The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Xavier I. Alexander.
DIGEST
SB 392 Engrossed 2024 Regular Session Abraham
Present law provides for functions and duties of the State Licensing Board for Contractors (board),
including licensure of persons performing contracting services.
Present law 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 any new residential structure where the entire cost is $75,000 or more
when the property is used for residential or any improvements or repairs where the entire cost
exceeds $7,500 to an existing residential structure.
Proposed law retains present law except changes the entire cost for a new residential structure from
$75,000 to $50,000.
Present law 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.
Proposed law retains present law except provides that the project value for home improvement
contracting is $7,500 but less than $50,000. Further provides that "home improvement contracting"
shall not include the performance of any structural work that is integral to the structural integrity of
any new or existing structure, including but not limited to footings, foundation, outside walls,
skeleton, bearing columns and interior load bearing walls, and floor slabs.
Present law defines a "residential contractor" as any person who constructs a fixed building or
structure for sale or use by another as a residence or who, for a price, commission, fee, wage, or other
compensation, undertakes or offers to undertake the construction or superintending of the
construction of any residential structure which is not more than three floors in height, to be used by
another as residence, when the cost of the undertaking exceeds $75,000. Further provides that a
"residential contractor" means any person performing home improvements when the cost of the
undertaking exceeds $75,000.
Proposed law retains present law except changes the cost of the undertaking for constructing an
residential structure from $75,000 to $50,000 or greater. Further changes the cost of the undertaking
for home improvements exceeds $7,500. Present law provides for exemptions to present law.
Proposed law add to present law exemptions to include any person performing work as a
subcontractor for a residential construction license holder or building construction license holder,
except for electrical, mechanical, plumbing, mold remediation, asbestos, or hazardous materials
scopes of work.
Present law provides that every home improvement work performed by a licensee for home
improvement contracting services in an amount in excess of $7,500 but not in excess of $75,000
shall be in writing.
Proposed law provides that every home improvement work performed by a licensee for home
improvement contracting services in an amount of $7,500 but not less than $50,000 shall be in
writing.
Present law provides that any licensee performing construction management work in which the value
of the construction project is in excess of $50,000, for commercial construction projects, shall
possess a license from the board in the major classification applicable to the type of work being
performed on the construction project.
Proposed law retains present law except changes the value of it in the construction project to $50,000
or more.
Present law provides that any licensee performing construction management work in which the value
of the construction project is in excess of $75,000, for residential construction, shall for a residential
construction project, possess a residential construction license.
Proposed law retains present law except changes the value of it in the construction project from
$75,000 to $50,000 or more.
Present law provides that any licensee performing construction management work in which the value
of the home improvement project is in excess of $7,500, for home improvement projects, shall
possess a home improvement license.
Proposed law retains present law except changes the value of the home improvement project to
$7,500 or more.
Effective August 1, 2024.
(Amends R.S. 37:2150.1(4)(a)(ii), (8), (15), 2159(A)(intro para), and 2161(A); adds R.S.
37:2157(A)(18) and (19)) Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill
1. Restores language that requires a person to have a contractors license for any
improvements or repairs where the entire cost of work performed exceeds $7,500 for
an existing residential structure.
2. Provides that the project value for "home improvement contracting" shall be $7,500
or more but less than $50,000.
3. Defines a residential contractor as any person who constructs a fixed building or
structure for sale or by use of another when the cost of the undertaking is $50,000 or
greater. Further provides that a "residential contractor" means any person performing
home improvements when the cost of the undertaking exceeds $7,500.
4. Removes the definition "structural".
5. Provides exemptions for any person performing certain work for either a residential
construction license holder or building construction license holder.
6. Requires all home improvement work performed by a licensee for home
improvements contracting services in the amount of $7,500 or more but less than
$50,000 be in writing.
7. Provides that a residential construction license is required to perform construction
management work in which the construction project is $50,000 or more.
8. Provides that a home improvement license is required to perform home improvement
projects in which the home improvement work is $7,500 or more.
9. Restores present law to provide that any person who performs, attempts to perform
work in construction management whose scope of authority includes certain work
assumes charge for the construction service provided by an owner by a contractor or
contractors, if the value of the project is $50,000 or more for a commercial project.
10.Make technical changes.
Restores present law value of construction project to $7,500 for a home improvement
project.