject of rules and regulations shall not be construed to limit 8 general powers of the board to make all rules and regulations necessary fully to 9 effectuate the purpose of this Chapter. Hold hearings in accordance with the 10 provisions of R.S. 49:951 through 965.1 to consider violations of the provisions of 11 this Chapter and the rules and regulations of the board. 12 (3) Enforce this Chapter and rules and regulations adopted pursuant thereto. 13 (4) Suspend or revoke any license for any cause described in this Chapter, 14 or for any cause prescribed by the rules and regulations, and refuse to grant any 15 license for any cause which would be grounds for revocation or suspension of a 16 license. 17 (4) Issue fines, penalties, and other costs for violations of the provisions of 18 this Chapter and the rules and regulations of the board. 19 (5) Recognize that any applicant holding a license in good standing in a 20 comparable classification in another state recognized by the respective agency as a 21 reciprocity state may have the trade portion of the examination waived upon written 22 certification from that state in which the applicant is licensed. The business law 23 course and the provisions of R.S. 37:2156.1 shall not be waived. Applicants shall 24 comply with all other licensing requirements of this state; however, for good cause, 25 the board may waive any other licensing requirement. 26 (6) Publish and distribute materials containing such information as it deems 27 proper to further the accomplishment of accomplish the purpose of this Chapter. Page 8 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 Beginning on July 1, 2018, and each quarter thereafter, submit to the 2 presiding officer of each house of the legislature, by electronic or other means, a 3 report that contains all of the following information for the previous quarter: 4 (a) A list of licensees whose license has been suspended or revoked. 5 (b) A list of any licensees whose license was reinstated. 6 F. G. Notwithstanding any other provisions to the contrary and to the extent 7 deemed necessary or appropriate by the board for the efficient implementation of its 8 responsibilities under this Chapter, the board may delegate its powers and duties to 9 its staff by specific resolution of the board. 10 §2154. Meetings; compensation; quorum; license application and issuance 11 procedure books and records; audit report 12 A. The board shall have at least one regular meeting per month on dates and 13 times designated by the chairman unless, for good cause, a monthly meeting cannot 14 be held. Notice of board meetings shall be posted on the board's official website and 15 at the board office at least ten days prior to the date when the board is to meet. 16 Further, any person desiring actual notice of the board meeting may request in 17 writing that the board send notification through the United States mail at least ten 18 days prior to the board meeting date. 19 B.(1) The board may receive applications for licenses pursuant to the 20 provisions of this Chapter at any time. Upon initial application, the license of a 21 contractor domiciled in the state of Louisiana shall be issued after all requirements 22 have been met and approved by the board. Upon the initial application of a 23 contractor domiciled outside of the state of Louisiana, except as provided herein, a 24 period of at least sixty days must elapse between the date the application is filed and 25 the license is issued unless waived by the board. The executive director shall 26 compile a list of all applicants for licensure that are to be considered at a board 27 meeting and transmit the list to each board member. 28 (2) For purposes of this Subsection a contractor shall be considered to be 29 "domiciled in the state" if he is either of the following: Page 9 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (a) An individual who has been a resident of the state of Louisiana for at 2 least one year prior to filing an application with the board of licensing. 3 (b) Any partnership, association, corporation, or other legal entity whose 4 majority interest is owned by and controlled by one or more residents of the state of 5 Louisiana. 6 (3) For purposes of this Subsection "majority interest" shall be determined 7 in either of the following ways: 8 (a) In the case of corporations, on the basis of all stock, common and 9 preferred, whether voting or nonvoting, and on the basis of all debentures, warrants, 10 or other instruments convertible into common stock, preferred stock, or both. 11 (b) In the case of partnerships, on the basis of all capital accounts together 12 with any and all capital advances, loans, and debentures, whether or not convertible 13 into capital accounts. 14 (4) No application may be considered from any state or local governmental 15 body including, without limitation, any agency of any state or local governmental 16 body including any corporation or other entity owned or controlled by any state or 17 local governing body. 18 C. Before a special meeting may be held, notice stating the time, place, and 19 purpose of the meeting shall be sent by the chairman or vice chairman of the board 20 by electronic means to the members of the board, at least three days before the date 21 of the meeting. 22 D. C. Each member of the board shall be reimbursed when actually in 23 attendance of a board meeting or when he is required to travel for the official 24 authorized business of the board, not more than seventy-five dollars per day plus 25 actual expenses and mileage to and from his domicile to the place of meeting at the 26 same rate of reimbursement set by the division of administration for state employees 27 under the provisions of R.S. 39:231. Page 10 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 E. D. Ten members of the board shall constitute a quorum, which shall be 2 sufficient for the board to conduct business, regardless of the total number of 3 members appointed. 4 F. E. There shall be no voting by proxy. 5 F. The treasurer shall be responsible for receiving and accounting for all 6 money derived from the operation of this Chapter. 7 G. The board shall maintain a roster showing the names and places of 8 business of all licensed contractors. The roster shall be maintained and available on 9 the board's official website. 10 H. The secretary of the board shall oversee and attest to the minutes of each 11 meeting. Copies shall be made available to each board member and to the public 12 upon adoption of the minutes at the next scheduled meeting of the board. 13 I. Within one hundred fifty days of the last day of each calendar year, a 14 certified public accounting firm approved by the state official charged with the 15 auditing of public records and accounts shall audit the financial records of the board 16 and submit the report of his audit to the legislative auditor and shall file a copy of his 17 audit with the secretary of state to be attached to the report of the board on file. 18 §2155. Books and records; reports Residential Contractors subcommittee; 19 membership; terms; powers; duties 20 A. The treasurer shall be responsible for receiving and accounting for all 21 money derived from the operation of this Chapter. He shall register all applicants 22 for licenses, showing for each the date of application, the name, qualifications, place 23 of business, place of residence, and whether license was granted or refused and the 24 date on which such license was granted or refused. There is hereby established 25 within the board the Residential Contractors Subcommittee, hereinafter referred to 26 as "residential subcommittee", consisting of five members who shall be residents of 27 this state and who have been actively engaged in residential contracting for at least 28 five years prior to appointment by the governor. Three members of the 29 subcommittee shall be appointed by the governor from a list of not less than ten Page 11 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 names submitted by the Louisiana Homebuilders Association as certified by its 2 president and secretary. One member of the subcommittee shall be from and 3 appointed to represent the first congressional district, one member shall be from and 4 appointed to represent the second congressional district, one member shall be from 5 and appointed to represent the third congressional district, one member shall be from 6 and appointed to represent the fourth and fifth congressional districts, and one 7 member shall be from and appointed to represent the sixth congressional district. 8 B. The board administrator shall keep a roster, showing the names and places 9 of business of all licensed contractors. The roster shall be maintained and available 10 on the board's official website. The terms of office of the initial members appointed 11 to the subcommittee shall be one for a three-year term, one for a two-year term, and 12 one for a one-year term, to be determined by the governor. Thereafter, all members 13 shall be appointed for three-year terms. All terms shall commence thirty days after 14 the appointment and all members shall serve until their successors have been 15 appointed and qualified. Vacancies occurring in the membership of the 16 subcommittee for any reason shall be filled by appointment by the governor for the 17 unexpired term. No person shall be appointed for more than two consecutive terms. 18 The governor may remove a member for cause. 19 C. The secretary of the board shall keep full and complete minutes of each 20 board meeting whether regular or special, including full information as to each 21 application for license considered and the board's action thereon as well as all 22 expenditures of the board that are approved. These board minutes shall be typed and 23 attested to by the secretary and copies shall be made available to each board member 24 and to the public upon adoption of the minutes at the next scheduled meeting of the 25 board. The executive director of the board shall serve as executive director of the 26 residential subcommittee and shall not have voting privileges. 27 D.(1) Within one hundred fifty days of the last day of each calendar year, a 28 certified public accounting firm approved by the state official charged with the 29 auditing of public records and accounts shall audit the financial records of the board Page 12 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 and submit the report of his audit to the legislative auditor and shall file a copy of his 2 audit with the secretary of state to be attached to the report of the board on file. An 3 ex officio member of the board shall serve on the residential subcommittee and shall 4 serve as the liaison between the residential subcommittee and the board. He shall be 5 appointed by the chairman of the board and shall serve as the chairman of the 6 residential subcommittee. His presence at a meeting of the residential subcommittee 7 may be counted toward establishing a quorum of the residential subcommittee, and 8 he shall only have voting privileges if either of the following circumstances exists: 9 (a) His presence is necessary to establish a quorum of the residential 10 subcommittee and there is a tie vote between the appointed members of the 11 residential subcommittee. 12 (b) His presence is necessary to establish a quorum of the residential 13 subcommittee, only one appointed member of the residential subcommittee is 14 present, and an additional ex officio member has been appointed pursuant to 15 Paragraph (2) of this Subsection. 16 (2) An additional ex officio member of the board shall serve on the 17 residential subcommittee only if his presence, along with the ex officio member 18 serving pursuant to Paragraph (1) of this Subsection, is required to establish a 19 quorum of the residential subcommittee. This additional ex officio member shall be 20 appointed by the chairman of the board and shall serve as the vice chairman of the 21 residential subcommittee. He shall only have voting privileges if there is a tie vote 22 between an appointed member of the residential subcommittee and the ex officio 23 member serving as chairman of the residential subcommittee. 