Senate File 2364 H-8217 Amend Senate File 2364, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < Section 1. Section 84A.5, subsection 4, Code 2020, is 5 amended to read as follows: 6 4. The division of labor services is responsible for the 7 administration of the laws of this state under chapters 88 , 8 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 9 and 94A , and sections 73A.21 and 85.68 . The executive head of 10 the division is the labor commissioner, appointed pursuant to 11 section 91.2 . 12 Sec. 2. Section 91.4, subsection 2, Code 2020, is amended 13 to read as follows: 14 2. The director of the department of workforce development, 15 in consultation with the labor commissioner, shall, at the 16 time provided by law, make an annual report to the governor 17 setting forth in appropriate form the business and expense of 18 the division of labor services for the preceding year, the 19 number of remedial actions taken under chapter 89A , the number 20 of disputes or violations processed by the division and the 21 disposition of the disputes or violations, and other matters 22 pertaining to the division which are of public interest, 23 together with recommendations for change or amendment of the 24 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 25 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 26 and the recommendations, if any, shall be transmitted by the 27 governor to the first general assembly in session after the 28 report is filed. 29 Sec. 3. NEW SECTION . 91F.1 Short title. 30 This chapter shall be known and may be cited as the “Public 31 Improvement Quality Protection Act” . 32 Sec. 4. NEW SECTION . 91F.2 Public policy. 33 It is in the public interest that public improvements 34 are completed by the best means and highest quality of labor 35 -1- SF2364.4095 (1) 88 ec/rn 1/ 26 #1.

reasonably available, and that workers working on public 1 improvements be compensated according to the real value of the 2 services they perform. It is the policy of this state that the 3 wages of workers working on public improvements should be at 4 least equal to the prevailing wage rates paid for similar work 5 by responsible contractors in the community as a whole in order 6 to accomplish all of the following: 7 1. Protect workers and their contractors and subcontractors 8 from the effects of serious and unfair competition resulting 9 from wage levels detrimental to efficiency and well-being. 10 2. Ensure that contractors compete with one another 11 on the basis of the ability to perform work competently 12 and efficiently while maintaining community-established 13 compensation standards. 14 3. Recognize that local participation in public 15 improvements and family wage income and benefits are essential 16 to the protection of community standards. 17 4. Encourage training and education of workers to industry 18 skills standards. 19 5. Encourage contractors and subcontractors to use funds 20 allocated for employee fringe benefits for the actual purchase 21 of those benefits. 22 Sec. 5. NEW SECTION . 91F.3 Definitions. 23 As used in this chapter, unless the context otherwise 24 requires: 25 1. “Commissioner” means the labor commissioner appointed 26 pursuant to section 91.2. 27 2. “Contractor” or “subcontractor” means a person who 28 undertakes, offers to undertake, purports to have the capacity 29 to undertake, or submits a bid, individually or through others, 30 to engage in a public improvement. 31 3. “Custom fabrication” means the fabrication of plumbing, 32 heating, cooling, ventilation, architectural systems, 33 structural systems, exhaust duct systems, or mechanical 34 insulation. 35 -2- SF2364.4095 (1) 88 ec/rn 2/ 26

4. “Division” means the division of labor of the department 1 of workforce development. 2 5. a. “Fringe benefits” means the following for the 3 provision or purchase of any of the benefits enumerated in 4 paragraph “b” : 5 (1) The contribution irrevocably made by a contractor or 6 subcontractor to a trustee or to a third person pursuant to a 7 plan, fund, or program. 8 (2) The costs to the contractor or subcontractor which 9 may be reasonably anticipated in providing benefits to 10 workers pursuant to an enforceable commitment to carry out a 11 financially responsible plan or program, given in writing to 12 the workers affected. 13 b. (1) Medical or hospital care. 14 (2) Pensions or annuities on retirement or death. 15 (3) Supplemental unemployment benefits. 16 (4) Life insurance. 17 (5) Disability and sickness insurance. 18 (6) Accident insurance for nonwork-related accidents. 19 (7) Vacation or holiday pay. 20 (8) Defraying costs of apprenticeship programs approved by 21 and registered with the United States department of labor’s 22 office of apprenticeship. 23 6. “Interested party” means any of the following: 24 a. A contractor who submits a bid for the purpose of 25 securing the award of a contract for a public improvement. 26 b. A subcontractor of a contractor mentioned in a bid 27 referred to in paragraph “a” . 28 c. A worker employed by a contractor or subcontractor 29 described in either paragraph “a” or “b” . 30 d. A labor organization that represents workers engaged 31 in the same craft or classification as workers employed by a 32 contractor or subcontractor described in either paragraph “a” 33 or “b” and that exists, in whole or in part, for the purpose 34 of negotiating with employers concerning the wages, hours, or 35 -3- SF2364.4095 (1) 88 ec/rn 3/ 26

