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IA SF576
IA SF576A bill for an act relating to bonds for general contractors.(Formerly SSB 1151; See SF 2376.)
summary
Introduced
03/10/2025
03/10/2025
In Committee
06/16/2025
06/16/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill requires a general contractor, defined as a person who does work or furnishes materials by contract, express or implied, with an owner, to obtain a performance bond payable to the person for whom the general contractor is performing work in the amount of $50,000 prior to performing any work in this state. The bill does not apply to a general contractor performing work for the state or a political subdivision of the state, including a general contractor subject to state agency competitive bidding requirements. The bill prohibits a county, city, township, or school district from requiring that a general contractor file a bond for private work other than as required by the bill.
AI Summary
This bill requires general contractors (individuals or companies who contract to complete construction or renovation work) to obtain a performance bond of $50,000 before beginning work in the state of Iowa. A performance bond is a type of financial guarantee that protects the person hiring the contractor by ensuring that if the contractor fails to complete the work as agreed, the bond will provide financial compensation. The bill specifically exempts general contractors working for state or local government entities, including those subject to state agency competitive bidding rules. Additionally, the bill prevents counties, cities, townships, and school districts from mandating bonds for private construction work beyond the $50,000 bond requirement. The bond must be executed by a surety company authorized to do business in Iowa, which means a verified insurance or bonding company legally permitted to operate in the state. This legislation aims to provide a baseline level of financial protection for individuals hiring general contractors by ensuring they have a minimum level of financial backing to complete contracted work.
Committee Categories
Government Affairs
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Local Government (Senate)
Last Action
Committee report approving bill, renumbered as SF 2376. S.J. 320. (on 02/18/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF576 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF576.html |
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