24 (3) The board shall pay per diem and travel expenses for ex officio members. 25 E. A quorum of the residential subcommittee shall consist of a majority of 26 its members which shall be sufficient to conduct residential subcommittee business, 27 and the residential subcommittee shall meet at least once every other month to 28 conduct its business unless, for good cause, a meeting cannot be held. Notice of 29 residential subcommittee meetings shall be posted on the board's official website and Page 13 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 at the board office at least ten days prior to the date when the residential 2 subcommittee is to meet. 3 F. Each member of the residential subcommittee shall be entitled to a per 4 diem allowance of seventy-five dollars for each meeting he attends and be 5 reimbursed for all travel expenses necessarily incurred in attending meetings. 6 G. Subject to the approval of the board, the residential subcommittee shall 7 have all of the following powers and duties: 8 (1) To adopt rules and regulations to govern residential and home 9 improvement contractors in this state. 10 (2) To issue, suspend, modify, or revoke licenses to do business in this state 11 pursuant to the provisions of R.S. 37:2158. 12 (3) To prescribe and adopt regulations and policies for continuing education. 13 However, notwithstanding any other law to the contrary, the residential 14 subcommittee shall not approve for use by licensees any continuing education 15 courses or written training programs provided by a member of the residential 16 subcommittee or legal entity in which he has a controlling interest. 17 (4) To cause the enforcement against, and the prosecution and enjoinder of, 18 all persons violating provisions of this Chapter, and rules and regulations of the 19 board; issue fines, penalties, and other costs for violations; and incur necessary 20 expenses therefor. 21 §2156. Unexpired Applications; licenses; fees; renewals 22 A.(1) The board may receive an application from a person pursuant to the 23 provisions of this Chapter at any time. Upon initial application, the license of a 24 person shall be issued after all requirements have been met and approved by the 25 board. The executive director shall compile a list of all applicants for licensure for 26 inclusion in the agenda that are to be considered at a board meeting. 27 (2) No application may be considered from any state or local governmental 28 body including, without limitation, any agency of any state or local governmental Page 14 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 body including any corporation or other entity owned or controlled by any state or 2 local governing body. 3 B.(1) To defray the cost of issuing licenses and of administering the 4 provisions of this Chapter, the board shall fix reasonable fees to be assessed pursuant 5 to the provisions of this Chapter, and reasonable penalties to be assessed for late 6 applications for renewal of licenses and other administrative infractions; however, 7 the basic license fee shall be the sum of not more than one hundred dollars and the 8 fee for additional classifications shall be a lesser amount as set by the board. 9 (2) All fees received by the board in accordance with this Chapter shall be 10 solely used to effectuate the provisions of this Chapter. 11 (3) All fees shall be paid prior to the issuance of a license or other changes 12 or additions to an existing license. 13 C. Fees for licenses shall not exceed the following amounts: 14 (1) Examination fee $50.00 15 (2) License fee $100.00 16 (3) Renewal fee $100.00 17 (4) Delinquent fee $50.00 18 (5) Home Improvement fee $50.00 19 D. The board may assess an additional surcharge of not more than four 20 hundred dollars in connection with the application for and issuance of a contractor's 21 license to a contractor not domiciled in this state, to be utilized to defray the 22 additional cost of the investigation of the application of the non-Louisiana 23 contractor. 24 E. When issuing a license to any contractor, the board shall state the 25 contractor's classification on the license, according to the classification requested by 26 the contractor and for which he has completed all of the requirements. 27 F. The licensee shall not be permitted to bid or perform any type of work not 28 included in the classification under which his license was issued. Page 15 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 G. The licensee may apply for and receive additions to or changes in his 2 classification by applying, successfully completing the written examination, and 3 paying the required fees. Additions or changes to an existing license shall become 4 effective after completion of the requirements and upon board approval. 5 H. Licenses and renewals issued pursuant to the provisions of this Chapter 6 shall expire on the anniversary of the date on which the license was originally issued. 7 Licensees shall elect upon renewal one-, two-, or three-year license renewal terms, 8 and licenses may be issued by the board on a multiple-year basis, not to exceed a 9 three-year renewal term for any license. The license becomes invalid on the last day 10 of the term for which it was issued unless renewed; however, after a license has 11 expired, the person to whom the license was issued shall have fifteen days following 12 the expiration date to file an application for the renewal of the license without the 13 payment of a penalty and without further examination. Any person who makes an 14 application for the renewal of a license after fifteen days following the expiration 15 date of the license may, at the discretion of the board, have his license renewed after 16 paying the required license fees and a penalty, not exceeding the sum of fifty dollars, 17 that the board may impose. New applicants for licensing may elect upon application 18 the renewal term of their license. 19 B. I. If a license is not renewed within a period of one year from the date of 20 its expiration, any application for renewal shall be considered and treated as a new 21 application. 22 C.(1) To defray the cost of issuing licenses and of administering the 23 provisions of this Chapter, the board shall fix reasonable fees to be assessed pursuant 24 to the provisions of this Chapter, and reasonable penalties to be assessed for late 25 applications for renewal of licenses and other administrative infractions; however, 26 the basic license fee shall be the sum of not more than one hundred dollars and the 27 fee for additional classifications shall be a lesser amount as set by the board. 28 (2) The board may assess an additional surcharge of no more than four 29 hundred dollars in connection with the application for and issuance of a contractor's Page 16 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 license to a contractor not domiciled in the state of Louisiana, to be utilized to defray 2 the additional cost of the investigation of the application of the non-Louisiana 3 contractor, including references supplied by the contractor, work history supplied by 4 the work contractor, and other pertinent information required by the board in 5 connection with an application for a contractor's license. 6 (3)(a) J.(1) The board shall assess on each license renewal issued to a 7 contractor an additional fee of one hundred dollars per year to be dedicated and 8 allocated as provided in this Paragraph to any public university in this state or any 9 community college school of construction management or construction technology 10 in this state that is accredited by either the American Council for Construction 11 Education or the Accreditation Board for Engineering and Technology. The board 12 shall include on each license renewal form issued to a contractor an optional election 13 whereby the contractor may choose to not participate in the remission of the 14 additional one hundred dollar dedication fee. 15 (b) (2) Each January, each accredited public university or community college 16 school of construction management or construction technology shall report to the 17 board the number of graduates from its school of construction management or 18 construction technology from the previous calendar year. 19 (c) (3) Any and all funds collected pursuant to this Paragraph shall be 20 disbursed to the accredited public university or community college schools of 21 construction management or construction technology by August first of each year 22 upon completion of the annual audit of the board. The funds shall be used by the 23 accredited public university or community college schools of construction 24 management or construction technology solely for the benefit of their program and 25 the expenditure of such funds shall be approved by the industry advisory council or 26 board for the program. The funds collected pursuant to this Paragraph shall be in 27 addition to any other monies received by such schools and are intended to 28 supplement and not replace, displace, or supplant any other funds received from the 29 state or from any other source. Any school of construction management or Page 17 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 construction technology that experiences a decrease in the funding appropriated to 2 them by the accredited public university or community college as determined by the 3 industry advisory council or board for the program shall be ineligible for 4 participation under the provisions of this Paragraph, and the monies from the fund 5 for such school of construction management or construction technology shall be 6 redistributed on a pro rata basis to all other accredited and eligible schools. 7 (d) (4) The funds collected pursuant to this Subsection shall be distributed 8 as follows: 9 (i) (a) One-half on a pro rata basis to each accredited public university's or 10 community college's schools of construction management or construction 11 technology. However, each accredited public university shall receive twice as much 12 funds as each community college. 13 (ii) (b) One-half pro rata to each accredited public university school of 14 construction management or construction technology based on the total number of 15 graduates from the previous calendar year from each school as reported to the board. 16 (e) (5) No funds shall be allocated to any public university or community 17 college school of construction management or construction technology that does not 18 maintain current and active accreditation as required by this Paragraph. 19 D. K. The licenses issued pursuant to the provisions of this Chapter are not 20 transferable. 21 E. L. Any other provisions of this Chapter notwithstanding, no license shall 22 be issued to any foreign corporation which has not obtained from the secretary of 23 state a certificate of authority to do business, as provided in Chapter 3 of Title 12 of 24 the Louisiana Revised Statutes of 1950. 25 F. M. Except for the licenses, fees, and assessments authorized by this 26 Chapter, and except for the occupational license taxes authorized by the constitution 27 and laws of this state, and except for permit fees charged by parishes and 28 municipalities for inspection purposes, and except for licenses required by parishes 29 and municipalities for the purpose of determining the competency of mechanical or Page 18 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 plumbing contractors, or both, and electrical contractors, no contractor shall be liable 2 for any fee or license as a condition of engaging in the contracting business. 3 G. No license shall be issued for the subclassification of asbestos removal 4 and abatement under the major classification of hazardous materials as provided in 5 R.S. 37:2156.2(A)(VII) until the applicant furnishes satisfactory evidence that he or 6 his qualifying party has received certification from the Department of Environmental 7 Quality to perform asbestos removal and abatement work. 8 §2156.1. Requirements for issuance of a license 9 A. To become licensed as a contractor in accordance with the provisions of 10 this Chapter, an applicant shall make application to the board on a form adopted by 11 the board and shall state the classification of work the applicant desires to perform 12 from a list of major classifications as follows: 13 (1) Building construction. 