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House File 521

Partial Bill History

Bill Text

PAG LIN
  1  1                                    HOUSE FILE 521     
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE LICENSURE AND OPERATION OF EMPLOYMENT
  1  5    AGENCIES AND PROVIDING A PENALTY. 
  1  6 
  1  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1  8 
  1  9    Section 1.  NEW SECTION.  94A.1  DEFINITIONS.
  1 10    As used in this chapter, unless the context otherwise
  1 11 requires:
  1 12    1.  "Applicant" means a person applying for a private
  1 13 employment agency license.
  1 14    2.  "Commissioner" means the labor commissioner, appointed
  1 15 pursuant to section 91.2, or the labor commissioner's
  1 16 designee.
  1 17    3.  "Employee" means a person who seeks employment or who
  1 18 obtains employment through an employment agency.
  1 19    4.  "Employer" means a person who seeks one or more
  1 20 employees or who obtains one or more employees.
  1 21    5.  "Employment agency" means a person who brings together
  1 22 those desiring to employ and those desiring employment and who
  1 23 receives a fee, privilege, or other consideration directly or
  1 24 indirectly from an employee for the service.  "Employment
  1 25 agency" does not include furnishing or procuring theatrical,
  1 26 stage, or platform attractions or amusement enterprises.
  1 27    Sec. 2.  NEW SECTION.  94A.2  LICENSING.
  1 28    1.  An employment agency shall obtain a license from the
  1 29 commissioner prior to transacting any business.  Licenses
  1 30 expire on June 30 of each year.
  1 31    2.  A license application shall be in the form prescribed
  1 32 by the commissioner and shall be accompanied by all of the
  1 33 following:
  1 34    a.  A surety company bond in the sum of thirty thousand
  1 35 dollars, to be approved by the commissioner and conditioned to
  2  1 pay any damages that may accrue to any person due to a
  2  2 wrongful act or violation of law on the part of the applicant
  2  3 in the conduct of business.
  2  4    b.  The schedule of fees to be charged by the employment
  2  5 agency.
  2  6    c.  All contract forms to be signed by an employee.
  2  7    d.  An application fee of seventy-five dollars.
  2  8    3.  The commissioner shall grant or deny a license within
  2  9 thirty days from the filing date of a completed application.
  2 10    4.  The commissioner may revoke, suspend, or annul a
  2 11 license in accordance with chapter 17A upon good cause.
  2 12    Sec. 3.  NEW SECTION.  94A.3  GENERAL REQUIREMENTS.
  2 13    Each employment agency shall do all of the following:
  2 14    1.  Keep an employee record, which shall include the name
  2 15 of each employee signing a contract or agreement, the name and
  2 16 address of the employer, if employment is found, and the fee
  2 17 charged, paid, or refunded.  Each record shall be maintained
  2 18 for at least two years.
  2 19    2.  Prior to referral to an employer, provide an employee
  2 20 with a copy of the contract or agreement, which specifies the
  2 21 fee or consideration to be paid by the employee.
  2 22    Sec. 4.  NEW SECTION.  94A.4  PROHIBITIONS.
  2 23    1.  A person shall not require an employee to pay a fee as
  2 24 a condition of application with an employer or an employment
  2 25 agency.
  2 26    2.  An employee shall not be required to pay a fee to an
  2 27 employer as a condition of hire.
  2 28    3.  An employer shall not require an employee to reimburse
  2 29 the employer for a fee the employer paid to an employment
  2 30 agency or other person or entity when the employee was hired.
  2 31    4.  An employment agency shall not do any of the following:
  2 32    a.  Send an employee or an application of an employee to an
  2 33 employer who has not applied to the employment agency for help
  2 34 or labor.
  2 35    b.  Through false notice, advertisement, or other means,
  3  1 fraudulently promise or deceive a person seeking help or
  3  2 employment with regard to the service to be rendered by the
  3  3 employment agency.
  3  4    c.  Divide a fee received from an employee with an employer
  3  5 or any member of an employer's staff.  The division of fees
  3  6 between one or more employment agencies that provided services
  3  7 is not prohibited.
  3  8    d.  Charge an employee any fee greater than the fee
  3  9 schedule on file with the commissioner without prior consent
