SSB 1151 (LSB 2245XC (3) 91)

SENATE FILE _____ 

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

A BILL FOR

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

    Section 1.  Section 91C.2, subsection 3, Code 2025, is amended to read as follows:
   3.  An out-of-state The contractor shall either file a surety bond, as provided in section 91C.7, with the department in the amount of twenty-five fifty thousand dollars or shall provide a statement to the department that the contractor is prequalified to bid on projects for the department of transportation pursuant to section 314.1.
    Sec. 2.  Section 91C.7, Code 2025, is amended by adding the following new subsection:
   NEW SUBSECTION.  7.  A county, city, township, or school district shall not require that a contractor file a bond other than as expressly required by this Code.
    Sec. 3.  Section 91C.8, subsection 2, paragraph c, Code 2025, is amended to read as follows:
   c.  The requirement that an out-of-state a contractor file a bond with the department.
    Sec. 4.  Section 105.18, subsection 2, paragraph d, subparagraph (1), Code 2025, is amended to read as follows:
   (1)  File an application and pay application fees as established by the board and establish that the person meets the minimum requirements adopted by the board. Through June 30, 2017, the application shall include the person’s state contractor registration number. After July 1, 2017, the The application shall include proof of workers compensation insurance coverage, proof of unemployment insurance compliance, and, for out-of-state contractors, a bond as described in chapter 91C.
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 the filing of bonds by construction contractors. The bill requires all contractors, defined as a person who engages in the business of construction and earns at least $2,000 annually, to file a surety bond in the amount of $50,000 with the department of inspections, appeals, and licensing, unless the contractor is prequalified to bid on projects for the department of transportation. The bill prohibits a county, city, township, or school district from requiring that a contractor file a bond other than as expressly provided in the Iowa Code (see, e.g., Code sections 26.14, 26.15, 331.341, and 357.17; Code chapter 573).