CHAPTER 34

(HB 1181)

Directed suretyship prohibited.


         ENTITLED, An Act to  prohibit directed suretyship.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  No public servant may, directly or indirectly, require or direct a bidder on any public building or construction contract which is about to be or has been competitively bid to obtain from a particular insurer or insurance producer any surety bond or contract of insurance required in such bid or contract or required by any law, ordinance, or regulation. However, the surety insurer shall be an authorized insurer under Title 58. Nothing in this section prevents any such public servant acting on behalf of the government from exercising the right to approve or reject a surety bond or contract of insurance as to its form or sufficiency.

     Signed February 22, 2002.
_______________

Session Laws Menu | LRC Menu

This page is maintained by the Legislative Research Council