HOUSE FILE 2035

BY  BAUDLER

A BILL FOR

An Act relating to surety bond requirements for fire extinguishing system and alarm system contractors and fire protection system installers and maintenance workers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 100C.3, subsection 1, paragraph b, Code 2011, is amended to read as follows:
   b.  Proof of insurance
 
and surety bond coverage required by section 100C.4.
    Sec. 2.  Section 100C.4, Code 2011, is amended to read as follows:
   100C.4  Insurance
 
and surety bond.
   1.  A fire extinguishing system contractor shall maintain general and complete operations liability insurance
 
and surety bond for the layout, installation, repair, alteration, addition, maintenance, and inspection of automatic fire extinguishing systems in an amount determined by the state fire marshal by rule.
   2.  An alarm system contractor shall maintain general and complete operations liability insurance
 
and surety bond for the layout, installation, repair, alteration, addition, maintenance, and inspection of alarm systems in an amount determined by the state fire marshal by rule.
   3.  The insurance and surety bond shall be written by an entity licensed to do business in this state and each contractor shall maintain on file with the department of public safety a certificate evidencing the insurance providing that the insurance or surety bond shall not be canceled without the entity first giving fifteen days’ written notice to the state fire marshal.
    Sec. 3.  Section 100D.4, Code 2011, is amended to read as follows:
   100D.4  Insurance and surety bond requirements.
   1.  An applicant for a fire protection system installer and maintenance worker license or renewal of an active license shall provide evidence of a public liability insurance policy and surety bond in an amount determined sufficient by the fire marshal by rule.
   2.  If the applicant is engaged in fire protection system installer and maintenance worker work individually through a business conducted as a sole proprietorship, the applicant shall personally obtain the insurance and surety bond required by this section. If the applicant is engaged in the fire protection system installer and maintenance worker business as an employee or owner of a legal entity, then the insurance and surety bond required by this section shall be obtained by the entity and shall cover all fire protection system installer and maintenance worker work performed by the entity.
   3.  The insurance and surety bond shall be written by an entity licensed to do business in this state and each licensee shall maintain on file with the department a certificate evidencing the insurance providing that the insurance or surety bond shall not be canceled without the entity first giving fifteen days
 
days’ written notice to the fire marshal.
EXPLANATION
   This bill requires surety bonds for fire extinguishing system and alarm system contractors. Those contractors are currently required to maintain operations liability insurance.
   The bill also removes a current surety bond requirement for fire protection system installers and maintenance workers.