HLS 23RS-168 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 199
BY REPRESENTATIVES ROMERO AND DAVIS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CONTRACTORS: Provides relative to the State Licensing Board for Contractors
1 AN ACT
2To amend and reenact R.S. 37:2150.1(4)(a)(ii) and (15), 2151(B)(5), 2155(G)(1), 2156.1(E),
3 2158(A)(15), and 2161(A)(2) and to repeal R.S. 37:2150.1(4)(a)(iii), (8), and (9),
4 2156(C)(5), 2157(A)(16), 2159, 2159.1, and 2161(A)(3), relative to the State
5 Licensing Board for Contractors; to provide for certain definitions; to provide for
6 board membership; to provide for the powers and duties of the residential contractors
7 subcommittee; to repeal definitions and the fee relative to home improvement; to
8 repeal certain home improvement contracting and construction licensure
9 requirements; to provide for the construction management licensure threshold for
10 residential construction projects; and to provide for related matters.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 37:2150.1(4)(a)(ii) and (15), 2151(B)(5), 2155(G)(1), 2156.1(E),
132158(A)(15), and 2161(A)(2) are hereby amended and reenacted to read as follows:
14 §2150.1. Definitions
15 * * *
16 (4)(a) "Contractor" means any person who undertakes to, attempts to, or
17 submits a price or bid or offers to construct, supervise, superintend, oversee, direct,
18 or in any manner assume charge of the construction, alteration, repair, improvement,
19 movement, demolition, putting up, tearing down, furnishing labor, or furnishing
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1 labor together with material or equipment, or installing material or equipment for any
2 of the following:
3 * * *
4 (ii) Any new residential structure, or renovation, repair, and maintenance of
5 an existing structure, where the entire cost is seventy-five fifty thousand dollars or
6 more when the property is used for residential purposes.
7 * * *
8 (15) "Residential contractor" means any person who constructs a fixed
9 building or structure for sale or use by another as a residence, constructs an
10 accessory building or out building adjacent to a structure intended to be used as a
11 residence, or who, performs renovation, repair, or maintenance of an existing
12 structure intended to be used for residential purposes for a price, commission, fee,
13 wage, or other compensation, undertakes or offers to undertake the construction or
14 superintending of the construction of any residential structure which is not more than
15 three floors in height, to be used by another as a residence, when the cost of the
16 undertaking equals or exceeds seventy-five fifty thousand dollars. The term
17 "residential contractor" includes all persons who receive an additional fee for the
18 employment or direction of labor, or any other work beyond the normal architectural
19 or engineering services. "Residential contractor" also means any person performing
20 home improvement contracting as provided for in this Section when the cost of the
21 undertaking exceeds seventy-five thousand dollars. It Residential contractor shall
22 not include the manufactured housing industry or those persons engaged in building
23 residential structures that are mounted on metal chassis and wheels.
24 * * *
25 §2151. State licensing board for contractors; membership; qualifications; tenure;
26 vacancies
27 * * *
28 B. The members shall be selected and appointed as follows:
29 * * *
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1 (5) At least two members shall have had the greater part of their experience
2 as a subcontractor in the construction industry in fields other than electrical or
3 mechanical construction, and shall be appointed from a list of four names submitted
4 by the American Subcontractors Association of Louisiana. One member appointed
5 by the chair of the House Committee on Commerce or his designee and one member
6 appointed by the chair of the Senate Committee on Commerce, Consumer Protection,
7 and International Affairs or his designee.
8 * * *
9 §2155. Residential Contractors Subcommittee; membership; terms; powers; duties
10 * * *
11 G. Subject to the approval of the board, the residential subcommittee shall
12 have all of the following powers and duties:
13 (1) To adopt rules and regulations to govern residential and home
14 improvement contractors in this state.
15 * * *
16 §2156.1. Requirements for issuance of a license
17 * * *
18 E. Residential construction and home improvement construction applicants
19 for licensure shall be required to submit certificates evidencing workers'
20 compensation coverage in compliance with Title 23 of the Louisiana Revised
21 Statutes of 1950, and liability insurance in a minimum amount of one hundred
22 thousand dollars or liability protection provided by a liability trust fund as authorized
23 by R.S. 22:46(9)(d) R.S. 22:46 in a minimum amount of one hundred thousand
24 dollars.
