LouisianaSB 3262026 Regular SessionSenateWALLET

CONTRACTORS: Provides relative to the State Licensing Board for Contractors. (8/1/26) (EN NO IMPACT See Note)

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Bill Overview

Analyzed Economic Effects

13 provisions identified: 2 benefits, 7 costs, 4 mixed.

Contractor violations bring fines and license risks

Beginning August 1, 2026, licensing-law violations can bring fines up to 10% of the contract or work value. When that value cannot be determined or does not apply, the maximum fine is $10,000. The board can also charge administrative costs and attorney fees per offense, considering staff investigation and prosecution work. Fines are payable within 90 days. Unpaid penalties can lead to suspension, denial of a license or registration, or refusal to renew.

Contractors face more discipline and reinstatement hurdles

Beginning August 1, 2026, the board can discipline contractors for violating underground utility damage-prevention rules or damaging property to induce a contract. Added grounds also include materially false permit information and unpaid materials or services after receiving sufficient project funds. Actions include fines, suspension, revocation, refusal to renew, and bans from contracting. Revocation of a license or qualifying-party status brings a three-year period of ineligibility. After that period, the person must appear before the board and obtain approval before a new license or status is issued.

Higher insurance requirements for residential contractors

Beginning August 1, 2026, covered contractors need at least $500,000 in liability insurance or liability-trust-fund protection, up from $100,000. This covers residential construction and its subclasses, mold remediation, and home improvement applicants and licensees. Coverage must last at least six months, cover every licensed type of work without exclusions, and name the board as certificate holder. Proof must identify the licensee, insurer, broker, policy number, and coverage dates. Contractors must also show workers' compensation coverage as required by Louisiana law.

New protections and limits for insured repairs

Beginning August 1, 2026, contractors must provide a detailed, good-faith estimate before offering an agreement authorizing insured property repairs. Cost changes caused by the insurer's adjustment do not alone break this rule. People cannot solicit or accept transfers of post-loss property insurance benefits, claim rights, or proceeds; covered agreements are void. Exceptions cover specified transfers to federally insured financial institutions, mortgage holders, later property buyers, and assignments involving liability coverage. Violations of the transfer ban are unfair or deceptive trade practices subject to Louisiana penalties.

Contractor applicants get background record privacy

Beginning August 1, 2026, the contractor board generally cannot share applicants' criminal-background information outside the agency. It can disclose information needed to act on an application or release records in a board administrative proceeding. Final fitness decisions and their legal grounds remain public. Legislative auditor and inspector general oversight continues.

Contractor training approvals avoid member conflicts

Beginning August 1, 2026, the residential subcommittee cannot approve continuing-education courses or written training provided by a board member. The restriction also covers subcommittee members and businesses they control.

Fewer home improvement licensing exemptions

Beginning August 1, 2026, the home improvement licensing exemption applies to residential contractors, no longer to building construction contractors. Subcontractors qualify only when contracting directly with the residential license holder. The exemption excludes electrical, mechanical, plumbing, mold remediation, water-well, asbestos, and hazardous-materials work. People doing home improvement work for a building construction license holder also lose the specified exemption.

More home projects require licensed contractors

Beginning August 1, 2026, modular-home installers follow residential contractor licensing rules for projects worth $50,000 or more, excluding factory-condition component costs. Water and sewer service-line projects serving buildings or homes fall under plumbing contractor rules at $10,000 or more. Mechanical contractors doing plumbing on projects worth $10,000 or more must hold a Louisiana master plumber license. Residential roofing rules cover buildings mainly used as homes with four or fewer dwellings. Roofing licensure applies at $7,500 or more, counting labor, materials, and equipment.

New contractor staffing and email deadlines

Beginning August 1, 2026, contractors must notify the board within 30 days when their qualifying party leaves the license. A replacement qualifying party must qualify within 60 days. Each licensee must keep a current email address on file for board notices. Board email counts as received when the board gets a delivery confirmation.

Tighter eligibility rules for contractor licenses

Beginning August 1, 2026, contractor license or registration applicants and qualifying parties must be U.S. citizens or legal residents. A qualifying party is the person who meets the license's qualification requirements. Businesses required to register with Louisiana's secretary of state must have authority to operate and be in good standing. The licensing authority must deny an application if the applicant or any principal fails any applicable licensing requirement.

Different deadlines for contractor discipline cases

Beginning August 1, 2026, general occupational-board discipline time limits do not apply to Louisiana's contractor board or construction code commission. Contractor license and rule cases instead generally must start within five years of the act or omission. Procedural motions can interrupt that period; related legal actions involving the licensee as a party or witness can pause it. The board retains emergency powers, including immediate suspension, when public health, safety, or welfare urgently requires action.

Public contractor listings but restricted investigation records

Beginning August 1, 2026, board staff must publish current contractors' names, addresses, contact details, and license information. Applicant, licensee, and violation records are exempt from public-records access unless introduced as evidence at a board hearing. Investigation materials stay undisclosed until completion and generally cannot be subpoenaed until the investigation ends and violations are decided at a hearing. A court can allow a subpoena if it would not necessarily hinder the agency and the investigation's subject. Board personnel cannot be subpoenaed in state civil cases to testify about pending investigations.

Construction education gets funds minus administrative fees

Beginning August 1, 2026, covered fines and penalties go annually to the Construction Education Trust Fund; the board keeps 4%. Trustees manage the fund, which receives an annual audit. Separate eligible public college construction-program allocations go out by October 1 after the board's annual audit, minus a 2% administrative fee. Industry advisers must approve spending, which must add to—not replace—other funding. Allocations for ineligible schools are redistributed among eligible schools in proportion to their shares.

Sponsors & Cosponsors

Sponsor

Mark Abraham
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 153 • No: 4

House vote • 5/27/2026

Read third time by title, amended, roll called on final passage, yeas 92, nays 4. The bill, having received two-thirds vote of the elected members, was finally passed, ordered to the Senate.

Yes: 92 • No: 4

House vote • 5/12/2026

Reported with amendments

Yes: 11 • No: 0

House vote • 5/5/2026