H-8231

   Amend  the amendment, H-8225, to House File 2355, as follows:
   1.  By striking page 1, line 1, through page 5, line 29, and inserting: 
   <Amend House File 2355 as follows:
   1.  By striking everything after the enacting clause and inserting: 
<DIVISION I
ECONOMIC DEVELOPMENT LEGISLATIVE FINDINGS

   Section 1.  Section 96.2, Code 2022, is amended to read as follows:
   96.2  Guide for interpretation.
   1.  As a guide to the interpretation and application of this chapter, the public policy of this state is declared to be as follows:  Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of this state. Involuntary unemployment is therefore a subject of general interest and concern which requires appropriate action by the legislature to prevent its spread and to lighten its burden which now so often falls with crushing force upon the unemployed worker and the worker’s family. The achievement of social security requires protection against this greatest hazard of our economic life. This can be provided by encouraging employers to provide more stable employment and by the systematic accumulation of funds during periods of employment to provide benefits for periods of unemployment, thus maintaining purchasing power and limiting the serious social consequences of poor relief assistance. The legislature, therefore, declares that in its considered judgment the public good and the general welfare of the citizens of this state require the enactment of this measure, under the police powers of the state, for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.
   2.  It is the finding of the legislature that true economic development can only be achieved when workers are given the respect they deserve. Economic development must include all residents of this state, including men and women, people of all gender identities, minorities, and immigrants. The legislature further finds that economic development should include but not be limited to residents of this state being paid a living wage, this state being a welcoming place for immigrants, child care and housing being readily affordable and available, and public workers having collective bargaining rights.
DIVISION II
PROHIBITED HIRING PRACTICES —— CRIMINAL RECORD OR CRIMINAL HISTORY

   Sec. 2.  Section 84A.5, subsection 4, Code 2022, is amended to read as follows:
   4.  The division of labor services is responsible for the administration of the laws of this state under chapters 88, 88A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92, and 94A, and sections 73A.21 and 85.68. The executive head of the division is the labor commissioner, appointed pursuant to section 91.2.
   Sec. 3.  Section 91.4, subsection 2, Code 2022, is amended to read as follows:
   2.  The director of the department of workforce development, in consultation with the labor commissioner, shall, at the time provided by law, make an annual report to the governor setting forth in appropriate form the business and expense of the division of labor services for the preceding year, the number of remedial actions taken under chapter 89A, the number of disputes or violations processed by the division and the disposition of the disputes or violations, and other matters pertaining to the division which are of public interest, together with recommendations for change or amendment of the laws in this chapter and chapters 88, 88A, 88B, 89, 89A, 89B, 90A, 91A, 91C, 91D, 91E, 91F, 92, and 94A, and section 85.68, and the recommendations, if any, shall be transmitted by the governor to the first general assembly in session after the report is filed.
   Sec. 4.  NEW SECTION.  91F.1  Declarations and purpose.
   1.  The general assembly declares that:
   a.  Removing obstacles to employment for individuals with criminal records provides economic and social opportunities to a large group of individuals in Iowa, as well as increasing the productivity, health, and safety of Iowa communities.
   b.  Employment advertisements in Iowa frequently include language regarding criminal records that is unrelated to the employment vacancy and that either explicitly precludes or strongly dissuades individuals from applying for employment for which they are otherwise qualified.
   c.  Individuals with criminal records represent a group of job seekers ready and able to enlarge and contribute to the workforce.
   d.  Securing employment significantly reduces the risk of recidivism for individuals with criminal records.
   e.  The opportunity for individuals with criminal records to secure employment or to pursue, practice, or engage in a meaningful and profitable trade, occupation, vocation, profession, or business is essential to rehabilitation and their resumption of the responsibilities of citizenship.
   2.  It is the purpose of this chapter to improve the economic viability, health, and security of Iowa communities and to assist individuals with criminal records to reintegrate into the community, become productive members of the workforce, and provide for their families and themselves.
   Sec. 5.  NEW SECTION.  91F.2  Definitions.
   1.  “Applicant” means a person pursuing employment with an employer or with or through an employment agency.
   2.  “Commissioner” means the labor commissioner, appointed pursuant to section 91.2, or the labor commissioner’s designee.
   3.  “Criminal record or criminal history” means information collected or possessed by any criminal justice agency or judicial system in this state or in another jurisdiction, including a federal, military, tribal, or foreign jurisdiction, concerning individuals which information includes identifiable descriptions and notations of arrests, detentions, indictments, or other formal criminal charges, and any disposition arising therefrom, including acquittal, deferred judgment, sentencing, correctional supervision, release, or conviction, and any sentence arising from a verdict or plea of guilty or nolo contendere, including a sentence of incarceration, a suspended sentence, a sentence of probation, or a sentence of conditional discharge.
   4.  “Employer” means a person who has four or more employees in the current or preceding calendar year and includes an agent of such a person. For purposes of this chapter, individuals who are members of the employer’s family shall not be counted as employees.
   5.  “Employment agency” means a person who, with or without compensation, regularly brings together those desiring to employ and those desiring employment and includes an agent of such a person.
   Sec. 6.  NEW SECTION.  91F.3  Prohibited hiring practices —— exceptions.
   1.  An employer or employment agency shall not inquire about or require disclosure of the criminal record or criminal history of an applicant until the applicant’s interview is being conducted or, if an interview will not be conducted, until after a conditional offer of employment is made to the applicant by the employer or employment agency.
   2.  Subsection 1 does not apply to the following positions if an employer or employment agency establishes a separate application form for such positions that includes the title and job description of the position, the specific state or federal law or bonding requirement that applies to the position, and the types of criminal offenses that would preclude an applicant from being hired for the position:
   a.  Positions where employers are required to exclude applicants with certain criminal convictions from employment due to federal or state law.
   b.  Positions where a fidelity bond or an equivalent bond is required and an applicant’s conviction of one or more specified criminal offenses would disqualify the applicant from obtaining such bond, in which case an employer may include a question or otherwise inquire whether the applicant has ever been convicted of such specified criminal offenses.
   3.  Subsection 1 does not prohibit an employer or employment agency from notifying applicants in writing of specific offenses that will disqualify an applicant from employment in a particular position as permitted by subsection 2.
   4.  Subsection 1 does not apply to the following positions:
   a.  Positions where an employee will work within the residence of the employer if the employer or members of the employer’s family reside therein during such employment.
   b.  Positions where an employee will have entry access to a personal residence or an occupied unit in a multiple housing structure.
   c.  Positions where an employee will render personal service to the person of the employer or members of the employer’s family.
   5.  An employment agency shall not be liable for a violation of subsection 1 if the employment agency can demonstrate by clear and convincing evidence that such violation was caused by the employment agency’s good-faith reliance on an affirmative representation by an employer that one of the exceptions listed in subsection 2 or 4 applied to the position in question. The employer shall be liable for any such violations.
   Sec. 7.  NEW SECTION.  91F.4  Powers and duties of the commissioner.
   1.  The commissioner may hold hearings and investigate alleged violations of this chapter by an employer or employment agency.
   2.  The commissioner may assess and recover civil penalties in accordance with sections 91F.5 and 91F.6.
   3.  The commissioner shall adopt rules pursuant to chapter 17A to administer this chapter.
   Sec. 8.  NEW SECTION.  91F.5  Civil penalties —— amount.
   An employer or employment agency who violates the provisions of this chapter shall be subject to a penalty as follows:
   1.  For a first violation, the commissioner shall issue a written warning to the employer or employment agency that includes notice regarding penalties for subsequent violations and the employer or employment agency shall have thirty days to remedy the violation.
   2.  For a second violation, or if a previous violation is not remedied within thirty days of notice by the commissioner, the commissioner may impose a civil penalty of up to five hundred dollars.
   3.  For a third violation, or if a previous violation is not remedied within sixty days of notice by the commissioner, the commissioner may impose a civil penalty of up to one thousand five hundred dollars.
   4.  For subsequent violations, or if a previous violation is not remedied within ninety days of notice by the commissioner, the commissioner may impose a civil penalty of up to one thousand five hundred dollars for every thirty days that pass thereafter without compliance.
   Sec. 9.  NEW SECTION.  91F.6  Civil penalties —— recovery.
   1.  The commissioner may propose that an employer be assessed a civil penalty as provided in section 91F.4 by serving the employer with notice of such proposal in the same manner as an original notice is served under the rules of civil procedure. Upon service of such notice, the proposed assessment shall be treated as a contested case under chapter 17A. However, an employer or employment agency must request a hearing within thirty days of being served.
   2.  If an employer or employment agency does not request a hearing pursuant to subsection 1 or if the commissioner determines, after an appropriate hearing, that an employer or employment agency is in violation of this chapter, the commissioner shall assess a civil penalty in accordance with section 91F.5.
   3.  An employer or employment agency may seek judicial review of any assessment made under subsection 2 by instituting proceedings for judicial review pursuant to chapter 17A.  However, such proceedings must be instituted in the district court of the county in which the violation or one of the violations occurred and within thirty days of the day on which the employer was notified that an assessment has been made.
   4.  After the time for seeking judicial review has expired or after all judicial review has been exhausted and the commissioner’s assessment has been upheld, the commissioner shall request the attorney general to recover the assessed penalties in a civil action.
   5.  Civil penalties recovered pursuant to this section shall be remitted by the commissioner to the treasurer of state for deposit in the general fund of the state.
   Sec. 10.  NEW SECTION.  91F.7  Construction.
   This chapter shall not be construed to require an employer to employ an individual with a criminal record.
   Sec. 11.  EFFECTIVE DATE.  This division of this Act takes effect January 1, 2023.
DIVISION III
CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE

