ENROLLED ACT No. 195 2022 Regular Session HOUSE BILL NO. 602 BY REPRESENTATIVE DAVIS 1 AN ACT 2 To 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. 11 Be it enacted by the Legislature of Louisiana: 12 Section 1. R.S. 37:2150.1(introductory paragraph) and (2) through (13), 2152(Section 13 heading), 2153(A), (E), and (F), and 2154 through 2165 are hereby amended and reenacted 14 and 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. 21 intended to be primarily occupied as a residence with no more than four separate 22 dwelling units incorporated into one structure. Page 1 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (3) "Contract" means an agreement to perform a scope of work that is 2 regulated by this Chapter. It includes the entire cost of the construction undertaking, 3 including labor, materials, rentals, and all direct and indirect project expenses. The 4 cost of materials, rentals, and direct and indirect expenses shall be included 5 regardless of who pays the costs or if they are donated. The "principal contract" is 6 the agreement to perform the entire scope of work for a construction project. 7 (4)(a) "Contractor" means any person who undertakes to, attempts to, or 8 submits a price or bid or offers to construct, supervise, superintend, oversee, direct, 9 or in any manner assume charge of the construction, alteration, repair, improvement, 10 movement, demolition, putting up, tearing down, or furnishing labor, or furnishing 11 labor together with material or equipment, or installing the same for material or 12 equipment for any of the following: 13 (i) Any building, highway, road, railroad, sewer, grading, excavation, 14 pipeline, public utility structure, project development, housing, or housing 15 development, improvement, or any other construction undertaking for which the 16 entire cost is fifty thousand dollars or more when the property is to be used for 17 commercial purposes. 18 (ii) Any new residential structure where the entire cost is seventy-five 19 thousand dollars or more when the property is used for residential purposes. 20 (iii) Any improvements or repairs where the entire cost exceeds seven 21 thousand five hundred dollars to an existing residential structure. 22 (iv) Any mold remediation where the entire cost exceeds seven thousand five 23 hundred dollars. 24 (b) The term "contractor" includes general contractors, subcontractors, 25 architects, and engineers persons who receive an additional fee for the employment 26 or direction of labor, or any other work beyond the normal architectural or 27 engineering services. 28 (c) A contractor holding a license in the major classification of hazardous 29 materials, or any subclassifications thereunder, shall be defined in terms of work 30 performed for which the cost is one dollar or more. Page 2 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (d) "Contractor" shall not mean any person, supplier, manufacturer, or 2 employee of such person who assembles, repairs, maintains, moves, puts up, tears 3 down, or disassembles any patented, or proprietary, or patented and proprietary 4 environmental equipment supplied by such person to a contractor to be used solely 5 by the contractor for a construction undertaking. "Proprietary" shall mean specific 6 and specialized equipment installation, manufacturing processes, uses, or 7 components that are protected from disclosure to third parties by the owner or 8 manufacturer of the equipment. 9 (4.1) (5) "Electrical contractor" means any person who undertakes to, 10 attempts to, or submits a price or bid or offers to construct, supervise, superintend, 11 oversee, direct, or in any manner assume charge of the construction, alteration, 12 repair, improvement, movement, demolition, putting up, tearing down, or furnishing 13 labor together with material and equipment, or installing the same for the wiring, 14 fixtures, or appliances for the supply of electricity to any residential, commercial, or 15 other project, when the cost of the undertaking exceeds the sum of ten thousand 16 dollars. This Paragraph shall not be deemed or construed to limit the authority of a 17 contractor, general contractor, or residential building contractor, as those terms are 18 defined in this Section, nor to require such individuals to become an electrical 19 contractor. 20 (5) (6) "Executive director" means the person appointed by the board to 21 serve as the chief operating officer in connection with the day-to-day operation of 22 the board's business. The executive director shall be the appointing authority for all 23 employees of the board. 24 (6)(a) (7)(a) "General contractor" means a person who contracts directly with 25 the owner. The term "general contractor" shall include the term "primary contractor" 26 and wherever used in this Chapter or in regulations promulgated thereunder "primary 27 contractor" shall mean "general contractor". 28 (b) "General contractor" shall not mean any person, supplier, manufacturer, 29 or employee of such person who assembles, repairs, maintains, moves, puts up, tears 30 down, or disassembles any patented, proprietary, or patented and or proprietary Page 3 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 environmental equipment supplied by such person to a contractor to be used solely 2 by the contractor for a construction undertaking. 3 (7) (8) "Home improvement contracting" means the reconstruction, 4 alteration, renovation, repair, modernization, conversion, improvement, removal, or 5 demolition, or the construction of an addition to any pre-existing owner occupied 6 building residential structure which building is used or designed to be used as a 7 residence or dwelling unit, or to structures which are adjacent to such residence or 8 building where the project value exceeds seven thousand five hundred dollars but is 9 not greater than seventy-five thousand dollars. "Home improvement contracting" 10 shall not include services rendered gratuitously. 11 (8) (9) "Home improvement contractor" means any person, including a 12 contractor or subcontractor, who undertakes or attempts to undertake or submits a 13 price or bid on any home improvement contracting project. 14 (8.1) (10) "Mechanical contractor" means any person who undertakes to, 15 attempts to, or submits a price or bid or offers to construct, supervise, superintend, 16 oversee, direct, or in any manner assume charge of the construction, alteration, 17 repair, improvement, movement, demolition, putting up, tearing down, or furnishing 18 labor, or furnishing labor together with material and equipment, or installing the 19 same for the construction, installation, maintenance, testing, and repair of air 20 conditioning, refrigeration, heating systems, and plumbing for all residential, 21 commercial, and industrial applications as well as ventilation systems, mechanical 22 work controls, boilers and other pressure vessels, steam and hot water systems and 23 piping, gas piping and fuel storage, and chilled water and condensing water systems 24 and piping, including but not limited to any type of industrial process piping and 25 related valves, fittings, and components, when the cost of the undertaking exceeds 26 the sum of ten thousand dollars. This Paragraph shall not be deemed or construed 27 to limit the authority of a contractor, general contractor, or residential building 28 contractor, as those terms are defined in this Section, nor to require such individuals 29 to become a mechanical contractor. Page 4 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (11) "Mold remediation contractor" means any person who engages in 2 removal, cleaning, sanitizing, demolition, or other treatment, including preventative 3 activities, of mold or mold-contaminated matter that was not purposely grown at that 4 location and where the costs for such labor and materials exceed seven thousand five 5 hundred dollars. Mold remediation applies only to the regulation of mold-related 6 activities that affect indoor air quality and does not apply to routine cleaning when 7 not conducted for the purpose of mold-related activities intended to affect indoor air 8 quality. 9 (9) (12) "Person" means any individual, firm, partnership, association, 10 cooperative, corporation, limited liability company, limited liability partnership, or 11 any other entity recognized by Louisiana law; and whether or not acting as a 12 principal, trustee, fiduciary, receiver, or as any other kind of legal or personal 13 representative, or as a successor in interest, assignee, agent, factor, servant, 14 employee, director, officer, or any other representative of such person; or any state 15 or local governing authority or political subdivision performing a new construction 16 project which exceeds the contract limits provided in R.S. 38:2212 and which does 17 not constitute regular maintenance of the public facility or facilities which it has been 18 authorized to maintain. 19 (13) "Plumbing contractor" means any person who installs, maintains, and 20 repairs potable and nonpotable tap water or sewer systems within a building structure 21 or residential structure when the cost of the undertaking exceeds the sum of ten 22 thousand dollars. 23 (10) (14) "Qualifying party" means a natural person designated by the 24 contractor to represent the contractor for the purpose of complying with the 25 provisions of this Chapter including without limitation meeting the requirements for 26 the initial license and any continuation thereof. 27 (11) (15) "Residential building contractor" means any corporation, 28 partnership, or individual person who constructs a fixed building or structure for sale 29 for or use by another as a residence or who, for a price, commission, fee, wage, or 30 other compensation, undertakes or offers to undertake the construction or Page 5 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 superintending of the construction of any building or structure, with no more than 2 four incorporated or attached dwelling units, which is not more residential structure 3 which is not more than three floors in height, to be used by another as a residence, 4 when the cost of the undertaking exceeds seventy-five thousand dollars. The term 5 "residential building contractor" includes all contractors, subcontractors, architects, 6 and engineers persons who receive an additional fee for the employment or direction 7 of labor, or any other work beyond the normal architectural or engineering services. 8 "Residential building contractor" also means any person performing home 9 improvement contracting as provided for in Paragraph (9) of this Section when the 10 cost of the undertaking exceeds seventy-five thousand dollars. It shall not include 11 the manufactured housing industry or those persons engaged in building residential 12 structures that are mounted on metal chassis and wheels. 13 (16) "Residential structure" means a building or structure that is used 14 primarily for occupancy by a person as a residence. Such structures or buildings 15 include but are not limited to single family dwellings, duplexes, triplexes, and 16 fourplexes which are not more than three floors in height and structures that are part 17 of or adjacent to the building or structures to be used as a residence. 18 (12) (17) "Subcontract" means an agreement to perform a portion of the 19 scope of work contained in the principal contract including the entire cost of labor 20 and materials of that part of the principal contract which is performed by the 21 subcontractor. 22 (13)(a) (18)(a) "Subcontractor" means a person who contracts directly with 23 the primary contractor for the performance of a part of the principal contract or with 24 another contractor for the performance of a part of the principal contract. to perform 25 a scope of work that is a part of the scope of work contained in the principal contract. 26 (b) "Subcontractor" shall not mean include any person, supplier, or 27 manufacturer, or employee of such person who assembles, repairs, maintains, moves, 28 puts up, tears down, or disassembles any patented, or proprietary, or patented and Page 6 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 proprietary environmental equipment supplied by such person to a contractor to be 2 used solely by the contractor for a construction undertaking. 3 * * * 4 §2152. Domicile; officers; bond 5 * * * 6 §2153. Powers of the board 7 A. The board is hereby vested with the authority requisite and necessary to 8 carry out the intent of the provisions of this Chapter. The board shall have the power 9 to make, amend, or repeal by-laws, rules, and regulations for the proper 10 administration and enforcement of this Chapter; to employ such administrative 11 assistants as are necessary; and to fix their compensation. The board is hereby 12 vested with the authority requisite and necessary to carry out the intent of the 13 provisions of this Chapter. and to carry out the purposes thereof, in accordance with 14 the Administrative Procedure Act. The enumeration of specific matters which may 15 be made, and the subject of rules and regulations, shall not be construed to limit 16 general powers of the board to make all rules and regulations necessary to fully 17 effectuate the purpose of this Chapter. 18 * * * 19 E. The board may sue and be sued and shall have the right and authority to 20 obtain, in the jurisdiction in which a violation of the provisions of this Chapter 21 occurs, upon submission of an affidavit in support, a temporary restraining order and 22 preliminary and permanent injunctions, without the necessity of posting a bond or 23 other security, restraining and prohibiting the violation of this Chapter and the 24 performance of any work then being performed or about to be performed. 