SSB 1114 (LSB 2249XC (2) 91)

SENATE FILE _____ 

BY  (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER)

A BILL FOR

An Act related to the regulation of certain licensed professionals by counties and cities, including prohibiting contractor licensing and limiting permit fees.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 105.17, subsection 1, paragraph b, Code 2025, is amended to read as follows:
   b.  On and after July 1, 2008, a governmental subdivision shall not prohibit a contractor or a plumbing, mechanical, HVAC-refrigeration, sheet metal, or hydronic professional licensed pursuant to this chapter from performing services for which that person is licensed pursuant to this chapter or enforce any contractor or plumbing, and mechanical, HVAC-refrigeration, sheet metal, or hydronic professional licensing provisions promulgated by the governmental subdivision against a person licensed pursuant to this chapter.
    Sec. 2.  Section 105.17, subsection 2, Code 2025, is amended to read as follows:
   2.  Nothing in this chapter shall prohibit a governmental subdivision from assessing and collecting permit fees that do not exceed five hundred dollars or inspection fees related to work performed by plumbing, mechanical, HVAC-refrigeration, sheet metal, or hydronic professionals.
    Sec. 3.  Section 331.301, subsection 6, paragraph b, Code 2025, is amended to read as follows:
   b.  A county shall not impose any fee or charge on any individual or business licensed by the plumbing and mechanical systems board for the right to perform plumbing, mechanical, HVAC, refrigeration, sheet metal, or hydronic systems work within the scope of the license.  A county shall not impose a license fee or charge on any individual or business defined as a “general contractor” as defined in section 572.1, subsection 3, or “subcontractor” as defined in section 572.1, subsection 11. This paragraph does not prohibit a county from charging fees for the issuance of permits that do not exceed five hundred dollars for, and inspections of, work performed in its jurisdiction.
    Sec. 4.  Section 364.3, subsection 3, paragraph b, Code 2025, is amended to read as follows:
   b.  A city shall not impose any fee or charge on any individual or business licensed by the plumbing and mechanical systems board for the right to perform plumbing, mechanical, HVAC, refrigeration, sheet metal, or hydronic systems work within the scope of the license.  A city shall not impose a license fee or charge on any individual or business defined as a “general contractor” as defined in section 572.1, subsection 3, or “subcontractor” as defined in section 572.1, subsection 11. This paragraph does not prohibit a city from charging fees for the issuance of permits that do not exceed five hundred dollars for, and inspections of, work performed in its jurisdiction.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   Under current law, a county or city is prohibited from imposing a fee or charge on any individual or business licensed by the plumbing and mechanical systems board for the right to perform plumbing, mechanical, HVAC, refrigeration, sheet metal, or hydronic systems work within the scope of the license. A county or city may charge fees for the issuance of permits for, and inspections of, work performed in its jurisdiction.
   This bill prohibits a county or a city from imposing a licensing fee or charge on a general contractor or a subcontractor. “General contractor” includes every person who does work or furnishes materials by contract, express or implied, with an owner. “General contractor” does not include a person who does work or furnishes materials on contract with an owner-builder. “Subcontractor” includes every person furnishing material or performing labor upon any building, erection, or other improvement, except those having contracts directly with the owner. “Subcontractor” shall include those persons having contracts directly with an owner-builder.
   The bill limits the amount of a permit fee charged by a county or a city for work performed, including inspection of such work, in its jurisdiction to not more than $500.