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SF574 • 2026

A bill for an act relating to retention of fees for public improvement contracts. (Formerly SF 431 .) Effective date: 07/01/2025.

A bill for an act relating to retention of fees for public improvement contracts. (Formerly SF 431 .) Effective date: 07/01/2025.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
COMMITTEE ON COMMERCE
Last action
2025-04-25
Official status
Signed by Governor . S.J. 917 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to retention of fees for public improvement contracts. (Formerly SF 431 .) Effective date: 07/01/2025.

A bill for an act relating to retention of fees for public improvement contracts.

What This Bill Does

  • A bill for an act relating to retention of fees for public improvement contracts.
  • (Formerly SF 431 .) Effective date: 07/01/2025.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-04-25 Iowa Legislature

    Signed by Governor . S.J. 917 .

  2. 2025-04-25 Iowa Legislature

    Reported correctly enrolled, signed by President and Speaker, and sent to Governor. S.J. 917 .

  3. 2025-04-24 Iowa Legislature

    Explanation of vote. H.J. 1070 .

  4. 2025-04-15 Iowa Legislature

    Message from House. S.J. 799 .

  5. 2025-04-15 Iowa Legislature

    Immediate message. H.J. 945 .

  6. 2025-04-15 Iowa Legislature

    Passed House , yeas 90, nays 4. H.J. 940 .

  7. 2025-04-10 Iowa Legislature

    Placed on calendar under unfinished business. H.J. 928 .

  8. 2025-04-03 Iowa Legislature

    Placed on calendar. H.J. 898 .

  9. 2025-04-02 Iowa Legislature

    Committee vote: Yeas, 24. Nays, 0. Excused, 1. H.J. 898 .

  10. 2025-04-02 Iowa Legislature

    Committee report, recommending passage. H.J. 897 .

  11. 2025-04-01 Iowa Legislature

    Subcommittee recommends passage.

  12. 2025-03-31 Iowa Legislature

    Subcommittee Meeting: 04/01/2025 12:00PM RM 102.

  13. 2025-03-31 Iowa Legislature

    Subcommittee: Johnson, C., Behn and Judge. H.J. 874 .

  14. 2025-03-26 Iowa Legislature

    Read first time, referred to Ways and Means. H.J. 817 .

  15. 2025-03-25 Iowa Legislature

    Message from Senate. H.J. 809 .

  16. 2025-03-25 Iowa Legislature

    Immediate message. S.J. 636 .

  17. 2025-03-25 Iowa Legislature

    Passed Senate , yeas 45, nays 4. S.J. 633 .

  18. 2025-03-25 Iowa Legislature

    Amendment S-3048 filed, adopted. S.J. 633 .

  19. 2025-03-10 Iowa Legislature

    Committee report, approving bill. S.J. 469 .

  20. 2025-03-10 Iowa Legislature

    Introduced, placed on calendar. S.J. 460 .

Official Summary Text

A bill for an act relating to retention of fees for public improvement contracts. (Formerly SF 431 .) Effective date: 07/01/2025.

Current Bill Text

Read the full stored bill text 
STATE OF IOWA
KIM REYNOLDS
GOVERNOR
April 25, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 574, an Act relating to retention of fees for public improvement contracts.
The above Senate File is hereby approved on this date.
Sin ely,
olds
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 FAX 515.725.3527 WWW.GOVERNOR.IOWA.GOV
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Senate File 574
AN ACT
RELATING TO RETENTION OF FEES FOR PUBLIC IMPROVEMENT CONTRACTS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 573.12, subsection 1, paragraphs a and b,
Code 2025, are amended to read as follows:
a. Payments made under contracts for the construction of
public improvements, unless provided otherwise by law, shall
be made on the basis of monthly estimates of labor performed
and material delivered, as determined by the project architect
or engineer. The public corporation shall retain from each
monthly payment not more than fivc three percent of that amount
which that is determined to be due according to the estimate
of the architect or engineer.
b. The contractor may retain from each payment to a
subcontractor not more than the lesser of fivc three percent
or the amount specified in the contract between the contractor
and the subcontractor.
Sec. 2. Section 573.13, Code 2025, is amended to read as
follows:
573.13 Inviolability and disposition of fund.
A public corporation shall not be permitted to plead
noncompliance with section 573.12 and the retained percentage
of the contract price, which in no case shall be more than five
three percent, constitutes a fund for the payment of claims
for materials furnished and labor performed on the improvement
President of the Senate
Senate File 574, p. 2
and shall be held and disposed of by the public corporation as
provided in this chapter.
PAT GRASSL
Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 574, Ninety-first General Assembly.
W. 6 A vo'le•i`••15of• W. CHARLES S THSON
Secre ry of t - Senate
I
KI RE NOLDS
Governor