Senate File 533 S-3325 Amend Senate File 533 as follows: 1 1. Page 33, after line 17 by inserting: 2 < DIVISION ___ 3 PUBLIC IMPROVEMENT CONTRACTS 4 Sec. ___. Section 73A.21, Code 2011, is amended to 5 read as follows: 6 73A.21 Reciprocal resident bidder and resident labor 7 force preference by state, its agencies, and political 8 subdivisions —— penalties . 9 1. For purposes of this section : 10 a. “Commissioner” means the labor commissioner 11 appointed pursuant to section 91.2, or the labor 12 commissioner’s designee. 13 b. “Division” means the division of labor of the 14 department of workforce development. 15 c. “Nonresident bidder” means a person or entity who 16 does not meet the definition of a resident bidder. 17 d. “Public body” means the state and any of its 18 political subdivisions, including a school district, 19 public utility, or the state board of regents. 20 a. e. “Public improvement” means public 21 improvements as defined in section 73A.1 a building or 22 other construction work to be paid for in whole or in 23 part by the use of funds of the state, its agencies, 24 and any of its political subdivisions and includes road 25 construction, reconstruction, and maintenance projects. 26 f. “Public utility” includes municipally owned 27 utilities and municipally owned waterworks. 28 b. g. “Resident bidder” means a person or entity 29 authorized to transact business in this state and 30 having a place of business for transacting business 31 within the state at which it is conducting and has 32 conducted business for at least six months three years 33 prior to the date of the first advertisement for the 34 public improvement and in the case of a corporation, 35 having at least fifty percent of its common stock 36 owned by residents of this state . If another state 37 or foreign country has a more stringent definition of 38 a resident bidder, the more stringent definition is 39 applicable as to bidders from that state or foreign 40 country. 41 h. “Resident labor force preference” means a 42 requirement in which all or a portion of a labor force 43 working on a public improvement is a resident of a 44 particular state or country. 45 2. Notwithstanding this chapter , chapter 73 , 46 chapter 309 , chapter 310 , chapter 331 , or chapter 47 384 , when a contract for a public improvement is 48 to be awarded to the lowest responsible bidder, a 49 resident bidder shall be allowed a preference as 50 -1- SF533.3054 (2) 84 tm/jp 1/ 4 #1.

against a nonresident bidder from a state or foreign 1 country which if that state or foreign country gives 2 or requires a any preference to bidders from that 3 state or foreign country , including but not limited 4 to any preference to bidders, the imposition of any 5 type of labor force preference, or any other form of 6 preferential treatment to bidders or laborers from that 7 state or foreign country . The preference is allowed 8 shall be equal to the preference given or required by 9 the state or foreign country in which the nonresident 10 bidder is a resident. In the instance of a resident 11 labor force preference, a nonresident bidder shall 12 apply the same resident labor force preference to a 13 public improvement in this state as would be required 14 in the construction of a public improvement by the 15 state or foreign country in which the nonresident 16 bidder is a resident. 17 3. This section applies to the state, its agencies, 18 and any political subdivisions of the state. 19 4. 3. If it is determined that this may cause 20 denial of federal funds which would otherwise be 21 available, or would otherwise be inconsistent with 22 requirements of any federal law or regulation , this 23 section shall be suspended, but only to the extent 24 necessary to prevent denial of the funds or to 25 eliminate the inconsistency with federal requirements. 26 4. The public body involved in a public improvement 27 shall require a nonresident bidder to specify on all 28 project bid specifications and contract documents 29 whether any preference as described in subsection 2 is 30 in effect in the nonresident bidder’s state or country 31 of domicile at the time of a bid submittal. 32 5. The commissioner and the division shall 33 administer and enforce this section, and the 34 commissioner shall adopt rules for the administration 35 and enforcement of this section as provided in section 36 91.6. 37 6. The commissioner shall have the following powers 38 and duties for the purposes of this section: 39 a. The commissioner may hold hearings and 40 investigate charges of violations of this section. 41 b. The commissioner may, consistent with due 42 process of law, enter any place of employment to 43 inspect records concerning labor force residency, to 44 question an employer or employee, and to investigate 45 such facts, conditions, or matters as are deemed 46 appropriate in determining whether any person 47 has violated the provisions of this section. The 48 commissioner shall only make such an entry in response 49 to a written complaint. 50 -2- SF533.3054 (2) 84 tm/jp 2/ 4

