Senate File 390 - Introduced SENATE FILE 390 BY MATHIS and ZUMBACH A BILL FOR An Act prohibiting public employers from seeking the criminal 1 record or criminal history from applicants for employment 2 under certain circumstances, establishing a criminal history 3 employment application task force, providing penalties, and 4 including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2597XS (3) 88 je/rn

S.F. 390 DIVISION I 1 PROHIBITED HIRING PRACTICES FOR PUBLIC EMPLOYERS —— CRIMINAL 2 RECORD OR CRIMINAL HISTORY 3 Section 1. Section 84A.5, subsection 4, Code 2019, is 4 amended to read as follows: 5 4. The division of labor services is responsible for the 6 administration of the laws of this state under chapters 88 , 7 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 8 and 94A , and sections 73A.21 and 85.68 . The executive head of 9 the division is the labor commissioner, appointed pursuant to 10 section 91.2 . 11 Sec. 2. Section 91.4, subsection 2, Code 2019, is amended 12 to read as follows: 13 2. The director of the department of workforce development, 14 in consultation with the labor commissioner, shall, at the 15 time provided by law, make an annual report to the governor 16 setting forth in appropriate form the business and expense of 17 the division of labor services for the preceding year, the 18 number of remedial actions taken under chapter 89A , the number 19 of disputes or violations processed by the division and the 20 disposition of the disputes or violations, and other matters 21 pertaining to the division which are of public interest, 22 together with recommendations for change or amendment of the 23 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 24 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 25 and the recommendations, if any, shall be transmitted by the 26 governor to the first general assembly in session after the 27 report is filed. 28 Sec. 3. NEW SECTION . 91F.1 Declarations and purpose. 29 1. The general assembly declares that: 30 a. Removing obstacles to employment for individuals with 31 criminal records provides economic and social opportunities to 32 a large group of individuals in Iowa, as well as increasing the 33 productivity, health, and safety of Iowa communities. 34 b. Employment advertisements in Iowa frequently include 35 -1- LSB 2597XS (3) 88 je/rn 1/ 8

S.F. 390 language regarding criminal records that is unrelated to the 1 employment vacancy and that either explicitly precludes or 2 strongly dissuades individuals from applying for employment for 3 which they are otherwise qualified. 4 c. Individuals with criminal records represent a group of 5 job seekers ready and able to enlarge and contribute to the 6 workforce. 7 d. Securing employment significantly reduces the risk of 8 recidivism for individuals with criminal records. 9 e. The opportunity for individuals with criminal records 10 to secure employment or to pursue, practice, or engage in 11 a meaningful and profitable trade, occupation, vocation, 12 profession, or business is essential to rehabilitation and 13 their resumption of the responsibilities of citizenship. 14 2. It is the purpose of this chapter to improve the economic 15 viability, health, and security of Iowa communities and to 16 assist individuals with criminal records to reintegrate into 17 the community, become productive members of the workforce, and 18 provide for their families and themselves. 19 Sec. 4. NEW SECTION . 91F.2 Definitions. 20 1. “Applicant” means a person pursuing employment with a 21 public employer. 22 2. “Commissioner” means the labor commissioner, appointed 23 pursuant to section 91.2, or the labor commissioner’s designee. 24 3. “Criminal record or criminal history” means information 25 collected or possessed by any criminal justice agency or 26 judicial system in this state or in another jurisdiction, 27 including a federal, military, tribal, or foreign jurisdiction, 28 concerning individuals which information includes identifiable 29 descriptions and notations of arrests, detentions, indictments, 30 or other formal criminal charges, and any disposition arising 31 therefrom, including acquittal, deferred judgment, sentencing, 32 correctional supervision, release, or conviction, and any 33 sentence arising from a verdict or plea of guilty or nolo 34 contendere, including a sentence of incarceration, a suspended 35 -2- LSB 2597XS (3) 88 je/rn 2/ 8

