HASBSB265 TYLERT 4352
SENATE SUMMARY OF HOUSE AMENDMENTS
SB 265 2024 Regular Session Womack
KEYWORD AND SUMMARY AS RETURNED TO THE SENATE
CONTRACTS. Provides for public contracts and public works. (gov sig)
SUMMARY OF HOUSE AMENDMENTS TO THE SENATE BILL
1. Provides that the claim and right to payment of the materialman is in addition
to any other rights available.
2. Makes technical changes.
DIGEST OF THE SENATE BILL AS RETURNED TO THE SENATE
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. HASBSB265 TYLERT 4352
Proposed law requires that a 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 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 rights, 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, surety, and owner with a return receipt indicating that the letter was delivered,
refused, or unclaimed to satisfy notice provisions.
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.
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))
______________________
Emily Toler
Attorney