H.F. 2215 Section 1. Section 313.4, subsection 1, Code 2016, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . c. The commission, after consultation with 3 the department of workforce development and stakeholders, 4 including regional planning affiliations, metropolitan planning 5 organizations, the Iowa state association of counties, and the 6 Iowa league of cities, may periodically allocate road use tax 7 fund moneys from the primary road fund for the establishment, 8 construction, and maintenance of the secondary road system 9 and municipal street system in counties and cities where the 10 local average wage for a construction worker is lower than or 11 equal to the statewide average wage for a construction worker 12 in exchange for retaining all or a portion of federal aid road 13 funds that would otherwise be allocated to those counties and 14 cities. 15 Sec. 2. Section 313.4, Code 2016, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 5A. a. Subject to the requirements of this 18 chapter, and to the extent possible, the commission and the 19 department, in consultation with the department of workforce 20 development, shall prioritize the use of federal aid primary 21 and urban road moneys in the fund for primary road and bridge 22 construction projects in areas of the state where the local 23 average wage for a construction worker is higher than the 24 statewide average wage for a construction worker, and shall 25 prioritize the use of road use tax fund moneys in the fund for 26 primary road and bridge construction projects in areas of the 27 state where the local average wage for a construction worker 28 is lower than the statewide average wage for a construction 29 worker. 30 b. This subsection shall not apply to federal aid primary 31 and urban road moneys appropriated for a purpose inconsistent 32 with this subsection. 33 c. A project that receives additional federal aid primary 34 and urban road moneys from the fund pursuant to this subsection 35 -1- LSB 5267YH (5) 86 ns/sc 1/ 3

H.F. 2215 shall have its allocation of road use tax fund moneys from the 1 fund reduced by the same amount, and a project that receives 2 additional road use tax fund moneys from the fund pursuant 3 to this subsection shall have its allocation of federal aid 4 primary and urban road moneys from the fund reduced by the same 5 amount, such that no project receives more or less moneys as 6 a result of this subsection. This paragraph “c” shall not 7 apply to the receipt of more or less moneys to account for the 8 difference in the cost of labor due to the addition or absence 9 of wage requirements imposed as a condition of receiving the 10 moneys used for the project. 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill allows the state transportation commission 15 (STC), after consultation with the department of workforce 16 development (DWD) and stakeholders, including regional planning 17 affiliations, metropolitan planning organizations, the Iowa 18 state association of counties, and the Iowa league of cities, 19 to allocate moneys from the primary road fund (PRF) for the 20 establishment, construction, and maintenance of the secondary 21 road system and municipal street system in counties and cities 22 where the local average wage for a construction worker is lower 23 than or equal to the statewide average wage for a construction 24 worker in exchange for retaining all or a portion of federal 25 aid road funds that would otherwise be allocated to those 26 counties and cities. 27 In addition, the bill requires the STC and the department of 28 transportation, in consultation with the DWD, to prioritize the 29 use of federal aid primary and urban road moneys in the PRF for 30 primary road and bridge construction projects in areas of the 31 state where the local average wage for a construction worker 32 is higher than the statewide average wage for a construction 33 worker, and to prioritize the use of road use tax fund moneys 34 in the PRF for primary road and bridge construction projects 35 -2- LSB 5267YH (5) 86 ns/sc 2/ 3

H.F. 2215 in areas of the state where the local average wage for a 1 construction worker is lower than the statewide average wage 2 for a construction worker. 3 The bill does not apply to federal aid primary and urban 4 road moneys appropriated for a purpose inconsistent with the 5 provisions of the bill. 6 The bill requires a project that receives additional federal 7 aid primary and urban road moneys from the PRF to have its 8 allocation of road use tax fund moneys from the PRF reduced by 9 the same amount, and a project that receives additional road 10 use tax fund moneys from the PRF to have its allocation of 11 federal aid primary and urban road moneys from the PRF reduced 12 by the same amount, such that no project receives more or 13 less moneys as a result of the bill. This provision does not 14 apply to the receipt of more or less moneys to account for the 15 difference in the cost of labor due to the addition or absence 16 of wage requirements imposed as a condition of receiving the 17 moneys used for the project. 18 -3- LSB 5267YH (5) 86 ns/sc 3/ 3