S.F. 390 sentence, a sentence of probation, or a sentence of conditional 1 discharge. 2 4. “Public employer” means the state of Iowa, its boards, 3 commissions, agencies, departments, and its political 4 subdivisions including school districts and other special 5 purpose districts. 6 Sec. 5. NEW SECTION . 91F.3 Prohibited hiring practices for 7 public employers —— exceptions. 8 1. A public employer shall not inquire about or require 9 disclosure of the criminal record or criminal history of an 10 applicant until the applicant’s interview is being conducted 11 or, if an interview will not be conducted, until after a 12 conditional offer of employment is made to the applicant by the 13 public employer. 14 2. Subsection 1 does not apply to the following positions 15 if a public employer establishes a separate application form 16 for such positions that includes the title and job description 17 of the position, the specific state or federal law or bonding 18 requirement that applies to the position, and the types of 19 criminal offenses that would preclude an applicant from being 20 hired for the position: 21 a. Positions where public employers are required to exclude 22 applicants with certain criminal convictions from employment 23 due to federal or state law. 24 b. Positions where a fidelity bond or an equivalent bond is 25 required and an applicant’s conviction of one or more specified 26 criminal offenses would disqualify the applicant from obtaining 27 such bond, in which case a public employer may include a 28 question or otherwise inquire whether the applicant has ever 29 been convicted of such specified criminal offenses. 30 3. Subsection 1 does not prohibit a public employer from 31 notifying applicants in writing of specific offenses that 32 will disqualify an applicant from employment in a particular 33 position as permitted by subsection 2. 34 Sec. 6. NEW SECTION . 91F.4 Powers and duties of the 35 -3- LSB 2597XS (3) 88 je/rn 3/ 8

S.F. 390 commissioner. 1 1. The commissioner may hold hearings and investigate 2 alleged violations of this chapter by a public employer. 3 2. The commissioner may assess and recover civil penalties 4 in accordance with sections 91F.5 and 91F.6. 5 3. The commissioner shall adopt rules pursuant to chapter 6 17A to administer this chapter. 7 Sec. 7. NEW SECTION . 91F.5 Civil penalties —— amount. 8 A public employer who violates the provisions of this 9 chapter shall be subject to a penalty as follows: 10 1. For a first violation, the commissioner shall issue a 11 written warning to the public employer that includes notice 12 regarding penalties for subsequent violations, and the public 13 employer shall have thirty days to remedy the violation. 14 2. For a second violation, or if a previous violation is not 15 remedied within thirty days of notice by the commissioner, the 16 commissioner may impose a civil penalty of up to five hundred 17 dollars. 18 3. For a third violation, or if a previous violation is not 19 remedied within sixty days of notice by the commissioner, the 20 commissioner may impose a civil penalty of up to one thousand 21 five hundred dollars. 22 4. For subsequent violations, or if a previous violation is 23 not remedied within ninety days of notice by the commissioner, 24 the commissioner may impose a civil penalty of up to one 25 thousand five hundred dollars for every thirty days that pass 26 thereafter without compliance. 27 Sec. 8. NEW SECTION . 91F.6 Civil penalties —— recovery. 28 1. The commissioner may propose that a public employer 29 be assessed a civil penalty as provided in section 91F.4 by 30 serving the public employer with notice of such proposal in the 31 same manner as an original notice is served under the rules of 32 civil procedure. Upon service of such notice, the proposed 33 assessment shall be treated as a contested case under chapter 34 17A. However, a public employer must request a hearing within 35 -4- LSB 2597XS (3) 88 je/rn 4/ 8

S.F. 390 thirty days of being served. 1 2. If a public employer does not request a hearing pursuant 2 to subsection 1 or if the commissioner determines, after an 3 appropriate hearing, that a public employer is in violation of 4 this chapter, the commissioner shall assess a civil penalty in 5 accordance with section 91F.5. 6 3. A public employer may seek judicial review of any 7 assessment made under subsection 2 by instituting proceedings 8 for judicial review pursuant to chapter 17A. However, such 9 proceedings must be instituted in the district court of the 10 county in which the violation or one of the violations occurred 11 and within thirty days of the day on which the public employer 12 was notified that an assessment has been made. 13 4. After the time for seeking judicial review has expired 14 or after all judicial review has been exhausted and the 15 commissioner’s assessment has been upheld, the commissioner 16 shall request the attorney general to recover the assessed 17 penalties in a civil action. 18 5. Civil penalties recovered pursuant to this section shall 19 be remitted by the commissioner to the treasurer of state for 20 deposit in the general fund of the state. 21 Sec. 9. NEW SECTION . 91F.7 Construction. 22 This chapter shall not be construed to require a public 23 employer to employ an individual with a criminal record. 24 Sec. 10. EFFECTIVE DATE. This division of this Act takes 25 effect January 1, 2020. 26 DIVISION II 27 CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE 28 Sec. 11. CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE 29 AND REPORT. 30 1. A criminal history employment application task force 31 is created. The task force shall consist of the following 32 members: 33 a. The labor commissioner or the labor commissioner’s 34 designee, who shall represent public sector employers. 35 -5- LSB 2597XS (3) 88 je/rn 5/ 8