   Sec. 12.  CRIMINAL HISTORY EMPLOYMENT APPLICATION TASK FORCE AND REPORT.
   1.  A criminal history employment application task force is created. The task force shall consist of the following members:
   a.  The labor commissioner or the labor commissioner’s designee, who shall represent public sector employers.
   b.  Two representatives of established civil rights and civil liberties organizations appointed by the labor commissioner.
   c.  Two representatives of private sector employers appointed by the labor commissioner.
   d.  One representative of a private sector labor organization appointed by the labor commissioner.
   e.  One representative of a statewide public sector labor organization appointed by the labor commissioner.
   2.  The task force shall study appropriate voluntary standards and procedures for evaluating employment applications from an individual with a criminal history, including but not limited to the nature of the crime, the age at which the crime was committed, the nature of the duties of the position applied for, and relevant evidence of the individual’s rehabilitation.
   3.  The labor services division of the department of workforce development shall provide staffing services for the task force. The labor commissioner or the labor commissioner’s designee shall serve as the chairperson of the task force.
   4.  The members of the task force shall serve without compensation and shall not be reimbursed for their expenses.
   5.  The task force shall submit a report regarding its findings and recommendations to the governor and the general assembly no later than January 1, 2023. The report shall include a model pamphlet or other publication in both printed and electronic form on evaluating employment applications from individuals with criminal histories to be distributed to employers in Iowa in a manner similar to other information distributed by the labor commissioner.
   Sec. 13.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.>
   2.  Title page, by striking line 1 and inserting <An Act relating to economic development matters, including legislative findings, prohibitions on seeking criminal records or criminal history for certain job applicants, establishing a criminal history employment application task force, providing penalties, and including effective date provisions.>>

______________________________
DONAHUE of Linn