House File 2421 - Introduced HOUSE FILE 2421 BY COMMITTEE ON LABOR (SUCCESSOR TO HSB 699) A BILL FOR An Act requiring that prevailing wage rates by locality be 1 paid to persons working on public improvements for public 2 bodies, unless by public resolution a political subdivision 3 of the state chooses not to utilize the prevailing wage rate 4 for a public improvement project, providing penalties, and 5 including effective date and applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5757HV (3) 83 ak/rj

H.F. 2421 Section 1. Section 84A.5, subsection 4, Code Supplement 1 2009, is amended to read as follows: 2 4. The division of labor services is responsible for the 3 administration of the laws of this state under chapters 88, 4 88A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92, 5 and 94A, and section 85.68. The executive head of the division 6 is the labor commissioner, appointed pursuant to section 91.2. 7 Sec. 2. Section 91.4, Code 2009, is amended by adding the 8 following new subsection: 9 NEW SUBSECTION . 11. To determine the prevailing wage rates 10 pursuant to chapter 91F. 11 Sec. 3. NEW SECTION . 91F.1 Short title. 12 This chapter shall be known and may be cited as the “Public 13 Improvement Quality Protection and Safety Act” . 14 Sec. 4. NEW SECTION . 91F.2 Public policy. 15 It is in the public interest that public improvements 16 are completed by the best means and highest quality of labor 17 reasonably available, and that workers on public improvements 18 be compensated according to the real value of the services 19 they perform. It is the policy of this state that the wages 20 of workers on public improvements should be at least equal to 21 the prevailing wage rates paid for similar work by responsible 22 contractors in the community as a whole in order to accomplish 23 all of the following: 24 1. Protect workers and their contractors and subcontractors 25 from the effects of serious and unfair competition resulting 26 from wage levels detrimental to efficiency and well-being. 27 2. Ensure that contractors compete with one another on the 28 basis of the ability to perform work competently, efficiently, 29 and safely while maintaining community-established compensation 30 standards. 31 3. Recognize that local participation in public 32 improvements and local provision of wage income and benefits 33 are essential to the protection of community standards. 34 4. Encourage training and education of workers to industry 35 -1- LSB 5757HV (3) 83 ak/rj 1/ 23

H.F. 2421 skill standards while requiring safety training. 1 5. Encourage contractors and subcontractors to use funds 2 allocated for employee fringe benefits for the actual purchase 3 of those benefits. 4 6. Recognize that political subdivisions, because of 5 circumstances unique to their communities at a given time, may 6 deem it beneficial to not require that prevailing wage rates be 7 paid on a particular public improvement project. 8 Sec. 5. NEW SECTION . 91F.3 Definitions. 9 As used in this chapter, unless the context otherwise 10 requires: 11 1. “Commissioner” means the labor commissioner appointed 12 pursuant to section 91.2 or the labor commissioner’s designee. 13 2. “Contractor” or “subcontractor” means a person who 14 undertakes, offers to undertake, purports to have the capacity 15 to undertake, or submits a bid, individually or through others, 16 to engage in a public improvement. 17 3. “Division” means the division of labor of the department 18 of workforce development. 19 4. a. “Fringe benefits” means the following provision or 20 purchases of any of the benefits enumerated in paragraph “b” . 21 (1) Contributions irrevocably made by a contractor or 22 subcontractor to a trustee or to a third person pursuant to a 23 plan, fund, or program. 24 (2) The costs to the contractor or subcontractor which are 25 reasonably related to providing benefits to workers pursuant 26 to an enforceable commitment to carry out a financially 27 responsible plan or program, given in writing to the workers 28 affected. 29 b. The following benefits are fringe benefits: 30 (1) Health insurance. 31 (2) Pension, retirement, or annuity benefits. 32 (3) Defraying costs of apprenticeship programs approved and 33 registered with the United States department of labor’s office 34 of apprenticeship. 35 -2- LSB 5757HV (3) 83 ak/rj 2/ 23

