Provides with respect to the conduct of contractors

House Bill 924 amends existing disaster repair contract law and creates comprehensive new restrictions on contractor conduct during disaster periods. The bill enacts Louisiana Revised Statutes 37:2159.2 to establish detailed prohibitions on direct solicitation, insurance-related misrepresentations, and license lending by contractors offering disaster-related residential contracting services during a six-month "catastrophe response period" following a declared gubernatorial disaster or emergency. The legislation defines "direct solicitation" to include in-person contact at residences, placement of written materials encouraging insurance claims, and unsolicited telephone or electronic communications, but excludes contact requested by property owners or general advertising not directed to specific properties. The bill adds a new licensee violation to Revised Statutes 37:2158(A)(8)(c) for contractors who solicit, receive, or agree to receive compensation in exchange for permitting their license, license number, classification, registration, or name to be used by another person, establishing a rebuttable presumption of this violation when a licensee accepts compensation related to another person advertising, contracting, bidding, obtaining permits, or performing work using the licensee's credentials. Additionally, the bill amends Revised Statutes 9:2784.1(B)(4) to require that all disaster repair contracts include notice of the owner's ten-day cancellation right in at least fourteen-point bold type along with a simple cancellation form, with failure to include these elements extending the cancellation period to thirty days.

The practical effect of this legislation falls most heavily on residential contractors, particularly those offering roofing, water mitigation, remediation, exterior repairs, and other disaster-related services to homeowners in declared emergency areas. Contractors must now refrain from unsolicited contact with property owners during the six-month catastrophe response period unless the owner initiates contact and must provide detailed written disclosures before accepting signatures or deposits, including statements that the contractor is not a public adjuster, cannot waive deductibles, and cannot handle insurance claims. Homeowners gain enhanced protections, including the ability to void contracts entered into in violation of the new restrictions for up to one year from execution, with refunds of all payments made before cancellation and liability for contractors limited to documented emergency mitigation work, materials ordered or delivered, and reasonable overhead. Contractors who employ others to solicit on their behalf remain responsible for those workers' violations, and license lending or renting is now explicitly prohibited with substantial penalties. The Louisiana State Licensing Board for Contractors gains enforcement authority to impose fines of up to ten percent of the total contract value or five thousand dollars per violation, whichever is greater, along with administrative costs and attorney fees, with consideration given to violation severity, contractor cooperation, and prior violations.

This legislation operates within the existing framework of Louisiana's contractor licensing and regulation under Title 37 of the Revised Statutes and builds upon established disaster repair contract cancellation rights under Revised Statutes 9:2784.1, which has previously allowed owners to cancel such contracts within ten days. The bill also references related statutes including Revised Statutes 37:2159.1, Revised Statutes 22:1275 regarding insurance regulation, and Revised Statutes 51:451 et seq. governing unfair or deceptive practices, indicating that the new restrictions operate in conjunction with existing consumer protection and insurance law. The legislation creates a rebuttable presumption framework in license renting cases, placing an initial burden on the licensing board to establish compensation acceptance while allowing licensees to rebut the presumption, a structure consistent with administrative law principles. The voidability provision making any purported waiver of owner rights "null, void, and unenforceable as against public policy" reflects strong public policy concerns protecting homeowners during vulnerable post-disaster periods and prevents contractors from contractually undermining the protections the legislation grants.