25 * * *
26 §2158. Revocation and suspension of licenses; issuance of cease and desist orders;
27 debarment; violations; penalty; criminal penalty
28 A. No person may engage in the business of contracting, or act as a
29 contractor as defined in this Chapter, unless he holds an active license as a contractor
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1 in accordance with the provisions of this Chapter. The board and residential
2 subcommittee may revoke, suspend, or refuse to renew a license; issue cease and
3 desist orders to stop work; issue fines and penalties; or debar any person or licensee
4 licensed pursuant to the provisions of this Chapter for any of the following
5 violations:
6 * * *
7 (15) Failure of a contractor performing residential or home improvement
8 construction in accordance with this Chapter to provide, in writing to the party with
9 whom he has contracted to perform contracting services, his name, contracting
10 license number, classification, and current insurance certificates evidencing the
11 amount of liability insurance maintained and proof of workers' compensation
12 coverage when requested by the contracting party for whom the work is to be
13 performed.
14 * * *
15 §2161. Construction management
16 A. Any person who performs, attempts to perform, or submits a price, bid,
17 or offer to perform work in construction management whose scope of authority and
18 responsibility include supervision, oversight, direction, or in any manner assumes
19 charge for the construction services provided to an owner by a contractor or
20 contractors, in which the value of the construction project is:
21 * * *
22 (2) In excess of seventy-five fifty thousand dollars for a residential
23 construction project, shall possess a license from the board in the classification of
24 residential construction.
25 * * *
26 Section 2. R.S. 37:2150.1(4)(a)(iii), (8), and (9), 2156(C)(5), 2157(A)(16), 2159,
272159.1, and 2161(A)(3) are hereby repealed in their entirety.
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 199 Original 2023 Regular Session Romero
Abstract: Provides for certain residential contractor, construction, and construction
management licenses and repeals certain home improvement provisions.
Present law (R.S. 37: 2150.1(4)(a)) defines "contractor" as any person who undertakes to,
attempts to, or submits a price or bid or offers to construct, supervise, superintend, oversee,
direct, or in any manner assume charge of the construction, alteration, repair, improvement,
movement, demolition, putting up, tearing down, furnishing labor, or furnishing labor
together with material or equipment, or installing material or equipment for:
(1)Any building, highway, road, railroad, sewer, grading, excavation, pipeline, public
utility structure, project development, housing, or housing development,
improvement, or any other construction undertaking for which the entire cost is
$50,000 or more when the property is to be used for commercial purposes.
(2)Any new residential structure where the entire cost is $75,000 or more when the
property is used for residential purposes.
(3)Any improvements or repairs where the entire cost exceeds $7,500 to an existing
residential structure.
(4)Any mold remediation where the entire cost exceeds $7,500.
Proposed law expands a contractor's installation of material or equipment from any new
residential structure to also include the renovation, repair, and maintenance of an existing
residential structure.
Proposed law lowers the licensing threshold for residential structures from $75,000 to
$50,000.
Proposed law repeals the contractor classification for any improvements to an existing
residential structure where the entire cost exceeds $7,500.
Present law (R.S. 37:2150.1(8)) defines "home improvement contracting" as the
reconstruction, alteration, renovation, repair, modernization, conversion, improvement,
removal, or demolition, or the construction of an addition to any preexisting residential
structure which building is used or designed to be used as a residence or dwelling unit, or
to structures which are adjacent to such residence or building where the project value
exceeds $7,500 but is not greater than $75,000. Present law further provides that home
improvement contracting shall not include services rendered gratuitously.
Proposed law repeals present law.
Present law (R.S. 37: 2150.1(9)) defines "home improvement contractor" as any person who
undertakes or attempts to undertake or submits a price or bid on any home improvement
contracting project. Proposed law repeals present law.
Present law (R.S. 37:2150.1(15)) defines "residential contractor" as any person who
constructs a fixed building or structure for sale or use by another as a residence. Present law
also provides that "residential contractor" includes all persons who receive an additional fee
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for the employment or direction of labor, or any other work beyond the normal architectural
or engineering services.
Proposed law retains present law and adds that a residential contractor is a person who:
(1)Constructs an accessory building or an out building adjacent to a structure intended
to be used as residence.