H.F. 2421 5. “Horizontal and transportation infrastructure” means 1 water treatment and filtration plants and stations, water 2 mains, storm water and sanitary sewers, sewage lagoons, 3 drainage projects, tile lines, locks, dams, levees, revetments, 4 river channels, retaining walls, shafts, tunnels, subways, 5 airport airfields, athletic fields, golf courses, bicycle and 6 pedestrian paths, sidewalks, fences, alleys, guard rails, 7 parking areas, right-of-way clearing, vertical infrastructure 8 site development, bridges, culverts, and roads and street 9 public improvement projects as defined in section 306.3. 10 6. “Interested party” means any of the following: 11 a. A contractor who submits a bid for the purpose of 12 securing the award of a contract for a public improvement. 13 b. A subcontractor of a contractor mentioned in a bid 14 referred to in paragraph “a” . 15 c. A worker employed by a contractor or subcontractor 16 described in either paragraph “a” or “b” . 17 d. A labor organization that represents workers engaged 18 in the same craft or classification as workers employed by a 19 contractor or subcontractor described in either paragraph “a” 20 or “b” and that exists, in whole or in part, for the purpose 21 of negotiating with employers concerning the wages, hours, or 22 terms and conditions of employment of employees. 23 e. A joint labor-management committee established pursuant 24 to the federal Labor Management Cooperation Act of 1978, 29 25 U.S.C. § 175a. 26 f. The division of labor of the department of workforce 27 development. 28 g. The department of transportation. 29 7. “Locality” means a county of this state and for 30 prevailing wage rate purposes is determined by the physical 31 location of the public improvement. 32 8. “Maintenance work” means the repair of existing public 33 improvements when the size, type, or extent of the public 34 improvement is not changed or increased. 35 -3- LSB 5757HV (3) 83 ak/rj 3/ 23

H.F. 2421 9. “Political subdivision” means a county, city, or school 1 district. 2 10. “Prevailing wage rate” means the hourly wage rate plus 3 fringe benefit rate which the commissioner determines most 4 often occurs in accordance with this chapter. 5 11. “Public body” means the state or any of its political 6 subdivisions, the state board of regents, or a community 7 college. 8 12. a. “Public improvement” means construction, alteration, 9 reconstruction, repair, rehabilitation, refinishing, 10 refurbishing, remodeling, renovation, installation, or 11 demolition of horizontal and transportation infrastructure or 12 vertical infrastructure, where the estimated total cost of the 13 improvement is one hundred thousand dollars or more and where 14 such improvement meets any of the following requirements: 15 (1) Such improvement is undertaken and performed under the 16 supervision or direction of a public body. 17 (2) Such improvement is located on public property. 18 (3) Fifty-five percent or more of the horizontal and 19 transportation infrastructure or vertical infrastructure is 20 leased to a public body or is subject to a written agreement 21 to be leased by a public body, with vertical infrastructure 22 exceeding twenty thousand square feet. 23 b. “Public improvement” as defined in paragraph “a” includes 24 but is not limited to landscaping; site preparation; grading; 25 paving; excavation; overlay; moving; wrecking; painting; 26 decorating; fabrication of electrical, plumbing, heating, 27 cooling, ventilation, architectural systems, structural systems 28 or exhaust duct systems; mechanical installation; erection of 29 scaffolding; repair, assembly, or disassembly of equipment; 30 maintenance work; testing of materials; cleaning and hauling 31 of refuse to an outside disposal location; preparation and 32 removal of roadway construction zones, lane closures, flagging, 33 and traffic diversions; and the transportation of supplies, 34 material, and equipment to and from the site. 35 -4- LSB 5757HV (3) 83 ak/rj 4/ 23

H.F. 2421 13. “Vertical infrastructure” means buildings, appurtenant 1 structures, underground storage tanks, and utilities. 2 14. “Wage” means the hourly rate of pay earned by an 3 employee and paid by an employer. 4 15. a. “Worker” means an individual who performs any 5 labor or service for a contractor or subcontractor on a 6 public improvement but does not include an individual when 7 transporting supplies, materials, or equipment for a seller, 8 supplier, manufacturer, or processor of materials or equipment. 9 b. The individual is deemed an employee of a contractor or 10 subcontractor unless an independent contractor relationship 11 between the individual and the contractor or subcontractor is 12 intended to be created and all of the following conditions 13 apply: 14 (1) The contractor or subcontractor does not control or 15 direct the performance of services by the individual. 16 (2) The contractor or subcontractor is not responsible for 17 the payment of the individual’s wages. 18 (3) The contractor or subcontractor does not have the 19 right to discharge the individual or to terminate the working 20 relationship with the individual. 21 (4) The contractor or subcontractor is not the authority 22 in charge of the work or for whose benefit the individual is 23 providing services. 24 c. An individual classified as an employee under this 25 subsection shall also be classified as an employee pursuant to 26 chapters 85, 85A, 85B, 88, 91A, and 96. 27 Sec. 6. NEW SECTION . 91F.4 Determination of prevailing 28 wages. 29 1. The commissioner shall determine annually and publish 30 on the first business day of July, the prevailing wage rates 31 by locality for each craft, classification, or type of worker 32 needed to perform work on public improvements. The rates shall 33 be conclusive for one year from the date of publication unless 34 superseded within the one year by a later publication of the 35 -5- LSB 5757HV (3) 83 ak/rj 5/ 23

