Senate Study Bill 1114 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER) A BILL FOR An Act related to the regulation of certain licensed 1 professionals by counties and cities, including prohibiting 2 contractor licensing and limiting permit fees. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2249XC (2) 91 ll/js

S.F. _____ Section 1. Section 105.17, subsection 1, paragraph b, Code 1 2025, is amended to read as follows: 2 b. On and after July 1, 2008, a governmental subdivision 3 shall not prohibit a contractor or a plumbing, mechanical, 4 HVAC-refrigeration, sheet metal, or hydronic professional 5 licensed pursuant to this chapter from performing services 6 for which that person is licensed pursuant to this chapter 7 or enforce any contractor or plumbing , and mechanical , 8 HVAC-refrigeration, sheet metal, or hydronic professional 9 licensing provisions promulgated by the governmental 10 subdivision against a person licensed pursuant to this chapter . 11 Sec. 2. Section 105.17, subsection 2, Code 2025, is amended 12 to read as follows: 13 2. Nothing in this chapter shall prohibit a governmental 14 subdivision from assessing and collecting permit fees that do 15 not exceed five hundred dollars or inspection fees related to 16 work performed by plumbing, mechanical, HVAC-refrigeration, 17 sheet metal, or hydronic professionals. 18 Sec. 3. Section 331.301, subsection 6, paragraph b, Code 19 2025, is amended to read as follows: 20 b. A county shall not impose any fee or charge on any 21 individual or business licensed by the plumbing and mechanical 22 systems board for the right to perform plumbing, mechanical, 23 HVAC, refrigeration, sheet metal, or hydronic systems work 24 within the scope of the license. A county shall not impose a 25 license fee or charge on any individual or business defined as 26 a “general contractor” as defined in section 572.1, subsection 27 3, or “subcontractor” as defined in section 572.1, subsection 28 11. This paragraph does not prohibit a county from charging 29 fees for the issuance of permits that do not exceed five 30 hundred dollars for, and inspections of, work performed in its 31 jurisdiction. 32 Sec. 4. Section 364.3, subsection 3, paragraph b, Code 2025, 33 is amended to read as follows: 34 b. A city shall not impose any fee or charge on any 35 -1- LSB 2249XC (2) 91 ll/js 1/ 2

S.F. _____ individual or business licensed by the plumbing and mechanical 1 systems board for the right to perform plumbing, mechanical, 2 HVAC, refrigeration, sheet metal, or hydronic systems work 3 within the scope of the license. A city shall not impose a 4 license fee or charge on any individual or business defined as 5 a “general contractor” as defined in section 572.1, subsection 6 3, or “subcontractor” as defined in section 572.1, subsection 7 11. This paragraph does not prohibit a city from charging 8 fees for the issuance of permits that do not exceed five 9 hundred dollars for, and inspections of, work performed in its 10 jurisdiction. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 Under current law, a county or city is prohibited from 15 imposing a fee or charge on any individual or business licensed 16 by the plumbing and mechanical systems board for the right to 17 perform plumbing, mechanical, HVAC, refrigeration, sheet metal, 18 or hydronic systems work within the scope of the license. A 19 county or city may charge fees for the issuance of permits for, 20 and inspections of, work performed in its jurisdiction. 21 This bill prohibits a county or a city from imposing 22 a licensing fee or charge on a general contractor or a 23 subcontractor. “General contractor” includes every person 24 who does work or furnishes materials by contract, express or 25 implied, with an owner. “General contractor” does not include 26 a person who does work or furnishes materials on contract 27 with an owner-builder. “Subcontractor” includes every person 28 furnishing material or performing labor upon any building, 29 erection, or other improvement, except those having contracts 30 directly with the owner. “Subcontractor” shall include those 31 persons having contracts directly with an owner-builder. 32 The bill limits the amount of a permit fee charged by a 33 county or a city for work performed, including inspection of 34 such work, in its jurisdiction to not more than $500. 35 -2- LSB 2249XC (2) 91 ll/js 2/ 2