terms and conditions of employment of employees. 1 e. A joint labor-management committee established pursuant 2 to the federal Labor Management Cooperation Act of 1978, 29 3 U.S.C. §175a. 4 7. “Locality” means a county of this state. 5 8. “Maintenance work” means the repair of existing public 6 improvements when the size, type, or extent of the public 7 improvement is not changed or increased. 8 9. “Prevailing wage rate” means the hourly wage plus 9 fringe benefits that the commissioner determines prevails in 10 accordance with this chapter, including all of the following: 11 a. Apprentice ratios and the prevailing apprentice pay 12 levels for each craft, classification, or type of worker which 13 the commissioner determines prevails in accordance with section 14 91F.5. 15 b. A prevailing rate for overtime pay for work in excess 16 of the normal prevailing workday and for weekend overtime pay 17 for each craft, classification, or type of worker, including 18 apprentices. 19 c. Holiday pay for holidays that prevail in the locality in 20 which the work is being performed. 21 10. “Public body” means the state and any of its political 22 subdivisions, including but not limited to a county, city, 23 township, school district, state board of regents, and public 24 utility. For the purposes of this chapter, “public utility” 25 includes municipally owned utilities and municipally owned 26 waterworks. 27 11. a. “Public improvement” means any of the following that 28 meets the criteria set out in paragraphs “b” and “c” : 29 (1) Construction, alteration, reconstruction, repair, 30 rehabilitation, refinishing, refurbishing, remodeling, 31 renovation, custom fabricating, maintenance, landscaping, 32 improving, moving, wrecking, painting, decorating, or 33 demolishing of, or adding to or subtracting from any building, 34 structure, highway, road, street, bridge, alley, sewer, ditch, 35 -4- SF2364.4095 (1) 88 ec/rn 4/ 26

sewage disposal plant, waterworks, parking facility, railroad, 1 excavation or other structure, project, development, or 2 improvement, or any part thereof undertaken by a public body, 3 including any of the following related activities: 4 (a) The erection of scaffolding or other structures or 5 works. 6 (b) The maintenance, repair, assembly, or disassembly of 7 equipment. 8 (c) The testing of materials. 9 (d) The hauling of refuse from a site to an outside disposal 10 location. 11 (e) The cleaning of grounds or structures. 12 (f) The addition to or fabrication into any structure, 13 project, development, or improvement of any material or article 14 of merchandise undertaken by a public body. 15 (2) The preparation and removal of roadway construction 16 zones, lane closures, flagging, or traffic diversions 17 undertaken by a public body. 18 (3) The installation, repair, maintenance, or calibration 19 of monitoring equipment for underground storage tanks 20 undertaken by a public body. 21 (4) Work that is performed on any property or premises 22 dedicated exclusively or nearly so to the completion of a 23 public improvement, and transportation of supplies, material, 24 and equipment to or from the property or premises undertaken 25 by a public body. 26 b. Work on the public improvement is performed under public 27 supervision or direction, and the work is financed wholly or 28 in part from public funds, or if at the time of commencement 29 of the public improvement all of the following conditions with 30 respect to the public improvement are met: 31 (1) Not less than fifty-five percent of the structure is 32 leased by a public body, or is subject to an agreement to be 33 subsequently leased by a public body. 34 (2) The portion of the structure that is leased or subject 35 -5- SF2364.4095 (1) 88 ec/rn 5/ 26