H.F. 2421 commissioner, or for a longer period as provided in subsection 1 5. 2 2. The commissioner shall announce all prevailing wage rate 3 determinations by locality and give notice by posting them 4 on the portion of the department of workforce development’s 5 internet site related to the division. A printed version of 6 the prevailing wage rates for the state shall be available to 7 the public upon request to the division. 8 3. The public body awarding any contract for a public 9 improvement or otherwise undertaking any public improvement, 10 shall obtain from the internet site the prevailing wage rate in 11 the locality in which the public improvement is to be performed 12 for each craft, classification, or type of worker needed 13 to perform work on the public improvement. After a public 14 improvement contract is awarded, or a public improvement is 15 otherwise undertaken, the prevailing wage rate published by the 16 commissioner and stated in the public body’s public improvement 17 procurement documents shall remain in effect throughout the 18 duration of the public improvement unless superseded by a later 19 determination and publication by the commissioner, or unless 20 multiyear prevailing wage rates have been published by the 21 commissioner at the time the public improvement procurement 22 documents were released. 23 4. a. (1) Contractors who are registered with the division 24 pursuant to chapter 91C, who participate in an apprenticeship 25 program approved by and registered with the United States 26 department of labor’s office of apprenticeship, and who provide 27 fringe benefits for their workers shall submit wage rates and 28 fringe benefits rates data once a year to the division. The 29 commissioner shall create an internet site and paper forms for 30 contractors to submit the required information. 31 (2) All parties shall keep the wage rates and fringe 32 benefits rates information confidential. 33 (3) An individual who intentionally provides misinformation 34 about wage rates, fringe benefits rates, or work locations 35 -6- LSB 5757HV (3) 83 ak/rj 6/ 23

H.F. 2421 commits a violation under this chapter and shall be assessed 1 a one-hundred-dollar penalty per violation. A violation 2 under this subsection is grounds for a loss of licensure or 3 registration with the division, as applicable, which shall 4 be in addition to any penalty otherwise authorized by this 5 subsection. 6 b. The commissioner shall only accept and use wage rates and 7 fringe benefit rates data submitted by contractors that are in 8 compliance with this subsection. 9 c. The prevailing wage rates and fringe benefits rates 10 determined in each locality shall be set at the wage rate and 11 fringe benefits rate that thirty percent or more of those 12 employed in a particular craft, classification, or type of 13 work are paid in total. If a common wage rate and fringe 14 benefits rate is not paid to at least thirty percent of those 15 employed in a particular craft, classification, or type of 16 work, the total of the wage rates and fringe benefits rates 17 of all workers in a particular craft, classification, or type 18 of work shall be calculated and the average wage rate and 19 fringe benefits rate shall be the prevailing wage rate for that 20 particular craft, classification, or type of worker in that 21 locality, if not less than the federally established prevailing 22 wage rate for that locality. If less than the federally 23 established prevailing wage rate for that locality, the 24 commissioner may utilize the federally established prevailing 25 wage rates that apply to that locality. 26 5. Notwithstanding other provisions of this chapter to the 27 contrary, federal Davis-Bacon Act prevailing wage rates and 28 procedures, as defined in 29 C.F.R. pts. 1, 3, and 5, except 29 for 29 C.F.R. § 1.8 and 1.9, and administered by the public 30 body apply to public improvements that are publicly owned 31 horizontal and transportation infrastructure. 32 Sec. 7. NEW SECTION . 91F.5 Prevailing wage rate 33 determination —— objections —— appeals. 34 1. a. (1) Within fifteen days after the division has 35 -7- LSB 5757HV (3) 83 ak/rj 7/ 23

