Louisiana’s Construction Code Overhaul: Act 120 of 2025 and Act 881 of 2026
Louisiana’s Construction Code Overhaul: Act 120 of 2025 and Act 881 of 2026
- Authors Trippe Hawthorne, Crystal D. Burkhalter
Context
Louisiana has restructured its building code adoption and enforcement framework through two enactments: Act 120 of 2025 and Act 881 of 2026 (House Bill 1186). Together, these acts effect substantial changes to how building codes are adopted, how inspectors are licensed, and how enforcement operates at the local level. This post provides the two-act chronology and identifies practical consequences for construction industry participants.
Key Dates
2025: Act 120 placed the Louisiana State Uniform Construction Code Council within the LSLBC structure (now superseded).
2026 (upon Governor’s signature): Act 881 effective—repeals the Council framework and creates the Louisiana Uniform Construction Code Commission within the Governor’s office.
January 1, 2027: Permit fee collection provision (R.S. 37:3730(C)(1)) effective.
Background: Act 120 of 2025
Act 120 of 2025 (SB 228) placed the Louisiana State Uniform Construction Code Council within the Louisiana State Licensing Board for Contractors (“LSLBC”). Under this arrangement, the Council exercised its duties under the management of the Board’s executive director, who served as the Council’s executive director without voting privileges. Board staff could be designated to the Council as needed, and Board funds could support Council operations.
Act 120 also restructured the Council’s membership, reducing it from twenty to seventeen members. However, this entire administrative framework was short-lived—Act 881 of 2026 repeals and supersedes it.
The 2026 Overhaul: Act 881 (HB 1186)
Act 881 creates a new statutory framework—the “Building Code Adoption & Inspector Licensing Law” (Chapter 62 of Title 37, R.S. 37:3727 through 3750)—while repealing the previous Council framework under La. R.S. 40:1730.21 through 1730.40.2. The new Louisiana Uniform Construction Code Commission is housed within the Governor’s office rather than the LSLBC.
Commission Structure and Operations
The Commission is comprised of 18 members appointed by the Governor and subject to Senate confirmation, serving four-year terms (maximum two consecutive terms). The membership includes broad industry representation: the fire marshal (or designee), licensed inspectors, licensed tradespeople, engineers, architects, contractors, and representatives from industry associations and the manufactured housing industry.
A notable operational feature: the Commission has no employees of its own. The LSLBC’s executive director serves as the Commission’s executive director, and Board staff may be utilized to carry out Commission responsibilities. The Commission may enter into agreements with the Board for operations, including reimbursement for use of Board funds. The Commission holds regular meetings in January, April, July, and October.
Code Adoption and Mandatory National Standards
Act 881 mandates adoption of eight national codes:
- International Building Code (IBC)
- International Existing Building Code (IEBC)
- International Residential Code (IRC)
- International Mechanical Code (IMC)
- International Plumbing Code (IPC)
- International Fuel Gas Code (IFGC)
- International Energy Conservation Code (IECC)
- National Electrical Code (NEC)
This codification establishes uniformity regarding which standards apply statewide.
Permit Fee Collection
The Commission may collect fees on permits of up to $10 per permit, with this provision (R.S. 37:3730(C)(1)) becoming effective January 1, 2027.
Inspector Licensing: Dual-Track System
Act 881 establishes a dual-track inspector licensing system:
- Public Inspector: Licensing fees are waived entirely.
- Private Inspector: Must maintain $500,000 in professional liability insurance. Must register with jurisdictions by providing commission registration number, proof of insurance, and a list of certified inspection types.
License classifications include General (encompassing “Certified Building Official,” “Master Code Professional,” “Louisiana Licensed Architect,” and “Louisiana Licensed Engineer”) and Specialty designations for inspectors qualified only for specific trades or building components.