25 F. In addition to any other duties and powers granted by this Chapter, the 26 board shall: 27 (1) Grant licenses to qualified contractors pursuant to this Chapter. 28 (2) Make, amend, or repeal such rules and regulations as it may deem proper 29 fully to effectuate this Chapter and carry out the purposes thereof, in accordance with 30 the Administrative Procedure Act. The enumeration of specific matters which may Page 7 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 be made and the subject of rules and regulations shall not be construed to limit 2 general powers of the board to make all rules and regulations necessary fully to 3 effectuate the purpose of this Chapter. Hold hearings in accordance with the 4 provisions of R.S. 49:951 through 965.1 to consider violations of the provisions of 5 this Chapter and the rules and regulations of the board. 6 (3) Enforce this Chapter and rules and regulations adopted pursuant thereto. 7 (4) Suspend or revoke any license for any cause described in this Chapter, 8 or for any cause prescribed by the rules and regulations, and refuse to grant any 9 license for any cause which would be grounds for revocation or suspension of a 10 license. 11 (4) Issue fines, penalties, and other costs for violations of the provisions of 12 this Chapter and the rules and regulations of the board. 13 (5) Recognize that any applicant holding a license in good standing in a 14 comparable classification in another state recognized by the respective agency as a 15 reciprocity state may have the trade portion of the examination waived upon written 16 certification from that state in which the applicant is licensed. The business law 17 course and the provisions of R.S. 37:2156.1 shall not be waived. Applicants shall 18 comply with all other licensing requirements of this state; however, for good cause, 19 the board may waive any other licensing requirement. 20 (6) Publish and distribute materials containing such information as it deems 21 proper to further the accomplishment of accomplish the purpose of this Chapter. 22 Beginning on July 1, 2018, and each quarter thereafter, submit to the 23 presiding officer of each house of the legislature, by electronic or other means, a 24 report that contains all of the following information for the previous quarter: 25 (a) A list of licensees whose license has been suspended or revoked. 26 (b) A list of any licensees whose license was reinstated. 27 F. G. Notwithstanding any other provisions to the contrary and to the extent 28 deemed necessary or appropriate by the board for the efficient implementation of its 29 responsibilities under this Chapter, the board may delegate its powers and duties to 30 its staff by specific resolution of the board. Page 8 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 §2154. Meetings; compensation; quorum; license application and issuance 2 procedure books and records; audit report 3 A. The board shall have at least one regular meeting per month on dates and 4 times designated by the chairman unless, for good cause, a monthly meeting cannot 5 be held. Notice of board meetings shall be posted on the board's official website and 6 at the board office at least ten days prior to the date when the board is to meet. 7 Further, any person desiring actual notice of the board meeting may request in 8 writing that the board send notification through the United States mail at least ten 9 days prior to the board meeting date. 10 B.(1) The board may receive applications for licenses pursuant to the 11 provisions of this Chapter at any time. Upon initial application, the license of a 12 contractor domiciled in the state of Louisiana shall be issued after all requirements 13 have been met and approved by the board. Upon the initial application of a 14 contractor domiciled outside of the state of Louisiana, except as provided herein, a 15 period of at least sixty days must elapse between the date the application is filed and 16 the license is issued unless waived by the board. The executive director shall 17 compile a list of all applicants for licensure that are to be considered at a board 18 meeting and transmit the list to each board member. 19 (2) For purposes of this Subsection a contractor shall be considered to be 20 "domiciled in the state" if he is either of the following: 21 (a) An individual who has been a resident of the state of Louisiana for at 22 least one year prior to filing an application with the board of licensing. 23 (b) Any partnership, association, corporation, or other legal entity whose 24 majority interest is owned by and controlled by one or more residents of the state of 25 Louisiana. 26 (3) For purposes of this Subsection "majority interest" shall be determined 27 in either of the following ways: 28 (a) In the case of corporations, on the basis of all stock, common and 29 preferred, whether voting or nonvoting, and on the basis of all debentures, warrants, 30 or other instruments convertible into common stock, preferred stock, or both. Page 9 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (b) In the case of partnerships, on the basis of all capital accounts together 2 with any and all capital advances, loans, and debentures, whether or not convertible 3 into capital accounts. 4 (4) No application may be considered from any state or local governmental 5 body including, without limitation, any agency of any state or local governmental 6 body including any corporation or other entity owned or controlled by any state or 7 local governing body. 8 C. Before a special meeting may be held, notice stating the time, place, and 9 purpose of the meeting shall be sent by the chairman or vice chairman of the board 10 by electronic means to the members of the board, at least three days before the date 11 of the meeting. 12 D. C. Each member of the board shall be reimbursed when actually in 13 attendance of a board meeting or when he is required to travel for the official 14 authorized business of the board, not more than seventy-five dollars per day plus 15 actual expenses and mileage to and from his domicile to the place of meeting at the 16 same rate of reimbursement set by the division of administration for state employees 17 under the provisions of R.S. 39:231. 18 E. D. Ten members of the board shall constitute a quorum, which shall be 19 sufficient for the board to conduct business, regardless of the total number of 20 members appointed. 21 F. E. There shall be no voting by proxy. 22 F. The treasurer shall be responsible for receiving and accounting for all 23 money derived from the operation of this Chapter. 24 G. The board shall maintain a roster showing the names and places of 25 business of all licensed contractors. The roster shall be maintained and available on 26 the board's official website. 27 H. The secretary of the board shall oversee and attest to the minutes of each 28 meeting. Copies shall be made available to each board member and to the public 29 upon adoption of the minutes at the next scheduled meeting of the board. Page 10 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 I. Within one hundred fifty days of the last day of each calendar year, a 2 certified public accounting firm approved by the state official charged with the 3 auditing of public records and accounts shall audit the financial records of the board 4 and submit the report of his audit to the legislative auditor and shall file a copy of his 5 audit with the secretary of state to be attached to the report of the board on file. 6 §2155. Books and records; reports Residential Contractors subcommittee; 7 membership; terms; powers; duties 8 A. The treasurer shall be responsible for receiving and accounting for all 9 money derived from the operation of this Chapter. He shall register all applicants 10 for licenses, showing for each the date of application, the name, qualifications, place 11 of business, place of residence, and whether license was granted or refused and the 12 date on which such license was granted or refused. There is hereby established 13 within the board the Residential Contractors Subcommittee, hereinafter referred to 14 as "residential subcommittee", consisting of five members who shall be residents of 15 this state and who have been actively engaged in residential contracting for at least 16 five years prior to appointment by the governor. Three members of the 17 subcommittee shall be appointed by the governor from a list of not less than ten 18 names submitted by the Louisiana Homebuilders Association as certified by its 19 president and secretary. One member of the subcommittee shall be from and 20 appointed to represent the first congressional district, one member shall be from and 21 appointed to represent the second congressional district, one member shall be from 22 and appointed to represent the third congressional district, one member shall be from 23 and appointed to represent the fourth and fifth congressional districts, and one 24 member shall be from and appointed to represent the sixth congressional district. 25 B. The board administrator shall keep a roster, showing the names and places 26 of business of all licensed contractors. The roster shall be maintained and available 27 on the board's official website. The terms of office of the initial members appointed 28 to the subcommittee shall be one for a three-year term, one for a two-year term, and 29 one for a one-year term, to be determined by the governor. Thereafter, all members 30 shall be appointed for three-year terms. All terms shall commence thirty days after Page 11 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 the appointment and all members shall serve until their successors have been 2 appointed and qualified. Vacancies occurring in the membership of the 3 subcommittee for any reason shall be filled by appointment by the governor for the 4 unexpired term. No person shall be appointed for more than two consecutive terms. 5 The governor may remove a member for cause. 6 C. The secretary of the board shall keep full and complete minutes of each 7 board meeting whether regular or special, including full information as to each 8 application for license considered and the board's action thereon as well as all 9 expenditures of the board that are approved. These board minutes shall be typed and 10 attested to by the secretary and copies shall be made available to each board member 11 and to the public upon adoption of the minutes at the next scheduled meeting of the 12 board. The executive director of the board shall serve as executive director of the 13 residential subcommittee and shall not have voting privileges. 14 D.(1) Within one hundred fifty days of the last day of each calendar year, a 15 certified public accounting firm approved by the state official charged with the 16 auditing of public records and accounts shall audit the financial records of the board 17 and submit the report of his audit to the legislative auditor and shall file a copy of his 18 audit with the secretary of state to be attached to the report of the board on file. A 19 member of the board shall serve as an ex officio member of the residential 20 subcommittee and shall serve as the liaison between the residential subcommittee 21 and the board. He shall be appointed by the chairman of the board and shall serve 22 as the chairman of the residential subcommittee. His presence at a meeting of the 23 residential subcommittee may be counted toward establishing a quorum of the 24 residential subcommittee, and he shall have voting privileges only if either of the 25 following circumstances exists: 26 (a) His presence is necessary to establish a quorum of the residential 27 subcommittee and there is a tie vote between the appointed members of the 28 residential subcommittee. 29 (b) His presence is necessary to establish a quorum of the residential 30 subcommittee, only one appointed member of the residential subcommittee is Page 12 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 present, and an additional ex officio member has been appointed pursuant to 2 Paragraph (2) of this Subsection. 3 (2) An additional ex officio member of the board shall serve on the 4 residential subcommittee only if his presence, along with the ex officio member 5 serving pursuant to Paragraph (1) of this Subsection, is required to establish a 6 quorum of the residential subcommittee. This additional ex officio member shall be 7 appointed by the chairman of the board and shall serve as the vice chairman of the 8 residential subcommittee. He shall have voting privileges only if there is a tie vote 9 between an appointed member of the residential subcommittee and the ex officio 10 member serving as chairman of the residential subcommittee. 11 (3) The board shall pay per diem and travel expenses for ex officio members. 12 E. A quorum of the residential subcommittee shall consist of a majority of 13 its members which shall be sufficient to conduct residential subcommittee business, 14 and the residential subcommittee shall meet at least once every other month to 15 conduct its business unless, for good cause, a meeting cannot be held. Notice of 16 residential subcommittee meetings shall be posted on the board's official website and 17 at the board office at least ten days prior to the date when the residential 18 subcommittee is to meet. 19 F. Each member of the residential subcommittee shall be entitled to a per 20 diem allowance of seventy-five dollars for each meeting he attends and be 21 reimbursed for all travel expenses necessarily incurred in attending meetings. 