Senate Study Bill 1151 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON LOCAL GOVERNMENT BILL BY CHAIRPERSON WEBSTER) A BILL FOR An Act relating to bonds for construction contractors. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 2245XC (3) 91 ss/ns
S.F. _____ Section 1. Section 91C.2, subsection 3, Code 2025, is 1 amended to read as follows: 2 3. An out-of-state The contractor shall either file a surety 3 bond, as provided in section 91C.7 , with the department in the 4 amount of twenty-five fifty thousand dollars or shall provide a 5 statement to the department that the contractor is prequalified 6 to bid on projects for the department of transportation 7 pursuant to section 314.1 . 8 Sec. 2. Section 91C.7, Code 2025, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 7. A county, city, township, or school 11 district shall not require that a contractor file a bond other 12 than as expressly required by this Code. 13 Sec. 3. Section 91C.8, subsection 2, paragraph c, Code 2025, 14 is amended to read as follows: 15 c. The requirement that an out-of-state a contractor file a 16 bond with the department. 17 Sec. 4. Section 105.18, subsection 2, paragraph d, 18 subparagraph (1), Code 2025, is amended to read as follows: 19 (1) File an application and pay application fees as 20 established by the board and establish that the person meets 21 the minimum requirements adopted by the board. Through June 22 30, 2017, the application shall include the persons state 23 contractor registration number. After July 1, 2017, the 24 The application shall include proof of workers compensation 25 insurance coverage, proof of unemployment insurance compliance, 26 and , for out-of-state contractors, a bond as described in 27 chapter 91C . 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanations substance by the members of the general assembly. 31 This bill relates to the filing of bonds by construction 32 contractors. The bill requires all contractors, defined as 33 a person who engages in the business of construction and 34 earns at least $2,000 annually, to file a surety bond in the 35 -1- LSB 2245XC (3) 91 ss/ns 1/ 2
S.F. _____ amount of $50,000 with the department of inspections, appeals, 1 and licensing, unless the contractor is prequalified to bid 2 on projects for the department of transportation. The bill 3 prohibits a county, city, township, or school district from 4 requiring that a contractor file a bond other than as expressly 5 provided in the Iowa Code (see, e.g., Code sections 26.14, 6 26.15, 331.341, and 357.17; Code chapter 573). 7 -2- LSB 2245XC (3) 91 ss/ns 2/ 2