Licensed contractors and homeowners exempted from the contractor licensing law may use private inspectors for plan reviews and inspections, providing an alternative to public inspection offices. All inspection reports and plan reviews are subject to written approval or denial by the Certified Building Official of the jurisdiction based on the current adopted code.
Private Inspector Insurance
Private inspectors must maintain $500,000 in professional liability insurance. This requirement may affect current practitioners who do not carry coverage at this level.
Conflict-of-Interest Provisions
Licensed inspectors may not perform inspections on projects in which they have a direct or indirect financial interest. Public inspectors may not simultaneously act as licensed contractors or plumbers within their jurisdiction.
Enforcement and Disciplinary Exposure
The disciplinary framework addresses both under-enforcement and over-enforcement (“dual-directional enforcement”). Violations include:
- Passing non-compliant work.
- Enforcing codes more stringently than required.
- Enforcing a code official’s preference over a manufacturer’s installation instructions.
- Failing to enforce applicable codes.
Penalties:
- Misdemeanor: Engaging in business as an inspector without a license—fines up to $500 or three months’ imprisonment.
- Felony: Performing inspections without a license and causing harm exceeding $300—fines up to $5,000 or six months at hard labor.
- Civil penalties for private inspectors: Up to $5,000 per offense, plus administrative costs and attorney fees.
The statute of limitations for proceedings by the Commission based on a complaint is five years from the date of the alleged act or omission, suspended during the pendency of any related legal action involving the licensee.
Local-Government Preemption
All municipalities and parishes must enforce only the Uniform Construction Code as provided in the statute. Local governments may not amend mandatory construction code provisions, though they may adopt ordinances for local administration and enforcement procedures.
Limits on Local Fire-Sprinkler and Plan-Stamping Requirements
Neither the Commission nor a municipality or parish may adopt or enforce fire sprinkler requirements for one- or two-family dwellings. Local governments also may not require that residential building plans for one- or two-family dwellings falling within the prescriptive standards of the IRC be prepared or stamped by a licensed architect or engineer.
Industrial Facilities Exemption
La. R.S. 37:3738 exempts construction or improvement inside the secured or fenced confines of certain industrial facilities from the provisions of Chapter 62—except that the International Plumbing Code requirements still apply. The exemption covers facilities engaged in activities classified under the 2012 North American Industry Classification System, including:
- Electric power generation (22111)
- Sawmills and wood preservation (3211)
- Paper manufacturing (322)
- Petroleum and coal products manufacturing (324)
- Chemical manufacturing (325)
- Plastics and rubber products manufacturing (326)
- Primary metal manufacturing (331)
- Hazardous waste treatment and disposal (562211)
- Solid waste landfill (562212)
- Oil and gas extraction (211), including natural gas liquid extraction (211112)
- Pipeline transportation (486), including crude oil (486110), refined petroleum products (486910), natural gas (482610), and all other pipeline transportation (486990)
- Petroleum bulk stations and terminals (424710)
- Veneer, plywood, and engineered wood product manufacturing (3212)
- Support activities for mining (213)
This exemption is significant for Louisiana’s industrial sector—particularly petrochemical, refining, and energy facilities—as it allows these facilities to conduct construction and improvement projects within their secured perimeters without compliance with most provisions of the Uniform Construction Code, though plumbing code requirements remain applicable.
Operational Relationship Between the Commission and LSLBC
While Act 881 houses the Commission within the Governor’s office (not the Board), the Board retains a significant operational role. The Board’s executive director serves as the Commission’s executive director, and Board staff support Commission operations. The Board and the Commission (or their designees) may inspect lists of building inspections and permits issued by local building officials to verify that no person is working as an inspector or contractor without an active license.
Immunity and Liability Limitations
Act 881 establishes several important immunity and liability limitations:
Commission and Member Immunity: The Commission and its members are not personally liable for actions taken in good faith in the discharge of their responsibilities. The state is required to hold the Commission and its members harmless from all costs, damages, and attorney fees arising from claims and suits regarding matters to which the immunity applies.
