SF 576 (LSB 2245SV (2) 91)

SENATE FILE 576

BY  COMMITTEE ON LOCAL GOVERNMENT

(SUCCESSOR TO SSB 1151)

A BILL FOR

An Act relating to bonds for general contractors.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  572A.1  General contractors —— bond.
   1.  A general contractor, as defined in section 572.1, shall obtain a performance bond payable to the person for whom the general contractor is performing work in the amount of fifty thousand dollars prior to performing any work in this state. The performance bond shall be executed by a surety company authorized to do business in this state.
   2.  This section does not apply to a general contractor performing work for the state or a political subdivision of the state, including a general contractor performing work that is subject to the requirements of chapter 8A, subchapter III.
   3.  A county, city, township, or school district shall not require that a general contractor file a bond for private work other than as required by this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill requires a general contractor, defined as a person who does work or furnishes materials by contract, express or implied, with an owner, to obtain a performance bond payable to the person for whom the general contractor is performing work in the amount of $50,000 prior to performing any work in this state. The bill does not apply to a general contractor performing work for the state or a political subdivision of the state, including a general contractor subject to state agency competitive bidding requirements. The bill prohibits a county, city, township, or school district from requiring that a general contractor file a bond for private work other than as required by the bill.