(HB 1181)
Directed suretyship prohibited.
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.