Breaking Down Updates on Construction from the 2025 Legislative Session

Construction Update: Act Nos. 239 and 422

Eric Landry, Breazeale, Sachse & Wilson, L.L.P.

Louisiana REALTORS® Counsel

ACT No. 239

Summary: Act 239 became effective as of effective August 1, 2025 and mandates that municipalities and parishes must issue permits and conduct inspections for roof construction and reroofing projects in accordance with the Louisiana State Uniform Construction Code Council's adopted versions of the International Building Code and the International Residential Code. The act applies to all buildings, not just one- and two-family dwellings, and requires compliance with Chapter 15 of the IBC for most structures and Chapters 8 and 9 of the IRC for one- and two-family dwellings.

Details: This proposed act would add to La. R.S. 40:1730.23 and require any Louisiana municipality or parish that issues construction permits to also issue permits for and conduct inspections of all roof construction and reroofing projects. For all buildings other than one- and two-family dwellings, the permit issuing authority must comply with Chapter 15 of the International Building Code. For one- and two-family dwellings, it must comply with Chapters 8 and 9 of the International Residential Code. Note: Chapters 8, 9, and 15 of the International Residential Code are adopted and promulgated by the La State Uniform Construction Code Council.

ACT No. 422

Summary: Amends the laws regarding licensed contractors to address numerous factors, including: (i) starting January 1, 2026, any person who advertises working on any portion of a roofing system on a residential structure for which the project value is $7,500 or more shall hold the classification of Residential Roofing or Residential Construction; (ii) expands definition of “Residential Contractor” to include any person performing home improvement for which the project value is $7,500 or more, (iii) adds definitions for "Residential roofing" and "Residential roofing contractor", and requires residential roofing contractors to pass the residential roofing trade examination and meet all other licensure requirements of a residential contractor; (iv) removes “triplexes and fourplexes” from “residential structure” definition.

Details:

Modifies R.S. 37:2150.1 definitions:

• Added (7) "Employee" means a worker whose employer deducts taxes from his wages and reports his annual earnings to the Internal Revenue Service using a W-2 form.
• Changes the dollar amount in (10) “Home Improvement” definition from “$7,500 or more but is less than $50,000” to when “seven thousand five hundred or more.
• Expands the definition of (11) “Home improvement contractor” to any person who undertakes or attempts to undertake or submits a price or bid “or offers to construct, supervise, superintend, oversee, direct, perform, or in any manner assume charge of a home improvement project for which the project value is at least seven thousand five hundred dollars but less than fifty thousand dollars. A home improvement contractor shall not perform any structural work that is integral to the structural integrity of any new or existing structure, including but not limited to footings, foundations, outside walls, skeleton, bearing columns and interior load bearing walls, floor slabs, or roofing systems to any type.”
• Adds definition (12) "License" means any form of license or registration the board is authorized to issue in accordance with this Chapter.
• Extends dollar threshold in (14) “Mold remediation contractors” to $7,500 or more.
• Extends dollar threshold in (16) “Plumbing Contractor” to $10,000 or more.
• Expands definition of “Residential Contractor” to include: (i) Any person bidding or performing home improvement for which the project value is $7,500 or more, and (ii) Any person performing the installation of a modular home with a value equal to or greater than $50,000.
• Adds definition: (20) "Residential roofing" means the construction, alteration, repair, improvement, demolition, putting up, tearing down, furnishing labor, or furnishing labor together with materials or equipment, or the installation of materials or equipment for any phase of roofing specific to a residential structure for which the project value is seven thousand five hundred dollars or more.
• Adds definition: (21) "Residential roofing contractor" means any person who undertakes to, attempts to, or submits a price or bid, or offers to construct, supervise, superintend, oversee, direct, perform, or in any manner assume charge of a residential roofing project for which the project value is seven thousand five hundred dollars or more.
• Removes “triplexes and fourplexes” from “residential structure” definition.
• Adds that a residential structure more than three floors in height may be built by a person holding a building construction and residential construction license.

Additional Licensing requirements for Contractors:

§2156. Applications; licenses; fees; renewals

• Now states that a person licensed or registered by the board shall bid, contract, conduct all business transactions, and perform work in the name as it appears on the current license or registration and the official records of the State Licensing Board for Contractors.
• Now states that licenses dependent on insurance requirements or certifications shall not be eligible for multiple-year renewal.
• Gets rid of the board’s discretion in charging delinquent fees following the expiration date of a license.
• Now states that licenses or classifications issued based on certifications or credentials shall expire upon the expiration date of the credential or certification.
• Now states that all applications are considered active for a period of one year after the date of submission. Applications not completed for any reason shall be considered invalid after that time.
• No longer treats applications for renewal as a new application after one year from date of its expiration. An application for a new license must be submitted and upon approval, a new license shall be issued.
• Applicants shall state the classifications for which he is applying from the list of major classifications. This list was expanded to include “mold remediation” and home improvement”.
• An applicant for a license or registration is now required to submit a financial statement.
• New minimum net worth requirements:
• Residential and commercial licenses, their subclassifications, and all specialty classifications with the exception of labor only specialty, shall have a net worth of fifty thousand dollars or more.
• Home improvement, mold remediation, and labor only specialties shall have a net worth of twenty-five thousand dollars or more.
• Each applicant, principal, and designated qualifying party is now required to complete their own application and pass a background check. There is a list of what the investigation will relate to.

§2156.3. Installation of solar energy equipment and systems

• A Solar Energy Equipment license is now required to install solar energy equipment or systems if the project value is $10,000 or more.
• An applicant for this license must hold one or more or the following licenses: building construction, electrical, mechanical, or residential construction.

Adds §2156.4 Residential Roofing: which states,

• Starting January 1, 2026, any person who advertises bid, quote or estimate to construct, supervise, direct, oversee, or perform any construction, modification, repair, or maintenance, etc. of any portion of a roofing system on a residential structure for which the project value is $7,500 or more shall hold the classification of Residential Roofing or Residential Construction.
• A residential roofing contractor shall pass the residential roofing trade examination and meet all other licensure requirements of a residential contractor.

§2157. Exemptions

• Now requires an affidavit of exemption to obtain a building permit to perform any work on a legally established church.
• Similar exemption requirement for owners of a property who supervise home projects, when they do not build more than one residence per year.

§2158. Revocation and suspension of licenses; issuance of cease and desist orders; debarment; violations; penalty; criminal penalty

• License may be revoked for any misrepresentation or fraudulent use of a license for any purpose by any person other than whom the license was issued.
• Allows for revocation of license for failure to notify board within 30 days of any change to the information provided in original application.
  Also allows revocation of license for failure to notify board of a criminal, civil, or administrative action within 30 days. This applies to the licensee or a principal.
• License may also be revoked for failure to obtain permit to perform or begin work, misrepresenting the value or scope of work, failure to obtain inspections, failure to have written contract signed and dated by all parties, failure to bid, contract, or perform in the name as appears on license or registration, failure to maintain or provide board with requested docs and info within 5 business days of request.