to an agreement to be subsequently leased by a public body 1 measures more than twenty thousand square feet. 2 c. The public improvement has an estimated total cost that 3 exceeds twenty-five thousand dollars. 4 12. “Worker” means an individual who performs any 5 labor or service for a contractor or subcontractor on a 6 public improvement but does not include an individual when 7 transporting a seller, supplier, manufacturer, or processor of 8 materials or equipment. The individual is deemed an employee 9 of a contractor or subcontractor unless all of the following 10 apply: 11 a. The individual provides labor or services free from the 12 direction or control over the means and manner of providing the 13 labor or services, subject only to the right of the person for 14 whom the labor or services are provided to specify the desired 15 results. 16 b. The individual providing the labor or services is 17 responsible for obtaining business registrations or licenses 18 required by state law or local ordinance to provide the labor 19 or services. 20 c. The individual providing the labor or services furnishes 21 the tools and equipment necessary to provide the labor or 22 services. 23 d. The individual providing the labor or services has the 24 authority to hire and fire employees to perform the labor or 25 services. 26 e. Payment for the labor or services is made upon 27 completion of the performance of specific portions of a public 28 improvement, or is made on the basis of a periodic retainer. 29 f. The individual providing the labor or services represents 30 to the public that the labor or services are to be provided 31 by an independently established business. An individual is 32 engaged in an independently established business when four or 33 more of the following circumstances exist: 34 (1) Labor or services are primarily performed at a location 35 -6- SF2364.4095 (1) 88 ec/rn 6/ 26

separate from the individual’s residence or in a specified 1 portion of the residence that is set aside for performing labor 2 or services. 3 (2) Commercial advertising or business cards are purchased 4 by the individual, or the individual is a member of a trade or 5 professional association. 6 (3) Telephone or electronic mail listings used by the 7 individual for the labor or services are different from the 8 individual’s personal listings. 9 (4) Labor or services are performed only pursuant to a 10 written contract. 11 (5) Labor or services are performed for two or more persons 12 or entities within a period of one year. 13 (6) The individual assumes financial responsibility 14 for errors and omissions in the performance of the labor or 15 services as evidenced by insurance, performance bonds, and 16 warranties relating to the labor or services provided. 17 Sec. 6. NEW SECTION . 91F.4 Administration —— rules. 18 1. The commissioner and the division shall administer this 19 chapter. 20 2. The commissioner shall adopt rules pursuant to chapter 21 17A to administer this chapter. 22 Sec. 7. NEW SECTION . 91F.5 Determination of prevailing 23 wages. 24 1. The commissioner shall determine annually and publish, 25 on the first business day of July, the prevailing wage rates 26 by locality for each craft, classification, or type of worker 27 needed to perform work on public improvements. The rates shall 28 be conclusive for one year from the date of publication unless 29 superseded within the one year by a later publication of the 30 commissioner, or for a longer period as provided in subsection 31 5. 32 2. The commissioner shall announce all prevailing wage rate 33 determinations by locality and give notice by posting them 34 on the portion of the department of workforce development’s 35 -7- SF2364.4095 (1) 88 ec/rn 7/ 26