(2)Performs renovation, repair, or maintenance of an existing structure intended to be
used for residential purposes.
Proposed law lowers the threshold for licensure of a residential contractor from a cost that
exceeds $75,000 to a cost that equals or exceeds $50,000.
Present law further defines "residential contractor" as any person performing home
improvement contracting when the cost exceeds $75,000. Proposed law repeals present law.
Present law (R.S. 37:2151(B)(5)) provides that at least 2 members of the board shall be
appointed from a list of 4 names submitted by the American Subcontractors Association of
La., and the greater part of their subcontractor experience should be in fields other than
electrical or mechanical construction.
Proposed law provides that 2 members shall instead be the House Commerce and Senate
Commerce chairpersons or their designees.
Present law (R.S. 37:2155(G)(1)) provides that the residential subcommittee has the power
and duty to regulate residential and home improvement contractors in the state.
Proposed law repeals the power and duty of the residential subcommittee to regulate home
improvement in the state.
Present law (R.S. 37:2156(C)(5)) provides that the home improvement fee shall not exceed
$50.00 for the additional license classification. Proposed law repeals present law.
Present law (R.S. 37:2156.1(E)) provides the licensure of residential construction and home
improvement construction. Proposed law repeals licensure for home improvement
construction.
Present law (R.S. 37:2157(A)(16)) provides for certain home improvement contracting
exemptions. Proposed law repeals present law.
Present law (R.S. 37:2158(A)(15)) provides that the board and residential subcommittee may
revoke, suspend, or refuse to renew a license; issue cease and desist orders to stop work;
issue fines and penalties; or debar any licensed person for failure of a contractor who
performs residential or home improvement construction.
Proposed law retains present law with respect to residential construction but proposed law
repeals present law with respect to home improvement construction.
Present law (R.S. 37:2159) provides that every agreement for any licensee to perform home
improvement contracting services in an amount in excess of $7,500, but no more than
$75,000, shall be in writing. Present law further provides that no work shall begin prior to
the signing of the contract and transmittal to the owner of a copy of the contract.
Proposed law repeals present law.
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Present law also provides that a home improvement contractor who fails to obtain a license
shall not be entitled to file a statement of claim or a statement of lien or privilege with
respect to monetary sums allegedly owed under any contract when the home improvement
contractor is required to possess a home improvement license issued by the residential
subcommittee.
Proposed law repeals present law.
Present law (R.S. 37:2159.1) prohibits persons performing home improvement contracting
from engaging in the following:
(1)Interpreting insurance policy provisions or advising an insured regarding coverage
or duties under the insured's property insurance policy.
(2)Adjusting a property insurance claim on behalf of an insured, unless the contractor
holds a public adjuster license.
(3)Providing an insured with an agreement authorizing repairs without providing a good
faith estimate of the itemized and detailed cost of services and materials for repairs
undertaken pursuant to a property damage claim.
(4)Sharing in any legal fee earned by an attorney.
(5)Requiring an insured to sign an attorney representation agreement on the attorney's
behalf.
(6)Accepting a fee, commission, or other valuable consideration in exchange for a
referral to an attorney or law firm by the person.
(7)Accepting an assignment of any rights, benefits, proceeds, or causes of action of an
insured under a property insurance policy prior to completing the work described in
the home improvement contract and prior to the property insurer conducting its
initial examination of the damage caused by the covered peril.
Proposed law repeals present law.
Present law requires any person performing work in construction management in excess of
$75,000 for a residential construction project to possess a license.
Proposed law (R.S. 37:2161(A)(2)) lowers the residential construction licensure threshold
from $75,000 to $50,000.
Present law (R.S. 37:2161(A)(3)) requires persons in construction management to possess
a license when the construction project is in excess of $7,500 for a home improvement
project. Proposed law repeals present law.
(Amends R.S. 37:2150.1(4)(a)(ii) and (15), 2151(B)(5), 2155(G)(1), 2156.1(E),
2158(A)(15), and 2161(A)(2); Repeals R.S. 37:2150.1(4)(a)(iii), (8), and (9), 2156(C)(5),
2157(A)(16), 2159, 2159.1, and 2161(A)(3))
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