Did a federal grant let a contractor bid on a Louisiana project without a state license in 2013?

Plain-English summary

The Louisiana State Licensing Board for Contractors asked what happened to bidding on federally funded projects after the legislature repealed the licensing statute's federal-funding exemption. The 2013 opinion says the exemption was "no longer applicable": Act 107 of the 2011 Regular Session repealed it without replacement. Under the AG's reading, contractors generally needed a license before bidding, even if federal money paid for part of the project.

The opinion also recognized a narrower exception for a particular project. If an applicable federal law or regulation specifically prohibited requiring a license before a bid was submitted or considered for award, that federal rule would supersede a contrary state requirement. The AG said a potential bidder then bore responsibility to "identify and particularly point out" the specific federal provision.

Currency note

This opinion was issued in 2013. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Historical summary

Contractors bidding on federally funded work

At the time, federal funding alone no longer supplied the former state-law licensing exemption. The opinion distinguished funding from a specific federal rule that forbade making licensure a condition of bidding on the project.

State licensing board and public purchasers

The AG agreed with the Board that repeal removed the old exemption. The opinion said an identified federal prohibition would control for a particular project; it did not identify a federal regulation governing every federally funded bid.

Common questions

Did federal funding itself excuse a contractor from getting a Louisiana license before bidding?

No. The AG said Act 107 repealed the state exemption that had addressed work partially funded by the federal government. The opinion's remaining qualification depended on a specific applicable federal law or regulation.

Could a federal rule still let an unlicensed contractor submit a bid?

Yes, for a project governed by a federal provision that specifically barred a licensing condition before bid submission or before consideration for award. The AG said such a provision would supersede contrary state law.

Who had to identify that federal rule?

The AG placed that responsibility on the potential bidder, saying it should "identify and particularly point out" the provision prohibiting a license condition for the particular project.

Background and statutory framework

Before repeal, La.Rev.Stat. 37:2157(A)(6) exempted certain bidders on partially federally funded work when a federal law or regulation prohibited a license requirement. The quoted provision still required a successful bidder to qualify for a license before work began. The AG found that Act 107 of the 2011 Regular Session removed that provision without replacement. The opinion's opening summary cited La.Rev.Stat. 37:2163 for the ordinary pre-bid licensing requirement.

Citations

• La.Rev.Stat. 37:2157(A)(6): repealed federal-funding exemption quoted in the opinion.
• La.Rev.Stat. 37:2163: pre-bid licensing rule identified in the opinion's opening summary.
• Act 107 of the 2011 Regular Session: repeal discussed by the AG.

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/13-0014

Original opinion text

Best-effort transcription from a scanned PDF. Minor errors may remain — the linked PDF is authoritative.

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DEPARTMENT OF JUSTICE
P.O. BOX 94005
BATON ROUGE
70804-9005
JAMES D. "BUDDY" CALDWELL
ATTORNEY GENERAL

May 15, 2013
Opinion 13-0014

Ms. Stephanie B. Laborde
90-A-1 PUBLIC FUNDS & CONTRACTS

Milling Benson Woodward, LLP
La. Rev. Stat. 37:2157
445 North Boulevard, Suite 200
Act 107 of the 2011 Regular Session repealed the federal
Baton Rouge, LA 70802
funding exemption to the Louisiana Contractor Licensing Law.
Accordingly, a contractor must obtain a license pursuant to La.Rev.Stat. 37:2163 before submitting a bid unless there are applicable federal laws and/or regulations that specifically provide that no contractor shall be required by law, regulation, or practice to obtain a license before submission of a bid or before the bid may be considered for award of a contract.
Dear Ms. Laborde:

Your opinion request has been assigned to me for research and reply. On behalf of the Louisiana State Licensing Board for Contractors ("Board"), you have asked for our opinion on certain matters related to the Contractor Licensing Law, La.Rev.Stat. 37:2150, et. seq. Specifically, your request references La.Rev.Stat.
37:2157(A)(6), which prior to 2011, provided the following exemption from the application of the Contractor Licensing Law:

Persons bidding work partially funded by the federal government if a federal regulation or law prohibits the requirement of said license; however, the successful bidder shall apply for a license and meet all requirements of the law and rules and regulations of the board prior to commencement of work.

As indicated in your opinion request, the Board has historically interpreted this provision as allowing unlicensed contractors to submit a bid on projects funded by the federal government and subject to a regulation or law prohibiting the requirement of a license. However, if the unlicensed contractor was the successful bidder on that project, then the contractor must be fully compliant with the Contractor Licensing Law, including becoming properly licensed to perform that work, prior to the commencement of work on that project. Your request further indicates that the Board promulgated §1107 of its Rules and Regulations to implement and further explain this provision.

However, you go on to indicate that La.Rev.Stat. 37:2157(A)(6) was repealed by Act 107 of the 2011 Regular Session ("Act 107"). You state that since this provision was deleted, with no substitute language provided, the Board is of the opinion that the former exemption provided for federal projects has been

Page 2

Opinion 13-0014
Stephanie B. Laborde
Page -2­

removed. As such, all projects are now sUbject to the general provisions of the Contractor Licensing Law, meaning that a contractor must be properly licensed prior to submitting a bid, whether the project is funded in part by the federal government or not.

Our review of Act 107 likewise fails to reveal any substitute or replacement language for the former La.Rev.Stat. 37:2157(A)(6). As such, since the exemption contained in the former La.Rev.Stat. 37:2157(A)(6) has since been repealed, it is the opinion of this office that the exemption is no longer applicable. Nevertheless, as indicated in your opinion request, we are aware of various federal regulations that specifically provide that for certain projects, no contractor shall be required by law, regulation, or practice to obtain a license before submission of a bid or before the bid may be considered for award of a contract. It is also the opinion of this office that for those certain projects, the provisions of a particular federal regulation would supersede any state law or regulation to the contrary. As such, any potential bidder on those certain projects would not be required to possess or otherwise obtain a license as a condition of bidding. With the repeal of the exemption, it is our belief that it is now the responsibility of a potential bidder to identify and particularly point out a specific federal law, rule, or regulation which prohibits the possession of a license as a condition of bidding for a particular project.

We trust this adequately responds to your request. However, if our office can be of further assistance, please do not hesitate to contact us.

BY:
J. VALLAN t Attorney General

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