California to Iowa: residential contractor license reciprocity

1. 1Application fee. Pay the application fee ($50). Contractor registration fee: $50 per year, or $150 for a three-year registration. The fee is not refundable. A self-employed contractor who does not pay more than $2,000 a year to employ other people and does not work with or for other contractors in the same phase of construction is exempt from the fee and files a fee exemption form instead, but still registers and must file a new exemption form at each renewal. Registration is renewed every year; DIAL sends a renewal form by mail or email the month before expiry, and a contractor who renews on time keeps the same registration number. Credit card and ACH payments are not accepted over the phone..
2. 2Surety bond. Post a surety bond ($25,000). Out-of-state contractor bond: a $25,000 surety bond, on DIAL's own bond form, from a surety company licensed to do business in Iowa, required of every contractor whose principal place of business is in another state. Keeping a branch office in Iowa does not avoid it, and subcontractors must post their own. The bond runs to the State of Iowa, is continuous until the surety cancels it on at least 30 days' written notice, and runs concurrently with the annual registration term. It guarantees payment of taxes, unemployment compensation contributions, penalties, interest and related fees owed to the state, and only the State of Iowa and its agencies may claim against it. In place of the bond, a contractor may file a letter showing that the Iowa Department of Transportation has prequalified it to bid on department projects. When work in Iowa ends, the surety asks DIAL in writing to release the bond..
3. 3Insurance. Carry the required insurance. Workers' compensation: a certificate of insurance from the carrier showing coverage and its effective dates and naming the Department of Inspections, Appeals, and Licensing as certificate holder. A self-insured employer files the commissioner of insurance's release under Iowa Code 87.11 instead, and a contractor with no employees files a statement that it is not required to carry coverage. The insurer must notify DIAL when a policy is cancelled, and the contractor must notify DIAL ten days before any change in coverage. Losing coverage is grounds for revoking the registration..
4. 4Business license. Obtain a business license. An Iowa unemployment insurance employer account number issued by the unemployment insurance services division of Iowa Workforce Development, obtained before applying. Every contractor needs one, in state or out of state, even with no employees. The application also requires a federal employer identification number for a business entity, or the owner's Social Security number for a sole proprietor, and the business's NAICS code or a description of its principal products and services..
5. 5Other. The registration application itself, filed online through DIAL's contractor registration portal or on the department's paper form, giving the business name, the mailing address of the principal place of business, the business telephone number, the type of entity, and the name, address, telephone number and position of every corporate officer or of each owner. DIAL issues a registration number within 30 days of a complete application, and no construction work may be performed in Iowa before the number is issued..
6. 6Other. Separate trade licensing where the work calls for it. Contractor registration does not authorize plumbing, mechanical, HVAC, refrigeration, sheet metal or hydronic work: those require a contractor license from the Iowa Plumbing and Mechanical Systems Board under Iowa Code chapter 105, applied for on a joint application that produces both the license and the contractor registration number, so a licensed plumbing or mechanical business does not file a separate registration application. Electrical work requires a license from the Iowa Electrical Examining Board under chapter 103. Asbestos, lead-based paint, elevator, boiler and alarm and fire protection work each carry their own DIAL credential as well..
7. 7Other. Local permits and any local requirements. A city or county building official may not issue a construction permit to a contractor who is required to hold a contractor registration number and does not have one, so the registration must be in hand before pulling permits. DIAL directs contractors to contact the city or county government for each project to find out what else that jurisdiction requires. Registration is also a precondition for being awarded a contract to perform work for the state or a state agency..

Published fees on this path total $50, excluding exam-vendor fees, bonds, and insurance.