S.F. 390 b. Two representatives of established civil rights 1 and civil liberties organizations appointed by the labor 2 commissioner. 3 c. Two representatives of public employers appointed by the 4 labor commissioner. 5 d. One representative of a statewide public sector labor 6 organization appointed by the labor commissioner. 7 2. The task force shall study appropriate voluntary 8 standards and procedures for evaluating employment applications 9 from an individual with a criminal history, including but not 10 limited to the nature of the crime, the age at which the crime 11 was committed, the nature of the duties of the position applied 12 for, and relevant evidence of the individual’s rehabilitation. 13 3. The labor services division of the department of 14 workforce development shall provide staffing services for the 15 task force. The labor commissioner or the labor commissioner’s 16 designee shall serve as the chairperson of the task force. 17 4. The members of the task force shall serve without 18 compensation and shall not be reimbursed for their expenses. 19 5. The task force shall submit a report regarding its 20 findings and recommendations to the governor and the general 21 assembly no later than January 1, 2020. The report shall 22 include a model pamphlet or other publication in both printed 23 and electronic form on evaluating employment applications from 24 individuals with criminal histories to be distributed to public 25 employers in Iowa in a manner similar to other information 26 distributed by the labor commissioner. 27 Sec. 12. EFFECTIVE DATE. This division of this Act, being 28 deemed of immediate importance, takes effect upon enactment. 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 DIVISION I —— PROHIBITED HIRING PRACTICES —— CRIMINAL RECORD 33 OR CRIMINAL HISTORY. Division I of this bill prohibits a 34 public employer from inquiring about or requiring disclosure 35 -6- LSB 2597XS (3) 88 je/rn 6/ 8

S.F. 390 of the criminal record or criminal history of an applicant for 1 employment until the applicant’s interview is being conducted. 2 If an interview for the position will not be conducted, 3 the prohibition applies until after a conditional offer of 4 employment is made to the applicant by the public employer. 5 The prohibition does not apply to certain positions listed 6 in the division if a public employer establishes a separate 7 application form for such positions that includes certain 8 information listed in the division. The division does not 9 prohibit a public employer from notifying applicants in writing 10 of specific offenses that will disqualify an applicant from 11 employment in a particular position as permitted by these 12 exceptions. 13 The division defines “applicant” as a person pursuing 14 employment with a public employer. The division defines 15 “public employer” as the state of Iowa, its boards, 16 commissions, agencies, departments, and its political 17 subdivisions including school districts and other special 18 purpose districts. 19 The division defines “criminal record or criminal history” 20 as information collected or possessed by any criminal 21 justice agency or judicial system in this state or in another 22 jurisdiction, including a federal, military, tribal, or 23 foreign jurisdiction, concerning individuals which information 24 includes identifiable descriptions and notations of arrests, 25 detentions, indictments, or other formal criminal charges, 26 and any disposition arising therefrom, including acquittal, 27 deferred judgment, sentencing, correctional supervision, 28 release, or conviction, and any sentence arising from a verdict 29 or plea of guilty or nolo contendere, including a sentence of 30 incarceration, a suspended sentence, a sentence of probation, 31 or a sentence of conditional discharge. 32 A public employer that violates the provisions of the 33 division is subject to civil penalties ranging from a written 34 warning for a first violation to up to $1,500 every 30 days for 35 -7- LSB 2597XS (3) 88 je/rn 7/ 8

S.F. 390 a fourth or subsequent violation not remedied within 90 days. 1 The labor commissioner may hold hearings and investigate 2 alleged violations of the division by a public employer, may 3 assess and recover civil penalties and seek attorney general 4 assistance in such recovery according to the procedural 5 provisions of the division, and shall adopt rules to administer 6 the division. 7 The division shall not be construed to require a public 8 employer to employ an individual with a criminal record. 9 The division takes effect January 1, 2020. 10 DIVISION II —— CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK 11 FORCE. Division II of the bill creates a criminal history 12 employment application task force. The task force shall study 13 appropriate voluntary standards and procedures for evaluating 14 employment applications from an individual with a criminal 15 history, including but not limited to the nature of the crime, 16 the age at which the crime was committed, the nature of the 17 duties of the position applied for, and relevant evidence of 18 the individual’s rehabilitation. 19 The division lists the membership of the task force. The 20 labor commissioner shall be the chairperson of the task force 21 and the labor services division of the department of workforce 22 development shall provide staffing services for the task force. 23 The task force shall submit a report regarding its findings 24 and recommendations to the governor and the general assembly no 25 later than January 1, 2020. The report shall include a model 26 pamphlet or other publication in both printed and electronic 27 form on evaluating employment applications from individuals 28 with criminal histories to be distributed to public employers 29 in Iowa in a manner similar to other information distributed by 30 the labor commissioner. 31 The division takes effect upon enactment. 32 -8- LSB 2597XS (3) 88 je/rn 8/ 8