The legislative instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Hanna Gettys.
CONFERENCE COMMITTEE REP ORT DIGEST
SB 131 2024 Regular Session Miller
Keyword and summary of the bill as proposed by the Conference Committee
PRIVILEGES/LIENS. Provides for privileges on immovables. (8/1/24)
Report adopts House amendments to:
1. Changes terminology from materialman to seller and materials to movables regarding
obligations of the surety.
Report rejects House amendments which would have:
1. Added 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. Listed a condition for the claim to be in conformity with applicable specifications and terms
of the order.
3. Listed a condition for the claim to be no sooner than 45 after delivery of materials to the
immovable upon which the work is performed, the seller sends a notice of nonpayment to
the general contractor, surety, and the owner.
4. Listed a condition for the claim is that the seller has not been paid for the price of the
movables sold on or before 90 days after delivery.
5. Required that the surety shall pay the seller for the price of the movables sold within 10 days
after the seller delivers notice to the surety.
Report amends the bill to:
1. Remove the provision that any bond which fails to contain the requirements shall be deemed
to incorporate all of the requirements set forth in proposed law. 2. Remove the provision that language in any bond containing any obligations beyond the
requirements set forth in proposed law shall be deemed surplusage and read out of such
bond.
3. Add that the claim is for the price of movables delivered in conformity with the
specifications provided in the order for such movables.
4. Add that no sooner than 45 days after delivery of the movables, the seller sends a notice of
nonpayment to the general contractor, surety, and the owner.
5. Add that the seller has not been paid in full on or before 90 days after delivery of the
movables.
6. Add 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.
Digest of the bill as proposed by the Conference Committee
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 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 the specifications
provided in the order for such movables.
(b)No sooner than 45 days after delivery of the movables, the seller sends a notice of
nonpayment to the general contractor, surety, and the owner.
(c)The seller has not been paid in full on or before 90 days after delivery of the movables.
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 proposed 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 proposed law.
Effective August 1, 2024.
(Adds R.S. 9:4812(F))