CONSTRUCTION—REGISTRATION AND BONDING
CHAPTER 150
CONSTRUCTION CONTRACTOR REGISTRATION
[Prior to 10/21/98, see 347—Ch 150]
875—150.1(91C) Scope. This chapter implements Iowa Code chapter 91C. The rules in this chapter apply to all construction contractors, except for a person who earns less than $2,000 annually or who performs work or has work performed on the person’s own property.
875—150.2(91C) Definitions.
“Commissioner” means the labor commissioner of the division of labor services of the workforce development department or the commissioner’s designee.
“Construction” means new work, additions, alterations, reconstruction, installations, repairs and demolitions. Construction activities are generally administered or managed from a relatively fixed place of business, but the actual construction work is performed at one or more different sites which may be dispersed geographically. Examples of construction activities, adopted by reference, are in 871—23.82(96) for purposes of the Iowa employment security law.
“Contractor” means a person who engages in the business of construction as the term is defined in 871—23.82(96), for purposes of the Iowa employment security law, including subcontractors and special trade contractors.
“Division” means the division of labor services of the workforce development department.
“File” means deliver to the division.
“Out-of-state contractor” means a contractor whose principal place of business is in another state, and who contracts to perform construction in this state.
“Principal place of business” means the state in which a substantial part of the contractor’s business is transacted and from which the centralized supervision is exercised. Factors to be reviewed include:
	1.	State designated as home office on documents filed with governmental agencies.
	2.	State where payroll is prepared.
	3.	State where business transactions are performed.
	4.	State where officers, owners, or partners reside and work.
	5.	State in which bank accounts are located.
	6.	State in which fixed business property is located.
	7.	State where management decisions are made.
“Same phase of construction” means in the same type of construction operations or trade, such as, but not limited to, electrical work; masonry, stonework, tile setting and plastering; roofing; sheet metal work; excavation work; concrete work; glasswork; painting, paper hanging and decorating; plumbing, heating and air conditioning work; carpentry work; and miscellaneous special trade contractors.
“Working days” means Mondays through Fridays but shall not include Saturdays, Sundays or federal or state holidays. In computing 15 working days, the day of receipt of any notice shall not be included, and the last day of the 15 working days shall be included.
[ARC 8812B, IAB 6/2/10, effective 7/1/10; ARC 8984B, IAB 8/11/10, effective 9/15/10; ARC 3686C, IAB 3/14/18, effective 4/18/18; ARC 5022C, IAB 4/8/20, effective 5/13/20]
875—150.3(91C) Registration required. Before performing any construction work in this state, a contractor shall be registered with the division. A joint venture is an independent entity and shall be registered independently.
875—150.4(91C) Application. A contractor that is covered by the license requirements of Iowa Code chapter 105 shall apply for a contractor registration number by using the application system of the Iowa plumbing and mechanical systems board. All other contractors shall file an application with the division on forms provided by the division. The application shall contain the applicable information and documents specified in this rule.
	150.4(1) Name. The name of the contractor.
	150.4(2) Place of business. The complete mailing address of the principal place of business of the contractor.
	150.4(3) Telephone number. The business telephone number of the contractor.
	150.4(4) Business classification. The type of business entity of the contractor (i.e., corporation, partnership, sole proprietorship, trust, etc.).
	150.4(5) Ownership information.
	a. 	If the contractor is a corporation, the name, address, telephone number, and position of each officer of the corporation.
	b. 	If the contractor is other than a corporation, the name, address, and telephone number of each owner.
	150.4(6) Workers’ compensation coverage information.
	a. 	A certificate of insurance from the insurer showing proof of workers’ compensation insurance, the effective dates of coverage, and listing the division of labor services as a certificate holder;
	b. 	Employer’s release from the insurance requirements under workers’ compensation law form provided to self-insured employers by the commissioner of insurance under Iowa Code section 87.11; or
	c. 	A statement that the contractor is not required to carry workers’ compensation coverage.
