RDCSB131 3351 5029
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
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 present
law 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 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 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
material man for claims by a material man under the following conditions:
(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 material man sends a notice of
nonpayment to the general contractor, surety, and the owner.
(c)The material man 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 material man within 10 days after the material man sends a payment notice to the
surety.
Proposed law provides that the claim of a material man 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 material man 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
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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.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Judiciary to the
reengrossed bill:
1. Remove proposed law requiring that payment provisions of all bonds furnished
for public work contracts be construed as statutory bond provisions.
2. Remove proposed law relative to bonds failing to contain certain requirements
being deemed to incorporate all requirements.
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