internet site related to the division. A printed version of 1 the prevailing wage rates for the state shall be available to 2 the public upon request to the division. 3 3. The public body awarding any contract for a public 4 improvement, or otherwise undertaking any public improvement, 5 shall obtain from the internet site the prevailing wage rate 6 in the locality in which work on the public improvement is 7 to be performed for each craft, classification, or type of 8 worker needed to perform work on the public improvement. 9 After a public improvement contract is awarded, or a public 10 improvement is otherwise undertaken, the prevailing wage 11 rate published by the commissioner and stated in the public 12 body’s public improvement procurement documents shall remain 13 in effect throughout the duration of the public improvement 14 unless superseded by a later determination and publication by 15 the commissioner, or unless multiyear prevailing wage rates 16 have been published by the commissioner at the time the public 17 improvement procurement documents were released. 18 4. a. In determining the annual prevailing wage rate 19 for any craft, classification, or type of worker, the 20 commissioner shall ascertain and consider the applicable 21 wage rates and fringe benefits established by collective 22 bargaining agreements, the prevailing wage rate determinations 23 that may exist for federal public improvements within the 24 locality, and other data obtained by the department during any 25 prevailing wage rate survey of contractors who participate in 26 an apprenticeship program approved by and registered with the 27 United States department of labor’s office of apprenticeship, 28 who provide health insurance and retirement benefits for their 29 workers, and who are registered with the division. Based 30 upon these considerations, the commissioner shall calculate 31 the prevailing wage rates based on the wage rate plus fringe 32 benefits most often occurring for each craft, classification, 33 or other type of worker within each locality. 34 b. The minimum annual prevailing wage rate determination 35 -8- SF2364.4095 (1) 88 ec/rn 8/ 26

established by the department shall not be lower than the 1 prevailing wage rate determination that may exist for federal 2 public improvements within the locality and in the nearest 3 labor market area. 4 c. None of the fringe benefits enumerated in this chapter 5 may be considered in the determination of prevailing wage 6 rates if the contractor or subcontractor is required by other 7 federal, state, or local law to provide such fringe benefits. 8 5. If the commissioner determines that the prevailing 9 wage rate for any craft, classification, or type of worker 10 is the rate established by a collective bargaining agreement 11 applicable in the locality, the commissioner may adopt that 12 rate by reference and that determination shall be effective 13 for the life of the agreement or until the commissioner adopts 14 another rate. 15 6. a. At any time within fifteen days after the division 16 has published on the department of workforce development’s 17 internet site the annual prevailing wage rates for each 18 classification, craft, or other type of worker in the locality, 19 any interested person affected may object to the determination 20 or the part of the determination as the interested person 21 may deem objectionable by filing a written notice with the 22 commissioner by restricted certified mail as defined in 23 section 618.15. When objecting to a prevailing wage rate 24 determination, the interested person shall submit, as a 25 part of the written notice, the prevailing wage rate the 26 interested person believes to be the correct prevailing wage 27 rate determination, stating the specific grounds to support 28 that position. Upon receipt of the notice of objection, the 29 commissioner shall reconsider the determination and shall 30 affirm or modify the determination and reply in writing by 31 restricted certified mail to the interested person within 32 fifteen days from the date of the receipt of the notice of 33 objection. Any modification to the prevailing wage rate 34 determination shall be effective on the date the modification 35 -9- SF2364.4095 (1) 88 ec/rn 9/ 26

is published by the commissioner. 1 b. If the commissioner declines to modify the determination, 2 within ten days upon receiving receipt of the commissioner’s 3 decision, the interested person affected may submit in writing 4 the objection to the division by restricted certified mail, 5 stating the specified grounds of the objection. The department 6 of inspections and appeals shall be notified of the objection 7 and set a date for a hearing before an administrative law judge 8 on the objection, after giving notice by restricted certified 9 mail to the interested person and the division at least ten 10 days before the date of the hearing of the time and place of 11 the hearing. The hearing shall be held within forty-five days 12 after the objection is filed, and shall not be postponed or 13 reset for a later date except upon the consent, in writing, of 14 the interested person and the division. 15 7. The party requesting a hearing shall have the burden of 16 establishing that the annual prevailing wage rate determination 17 for that locality was not determined in accordance with this 18 chapter. If the party requesting a hearing under this section 19 objects to the commissioner’s failure to include a craft, 20 classification, or type of worker within the annual prevailing 21 wage rate determination in the locality, the objector shall 22 have the burden of establishing that there is no existing 23 prevailing wage rate classification for the particular craft, 24 classification, or type of worker in any of the localities 25 under consideration. 26 8. The administrative law judge may in the administrative 27 law judge’s discretion hear each written objection filed 28 separately or consolidate for hearing any one or more written 29 objections filed with the division. At the hearing, the 30 division shall introduce into evidence the investigation it 31 instituted which formed the basis of its determination, and the 32 division or any interested objectors may introduce evidence 33 that is material to the determination. The administrative 34 law judge shall rule upon each written objection and make a 35 -10- SF2364.4095 (1) 88 ec/rn 10/ 26