	150.4(7) Account number. The employer account number issued by the unemployment insurance services division of the workforce development department before the contractor applies for a contractor registration number.
	150.4(8) Business description. A description of the business to include:
	a. 	The employer’s North American Industry Classification System (NAICS) code; or
	b. 	The principal products and services provided.
	150.4(9) Fee or fee exemption. A contractor who is eligible to register without paying a fee shall submit a completed fee exemption form. All other contractors must submit the nonrefundable fee as set forth below.
	a. 	The standard fee is $50 per year.
	b. 	Contractors who apply for a contractor registration number through the Iowa plumbing and mechanical systems board must pay a fee that is prorated in accordance with the length of the registration period.
	150.4(10) Social security number. The contractor, if a natural person, shall include the contractor’s social security number.
	150.4(11) Out-of-state contractor bond. An out-of-state contractor shall:
	a. 	File a $25,000 surety bond that is prepared using the bond form provided by the division, or
	b. 	Provide a copy of a letter from the Iowa department of transportation stating that the contractor is prequalified to bid on projects for the department of transportation pursuant to Iowa Code section 314.1.
[ARC 8812B, IAB 6/2/10, effective 7/1/10; ARC 8984B, IAB 8/11/10, effective 9/15/10; ARC 3059C, IAB 5/10/17, effective 6/14/17; ARC 3686C, IAB 3/14/18, effective 4/18/18]
875—150.5(91C) Amendments to application.
	150.5(1) A contractor shall report to the commissioner any change in the information originally reported on or with the application within 15 working days of the change, except that the contractor shall notify the commissioner of changes to workers’ compensation coverage within ten days prior to any change in coverage.
	150.5(2) After the time specified in subrule 150.5(1), with good cause shown the commissioner may determine that an amendment may be made to correct an application.
	150.5(3) Amendments to applications shall not be permitted where a change occurs in the business classification, such as, but not limited to, a change from a sole proprietorship to a corporation.
875—150.6(91C) Fee.
	150.6(1) New applications. A new application deposited in the U.S. mail shall be accompanied by the fee effective on the date the application is postmarked. A new application delivered in any other manner shall be accompanied by the fee effective on the date the application is received by the division.
	150.6(2) Renewal applications. A timely renewal application shall be accompanied by the fee effective on the expiration date of the contractor’s expiring registration. An application for renewal deposited in the U.S. mail after the expiration date of the contractor’s expiring registration shall be accompanied by the fee effective on the date the application is postmarked. An application for renewal delivered to the division in a manner other than U.S. mail and after the expiration date of the contractor’s expiring registration shall be accompanied by the fee effective on the date the application is received by the division.
	150.6(3) Fee exemption. Rescinded IAB 5/10/17, effective 6/14/17.
	150.6(4) Amendments to applications. A fee is not required for a permissible amendment to an application.
[ARC 7876B, IAB 6/17/09, effective 7/1/09; ARC 8035B, IAB 8/12/09, effective 9/16/09; ARC 3059C, IAB 5/10/17, effective 6/14/17]
875—150.7(91C) Registration number issuance. Within 30 days of receipt of a completed application, the commissioner will issue to the contractor a registration number. The registration number will consist of the letter “C” followed by six unique digits.
875—150.8(91C) Workers’ compensation insurance cancellation notifications.
	150.8(1) Insurance company coverage. The division shall be notified by the insurance company carrying the contractor’s workers’ compensation insurance at the time of cancellation. The notice shall contain:
	a. 	The name of the insurance carrier;
	b. 	The name of the insured contractor; and
	c. 	The date the workers’ compensation coverage cancellation is effective.
	150.8(2) Self-insured contractors. The contractor shall notify the division ten days prior to any cessation in self-insurance.
	150.8(3) Noninsured contractors. The contractor shall notify the division whenever the required notice is not posted or in any change in insurance status.
875—150.9(91C) Investigations and complaints.
