Bills › 91st General Assembly
Relating to bonds for general contractors
Sponsored by the Senate Local Government Committee
Where it is now
- Done: IntroducedFebruary 18, 2025
- Done: SubcommitteeFebruary 18, 2025
- Done: Senate committeeMarch 6, 2025
- Skipped: Passes the SenateContinued as SF 2376
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 2376 → Its progress continues under the new number. Go to SF 2376 What’s a funnel?
What’s in it
AI summary General contractors working in Iowa must get a $50,000 performance bond before they start any work. This rule applies to private projects but does not affect contractors working for the state or local governments. Local governments are also not allowed to require extra bonds for private work beyond what this law says.1
Read the official explanation
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.
Changed since by amendment S-5044; see Amendments.
Senate subcommittee
Named January 15, 2026. On January 22, 2026 it recommended passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Fiscal note
AI summary This bill requires in-state general contractors and subcontractors to obtain an annual performance bond or letter of credit of $50,000 filed with the state. It is estimated to increase costs to the Licensing and Regulation Fund by approximately $734,000 in fiscal year 2027 due to new staff positions and a one-time $10,000 programming cost. For fiscal year 2028 and beyond, the estimated annual cost to the fund is approximately $724,000.3
From the note: 5 additional FTE positions and a one-time programming cost of $10,000 to the ALIGN system. The costs for FY 2028 and thereafter will be approximately $724,000 annually. Source Department of Inspections, Appeals, and Licensing /s/ Jennifer Acton March 18, 2026 Doc ID 1602502 The Fiscal Note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code.
- Contractor Bond Requirements · March 18, 2026 · $724,000
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91st General Assembly