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Regular Session, 2010
SENATE BILL NO. 70
BY SENATOR APPEL
PUBLIC CONTRACTS. Provides for Surety Insurance Disclosure Act under the Public
Contracts Law.(8/15/10)
AN ACT1
To enact Part I-A of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, to be2
comprised of R.S. 38:2200 and R.S. 38:2200.1 through 2200.5, relative to public3
contracts and surety; to enact the "Surety Insurance Disclosure Act"; and to provide4
for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. Part I-A of Chapter 10 of Title 38 of the Louisiana Revised Statutes of7
1950, comprised of R.S. 38:2200 and R.S. 38:2200.1 through 2200.5, is hereby enacted to8
read as follows: 9
PART I-A. SURETY INSURANCE DISCLOSURE ACT10
§2200. Short title11
This Part shall be known as the "Surety Insurance Disclosure Act."12
§2200.1. Applicability13
The provisions of this Part shall apply to any public entity and to either14
any bid or any contract, or both, subject to the provisions of Chapter 10 of Title15
38 of the Louisiana Revised Statutes of 1950, that requires a bidder or16
contractor to furnish surety or bond either for payment, faithful performance,17 SB NO. 70
SLS 10RS-380 ORIGINAL
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or both.1
§2200.2. Name of surety insurance company; identification number; display;2
requirements3
A. A public entity shall require that the full name of the surety4
insurance company and the identification number assigned to that surety5
insurance company by the National Association of Insurance Commissioners6
(NAIC) shall be plainly visible on the outside of a sealed envelope that contains7
a bid form prior to public bid opening and on the bid form.8
B. A public entity shall require that the full name of the surety insurance9
company and the identification number assigned to that surety insurance10
company by the NAIC shall be plainly visible on a bond either for payment or11
faithful performance, or both, of the contract.12
C. The provisions of this Part shall not be subject to waiver and shall be13
deemed a matter of public policy.14
§2200.3 Rejection of certain bidders15
A. Any bid submitted contrary to the provisions of this Part is irregular16
and shall be rejected by the public entity.17
B. The public entity shall reject and return unopened a bid envelope18
which fails to display in a plainly visible manner, the full name of the surety19
insurance company and the identification number assigned to that surety20
insurance company by the NAIC, or which displays false, misleading, or21
incorrect information relative to the surety insurance company.22
C. The public entity shall reject and return a bid form which fails to23
display, in a plainly visible manner, the full name of the surety insurance24
company and the identification number assigned to that surety insurance25
company by the NAIC, or displays false, misleading, or incorrect information26
relative to the surety insurance company.27
§2200.4. Remedy; penalty28
A. There shall be no cause of action and no challenge by protest, appeal,29 SB NO. 70
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legal process, or otherwise, when a public entity rejects a bid pursuant to the1
provisions of this Part.2
B. Submission of a bid which contains false, misleading, or incorrect3
information relative to the surety insurance company shall subject the bidder4
and surety insurance company to penalties as provided by law.5
§2200.5. Substitution of surety6
Notwithstanding the provisions of this Part, prior to execution of a7
contract, a successful bidder may substitute the surety or bond only upon the8
express written consent of the public entity, provided both the original surety9
insurance company and the substitute surety insurance company shall meet the10
requirements of R.S. 38:2219(A)(1)(a).11
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sharon F. Lyles.
DIGEST
Proposed law enacts the "Surety Insurance Disclosure Act."
Proposed law applies to any public entity and to either any bid or any contract, or both,
subject to Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950 [R.S. 38:2181
et. seq.] that requires a bidder or contractor to furnish surety or bond for payment, faithful
performance, or both.
Proposed law provides that public entity shall require that the full name of the surety
insurance company and the identification number assigned to that surety insurance company
by the National Association of Insurance Commissioners (NAIC) shall be plainly visible on
the outside of a sealed envelope that contains a bid form prior to public bid opening and on
the bid form.
Proposed law provides that public entity shall require that the full name of the surety
insurance company and the identification number assigned to that surety insurance company
by the NAIC shall be plainly visible on a bond either for payment or faithful performance,
or both, of the contract.
Proposed law provides that the provisions of this Part shall not be subject to waiver and shall
be a matter of public policy.
Proposed law provides any bid submitted contrary to the provisions of this Part is irregular
and shall be rejected by the public entity.
Proposed law provides that a public entity shall reject and return unopened a bid envelope
which fails to display, in a plainly visible manner, the full name of the surety insurance
company and its assigned NAIC identification number or which displays false, misleading
or incorrect information relative to the surety insurance company.
Proposed law provides that a public entity shall reject and return unopened a bid form which SB NO. 70
SLS 10RS-380 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
fails to display in a plainly visible manner, the full name of the surety insurance company
and its assigned NAIC identification number or displays false, misleading or incorrect
information relative to the surety insurance company.
Proposed law provides that there shall be no cause of action and no challenge by protest,
appeal, legal process, or otherwise when a public entity rejects a bid pursuant to the
provisions of this Part.
Proposed law provides that submission of bid which contains false, misleading or incorrect
information relative to the surety insurance company subjects the bidder and surety
insurance company to penalties as provided by law.
Proposed law authorizes substitution of a surety or bond by a successful bidder prior to
contract execution upon written consent of the public entity provided both the original and
substitute surety insurance company meet the requirements of R.S. 38:2219(A)(1)(a).
Effective August 15, 2010.
(Adds R.S. 38:2200 and R.S. 38:2200.1 through 2200.5)