2022 Louisiana Laws
Revised Statutes
Title 37 - Professions and Occupations
§37:2158. Revocation and suspension of licenses; issuance of cease and desist orders; debarment; violations; penalty; criminal penalty

RS 37:2158 - Revocation and suspension of licenses; issuance of cease and desist orders; debarment; violations; penalty; criminal penalty

A. No person may engage in the business of contracting, or act as a contractor as defined in this Chapter, unless he holds an active license as a contractor in accordance with the provisions of this Chapter. 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 person or licensee licensed pursuant to the provisions of this Chapter for any of the following violations:

(1) Undertaking, attempting to, or submitting a price or bid; offering 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 building, highway, road, railroad, sewer grading, excavation, pipeline, public utility structure, project development, housing, or housing development, improvement, or any other construction undertaking without possessing a license for which a license is required or without possessing a license with the proper classification.

(2) Falsely representing or advertising regarding the person's license status or classification.

(3) Any dishonest or fraudulent act as a contractor which has caused damage to another, as adjudged by a court of competent jurisdiction.

(4) Bidding on, quoting, estimating, or performing a job for which a license is required, the licensee shall hold the classification for the majority of work performed.

(5) Misrepresentation of fact by an applicant in obtaining a license; misrepresentation of fact by an applicant or licensee in providing information, statements, or documents to the staff or board; deception by omission; and providing false testimony to the board.

(6) Failure to comply with the provisions of this Chapter or the rules and regulations promulgated pursuant thereto.

(7) Entering into a contract with an unlicensed contractor involving work or activity for the performance of which a license is required by this Chapter.

(8) Permitting the contractor's license to be used by another contractor when the other contractor does not hold a license for the classification of work for which the contract is entered.

(9) Failure to maintain a qualifying party to represent the licensee.

(10) Failure to continue to fulfill any of the requirements for original licensure.

(11) Problems relating to the ability of the contractor, its qualifying party, or any of its principal owners or principal shareholders to engage in the business of contracting, as demonstrated by their contracting business history or experience.

(12) Disqualification or debarment by any public entity.

(13) Failure to notify the board of any change in corporate name, company name, address of the licensee, or any other contact information as required.

(14) Assisting a person to circumvent the provisions of this Chapter.

(15) Failure of a contractor performing residential or home improvement construction in accordance with this Chapter to provide, in writing to the party with whom he has contracted to perform contracting services, his name, contracting license number, classification, and current insurance certificates evidencing the amount of liability insurance maintained and proof of workers' compensation coverage when requested by the contracting party for whom the work is to be performed.

(16) Abandoning or failing to perform, without justification, any contract or project engaged in or undertaken by any licensee or deviating from or disregarding plans or specifications in any material respect without the consent of the owner.

(17) Conviction of a crime or the entering of a plea of guilty or nolo contendere to a criminal charge under the laws of the United States or any other state related to the construction business involving dishonesty or causing physical harm or damages to another person.

(18) Efforts to deceive or defraud the public.

(19) It is a violation for a mold remediation contractor to:

(a) Fail to provide a written report to each person for whom he performs such services for compensation.

(b) Render, submit, subscribe, or verify false, deceptive, misleading or unfounded opinions or reports.

(c) Perform both mold assessment and mold remediation on the same property.

(d) Own an interest in both the entity which performs mold assessment services and the entity which performs mold remediation services on the same property.

B.(1) In determining the value of a project, any division of a contract or scope of work into parts which would avoid the necessity of a license to bid, contract, or perform the work will be disregarded, and the divided parts of the contract or scope of work will be treated as one contract or scope of work for purposes of determining whether a license is required.

(2) For the purpose of determining a scope of work, the board shall review whether the contract or contracts in question constitute a single scope of work or whether they constitute separate scopes of work. The board may be guided in this interpretation by a review of the drawings, plot plans, blueprints, architectural plans, site maps, technical drawings, engineering designs, sketches, diagrams, black lines, blue lines, drafts, or other renderings depicting the total scope of work.

C. In the event of a revocation of a license or a qualifying party status, the person or qualifying party shall be ineligible to apply for a license or qualifying party status for one year following the revocation.

D. The board may refuse to license any entity that has been debarred pursuant to R.S. 39:1672. Further, the board may hold a hearing for any licensee debarred pursuant to R.S. 39:1672 and suspend or revoke a license, order the licensee to discontinue all work on a construction project, or further debar a person or licensee from bidding on projects for any public entity for up to three years.

E. Any party to the proceeding who is aggrieved by the action of the board may appeal the decision in accordance with the Administrative Procedure Act, R.S. 49:950 et seq.

F. In accordance with the provisions of the Administrative Procedure Act, R.S. 49:950 et seq., any person who applies for and is denied a license by the board, or whose license has been revoked, rescinded, or suspended, may appeal to the Nineteenth Judicial District Court in and for the parish of East Baton Rouge to determine whether the board has abused its discretion.

Added by Acts 1956, No. 113, §8. Amended by Acts 1964, No. 113, §8; Acts 1992, No. 681, §1, eff. July 6, 1992; Acts 1997, No. 773, §1; Acts 2009, No. 156, §1; Acts 2012, No. 163, §1; Acts 2019, No. 371, §1; Acts 2022, No. 195, §1.