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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
explanation’s
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
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LSB
2245SV
(2)
91
ss/ns
1/
1