final determination, as the administrative law judge believes 1 the evidence warrants, and promptly serve a copy of the final 2 determination by personal service or restricted certified mail 3 on all parties to the proceedings. The administrative law 4 judge shall render a final determination within thirty days 5 after the conclusion of the hearing. 6 9. If proceedings to review judicially the final 7 determination of the administrative law judge are not 8 instituted as provided in this section, the determination 9 shall be final and binding. The provisions of section 17A.19 10 shall apply to and govern all proceedings. Appeals from all 11 final orders and judgments entered by the court in review of 12 the final determination of the administrative law judge may be 13 taken by any party to the action. In all reviews or appeals 14 under this chapter, the attorney general shall represent the 15 division and defend its determination. 16 10. This section does not give reason or provide cause for 17 an injunction to halt or delay any public improvement. 18 Sec. 8. NEW SECTION . 91F.6 Payment of prevailing wages 19 required. 20 1. Contractors and subcontractors engaged in a public 21 improvement shall pay not less than the current specified 22 prevailing wage rates to all of their workers engaged in the 23 public improvement. However, this chapter does not prohibit 24 the payment of more than the prevailing wage rate to any 25 workers engaged in a public improvement. 26 2. All contractors and subcontractors required to pay the 27 prevailing wage rate under this chapter shall pay the wages 28 in legal tender, without any deduction for food, sleeping 29 accommodations, transportation, use of tools or safety 30 equipment, vehicle or equipment rental, or any other thing of 31 any kind or description. 32 Sec. 9. NEW SECTION . 91F.7 Requirements for public 33 improvements. 34 1. The public body awarding a contract for a public 35 -11- SF2364.4095 (1) 88 ec/rn 11/ 26

improvement or otherwise undertaking a public improvement shall 1 specify in the call for bids for the contract that this chapter 2 applies to the public improvement. 3 2. If a public improvement requires the payment of 4 prevailing wage rates, the public body shall require the 5 contractor to execute a written instrument that not less 6 than the prevailing wage rate shall be paid to all workers 7 performing work on the public improvement. The written 8 instrument shall also contain a provision that if it is found 9 that any of the contractor’s workers engaged in the public 10 improvement have been paid at a wage rate less than the 11 prevailing wage rate required by this chapter, the public body 12 may terminate the contractor’s right to proceed with the work 13 and the contractor and its sureties shall be liable to the 14 public body for any excess costs occasioned by the failure to 15 pay the prevailing wage rate. The written instrument shall 16 have attached a list of the specified prevailing wage rates 17 for all crafts, classifications, or types of workers in the 18 locality for each worker needed to be included in the contract 19 for the public improvement. 20 3. If a contract is let for a public improvement requiring 21 the payment of prevailing wage rates, the public body 22 awarding the contract shall cause to be inserted in the public 23 improvement specifications and contract a stipulation that 24 not less than the prevailing wage rate shall be paid to all 25 workers performing work under the contract. The contract 26 shall also contain a provision to the effect that if it is 27 found that any of the contractor’s workers engaged in the 28 public improvement have been paid at a wage rate less than the 29 prevailing wage rate required by this chapter, the public body 30 may terminate the contractor’s right to proceed with the work 31 and the contractor and its sureties shall be liable to the 32 public body for any excess costs occasioned by the failure to 33 pay the prevailing wage rate. All bid specifications shall 34 list the specified prevailing wage rates for all crafts, 35 -12- SF2364.4095 (1) 88 ec/rn 12/ 26