  3 10 of the commissioner.
  3 11    e.  Charge a fee greater than fifteen percent of the
  3 12 employee's annual gross earnings.
  3 13    f.  Require an employee to pay a fee in advance of
  3 14 earnings.  If an employee wishes to pay a fee in advance of
  3 15 earnings, the contract between the employee and employment
  3 16 agency shall state that any advance payment by the employee is
  3 17 voluntary.  If an employee works less than one year at the
  3 18 referred employment, the employment agency shall refund any
  3 19 amount in excess of fifteen percent of the employee's gross
  3 20 earnings from the referred employment.
  3 21    Sec. 5.  NEW SECTION.  94A.5  POWERS AND DUTIES OF THE
  3 22 COMMISSIONER.
  3 23    1.  At any time, the commissioner may examine the records,
  3 24 books, and any papers relating to the conduct and operation of
  3 25 an employment agency.
  3 26    2.  The commissioner shall adopt rules pursuant to chapter
  3 27 17A to administer this chapter.
  3 28    Sec. 6.  NEW SECTION.  94A.6  VIOLATIONS.
  3 29    1.  A person who violates a provision of this chapter or
  3 30 who refuses the commissioner access to records, books, and
  3 31 papers pursuant to an examination under section 94A.5 shall be
  3 32 guilty of a simple misdemeanor.
  3 33    2.  If a person violates a provision of this chapter or
  3 34 refuses the commissioner access to records, books, and papers
  3 35 pursuant to an examination under section 94A.5, the
  4  1 commissioner shall assess a civil penalty against the person
  4  2 in an amount not greater than two thousand dollars.
  4  3    Sec. 7.  Section 84A.5, subsection 3, Code 1999, is amended
  4  4 to read as follows:
  4  5    3.  The division of labor services is responsible for the
  4  6 administration of the laws of this state relating to
  4  7 occupational health and safety, the inspection of amusement
  4  8 rides, the removal and encapsulation of asbestos, the
  4  9 inspection of boilers, wage payment collection, registration
  4 10 of construction contractors, the minimum wage, non-English
  4 11 speaking employees, child labor, employment agency licensing,
  4 12 boxing and wrestling, inspection of elevators, and hazardous
  4 13 chemical risks under chapters 88, 88A, 88B, 89, 89A, 89B, 90A,
  4 14 91, 91A, 91C, 91D, 91E, 92, 94, and 95 94A.  The executive
  4 15 head of the division is the labor commissioner, appointed
  4 16 pursuant to section 91.2.
  4 17    Sec. 8.  Section 91.4, subsection 5, Code 1999, is amended
  4 18 to read as follows:
  4 19    5.  The director of the department of workforce
  4 20 development, in consultation with the labor commissioner,
  4 21 shall, at the time provided by law, make an annual report to
  4 22 the governor setting forth in appropriate form the business
  4 23 and expense of the division of labor services for the
  4 24 preceding year, the number of disputes or violations processed
  4 25 by the division and the disposition of the disputes or
  4 26 violations, and other matters pertaining to the division which
  4 27 are of public interest, together with recommendations for
  4 28 change or amendment of the laws in this chapter and chapters
  4 29 88, 88A, 88B, 89, 89A, 89B, 90A, 91A, 91C, 91D, 91E, 92, 94,
  4 30 and 95 94A, and the recommendations, if any, shall be
  4 31 transmitted by the governor to the first general assembly in
  4 32 session after the report is filed.
  4 33    Sec. 9.  Chapters 94 and 95, Code 1999, are repealed.  
  4 34 
  4 35 
  5  1                                                             
  5  2                               BRENT SIEGRIST
  5  3                               Speaker of the House
  5  4 
  5  5 
  5  6                                                             
  5  7                               MARY E. KRAMER
  5  8                               President of the Senate
  5  9 
  5 10    I hereby certify that this bill originated in the House and
  5 11 is known as House File 521, Seventy-eighth General Assembly.
  5 12 
  5 13 
  5 14                                                             
  5 15                               ELIZABETH ISAACSON
  5 16                               Chief Clerk of the House
  5 17 Approved                , 1999
  5 18 
  5 19 
  5 20                               
  5 21 THOMAS J. VILSACK
  5 22 Governor
     

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