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Senate File 2230

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  90.1  PREVAILING WAGE RATE ACT.
  1  2    This chapter shall be known as the "Prevailing Wage Rate
  1  3 Act".
  1  4    Sec. 2.  NEW SECTION.  90.2  DEFINITIONS.
  1  5    As used in this chapter, unless the context otherwise
  1  6 requires:
  1  7    1.  "Contract for a public improvement" means a contract
  1  8 for the construction, alteration, repair, or remodeling,
  1  9 including painting and decorating, of a public building or
  1 10 structure or other public improvement of any type located in
  1 11 whole or in part in a city over twenty thousand in population
  1 12 or located in whole or in part in an unincorporated area of a
  1 13 county over twenty thousand in population and to which a
  1 14 governmental body is a party, but does not mean a contract for
  1 15 the construction, alteration, or repair of a farm-to-market
  1 16 road, as defined in section 306.3, to which a governmental
  1 17 body is a party.
  1 18    2.  "Contracting party" means contractor or subcontractor
  1 19 party to a contract for a public improvement.
  1 20    3.  "Governmental body" means the state of Iowa, an agency
  1 21 or department of the state, or the state board of regents.
  1 22    4.  "Prevailing wage rates" means wage rates for mechanics
  1 23 and skilled and unskilled laborers, who perform work pursuant
  1 24 to a contract for a public improvement, as determined by the
  1 25 labor commissioner under section 90.6.
  1 26    5.  "Wages" or "wage rates" means all of the following:
  1 27    a.  The basic hourly rate of pay.
  1 28    b.  The amount of all of the following:
  1 29    (1)  The rate of contribution irrevocably made by a
  1 30 contractor or subcontractor to a trustee or to a third person
  1 31 pursuant to a fund, plan, or program.
  1 32    (2)  The rate of costs to the contractor or subcontractor
  1 33 which may be reasonably anticipated in providing benefits to
  1 34 laborers and mechanics pursuant to an enforceable commitment
  1 35 to carry out a financially responsible plan or program which
  2  1 was communicated in writing to the laborers and mechanics
  2  2 affected, for medical or hospital care, pensions on retirement
  2  3 or death, compensation for injuries or illness resulting from
  2  4 occupational activity, or insurance to provide any of the
  2  5 foregoing, for unemployment benefits, life insurance,
  2  6 disability and sickness insurance or accident insurance, for
  2  7 vacation and holiday pay, for defraying costs of
  2  8 apprenticeship or other similar programs, or for other bona
  2  9 fide fringe benefits, but only where the contractor or
  2 10 subcontractor is not required by other federal, state, or
  2 11 local law to provide such benefits.
  2 12    Sec. 3.  NEW SECTION.  90.3  SPECIFICATIONS FOR CONTRACT.
  2 13    All specifications for a contract for a public improvement
  2 14 in excess of two thousand dollars and a contract for a public
  2 15 improvement in excess of two thousand dollars shall contain
  2 16 provisions that do all of the following:
  2 17    1.  Require the contracting party to pay the mechanics and
  2 18 laborers it employs to perform work on the project under the
  2 19 contract for a public improvement not less than the prevailing
  2 20 wage rates.
  2 21    2.  Require the contracting party to pay its mechanics and
  2 22 laborers no less frequently than once a week and without
  2 23 subsequent deduction or rebate on any account, the full
  2 24 amounts accrued at the time of payment, computed at wage rates
  2 25 not less than the prevailing wage rates, regardless of any
  2 26 contractual relationship alleged to exist between the
  2 27 contracting party and its mechanics and laborers.
  2 28    3.  Require the contracting party to post the prevailing
  2 29 wage rates in a prominent and easily accessible place at the
  2 30 site of work under the contract for a public improvement.
  2 31    4.  Require the contracting party to maintain records of
  2 32 the wages paid to its mechanics and laborers employed to
  2 33 perform work under the contract in such form as may be
  2 34 determined necessary by the labor commissioner.
  2 35    5.  Permit the governmental body to inspect the records
  3  1 required to be maintained by the contracting party under this
  3  2 section at all reasonable times and places upon demand by the
  3  3 governmental body.
  3  4    6.  a.  Permit the governmental body to withhold from the
  3  5 contracting party so much of accrued payments under the
  3  6 contract as the governmental body deems necessary to pay the
  3  7 mechanics and laborers employed by the contracting party to
  3  8 perform work under the contract the difference between the
  3  9 prevailing wage rates and the wages paid to them by the
  3 10 contracting party.
  3 11    b.  Allow the governmental body, upon not less than seven
  3 12 days written notice to the contracting party, to terminate the
  3 13 contract, in the event the governmental body determines the
  3 14 contracting party has failed or is failing to perform any of
  3 15 its duties under this section, and permit the governmental
  3 16 body to institute an action in the district court for damages
  3 17 reasonably related to the termination of the contract.
  3 18    Sec. 4.  NEW SECTION.  90.4  GOVERNMENTAL BODY POWERS AND
  3 19 DUTIES.
