House File 2355 H-8231 Amend the amendment, H-8225, to House File 2355, as follows: 1 1. By striking page 1, line 1, through page 5, line 29, and 2 inserting: 3 < Amend House File 2355 as follows: 4 1. By striking everything after the enacting clause and 5 inserting: 6 < DIVISION I 7 ECONOMIC DEVELOPMENT LEGISLATIVE FINDINGS 8 Section 1. Section 96.2, Code 2022, is amended to read as 9 follows: 10 96.2 Guide for interpretation. 11 1. As a guide to the interpretation and application of 12 this chapter , the public policy of this state is declared to 13 be as follows: Economic insecurity due to unemployment is 14 a serious menace to the health, morals, and welfare of the 15 people of this state. Involuntary unemployment is therefore 16 a subject of general interest and concern which requires 17 appropriate action by the legislature to prevent its spread 18 and to lighten its burden which now so often falls with 19 crushing force upon the unemployed worker and the worker’s 20 family. The achievement of social security requires protection 21 against this greatest hazard of our economic life. This can 22 be provided by encouraging employers to provide more stable 23 employment and by the systematic accumulation of funds during 24 periods of employment to provide benefits for periods of 25 unemployment, thus maintaining purchasing power and limiting 26 the serious social consequences of poor relief assistance. 27 The legislature, therefore, declares that in its considered 28 judgment the public good and the general welfare of the 29 citizens of this state require the enactment of this measure, 30 under the police powers of the state, for the compulsory 31 setting aside of unemployment reserves to be used for the 32 benefit of persons unemployed through no fault of their own. 33 2. It is the finding of the legislature that true economic 34 development can only be achieved when workers are given the 35 -1- H 8225.3988 (2) 89 dg/rn 1/ 9 #1.

respect they deserve. Economic development must include all 1 residents of this state, including men and women, people of all 2 gender identities, minorities, and immigrants. The legislature 3 further finds that economic development should include but not 4 be limited to residents of this state being paid a living wage, 5 this state being a welcoming place for immigrants, child care 6 and housing being readily affordable and available, and public 7 workers having collective bargaining rights. 8 DIVISION II 9 PROHIBITED HIRING PRACTICES —— CRIMINAL RECORD OR CRIMINAL 10 HISTORY 11 Sec. 2. Section 84A.5, subsection 4, Code 2022, is amended 12 to read as follows: 13 4. The division of labor services is responsible for the 14 administration of the laws of this state under chapters 88 , 15 88A , 88B , 89 , 89A , 89B , 90A , 91 , 91A , 91C , 91D , 91E , 91F, 92 , 16 and 94A , and sections 73A.21 and 85.68 . The executive head of 17 the division is the labor commissioner, appointed pursuant to 18 section 91.2 . 19 Sec. 3. Section 91.4, subsection 2, Code 2022, is amended 20 to read as follows: 21 2. The director of the department of workforce development, 22 in consultation with the labor commissioner, shall, at the 23 time provided by law, make an annual report to the governor 24 setting forth in appropriate form the business and expense of 25 the division of labor services for the preceding year, the 26 number of remedial actions taken under chapter 89A , the number 27 of disputes or violations processed by the division and the 28 disposition of the disputes or violations, and other matters 29 pertaining to the division which are of public interest, 30 together with recommendations for change or amendment of the 31 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 32 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 33 and the recommendations, if any, shall be transmitted by the 34 governor to the first general assembly in session after the 35 -2- H 8225.3988 (2) 89 dg/rn 2/ 9