14 (2) Highway, street, and bridge construction. 15 (3) Heavy construction. 16 (4) Municipal and public works construction. 17 (5) Electrical work. 18 (6) Mechanical work. 19 (7) Plumbing work. 20 (8) Hazardous materials. 21 (9) Specialty classifications. 22 (10) Residential construction. 23 B. The board shall classify contractors according to the type or types of 24 work or contracts which they may perform. 25 C.(1) The applicant Commercial, residential, and mold remediation 26 applicants shall furnish the board with a financial statement, current to within twelve 27 months of the date of filing, prepared by an accountant, bookkeeper, or certified 28 public accountant and signed by the applicant before a notary public, stating that the 29 statement of applicant's assets and financial condition is true and correct. The assets Page 19 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 shall include a net worth of at least ten thousand dollars. An applicant without the 2 net worth required herein may also furnish the board a bond, letter of credit, or other 3 security acceptable to the board in the amount of the net worth requirement plus the 4 amount of the applicant's negative net worth if any, and the furnishing of the bond, 5 letter of credit, or other security shall be deemed satisfaction of the net worth 6 requirement for all purposes. The financial statement and any information contained 7 therein, as well as any other financial information required to be submitted by a 8 contractor, shall be confidential and not subject to the provisions of R.S. 44:1 9 through 57. 10 (2) No financial statement is required for a license renewal. 11 D.(1) An applicant for commercial, residential, or mold remediation 12 contractor licensure shall designate a qualifying party who shall be the legal 13 representative for the contractor relative to the provisions of this Chapter. The 14 designated qualifying party shall complete an application supplied by the board and 15 pass any mandatory examination required by the board or present any credential 16 required. The board may deny approval of the qualifying party for good cause, 17 which may include the ability of the proposed principal owner or owners, principal 18 shareholder or shareholders, or qualifying party to engage in the business of 19 contracting as demonstrated by his prior contracting business experience. Evidence 20 which may be considered by the board shall be limited to any legal proceedings 21 against the qualifying party or businesses where the qualifying party was in a 22 position of control at the time a problem arose and the ultimate disposition of the 23 proceedings, any financial history of bankruptcies, unpaid judgments, insolvencies, 24 or any similar evidence. When the qualifying party terminates employment with the 25 licensee, the board shall be notified in writing within thirty days of the disassociation 26 and another qualifying party must qualify within sixty days. The persons who may 27 be a qualifying party or parties are: 28 (a) A sole proprietor or spouse of a sole proprietor. Page 20 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (b) Any employee of an applicant who has been in full-time employment for 2 one hundred twenty consecutive days immediately preceding the application. The 3 employee may be allowed to be the qualifying party for the licensed company and 4 related entities. 5 (c) Any stockholder, officer, or incorporator of a corporation. 6 (d) Any partner of a partnership. 7 (e) Any member or manager of a limited liability company. 8 (2) A qualifying party for a licensed contractor may be a qualifying party for 9 any affiliated entities to the licensed contractor. 10 (3) Upon good showing, the board may exempt any qualifying party from 11 the required examinations. The board shall exempt from testing for a residential 12 construction license any person working in the residential industry who holds a 13 building construction license that was issued by the board if requested by the 14 building contractor. 15 (3) (4) Upon the determination that a person has engaged in deceptive 16 practices when taking or attempting to take any board examination, the person shall 17 be ineligible to serve as a qualifying party for a licensee for a period of one year. 18 E. Notwithstanding any other law of this state to the contrary, a mechanical, 19 plumbing, or electrical contractor may obtain a license to bid and perform work 20 statewide provided the contractor has successfully passed a standardized, nationally 21 recognized, written examination administered or approved by the State Licensing 22 Board for Contractors. Residential construction and home improvement construction 23 applicants for licensure shall be required to submit certificates evidencing workers' 24 compensation coverage in compliance with Title 23 of the Louisiana Revised 25 Statutes of 1950, and liability insurance in a minimum amount of one hundred 26 thousand dollars or liability protection provided by a liability trust fund as authorized 27 by R.S. 22:46(9)(d) in a minimum amount of one hundred thousand dollars. 28 F.(1) Notwithstanding any other provision of law to the contrary, any 29 residential contractor in good standing with the board who has held a license to Page 21 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 engage in residential construction issued pursuant to this Chapter for not less than 2 one consecutive year may elect to place his license in an inactive license status with 3 the board, if he applies for a transfer to inactive status. 4 (a) During the period a license is in inactive status, the licensee shall be 5 prohibited from engaging in any activity requiring a residential contractor license. 6 (b) An inactive licensee shall be required to renew his inactive license in the 7 same manner as provided in R.S. 37:2156(H) and by paying a renewal fee, which 8 shall not exceed the renewal fee paid by active licensees. However, an inactive 9 licensee shall not be required to submit insurance certificates pursuant to Subsection 10 E of this Section or fulfill any other additional requirements that an active licensee 11 would not be required to fulfill when renewing his license. 12 (c) An inactive licensee shall be required to fulfill all prescribed continuing 13 education requirements established for active licensees. 14 (d) A licensee may request transfer from inactive status to active status at 15 any time, if all of the following conditions exist: 16 (i) The inactive license has been renewed as provided for in this Section. 17 (ii) The inactive license is current at the time the request is received by the 18 board. 19 (iii) The licensee submits the required insurance certificates as provided in 20 Subsection E of this Section. 21 G. Mold remediation license applicants shall be required to furnish all of the 22 following before a license is issued: 23 (1) Evidence to the board that he has satisfactorily completed at least twenty- 24 four hours of training in mold remediation and basic mold assessment. 25 (2) Insurance certificates evidencing workers' compensation coverage in 26 compliance with Title 23 of the Louisiana Revised Statutes of 1950 and liability 27 insurance in a minimum amount of fifty thousand dollars. 28 F.(1) H.(1) Upon completion of the requirements for licensure and issuance 29 of a state license for the classification of work for which the contractor has applied; Page 22 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 mechanical, plumbing, or electrical contractors licensed pursuant to the provisions 2 of this Section are excluded from local, municipal, or parish regulatory authority 3 examination procedures and may bid and perform work within any local jurisdiction 4 upon paying all appropriate fees. 5 (2) The purpose of this Subsection is to preempt local, municipal, or parish 6 regulatory examination authority for statewide-licensed mechanical, plumbing, or 7 electrical contractors bidding and performing work in multiple jurisdictions. This 8 preemption shall further exclude the employees of statewide-licensed electrical and 9 mechanical contractors from local, municipal, or parish regulatory examination or 10 certification authority as a condition to performing work for the statewide-licensed 11 electrical or mechanical contractor. 12 G. Any mechanical or electrical contractor who has, prior to July 1, 1985, 13 successfully passed both a state licensing examination administered or approved by 14 the board and a local licensing examination in the same license classification, and 15 who has continuously held such state and local licenses since July 1, 1985, shall be 16 exempted from any requirement for passage of an additional test in that license 17 classification. A mechanical or electrical contractor shall make application to the 18 board for an exemption on a form prepared by the board. The board shall provide 19 a date by which application for exemption forms must be filed. 20 H. I.(1) Any plumbing contractor who currently holds a state license Master 21 Plumber License from the State Plumbing Board of Louisiana shall be exempt from 22 any requirement for passage of an additional examination in that license 23 classification and may bid and perform plumbing work statewide after applying to 24 the board for an exemption on a form prepared by the board receiving a license from 25 this board. 26 I. (2) Nothing in this Section Subsection shall be construed to permit 27 plumbing contractors to perform plumbing work without first complying with the 28 licensure provisions of Chapter 16 of this Title, R.S. 37:1361 et seq. Page 23 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 J. Each applicant shall pay all fees required for issuance of the license as 2 provided for in this Chapter. 3 K. Upon completion of the requirements for licensure, the application shall 4 be submitted to the board for review. 5 J. No license shall be issued for the subclassification of asbestos removal and 6 abatement under the major classification of hazardous materials as provided in R.S. 7 37:2156.2(VIII) until the applicant furnishes satisfactory evidence that he or his 8 qualifying party has received certification from the Department of Environmental 9 Quality to perform asbestos removal and abatement work. 10 L.(1) K.(1) The examination requirement of this Chapter shall not apply to 11 any arborist who currently holds a valid state license issued pursuant to R.S. 3:3804 12 in the landscaping, grading, and beautification subclassification. The arborist may 13 bid and perform the arborist work described in R.S. 3:3808(A)(1)(a), statewide, after 14 applying to the board for an exemption on a form prepared by the board. 15 (2) Nothing in this Subsection shall be construed to permit arborists to 16 recommend or execute arborist work without first complying with the licensure 17 provisions of Chapter 24 of Title 3 of the Louisiana Revised Statutes of 1950, R.S. 18 3:3801 et seq. 19 M. L. The board may consolidate, add, or remove subclassifications or 20 specialties by rule as it deems appropriate. 21 §2156.2. Major categories; subclassifications; specialty classifications; requirements 22 for contractors holding major classification to perform mechanical, electric, 23 or plumbing work 24 A. Any contractor possessing a major classification is permitted to bid or 25 perform any of the specialty type work required to perform its scope of work for its 26 respective classification. Under each major category listed in this Subsection is a list 27 of subclassifications that a specialty contractor may obtain, as follows: Page 24 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 I. Building construction 2 Subclassifications: 3 1. Acoustical treatments 4 2. Air conditioning work, ventilation, refrigeration, and duct work 5 3. Electrical construction for structures 6 4. Fire sprinkler work 7 5. 3. Foundations for buildings, equipment, or machinery 8 6. 