c. The commissioner shall develop a written 1 complaint form applicable to this section and make it 2 available in division offices and on the department of 3 workforce development’s internet site. 4 d. The commissioner may sue for injunctive relief 5 against the awarding of a contract, the undertaking of 6 a public improvement, or the continuation of a public 7 improvement in response to a violation of this section. 8 e. The commissioner may investigate and ascertain 9 the residency of a worker engaged in any public 10 improvement in this state. 11 f. The commissioner may administer oaths, take 12 or cause to be taken deposition of witnesses, and 13 require by subpoena the attendance and testimony of 14 witnesses and the production of all books, registers, 15 payrolls, and other evidence relevant to a matter under 16 investigation or hearing. 17 g. The commissioner shall require a contractor or 18 subcontractor to file, within ten days of receipt of a 19 request, any records enumerated in subsection 8. If 20 the contractor or subcontractor fails to provide the 21 requested records within ten days, the commissioner 22 may direct, within fifteen days after the end of the 23 ten-day period, that the fiscal or financial office 24 charged with the custody and disbursement of funds of 25 the public body that contracted for construction of the 26 public improvement or undertook the public improvement, 27 to immediately withhold from payment to the contractor 28 or subcontractor up to twenty-five percent of the 29 amount to be paid to the contractor or subcontractor 30 under the terms of the contract or written instrument 31 under which the public improvement is being performed. 32 The amount withheld shall be immediately released 33 upon receipt by the public body of a notice from the 34 commissioner indicating that the request for records as 35 required by this section has been satisfied. 36 7. While participating in a public improvement, 37 a nonresident bidder domiciled in a state or country 38 that has established a resident labor force preference 39 shall make and keep, for a period of not less than 40 three years, accurate records of all workers employed 41 by the contractor or subcontractor on the public 42 improvement. The records shall include each worker’s 43 name, address, telephone number when available, social 44 security number, trade classification, and the starting 45 and ending time of employment. 46 8. Any person or entity that violates the 47 provisions of this section is subject to a civil 48 penalty in an amount not to exceed one thousand dollars 49 for each violation found in a first investigation by 50 -3- SF533.3054 (2) 84 tm/jp 3/ 4

the division, not to exceed five thousand dollars 1 for each violation found in a second investigation 2 by the division, and not to exceed fifteen thousand 3 dollars for a third or subsequent violation found 4 in any subsequent investigation by the division. 5 Each violation of this section for each worker and 6 for each day the violation continues constitutes a 7 separate and distinct violation. In determining the 8 amount of the penalty, the division shall consider the 9 appropriateness of the penalty to the person or entity 10 charged, upon determination of the gravity of the 11 violations. The collection of these penalties shall 12 be enforced in a civil action brought by the attorney 13 general on behalf of the division. 14 9. A party seeking review of the division’s 15 determination pursuant to this section may file a 16 written request for an informal conference. The 17 request must be received by the division within fifteen 18 days after the date of issuance of the division’s 19 determination. During the conference, the party 20 seeking review may present written or oral information 21 and arguments as to why the division’s determination 22 should be amended or vacated. The division shall 23 consider the information and arguments presented and 24 issue a written decision advising all parties of the 25 outcome of the conference. 26 Sec. ___. Section 331.341, subsection 2, Code 2011, 27 is amended to read as follows: 28 2. The board shall give preference to Iowa products 29 and labor in accordance with chapter 73 and shall 30 comply with bid and contract requirements in chapter 31 26 . 32 Sec. ___. REPEAL. Sections 73.3 and 73.4, Code 33 2011, are repealed. 34 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 35 of this Act, being deemed of immediate importance, 36 takes effect upon enactment. 37 Sec. ___. APPLICABILITY. This division of this 38 Act applies to all public improvement projects, and to 39 public improvement contracts entered into on or after 40 July 1, 2011. > 41 2. By renumbering as necessary. 42 ______________________________ BILL DIX -4- SF533.3054 (2) 84 tm/jp 4/ 4 #2.