Bills › 91st General Assembly
Relating to bonds for construction contractors
Topics:Business & economyProfessional licensingCities & counties
Where it is now
- Done: IntroducedFebruary 18, 2025
- Done: SubcommitteeFebruary 18, 2025
- Done: Senate committeeMarch 6, 2025
- Skipped: Passes the SenateContinued as SF 576
- Next: House committee
- Next: Passes the House
- Next: To the Governor
- Next: Signed into law
Became SF 576 → Its progress continues under the new number. Go to SF 576 What’s a funnel?
What’s in it
AI summary Construction contractors who earn at least $2,000 a year must file a $50,000 bond with the state unless they are already approved to work for the Department of Transportation. Local governments and school districts are not allowed to require any different or extra bonds from these contractors.1
Read the official explanation
This bill relates to the filing of bonds by construction contractors. The bill requires all contractors, defined as a person who engages in the business of construction and earns at least $2,000 annually, to file a surety bond in the S.F. _____ amount of $50,000 with the department of inspections, appeals, and licensing, unless the contractor is prequalified to bid on projects for the department of transportation. The bill prohibits a county, city, township, or school district from requiring that a contractor file a bond other than as expressly provided in the Iowa Code (see, e.g., Code sections 26.14, 26.15, 331.341, and 357.17; Code chapter 573).
Changed since by amendment S-5044; see Amendments.
Senate subcommittee
Named January 13, 2026. It hasn’t reported yet.
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