22 G. Subject to the approval of the board, the residential subcommittee shall 23 have all of the following powers and duties: 24 (1) To adopt rules and regulations to govern residential and home 25 improvement contractors in this state. 26 (2) To issue, suspend, modify, or revoke licenses to do business in this state 27 pursuant to the provisions of R.S. 37:2158. 28 (3) To prescribe and adopt regulations and policies for continuing education. 29 However, notwithstanding any other law to the contrary, the residential 30 subcommittee shall not approve for use by licensees any continuing education Page 13 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 courses or written training programs provided by a member of the residential 2 subcommittee or legal entity in which he has a controlling interest. 3 (4) To cause the enforcement against, and the prosecution and enjoinder of, 4 all persons violating provisions of this Chapter, and rules and regulations of the 5 board; issue fines, penalties, and other costs for violations; and incur necessary 6 expenses therefor. 7 §2156. Unexpired Applications; licenses; fees; renewals 8 A.(1) The board may receive an application from a person pursuant to the 9 provisions of this Chapter at any time. Upon initial application, the license of a 10 person shall be issued after all requirements have been met and approved by the 11 board. The executive director shall compile a list of all applicants for licensure for 12 inclusion in the agenda that are to be considered at a board meeting. 13 (2) No application may be considered from any state or local governmental 14 body including, without limitation, any agency of any state or local governmental 15 body including any corporation or other entity owned or controlled by any state or 16 local governing body. 17 B.(1) To defray the cost of issuing licenses and of administering the 18 provisions of this Chapter, the board shall fix reasonable fees to be assessed pursuant 19 to the provisions of this Chapter, and reasonable penalties to be assessed for late 20 applications for renewal of licenses and other administrative infractions; however, 21 the basic license fee shall be the sum of not more than one hundred dollars and the 22 fee for additional classifications shall be a lesser amount as set by the board. 23 (2) All fees received by the board in accordance with this Chapter shall be 24 solely used to effectuate the provisions of this Chapter. 25 (3) All fees shall be paid prior to the issuance of a license or other changes 26 or additions to an existing license. 27 C. Fees for licenses shall not exceed the following amounts: 28 (1) Examination fee $50.00 29 (2) License fee $100.00 30 (3) Renewal fee $100.00 Page 14 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (4) Delinquent fee $50.00 2 (5) Home Improvement fee $50.00 3 D. The board may assess an additional surcharge of not more than four 4 hundred dollars in connection with the application for and issuance of a contractor's 5 license to a contractor not domiciled in this state, to be utilized to defray the 6 additional cost of the investigation of the application of the non-Louisiana 7 contractor. 8 E. When issuing a license to any contractor, the board shall state the 9 contractor's classification on the license, according to the classification requested by 10 the contractor and for which he has completed all of the requirements. 11 F. The licensee shall not be permitted to bid or perform any type of work not 12 included in the classification under which his license was issued. 13 G. The licensee may apply for and receive additions to or changes in his 14 classification by applying, successfully completing the written examination, and 15 paying the required fees. Additions or changes to an existing license shall become 16 effective after completion of the requirements and upon board approval. 17 H. Licenses and renewals issued pursuant to the provisions of this Chapter 18 shall expire on the anniversary of the date on which the license was originally issued. 19 Licensees shall elect upon renewal one-, two-, or three-year license renewal terms, 20 and licenses may be issued by the board on a multiple-year basis, not to exceed a 21 three-year renewal term for any license. The license becomes invalid on the last day 22 of the term for which it was issued unless renewed; however, after a license has 23 expired, the person to whom the license was issued shall have fifteen days following 24 the expiration date to file an application for the renewal of the license without the 25 payment of a penalty and without further examination. Any person who makes an 26 application for the renewal of a license after fifteen days following the expiration 27 date of the license may, at the discretion of the board, have his license renewed after 28 paying the required license fees and a penalty, not exceeding the sum of fifty dollars, 29 that the board may impose. New applicants for licensing may elect upon application 30 the renewal term of their license. Page 15 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 B. I. If a license is not renewed within a period of one year from the date of 2 its expiration, any application for renewal shall be considered and treated as a new 3 application. 4 C.(1) To defray the cost of issuing licenses and of administering the 5 provisions of this Chapter, the board shall fix reasonable fees to be assessed pursuant 6 to the provisions of this Chapter, and reasonable penalties to be assessed for late 7 applications for renewal of licenses and other administrative infractions; however, 8 the basic license fee shall be the sum of not more than one hundred dollars and the 9 fee for additional classifications shall be a lesser amount as set by the board. 10 (2) The board may assess an additional surcharge of no more than four 11 hundred dollars in connection with the application for and issuance of a contractor's 12 license to a contractor not domiciled in the state of Louisiana, to be utilized to defray 13 the additional cost of the investigation of the application of the non-Louisiana 14 contractor, including references supplied by the contractor, work history supplied by 15 the work contractor, and other pertinent information required by the board in 16 connection with an application for a contractor's license. 17 (3)(a) J.(1) The board shall assess on each license renewal issued to a 18 contractor an additional fee of one hundred dollars per year to be dedicated and 19 allocated as provided in this Paragraph to any public university in this state or any 20 community college school of construction management or construction technology 21 in this state that is accredited by either the American Council for Construction 22 Education or the Accreditation Board for Engineering and Technology. The board 23 shall include on each license renewal form issued to a contractor an optional election 24 whereby the contractor may choose to not participate in the remission of the 25 additional one hundred dollar dedication fee. 26 (b) (2) Each January, each accredited public university or community college 27 school of construction management or construction technology shall report to the 28 board the number of graduates from its school of construction management or 29 construction technology from the previous calendar year. Page 16 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (c) (3) Any and all funds collected pursuant to this Paragraph shall be 2 disbursed to the accredited public university or community college schools of 3 construction management or construction technology by August first of each year 4 upon completion of the annual audit of the board. The funds shall be used by the 5 accredited public university or community college schools of construction 6 management or construction technology solely for the benefit of their program and 7 the expenditure of such funds shall be approved by the industry advisory council or 8 board for the program. The funds collected pursuant to this Paragraph shall be in 9 addition to any other monies received by such schools and are intended to 10 supplement and not replace, displace, or supplant any other funds received from the 11 state or from any other source. Any school of construction management or 12 construction technology that experiences a decrease in the funding appropriated to 13 them by the accredited public university or community college as determined by the 14 industry advisory council or board for the program shall be ineligible for 15 participation under the provisions of this Paragraph, and the monies from the fund 16 for such school of construction management or construction technology shall be 17 redistributed on a pro rata basis to all other accredited and eligible schools. 18 (d) (4) The funds collected pursuant to this Subsection shall be distributed 19 as follows: 20 (i) (a) One-half on a pro rata basis to each accredited public university's or 21 community college's schools of construction management or construction 22 technology. However, each accredited public university shall receive twice as much 23 funds as each community college. 24 (ii) (b) One-half pro rata to each accredited public university school of 25 construction management or construction technology based on the total number of 26 graduates from the previous calendar year from each school as reported to the board. 27 (e) (5) No funds shall be allocated to any public university or community 28 college school of construction management or construction technology that does not 29 maintain current and active accreditation as required by this Paragraph. Page 17 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 D. K. The licenses issued pursuant to the provisions of this Chapter are not 2 transferable. 3 E. L. Any other provisions of this Chapter notwithstanding, no license shall 4 be issued to any foreign corporation which has not obtained from the secretary of 5 state a certificate of authority to do business, as provided in Chapter 3 of Title 12 of 6 the Louisiana Revised Statutes of 1950. 7 F. M. Except for the licenses, fees, and assessments authorized by this 8 Chapter, and except for the occupational license taxes authorized by the constitution 9 and laws of this state, and except for permit fees charged by parishes and 10 municipalities for inspection purposes, and except for licenses required by parishes 11 and municipalities for the purpose of determining the competency of mechanical or 12 plumbing contractors, or both, and electrical contractors, no contractor shall be liable 13 for any fee or license as a condition of engaging in the contracting business. 14 G. No license shall be issued for the subclassification of asbestos removal 15 and abatement under the major classification of hazardous materials as provided in 16 R.S. 37:2156.2(A)(VII) until the applicant furnishes satisfactory evidence that he or 17 his qualifying party has received certification from the Department of Environmental 18 Quality to perform asbestos removal and abatement work. 19 §2156.1. Requirements for issuance of a license 20 A. To become licensed as a contractor in accordance with the provisions of 21 this Chapter, an applicant shall make application to the board on a form adopted by 22 the board and shall state the classification of work the applicant desires to perform 23 from a list of major classifications as follows: 24 (1) Building construction. 25 (2) Highway, street, and bridge construction. 26 (3) Heavy construction. 27 (4) Municipal and public works construction. 28 (5) Electrical work. 29 (6) Mechanical work. 30 (7) Plumbing work. Page 18 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (8) Hazardous materials. 2 (9) Specialty classifications. 3 (10) Residential construction. 4 B. The board shall classify contractors according to the type or types of 5 work or contracts which they may perform. 6 C.(1) The applicant Commercial, residential, and mold remediation 7 applicants shall furnish the board with a financial statement, current to within twelve 8 months of the date of filing, prepared by an accountant, bookkeeper, or certified 9 public accountant and signed by the applicant before a notary public, stating that the 10 statement of applicant's assets and financial condition is true and correct. The assets 11 shall include a net worth of at least ten thousand dollars. An applicant without the 12 net worth required herein may also furnish the board a bond, letter of credit, or other 13 security acceptable to the board in the amount of the net worth requirement plus the 14 amount of the applicant's negative net worth if any, and the furnishing of the bond, 15 letter of credit, or other security shall be deemed satisfaction of the net worth 16 requirement for all purposes. The financial statement and any information contained 17 therein, as well as any other financial information required to be submitted by a 18 contractor, shall be confidential and not subject to the provisions of R.S. 44:1 19 through 57. 20 (2) No financial statement is required for a license renewal. 21 D.