classifications, or types of workers in the locality for each 1 worker needed to be included in the contract. 2 4. If a public improvement requires the payment of 3 prevailing wage rates, the contractor shall require any 4 subcontractors engaged by the contractor on the public 5 improvement to execute a written instrument that not less 6 than the prevailing wage rates shall be paid to all workers 7 performing work on the public improvement. The written 8 instrument shall also contain a provision that if it is 9 found that any of the subcontractor’s workers engaged in the 10 public improvement have been paid at a wage rate less than the 11 prevailing wage rate required by this chapter, the public body 12 may terminate the subcontractor’s right to proceed with the 13 work and the subcontractor and its sureties shall be liable to 14 the public body for any excess costs occasioned by the failure 15 to pay the prevailing wage rate. The written instrument shall 16 have attached a list of the specified prevailing wage rates 17 for all crafts, classifications, or types of workers in the 18 locality for each worker needed to be included in the contract. 19 5. If a subcontract is let for a public improvement 20 requiring the payment of the prevailing wage rate, the 21 contractor to whom the contract is awarded shall insert 22 into the subcontract and into the public improvement project 23 specifications for each subcontract a written stipulation that 24 not less than the prevailing wage rate shall be paid to all 25 workers performing work under the subcontract. A subcontractor 26 shall insert into each lower-tiered subcontract a stipulation 27 that not less than the prevailing wage rate shall be paid 28 to all workers performing work under the subcontract. The 29 subcontract shall also contain a provision that if it is 30 found that any of the subcontractor’s workers engaged in the 31 public improvement have been paid at a wage rate less than the 32 prevailing wage rate required by this chapter, the public body 33 may terminate the subcontractor’s right to proceed with the 34 work and the subcontractor and its sureties shall be liable to 35 -13- SF2364.4095 (1) 88 ec/rn 13/ 26

the public body for any excess costs occasioned by the failure 1 to pay the prevailing wage rate. All bid specifications shall 2 list the specified prevailing wage rates for all crafts, 3 classifications, or types of workers in the locality for each 4 worker needed to be included in the subcontract. 5 6. A contractor or subcontractor engaging in a public 6 improvement shall submit a performance bond in an amount 7 determined by the public body which bond shall include a 8 provision that will guarantee the payment of the prevailing 9 wage rates as required by the contract. 10 7. Before final payment is made by or on behalf of a public 11 body of any sum or sums due on a public improvement, the 12 treasurer of the public body or other officer or person charged 13 with the custody and disbursement of the funds of the public 14 body shall require the contractor and subcontractor to file a 15 written statement with the public body, in a form satisfactory 16 to the division, certifying to the amounts then due and owing 17 from the contractor and subcontractor to any and all workers 18 for wages due on account of the public improvement, setting 19 forth the names of the persons whose wages are unpaid and 20 the amount due to each respectively. The statement shall be 21 verified by the oath of the contractor or subcontractor, as the 22 case may be, that the contractor or subcontractor has read the 23 statement certified by the contractor or subcontractor, knows 24 the contents, and that the statement is true in accordance with 25 the contractor’s or subcontractor’s own knowledge. However, 26 this chapter shall not impair the right of a contractor to 27 receive final payment from a public body because of the failure 28 of a subcontractor to comply with provisions of this chapter. 29 The treasurer of the public body or other officer or person 30 charged with the custody and disbursement of the funds of the 31 public body shall withhold the amount, if any, listed on the 32 verified statement filed pursuant to this section for the 33 benefit of the worker whose wages are unpaid as shown by the 34 verified statement filed by the contractor or subcontractor, 35 -14- SF2364.4095 (1) 88 ec/rn 14/ 26