	150.9(1) Investigations. Investigations may take many forms to determine if there is compliance with the law. Investigations shall take place at the times and in the places as the commissioner may direct. The commissioner may interview persons at the work site and utilize other reasonable investigatory techniques. The conduct of the investigation shall be such as to preclude unreasonable disruption of the operations of the work site. Investigations may be conducted without prior notice by correspondence, telephone conversations, or review of materials submitted to the division. At the initiation of an investigation at the contractor’s establishment, the investigator shall present credentials, explain the nature and purpose of the investigation, and seek the consent of the owner, operator or agent in charge of the establishment. In the event the investigator is not permitted to fully conduct an investigation, the commissioner may seek an administrative warrant, if necessary.
	150.9(2) Complaints. Complaints in which the complainant provides a name and address made to the commissioner in writing shall receive a written response as to the results of the investigation. A complainant’s name and other identifying information shall not be released if the complaint was included as a part of another complaint where the complainant’s identity would be protected under other statutes or rules (i.e., a complaint filed under both Iowa Code chapters 88 and 91C).
875—150.10(91C) Citations/penalties and appeal hearings.
	150.10(1) Citations. The commissioner shall issue a citation to a contractor where an investigation reveals the contractor has violated:
	a. 	The requirement that the contractor be registered;
	b. 	The requirement that the contractor’s registration information be substantially complete and accurate; or
	c. 	The requirement that an out-of-state contractor file a bond with the division.
	150.10(2) Penalties. If a citation is issued, the commissioner shall notify the contractor by certified mail of the proposed administrative penalty, if any. The administrative penalties shall be not more than $500 in the case of the first violation and not more than $5,000 per violation in the case of a second or subsequent violation. In proposing a penalty, due consideration will be given to knowledge of the alleged violation, knowledge of requirements of the law, and nature and extent of the alleged violation.
	150.10(3) Appeal. The contractor shall have 15 working days within which to file a notice of contest of the citation or proposed penalty. The notice of contest shall be filed with the commissioner who shall forward it to the employment appeal board.
	150.10(4) Appeal procedures. The rules of procedure of the employment appeal board shall apply to administrative hearings on citations and penalties.
875—150.11(91C) Revocation of registrations and appeal hearings.
	150.11(1) Reason for revocation. The commissioner shall seek revocation of a contractor’s registration where an investigation reveals the contractor failed to meet the conditions of registration at the time of issuance or no longer meets the conditions.
	150.11(2) Notice of revocation. The commissioner shall serve a notice of intent to revoke on the contractor by personal service or by restricted certified mail to the address listed in the application or by other service as permitted in the Iowa Rules of Civil Procedure. The notice shall set the time for a fact-finding interview.
	150.11(3) Fact-finding interview. The purpose of the fact-finding interview is to ensure the contractor is not in compliance before the registration is revoked. The contractor may file a request for an in-person fact-finding interview at least 72 hours before the fact-finding interview is scheduled to begin. Otherwise, the fact-finding interview will be conducted by telephone. The contractor may notify the fact finder of a telephone number to use at least 24 hours before the fact-finding interview is scheduled to begin. Otherwise, the fact finder shall call the number on file for the contractor. The fact-finding interview may be conducted via videoconference if the fact finder and the contractor make arrangements in advance.
	150.11(4) Rescinded IAB 8/28/19, effective 10/2/19.
	150.11(5) Decision. The commissioner shall serve the decision of the fact-finding interview on the contractor by certified mail to the address listed on the application or to another address provided by the contractor. If the certified mail is returned unclaimed or undelivered, the commissioner shall serve the decision by other service as permitted in the Iowa Rules of Civil Procedure.
	150.11(6) Effective date of revocation. Revocations shall become effective 21 days after certified mailing of the decision.
	150.11(7) Rescinded IAB 8/28/19, effective 10/2/19.
	150.11(8) Notice of contest. The contractor shall have 15 working days from receipt of the decision issued pursuant to subrule 150.11(5) to file a notice of contest. The notice of contest shall be filed with the commissioner, who shall forward it to the employment appeal board.