report is filed. 1 Sec. 4. NEW SECTION . 91F.1 Declarations and purpose. 2 1. The general assembly declares that: 3 a. Removing obstacles to employment for individuals with 4 criminal records provides economic and social opportunities to 5 a large group of individuals in Iowa, as well as increasing the 6 productivity, health, and safety of Iowa communities. 7 b. Employment advertisements in Iowa frequently include 8 language regarding criminal records that is unrelated to the 9 employment vacancy and that either explicitly precludes or 10 strongly dissuades individuals from applying for employment for 11 which they are otherwise qualified. 12 c. Individuals with criminal records represent a group of 13 job seekers ready and able to enlarge and contribute to the 14 workforce. 15 d. Securing employment significantly reduces the risk of 16 recidivism for individuals with criminal records. 17 e. The opportunity for individuals with criminal records 18 to secure employment or to pursue, practice, or engage in 19 a meaningful and profitable trade, occupation, vocation, 20 profession, or business is essential to rehabilitation and 21 their resumption of the responsibilities of citizenship. 22 2. It is the purpose of this chapter to improve the economic 23 viability, health, and security of Iowa communities and to 24 assist individuals with criminal records to reintegrate into 25 the community, become productive members of the workforce, and 26 provide for their families and themselves. 27 Sec. 5. NEW SECTION . 91F.2 Definitions. 28 1. “Applicant” means a person pursuing employment with an 29 employer or with or through an employment agency. 30 2. “Commissioner” means the labor commissioner, appointed 31 pursuant to section 91.2, or the labor commissioner’s designee. 32 3. “Criminal record or criminal history” means information 33 collected or possessed by any criminal justice agency or 34 judicial system in this state or in another jurisdiction, 35 -3- H 8225.3988 (2) 89 dg/rn 3/ 9

including a federal, military, tribal, or foreign jurisdiction, 1 concerning individuals which information includes identifiable 2 descriptions and notations of arrests, detentions, indictments, 3 or other formal criminal charges, and any disposition arising 4 therefrom, including acquittal, deferred judgment, sentencing, 5 correctional supervision, release, or conviction, and any 6 sentence arising from a verdict or plea of guilty or nolo 7 contendere, including a sentence of incarceration, a suspended 8 sentence, a sentence of probation, or a sentence of conditional 9 discharge. 10 4. “Employer” means a person who has four or more employees 11 in the current or preceding calendar year and includes an agent 12 of such a person. For purposes of this chapter, individuals 13 who are members of the employer’s family shall not be counted 14 as employees. 15 5. “Employment agency” means a person who, with or without 16 compensation, regularly brings together those desiring to 17 employ and those desiring employment and includes an agent of 18 such a person. 19 Sec. 6. NEW SECTION . 91F.3 Prohibited hiring practices —— 20 exceptions. 21 1. An employer or employment agency shall not inquire 22 about or require disclosure of the criminal record or criminal 23 history of an applicant until the applicant’s interview is 24 being conducted or, if an interview will not be conducted, 25 until after a conditional offer of employment is made to the 26 applicant by the employer or employment agency. 27 2. Subsection 1 does not apply to the following positions 28 if an employer or employment agency establishes a separate 29 application form for such positions that includes the title and 30 job description of the position, the specific state or federal 31 law or bonding requirement that applies to the position, and 32 the types of criminal offenses that would preclude an applicant 33 from being hired for the position: 34 a. Positions where employers are required to exclude 35 -4- H 8225.3988 (2) 89 dg/rn 4/ 9

applicants with certain criminal convictions from employment 1 due to federal or state law. 2 b. Positions where a fidelity bond or an equivalent bond is 3 required and an applicant’s conviction of one or more specified 4 criminal offenses would disqualify the applicant from obtaining 5 such bond, in which case an employer may include a question or 6 otherwise inquire whether the applicant has ever been convicted 7 of such specified criminal offenses. 8 3. Subsection 1 does not prohibit an employer or employment 9 agency from notifying applicants in writing of specific 10 offenses that will disqualify an applicant from employment in a 11 particular position as permitted by subsection 2. 12 4. Subsection 1 does not apply to the following positions: 13 a. Positions where an employee will work within the 14 residence of the employer if the employer or members of the 15 employer’s family reside therein during such employment. 16 b. Positions where an employee will have entry access to a 17 personal residence or an occupied unit in a multiple housing 18 structure. 19 c. Positions where an employee will render personal service 20 to the person of the employer or members of the employer’s 21 family. 22 5. An employment agency shall not be liable for a violation 23 of subsection 1 if the employment agency can demonstrate by 24 clear and convincing evidence that such violation was caused by 25 the employment agency’s good-faith reliance on an affirmative 26 representation by an employer that one of the exceptions listed 27 in subsection 2 or 4 applied to the position in question. The 28 employer shall be liable for any such violations. 29 Sec. 7. NEW SECTION . 91F.4 Powers and duties of the 30 commissioner. 31 1. The commissioner may hold hearings and investigate 32 alleged violations of this chapter by an employer or employment 33 agency. 34 2. The commissioner may assess and recover civil penalties 35 -5- H 8225.3988 (2) 89 dg/rn 5/ 9

