Senate Study Bill 1113 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF PUBLIC HEALTH BILL) A BILL FOR An Act relating to contractor registration and licensing by the 1 department of public health and the department of workforce 2 development and related fees and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1255XD (3) 87 je/rj

S.F. _____ H.F. _____ Section 1. Section 91C.1, subsection 3, Code 2017, is 1 amended to read as follows: 2 3. a. The labor services division of the department of 3 workforce development and the Iowa department of public health 4 will work with stakeholders to develop a plan to combine the 5 contractor registration and contractor licensing application 6 process for contractors licensed under chapter 105 , to be 7 implemented in time for licensing renewals due July 1, 2017. 8 The department of public health shall transfer to the labor 9 services division a portion of each contractor license fee 10 equal to three times the current contractor registration fee. 11 Effective July 1, 2017, a contractor licensed under chapter 12 105 shall register as a contractor under this chapter in 13 conjunction with the contractor licensing process. At no cost 14 to the labor services division, the department of public health 15 shall collect both the registration and licensing applications 16 as part of one combined application. The labor commissioner 17 shall design the contractor registration application form to 18 exclude from the division of labor’s contractor registration 19 application process those contractors who are also covered by 20 chapter 105 . The labor commissioner is authorized to adopt 21 rules as needed to accomplish a merger of the application 22 systems including transitional registration periods and fees. 23 b. Effective July 1, 2017, excluding registrations by 24 contractors that are exempt from the registration fee pursuant 25 to this section, the department of public health shall collect 26 and transfer to the labor services division a portion of each 27 contractor license fee equal to three times the contractor 28 registration fee for each three-year license or a prorated 29 portion thereof using a one-sixth deduction for each six-month 30 period of the renewal cycle. 31 Sec. 2. Section 91C.2, subsection 3, Code 2017, is amended 32 to read as follows: 33 3. An out-of-state contractor shall either file a surety 34 bond, as provided in section 91C.7 , with the division of labor 35 -1- LSB 1255XD (3) 87 je/rj 1/ 2

S.F. _____ H.F. _____ services in the amount of twenty-five thousand dollars for a 1 one-year period or shall provide a statement to the division 2 of labor services that the contractor is prequalified to bid 3 on projects for the department of transportation pursuant to 4 section 314.1 . 5 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 6 immediate importance, takes effect upon enactment. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 Under current law, the labor services division of the 11 department of workforce development and the department of 12 public health are directed to develop a plan to combine the 13 contractor registration and contractor licensing application 14 process for contractors licensed under Code chapter 105, the 15 Iowa plumber, mechanical professional, and contractor licensing 16 Act, to be implemented in time for licensing renewals due July 17 1, 2017. As part of that process, the department of public 18 health is required to transfer to the labor services division a 19 portion of each contractor license fee equal to three times the 20 current contractor registration fee. 21 This bill strikes language regarding such fee transfers. 22 The bill instead requires the department of public health 23 to collect and transfer to the labor services division a 24 portion of each contractor license fee equal to three times 25 the contractor registration fee for each three-year license 26 or a prorated portion thereof using a one-sixth deduction for 27 each six-month period of the renewal cycle beginning July 1, 28 2017. The bill excludes from the fee transfer requirements 29 registrations by contractors that are exempt from the 30 registration fee pursuant to Code section 91C.1. 31 The bill also strikes language providing that $25,000 surety 32 bonds filed with the division of labor services as provided in 33 Code section 91C.7 are filed for a one-year period. 34 The bill takes effect upon enactment. 35 -2- LSB 1255XD (3) 87 je/rj 2/ 2