(1) An applicant for commercial, residential, or mold remediation 22 contractor licensure shall designate a qualifying party who shall be the legal 23 representative for the contractor relative to the provisions of this Chapter. The 24 designated qualifying party shall complete an application supplied by the board and 25 pass any mandatory examination required by the board or present any credential 26 required. The board may deny approval of the qualifying party for good cause, 27 which may include the ability of the proposed principal owner or owners, principal 28 shareholder or shareholders, or qualifying party to engage in the business of 29 contracting as demonstrated by his prior contracting business experience. Evidence 30 which may be considered by the board shall be limited to any legal proceedings Page 19 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 against the qualifying party or businesses where the qualifying party was in a 2 position of control at the time a problem arose and the ultimate disposition of the 3 proceedings, any financial history of bankruptcies, unpaid judgments, insolvencies, 4 or any similar evidence. When the qualifying party terminates employment with the 5 licensee, the board shall be notified in writing within thirty days of the disassociation 6 and another qualifying party must qualify within sixty days. The persons who may 7 be a qualifying party or parties are: 8 (a) A sole proprietor or spouse of a sole proprietor. 9 (b) Any employee of an applicant who has been in full-time employment for 10 one hundred twenty consecutive days immediately preceding the application. The 11 employee may be allowed to be the qualifying party for the licensed company and 12 related entities. 13 (c) Any stockholder, officer, or incorporator of a corporation. 14 (d) Any partner of a partnership. 15 (e) Any member or manager of a limited liability company. 16 (2) A qualifying party for a licensed contractor may be a qualifying party for 17 any affiliated entities to the licensed contractor. 18 (3) Upon good showing, the board may exempt any qualifying party from 19 the required examinations. The board shall exempt from testing for a residential 20 construction license any person working in the residential industry who holds a 21 building construction license that was issued by the board if requested by the 22 building contractor. 23 (3) (4) Upon the determination that a person has engaged in deceptive 24 practices when taking or attempting to take any board examination, the person shall 25 be ineligible to serve as a qualifying party for a licensee for a period of one year. 26 E. Notwithstanding any other law of this state to the contrary, a mechanical, 27 plumbing, or electrical contractor may obtain a license to bid and perform work 28 statewide provided the contractor has successfully passed a standardized, nationally 29 recognized, written examination administered or approved by the State Licensing 30 Board for Contractors. Residential construction and home improvement construction Page 20 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 applicants for licensure shall be required to submit certificates evidencing workers' 2 compensation coverage in compliance with Title 23 of the Louisiana Revised 3 Statutes of 1950, and liability insurance in a minimum amount of one hundred 4 thousand dollars or liability protection provided by a liability trust fund as authorized 5 by R.S. 22:46(9)(d) in a minimum amount of one hundred thousand dollars. 6 F.(1) Notwithstanding any other provision of law to the contrary, any 7 residential contractor in good standing with the board who has held a license to 8 engage in residential construction issued pursuant to this Chapter for not less than 9 one consecutive year may elect to place his license in an inactive license status with 10 the board, if he applies for a transfer to inactive status. 11 (a) During the period a license is in inactive status, the licensee shall be 12 prohibited from engaging in any activity requiring a residential contractor license. 13 (b) An inactive licensee shall be required to renew his inactive license in the 14 same manner as provided in R.S. 37:2156(H) and by paying a renewal fee, which 15 shall not exceed the renewal fee paid by active licensees. However, an inactive 16 licensee shall not be required to submit insurance certificates pursuant to Subsection 17 E of this Section or fulfill any other additional requirements that an active licensee 18 would not be required to fulfill when renewing his license. 19 (c) An inactive licensee shall be required to fulfill all prescribed continuing 20 education requirements established for active licensees. 21 (d) A licensee may request transfer from inactive status to active status at 22 any time, if all of the following conditions exist: 23 (i) The inactive license has been renewed as provided for in this Section. 24 (ii) The inactive license is current at the time the request is received by the 25 board. 26 (iii) The licensee submits the required insurance certificates as provided in 27 Subsection E of this Section. 28 G. Mold remediation license applicants shall be required to furnish all of the 29 following before a license is issued: Page 21 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (1) Evidence to the board that he has satisfactorily completed at least twenty- 2 four hours of training in mold remediation and basic mold assessment. 3 (2) Insurance certificates evidencing workers' compensation coverage in 4 compliance with Title 23 of the Louisiana Revised Statutes of 1950 and liability 5 insurance in a minimum amount of fifty thousand dollars. 6 F.(1) H.(1) Upon completion of the requirements for licensure and issuance 7 of a state license for the classification of work for which the contractor has applied; 8 mechanical, plumbing, or electrical contractors licensed pursuant to the provisions 9 of this Section are excluded from local, municipal, or parish regulatory authority 10 examination procedures and may bid and perform work within any local jurisdiction 11 upon paying all appropriate fees. 12 (2) The purpose of this Subsection is to preempt local, municipal, or parish 13 regulatory examination authority for statewide-licensed mechanical, plumbing, or 14 electrical contractors bidding and performing work in multiple jurisdictions. This 15 preemption shall further exclude the employees of statewide-licensed electrical and 16 mechanical contractors from local, municipal, or parish regulatory examination or 17 certification authority as a condition to performing work for the statewide-licensed 18 electrical or mechanical contractor. 19 G. Any mechanical or electrical contractor who has, prior to July 1, 1985, 20 successfully passed both a state licensing examination administered or approved by 21 the board and a local licensing examination in the same license classification, and 22 who has continuously held such state and local licenses since July 1, 1985, shall be 23 exempted from any requirement for passage of an additional test in that license 24 classification. A mechanical or electrical contractor shall make application to the 25 board for an exemption on a form prepared by the board. The board shall provide 26 a date by which application for exemption forms must be filed. 27 H. I.(1) Any plumbing contractor who currently holds a state license Master 28 Plumber License from the State Plumbing Board of Louisiana shall be exempt from 29 any requirement for passage of an additional examination in that license 30 classification and may bid and perform plumbing work statewide after applying to Page 22 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 the board for an exemption on a form prepared by the board receiving a license from 2 this board. 3 I. (2) Nothing in this Section Subsection shall be construed to permit 4 plumbing contractors to perform plumbing work without first complying with the 5 licensure provisions of Chapter 16 of this Title, R.S. 37:1361 et seq. 6 J. Each applicant shall pay all fees required for issuance of the license as 7 provided for in this Chapter. 8 K. Upon completion of the requirements for licensure, the application shall 9 be submitted to the board for review. 10 J. No license shall be issued for the subclassification of asbestos removal and 11 abatement under the major classification of hazardous materials as provided in R.S. 12 37:2156.2(VIII) until the applicant furnishes satisfactory evidence that he or his 13 qualifying party has received certification from the Department of Environmental 14 Quality to perform asbestos removal and abatement work. 15 L.(1) K.(1) The examination requirement of this Chapter shall not apply to 16 any arborist who currently holds a valid state license issued pursuant to R.S. 3:3804 17 in the landscaping, grading, and beautification subclassification. The arborist may 18 bid and perform the arborist work described in R.S. 3:3808(A)(1)(a), statewide, after 19 applying to the board for an exemption on a form prepared by the board. 20 (2) Nothing in this Subsection shall be construed to permit arborists to 21 recommend or execute arborist work without first complying with the licensure 22 provisions of Chapter 24 of Title 3 of the Louisiana Revised Statutes of 1950, R.S. 23 3:3801 et seq. 24 M. L. The board may consolidate, add, or remove subclassifications or 25 specialties by rule as it deems appropriate. 26 §2156.2. Major categories; subclassifications; specialty classifications; requirements 27 for contractors holding major classification to perform mechanical, electric, 28 or plumbing work 29 A. Any contractor possessing a major classification is permitted to bid or 30 perform any of the specialty type work required to perform its scope of work for its Page 23 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 respective classification. Under each major category listed in this Subsection is a list 2 of subclassifications that a specialty contractor may obtain, as follows: 3 I. Building construction 4 Subclassifications: 5 1. Acoustical treatments 6 2. Air conditioning work, ventilation, refrigeration, and duct work 7 3. Electrical construction for structures 8 4. Fire sprinkler work 9 5. 3. Foundations for buildings, equipment, or machinery 10 6. 4. Incinerator construction 11 7. 5. Installation of equipment, machinery, and engines 12 8. 6. Installation of pneumatic tubes and conveyors 13 9. 7. Insulation for cold storage and buildings 14 10. 8. Insulation for pipes and boilers 15 11. 9. Landscaping, grading, and beautification 16 12. 10. Lathing, plastering, and stuccoing 17 13. 11. Masonry, brick, stone 18 14. Ornamental iron and structural steel erection, steel buildings 19 15. 12. Painting and interior decorating, carpeting flooring 20 16. 13. Pile driving 21 17. Plumbing 22 18. Residential construction 23 19. 14. Rigging, house moving, wrecking, and dismantling 24 20. 15. Roof decks 25 21. 16. Roofing and sheet metal, siding 26 22. 17. Sheet metal duct work 27 23. 18. Steam and hot water heating in buildings or plants 28 19. Steel erection and installation 29 24. 20. Stone, granite, slate, resilient floor installations 30 25. 21. Swimming pools Page 24 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 26. 22. Tile, terrazzo, and marble 2 27. 23. Water cooling towers and accessories 3 28. 24. Drywalls Drywall 4 29. 25. Driveways, parking areas, asphalt, and concrete, exclusive of 5 highway and street work 6 30. 26. Fencing 7 27. Labor only 8 II. Highway, street, and bridge construction 9 Subclassifications: 10 1. Driveways, parking areas, asphalt, and concrete 11 2. Highway and street subsurface drainage and sewer work 12 3. Permanent or paved highways and streets (asphalt hot and cold plant mix) 13 4. Permanent or paved highways and streets (asphalt surface treatment) 14 5. Permanent or paved highways and streets (concrete) 15 6. Permanent or paved highways and streets (soil cement) 16 7. Secondary roads 17 8. Undersealing or leveling of roads 18 9. Earthwork, drainage, and levees 19 10. Clearing, grubbing, and snagging 20 11. Culverts and drainage structures 21 12. Concrete bridges Bridges, over and underpasses 22 13. Steel bridges, over and underpasses 23 14. Wood bridges, over and underpasses 24 15. Landscaping, grading, and beautification 25 16. 14. Fencing 26 17. 15. Furnishing and installation of movable structures or machinery, 27 excluding electrical and mechanical work 28 16. Labor only 29 III. Heavy construction 30 Subclassifications: Page 25 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 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 30 11. Labor only Page 26 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 V. Electrical work 2 Subclassifications: 3 1. Electrical transmission lines 4 2. Electrical work for structures 5 3. Underground electrical conduit installation 6 4. 3. Electrical controls 7 VI. Mechanical Work 8 Subclassifications: 9 1. Heat, air conditioning, ventilation, duct work, and refrigeration 10 2. Industrial pipe work and insulation 11 3. Plumbing 12 4. Controls for mechanical work 13 VII. Plumbing 14 Subclassifications: 15 1. Potable and nonpotable water systems; construction, removal, repair, and 16 maintenance for buildings and premises. 17 2. Sanitary and nonsanitary waste and sewerage construction; removal, 18 repair, and maintenance for buildings and premises. 19 VII. VIII. Hazardous materials 20 Subclassifications: 21 1. Asbestos removal and abatement 22 2. Hazardous materials cleanup and waste treatment or removal 23 3. Hazardous materials site remediation 24 4. Any other classification for which the Department of Environmental 25 Quality requires certification pursuant to law or regulation. 26 VIII. Plumbing 27 Subclassifications: 28 1. Potable and nonpotable water systems; construction, removal, repair, and 29 maintenance for buildings and premises. Page 27 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 2. Sanitary and nonsanitary waste and sewerage construction; removal, 2 repair, and maintenance for buildings and premises. 