The original instrument was prepared by Emily Toler. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Curry J.
Lann.
DIGEST
SB 265 Reengrossed 2024 Regular Session Womack
Present law provides that the payment provisions of all bonds furnished for public work contracts
are required to be construed as and deemed statutory bond provisions.
Proposed law provides a surety who has furnished such a bond is not precluded 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 and otherwise retains present law.
Present law provides that nothing may deprive any claimant, of a right of action on the bond
furnished, provided that an action must be initiated against the surety or the contractor or both within
one year from either the registry of acceptance of the work or of notice of default of the contractor.
Proposed law requires that a surety who has furnished such a bond is not precluded 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 and otherwise retains present law.
Present law requires that when the Department of Transportation and Development enters into a
contract in excess of $50,000 for the construction, maintenance, alteration, or repair of any public
works, the department shall require of the contractor a bond with good, solvent, and sufficient surety.
Proposed law provides nothing 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 and otherwise retains present law.
Present law provides nothing shall deprive any claimant, who has complied with the notice and
recordation requirements of the law, of a right of action on the bond furnished provided that action
must be brought against the surety or the contractor or both within one year from the registry of
acceptance of the work or of notice of default of the contractor.
Proposed law provides nothing shall be construed to preclude a surety who has furnished such 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 and otherwise retains present law.
Proposed law exempts all contracts for projects that are directly associated with the preparation of
Super Bowl LIX from the provisions of present law relative to public works contracts, except for
contracts for projects in excess of $150,000. Further provides that the exemption terminates on
February 10, 2025. Proposed law requires that a bond surety issue payment to a materialman under certain conditions
if the materials conform to the material specifications, a notice of nonpayment has been issued after
forty-five days, and no payment in full has been made to the materialman within ninety days after
delivery of the materials.
Proposed law mandates that a bond surety pay a materialman within ten days after notice of
nonpayment, if certain statutory requirements are satisfied.
Proposed law provides the claim and right to payment of the materialman is in addition to any other
claims or remedies available.
Proposed law requires notice to be served by registered or certified United States mail in a postage
prepaid, properly addressed envelope to the last known address of the general contractor, bond
surety, and owner with a return receipt indicating that the letter was delivered, refused, or unclaimed
to satisfy notice provisions.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S.38:2241(C) and 2247 and R.S. 48:256.3(B) and 256.12; adds R.S. 38:2241(G))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original bill
1. Adds provision exempting all contracts for projects that are directly associated with
the preparation of Super Bowl LIX from the provisions of present law relative to
public works contracts, except for contracts for projects in excess of $150,000.
Further provides that the exemption terminates on February 10, 2025.
2. Makes technical corrections.
Senate Floor Amendments to engrossed bill
1. Requires bond surety to issue payment to a materialman under certain conditions if
the materials conform to the material specifications, a notice of nonpayment has been
issued after forty-five days, and no payment in full has been made to the materialman
within ninety days after delivery of the materials.
2. Mandates bond surety to pay materialman within ten days after notice of
nonpayment, if certain statutory requirements are satisfied.
3. Provides the claim and right to payment of the materialman is in addition to any other
claims or remedies available.
4. Requires notice to be served by registered or certified mail via United States mail in a postage prepaid, properly addressed envelope to the last known address of the
general contractor, bond surety, and owner with a return receipt indicating that the
letter was delivered, refused, or unclaimed to satisfy notice provisions.
5. Makes technical corrections.