	150.11(9) Notice of contest procedures. The rules of procedure of the employment appeal board shall apply to notices of contest.
	150.11(10) Effect of revocation. A contractor whose registration is revoked may reapply for a new registration number if all requirements for registration eligibility are met.
	150.11(11) Relinquishing registration certificate. A contractor shall return the original registration certificate to the division when a revocation or suspension becomes final.
[ARC 4640C, IAB 8/28/19, effective 10/2/19; ARC 6102C, IAB 12/29/21, effective 2/2/22]
875—150.12(91C) Concurrent actions. Actions under rules 875—150.10(91C) and 150.11(91C) may proceed at the same time against a contractor.
875—150.13(91C) Out-of-state contractor bonds. Rescinded IAB 6/2/10, effective 7/1/10.
875—150.14(91C) Project bonds. Rescinded IAB 6/2/10, effective 7/1/10.
875—150.15(91C) Blanket bonds. Rescinded IAB 6/2/10, effective 7/1/10.
875—150.16(91C) Bond release.
	150.16(1) Notifications. Prior to releasing a bond, the commissioner will notify the department of revenue, the unemployment insurance services division of the workforce development department, and applicable state subdivisions of the intent to release the bond. The commissioner shall provide ten days for the filing of objections to the release of the bond. The commissioner may deem any failure to respond to the notice within the time provided as an approval of the release.
	150.16(2) Conditions for release. A bond shall not be released until the contractor has made payment of all taxes, including contributions due under the unemployment compensation insurance system, penalties, interest, and fees, which may accrue to the state of Iowa or its subdivisions on account of the execution and performance of the contract or approval for the release is obtained from the appropriate agencies.
These rules are intended to implement Iowa Code chapter 91C.
[Filed 12/9/88, Notice 10/5/88—published 12/28/88, effective 2/15/89]1
[Filed emergency 4/26/89—published 5/17/89, effective 4/26/89]
[Filed 10/26/89, Notice 5/17/89—published 11/15/89, effective 12/29/89]◊
[Filed 2/7/97, Notice 8/14/96—published 2/26/97, effective 4/4/97]
[Filed emergency 5/4/99 after Notice 3/24/99—published 6/2/99, effective 7/1/99]
[Filed emergency 6/28/06—published 7/19/06, effective 7/1/06]
[Filed 11/3/06, Notice 9/27/06—published 11/22/06, effective 1/1/07]
[Filed 11/30/06, Notice 7/19/06—published 12/20/06, effective 1/24/07]
[Filed emergency 6/25/08—published 7/16/08, effective 6/25/08]
[Filed Emergency ARC 7876B, IAB 6/17/09, effective 7/1/09]
[Filed ARC 8035B (Notice ARC 7875B, IAB 6/17/09), IAB 8/12/09, effective 9/16/09]
[Filed Emergency ARC 8812B, IAB 6/2/10, effective 7/1/10]
[Filed ARC 8984B (Notice ARC 8818B, IAB 6/2/10), IAB 8/11/10, effective 9/15/10]
[Filed ARC 3059C (Notice ARC 2965C, IAB 3/15/17), IAB 5/10/17, effective 6/14/17]
[Filed ARC 3686C (Notice ARC 3565C, IAB 1/17/18), IAB 3/14/18, effective 4/18/18]
[Filed ARC 4640C (Notice ARC 4520C, IAB 7/3/19), IAB 8/28/19, effective 10/2/19]
[Filed ARC 5022C (Notice ARC 4894C, IAB 2/12/20), IAB 4/8/20, effective 5/13/20]
[Filed ARC 6102C (Notice ARC 5959C, IAB 10/6/21), IAB 12/29/21, effective 2/2/22]
◊	Two or more ARCs
1	Effective date (2/15/89) delayed 70 days by the Administrative Rules Review Committee at its January 5, 1989, meeting.