3 IX. Residential construction 4 B. Any contractor who holds a major classification which permits that 5 contractor to bid mechanical or electrical work, prior to the performance of such 6 work under his license, shall designate a qualifying party to successfully pass the 7 standardized nationally recognized test administered by the board for the work to be 8 performed. All time limitations shall be waived and any designated qualifying party 9 who has successfully completed the examination shall not be required to retake the 10 examination. 11 C. Any contractor who holds a major classification which permits the 12 contractor to bid and perform plumbing work, prior to the performance of such work, 13 shall comply with the provisions of Chapter 16 of this Title, R.S. 37:1361 et seq. All 14 time limitations shall be waived. 15 D. The board may grant or renew licenses for mechanical, electrical, or 16 plumbing contractors and restrict such licenses to the bidding and performance of 17 work within specified areas of this state as the board shall designate. Such license 18 shall be issued with a notation of the applicable restriction. 19 §2156.3. Installation of solar energy equipment and systems 20 A. No licensed contractor shall install solar energy equipment or solar 21 energy systems on or after February 1, 2015, unless he is in compliance with the 22 provisions of this Section and any rules adopted by the board in accordance with the 23 provisions of this Section. 24 B.(1) Notwithstanding any provision of law to the contrary, no later than 25 January 1, 2015, the board shall adopt rules in accordance with the Administrative 26 Procedure Act regulating the installation of solar energy equipment or solar energy 27 systems by licensed contractors. Such rules shall, at a minimum, include the 28 requirement of passage of a separate written examination that evidences the 29 contractor's knowledge and understanding of best practices as related to the 30 installation and maintenance of solar energy equipment or solar energy systems by Page 28 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 any contractor who does not hold a current Solar PV Installer certification for solar 2 electric systems, or a current Solar Heating Installer certification for solar thermal 3 hot water systems as issued by the North American Board of Certified Energy 4 Practitioners. 5 (2) Any contractor licensed in this state as of August 1, 2014, holding the 6 major classification of Building Construction, Electrical Work (Statewide), or 7 Mechanical Work (Statewide), shall be deemed to have met the examination 8 requirement pursuant to this Subsection. 9 C. Contractors applying for the classification of Solar Energy Equipment, 10 shall, in addition to all other application or licensing requirements, meet the 11 following requirements prior to issuance of this classification: 12 (1) Hold hold one or more of the following major classifications: 13 (a) (1) Building Construction. 14 (b) (2) Electrical Work. 15 (c) (3) Mechanical Work. 16 (d) (4) Residential Building Contractor Construction. 17 (2) Complete training in the design of solar energy systems by an entity and 18 course approved by the board. 19 D. C. Any work performed to connect wiring or hookups for any 20 photovoltaic panel or system wherein the panel or system is of a value, including 21 labor, materials, rentals, and all direct and indirect project expenses, of ten thousand 22 dollars or more shall be performed only by a contractor or subcontractor who holds 23 the classification of to perform Electrical Work or who may perform electrical work 24 pursuant to the provisions of R.S. 37:2156.2(B). 25 E. D. Any work performed to connect piping or equipment for any solar 26 thermal system wherein the system is of a value, including labor, materials, rentals, 27 and all direct and indirect project expenses, of ten thousand dollars or more shall be 28 performed only by a contractor or subcontractor who holds the classification of to 29 perform Mechanical Work or who may perform mechanical work pursuant to the 30 provisions of R.S. 37:2156.2(B). Page 29 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 F. E. The provisions of this Section shall be applicable to entities engaging 2 in the business of selling, leasing, installing, servicing, or monitoring solar energy 3 equipment. Nothing in this Section shall be construed to impose civil or criminal 4 liability on homeowners or on any third party whose involvement is financing to the 5 homeowner, financing for installation, or purchasing the tax credits described in this 6 Section from any homeowner or contractor. Entities engaged in the business of 7 arranging agreements for the lease or sale of solar energy systems or acquiring 8 customers for financing entities shall not be exempt from the provisions of this 9 Section. 10 §2157. Exemptions 11 A. The provisions of this Part shall not apply to any of the following: 12 (1) The state or any of its political subdivisions. 13 (2) Any public utility providing gas, electric, or telephone service which is 14 subject to regulation by the Louisiana Public Service Commission or the council of 15 the city of New Orleans, or to any work performed by the public utility in furnishing 16 its authorized service. 17 (2) (3) Owners of property who supervise, superintend, oversee, direct, or 18 in any manner assume charge of the construction, alteration, repair, improvement, 19 movement, demolition, putting up, tearing down, or maintenance of any building, 20 railroad excavation, project, development, improvement, plant facility, or any other 21 construction undertaking, on that property, for use by the owner, and which will not 22 be for sale or rent, and the control of access to which shall be controlled by the 23 owner so that only employees and nonpublic invitees are allowed access. 24 (3) (4) Any person donating labor and services for the supervision and 25 construction of or for the maintenance and repair of churches. 26 (4) (5) Any farmer doing construction for agricultural purposes on leased 27 or owned land. 28 (5) (6) Any person bidding or performing work on any project totally owned 29 by the federal government. Page 30 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (6) (7) Any person engaged in rail or pipeline construction activities 2 performed on property he owns or leases. 3 (7) (8) Any citizen volunteering labor for the construction of a project which 4 is funded by the Louisiana Community Development Block Grant, Louisiana Small 5 Towns Environment Program. 6 (8) (9) Any person, supplier, or manufacturer, or the employee of the person, 7 supplier, or manufacturer who assembles, repairs, maintains, moves, puts up, tears 8 down, or disassembles any patented or proprietary environmental equipment he 9 supplies supplied to a contractor to be used solely by the contractor for a construction 10 undertaking project. 11 (9) (10) The manufactured housing industry or any person engaged in any 12 type of service, warranty, repair, or home improvement work on factory-built, 13 residential dwellings that are mounted on chassis and wheels. 14 (10) (11) Any person bidding or performing work on any project paid for by 15 monies from the Oilfield Site Restoration Fund or Coronavirus Aid, Relief, and 16 Economic Security (CARES) Act. 17 (12) Any work covering dewatering or water mitigation. 18 (13) Any employee of any contractor. 19 (14) Owners of property who supervise, superintend, oversee, direct, or in 20 any manner assume charge of the construction, alteration, repair, improvement, 21 movement, demolition, putting up, tearing down, or maintenance of their personal 22 residences, if the homeowner does not build more than one residence per year. The 23 one-year period shall commence on the date of occupancy of the residence. 24 However, an owner of property may build more than one single-family dwelling in 25 a one-year period if the construction of an additional residence occurs as a result of 26 a change in the legal marital status of the owner or change in the employment status 27 of the owner whereby the owner must relocate to another employment location, 28 which is located in excess of fifty miles from his personal residence. 29 (15) Persons performing the work of a residential contractor in areas or 30 municipalities that do not have a permitting procedure. Page 31 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (16) The following persons are exempt from home improvement licensure: 2 (a) A residential property owner who physically performs the home 3 improvement work on his personal residence. 4 (b) Persons licensed as a building construction contractor or residential 5 contractor. 6 (c) Any person who works exclusively in any of the following home 7 improvement areas: 8 (i) Landscaping. 9 (ii) Interior painting or wall covering. 10 (17) The following persons are exempt from mold remediation licensure: 11 (a) A residential property owner who performs mold remediation on his own 12 property. 13 (b) An owner or tenant, or a managing agent or employee of an owner or 14 tenant, who performs mold remediation on property owned or leased by the owner 15 or tenant. This exemption does not apply if the managing agent or employee 16 engages in the business of performing mold remediation for the public. 17 B. However, the provisions of this Chapter shall apply to any contractor 18 employed by any party exempted by this Section. The provisions of this Section 19 shall not be construed to waive local and state health and life safety code 20 requirements. 21 §2158. Revocation, suspension, and renewal and suspension of licenses; issuance 22 of cease and desist orders; debarment; violations; penalty; criminal penalty 23 A. No person may engage in the business of contracting, or act as a 24 contractor as defined in this Chapter, unless he holds an active license as a contractor 25 in accordance with the provisions of this Chapter. The board and residential 26 subcommittee may revoke, suspend, or refuse to renew a license; issue cease and 27 desist orders to stop work; issue fines and penalties; or debar any person or licensee 28 licensed pursuant to the provisions of this Chapter for any of the following causes 29 violations: Page 32 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (1) Undertaking, attempting to, or submitting a price or bid; offering to 2 construct, supervise, superintend, oversee, direct, or in any manner assume charge 3 of the construction, alteration, repair, improvement, movement, demolition, putting 4 up, tearing down; furnishing labor or furnishing labor together with material or 5 equipment; or installing material or equipment for any building, highway, road, 6 railroad, sewer grading, excavation, pipeline, public utility structure, project 7 development, housing, or housing development, improvement, or any other 8 construction undertaking without possessing a license for which a license is required 9 or without possessing a license with the proper classification. 10 (2) Falsely representing or advertising regarding the person's license status 11 or classification. 12 (3) Any dishonest or fraudulent act as a contractor which has caused damage 13 to another, as adjudged by a court of competent jurisdiction. 14 (2) Willful misrepresentation of fact by an applicant in obtaining a license. 15 (4) Bidding on, quoting, estimating, or performing a job for which a license 16 is required, the licensee shall hold the classification for the majority of work 17 performed. 18 (5) Misrepresentation of fact by an applicant in obtaining a license; 19 misrepresentation of fact by an applicant or licensee in providing information, 20 statements, or documents to the staff or board; deception by omission; and providing 21 false testimony to the board. 22 (3) (6) Willful failure Failure to comply with the provisions of this Chapter 23 or the rules and regulations promulgated pursuant thereto. 24 (4) (7) Entering into a contract with an unlicensed contractor involving work 25 or activity for the performance of which a license is required by this Chapter. 26 (5) (8) Permitting the contractor's license to be used by another contractor 27 when the other contractor does not hold a license for the classification of work for 28 which the contract is entered. 29 (6) (9) Failure to maintain a qualifying party to represent the licensee. 30 (7) Insolvency or involuntary cessation of business operation. Page 33 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (8) (10) Failure to continue to fulfill any of the requirements for original 2 licensure. 3 (9) (11) Problems relating to the ability of the contractor, its qualifying party, 4 or any of its principal owners or principal shareholders to engage in the business of 5 contracting, as demonstrated by their contracting business history or experience. 6 (10) (12) Disqualification or debarment by any public entity. 7 (11) Failure to possess any insurance required by federal law. 8 (12) (13) Failure to timely notify the board of any change in corporate name, 9 company name, address of the licensee, or any other contact information as required. 10 (14) Assisting a person to circumvent the provisions of this Chapter. 