Louisiana’s transition to a three-year licensing cycle for the life safety and property protection industry has raised questions for firms that regularly add technicians, transfer employees, and make other license revisions. The Louisiana Life Safety & Security Association recently presented several of these questions to the Licensing Division of the Louisiana State Fire Marshal’s Office. The answers provide important clarification for companies as they navigate the new licensing process and the new EPR system.

One of the biggest concerns involves adding a new employee to a firm that is already partway through its licensing cycle. Under the previous IMS system, when a firm submitted a revision application to add an employee, the system automatically prorated the employee’s endorsement fee. This allowed the employee’s license expiration date to match the expiration date of the firm license. The firm was also charged a $20 revision fee.

Under the new EPR system, however, some firms have encountered a different result. When adding a technician, the system may assess the entire three-year license fee even when the firm itself has considerably less than three years remaining on its current license.

According to the State Fire Marshal’s Licensing Division, "this is a reported system issue and is not how the fee is intended to be calculated." The programmer is working on a correction.

Until the EPR issue is resolved, the Licensing Division is handling these situations manually. When necessary, Licensing staff will adjust the invoice, remove the incorrect three-year charges, and prorate the employee’s fee so that the employee's license expiration date coincides with the firm's expiration date.

For example, if a firm has only a few months remaining before its renewal and adds a new technician, the intent is not for the firm to pay a full three-year employee license fee for those few months. The fee should be prorated to bring the employee into the firm's existing licensing cycle.

This leads to another question: "When the firm renews, will it then be charged for that employee again?"

The answer from the Licensing Division is "yes". Employee licenses renew with the firm. The initial prorated fee covers the employee only through the firm's current expiration date. When the firm begins its new three-year licensing period, the employee will be renewed as part of that cycle and the applicable license fee will be assessed.

In simple terms, think of the firm’s expiration date as the date that controls the licensing cycle. When a technician is added between renewals, the technician is brought into that existing cycle through a prorated fee. At the firm's next renewal, the technician begins the new licensing period along with the firm.

Another concern raised by LLSSA members involves employees who change companies. Consider a technician who is licensed under one firm and whose licensing fees have been paid by that company. A few months later, the technician leaves and goes to work for another licensed firm. Can the original company receive a refund or credit for the unused portion of the fee it paid?

Under current Louisiana law, "license and application fees are generally non-refundable." The State Fire Marshal’s Office advised LLSSA that this is not a new policy associated with the three-year licensing cycle; it has been the standard practice.

The applicable provision is Louisiana Revised Statute "R.S. 40:1664.9(J)", which states:   “The fees established in this Section shall not be refundable except under such conditions as the state fire marshal may establish.”

This means that a firm should not expect a prorated refund or credit simply because an employee leaves the company before the end of the licensing period.

There is an important distinction between these two situations. "Proration when adding an employee and a refund when employee leaves are not the same thing." When an employee is added, the licensing fee is prorated so that the employee's expiration date can be synchronized with the firm's existing license expiration date. When an employee leaves, however, the fees already paid are subject to the statutory non-refundable fee provision.

For Louisiana life safety and property protection firms, the practical takeaway is to pay close attention to invoices generated when adding employees through the EPR system. If the system assesses a full three-year fee for a newly added employee even though the firm is already partway through its three-year licensing cycle, firms should recognize that the Licensing Division has identified this as a system issue and is currently making the appropriate adjustments manually.

Companies should also factor employee turnover into their licensing costs. While the new three-year structure reduces the frequency of the renewal process, licensing and application fees generally cannot be recovered simply because a technician changes employers.

LLSSA appreciates the Louisiana State Fire Marshal’s Licensing Division providing clarification on these questions and working to correct the EPR proration issue. As the industry adjusts to the new three-year licensing structure, LLSSA will continue communicating questions and concerns from members to the State Fire Marshal’s Office and sharing guidance that helps Louisiana dealers and technicians understand their licensing responsibilities.

Resource: Marlene Aucoin, Admin program Specialist - marlene.aucoin@la.gov