SLS 24RS-406 REENGROSSED
2024 Regular Session
SENATE BILL NO. 131
BY SENATOR MILLER
PRIVILEGES/LIENS. Provides for privileges on immovables. (8/1/24)
1 AN ACT
2 To amend and reenact R.S. 9:4812(D) and to enact R.S. 9:4812(F), relative to privileges on
3 immovables; to provide relative to claims against owners and contractors; to provide
4 relative to the furnishing and maintenance of bonds; to provide relative to the
5 liability of sureties; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 9:4812(D) is hereby amended and reenacted and R.S. 9:4812(F) is
8 hereby enacted to read as follows:
9 ยง4812. Bond required; terms and conditions
10 * * *
11 D. The bond of a legal surety attached to and filed with the notice of contract
12 of a general contractor shall be deemed to conform to the requirements of this part
13 notwithstanding any provision of the bond to the contrary, but the surety shall not be
14 bound for a sum in excess of the total amount expressed in the bond. Nothing in this
15 Part shall be construed to preclude a surety who has furnished such a bond
16 from asserting any defense to the principal obligation that its principal could
17 assert except lack of capacity or discharge in bankruptcy of the principal
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SLS 24RS-406 REENGROSSED
1 obligor.
2 * * *
3 F.(1) The payment provisions of all bonds furnished for public work
4 contracts described in this Part, regardless of form or content, shall be
5 construed as and deemed statutory bond provisions. Except as provided in R.S.
6 9:4812(F)(2), nothing in this Part shall be construed to preclude a surety from
7 asserting any defense to the principal obligation that its principal could assert
8 except lack of capacity or discharge in bankruptcy of the principal obligor. Any
9 such bond which fails to contain any of the requirements set forth in this Part
10 shall be deemed to incorporate all of the requirements set forth in this Section.
11 Language in any such bond containing any obligations beyond the requirements
12 set forth in this Part shall be deemed surplusage and read out of such bond.
13 Sureties and contractors executing payment bonds for public works contracts
14 under this Part shall be immune from liability for or payment of any claims not
15 required by this Part.
16 (2) The surety shall be obligated and required to issue payment to a
17 materialman for claims by a materialman under the following conditions:
18 (a) The claim is for materials delivered in conformity with material
19 specifications provided in the order for such materials.
20 (b) No sooner than forty-five days after material delivery, the
21 materialman sends a notice of nonpayment to the general contractor, surety,
22 and the owner.
23 (c) The materialman has not been paid in full on or before ninety days
24 after material delivery.
25 (3) If the requirements of R.S. 9:4812(F)(2) are satisfied, the surety shall
26 pay the materialman within ten days after the materialman sends a payment
27 notice to the surety.
28 (4) The claim of a materialman and right to payment as provided in this
29 Subsection is in addition to and not in derogation of any other claims or
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1 remedies available to a materialman under this Part.
2 (5) Any notice required under R.S. 9:4812 shall be served by mailing the
3 same by registered or certified mail, postage prepaid, in an envelope addressed
4 to the last known address of the general contractor, bond surety, and the owner.
5 The return receipt indicating that registered mail or certified mail was properly
6 addressed to the last known address of the general contractor, surety, and the
7 owner and deposited in the United States mail regardless of whether the
8 registered or certified mail was actually delivered, refused, or unclaimed
9 satisfies the notice provision of R.S. 9:4812.
10 * * *
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Hanna Gettys.
DIGEST
SB 131 Reengrossed 2024 Regular Session Miller
Present law provides that the bond of a legal surety attached to and filed with the notice of
contract of a general contractor shall be deemed to conform to the requirements of this part
notwithstanding any provision of the bond to the contrary, but the surety shall not be bound
for a sum in excess of the total amount expressed in the bond.
Proposed law retains present law but includes that nothing in present law shall be construed
to preclude a surety who has furnished such a bond from asserting any defense to the
principal obligation that its principal could assert except lack of capacity or discharge in
bankruptcy of the principal obligor.
Proposed law provides that the payment provisions of all bonds furnished for public work
contracts described in proposed law, regardless of form or content, shall be construed as and
deemed statutory bond provisions.
Proposed law provides that except as provided in proposed law, nothing shall be construed
to preclude a surety from asserting any defense to the principal obligation that its principal
could assert except lack of capacity or discharge in bankruptcy of the principal obligor.
Proposed law provides that any such bond which fails to contain any of the requirements set
forth in proposed law shall be deemed to incorporate all of the requirements set forth in
proposed law. Provides that language in any such bond containing any obligations beyond
the requirements set forth in proposed law shall be deemed surplusage and read out of such
bond.
Proposed law provides that sureties and contractors executing payment bonds for public
works contracts under proposed law shall be immune from liability for or payment of any
claims not required by proposed law.
Proposed law provides that the surety shall be obligated and required to issue payment to a
materialman for claims by a materialman under the following conditions:
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(a)The claim is for materials delivered in conformity with material specifications
provided in the order for such materials.
(b)No sooner than 45 days after material delivery, the materialman sends a notice of
nonpayment to the general contractor, surety, and the owner.
(c)The materialman has not been paid in full on or before 90 days after material
delivery.
Proposed law provides that if the requirements of proposed law are satisfied, the surety shall
pay the materialman within 10 days after the materialman sends a payment notice to the
surety.
Proposed law provides that the claim of a materialman and right to payment as provided in
proposed law is in addition to and not in derogation of any other claims or remedies
available to a materialman under proposed law.
Proposed law provides that any notice required under present law shall be served by mailing
the same by registered or certified mail, postage prepaid, in an envelope addressed to the last
known address of the general contractor, bond surety, and the owner.
Proposed law provides that the return receipt indicating that registered mail or certified mail
was properly addressed to the last known address of the general contractor, surety, and the
owner and deposited in the U.S. mail regardless of whether the registered or certified mail
was actually delivered, refused, or unclaimed satisfies the notice provision of present law.
Effective August 1, 2024.
(Amends R.S. 9:4812(D); adds R.S. 9:4812(F))
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Makes technical changes.
2. Adds payment provisions for all bonds furnished for public work contracts.
3. Adds requirements and obligations for payment bonds for public work
contracts.
4. Clarifies the notice requirements for bonds for public work contracts.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.