4. Incinerator construction 9 7. 5. Installation of equipment, machinery, and engines 10 8. 6. Installation of pneumatic tubes and conveyors 11 9. 7. Insulation for cold storage and buildings 12 10. 8. Insulation for pipes and boilers 13 11. 9. Landscaping, grading, and beautification 14 12. 10. Lathing, plastering, and stuccoing 15 13. 11. Masonry, brick, stone 16 14. Ornamental iron and structural steel erection, steel buildings 17 15. 12. Painting and interior decorating, carpeting flooring 18 16. 13. Pile driving 19 17. Plumbing 20 18. Residential construction 21 19. 14. Rigging, house moving, wrecking, and dismantling 22 20. 15. Roof decks 23 21. 16. Roofing and sheet metal, siding 24 22. 17. Sheet metal duct work 25 23. 18. Steam and hot water heating in buildings or plants 26 19. Steel erection and installation 27 24. 20. Stone, granite, slate, resilient floor installations 28 25. 21. Swimming pools 29 26. 22. Tile, terrazzo, and marble Page 25 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 27. 23. Water cooling towers and accessories 2 28. 24. Drywalls 3 29. 25. Driveways, parking areas, asphalt, and concrete, exclusive of 4 highway and street work 5 30. 26. Fencing 6 27. Labor only 7 II. Highway, street, and bridge construction 8 Subclassifications: 9 1. Driveways, parking areas, asphalt, and concrete 10 2. Highway and street subsurface drainage and sewer work 11 3. Permanent or paved highways and streets (asphalt hot and cold plant mix) 12 4. Permanent or paved highways and streets (asphalt surface treatment) 13 5. Permanent or paved highways and streets (concrete) 14 6. Permanent or paved highways and streets (soil cement) 15 7. Secondary roads 16 8. Undersealing or leveling of roads 17 9. Earthwork, drainage, and levees 18 10. Clearing, grubbing, and snagging 19 11. Culverts and drainage structures 20 12. Concrete bridges Bridges, over and underpasses 21 13. Steel bridges, over and underpasses 22 14. Wood bridges, over and underpasses 23 15. Landscaping, grading, and beautification 24 16. 14. Fencing 25 17. 15. Furnishing and installation of movable structures or machinery, 26 excluding electrical and mechanical work 27 16. Labor only 28 III. Heavy construction 29 Subclassifications: Page 26 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 1. Clearing, grubbing, and snagging 2 2. Dams, reservoirs, and flood control work other than levees 3 3. Dredging 4 4. Electrical transmission lines 5 5. Foundations and pile driving 6 6. Industrial piping 7 7. Industrial plants 8 8. Industrial ventilation 9 9. Oil field construction 10 10. Oil refineries 11 11. Railroads 12 12. 11. Transmission pipeline construction 13 13. 12. Tunnels 14 14. 13. Wharves, docks, harbor improvements, and terminals 15 15. 14. Landscaping, grading, and beautification 16 16. 15. Fencing 17 16. Labor only 18 IV. Municipal and public works construction 19 Subclassifications: 20 1. Filter plants and water purification 21 2. Pipe work (gas lines) 22 3. Pipe work (sewer) 23 4. Pipe work (storm drains) 24 5. Pipe work (waterlines) 25 6. Power plants 26 7. Sewer plant or sewer disposal 27 8. Underground electrical conduit installation 28 9. Landscaping, grading, and beautification 29 10. Fencing Page 27 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 11. Labor only 2 V. Electrical work 3 Subclassifications: 4 1. Electrical transmission lines 5 2. Electrical work for structures 6 3. Underground electrical conduit installation 7 4. 3. Electrical controls 8 VI. Mechanical Work 9 Subclassifications: 10 1. Heat, air conditioning, ventilation, duct work, and refrigeration 11 2. Industrial pipe work and insulation 12 3. Plumbing 13 4. Controls for mechanical work 14 VII. Plumbing 15 Subclassifications: 16 1. Potable and nonpotable water systems; construction, removal, repair, and 17 maintenance for buildings and premises. 18 2. Sanitary and nonsanitary waste and sewerage construction; removal, 19 repair, and maintenance for buildings and premises. 20 VII. VIII. Hazardous materials 21 Subclassifications: 22 1. Asbestos removal and abatement 23 2. Hazardous materials cleanup and waste treatment or removal 24 3. Hazardous materials site remediation 25 4. Any other classification for which the Department of Environmental 26 Quality requires certification pursuant to law or regulation. Page 28 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 VIII. Plumbing 2 Subclassifications: 3 1. Potable and nonpotable water systems; construction, removal, repair, and 4 maintenance for buildings and premises. 5 2. Sanitary and nonsanitary waste and sewerage construction; removal, 6 repair, and maintenance for buildings and premises. 7 IX. Residential construction 8 1. Foundations 9 2. Framing 10 3. Roofing 11 4. Masonry and stucco 12 5. Swimming pools 13 6. Pile-driving 14 7. Labor only 15 B. Any contractor who holds a major classification which permits that 16 contractor to bid mechanical or electrical work, prior to the performance of such 17 work under his license, shall designate a qualifying party to successfully pass the 18 standardized nationally recognized test administered by the board for the work to be 19 performed. All time limitations shall be waived and any designated qualifying party 20 who has successfully completed the examination shall not be required to retake the 21 examination. 22 C. Any contractor who holds a major classification which permits the 23 contractor to bid and perform plumbing work, prior to the performance of such work, 24 shall comply with the provisions of Chapter 16 of this Title, R.S. 37:1361 et seq. All 25 time limitations shall be waived. 26 D. The board may grant or renew licenses for mechanical, electrical, or 27 plumbing contractors and restrict such licenses to the bidding and performance of 28 work within specified areas of this state as the board shall designate. Such license 29 shall be issued with a notation of the applicable restriction. Page 29 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 §2156.3. Installation of solar energy equipment and systems 2 A. No licensed contractor shall install solar energy equipment or solar 3 energy systems on or after February 1, 2015, unless he is in compliance with the 4 provisions of this Section and any rules adopted by the board in accordance with the 5 provisions of this Section. 6 B.(1) Notwithstanding any provision of law to the contrary, no later than 7 January 1, 2015, the board shall adopt rules in accordance with the Administrative 8 Procedure Act regulating the installation of solar energy equipment or solar energy 9 systems by licensed contractors. Such rules shall, at a minimum, include the 10 requirement of passage of a separate written examination that evidences the 11 contractor's knowledge and understanding of best practices as related to the 12 installation and maintenance of solar energy equipment or solar energy systems by 13 any contractor who does not hold a current Solar PV Installer certification for solar 14 electric systems, or a current Solar Heating Installer certification for solar thermal 15 hot water systems as issued by the North American Board of Certified Energy 16 Practitioners. 17 (2) Any contractor licensed in this state as of August 1, 2014, holding the 18 major classification of Building Construction, Electrical Work (Statewide), or 19 Mechanical Work (Statewide), shall be deemed to have met the examination 20 requirement pursuant to this Subsection. 21 C. Contractors applying for the classification of Solar Energy Equipment, 22 shall, in addition to all other application or licensing requirements, meet the 23 following requirements prior to issuance of this classification: 24 (1) Hold hold one or more of the following major classifications: 25 (a) (1) Building Construction. 26 (b) (2) Electrical Work. 27 (c) (3) Mechanical Work. 28 (d) (4) Residential Building Contractor Construction. Page 30 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (2) Complete training in the design of solar energy systems by an entity and 2 course approved by the board. 3 D. Any work performed to connect wiring or hookups for any photovoltaic 4 panel or system wherein the panel or system is of a value, including labor, materials, 5 rentals, and all direct and indirect project expenses, of ten thousand dollars or more 6 shall be performed only by a contractor or subcontractor who holds the classification 7 of to perform Electrical Work or who may perform electrical work pursuant to the 8 provisions of R.S. 37:2156.2(B). 9 E. Any work performed to connect piping or equipment for any solar thermal 10 system wherein the system is of a value, including labor, materials, rentals, and all 11 direct and indirect project expenses, of ten thousand dollars or more shall be 12 performed only by a contractor or subcontractor who holds the classification of to 13 perform Mechanical Work or who may perform mechanical work pursuant to the 14 provisions of R.S. 37:2156.2(B). 15 F. The provisions of this Section shall be applicable to entities engaging in 16 the business of selling, leasing, installing, servicing, or monitoring solar energy 17 equipment. Nothing in this Section shall be construed to impose civil or criminal 18 liability on homeowners or on any third party whose involvement is financing to the 19 homeowner, financing for installation, or purchasing the tax credits described in this 20 Section from any homeowner or contractor. Entities engaged in the business of 21 arranging agreements for the lease or sale of solar energy systems or acquiring 22 customers for financing entities shall not be exempt from the provisions of this 23 Section. 24 §2157. Exemptions 25 A. The provisions of this Part shall not apply to any of the following: 26 (1) The state or any of its political subdivisions. 27 (2) Any public utility providing gas, electric, or telephone service which is 28 subject to regulation by the Louisiana Public Service Commission or the council of Page 31 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 the city of New Orleans, or to any work performed by the public utility in furnishing 2 its authorized service. 3 (2) (3) Owners of property who supervise, superintend, oversee, direct, or 4 in any manner assume charge of the construction, alteration, repair, improvement, 5 movement, demolition, putting up, tearing down, or maintenance of any building, 6 railroad excavation, project, development, improvement, plant facility, or any other 7 construction undertaking, on that property, for use by the owner, and which will not 8 be for sale or rent, and the control of access to which shall be controlled by the 9 owner so that only employees and nonpublic invitees are allowed access. 10 (3) (4) Any person donating labor and services for the supervision and 11 construction of or for the maintenance and repair of churches. 12 (4) (5) Any farmer doing construction for agricultural purposes on leased 13 or owned land. 14 (5) (6) Any person bidding or performing work on any project totally owned 15 by the federal government. 16 (6) (7) Any person engaged in rail or pipeline construction activities 17 performed on property he owns or leases. 18 (7) (8) Any citizen volunteering labor for the construction of a project which 19 is funded by the Louisiana Community Development Block Grant, Louisiana Small 20 Towns Environment Program. 21 (8) (9) Any person, supplier, or manufacturer, or the employee of the person, 22 supplier, or manufacturer who assembles, repairs, maintains, moves, puts up, tears 23 down, or disassembles any patented or proprietary environmental equipment he 24 supplies supplied to a contractor to be used solely by the contractor for a construction 25 undertaking project. 26 (9) (10) The manufactured housing industry or any person engaged in any 27 type of service, warranty, repair, or home improvement work on factory-built, 28 residential dwellings that are mounted on chassis and wheels. Page 32 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (10) (11) Any person bidding or performing work on any project paid for by 2 monies from the Oilfield Site Restoration Fund or Coronavirus Aid, Relief, and 3 Economic Security (CARES) Act. 4 (12) Any work covering dewatering or water mitigation. 