641—23.3(105) Contractor license. A contractor licensed under Iowa Code chapter 105 will adhere to the following, the violation of which may give rise to disciplinary action:
	23.3(1) Master license.  A contractor will not engage in the business of designing, installing, or repairing plumbing, mechanical, HVAC-refrigeration, or hydronic systems unless at all times the contractor holds or employs at least one person holding an active master license issued by the board for each discipline in which the contractor conducts business. Without prior board approval, a contractor will not knowingly utilize a master licensee to meet this requirement if the master licensee is simultaneously associated with another contractor in that discipline.
	a. 	Notwithstanding subrule 23.3(1), in the event a licensed master of record’s employment with the contractor is terminated, or the master of record otherwise discontinues the master of record’s relationship with the contractor, or the master of record’s master license is lapsed, suspended, revoked, expired, or otherwise invalidated, the contractor may continue to provide plumbing, mechanical, HVAC-refrigeration, or hydronic systems services for a period of up to six months without identifying a new master of record.
	b. 	To utilize the six-month grace period set forth in paragraph 23.3(1)“a,” a contractor will notify the board of the contractor’s loss of the master of record within 30 days from the date the master of record is no longer associated with the contractor, absent exigent circumstances.
	23.3(2) Display of license. A person holding a contractor license will keep the current license certificate publicly displayed in the primary place in which the person practices.
	23.3(3) Surety bond. A person or entity holding a contractor license must maintain during the licensing period a surety bond issued by an entity licensed to do business in Iowa in a minimum amount of $5,000. If a person operates the contractor business as a sole proprietorship, the person must personally obtain and maintain the surety bond. If a person operates the contractor business as an employee or owner of a legal entity, the legal entity must obtain and maintain the surety bond, and the surety bond must cover all plumbing or mechanical work performed by the legal entity. The surety bond mandated under this subrule must contain a provision that requires the issuing entity to provide the board ten days’ written notice before the surety bond can be canceled.
	23.3(4) Public liability insurance. A person or entity holding a contractor license must maintain during the licensing period public liability insurance issued by an entity licensed to do business in Iowa in a minimum amount of $500,000. If a person operates the contractor business as a sole proprietorship, the person must personally obtain and maintain the public liability insurance. If a person operates the contractor business as an employee or owner of a legal entity, the legal entity must obtain and maintain the public liability insurance, and the public liability insurance must cover all plumbing and mechanical work performed by the legal entity. The public liability insurance mandated under this subrule must contain a provision that requires the issuing entity to provide the board ten days’ written notice before the public liability insurance can be canceled.
	23.3(5) Contractor registration with the department. A contractor will maintain registration as a contractor with the director pursuant to Iowa Code chapter 91C by providing the board with the necessary information.
	23.3(6) Permanent place of business. A contractor will maintain a permanent place of business, the address of which will be provided to the board. If a contractor changes the permanent place of business, the contractor will provide the board the new address within 30 days of the change.
	23.3(7) Licensure. A contractor will not knowingly allow an employee to perform work covered under Iowa Code chapter 105 without the applicable license.
	23.3(8) Supervision. A contractor will not knowingly allow an apprentice employed by the contractor to perform work covered under Iowa Code chapter 105 without supervision of the apprentice by a master or journeyperson who is also employed by the contractor and who is licensed in the discipline in which the apprentice is performing such work.
[ARC 7992C, IAB 5/15/24, effective 6/19/24]