House
Study
Bill
10
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ANDERSON)
A
BILL
FOR
An
Act
concerning
the
retention
of
funds
due
to
contractors
on
1
public
improvements.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1054HC
(4)
84
je/sc
H.F.
_____
Section
1.
Section
573.15,
Code
2011,
is
amended
to
read
as
1
follows:
2
573.15
Exception.
3
1.
No
A
part
of
the
unpaid
fund
due
the
contractor
shall
4
not
be
retained
as
provided
in
this
chapter
on
claims
for
labor
5
performed
or
material
furnished,
other
than
materials
labor
6
or
material
ordered
by
the
general
contractor
or
the
general
7
contractor’s
authorized
agent,
unless
such
claims
are
supported
8
by
a
certified
statement
that
the
person
performing
the
labor
9
or
furnishing
the
material
for
which
the
claim
is
made
has
done
10
all
of
the
following:
11
a.
Provided
the
general
contractor
had
been
notified
with
12
written
notice
within
thirty
days
after
the
materials
are
13
furnished
or
by
itemized
invoices
rendered
to
contractor
during
14
the
progress
of
the
work,
of
the
amount,
kind,
and
value
of
the
15
material
furnished
for
use
upon
the
said
public
improvement,
16
and
no
of
first
performing
the
labor
or
furnishing
the
material
17
for
which
a
claim
may
be
made
of
the
name,
mailing
address,
18
and
telephone
number
of
the
person
performing
the
labor
or
19
furnishing
the
material
and
the
name
of
the
person
for
whom
the
20
labor
was
performed
or
to
whom
the
material
was
furnished.
The
21
written
notice
shall
be
accompanied
with
copies
of
all
purchase
22
orders,
contracts,
or
subcontracts
under
which
the
labor
was
23
performed
or
the
material
was
furnished.
24
b.
Provided
the
general
contractor
by
written
notice
25
within
five
days
following
the
end
of
any
month
during
which
26
that
person
performed
labor
for
or
furnished
material
to
a
27
subcontractor
on
that
project
of
the
number
of
invoices
or
pay
28
requests
the
person
submitted
to
the
subcontractor
during
that
29
month,
the
invoice
or
pay
request
numbers
identifying
those
30
invoices
or
pay
requests,
and
the
total
dollar
amount
of
those
31
invoices
or
pay
requests.
32
2.
The
certified
statement
shall
be
accompanied
by
copies
33
of
the
notices
required
by
subsection
1,
paragraphs
“a”
and
34
“b”
.
A
public
corporation
shall
not
retain
any
part
of
such
the
35
-1-
LSB
1054HC
(4)
84
je/sc
1/
2
H.F.
_____
unpaid
fund
due
the
contractor
shall
be
retained
as
provided
in
1
this
chapter
because
of
the
commencement
of
any
action
by
the
2
contractor
against
the
state
department
of
transportation
under
3
authority
granted
in
section
613.11
.
4
EXPLANATION
5
Current
law
provides
an
exception
to
the
requirement
that
a
6
public
corporation
retain
a
portion
of
funds
due
a
contractor
7
on
a
public
improvement
project
in
a
fund
for
the
payment
8
of
claims
for
materials
furnished
and
labor
performed.
The
9
exception
provides
that
a
public
corporation
need
only
retain
10
funds
due
a
supplier
of
material
to
a
general
contractor
if
11
the
supplier
provides
the
general
contractor
with
one
of
two
12
permitted
types
of
notice
after
the
materials
are
supplied.
13
This
bill
provides
that
the
exception
shall
apply
to
both
14
claims
for
labor
and
claims
for
material.
The
bill
also
amends
15
the
notice
requirement
to
provide
that
a
supplier
of
labor
16
or
material
to
a
general
contractor
must
give
both
types
of
17
notice
for
the
exception
to
apply.
The
bill
makes
certain
18
modifications
to
the
two
types
of
notice.
19
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1054HC
(4)
84
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2