5 (13) Any employee of any contractor. 6 (14) Owners of property who supervise, superintend, oversee, direct, or in 7 any manner assume charge of the construction, alteration, repair, improvement, 8 movement, demolition, putting up, tearing down, or maintenance of their personal 9 residences, if the homeowner does not build more than one residence per year. The 10 one-year period shall commence on the date of occupancy of the residence. 11 However, an owner of property may build more than one single family dwelling in 12 a one-year period if the construction of an additional residence occurs as a result of 13 a change in the legal marital status of the owner or change in the employment status 14 of the owner whereby the owner must relocate to another employment location, 15 which is located in excess of fifty miles from his personal residence. 16 (15) Persons performing the work of a residential contractor in areas or 17 municipalities that do not have a permitting procedure. 18 (16) The following persons are exempt from home improvement licensure: 19 (a) A residential property owner who physically performs the home 20 improvement work on his personal residence. 21 (b) Persons licensed as a building construction contractor or residential 22 contractor. 23 (c) Any person who works exclusively in any of the following home 24 improvement areas: 25 (i) Landscaping. 26 (ii) Interior painting or wall covering. 27 (17) The following persons are exempt from mold remediation licensure: 28 (a) A residential property owner who performs mold remediation on his own 29 property. Page 33 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (b) An owner or tenant, or a managing agent or employee of an owner or 2 tenant, who performs mold remediation on property owned or leased by the owner 3 or tenant. This exemption does not apply if the managing agent or employee 4 engages in the business of performing mold remediation for the public. 5 B. However, the provisions of this Chapter shall apply to any contractor 6 employed by any party exempted by this Section. The provisions of this Section 7 shall not be construed to waive local and state health and life safety code 8 requirements. 9 §2158. Revocation, suspension, and renewal and suspension of licenses; issuance 10 of cease and desist orders; debarment; violations; penalty; criminal penalty 11 A. No person may engage in the business of contracting, or act as a 12 contractor as defined in this Chapter, unless he holds an active license as a contractor 13 in accordance with the provisions of this Chapter. The board and residential 14 subcommittee may revoke, suspend, or refuse to renew a license; issue cease and 15 desist orders to stop work; issue fines and penalties; or debar any person or licensee 16 licensed pursuant to the provisions of this Chapter for any of the following causes 17 violations: 18 (1) Undertaking, attempting to, or submitting a price or bid; offering to 19 construct, supervise, superintend, oversee, direct, or in any manner assume charge 20 of the construction, alteration, repair, improvement, movement, demolition, putting 21 up, tearing down; furnishing labor or furnishing labor together with material or 22 equipment; or installing material or equipment for any building, highway, road, 23 railroad, sewer grading, excavation, pipeline, public utility structure, project 24 development, housing, or housing development, improvement, or any other 25 construction undertaking without possessing a license for which a license is required 26 or without possessing a license with the proper classification. 27 (2) Falsely representing or advertising regarding the person's license status 28 or classification. Page 34 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (3) Any dishonest or fraudulent act as a contractor which has caused damage 2 to another, as adjudged by a court of competent jurisdiction. 3 (2) Willful misrepresentation of fact by an applicant in obtaining a license. 4 (4) Bidding on, quoting, estimating, or performing a job for which a license 5 is required, the licensee shall hold the classification for the majority of work 6 performed. 7 (5) Misrepresentation of fact by an applicant in obtaining a license; 8 misrepresentation of fact by an applicant or licensee in providing information, 9 statements, or documents to the staff or board; deception by omission; and providing 10 false testimony to the board. 11 (3) (6) Willful failure Failure to comply with the provisions of this Chapter 12 or the rules and regulations promulgated pursuant thereto. 13 (4) (7) Entering into a contract with an unlicensed contractor involving work 14 or activity for the performance of which a license is required by this Chapter. 15 (5) (8) Permitting the contractor's license to be used by another contractor 16 when the other contractor does not hold a license for the classification of work for 17 which the contract is entered. 18 (6) (9) Failure to maintain a qualifying party to represent the licensee. 19 (7) Insolvency or involuntary cessation of business operation. 20 (8) (10) Failure to continue to fulfill any of the requirements for original 21 licensure. 22 (9) (11) Problems relating to the ability of the contractor, its qualifying party, 23 or any of its principal owners or principal shareholders to engage in the business of 24 contracting, as demonstrated by their contracting business history or experience. 25 (10) (12) Disqualification or debarment by any public entity. 26 (11) Failure to possess any insurance required by federal law. 27 (12) (13) Failure to timely notify the board of any change in corporate name, 28 company name, address of the licensee, or any other contact information as required. 29 (14) Assisting a person to circumvent the provisions of this Chapter. Page 35 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (15) Failure of a contractor performing residential or home improvement 2 construction in accordance with this Chapter to provide, in writing to the party with 3 whom he has contracted to perform contracting services, his name, contracting 4 license number, classification, and current insurance certificates evidencing the 5 amount of liability insurance maintained and proof of workers' compensation 6 coverage when requested by the contracting party for whom the work is to be 7 performed. 8 (16) Abandoning or failing to perform, without justification, any contract or 9 project engaged in or undertaken by any licensee or deviating from or disregarding 10 plans or specifications in any material respect without the consent of the owner. 11 (17) Conviction of a crime or the entering of a plea of guilty or nolo 12 contendere to a criminal charge under the laws of the United States or any other state 13 related to the construction business involving dishonesty or causing physical harm 14 or damages to another person. 15 (18) Efforts to deceive or defraud the public. 16 (19) It is a violation for a mold remediation contractor to: 17 (a) Fail to provide a written report to each person for whom he performs 18 such services for compensation. 19 (b) Render, submit, subscribe, or verify false, deceptive, misleading or 20 unfounded opinions or reports. 21 (c) Perform both mold assessment and mold remediation on the same 22 property. 23 (d) Own an interest in both the entity which performs mold assessment 24 services and the entity which performs mold remediation services on the same 25 property. 26 B.(1) In order to enforce the provisions of this Chapter, the board may 27 conduct hearings in accordance with the provisions of R.S. 49:951 through 965.1. 28 The board shall maintain and make available a record of all persons or licensees who 29 have been disqualified by any public entity pursuant to R.S. 39:1672. If any person Page 36 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 or licensee has been disqualified more than once in a twelve-month period, the board 2 shall hold a debarment hearing. In determining the value of a project, any division 3 of a contract or scope of work into parts which would avoid the necessity of a license 4 to bid, contract, or perform the work, will be disregarded, and the divided parts of 5 the contract or scope of work will be treated as one contract or scope of work for 6 purposes of determining whether a license is required. 7 (2) After the hearing, if the board rules that a person has violated any 8 provision of this Chapter, or that a person or licensee has been appropriately 9 disqualified more than once in a twelve-month period, in lieu of revoking or 10 suspending the license, the board may order the person to immediately discontinue 11 all work on the construction project which is the subject of the hearing, debar a 12 person or licensee from bidding on projects for any public entity for up to three 13 years, or both. Additionally, the board may require the licensee to pay the actual 14 costs incurred by the board in connection with the investigation and to conduct the 15 hearing. In accordance with R.S. 49:964, the board may grant a stay of the 16 enforcement of its order for good cause. For the purpose of determining a scope of 17 work, the board shall review whether the contract or contracts in question constitute 18 a single scope of work or whether they constitute separate scopes of work. The 19 board may be guided in this interpretation by a review of the drawings, plot plans, 20 blueprints, architectural plans, site maps, technical drawings, engineering designs, 21 sketches, diagrams, black lines, blue lines, drafts, or other renderings depicting the 22 total scope of work. 23 C. In the event of a revocation of a license or a qualifying party status, the 24 person or qualifying party shall be ineligible to apply for a license or qualifying party 25 status for one year following the revocation. 26 D. The board may refuse to license any entity that has been debarred 27 pursuant to R.S. 39:1672. Further, the board may hold a hearing for any licensee 28 debarred pursuant to R.S. 39:1672 and suspend or revoke a license, order the licensee Page 37 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 to discontinue all work on a construction project, or further debar a person or 2 licensee from bidding on projects for any public entity for up to three years. 3 (3) E. Any party to the proceeding who is aggrieved by the action of the 4 board may appeal the decision in accordance with R.S. 49:951 through 965.1. 5 C. The board may sue and be sued and, to that end, shall have the authority 6 to apply to a court of competent jurisdiction for a temporary restraining order and a 7 writ of injunction to restrain and prohibit any violation of this Chapter and the 8 performance of any work then being done or about to commence. 9 D. F. In accordance with the provisions of R.S. 49:951 through 965.1, any 10 person who applies for and is denied a license by the board, or whose license has 11 been revoked, rescinded, or suspended, may apply appeal to the Nineteenth Judicial 12 District Court in and for the parish of East Baton Rouge to determine whether the 13 board has abused its discretion. 14 E. In addition to actions taken by the board, it shall be unlawful for any 15 person to engage in the business of contracting without authority as provided in R.S. 16 37:2160. 17 §2159. Classification; bidding and performing work within a classification Home 18 improvement contracting; written contract required; claims of unlicensed 19 persons 20 A. Before issuing a license to any contractor, the board shall state the 21 contractor's classification on the license, according to the classification requested by 22 the contractor and for which he has completed all of the requirements. Every 23 agreement for any licensee to perform home improvement contracting services, as 24 defined by this Chapter, in an amount in excess of seven thousand five hundred 25 dollars, but not in excess of seventy-five thousand dollars, shall be in writing and 26 shall include the following documents and information: 27 (1) The complete agreement between the owner and the contractor and a 28 clear description of any other documents which are or shall be incorporated into the 29 agreement, including current insurance certificates evidencing the amount of liability Page 38 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 insurance maintained and proof of workers' compensation coverage by any person 2 required to be as a home improvement contractor. 