HASBSB131 TYLERT 4371
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 131 2024 Regular Session Miller
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
PRIVILEGES/LIENS. Provides for privileges on immovables. (8/1/24)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Adds provisions that a bond furnished is a statutory bond and that no
modifications, omissions, or additions to the terms of the contract, in the
plans or specifications, or in the manner and mode of payment, shall
diminish, enlarge, or otherwise modify the obligations of the bonds.
2. Changes terminology from materialman to seller regarding obligations of the
surety.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
DIGEST
SB 131 Reengrossed 2024 Regular Session Miller
Proposed law provides that the bond furnished is a statutory bond and not modifications,
omissions, or additions to the terms of the contract, in the plans or specifications, or in the
manner and mode of payment, shall diminish, enlarge, or otherwise modify the obligations
of the bonds. Provides that 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
seller for claims by a seller under the following conditions:
(a)The claim is for the price of movables delivered in conformity with applicable
specifications and terms of the order.
(b)No sooner than 45 days after delivery of the materials to the immovable upon which
work is performed, the seller 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 delivery of the
movables.
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Proposed law provides that if the requirements of proposed law are satisfied, the surety shall
pay the seller for the price of the movables sold within 10 days after the seller delivers notice
to the surety.
Proposed law provides that the claim of a seller and right to payment as provided in proposed
law is in addition to and not in derogation of any other rights, claims or remedies available
to a seller 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.
(Adds R.S. 9:4812(F))
______________________
Thomas L. Tyler
Division Director
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