11 (15) Failure of a contractor performing residential or home improvement 12 construction in accordance with this Chapter to provide, in writing to the party with 13 whom he has contracted to perform contracting services, his name, contracting 14 license number, classification, and current insurance certificates evidencing the 15 amount of liability insurance maintained and proof of workers' compensation 16 coverage when requested by the contracting party for whom the work is to be 17 performed. 18 (16) Abandoning or failing to perform, without justification, any contract or 19 project engaged in or undertaken by any licensee or deviating from or disregarding 20 plans or specifications in any material respect without the consent of the owner. 21 (17) Conviction of a crime or the entering of a plea of guilty or nolo 22 contendere to a criminal charge under the laws of the United States or any other state 23 related to the construction business involving dishonesty or causing physical harm 24 or damages to another person. 25 (18) Efforts to deceive or defraud the public. 26 (19) It is a violation for a mold remediation contractor to: 27 (a) Fail to provide a written report to each person for whom he performs 28 such services for compensation. 29 (b) Render, submit, subscribe, or verify false, deceptive, misleading or 30 unfounded opinions or reports. Page 34 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (c) Perform both mold assessment and mold remediation on the same 2 property. 3 (d) Own an interest in both the entity which performs mold assessment 4 services and the entity which performs mold remediation services on the same 5 property. 6 B.(1) In order to enforce the provisions of this Chapter, the board may 7 conduct hearings in accordance with the provisions of R.S. 49:951 through 965.1. 8 The board shall maintain and make available a record of all persons or licensees who 9 have been disqualified by any public entity pursuant to R.S. 39:1672. If any person 10 or licensee has been disqualified more than once in a twelve-month period, the board 11 shall hold a debarment hearing. In determining the value of a project, any division 12 of a contract or scope of work into parts which would avoid the necessity of a license 13 to bid, contract, or perform the work, will be disregarded, and the divided parts of 14 the contract or scope of work will be treated as one contract or scope of work for 15 purposes of determining whether a license is required. 16 (2) After the hearing, if the board rules that a person has violated any 17 provision of this Chapter, or that a person or licensee has been appropriately 18 disqualified more than once in a twelve-month period, in lieu of revoking or 19 suspending the license, the board may order the person to immediately discontinue 20 all work on the construction project which is the subject of the hearing, debar a 21 person or licensee from bidding on projects for any public entity for up to three 22 years, or both. Additionally, the board may require the licensee to pay the actual 23 costs incurred by the board in connection with the investigation and to conduct the 24 hearing. In accordance with R.S. 49:964, the board may grant a stay of the 25 enforcement of its order for good cause. For the purpose of determining a scope of 26 work, the board shall review whether the contract or contracts in question constitute 27 a single scope of work or whether they constitute separate scopes of work. The 28 board may be guided in this interpretation by a review of the drawings, plot plans, 29 blueprints, architectural plans, site maps, technical drawings, engineering designs, Page 35 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 sketches, diagrams, black lines, blue lines, drafts, or other renderings depicting the 2 total scope of work. 3 C. In the event of a revocation of a license or a qualifying party status, the 4 person or qualifying party shall be ineligible to apply for a license or qualifying party 5 status for one year following the revocation. 6 D. The board may refuse to license any entity that has been debarred 7 pursuant to R.S. 39:1672. Further, the board may hold a hearing for any licensee 8 debarred pursuant to R.S. 39:1672 and suspend or revoke a license, order the licensee 9 to discontinue all work on a construction project, or further debar a person or 10 licensee from bidding on projects for any public entity for up to three years. 11 (3) E. Any party to the proceeding who is aggrieved by the action of the 12 board may appeal the decision in accordance with R.S. 49:951 through 965.1. 13 C. The board may sue and be sued and, to that end, shall have the authority 14 to apply to a court of competent jurisdiction for a temporary restraining order and a 15 writ of injunction to restrain and prohibit any violation of this Chapter and the 16 performance of any work then being done or about to commence. 17 D. F. In accordance with the provisions of R.S. 49:951 through 965.1, any 18 person who applies for and is denied a license by the board, or whose license has 19 been revoked, rescinded, or suspended, may apply appeal to the Nineteenth Judicial 20 District Court in and for the parish of East Baton Rouge to determine whether the 21 board has abused its discretion. 22 E. In addition to actions taken by the board, it shall be unlawful for any 23 person to engage in the business of contracting without authority as provided in R.S. 24 37:2160. 25 §2159. Classification; bidding and performing work within a classification Home 26 improvement contracting; written contract required; claims of unlicensed 27 persons 28 A. Before issuing a license to any contractor, the board shall state the 29 contractor's classification on the license, according to the classification requested by 30 the contractor and for which he has completed all of the requirements. Every Page 36 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 agreement for any licensee to perform home improvement contracting services, as 2 defined by this Chapter, in an amount in excess of seven thousand five hundred 3 dollars, but not in excess of seventy-five thousand dollars, shall be in writing and 4 shall include the following documents and information: 5 (1) The complete agreement between the owner and the contractor and a 6 clear description of any other documents which are or shall be incorporated into the 7 agreement, including current insurance certificates evidencing the amount of liability 8 insurance maintained and proof of workers' compensation coverage by any person 9 required to be as a home improvement contractor. 10 (2) The full names, addresses, and the license number of the contractor. 11 (3) A description of the work to be performed. 12 (4)(a) The total amount agreed to be paid for the work to be performed under 13 the contract. 14 (b) An approximation of the cost expected to be borne by the owner under 15 a cost-plus contract or a time-and-materials contract. 16 (5) The signature of all parties. 17 B. The licensee shall not be permitted to bid or perform any type of work not 18 included in the classification under which his license was issued. At the time of 19 signing, the owner shall be furnished with a copy of the contract signed by both the 20 home improvement contractor and the owner. No work shall begin prior to the 21 signing of the contract and transmittal to the owner of a copy of the contract. 22 C. The licensee may apply for and receive additions to or changes in his 23 classification by applying, successfully completing the written examination, and 24 paying the required fees. Additions or changes to an existing license shall become 25 effective after completion of the requirements and upon board approval. Contracts 26 which fail to comply with the requirements of this Section shall not be invalid solely 27 because of noncompliance. 28 D. Nothing in this Chapter is to be construed to mean that the board has any 29 authority to determine or fix or suggest the amount of a contractor's bid limit. No 30 home improvement contractor who fails to obtain a license as provided for in this Page 37 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 Chapter shall be entitled to file a statement of claim or a statement of lien or 2 privilege with respect to monetary sums allegedly owed under any contract, whether 3 express, implied, or otherwise, when any provision of this Chapter requires that the 4 home improvement contractor possess a home improvement license issued by the 5 residential subcommittee in order to have properly entered into such a contract. 6 §2160. Engaging in business of contracting without authority prohibited; penalty 7 Local regulatory authority; permit offices; staff; building permits 8 A.(1) It shall be unlawful for any person to engage or to continue in this state 9 in the business of contracting, or to act as a contractor as defined in this Chapter, 10 unless he holds an active license as a contractor under the provisions of this Chapter. 11 (2) It shall be unlawful for any contractor, licensed or unlicensed, who 12 advertises in any form or in any news medium, to advertise that he is a licensed 13 contractor without specifying the type of license to which he is referring. Each month 14 the staff of the board may inspect the list of permits issued by each local building 15 permit official in this state to ensure that no person is working as a contractor 16 without an active license. Upon request, parish and municipal permitting authorities 17 shall provide to board staff, all unredacted documents relating to building permits, 18 applications, and inspections. 19 B. It shall be sufficient for the indictment, affidavit, or complaint to allege 20 that the accused unlawfully engaged in business as a contractor without authority 21 from the State Licensing Board for Contractors. Prior to the issuance of any building 22 permit, the local building permit official shall require that the applicant for such 23 permit produce proof that the applicant possesses an appropriate, applicable 24 contractor's license issued by the board, or that the applicant's proposed building 25 activity is exempt from such licensure in accordance with this Chapter. 26 C.(1) Anyone violating this Section of this Chapter shall be guilty of a 27 misdemeanor and, upon conviction, shall be fined a sum not to exceed five hundred 28 dollars per day of violation, or three months in prison, or both. 29 (2) Notwithstanding any action taken by the board, any person, who does not 30 possess a license from the board, and who violates any of the provisions of this Page 38 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 Section, and causes harm or damage to another in excess of three hundred dollars, 2 upon conviction, shall be fined not less than five hundred dollars nor more than five 3 thousand dollars, or imprisoned, with or without hard labor, for not less than six 4 months nor more than five years, or both. 5 (3) Any fine so assessed and collected shall be remitted to the contractor's 6 educational trust fund provided for in R.S. 37:2162(J). The local building permit 7 official shall require any applicant claiming an exemption for residential construction 8 activities to execute an affidavit attesting to the claimed exemption. Such affidavit 9 shall be submitted to the local building permit official prior to the issuance of a 10 permit. Such affidavit shall be executed on a form provided by the board. 11 D. The district attorney, in whose jurisdiction the violation occurs, shall have 12 sole authority to prosecute criminal actions pursuant to this Section. The provisions 13 of this Chapter shall preempt any municipal or other local regulatory examination 14 authority over all licensees. If the governing authority or any municipality or parish 15 finds that the state minimum standards do not meet its needs, the local government 16 may provide requirements not less stringent than those specified by the state. 17 §2161. Power to sue and be sued; injunction; restraining orders Construction 18 management 19 The board may sue and be sued and, to that end, shall have the right to go 20 into court in the jurisdiction in which the provisions of this Chapter are being 21 violated, and upon affidavit, secure a temporary restraining order and a writ of 22 injunction restraining and prohibiting the violation of this Chapter and the 23 performance of any work then being done or about to be commenced. 24 A.(1) Any person who performs, attempts to perform, or submits a price, bid, 25 or offer to perform work in construction management whose scope of authority and 26 responsibility include supervision, oversight, direction, or in any manner assumes 27 charge for the construction services provided to an owner by a contractor or 28 contractors, in which the value of the construction project is: Page 39 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (a) In excess of fifty thousand dollars for a commercial construction project, 2 shall possess a license from the board in the major classification applicable to the 3 type of work being performed on the construction project. 4 (b) In excess of seventy-five thousand dollars for a residential construction 5 project, shall possess a license from the board in the classification of residential 6 construction. 7 (c) In excess of seven thousand five hundred dollars for a home 8 improvement project, shall possess a license from the board in the classification of 9 home improvement construction. 10 (2) An architect or engineer ensuring compliance with the plans and 11 specifications for the construction project on behalf of the owner, or construction 12 manager whose scope of authority and responsibilities do not include any of the tasks 13 provided for in this Subsection and does not subcontract actual construction work, 14 is not required to obtain a contractor's license. 