  3 20    1.  In addition to any other duties imposed by law
  3 21 concerning the letting of a bid for, entering into, and
  3 22 performing a contract for a public improvement, a governmental
  3 23 body shall do all of the following:
  3 24    a.  Ascertain the prevailing wage rates for any contract
  3 25 for a public improvement.
  3 26    b.  Comply with the provisions of section 90.3 in the
  3 27 letting of bids for a contract for a public improvement.
  3 28    c.  Refrain from entering into a contract for a public
  3 29 improvement which fails to contain the provisions set out in
  3 30 section 90.3.
  3 31    d.  Take all actions reasonably necessary to ensure the
  3 32 contracting party is in compliance with the terms and
  3 33 conditions of a contract for a public improvement, including
  3 34 inspecting the records maintained by the contracting party
  3 35 pursuant to a contract under section 90.3 and pursuant to
  4  1 section 90.5 and investigating complaints by any person that
  4  2 the contracting party is not in compliance with the terms and
  4  3 conditions of the contract for a public improvement.
  4  4    e.  Refrain from entering into a contract for a public
  4  5 improvement with a contracting party which has been found to
  4  6 be in violation of a contract for a public improvement as
  4  7 determined by the labor commissioner.
  4  8    f.  Report to the labor commissioner, in such form and
  4  9 manner as the labor commissioner determines, a violation of
  4 10 the provisions of this chapter by any contracting party which
  4 11 is a party to a contract for a public improvement with the
  4 12 governmental body.
  4 13    2.  A governmental body may do either of the following:
  4 14    a.  Require the contracting party to post a bond as deemed
  4 15 necessary by the governmental body to provide for the payment
  4 16 of the prevailing wage rates.
  4 17    b.  Take any action to enforce the terms and provisions of
  4 18 a contract for a public improvement.
  4 19    Sec. 5.  NEW SECTION.  90.5  DUTIES OF CONTRACTING PARTY.
  4 20    1.  A contracting party shall do all of the following:
  4 21    a.  At the time of submitting a bid for a contract for a
  4 22 public improvement, state to the governmental body the
  4 23 identity of all other persons, partnerships, corporations or
  4 24 other entities to which it is subcontracting any portion of
  4 25 the work to be performed under a contract for a public
  4 26 improvement.  No work under a contract for a public
  4 27 improvement shall be performed by any persons, partnerships,
  4 28 corporations, or other entities other than those stated to the
  4 29 governmental body in the contracting party's bid proposal,
  4 30 except in the event of exigent circumstances which require the
  4 31 substitution of a subcontractor, and which substitution has
  4 32 been approved in writing by the governmental body and by the
  4 33 labor commissioner.
  4 34    b.  Comply with the terms of the contract for a public
  4 35 improvement required by section 90.3.
  5  1    c.  Maintain and provide to the governmental body records
  5  2 showing payment of the prevailing wage rates to its mechanics
  5  3 and skilled and unskilled laborers under the contract for a
  5  4 public improvement in such form and manner as the labor
  5  5 commissioner shall determine.
  5  6    2.  A contracting party shall not attempt, either directly
  5  7 or indirectly, to avoid the requirements of this chapter.
  5  8    Sec. 6.  NEW SECTION.  90.6  LABOR COMMISSIONER DUTIES.
  5  9    The labor commissioner shall have the following duties and
  5 10 powers:
  5 11    1.  The labor commissioner shall adopt rules, at least
  5 12 annually, which establish the wage rates for mechanics and
  5 13 laborers of the type customarily employed to perform work
  5 14 under a contract for a public improvement, which prevail in
  5 15 each county and in each city over twenty thousand in
  5 16 population in the state among workers performing work similar
  5 17 in character to that performed on projects under contracts for
  5 18 a public improvement.  The wage rates so determined for each
  5 19 county and city by the labor commissioner shall be the
  5 20 prevailing wage rates for work to be performed by a
  5 21 contracting party under a contract for a public improvement
  5 22 within that county or city.
  5 23    2.  In determining and establishing the prevailing wage
  5 24 rates for each county and city, the labor commissioner shall
  5 25 consider prevailing wage rate data established by the United
  5 26 States secretary of labor pursuant to 40 U.S.C. }} 276a to
  5 27 276a-7, wage rates for mechanics and skilled and unskilled
  5 28 laborers for work performed within the county or city provided
  5 29 for in bona fide collective bargaining agreements, and any
  5 30 other reliable and relevant information concerning wages.  If
  5 31 the labor commissioner reasonably deems it necessary, the
  5 32 labor commissioner may conduct surveys within the county or
  5 33 city to acquire information regarding wages paid.
  5 34    3.  The labor commissioner shall publish annually all
  5 35 prevailing wage rates determined and established pursuant to
  6  1 rules adopted under subsection 1.
  6  2    4.  Upon request by a governmental body the labor
  6  3 commissioner shall determine the prevailing wage rates
  6  4 applicable to work to be performed pursuant to a contract for
  6  5 a public improvement.  The labor commissioner shall provide by
  6  6 rule an expedited procedure for resolution of disputes
  6  7 concerning the applicable prevailing wage rate for work to be
  6  8 performed pursuant to a contract for a public improvement.
