Louisiana State Licensing Board for Contractors 5/14/2018 3:05 AM Louisiana State Licensing Board for Contractors Michael B. McDuff EXECUTIVE DIRECTOR Judy Dupuy ADMINISTRATOR © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

5/14/2018 3:05 AM 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 Committee, the LSLBC regulates commercial, industrial, and residential construction projects. © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

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 (16 Investigators throughout the state)

Residential Builder License Residential construction or home improvement projects exceeding $75,000 Financial statement with a minimum of $10,000 net worth Applicant must pass Business and Law exam Applicant must pass trade exam Provide proof of general liability & workers’ compensation insurance Six (6) hours of continuing education per year More than 3,500 licensed residential contractors

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

Contractor Requirements Complete application for licensure Pass both Business and Law & specialty trade exam Provide proof of current liability & workers’ compensation insurance Subcontractors performing work under any specialty listed for homeowners who are building their own home must be licensed for that specialty

Subcontractors working under the direct supervision of a licensed residential building contractor may obtain a subcontractor-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.

Electrical, Mechanical & Plumbing Work Electrical/Mechanical/Plumbing projects exceeding $10,000 (material and labor combined) require a license from the Louisiana State Licensing Board for Contractors.

Home Improvement Registration Home improvement projects with a value exceeding $7,500 but not in excess of $75,000 Complete and submit an application Provide proof of general liability & workers’ compensation insurance More than 1,800 registered home improvement contractors

MOLD REMEDIATION....... “Mold Remediation” means the removal, cleaning, sanitizing , demolition, or other treatment, including preventive activities, of Mold or Mold-Contaminated matter that was not purposely grown at that location. Mold Remediation License required in excess of $1 Homeowner is exempt on his own property. Licensee shall not perform both Mold Assessment and Mold Remediation services on the same property.

Commercial License Commercial projects with a value of $50,000 or more Electrical/Mechanical/Plumbing exceeding $10,000 Hazardous materials with a value of $1 or more Financial statement with $10,000 net worth Applicant must pass Business & Law exam Applicant must pass trade exam, if applicable Hire licensed subcontractors More than 19,000 licensed commercial contractors

Major Classifications Building Construction 7,323 Electrical Work 2,939 Mechanical Work 2,110 Heavy Construction 1,615 Municipal and Public Works 1,350 Highway, Street, and Bridge 1,373 Plumbing 526

Contracts We calculate all labor and material cost to determine whether a contract reaches licensure limits.

Examinations 100 classifications requiring examination Examinations given Monday thru Saturday Eight locations statewide including the Baton Rouge main office, Bossier Parish Community College, Delgado Community College (New Orleans), LSU-(Alexandria), and Sowela Computer Center (Lake Charles) Fletcher Technical College, (Schriever) Louisiana Delta College-(Monroe) North Shore Technical Community College-(Mandeville-coming soon) Reciprocity agreements with 22 Boards in 12 States

Reciprocity Louisiana has reciprocity with: Alabama, Arkansas, Georgia, Kentucky, Mississippi, North Carolina, Ohio, South Carolina, Texas, Tennessee, Utah, and Virginia.

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

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 535 Cases scheduled for administrative hearings 372 Contractors found guilty and fined/sanctioned 357 Contractors found not guilty/dismissed 15

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 Home and garden shows SBA procurement conferences Job fairs Business summits & expos Contractors college Public awareness campaigns Storm damaged areas Hurricane response teams

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”

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

QUESTION & ANSWER 5/14/2018 3:05 AM © 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Contact Information Website: www.lslbc.louisiana.gov 1.225.765.2301 1.800.256.1392 Physical and Mailing Address: 2525 Quail Drive Baton Rouge, LA 70808