Senate File 230 - Introduced SENATE FILE 230 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO SSB 1124) A BILL FOR An Act requiring in-state construction contracts and disputes 1 thereof to be governed by Iowa law. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1607SV (2) 85 je/nh

S.F. 230 Section 1. NEW SECTION . 537A.6 In-state construction 1 contracts —— Iowa law to govern. 2 1. As used in this section, “in-state construction 3 contract” means a public, private, foreign, or domestic 4 agreement relating to construction, alteration, repair, or 5 maintenance of any real property in this state and includes 6 agreements for architectural services, demolition, design 7 services, development, engineering services, excavation, or any 8 other improvement to real property in this state, including 9 buildings, shafts, wells, and structures, whether on, above, or 10 under real property in this state. 11 2. A provision of an in-state construction contract is void 12 and unenforceable as contrary to public policy if the provision 13 does any of the following: 14 a. Makes the in-state construction contract subject to the 15 laws of another state. 16 b. Requires any litigation, meditation, arbitration, or 17 other dispute resolution proceeding arising from the in-state 18 construction contract to be conducted in another state. 19 3. Notwithstanding any contractual provision to the 20 contrary, the laws of this state shall apply to every in-state 21 construction contract. 22 4. Any litigation, mediation, arbitration, or other dispute 23 resolution proceeding arising from or relating to an in-state 24 construction contract shall be conducted in this state. 25 EXPLANATION 26 This bill provides that a provision of an in-state 27 construction contract is void and unenforceable as contrary 28 to public policy if the provision makes the contract subject 29 to the laws of another state or requires any litigation, 30 meditation, arbitration, or other dispute resolution proceeding 31 arising from the contract to be conducted in another state. 32 The bill requires any litigation, mediation, arbitration, or 33 other dispute resolution proceeding arising from or relating 34 to an in-state construction contract to be conducted in this 35 -1- LSB 1607SV (2) 85 je/nh 1/ 2

S.F. 230 state. The bill also provides that the laws of this state 1 apply to every in-state construction contract, notwithstanding 2 any contractual provision to the contrary. 3 “In-state construction contract”, as defined in the bill, 4 means a public, private, foreign, or domestic agreement 5 relating to construction, alteration, repair, or maintenance 6 of any real property in this state and includes agreements 7 for architectural services, demolition, design services, 8 development, engineering services, excavation, or any 9 other improvement to real property in this state, including 10 buildings, shafts, wells, and structures, whether on, above, or 11 under real property in this state. 12 -2- LSB 1607SV (2) 85 je/nh 2/ 2