LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 265 SLS 24RS 346
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 4, 2024 2:22 PM Author: WOMACK
Dept./Agy.: Statewide
Subject: Defenses available to a surety/Exemptions for projects Analyst: Kimberly Fruge
CONTRACTS EN NO IMPACT See Note Page 1 of 1
Provides relative to public contracts and public works. (gov sig)
Current 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 clarifies that a surety who has furnished 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. Proposed
law requires the surety to issue payment to a materialman for claims by a materialman under certain conditions.
Proposed law exempts all contracts for projects that are directly associated with the preparation of Super Bowl LIX that are
not in excess of $150,000 from the provisions of current law relative to public works contracts. This exemption is valid until
February 10, 2025.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. Proposed law
provides for defenses available to a surety who has provided a bond for a public works contract and requires a surety to
issue payment to a materialman for claims by a materialman under certain conditions. Proposed law also provides for an
exemption for all contracts for projects that are directly associated with the preparation of Super Bowl LIX that are not in
excess of $150,000 from the provisions of current law relative to public works contracts.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer


Statutes affected:
SB265 Original: 38:2241(C), 48:3(B)
SB265 Engrossed: 38:2241(C), 48:3(B)
SB265 Reengrossed: 38:2241(C), 48:3(B)
SB265 Enrolled: 38:2241(C), 48:3(B)
SB265 Act 761: 38:2241(C), 48:3(B)