Statutory Disclaimer of Warranty: Neither the performance of any enforcement procedure nor any provision of the Uniform Construction Code constitutes a warranty or guarantee—by a governmental enforcement agency or by a private inspector—that a building or structure is free from defects, will perform in a particular manner, or is fit for a particular purpose. This statutory disclaimer may affect construction defect claims against inspectors.
Discretionary Function Immunity: The performance or nonperformance of any procedure by a governmental enforcement agency, contract employee, official, or inspector is a discretionary act subject to R.S. 9:2798.1. This invokes Louisiana’s discretionary function immunity, which generally shields government entities from liability for policymaking or discretionary acts.
Enforcement Powers and Injunctive Relief
The Commission possesses broad enforcement authority:
Bond-Free Injunctions: The Commission may obtain temporary restraining orders and preliminary and permanent injunctions without posting a bond or other security. Additionally, injunctions issued under Chapter 62 are not subject to being released upon bond—a significant departure from standard civil procedure that limits respondents’ options during litigation.
Summary Proceedings for Fine Collection: Upon expiration of Administrative Procedure Act appeal delays, if no appeal is filed, the Commission may initiate summary civil proceedings to collect assessed fines. In these proceedings, the defendant is limited to the defense of lack of notice as to the meeting at which the fine was assessed. This creates a narrow window for challenging Commission fines.
Fee-Shifting for Unsuccessful Actions: If the Commission brings an enforcement action and fails to prove its case, the Commission is liable to the respondent for attorney fees and court costs. This provides a potential recovery mechanism for prevailing respondents.
Contingency Fee Counsel: The Commission may contract with outside counsel or collection agencies on a contingency fee basis to enforce judgments—an express exception to the general prohibition on contingency compensation for special counsel representing state agencies under R.S. 42:262.
Code Application and Vesting Rules
A licensed inspector shall conduct a building inspection using the requirements of the codes in effect for the locality on the date of the application for the original building permit. This “vesting” rule provides predictability for construction projects by ensuring that applicable code requirements do not change mid-project based on subsequent code updates.
Real Estate and Recording Provisions
Upon receipt of a certificate of occupancy issued by a local inspector for new residential construction, a lender providing a residential mortgage loan for the purchase of that construction shall file a copy of the certificate of occupancy in the conveyance records of the parish where the construction is located. The lender may assess a reasonable charge to the borrower for filing costs, not to exceed the parish’s filing fee. However, failure to file the certificate does not invalidate any transaction related to the property, including construction, purchase, sale, or transfer of title.
Home Rule Charter Accommodation
While the statute establishes statewide code preemption, it expressly accommodates Louisiana’s home rule charter provisions. If any provision of Chapter 62 conflicts with a home rule charter regarding the powers, functions, duties, structure, organization, or distribution of powers of a local government, the home rule charter supersedes the conflicting provision. This creates a potential carve-out from statewide uniformity for home rule jurisdictions.
Alternative Materials and Construction Methods
Pursuant to a contractual agreement with a municipality or parish, and upon appeal of the professional of record for a plan review of a structure (except one- or two-family dwellings), the state fire marshal may allow alternative materials, design, and methods of construction and equipment that comply with the International Building Code, Chapter 1-Scope and Administration. This provides a formal mechanism for obtaining approval of innovative or non-prescriptive construction methods.
Public Records Exemptions
Act 881 creates two public records exemptions by amending R.S. 44:4:
Records concerning the fitness of any person to receive or continue to hold a license issued by the Commission are exempt from public records disclosure. However, such records may be released in administrative proceedings, and final determinations (including legal grounds) remain public records.
Financial statements submitted by private inspector company applicants are exempt from public records disclosure.
Practical Guidance by Stakeholder
Inspectors (Current and Prospective)
- Review the new Commission licensing classifications to determine which category applies to your practice.