and the public body shall pay directly to any worker the amount 1 shown by the statement to be due to the worker for the wages. 2 Payment shall discharge the obligation of the contractor or 3 subcontractor to the person receiving the payment to the extent 4 of the amount of the payment. 5 8. The public body awarding a contract for a public 6 improvement or otherwise undertaking a public improvement shall 7 notify the commissioner in writing, on a form prescribed by 8 the commissioner, if a contract subject to the provisions of 9 this chapter has been awarded. The public body shall file 10 the notification with the commissioner within thirty days 11 after the contract is awarded or before commencement of the 12 public improvement, and shall include a list of all first-tier 13 subcontractors. 14 Sec. 10. NEW SECTION . 91F.8 Federal public improvements 15 —— not applicable. 16 The provisions of this chapter shall not be applicable 17 to public improvements financed entirely by federal funds 18 which require a prevailing wage rate determination by the 19 United States department of labor. However, unless a federal 20 provision applies, if a public improvement is financed in part 21 by a public body and in part by federal funds, the higher of the 22 prevailing wage rates shall prevail for the public improvement. 23 Sec. 11. NEW SECTION . 91F.9 Records required. 24 1. While participating in a public improvement, the 25 contractor and each subcontractor shall do all of the 26 following: 27 a. Make and keep, for a period of not less than three years, 28 accurate records of all workers employed by the contractor or 29 subcontractor on the public improvement. The records shall 30 include each worker’s name, address, telephone number when 31 available, social security number, trade classification, the 32 hourly wages paid in each pay period, the number of hours 33 worked each day, and the starting and ending times of work each 34 day. 35 -15- SF2364.4095 (1) 88 ec/rn 15/ 26

b. Submit weekly a certified payroll to the public body 1 in charge of the public improvement. The certified payroll 2 shall consist of a complete copy of the records identified in 3 paragraph “a” . The certified payroll shall be accompanied by a 4 statement signed by the contractor or subcontractor which avers 5 that the records are true and accurate and the hourly wages 6 paid to each worker are not less than the prevailing wage rate 7 required by this chapter. 8 2. The public body in charge of the public improvement 9 shall keep the records submitted in accordance with subsection 10 1, paragraph “b” , for a period of not less than three years. 11 The records shall be considered public records and be made 12 available in accordance with chapter 22. Personal information 13 submitted in accordance with subsection 1, paragraph “a” , 14 including names, addresses, social security numbers, telephone 15 numbers, and other identifying information shall remain 16 confidential and shall not be made public. 17 3. The contractor and each subcontractor shall make 18 available for inspection the records identified in subsection 19 1, paragraph “a” , to the public body in charge of the public 20 improvement, its officers and agents, and to the division. 21 4. For the purpose of verifying the accuracy of the records 22 submitted pursuant to this section, the contractor and each 23 subcontractor shall make its workers available at the site of 24 the public improvement for interview by the public body in 25 charge of the public improvement, its officers and agents, and 26 the division. 27 5. Contractors and subcontractors performing work on public 28 improvements subject to this chapter shall post the prevailing 29 wage rates for each craft, classification, or type of workers 30 involved in the public improvement in a prominent and easily 31 accessible place at the site of the public improvement or at 32 the place or places used by the contractor or subcontractor to 33 pay workers their wages. 34 Sec. 12. NEW SECTION . 91F.10 Powers of commissioner. 35 -16- SF2364.4095 (1) 88 ec/rn 16/ 26

The commissioner shall do all of the following: 1 1. Inquire diligently about any complaint of a violation of 2 this chapter, institute actions for penalties prescribed, and 3 enforce generally the provisions of this chapter. 4 2. Sue for injunctive relief against the awarding of a 5 contract, the undertaking of a public improvement, or the 6 continuation of a public improvement when the prevailing wage 7 rate requirements of this chapter have not been met. 8 3. Investigate and ascertain the wages of workers engaged in 9 any public improvement in this state. 10 4. a. Enter and inspect the place of business or employment 11 of a contractor, subcontractor, or workers employed on a public 12 improvement in this state, for the purpose of examining and 13 inspecting books, registers, payrolls, and other records of a 14 contractor or subcontractor that in any way relate to or have a 15 bearing upon the question of wages, hours, and other conditions 16 of employment of workers covered under this chapter. 17 b. Copy the books, registers, payrolls, and other 18 records as the commissioner or the commissioner’s authorized 19 representative deems necessary or appropriate. 20 c. Question the workers for the purpose of ascertaining 21 whether the provisions of this chapter have been and are being 22 complied with. 23 d. Administer oaths, take or cause to be taken depositions 24 of witnesses, and require by subpoena the attendance and 25 testimony of witnesses and the production of all books, 26 registers, payrolls, and other evidence relative to the matter 27 under investigation or hearing. 28 5. Require from a contractor or subcontractor full and 29 correct statements in writing, including sworn statements, 30 with respect to wages, hours, names, addresses, and other 31 information pertaining to its workers and their employment, 32 as the commissioner or the commissioner’s authorized 33 representative may deem necessary or appropriate. 34 6. Require a contractor or subcontractor to file, within 35 -17- SF2364.4095 (1) 88 ec/rn 17/ 26

