Provides with respect to prohibited contractor services

House Bill 388 amends Louisiana's contractor licensing statutes to add a new prohibited act and increase associated penalties. The bill enacts R.S. 37:2159.1(9) to add unsolicited homeowner contact to the list of prohibited contractor acts, defining this category broadly to include door hangers, business cards, magnets, flyers, pamphlets, text messages, emails, and any unscheduled sales visits. Simultaneously, the bill amends R.S. 37:2164(A) to increase the civil penalty for violations of the contractor services chapter from up to ten percent of the total contract or value of work involved to up to twenty percent, effectively doubling the maximum fine exposure for violations.

The practical effect of this legislation falls primarily on persons and entities performing contracting services in Louisiana, who must now refrain from all forms of unsolicited direct outreach to homeowners. Contractors who engage in any of the enumerated contact methods without prior homeowner solicitation face potential administrative enforcement by the licensing board, which after notice and a hearing can impose fines up to twenty percent of the contract value plus administrative costs and attorney fees. This substantially increases the financial risk for violation and may require contractors to revise their marketing and customer acquisition practices to rely exclusively on referrals, existing client relationships, or solicited inquiries rather than proactive outreach campaigns.

The legislation operates within Louisiana's existing regulatory framework for contractor licensing and discipline found in Title 37 of the Louisiana Revised Statutes. The contractor licensing board already possessed authority under R.S. 37:2159.1 to establish prohibited acts, with R.S. 37:2164 providing the enforcement mechanism and penalty structure. By adding unsolicited contact to the prohibited acts list and doubling the maximum penalty, the bill tightens regulatory control over contractor marketing practices while maintaining the board's existing discretionary authority to consider the circumstances, seriousness, and history of violations when determining the actual penalty amount within the enhanced ceiling.