3 (2) The full names, addresses, and the license number of the contractor. 4 (3) A description of the work to be performed. 5 (4)(a) The total amount agreed to be paid for the work to be performed under 6 the contract. 7 (b) An approximation of the cost expected to be borne by the owner under 8 a cost-plus contract or a time-and-materials contract. 9 (5) The signature of all parties. 10 B. The licensee shall not be permitted to bid or perform any type of work not 11 included in the classification under which his license was issued. At the time of 12 signing, the owner shall be furnished with a copy of the contract signed by both the 13 home improvement contractor and the owner. No work shall begin prior to the 14 signing of the contract and transmittal to the owner of a copy of the contract. 15 C. The licensee may apply for and receive additions to or changes in his 16 classification by applying, successfully completing the written examination, and 17 paying the required fees. Additions or changes to an existing license shall become 18 effective after completion of the requirements and upon board approval. Contracts 19 which fail to comply with the requirements of this Section shall not be invalid solely 20 because of noncompliance. 21 D. Nothing in this Chapter is to be construed to mean that the board has any 22 authority to determine or fix or suggest the amount of a contractor's bid limit. No 23 home improvement contractor who fails to obtain a license as provided for in this 24 Chapter shall be entitled to file a statement of claim or a statement of lien or 25 privilege with respect to monetary sums allegedly owed under any contract, whether 26 express, implied, or otherwise, when any provision of this Chapter requires that the 27 home improvement contractor possess a home improvement license issued by the 28 residential subcommittee in order to have properly entered into such a contract. Page 39 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 §2160. Engaging in business of contracting without authority prohibited; penalty 2 Local regulatory authority; permit offices; staff; building permits 3 A.(1) It shall be unlawful for any person to engage or to continue in this state 4 in the business of contracting, or to act as a contractor as defined in this Chapter, 5 unless he holds an active license as a contractor under the provisions of this Chapter. 6 (2) It shall be unlawful for any contractor, licensed or unlicensed, who 7 advertises in any form or in any news medium, to advertise that he is a licensed 8 contractor without specifying the type of license to which he is referring. Each month 9 the staff of the board may inspect the list of permits issued by each local building 10 permit official in this state to ensure that no person is working as a contractor 11 without an active license. Upon request, parish and municipal permitting authorities 12 shall provide to board staff, all unredacted documents relating to building permits, 13 applications, and inspections. 14 B. It shall be sufficient for the indictment, affidavit, or complaint to allege 15 that the accused unlawfully engaged in business as a contractor without authority 16 from the State Licensing Board for Contractors. Prior to the issuance of any building 17 permit, the local building permit official shall require that the applicant for such 18 permit produce proof that the applicant possesses an appropriate, applicable 19 contractor's license issued by the board, or that the applicant's proposed building 20 activity is exempt from such licensure in accordance with this Chapter. 21 C.(1) Anyone violating this Section of this Chapter shall be guilty of a 22 misdemeanor and, upon conviction, shall be fined a sum not to exceed five hundred 23 dollars per day of violation, or three months in prison, or both. 24 (2) Notwithstanding any action taken by the board, any person, who does not 25 possess a license from the board, and who violates any of the provisions of this 26 Section, and causes harm or damage to another in excess of three hundred dollars, 27 upon conviction, shall be fined not less than five hundred dollars nor more than five 28 thousand dollars, or imprisoned, with or without hard labor, for not less than six 29 months nor more than five years, or both. Page 40 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (3) Any fine so assessed and collected shall be remitted to the contractor's 2 educational trust fund provided for in R.S. 37:2162(J). The local building permit 3 official shall require any applicant claiming an exemption for residential construction 4 activities to execute an affidavit attesting to the claimed exemption. Such affidavit 5 shall be submitted to the local building permit official prior to the issuance of a 6 permit. Such affidavit shall be executed on a form provided by the board. 7 D. The district attorney, in whose jurisdiction the violation occurs, shall have 8 sole authority to prosecute criminal actions pursuant to this Section. The provisions 9 of this Chapter shall preempt any municipal or other local regulatory examination 10 authority over all licensees. If the governing authority or any municipality or parish 11 finds that the state minimum standards do not meet its needs, the local government 12 may provide requirements not less stringent that those specified by the state. 13 §2161. Power to sue and be sued; injunction; restraining orders Construction 14 management 15 The board may sue and be sued and, to that end, shall have the right to go 16 into court in the jurisdiction in which the provisions of this Chapter are being 17 violated, and upon affidavit, secure a temporary restraining order and a writ of 18 injunction restraining and prohibiting the violation of this Chapter and the 19 performance of any work then being done or about to be commenced. 20 A.(1) Any person who performs, attempts to perform, or submits a price, bid, 21 or offer to perform work in construction management whose scope of authority and 22 responsibility include supervision, oversight, direction, or in any manner assumes 23 charge for the construction services provided to an owner by a contractor or 24 contractors, in which the value of the construction project is: 25 (a) In excess of fifty thousand dollars for a commercial construction project, 26 shall possess a license from the board in the major classification applicable to the 27 type of work being performed on the construction project. Page 41 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 (b) In excess of seventy-five thousand dollars for a residential construction 2 project, shall possess a license from the board in the classification of residential 3 construction. 4 (c) In excess of seven thousand five hundred dollars for a home 5 improvement project, shall possess a license from the board in the classification of 6 home improvement construction. 7 (2) An architect or engineer ensuring compliance with the plans and 8 specifications for the construction project on behalf of the owner, or construction 9 manager whose scope of authority and responsibilities do not include any of the tasks 10 provided for in this Subsection and does not subcontract actual construction work, 11 is not required to obtain a contractor's license. 12 (3) An employee of the owner who supervises the construction or ensures 13 compliance with the plans and specifications on behalf of the owner but does not bid 14 or perform construction work for which a license is required does not have to be 15 licensed. 16 §2162. Violations; civil penalty; jurisdiction Joint venture 17 A. Any person who violates any provision of this Chapter shall, after notice 18 and a hearing, be liable to the board for a fine of up to ten percent of the total 19 contract or the value of the work being performed for which there is a violation. In 20 addition to the fine, the board may impose costs and attorney fees for each offense. 21 If the board brings an action against a person pursuant to this Section and fails to 22 prove its case, it shall be liable to the person for the payment of his reasonable 23 litigation expenses as defined in R.S. 49:965.1(D). 24 B. In addition to or in lieu of the criminal penalties and administrative 25 sanctions provided in this Chapter, the board may issue an order to cease and desist 26 to any person or firm engaged in any activity, conduct, or practice constituting a 27 violation of any provision of this Chapter. The order shall be issued in the name of 28 the state of Louisiana under the official seal of the board. Page 42 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 C. If the person or firm to whom the board directs a cease and desist order 2 does not cease or desist the proscribed activity, conduct, or practice immediately, the 3 board may cause to issue in any court of competent jurisdiction and proper venue, 4 a writ of injunction enjoining the person or firm from engaging in any activity, 5 conduct, or practice prohibited by this Chapter. 6 D. Upon proper showing by the board that a person or firm has engaged or 7 is engaged in any activity, conduct, or practice prohibited by this Chapter, the courts 8 shall issue a temporary restraining order restraining the person or firm from engaging 9 in the unlawful activity, conduct, or practice pending the hearing on a preliminary 10 injunction. In due course, a permanent injunction shall be issued after a hearing, 11 commanding the cessation of the unlawful activity, conduct, or practice without the 12 board having to give bond. A temporary restraining order, preliminary injunction, 13 or permanent injunction issued pursuant to the provisions of this Section shall not be 14 subject to being released upon bond. 15 E. In the suit for an injunction, the board may demand of the defendant a 16 penalty as provided in Subsection A of this Section. A judgment for penalty, 17 attorney fees, and costs may be rendered in the same judgment in which the 18 injunction is made absolute. If the board brings an action against a person pursuant 19 to the provisions of this Section and fails to prove its case, then it shall be liable to 20 the person for the payment of his attorney fees and costs. 21 F. The trial of the proceeding by injunction shall be summary and by the 22 judge without a jury.* 23 G. Anyone violating this Chapter who fails to cease work, after proper 24 hearing and notification from the board, shall not be eligible to apply for a 25 contractor's license for a period not to exceed one year from the date of official 26 notification to cease work. 27 H. It shall be within the power of the board to withhold approval, for up to 28 six months, of any application from anyone who, prior to said application, has been 29 found in violation of this Chapter. Page 43 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 I. All fines or penalties collected by the board pursuant to the provisions of 2 this Section for violations of any provision of this Chapter shall, annually, at each 3 audit of the board, be transferred to a separate contractor's educational trust fund to 4 be used for educational purposes as determined by the board. 5 J. Upon the expiration of the delays set forth in the Administrative Procedure 6 Act for an aggrieved party to appeal any fine or penalty assessed by the board, if an 7 appeal has not been so filed, the board may initiate civil proceedings against the 8 party seeking to obtain a judgment against that party in an amount equivalent to the 9 amount of the fine assessed, together with legal interest and all reasonable attorney 10 fees incurred by the board in bringing the action. The proceedings shall be 11 conducted on a summary basis, with the defendant being limited to the defense of 12 lack of notice as to the meeting of the board during which the fine was assessed. All 13 proceedings brought pursuant to the provisions of this Subsection shall lie in any 14 court of competent jurisdiction in this state. 