Often times, people ask why it is referred to as the “practice of law.” Quite simply, the answer is because the law is always changing. In May of this year, I wrote about potential changes that could impact the construction industry following the 2013 Session of the Louisiana Legislature. Suffice it to say, the legislature did not go out of its way to amaze the populace with any widespread change in any field (insert general cynicism here). In the past calendar year, though, it has done some things that are immediately relevant in the construction field. Importantly, with regards to home improvement contracting, things have changed.
Casting a Wider Net
Before a discussion on the changes to home improvement contracting, I would direct you to previously written articles on this blog home improvement contracting generally. In March 2012, Seth Smiley wrote a very succinct article, outlining the most important aspects of the home improvement contracting articles, found at Louisiana Revised Statutes 37:2175.1 – 2175.6. From this article, we see that one of the most important aspects of determining the applicability of the home improvement contracting provisions rests on the definition of home improvement contracting. Previously, La. R.S. 37:2175.1 stated:
[e]very agreement to perform home improvement contracting services, as defined by this Part, in an amount in excess of seventy five hundred dollars, but not in excess of seventy-five thousand dollars, shall be in writing…
Since then, things have changed. During the 2012 legislative session, the Governor signed Act 193, which expanded the range of home improvement contracting projects to include any project between one thousand five hundred dollars and seventy-five thousand dollars. This very tightly limited the amount of work a person could contract to do without needing to be registered as a home improvement contractor with the Louisiana State Licensing Board for Contractors (LSLBC). Compounded upon the price range limitation, is the incredibly broad definition of “home improvement contracting,” which according to La. R.S. 37:2150.1(7) means :
the reconstruction, alteration, renovation, repair, modernization, conversion, improvement, removal, or demolition, or the construction of an addition to any pre-existing owner occupied building which building is used or designed to be used as a residence of dwelling unit, or to structures which are adjacent to such residence or building.
Given the fact that the LSLBC is not one to define these terms with much specificity, it can be argued that almost any type of work or home repair you contracted to perform from August 2012 to the present time calls for a home improvement contractor certificate. If you do not already have one, now might be the time to consider speaking with an attorney or contacting the LSLBC.
Expanding the Exceptions
At the same time that the home improvement contracting statutes have been made more restrictive with regards to contracts to perform certain work, certain exceptions have recently been expanded upon to make it easier on the handy homeowner. As I discussed in my May article, Senate Bill 81 proposed to expand the rights of homeowners that wished to perform certain home improvement contracting services upon their own property. After some tweaking, this exception will not become the law, effective August 1, 2013, albeit in slightly different form. The idea of relaxing the requirements for homeowners prevailed, but in different language. The statute governing exceptions to the home improvement contracting part (La. R.S. 2175.5), will now read, in part:
A. The following persons are excepted from the provisions of this Part:
(2)(a) A homeowner who physically performs the home improvement work on his personal residence.
(b) An individual who physically performs home improvement work on other property owned by him when the home improvement work has a value of less than seven thousand five hundred dollars.
Summary of Things Changed
Essentially, the following questions will need to be asked:
- First, am I the person contracting to perform any of the type of work as defined by 37:2150.1(7)? If I am the person that will be performing that work, is the amount in writing and am I getting paid for it? If I am getting paid for it, is it more than $1,500 but less than $75,000? If it is, you need to be registered.
- Second, am I the person that is performing the defined work? Is that work being performed on my person residence? If yes, I do not need to be registered. If not, is that work being performed on propert I own that is not my residence? If that is the case, is the work to be performed valued at more than $7,500? If it is, I need to be registered as a home improvement contractor.
Confusing? Hopefully not. As always, though, the safest thing to do is consult an attorney because, as practitioners of law, we necessarily need to keep ourselves, and our clients, updated in changes to the law. The above is a perfect illustration of that point.