Senate File 576 - Introduced SENATE FILE 576 BY COMMITTEE ON LOCAL GOVERNMENT (SUCCESSOR TO SSB 1151) A BILL FOR An Act relating to bonds for general contractors. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2245SV (2) 91 ss/ns
S.F. 576 Section 1. NEW SECTION . 572A.1 General contractors bond. 1 1. A general contractor, as defined in section 572.1, shall 2 obtain a performance bond payable to the person for whom the 3 general contractor is performing work in the amount of fifty 4 thousand dollars prior to performing any work in this state. 5 The performance bond shall be executed by a surety company 6 authorized to do business in this state. 7 2. This section does not apply to a general contractor 8 performing work for the state or a political subdivision of the 9 state, including a general contractor performing work that is 10 subject to the requirements of chapter 8A, subchapter III. 11 3. A county, city, township, or school district shall not 12 require that a general contractor file a bond for private work 13 other than as required by this section. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanations substance by the members of the general assembly. 17 This bill requires a general contractor, defined as a person 18 who does work or furnishes materials by contract, express or 19 implied, with an owner, to obtain a performance bond payable 20 to the person for whom the general contractor is performing 21 work in the amount of $50,000 prior to performing any work in 22 this state. The bill does not apply to a general contractor 23 performing work for the state or a political subdivision of 24 the state, including a general contractor subject to state 25 agency competitive bidding requirements. The bill prohibits a 26 county, city, township, or school district from requiring that 27 a general contractor file a bond for private work other than 28 as required by the bill. 29 -1- LSB 2245SV (2) 91 ss/ns 1/ 1