15 K. In addition to all other authority granted to the board by the provisions of 16 this Chapter, the board shall have the authority to cause to be issued to any person 17 who is alleged to have violated any of the provisions of this Chapter a citation setting 18 forth the nature of the alleged violation, which provides to that person the option of 19 either pleading no contest to the charge and paying a fine to the board prescribed by 20 any provision of this Chapter or appearing at an administrative hearing conducted by 21 the board regarding the alleged violation. The citations may be issued by any 22 authorized employee of the board, and may be issued either in person or via the 23 United States Postal Service, postage prepaid and properly addressed. This 24 Subsection shall not be applicable to any criminal enforcement action brought 25 pursuant to the provisions of this Chapter. 26 L. Any person registered or licensed pursuant to the provisions of this 27 Chapter who is the subject of two or more complaints received by the board within 28 a six month period shall have his name and the nature of each complaint received 29 posted on the board's website. Page 44 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 When two or more persons bid, contract, or perform construction work as a 2 joint venture on any project for which a contractor's license is required, the joint 3 venture is required to be properly licensed by the board at the time of bid, contract, 4 and performance of work in the classification for which the joint venture will 5 perform work. This requirement applies to but is not limited to a corporation, 6 limited liability company, limited liability partnership, general partnership, and any 7 other entity operating as a joint venture on a project for which a contractor's license 8 is required from this board. This licensing requirement is required before persons 9 or contractors are permitted to bid, contract, or perform work on a project for which 10 a license is required regardless of whether they intended to operate as a joint venture. 11 §2163. Bid procedures; penalty Engaging in business of contracting without 12 authority prohibited; penalty 13 A.(1) It is the intent of this Section that only contractors who hold an active 14 license be awarded contracts either by bid or through negotiation. All architects, 15 engineers, and awarding authorities shall place in their bid specifications the 16 requirement that a contractor shall certify that he holds an active license under the 17 provisions of this Chapter by displaying his license number on the bid envelope. In 18 the case of an electronic bid proposal, a contractor may submit an authentic digital 19 signature on the electronic bid proposal accompanied by the contractor's license 20 number in order to meet the requirements of this Paragraph. Except as otherwise 21 provided herein, if the bid does not display the contractor's license number on the bid 22 envelope, the bid shall be automatically rejected, shall be returned to the bidder 23 marked "Rejected", and shall not be read aloud. It shall be unlawful for any person 24 to engage or to continue in this state in the business of contracting, or to act as a 25 contractor as defined in this Chapter, unless he holds an active license as a contractor 26 in accordance with the provisions of this Chapter. 27 (2) Any bid that does not require the contractor to hold an active license shall 28 state the exemption on the bid envelope and shall be treated as a lawful bid for the 29 purpose of this Section. It shall be unlawful for any contractor, licensed or Page 45 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 unlicensed, who advertises in any form or in any news medium, to advertise that he 2 is a licensed contractor without specifying the type of license to which he is 3 referring. 4 B. It shall be sufficient for the indictment, affidavit, or complaint to allege 5 that the accused unlawfully engaged in business as a contractor without authority 6 from the board. 7 C.(1) Anyone found to be in violation of this Section shall be guilty of a 8 misdemeanor and, upon conviction, shall be fined a sum not to exceed five hundred 9 dollars per day of violation, or three months in prison, or both. 10 (2) Notwithstanding any action taken by the board, any person who does not 11 possess a license from the board and violates any of the provisions of this Section, 12 and causes harm or damage to another in excess of three hundred dollars, upon 13 conviction, shall be fined not less than five hundred dollars nor more than five 14 thousand dollars, or imprisoned, with or without hard labor, for not less than six 15 months nor more than five years, or both. 16 (3) On any project that has been classified by the architect or engineer, prior 17 to the bid, as a plumbing project, bids may only be accepted from those who have as 18 a qualifying party a person who has complied with the provisions of Chapter 16 of 19 this Title, R.S. 37:1361 et seq. Any fine assessed and collected in accordance with 20 the provisions of this Section shall be remitted to the contractor's educational trust 21 fund provided for in R.S. 37:2164(I). 22 (4) Any contractor who submits a bid for a type of construction for which 23 he does not hold an active license to perform shall be acting in violation of this 24 Section and shall be subject to all provisions for violations and penalties thereof. 25 (5) Any subcontractor who submits a bid or quotes a price to any unlicensed 26 or inactive prime contractor shall be subject to all provisions for violations and 27 penalties thereof. 28 B. In no event shall proposal forms be issued later than twenty-four hours 29 prior to the hour and date set for receiving proposals. Page 46 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 C. The architect, engineer, or awarding authority shall classify public 2 projects. Once the project is classified, any interested person may object by sending 3 a certified letter to both the board and the architect, engineer, or awarding authority 4 stating with particularity the reasons for the objection. The objection shall be 5 received by the board and by the architect, engineer, or awarding authority at least 6 ten working days prior to the date on which bids are to be opened and then submitted 7 to a committee for determination. The chairman of the board shall appoint the 8 committee which shall consist of board members. The committee may approve the 9 project classification or add an additional classification by vote of a majority of the 10 members of the committee. The matter shall be resolved and the board shall notify 11 the architect, engineer, and awarding authority no less than five days prior to the time 12 when bids are to be opened, unless all parties agree that a delay will not cause harm 13 to others. 14 D.(1) Any awarding authority or its agent who violates the provisions of this 15 Section shall be deemed guilty of a misdemeanor and, upon conviction, be punished 16 by a fine of not less than one hundred dollars or more than two hundred dollars or 17 imprisonment in the parish jail for not less than thirty days nor more than sixty days, 18 or both. Any fine and imprisonment are at the discretion of the court. 19 (2) In addition, the board may, after notice and a hearing, impose a fine upon 20 any awarding authority or its agent who intentionally violates the provisions of this 21 Section. The board may not impose any fine as authorized by this Paragraph on the 22 state, its agencies, boards, or commissions, or any political subdivision thereof. 23 The district attorney in whose jurisdiction the violation occurs shall have sole 24 authority to prosecute criminal actions pursuant to this Section. 25 §2164. Reciprocity Violations; civil penalty; jurisdiction 26 Any applicant holding a license in good standing in a comparable 27 classification in another state recognized by the respective agency as a reciprocity 28 state may have the trade portion of the examination waived upon written certification 29 from that state in which the applicant is licensed. The business law portion of the Page 47 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 examination and the provisions of R.S. 37:2156.1 shall not be waived. Applicants 2 shall comply with all other licensing requirements of this state; however, for good 3 cause, the board may waive any other licensing requirement. 4 A. Any person who violates any provision of this Chapter shall, after notice 5 and a hearing, be liable to the board for a fine of up to ten percent of the total 6 contract or the value of the work bid or being performed for which there is a 7 violation. In addition to the fine, the board may impose administrative costs and 8 attorney fees for each offense. In determining whether to impose an administrative 9 penalty, the board or residential subcommittee shall consider the seriousness of the 10 violation, cooperation on the part of the contractor, and the history of previous 11 violations. 12 B. In addition to or in lieu of the criminal penalties and administrative 13 sanctions provided in this Chapter, the board may issue an order to cease and desist 14 to any person or firm engaged in any activity, conduct, or practice constituting a 15 violation of any provision of this Chapter. The order shall be issued in the name of 16 the state of Louisiana under the official seal of the board. 17 C. If the person or firm to whom the board directs a cease and desist order 18 does not cease or desist the proscribed activity, conduct, or practice immediately, the 19 board may cause to issue in any court of competent jurisdiction and proper venue, 20 a writ of injunction enjoining the person or firm from engaging in any activity, 21 conduct, or practice prohibited by this Chapter. 22 D. Upon proper showing by the board that a person or firm has engaged or 23 is engaged in any activity, conduct, or practice prohibited by this Chapter, the court 24 shall issue a temporary restraining order restraining the person or firm from engaging 25 in the unlawful activity, conduct, or practice pending the hearing on a preliminary 26 injunction. In due course, a permanent injunction shall be issued after a hearing, 27 commanding the cessation of the unlawful activity, conduct, or practice without the 28 board having to give bond. A temporary restraining order, preliminary injunction, Page 48 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 or permanent injunction issued pursuant to the provisions of this Section shall not be 2 subject to being released upon bond. 3 E. In the suit for an injunction, the board may demand of the defendant a 4 penalty as provided in Subsection A of this Section. A judgment for penalty, 5 attorney fees, and costs may be rendered in the same judgment in which the 6 injunction is made absolute. If the board brings an action against a person pursuant 7 to the provisions of this Section and fails to prove its case, then it shall be liable to 8 the person for the payment of his attorney fees and costs. 9 F. The trial of the proceeding by injunction shall be summary and by the 10 judge without a jury. 11 G. Anyone violating this Chapter who fails to cease work, after proper 12 hearing and notification from the board, shall not be eligible to apply for a 13 contractor's license for a period not to exceed one year from the date of official 14 notification to cease work. 15 H. It shall be within the power of the board to withhold approval, for up to 16 one year, of any application from anyone who, prior to the application, has had his 17 license revoked by the board or residential subcommittee. 18 I. All fines or penalties collected by the board pursuant to the provisions of 19 this Section for violations of any provision of this Chapter shall, annually, at each 20 audit of the board, be transferred to a separate contractor's educational trust fund to 21 be used for educational purposes as determined by the trustees of the fund. The 22 Construction Education Trust Fund shall make an audited financial report to the 23 board annually. 