15 (3) An employee of the owner who supervises the construction or ensures 16 compliance with the plans and specifications on behalf of the owner but does not bid 17 or perform construction work for which a license is required does not have to be 18 licensed. 19 §2162. Violations; civil penalty; jurisdiction Joint venture 20 A. Any person who violates any provision of this Chapter shall, after notice 21 and a hearing, be liable to the board for a fine of up to ten percent of the total 22 contract or the value of the work being performed for which there is a violation. In 23 addition to the fine, the board may impose costs and attorney fees for each offense. 24 If the board brings an action against a person pursuant to this Section and fails to 25 prove its case, it shall be liable to the person for the payment of his reasonable 26 litigation expenses as defined in R.S. 49:965.1(D). 27 B. In addition to or in lieu of the criminal penalties and administrative 28 sanctions provided in this Chapter, the board may issue an order to cease and desist 29 to any person or firm engaged in any activity, conduct, or practice constituting a Page 40 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 violation of any provision of this Chapter. The order shall be issued in the name of 2 the state of Louisiana under the official seal of the board. 3 C. If the person or firm to whom the board directs a cease and desist order 4 does not cease or desist the proscribed activity, conduct, or practice immediately, the 5 board may cause to issue in any court of competent jurisdiction and proper venue, 6 a writ of injunction enjoining the person or firm from engaging in any activity, 7 conduct, or practice prohibited by this Chapter. 8 D. Upon proper showing by the board that a person or firm has engaged or 9 is engaged in any activity, conduct, or practice prohibited by this Chapter, the courts 10 shall issue a temporary restraining order restraining the person or firm from engaging 11 in the unlawful activity, conduct, or practice pending the hearing on a preliminary 12 injunction. In due course, a permanent injunction shall be issued after a hearing, 13 commanding the cessation of the unlawful activity, conduct, or practice without the 14 board having to give bond. A temporary restraining order, preliminary injunction, 15 or permanent injunction issued pursuant to the provisions of this Section shall not be 16 subject to being released upon bond. 17 E. In the suit for an injunction, the board may demand of the defendant a 18 penalty as provided in Subsection A of this Section. A judgment for penalty, 19 attorney fees, and costs may be rendered in the same judgment in which the 20 injunction is made absolute. If the board brings an action against a person pursuant 21 to the provisions of this Section and fails to prove its case, then it shall be liable to 22 the person for the payment of his attorney fees and costs. 23 F. The trial of the proceeding by injunction shall be summary and by the 24 judge without a jury.* 25 G. Anyone violating this Chapter who fails to cease work, after proper 26 hearing and notification from the board, shall not be eligible to apply for a 27 contractor's license for a period not to exceed one year from the date of official 28 notification to cease work. Page 41 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 H. It shall be within the power of the board to withhold approval, for up to 2 six months, of any application from anyone who, prior to said application, has been 3 found in violation of this Chapter. 4 I. All fines or penalties collected by the board pursuant to the provisions of 5 this Section for violations of any provision of this Chapter shall, annually, at each 6 audit of the board, be transferred to a separate contractor's educational trust fund to 7 be used for educational purposes as determined by the board. 8 J. Upon the expiration of the delays set forth in the Administrative Procedure 9 Act for an aggrieved party to appeal any fine or penalty assessed by the board, if an 10 appeal has not been so filed, the board may initiate civil proceedings against the 11 party seeking to obtain a judgment against that party in an amount equivalent to the 12 amount of the fine assessed, together with legal interest and all reasonable attorney 13 fees incurred by the board in bringing the action. The proceedings shall be 14 conducted on a summary basis, with the defendant being limited to the defense of 15 lack of notice as to the meeting of the board during which the fine was assessed. All 16 proceedings brought pursuant to the provisions of this Subsection shall lie in any 17 court of competent jurisdiction in this state. 18 K. In addition to all other authority granted to the board by the provisions of 19 this Chapter, the board shall have the authority to cause to be issued to any person 20 who is alleged to have violated any of the provisions of this Chapter a citation setting 21 forth the nature of the alleged violation, which provides to that person the option of 22 either pleading no contest to the charge and paying a fine to the board prescribed by 23 any provision of this Chapter or appearing at an administrative hearing conducted by 24 the board regarding the alleged violation. The citations may be issued by any 25 authorized employee of the board, and may be issued either in person or via the 26 United States Postal Service, postage prepaid and properly addressed. This 27 Subsection shall not be applicable to any criminal enforcement action brought 28 pursuant to the provisions of this Chapter. 29 L. Any person registered or licensed pursuant to the provisions of this 30 Chapter who is the subject of two or more complaints received by the board within Page 42 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 a six month period shall have his name and the nature of each complaint received 2 posted on the board's website. 3 When two or more persons bid, contract, or perform construction work as a 4 joint venture on any project for which a contractor's license is required, the joint 5 venture is required to be properly licensed by the board at the time of bid, contract, 6 and performance of work in the classification for which the joint venture will 7 perform work. This requirement applies to but is not limited to a corporation, 8 limited liability company, limited liability partnership, general partnership, and any 9 other entity operating as a joint venture on a project for which a contractor's license 10 is required from this board. This licensing requirement is required before persons 11 or contractors are permitted to bid, contract, or perform work on a project for which 12 a license is required regardless of whether they intended to operate as a joint venture. 13 §2163. Bid procedures; penalty Engaging in business of contracting without 14 authority prohibited; penalty 15 A.(1) It is the intent of this Section that only contractors who hold an active 16 license be awarded contracts either by bid or through negotiation. All architects, 17 engineers, and awarding authorities shall place in their bid specifications the 18 requirement that a contractor shall certify that he holds an active license under the 19 provisions of this Chapter by displaying his license number on the bid envelope. In 20 the case of an electronic bid proposal, a contractor may submit an authentic digital 21 signature on the electronic bid proposal accompanied by the contractor's license 22 number in order to meet the requirements of this Paragraph. Except as otherwise 23 provided herein, if the bid does not display the contractor's license number on the bid 24 envelope, the bid shall be automatically rejected, shall be returned to the bidder 25 marked "Rejected", and shall not be read aloud. It shall be unlawful for any person 26 to engage or to continue in this state in the business of contracting, or to act as a 27 contractor as defined in this Chapter, unless he holds an active license as a contractor 28 in accordance with the provisions of this Chapter. 29 (2) Any bid that does not require the contractor to hold an active license shall 30 state the exemption on the bid envelope and shall be treated as a lawful bid for the Page 43 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 purpose of this Section. It shall be unlawful for any contractor, licensed or 2 unlicensed, who advertises in any form or in any news medium, to advertise that he 3 is a licensed contractor without specifying the type of license to which he is 4 referring. 5 B. It shall be sufficient for the indictment, affidavit, or complaint to allege 6 that the accused unlawfully engaged in business as a contractor without authority 7 from the board. 8 C.(1) Anyone found to be in violation of this Section shall be guilty of a 9 misdemeanor and, upon conviction, shall be fined a sum not to exceed five hundred 10 dollars per day of violation, or three months in prison, or both. 11 (2) Notwithstanding any action taken by the board, any person who does not 12 possess a license from the board and violates any of the provisions of this Section, 13 and causes harm or damage to another in excess of three hundred dollars, upon 14 conviction, shall be fined not less than five hundred dollars nor more than five 15 thousand dollars, or imprisoned, with or without hard labor, for not less than six 16 months nor more than five years, or both. 17 (3) On any project that has been classified by the architect or engineer, prior 18 to the bid, as a plumbing project, bids may only be accepted from those who have as 19 a qualifying party a person who has complied with the provisions of Chapter 16 of 20 this Title, R.S. 37:1361 et seq. Any fine assessed and collected in accordance with 21 the provisions of this Section shall be remitted to the contractor's educational trust 22 fund provided for in R.S. 37:2164(I). 23 (4) Any contractor who submits a bid for a type of construction for which 24 he does not hold an active license to perform shall be acting in violation of this 25 Section and shall be subject to all provisions for violations and penalties thereof. 26 (5) Any subcontractor who submits a bid or quotes a price to any unlicensed 27 or inactive prime contractor shall be subject to all provisions for violations and 28 penalties thereof. Page 44 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 B. In no event shall proposal forms be issued later than twenty-four hours 2 prior to the hour and date set for receiving proposals. 3 C. The architect, engineer, or awarding authority shall classify public 4 projects. Once the project is classified, any interested person may object by sending 5 a certified letter to both the board and the architect, engineer, or awarding authority 6 stating with particularity the reasons for the objection. The objection shall be 7 received by the board and by the architect, engineer, or awarding authority at least 8 ten working days prior to the date on which bids are to be opened and then submitted 9 to a committee for determination. The chairman of the board shall appoint the 10 committee which shall consist of board members. The committee may approve the 11 project classification or add an additional classification by vote of a majority of the 12 members of the committee. The matter shall be resolved and the board shall notify 13 the architect, engineer, and awarding authority no less than five days prior to the time 14 when bids are to be opened, unless all parties agree that a delay will not cause harm 15 to others. 16 D.(1) Any awarding authority or its agent who violates the provisions of this 17 Section shall be deemed guilty of a misdemeanor and, upon conviction, be punished 18 by a fine of not less than one hundred dollars or more than two hundred dollars or 19 imprisonment in the parish jail for not less than thirty days nor more than sixty days, 20 or both. Any fine and imprisonment are at the discretion of the court. 21 (2) In addition, the board may, after notice and a hearing, impose a fine upon 22 any awarding authority or its agent who intentionally violates the provisions of this 23 Section. The board may not impose any fine as authorized by this Paragraph on the 24 state, its agencies, boards, or commissions, or any political subdivision thereof. 25 The district attorney in whose jurisdiction the violation occurs shall have sole 26 authority to prosecute criminal actions pursuant to this Section. Page 45 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 §2164. Reciprocity Violations; civil penalty; jurisdiction 2 Any applicant holding a license in good standing in a comparable 3 classification in another state recognized by the respective agency as a reciprocity 4 state may have the trade portion of the examination waived upon written certification 5 from that state in which the applicant is licensed. The business law portion of the 6 examination and the provisions of R.S. 37:2156.1 shall not be waived. Applicants 7 shall comply with all other licensing requirements of this state; however, for good 8 cause, the board may waive any other licensing requirement. 9 A. Any person who violates any provision of this Chapter shall, after notice 10 and a hearing, be liable to the board for a fine of up to ten percent of the total 11 contract or the value of the work bid or being performed for which there is a 12 violation. In addition to the fine, the board may impose administrative costs and 13 attorney fees for each offense. In determining whether to impose an administrative 14 penalty, the board or residential subcommittee shall consider the seriousness of the 15 violation, cooperation on the part of the contractor, and the history of previous 16 violations. 