S.F. 2365 Section 1. Section 573.16, subsection 1, Code 2026, is 1 amended to read as follows: 2 1. a. The public corporation, the principal contractor, 3 any claimant for labor or material who has filed a claim, 4 or the surety on any bond given for the performance of the 5 contract, may, at any time after the expiration of thirty days, 6 and not later than sixty days, following the completion and 7 final acceptance of said improvement, bring action in equity in 8 the county where the improvement is located to adjudicate all 9 rights to said fund, or to enforce liability on said bond. 10 b. No later than fourteen calendar days after final 11 acceptance of the improvement, the public corporation shall 12 send to the principal contractor, the surety on any bond given 13 for the performance of the contract, and any claimant for labor 14 or material who has filed a claim, a written notification of 15 the date of the public corporation’s final acceptance of the 16 improvement. The public corporation shall not be liable for 17 any claims or damages based on or arising out of the public 18 corporation’s failure to comply with this paragraph. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to public improvement contracts. 23 Under Code chapter 573, a public corporation may enter 24 into a contract for the construction of a public improvement. 25 The bill requires that no later than 14 calendar days after 26 the public corporation’s final acceptance of the public 27 improvement, the public corporation shall send a written 28 notification of the date of the public corporation’s final 29 acceptance of the public improvement to the principal 30 contractor, the surety on any bond given for the performance of 31 the contract, and any claimant for labor or material who has 32 filed a claim. The public corporation will not be liable for 33 any claims or damages based on or arising out of the public 34 corporation’s failure to comply with the bill. 35 -1- LSB 5742SV (1) 91 lh/jh 1/ 1