(1) No public servant shall, 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, agent, or broker any surety bond or contract of insurance required in such bid or contract or required by any law, ordinance, or regulation.
(2) Any such public servant who violates any of the provisions of subsection (1) of this section commits a class 1 petty offense.
(3) Any provisions in invitations to bid or in any contract documents prohibited by this section are declared void as against the public policy of this state.
(4) Nothing in this section shall be construed to prevent 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 or the lack of financial capability of an insurer selected by a bidder.
(5) This section shall apply only to contracts entered into on or after July 1, 1977.
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