Bill Text: IA SSB1151 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act relating to bonds for construction contractors.
Spectrum: Committee Bill
Status: (Introduced) 2025-02-28 - Subcommittee Meeting: 03/03/2025 10:00AM Room 217 Conference Room. [SSB1151 Detail]
Download: Iowa-2025-SSB1151-Introduced.html
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
person’s
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
explanation’s
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-
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2245XC
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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
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LSB
2245XC
(3)
91
ss/ns
2/
2
