Business Law Question

The Louisiana State Licensing Board (LSLBC) was created in 1956 by Act 233 of the Legislature (La. R.S. 37:2150-2192).  The mission and purpose of this agency is the protection of the general public from incompetent and fraudulent acts of a contractor while promoting the integrity of the construction industry.  The State Licensing Board for Contractors consists of nineteen (19) Commercial members appointed by the Governor representing all segments of the contracting industry, and five (5) Residential Subcommittee members.

Louisiana State Licensing
Board
for Contractors
Michael B. McDuff
EXECUTIVE DIRECTOR
Judy Dupuy
ADMINISTRATOR
Overview
The Louisiana State Licensing Board for Contractors
(LSLBC) was created in 1956 by Act 233 and is governed
under Title 37:2150-2192 of the Louisiana Revised
Statutes, Chapter 24.
The LSLBC mission is to protect the general public and
the integrity of the construction industry.
Through the Commercial Board and its Residential
Subcommittee, the LSLBC regulates commercial,
industrial, and residential construction projects.
Unlicensed Contractors…
• Cut corners
• Display no skills, knowledge, or
competency
• Are not insured or bonded to
perform construction work
• Offer cheaper services to the
consumer
• “Sounds too good to be true and
you get what you pay for”
3
Licensed Contractors…
• Do it the right way!
• Take pride in their work
• Demonstrate competency and knowledge of construction
industry standards
• Doing business compliant and legal by the laws of Louisiana
and the Federal Government
4
The Board
15 members on Commercial Board
from various trade organizations
• AGC, ABC, MCA, ASA, NECA, LAPA, Oilfield Construction
Five Residential Sub-Committee members
• Three from home builders’ associations
Board meets monthly
• To consider applications for licenses
• To hold administrative hearings
Staff
Approximately 50 employees
• Administration
• Applications
• Examinations
• Compliance
(19 Investigators throughout the state)
LSLBC License Types
• Commercial License
• Residential License
• Mold Remediation License
• Home Improvement Registration
Commercial License
What does Commercial License cover?
• Commercial projects with a value of $50,000 or more
• Subcontractor/Specialty Trades for commercial projects with a
value of $50,000 or more
• Exceptions:
– Electrical/Mechanical/Plumbing exceeding $10,000
– Hazardous materials with a value of $1 or more
➢ Hire licensed subcontractors
➢ More than 19,000 licensed commercial contractors
Commercial License
What are the requirements for licensure?
• Complete and submit an application
• Financial statement with $10,000 net worth
• Applicant must pass Business & Law exam
• Applicant must pass trade exam, if applicable
• Business entities must be registered with the Louisiana Secretary of State
Electrical, Mechanical
& Plumbing Work
Electrical/Mechanical/Plumbing projects exceeding $10,000
(material and labor combined) requires a Commercial license
from the Louisiana State Licensing Board for Contractors.
For Plumbing contractors, contractors must provide a copy of
their Master Plumbing License from the State Plumbing Board
of Louisiana
Residential License
What does Residential License cover?
• Residential construction or home improvement projects
exceeding $75,000
• Subcontractors/specialty trades for residential projects
where the labor and materials exceeds $7500 for the
following specialty classifications: Residential pile driving;
residential foundations; residential foundations; residential
roofing; residential masonry/stucco; and residential
swimming pools
➢ More than 4,000 licensed residential contractors
➢ Hire licensed subcontractors
Residential License
What are the requirements for licensure?
•
•
•
•
•
Complete and submit an application
Financial statement with a minimum of $10,000 net worth
Applicant must pass Business and Law exam
Applicant must pass trade exam, if applicable
Provide proof of general liability & workers’ compensation
insurance
• Business entities must be registered with the Louisiana
Secretary of State
Which license is required
when building homes?
Residential Building Contractor License
• Single family homes
• A single duplex, triplex, or fourplex
Commercial Building Construction License
• Three or more single family homes built under the
same contract in the same subdivision
• Two or more duplexes, triplexes, or fourplexes
• Apartment buildings or condominiums
Residential Specialty
Classifications
Effective January 20, 2016, residential subcontractors who bid
or perform work in one of the six new specialty areas listed
below must be licensed for that specialty when the work
exceeds $7,500 (including labor and materials) on any new
single family residential home, duplex, triplex, or fourplex.
Residential pile driving
Residential foundations
Residential framing
Residential roofing
Residential masonry/stucco
Residential swimming pools
Residential Subcontract Labor
Only Specialty Classifications
Subcontractors working under the direct supervision of a
licensed residential building contractor may obtain a
Subcontract Labor Only specialty classification by:
• Completing and submitting an application
• Submitting an affidavit executed by a licensed residential building
contractor that attests to the subcontractor’s quality of work and
character
• Passing the Law, Rules, and Regulation Exam
• Providing proof of current general liability and workers’
compensation insurance
Home Improvement
Registration
What does this registration cover?
• Home improvement projects with a value exceeding $7,500
but not in excess of $75,000
What are the requirements to obtain registration?
• Complete and submit an application
• Provide proof of general liability & workers’ compensation
insurance
• Business entities must be registered with the Louisiana
Secretary of State
➢ More than 2,200 registered home improvement contractors
Mold Remediation License
What does this license cover?
• Mold Remediation projects with a value of $1.00 or more including
labor and materials
What are the requirements for licensure?