  6  9 Such a dispute shall not be a contested case under chapter
  6 10 17A.
  6 11    5.  The labor commissioner shall by rule provide that if
  6 12 work pursuant to a contract for a public improvement is to be
  6 13 performed in more than a single county or a single city, the
  6 14 highest prevailing wage rates applicable shall apply to all
  6 15 work performed pursuant to the contract for a public
  6 16 improvement.
  6 17    6.  The labor commissioner shall adopt rules providing for
  6 18 the maintenance of wage records and the reports required by
  6 19 section 90.3, subsection 4, and section 90.5, subsection 1,
  6 20 paragraph "c".  At a minimum, the records required by section
  6 21 90.3, subsection 4, shall contain the name, address, and
  6 22 social security number of each mechanic and laborer, the
  6 23 number of hours worked each day, and the gross wages paid each
  6 24 day.  At a minimum, the reports required by section 90.5,
  6 25 subsection 1, paragraph "c", to be submitted to the
  6 26 governmental body shall contain the same information as
  6 27 contained in the records required under section 90.3,
  6 28 subsection 4, and shall be submitted at least once a week.
  6 29 The reports submitted to the governmental body as required by
  6 30 section 90.5, subsection 1, paragraph "c", shall be public
  6 31 records under chapter 22, and shall not be exempt under
  6 32 chapter 22.
  6 33    7.  The labor commissioner may enter upon the premises of
  6 34 any work site where work is being performed pursuant to a
  6 35 contract for a public improvement at any reasonable time and
  7  1 may interview any mechanic or skilled or unskilled laborer for
  7  2 the purposes of determining whether the contracting party is
  7  3 complying with the provisions of this chapter.  No worker
  7  4 shall be discharged or otherwise disciplined or discriminated
  7  5 against by the contracting party for providing information to
  7  6 the labor commissioner in such an interview.  Any worker
  7  7 discharged, disciplined, or otherwise discriminated against by
  7  8 the contracting party for providing information to the labor
  7  9 commissioner in such an interview shall have a right of action
  7 10 for reinstatement, back pay, and such other equitable relief
  7 11 as may be appropriate in the district court.
  7 12    8.  The labor commissioner shall maintain and publish, at
  7 13 least semiannually, a listing of all contracting parties which
  7 14 have been found by a governmental body, the labor
  7 15 commissioner, or a court to have violated this chapter.
  7 16    9.  The labor commissioner shall adopt, pursuant to chapter
  7 17 17A, rules and regulations necessary to perform duties or
  7 18 exercise powers under this chapter.
  7 19    Sec. 7.  NEW SECTION.  90.7  REMEDIES.
  7 20    In addition to any remedies otherwise available under law,
  7 21 the following remedies for violation of any provisions of this
  7 22 chapter shall be available:
  7 23    1.  A mechanic or laborer, who performed work pursuant to a
  7 24 contract for a public improvement but to whom the contracting
  7 25 party failed to pay the applicable prevailing wage rates, may
  7 26 maintain an action in the district court to recover the
  7 27 difference between the applicable prevailing wage rates and
  7 28 the wages the worker received from the contracting party.  The
  7 29 provisions of chapter 91A shall apply to the action.  However,
  7 30 the labor commissioner may institute an action for the
  7 31 collection of unpaid wages on behalf of all employees affected
  7 32 by the actions of the same contracting party on the same
  7 33 project without the necessity of obtaining a wage assignment
  7 34 from any of the affected employees.  The fact that the
  7 35 mechanic or laborer knowingly accepted payment of wages less
  8  1 than the applicable prevailing wage rate does not relieve the
  8  2 contracting party from liability.
  8  3    2.  The labor commissioner may maintain an action in
  8  4 district court against a contracting party for a knowing and
  8  5 intentional failure to pay the prevailing wage rates.  The
  8  6 district court shall provide for a penalty against the
  8  7 contracting party of five hundred dollars per day for each day
  8  8 it finds the contracting party has failed to pay the required
  8  9 prevailing wage rates.
  8 10    Sec. 8.  NEW SECTION.  90.8  PENALTY.
  8 11    Violation of any provisions of this chapter by a
  8 12 contracting party or its representative or by a representative
  8 13 or employee of a governmental body is a serious misdemeanor.
  8 14    Sec. 9.  NEW SECTION.  90.9  FEDERAL FUND PROJECTS.
  8 15    The provisions of this chapter shall not apply to any
  8 16 contract for a public improvement which is funded in whole or
  8 17 in part by federal funds and to which the provisions of 40
  8 18 U.S.C. }} 276a to 276a-7 apply to all portions of the work to
  8 19 be performed under the contract for a public improvement.  
  8 20                           EXPLANATION
  8 21    This bill incorporates the substantive portions of the
  8 22 federal Davis-Bacon Act, commonly known as the prevailing wage
  8 23 law, into the Code.  
  8 24 LSB 2148SS 77
  8 25 kh/cf/24
     

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