This section limits bids on certain public work to contractors with active licenses, requires license information or an exemption to be shown on the bid envelope, and gives the board and awarding authorities related classification, protest, and enforcement powers.
§2165. Bid procedures; penalty A.(1) It is the intent of this Section that only contractors who hold an appropriate active license be awarded contracts either by bid or through negotiation. All architects, engineers, and awarding authorities shall place in their bid specifications the requirement that a contractor shall certify that he holds an active license in accordance with the provisions of this Chapter by displaying his license number on the bid envelope. In the case of an electronic bid proposal, a contractor may submit an authentic digital signature on the electronic bid proposal accompanied by the contractor's license number in order to meet the requirements of this Paragraph. Except as otherwise provided by this Subsection, if the bid does not display the contractor's license number on the bid envelope, the bid shall be automatically rejected, returned to the bidder marked "Rejected", and not be read aloud. (2) Any bid that does not require the contractor to hold an active license shall state the exemption on the bid envelope and shall be treated as a lawful bid for the purposes of this Section. (3) On any project that has been classified by the architect or engineer, prior to the bid, as a plumbing project, bids may be accepted only from those who have as a qualifying party a person who has complied with the provisions of Chapter 16 of this Title, R.S. 37:1361 et seq. (4) Any contractor who submits a bid for a type of construction for which he does not hold an active license to perform shall be acting in violation of this Section and shall be subject to all provisions for violations and penalties thereof. (5) Any subcontractor who submits a bid or quotes a price to any unlicensed or inactive prime contractor shall be subject to all provisions for violations and penalties thereof. (6) Any person required to be licensed by the board that bids a project requiring a bid bond, the posting of a bid bond for the project, or certificates of insurance evidencing mandated coverage and fails to provide such valid bonds or coverage when due shall be subject to all provisions for violations and penalties thereof. (7) Upon being awarded a bid, the person required to be licensed shall maintain the required insurance coverage or bonding as required in the bid proposal. (8) Any person who violates the provisions of this Section may be subject to disciplinary action by the board, including suspension or revocation of the contractor's licenses and the imposition of fines and administrative costs. B. Where bids are to be received or forms furnished by the awarding authority, no proposal forms or specifications shall be issued to anyone except a licensed contractor who holds an active license or his authorized representation. In no event shall proposal forms be issued later than twenty-four hours prior to the hour and date set for receiving proposals. C. The architect, engineer, or awarding authority shall classify public projects. Once the project is classified, any interested person may object by sending a certified letter to both the board and the architect, engineer, or awarding authority stating with particularity the reasons for the objection. The objection shall be submitted to the board and the architect, engineer, or awarding authority in writing by certified mail or electronic mail at least ten working days prior to the date on which bids are to be opened. Upon receipt of the protest for the project classification, the Licensing Board Enforcement and Administrative staff will review the scope of work and offer a recommendation for the proper classification to the architect, engineer, or awarding authority within five working days after receipt of the objection. Any objection to the classification not made in accordance with this Section shall be considered waived. D.(1) Any awarding authority or its agent who violates the provisions of this Section shall be deemed guilty of a misdemeanor and, upon conviction, be punished by a fine of not less than one hundred dollars or more than two hundred dollars or imprisonment in the parish jail for not less than thirty days nor more than sixty days, or both. Any fine and imprisonment are at the discretion of the court. (2) In addition to the penalties prescribed in Paragraph (1) of this Subsection, the board may, after notice and a hearing, impose a fine upon any awarding authority or its agent who intentionally violates the provisions of this Section. The board may not impose any fine as authorized by this Paragraph on the state, its agencies, boards, or commissions, or any political subdivision thereof. Acts 1995, No. 638, §1, eff. Feb. 1, 1996; Acts 1999, No. 1175, §1; Acts 2001, No. 659, §1; Acts 2012, No. 803, §9; Acts 2022, No. 195, §1; Acts 2025, No. 422, §1.