•
•
•
•
Complete and submit application
Financial statement with a minimum of $10,000 net worth
Applicant must pass Business and Law exam
Applicant must complete Louisiana’s Unfair Trade and Consumer
Protection Law seminar
• Applicant must provide proof of Mold Remediation certification
• Provide proof of general liability & workers’ compensation
insurance
• Business entities must be registered with the Louisiana Secretary
of State
➢ More than 200 licensed mold remediation contractors
Major Classifications
Building Construction
Residential Building Contractor
Electrical Work
Mechanical Work
Heavy Construction
Municipal and Public Works
Highway, Street, and Bridge
Plumbing
7,548
3,817
3,071
2,144
1,610
1,394
1,343
550
Examinations
• 67 classifications requiring examination
o See pages 10-16 in binder for list of classifications
o Most current and updated classifications are found on LSLBC’s website
www.lacontractor.org
• Examinations are given Monday thru Saturday
• Frequently Administered Exams
Business and Law
Residential Building Contractor
Building Construction
Electrical Work (Statewide)
Mechanical Work (Statewide)
1506
343
303
212
167
• Reciprocity agreements with 22 Boards in 11 States
Examination
Testing Locations
Ten Testing Locations Statewide
– Baton Rouge main office
– Bossier Parish Community College (Bossier City)
– Delgado Community College (New Orleans)
– Fletcher Technical Community College (Shriever)
– LSU-Alexandria
– Louisiana Delta Community College (Monroe)
– Northshore Technical Community College (Mandeville)
– Nunez Community College (Chalmette)
– South Louisiana Community College-Lafayette Campus
– Sowela Technical Community College (Lake Charles)
Reciprocity
Louisiana has reciprocity agreements with:
• Alabama
• Arkansas
• Georgia
• Kentucky
• Mississippi
• North
Carolina
• South
Carolina
• Ohio
• Texas
• Tennessee
• Utah
Other Agencies Who Require
Licensure and Regulation
State Fire Marshal
State Plumbing Board
State Horticulture Commission
Department of Natural Resources
Department of Health and Hospitals
Department of Environmental Quality
Contracts
We calculate total of all labor and material
cost to determine whether a contract reaches
licensure limits.
Compliance Section
Responsibilities:
Monitor and investigate residential, commercial, and industrial
construction projects statewide
Prepare violation cases for Board hearings and provide
testimony as needed
Educate public on state contractor licensing law
Compliance Section Statistics
Routine site visits
12,000+
Complaints received
858
Cases scheduled for administrative hearings
326
Contractors found guilty and fined/sanctioned
311
Contractors found not guilty/dismissed
6
Complaints Filed to LSLBC
Homeowners
•
Licensed Contractors
Permit Offices
Agencies
Penalties for Violating Licensing Law
➢ Unlicensed contractors up to 10% of contract value
(Commercial & Residential)
➢ Licensed contractors
• Maximum of $1,000 per violation
• Suspension
• Revocation of License
• Probation
➢ Home Improvement – up to 25% of contract value
➢ Other legal remedies: cease & desist orders, permanent injunctions,
and court costs
➢ Contractor Fraud – May be imprisoned up to 5 years when convicted
by a law enforcement agency
Partnerships with Other Agencies
• Attorney General
• Inspector General
• District Attorneys
• Sheriffs’ Offices
• State Fire Marshal
• Awarding authorities
• Building officials
• Permit offices
• Mayors’ offices
• Universities
• Louisiana Department
of Insurance
• Louisiana Workforce
Commission
• Division of Administration
Outreach
•
•
•
•
•
•
•
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Home and garden shows
SBA procurement conferences
Job fairs
Business summits & expos
Contractors college
Public awareness campaigns
Storm damaged areas
Hurricane response teams
Louisiana Contractors
Accreditation Institute
In early 2016, the Louisiana Economic Development (LED), Louisiana State
Licensing Board for Contractors (LSLBC) and Louisiana Community and
Technical College System (LCTCS) identified a need to assist small
construction companies with building a solid foundation for business growth
and success. Through their joint efforts, these agencies formed the Louisiana
Contractors Accreditation Institute (LCAI).
This innovative program was designed to help Louisiana’s small businesses
prepare for the business and law portion of the contractors’ exam, while
building a better understanding of the construction industry. Topics covered
included the bid process; contract management; estimating; equipment
management; occupational safety; risk management; bonding; financial and
business management among others.
Louisiana recognized for
Innovation in Regulation
•
The Louisiana State Licensing Board for Contractors (LSLBC) the
Louisiana Economic Development (LED) and Louisiana Community
and Technical College System (LCTCS) were awarded the 2017
Innovation in Regulation Award from the National Association of State
Contractors Licensing Agencies (NASCLA) on August 30, 2017, at the
association’s 55th Annual Conference in Denver, Colorado.
•
Through live, interactive distance learning at 13 locations throughout
the state, LCAI has produced 243 and 149 graduates in both the fall of
2016 and spring of 2017 courses. The success of this program is a
product of the strong collaboration and communication within the
partnership, the leveraging of technology, and a considerable demand
for this particular subject matter.
Licensed Contractor…
IT’S THE LAW
Three ways to verify licensure:
1. LSLBC website www.lacontractor.org
2. LSLBC mobile app – La. Contractor
3. Text-to-Verify 1-855-999-7896
LSLBC website: www.lacontractor.org
LSLBC Mobile App – LA. Contractor
Text-to-Verify
1-855-999-7896
• New method to verify licensure
• Easy to use
• Simply send a text message to
1-855-999-7896 with one of the
following search methods:
o contractor’s name
o company name
o license/registration number
(only use one search method per text)
• Real time results will be texted
back stating their licensure
status
• It will also return a message if
no results are found.
QUESTION
&
ANSWER
Contact Information
Website: www.lacontractor.org
1.225.765.2301
1.800.256.1392
Physical and Mailing Address:
2525 Quail Drive
Baton Rouge, LA 70808