- Prepare for the transition from the former Council framework to the new Commission licensing system.
- Understand the dual-directional enforcement standard—liability attaches for both under- and over-enforcement.
- Note the five-year statute of limitations for proceedings by the Commission after receipt of a complaint, which is suspended during related legal proceedings.
Private Inspectors
- Assess insurance coverage against the $500,000 professional liability requirement.
- Register with jurisdictions by providing registration number, proof of insurance, and certified inspection types.
- Review conflict-of-interest provisions to identify any disqualifying financial interests.
- Prepare for potential civil penalty exposure of up to $5,000 per offense.
Contractors and Developers
- Be aware of the option to retain private inspectors for plan reviews and inspections as an alternative to public inspection offices.
- Operating across parish lines, take note that statewide code preemption may simplify compliance by eliminating local code variations.
- Monitor the permit fee provision taking effect January 1, 2027.
Residential Builders
- Note the prohibition on local fire-sprinkler requirements for one- or two-family dwellings.
- Note the prohibition on local requirements that IRC-prescriptive residential plans be stamped by an architect or engineer.
- Homeowners exempted from the contractor licensing law may use private inspectors for plan reviews and inspections.
Lenders and Real Estate Practitioners
Lenders providing residential mortgage loans for new construction must file the certificate of occupancy in the parish conveyance records upon receipt.
Lenders may pass through filing costs to borrowers (capped at the parish filing fee).
Title examiners should note that certificates of occupancy may now appear in conveyance records for new residential construction.
Note that a certificate of occupancy or passed inspection does not constitute a warranty of construction quality—the statute expressly disclaims such warranties.
Local Governments and Building Officials
- Enforce only the Uniform Construction Code as adopted by the Commission—local code amendments to mandatory provisions are preempted.
- Review existing local ordinances for consistency with statewide preemption.
- Prepare to process private inspector registrations and review private inspection reports.
- Do not impose fire-sprinkler requirements on one- or two-family dwellings.
- Home rule charter jurisdictions should analyze whether any charter provisions conflict with and thus supersede specific Chapter 62 requirements.
Attorneys
- Familiarize clients with the dual-directional enforcement standard and its implications.
- Note the five-year statute of limitations for proceedings by the Commission after receipt of a complaint is suspended during related legal proceedings—this may extend disciplinary exposure beyond typical construction timelines.
- Advise inspector clients on conflict-of-interest provisions and insurance requirements.
- Monitor the transition from the Council to the Commission for rulemaking and implementation details.
- Advise on the interplay between the Commission (Governor’s office) and the LSLBC (operational support).
- In construction defect claims, be aware of the statutory disclaimer of warranty and discretionary function immunity (R.S. 9:2798.1) that may shield inspectors and governmental entities.
- Note that Commission enforcement actions may result in bond-free injunctions that cannot be released upon security—focus on defeating merits early.
- Strictly monitor administrative appeal deadlines—missing the window limits defenses in subsequent summary collection proceedings to lack of notice only.
- Successfully defending against a Commission enforcement action may result in recovery of attorney fees and costs.
Conclusion
Act 881 of 2026, building on the brief transitional framework of Act 120 of 2025, establishes a comprehensive new structure for building code adoption and inspector licensing in Louisiana. The creation of the Commission within the Governor’s office, the mandated national codes, the dual-track inspector licensing system, statewide code preemption, immunity provisions, bond-free enforcement powers, and new recording requirements represent material changes for inspectors, contractors, lenders, local governments, and practitioners. Affected parties should review the new requirements and prepare for compliance.
As members of Kean Miller’s Construction team in Baton Rouge, Trippe Hawthorne and Crystal Burkhalter advise contractors, owners, developers, and other construction-industry participants on licensing, compliance, risk management, and dispute resolution matters. In this four-part series, they examine the significant construction and contractor-regulation reforms enacted during Louisiana’s 2026 Legislative Session and their practical impact on the industry.