17 B. In addition to or in lieu of the criminal penalties and administrative 18 sanctions provided in this Chapter, the board may issue an order to cease and desist 19 to any person or firm engaged in any activity, conduct, or practice constituting a 20 violation of any provision of this Chapter. The order shall be issued in the name of 21 the state of Louisiana under the official seal of the board. 22 C. If the person or firm to whom the board directs a cease and desist order 23 does not cease or desist the proscribed activity, conduct, or practice immediately, the 24 board may cause to issue in any court of competent jurisdiction and proper venue, 25 a writ of injunction enjoining the person or firm from engaging in any activity, 26 conduct, or practice prohibited by this Chapter. 27 D. Upon proper showing by the board that a person or firm has engaged or 28 is engaged in any activity, conduct, or practice prohibited by this Chapter, the court 29 shall issue a temporary restraining order restraining the person or firm from engaging 30 in the unlawful activity, conduct, or practice pending the hearing on a preliminary Page 46 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 injunction. In due course, a permanent injunction shall be issued after a hearing, 2 commanding the cessation of the unlawful activity, conduct, or practice without the 3 board having to give bond. A temporary restraining order, preliminary injunction, 4 or permanent injunction issued pursuant to the provisions of this Section shall not be 5 subject to being released upon bond. 6 E. In the suit for an injunction, the board may demand of the defendant a 7 penalty as provided in Subsection A of this Section. A judgment for penalty, 8 attorney fees, and costs may be rendered in the same judgment in which the 9 injunction is made absolute. If the board brings an action against a person pursuant 10 to the provisions of this Section and fails to prove its case, then it shall be liable to 11 the person for the payment of his attorney fees and costs. 12 F. The trial of the proceeding by injunction shall be summary and by the 13 judge without a jury. 14 G. Anyone violating this Chapter who fails to cease work, after proper 15 hearing and notification from the board, shall not be eligible to apply for a 16 contractor's license for a period not to exceed one year from the date of official 17 notification to cease work. 18 H. It shall be within the power of the board to withhold approval, for up to 19 one year, of any application from anyone who, prior to the application, has had his 20 license revoked by the board or residential subcommittee. 21 I. All fines or penalties collected by the board pursuant to the provisions of 22 this Section for violations of any provision of this Chapter shall, annually, at each 23 audit of the board, be transferred to a separate contractor's educational trust fund to 24 be used for educational purposes as determined by the trustees of the fund. The 25 Construction Education Trust Fund shall make an audited financial report to the 26 board annually. Page 47 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 J. Upon the expiration of the delays set forth in the Administrative Procedure 2 Act for an aggrieved party to appeal any fine or penalty assessed by the board, if an 3 appeal has not been so filed, the board may initiate civil proceedings against the 4 party seeking to obtain a judgment against that party in an amount equivalent to the 5 amount of the fine assessed, together with legal interest and all reasonable attorney 6 fees incurred by the board in bringing the action. The proceedings shall be 7 conducted on a summary basis, with the defendant being limited to the defense of 8 lack of notice as to the meeting of the board during which the fine was assessed. All 9 proceedings brought pursuant to the provisions of this Subsection shall lie in any 10 court of competent jurisdiction in this state. 11 K. In addition to all other authority granted to the board by the provisions of 12 this Chapter, the board shall have the authority to cause to be issued to any person 13 who is alleged to have violated any of the provisions of this Chapter a citation setting 14 forth the nature of the alleged violation, which provides to that person the option of 15 either pleading no contest to the charge and paying a fine to the board prescribed by 16 any provision of this Chapter or appearing at an administrative hearing conducted by 17 the board regarding the alleged violation. The citations may be issued by any 18 authorized employee of the board, and may be issued either in person, by certified 19 mail with a return receipt, or by email with a read receipt from the noticed person. 20 This Subsection shall not be applicable to any criminal enforcement action brought 21 pursuant to the provisions of this Chapter. 22 §2165. Residential Building Contractors Subcommittee; membership; terms Bid 23 procedures; penalty 24 A.(1) There is hereby established within the State Licensing Board for 25 Contractors the Residential Building Contractors Subcommittee, consisting of five 26 members who shall be residents of the state of Louisiana and who have been actively 27 engaged in residential contracting for at least five years prior to appointment by the 28 governor. Three members of the subcommittee shall be appointed by the governor 29 from a list of not less than ten names submitted by the Louisiana Homebuilders 30 Association as certified by its president and secretary. One member of the Page 48 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 subcommittee shall be appointed to represent congressional district one, one member 2 to represent congressional districts four and five, one member to represent 3 congressional district three, one member to represent congressional district two, and 4 one member to represent congressional district six. It is the intent of this Section that 5 only contractors who hold an appropriate active license be awarded contracts either 6 by bid or through negotiation. All architects, engineers, and awarding authorities 7 shall place in their bid specifications the requirement that a contractor shall certify 8 that he holds an active license in accordance with the provisions of this Chapter by 9 displaying his license number on the bid envelope. In the case of an electronic bid 10 proposal, a contractor may submit an authentic digital signature on the electronic bid 11 proposal accompanied by the contractor's license number in order to meet the 12 requirements of this Paragraph. Except as otherwise provided by this Subsection, if 13 the bid does not display the contractor's license number on the bid envelope, the bid 14 shall be automatically rejected, returned to the bidder marked "Rejected", and not be 15 read aloud. 16 (2) Any bid that does not require the contractor to hold an active license shall 17 state the exemption on the bid envelope and shall be treated as a lawful bid for the 18 purposes of this Section. 19 (3) On any project that has been classified by the architect or engineer, prior 20 to the bid, as a plumbing project, bids may be accepted only from those who have as 21 a qualifying party a person who has complied with the provisions of Chapter 16 of 22 this Title, R.S. 37:1361 et seq. 23 (4) Any contractor who submits a bid for a type of construction for which 24 he does not hold an active license to perform shall be acting in violation of this 25 Section and shall be subject to all provisions for violations and penalties thereof. 26 (5) Any subcontractor who submits a bid or quotes a price to any unlicensed 27 or inactive prime contractor shall be subject to all provisions for violations and 28 penalties thereof. Page 49 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 B. The terms of office of the initial members appointed to the subcommittee 2 shall be one for a three-year term, one for a two-year term, and one for a one-year 3 term, to be determined by the governor. Thereafter, all members shall be appointed 4 for three-year terms. All terms shall commence thirty days after the appointment and 5 all members shall serve until their successors have been appointed and qualified. 6 Vacancies occurring in the membership of the subcommittee for any reason shall be 7 filled by appointment by the governor for the unexpired term. No person shall be 8 appointed for more than two consecutive terms. The governor may remove a 9 member for cause. In no event shall proposal forms be issued later than twenty-four 10 hours prior to the hour and date set for receiving proposals. 11 C. The executive director of the State Licensing Board for Contractors shall 12 serve as executive director of the subcommittee and shall not have voting privileges. 13 The architect, engineer, or awarding authority shall classify public projects. Once 14 the project is classified, any interested person may object by sending a certified letter 15 to both the board and the architect, engineer, or awarding authority stating with 16 particularity the reasons for the objection. The objection shall be submitted to the 17 board and the architect, engineer, or awarding authority in writing by certified mail 18 at least ten working days prior to the date on which bids are to be opened. Upon 19 receipt of the protest for the project classification, the Licensing Board Compliance 20 and Administrative staff will review the scope of work and offer a recommendation 21 for the proper classification to the architect, engineer, or awarding authority within 22 five working days after receipt of the objection. Any objection to the classification 23 not made in accordance with this Section shall be considered waived. 24 D.(1) An ex officio member of the State Licensing Board for Contractors 25 shall serve on the subcommittee and shall serve as the liaison between the 26 subcommittee and the board. He shall be appointed by the chairman of the State 27 Licensing Board for Contractors and shall serve as the chairman of the 28 subcommittee. His presence at a meeting of the subcommittee may be counted 29 toward establishing a quorum of the subcommittee, and he shall only have voting 30 privileges if either of the following circumstances exists: Page 50 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 (a) His presence is necessary to establish a quorum of the subcommittee and 2 there is a tie vote between the appointed members of the subcommittee. 3 (b) His presence is necessary to establish a quorum of the subcommittee, 4 only one appointed member of the subcommittee is present, and an additional ex 5 officio member has been appointed pursuant to Paragraph (2) of this Subsection. 6 Any awarding authority or its agent who violates the provisions of this Section shall 7 be deemed guilty of a misdemeanor and, upon conviction, be punished by a fine of 8 not less than one hundred dollars or more than two hundred dollars or imprisonment 9 in the parish jail for not less than thirty days nor more than sixty days, or both. Any 10 fine and imprisonment are at the discretion of the court. 11 (2) An additional ex officio member of the State Licensing Board for 12 Contractors shall serve on the subcommittee only if his presence, along with the ex 13 officio member serving pursuant to Paragraph (1) of this Subsection, is required to 14 establish a quorum of the subcommittee. This additional ex officio member shall be 15 appointed by the chairman of the State Licensing Board for Contractors and shall 16 serve as the vice chairman of the subcommittee. He shall only have voting privileges 17 if there is a tie vote between an appointed member of the subcommittee and the ex 18 officio member serving as chairman of the subcommittee. In addition to the 19 penalties prescribed in Paragraph (1) of this Subsection, the board may, after notice 20 and a hearing, impose a fine upon any awarding authority or its agent who 21 intentionally violates the provisions of this Section. The board may not impose any 22 fine as authorized by this Paragraph on the state, its agencies, boards, or 23 commissions, or any political subdivision thereof. 24 (3) The State Licensing Board for Contractors shall pay per diem and travel 25 expenses for ex officio members. 26 E. A quorum of the subcommittee shall consist of a majority of its members 27 and the subcommittee shall meet at least once every other month to conduct its 28 business. The executive director shall give written notice to each member of the 29 time and place of each meeting at least ten days prior to the scheduled date of the 30 meeting. Page 51 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 602 ENROLLED 1 F. Each member of the subcommittee shall be entitled to a per diem 2 allowance of seventy-five dollars for each meeting they attend and be reimbursed for 3 all travel expenses necessarily incurred in attending meetings. 4 Section 2. R.S. 37:2152(C), 2166 through 2173, Part II of Chapter 24 of Title 37 of 5 the Louisiana Revised Statutes of 1950, comprised of R.S. 37:2175.1 through 2175.6, and 6 Chapter 24-A of Title 37 of the Louisiana Revised Statutes of 1950, comprised of R.S. 7 37:2181 through 2192, are hereby repealed in their entirety. SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 52 of 52 CODING: Words in struck through type are deletions from existing law; words underscored are additions.