24 J. Upon the expiration of the delays set forth in the Administrative Procedure 25 Act for an aggrieved party to appeal any fine or penalty assessed by the board, if an 26 appeal has not been so filed, the board may initiate civil proceedings against the 27 party seeking to obtain a judgment against that party in an amount equivalent to the 28 amount of the fine assessed, together with legal interest and all reasonable attorney 29 fees incurred by the board in bringing the action. The proceedings shall be Page 49 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 conducted on a summary basis, with the defendant being limited to the defense of 2 lack of notice as to the meeting of the board during which the fine was assessed. All 3 proceedings brought pursuant to the provisions of this Subsection shall lie in any 4 court of competent jurisdiction in this state. 5 K. In addition to all other authority granted to the board by the provisions of 6 this Chapter, the board shall have the authority to cause to be issued to any person 7 who is alleged to have violated any of the provisions of this Chapter a citation setting 8 forth the nature of the alleged violation, which provides to that person the option of 9 either pleading no contest to the charge and paying a fine to the board prescribed by 10 any provision of this Chapter or appearing at an administrative hearing conducted by 11 the board regarding the alleged violation. The citations may be issued by any 12 authorized employee of the board, and may be issued either in person, by certified 13 mail with a return receipt, or by email with a read receipt from the noticed person. 14 This Subsection shall not be applicable to any criminal enforcement action brought 15 pursuant to the provisions of this Chapter. 16 §2165. Residential Building Contractors Subcommittee; membership; terms Bid 17 procedures; penalty 18 A.(1) There is hereby established within the State Licensing Board for 19 Contractors the Residential Building Contractors Subcommittee, consisting of five 20 members who shall be residents of the state of Louisiana and who have been actively 21 engaged in residential contracting for at least five years prior to appointment by the 22 governor. Three members of the subcommittee shall be appointed by the governor 23 from a list of not less than ten names submitted by the Louisiana Homebuilders 24 Association as certified by its president and secretary. One member of the 25 subcommittee shall be appointed to represent congressional district one, one member 26 to represent congressional districts four and five, one member to represent 27 congressional district three, one member to represent congressional district two, and 28 one member to represent congressional district six. It is the intent of this Section that 29 only contractors who hold an appropriate active license be awarded contracts either Page 50 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 by bid or through negotiation. All architects, engineers, and awarding authorities 2 shall place in their bid specifications the requirement that a contractor shall certify 3 that he holds an active license in accordance with the provisions of this Chapter by 4 displaying his license number on the bid envelope. In the case of an electronic bid 5 proposal, a contractor may submit an authentic digital signature on the electronic bid 6 proposal accompanied by the contractor's license number in order to meet the 7 requirements of this Paragraph. Except as otherwise provided herein, if the bid does 8 not display the contractor's license number on the bid envelope, the bid shall be 9 automatically rejected, returned to the bidder marked "Rejected", and not be read 10 aloud. 11 (2) Any bid that does not require the contractor to hold an active license shall 12 state the exemption on the bid envelope and shall be treated as a lawful bid for the 13 purposes of this Section. 14 (3) On any project that has been classified by the architect or engineer, prior 15 to the bid, as a plumbing project, bids may only be accepted from those who have as 16 a qualifying party a person who has complied with the provisions of Chapter 16 of 17 this Title, R.S. 37:1361 et seq. 18 (4) Any contractor who submits a bid for a type of construction for which 19 he does not hold an active license to perform shall be acting in violation of this 20 Section and shall be subject to all provisions for violations and penalties thereof. 21 (5) Any subcontractor who submits a bid or quotes a price to any unlicensed 22 or inactive prime contractor shall be subject to all provisions for violations and 23 penalties thereof. 24 B. The terms of office of the initial members appointed to the subcommittee 25 shall be one for a three-year term, one for a two-year term, and one for a one-year 26 term, to be determined by the governor. Thereafter, all members shall be appointed 27 for three-year terms. All terms shall commence thirty days after the appointment and 28 all members shall serve until their successors have been appointed and qualified. 29 Vacancies occurring in the membership of the subcommittee for any reason shall be Page 51 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 filled by appointment by the governor for the unexpired term. No person shall be 2 appointed for more than two consecutive terms. The governor may remove a 3 member for cause. In no event shall proposal forms be issued later than twenty-four 4 hours prior to the hour and date set for receiving proposals. 5 C. The executive director of the State Licensing Board for Contractors shall 6 serve as executive director of the subcommittee and shall not have voting privileges. 7 The architect, engineer, or awarding authority shall classify public projects. Once 8 the project is classified, any interested person may object by sending a certified letter 9 to both the board and the architect, engineer, or awarding authority stating with 10 particularity the reasons for the objection. The objection shall be submitted to the 11 board and the architect, engineer, or awarding authority in writing by certified mail 12 at least ten working days prior to the date on which bids are to be opened. Upon 13 receipt of the protest for the project classification, the Licensing Board Compliance 14 and Administrative staff will review the scope of work and offer a recommendation 15 for the proper classification to the architect, engineer, or awarding authority within 16 five working days after receipt of the objection. Any objection to the classification 17 not made in accordance with this Section shall be considered waived. 18 D.(1) An ex officio member of the State Licensing Board for Contractors 19 shall serve on the subcommittee and shall serve as the liaison between the 20 subcommittee and the board. He shall be appointed by the chairman of the State 21 Licensing Board for Contractors and shall serve as the chairman of the 22 subcommittee. His presence at a meeting of the subcommittee may be counted 23 toward establishing a quorum of the subcommittee, and he shall only have voting 24 privileges if either of the following circumstances exists: 25 (a) His presence is necessary to establish a quorum of the subcommittee and 26 there is a tie vote between the appointed members of the subcommittee. 27 (b) His presence is necessary to establish a quorum of the subcommittee, 28 only one appointed member of the subcommittee is present, and an additional ex 29 officio member has been appointed pursuant to Paragraph (2) of this Subsection. Page 52 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 Any awarding authority or its agent who violates the provisions of this Section shall 2 be deemed guilty of a misdemeanor and, upon conviction, be punished by a fine of 3 not less than one hundred dollars or more than two hundred dollars or imprisonment 4 in the parish jail for not less than thirty days nor more than sixty days, or both. Any 5 fine and imprisonment are at the discretion of the court. 6 (2) An additional ex officio member of the State Licensing Board for 7 Contractors shall serve on the subcommittee only if his presence, along with the ex 8 officio member serving pursuant to Paragraph (1) of this Subsection, is required to 9 establish a quorum of the subcommittee. This additional ex officio member shall be 10 appointed by the chairman of the State Licensing Board for Contractors and shall 11 serve as the vice chairman of the subcommittee. He shall only have voting privileges 12 if there is a tie vote between an appointed member of the subcommittee and the ex 13 officio member serving as chairman of the subcommittee. In addition to Paragraph 14 (1) of this Subsection, the board may, after notice and a hearing, impose a fine upon 15 any awarding authority or its agent who intentionally violates the provisions of this 16 Section. The board may not impose any fine as authorized by this Paragraph on the 17 state, its agencies, boards, or commissions, or any political subdivision thereof. 18 (3) The State Licensing Board for Contractors shall pay per diem and travel 19 expenses for ex officio members. 20 E. A quorum of the subcommittee shall consist of a majority of its members 21 and the subcommittee shall meet at least once every other month to conduct its 22 business. The executive director shall give written notice to each member of the 23 time and place of each meeting at least ten days prior to the scheduled date of the 24 meeting. 25 F. Each member of the subcommittee shall be entitled to a per diem 26 allowance of seventy-five dollars for each meeting they attend and be reimbursed for 27 all travel expenses necessarily incurred in attending meetings. Page 53 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 22RS-292 ENGROSSED HB NO. 602 1 Section 2. R.S. 37:2152(C), 2166 through 2173, Part II of Chapter 24 of Title 37 of 2the Louisiana Revised Statutes of 1950, comprised of R.S. 37:2175.1 through 2175.6, and 3Chapter 24-A of Title 37 of the Louisiana Revised Statutes of 1950, comprised of R.S. 437:2181 through 2192, are hereby repealed in their entirety. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 602 Engrossed 2022 Regular Session Davis Abstract: Revises and reorganizes provisions of Title 37 of the La. Revised Statutes of 1950 relative to the La. State Licensing Board for Contractors. Present law, through Chapter 24 of Title 37 of the La. Revised Statutes of 1950, governs state law related to contracting and creates the La. State Licensing Board for Contractors (LSLBC) to oversee the occupation of contracting in this state. Present law provides that the board shall oversee home improvement contracting and those present law provisions related to home improvement contracting are designated within Part II of Chapter 24. Present law regulates the occupation of mold remediation and pertinent statutes are designated as Chapter 24-A of Title 37 in present law. Present law also delegates the board as the authority which regulates persons who perform mold remediation in this state. Proposed law reorganizes and consolidates present law provisions related to contracting, home improvement contracting, and mold remediation. Proposed law relocates the provisions of present law relative to home improvement contracting and mold remediation, and incorporates them into the general provisions regarding contracting and the duties and responsibilities of the LSLBC in Chapter 24 of present law. Proposed law deletes duplicative language in present law. Proposed law deletes section numbers of present law and those provisions have been redesignated in proposed law. (Amends R.S. 37:2150.1(intro. para.) and (2)-(13), 2152(Section heading), 2153(A), (E), and (F), and 2154-2165; Adds R.S. 37:2150(14)-(18) and 2153(G); Repeals R.S. 37:2152(C), 2166-2173, 2175.1-2175.6, and 2181-2192) Summary of Amendments Adopted by House The Committee Amendments Proposed by House Committee on Commerce to the original bill: 1. Make technical changes. Page 54 of 54 CODING: Words in struck through type are deletions from existing law; words underscored are additions.