in accordance with sections 91F.5 and 91F.6. 1 3. The commissioner shall adopt rules pursuant to chapter 2 17A to administer this chapter. 3 Sec. 8. NEW SECTION . 91F.5 Civil penalties —— amount. 4 An employer or employment agency who violates the provisions 5 of this chapter shall be subject to a penalty as follows: 6 1. For a first violation, the commissioner shall issue 7 a written warning to the employer or employment agency that 8 includes notice regarding penalties for subsequent violations 9 and the employer or employment agency shall have thirty days 10 to remedy the violation. 11 2. For a second violation, or if a previous violation is not 12 remedied within thirty days of notice by the commissioner, the 13 commissioner may impose a civil penalty of up to five hundred 14 dollars. 15 3. For a third violation, or if a previous violation is not 16 remedied within sixty days of notice by the commissioner, the 17 commissioner may impose a civil penalty of up to one thousand 18 five hundred dollars. 19 4. For subsequent violations, or if a previous violation is 20 not remedied within ninety days of notice by the commissioner, 21 the commissioner may impose a civil penalty of up to one 22 thousand five hundred dollars for every thirty days that pass 23 thereafter without compliance. 24 Sec. 9. NEW SECTION . 91F.6 Civil penalties —— recovery. 25 1. The commissioner may propose that an employer be assessed 26 a civil penalty as provided in section 91F.4 by serving the 27 employer with notice of such proposal in the same manner as an 28 original notice is served under the rules of civil procedure. 29 Upon service of such notice, the proposed assessment shall be 30 treated as a contested case under chapter 17A. However, an 31 employer or employment agency must request a hearing within 32 thirty days of being served. 33 2. If an employer or employment agency does not request 34 a hearing pursuant to subsection 1 or if the commissioner 35 -6- H 8225.3988 (2) 89 dg/rn 6/ 9

determines, after an appropriate hearing, that an employer 1 or employment agency is in violation of this chapter, the 2 commissioner shall assess a civil penalty in accordance with 3 section 91F.5. 4 3. An employer or employment agency may seek judicial 5 review of any assessment made under subsection 2 by instituting 6 proceedings for judicial review pursuant to chapter 17A. 7 However, such proceedings must be instituted in the district 8 court of the county in which the violation or one of the 9 violations occurred and within thirty days of the day on which 10 the employer was notified that an assessment has been made. 11 4. After the time for seeking judicial review has expired 12 or after all judicial review has been exhausted and the 13 commissioner’s assessment has been upheld, the commissioner 14 shall request the attorney general to recover the assessed 15 penalties in a civil action. 16 5. Civil penalties recovered pursuant to this section shall 17 be remitted by the commissioner to the treasurer of state for 18 deposit in the general fund of the state. 19 Sec. 10. NEW SECTION . 91F.7 Construction. 20 This chapter shall not be construed to require an employer to 21 employ an individual with a criminal record. 22 Sec. 11. EFFECTIVE DATE. This division of this Act takes 23 effect January 1, 2023. 24 DIVISION III 25 CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE 26 Sec. 12. CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE 27 AND REPORT. 28 1. A criminal history employment application task force 29 is created. The task force shall consist of the following 30 members: 31 a. The labor commissioner or the labor commissioner’s 32 designee, who shall represent public sector employers. 33 b. Two representatives of established civil rights 34 and civil liberties organizations appointed by the labor 35 -7- H 8225.3988 (2) 89 dg/rn 7/ 9

commissioner. 1 c. Two representatives of private sector employers 2 appointed by the labor commissioner. 3 d. One representative of a private sector labor 4 organization appointed by the labor commissioner. 5 e. 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, 2023. The report shall 22 include a model pamphlet or other publication in both printed 23 and electronic form on evaluating employment applications 24 from individuals with criminal histories to be distributed to 25 employers in Iowa in a manner similar to other information 26 distributed by the labor commissioner. 27 Sec. 13. EFFECTIVE DATE. This division of this Act, being 28 deemed of immediate importance, takes effect upon enactment. > 29 2. Title page, by striking line 1 and inserting < An Act 30 relating to economic development matters, including legislative 31 findings, prohibitions on seeking criminal records or criminal 32 history for certain job applicants, establishing a criminal 33 history employment application task force, providing penalties, 34 and including effective date provisions. >> 35 -8- H 8225.3988 (2) 89 dg/rn 8/ 9