SF 2365 (LSB 5742SV (1) 91)

SENATE FILE 2365

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO SSB 3159)

(COMPANION TO HF 2189 BY COMMITTEE ON JUDICIARY)

A BILL FOR

An Act relating to public improvement contracts, including notice requirements.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 573.16, subsection 1, Code 2026, is amended to read as follows:
   1.  a.  The public corporation, the principal contractor, any claimant for labor or material who has filed a claim, or the surety on any bond given for the performance of the contract, may, at any time after the expiration of thirty days, and not later than sixty days, following the completion and final acceptance of said improvement, bring action in equity in the county where the improvement is located to adjudicate all rights to said fund, or to enforce liability on said bond.
   b.  No later than fourteen calendar days after final acceptance of the improvement, the public corporation shall send to the principal contractor, the surety on any bond given for the performance of the contract, and any claimant for labor or material who has filed a claim, a written notification of the date of the public corporation’s final acceptance of the improvement. The public corporation shall not be liable for any claims or damages based on or arising out of the public corporation’s failure to comply with this paragraph.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to public improvement contracts.
   Under Code chapter 573, a public corporation may enter into a contract for the construction of a public improvement. The bill requires that no later than 14 calendar days after the public corporation’s final acceptance of the public improvement, the public corporation shall send a written notification of the date of the public corporation’s final acceptance of the public improvement to the principal contractor, the surety on any bond given for the performance of the contract, and any claimant for labor or material who has filed a claim. The public corporation will not be liable for any claims or damages based on or arising out of the public corporation’s failure to comply with the bill.