ten days of receipt of a request, any records enumerated in 1 subsection 4, sworn as to their validity and accuracy as 2 required by subsection 5. If the contractor or subcontractor 3 fails to provide the requested records within ten days, the 4 commissioner may direct, within fifteen days after the end 5 of the ten-day period, that the fiscal or financial officer 6 charged with the custody and disbursements of the funds of the 7 public body, which contracted for construction of the public 8 improvement or undertook the public improvement, to immediately 9 withhold from payment to the contractor or subcontractor 10 up to twenty-five percent of the amount to be paid to the 11 contractor or subcontractor under the terms of the contract 12 or written instrument under which the public improvement is 13 being performed. The amount withheld shall be immediately 14 released upon receipt by the public body of a notice from 15 the commissioner indicating that the request for records as 16 required by this section has been satisfied. 17 7. If a contractor or subcontractor fails to provide 18 requested records in accordance with subsection 6 within ten 19 days, direct, within fifteen days after the end of the ten-day 20 period, the fiscal or financial officer charged with the 21 custody and disbursements of the funds of the public body, 22 which contracted for construction of the public improvement or 23 undertook the public improvement, to pay directly to workers 24 employed by the contractor or subcontractor from the amount 25 withheld from the contractor or subcontractor pursuant to 26 subsection 6 any prevailing wage rates found to be due and 27 payable to the workers. 28 8. Contract with a person registered as a public accountant 29 under chapter 542 to conduct an audit of a contractor, 30 subcontractor, or public body. 31 Sec. 13. NEW SECTION . 91F.11 Notice of violations. 32 1. For purposes of this section: 33 a. “Accurate records” means the payroll records required 34 to be submitted to the public body in charge of the public 35 -18- SF2364.4095 (1) 88 ec/rn 18/ 26

improvement by section 91F.9. “Accurate records” also means the 1 hourly rate of contribution and costs paid for fringe benefits 2 and whether the contributions and costs of the fringe benefits 3 were paid into a fund or paid directly to the worker. 4 b. “Decision” means a determination by the division that a 5 single violation of this chapter has occurred, warranting the 6 commissioner to issue a notice of violation to a contractor or 7 subcontractor. 8 c. “Notice of second violation” is a formal written notice 9 issued by the division advising a contractor or subcontractor 10 that a second or subsequent violation has occurred within three 11 years from the date of the notice of a first violation. 12 d. “Notice of violation” means a formal written notice 13 issued by the division to a contractor or subcontractor 14 that the division has made a decision that the contractor or 15 subcontractor has violated this chapter. 16 e. “Violation” means that a contractor or subcontractor has 17 done one of the following: 18 (1) Failed or refused to pay the prevailing wage rate to one 19 or more workers as required by this chapter. 20 (2) Failed to keep accurate records as required by this 21 chapter. 22 (3) Failed to produce for the division accurate records or 23 produced records not in compliance with this chapter. 24 (4) Refused to submit records or testimony to the division 25 in response to a subpoena issued in accordance with this 26 chapter. 27 (5) Refused to comply with the certified payroll provision 28 of section 91F.9. 29 (6) Refused the division access, at any reasonable hour at 30 a location within the state, to inspect the contractor’s or 31 subcontractor’s records as required by this chapter. 32 (7) Failed to insert into each subcontract or lower-tiered 33 subcontract and into the public improvement specifications 34 for each subcontract or lower-tiered subcontract or provide a 35 -19- SF2364.4095 (1) 88 ec/rn 19/ 26