Baton Rouge – With the arrival of January 1, a broad set of laws passed in recent legislative sessions has now taken effect across Louisiana. These measures reach into many aspects of daily life, from transportation safety and civil liability to construction rules and tax policy. Collectively, they mark an ongoing push by lawmakers to update legal standards, curb rising insurance costs, modernize business taxation, and strengthen public safety expectations.
A Stronger Stance on Distracted Driving
One of the most visible changes that arrived in 2026 is the full enforcement of Louisiana’s expanded hands-free driving law, often referred to as the “touch law.” While the statute itself has already been on the books, the state provided a lengthy transition period focused on education and warnings. That grace period ended at the start of 2026. Beginning Jan. 1, law enforcement agencies across Louisiana began issuing fines for violations, marking a shift from warnings to active enforcement. What changed for drivers? Handheld use of mobile phones while driving is broadly prohibited. Drivers may no longer hold a phone to text, scroll, or browse while driving. Limited exceptions apply to emergency calls or to hands free navigation systems. Fines increase significantly in school zones and construction zones, and repeat violations may result in higher penalties. Lawmakers have framed this law as a public safety measure aimed at reducing distracted driving accidents, which have become an increasing concern as smartphone use continues to rise. For motorists, the message is clear: hands-free technology is no longer optional — it is expected.
A Major Shift in Civil Liability
One of the most consequential legal changes taking effect this year involves how fault is assigned in personal injury cases. Louisiana has moved away from a pure comparative fault system and has adopted a modified comparative fault standard. Under the new system, if a plaintiff is found to be 50% or less at fault, they may still recover damages, reduced by their percentage of fault. If a plaintiff is found to be 51% or more at fault, they are barred from recovering any damages. This marks a significant departure from the prior framework, where plaintiffs could recover damages even if they were primarily responsible for their injuries, though their recovery would be reduced. Supporters argue the change brings Louisiana more in line with many other states and helps curb excessive litigation and rising insurance costs. Critics counter that it may unfairly deny compensation to injured individuals in complex accidents where fault is disputed. Regardless of perspective, this shift alters how lawsuits will be evaluated, negotiated, and tried in court. Attorneys, insurers, and plaintiffs alike now need to adjust strategies to account for the higher stakes associated with fault determinations. Limits on Recoverable Medical Expenses in Lawsuits Closely related to the comparative fault change is a new rule governing the calculation of medical expenses in personal injury cases. Now, plaintiffs may recover only the actual amounts paid for medical care, rather than the higher amounts initially billed by providers. What this means in practice is that juries now may see both the billed amount and the amount actually paid. Damage awards for medical expenses will be limited to real economic losses, not inflated billing figures. The change applies broadly across civil injury cases. This adjustment is part of a broader tort reform effort to make damage awards more reflective of real costs. Lawmakers argue that inflated medical bills have contributed to excessive verdicts and higher insurance premiums. Opponents worry the change could reduce compensation for injured parties who face long-term medical consequences.
New Licensing Requirements for Residential Roofing Contractors The construction industry is now also seeing important changes, particularly in residential roofing. Contractors performing roofing work above a specified dollar threshold are now being required to hold specific licenses or classifications. Key points: • Residential roofing projects exceeding $7,500 require proper licensing.
• Contractors must hold either a residential roofing license or a residential construction license with a roofing designation.
• Enforcement mechanisms include fines and potential cease-and-desist orders for unlicensed work. The goal of this law is to protect homeowners from unqualified or unscrupulous contractors, especially in the aftermath of storms when roofing scams tend to increase. For contractors, compliance is critical to avoid penalties and business disruptions.
Expanded Incentives for Home Fortification and Retrofitting
Another notable change that went into effect involves incentives for homeowners who invest in strengthening their properties against severe weather. Louisiana has expanded tax deductions for voluntary home retrofitting and for fortified construction standards. Changes include:
• Larger deductions are available for qualifying improvements.
• Eligible upgrades include measures designed to improve wind resistance and structural integrity.
• The incentives apply to taxable periods beginning on or after Jan. 1. With Louisiana’s ongoing exposure to hurricanes and severe storms, lawmakers viewed these incentives as a proactive way to reduce longterm damage, insurance claims, and recovery costs. Homeowners considering upgrades may find the expanded deductions make such investments more financially attractive.
Some other laws that are now in effect across the state include:
• Commercial Dash Cam Discounts: Act 19 (HB 549) requires insurers to provide premium discounts for commercial motor vehicles equipped with qualifying dashboard cameras and telematics systems.
• “No Pay, No Play” Expansion: Uninsured motor vehicle owners are limited from recovering the first $100,000 of bodily injury and property damages in an accident. Additionally, if an uninsured owner is awarded $100,000 or less, they must pay all court costs.
• Corporate Franchise Tax Repeal: Act 3 (HB 3) officially repeals the state’s corporate franchise (capital stock) tax.
• Pass-Through Entity Recognition: S corporations will be treated as pass-through entities for state tax purposes, aligning with federal tax treatment.
• Nonresident Income Tax Threshold: The threshold for nonresident employee income tax and withholding increases from 25 days to 30 days.
• Lodging Tax Remittance: Marketplace facilitators (such as remote booking platforms) must begin remitting hotel and motel occupancy taxes for sleeping rooms.
• Health Insurance Mandates: New health coverage plans must include coverage for proton therapy treatment for cancer and specific amino acidbased elemental formulas for covered infants.
• Re-entry Employment Incentives: Employers may exclude certain services from the definition of “employment” for tax purposes for individuals hired within one year of their release from incarceration.