H.F. 2421 published on the department of workforce development’s internet 1 site the annual prevailing wage rates for each classification, 2 craft, or other type of worker in a locality, an interested 3 party may seek reconsideration of the determination or part of 4 the determination by filing a written objection, which shall 5 include a statement of the interested party’s views and other 6 pertinent information, with the commissioner by restricted 7 certified mail as defined in section 618.15. 8 (2) Upon receipt of the written objections, the 9 commissioner shall respond by modifying or denying the 10 determination and providing a written reply by restricted 11 certified mail to the interested party within fifteen days from 12 the date of the receipt of the written objection. 13 (3) The commissioner shall publish a modification to the 14 determination within five business days of notification of the 15 interested party and the modification shall be effective upon 16 publication. 17 b. (1) Within ten days upon receiving receipt of the 18 commissioner’s decision, the interested party may file a 19 written appeal to the department of inspections and appeals, 20 which shall set a hearing date before an administrative law 21 judge, who shall be an attorney. 22 (2) The department of inspections and appeals shall give 23 notice by restricted certified mail to the interested party and 24 the division at least ten days before the hearing date of the 25 time and place of the hearing. 26 (3) The hearing shall be held within thirty days after the 27 department of inspections and appeals receives the interested 28 party’s written objection, and shall not be postponed or reset 29 for a later date except upon the consent, in writing, of both 30 the interested party and the division. 31 (4) The interested party objecting to the determination 32 set by the division shall have the burden of establishing that 33 the disputed determination was not determined in accordance 34 with this chapter. If the interested party objects to the 35 -8- LSB 5757HV (3) 83 ak/rj 8/ 23

H.F. 2421 failure to include a particular craft, classification, or type 1 of worker within the annual prevailing wage rate determination 2 in a locality, the interested party must establish that the 3 particular craft, classification, or type of worker does not 4 exist under a different prevailing wage rate classification in 5 any of the localities under consideration. 6 (5) The administrative law judge may hear each objection 7 filed separately or, if applicable, consolidate two or 8 more objections about the same determination filed with the 9 department of inspections and appeals. The administrative law 10 judge shall render a final determination within twenty days 11 after the conclusion of the hearing. 12 2. An interested party may appeal the final determination 13 of the administrative law judge through judicial review as 14 provided under section 17A.19. 15 3. Notwithstanding section 17A.19, subsection 5, paragraph 16 “c” , this section does not give reason or provide cause for an 17 injunction to halt or delay any public improvement. 18 Sec. 8. NEW SECTION . 91F.6 Payment of prevailing wage rates 19 required. 20 1. Contractors and subcontractors engaged in a public 21 improvement shall not pay less than the current specified 22 prevailing wage rates per pay period to all of their workers 23 engaged in the public improvement. However, this chapter does 24 not prohibit the payment of more than the prevailing wage rate 25 to any workers engaged in a public improvement. 26 2. All contractors and subcontractors required to pay the 27 prevailing wage rate under this chapter shall make payment, 28 without any deduction for food, sleeping accommodations, 29 transportation, use of tools or safety equipment, vehicle 30 or equipment rental, or any other thing of any kind or 31 description. 32 Sec. 9. NEW SECTION . 91F.7 Requirements for public 33 improvements. 34 1. The public body awarding a contract for a public 35 -9- LSB 5757HV (3) 83 ak/rj 9/ 23

H.F. 2421 improvement or otherwise undertaking a public improvement shall 1 specify in the call for bids for the contract that this chapter 2 applies to the public improvement. All bid specifications 3 shall list the specified prevailing wage rates for all crafts, 4 classifications, or types of workers in the locality for each 5 worker needed to be included in the contract. 6 2. If a contract is let for a public improvement requiring 7 the payment of prevailing wage rates, the public body 8 awarding the contract shall cause to be inserted in the public 9 improvement specifications and contract a stipulation that 10 no less than the prevailing wage rates shall be paid to all 11 workers performing work under the contract. The contract 12 shall also contain a provision that if it is found that any 13 of the contractor’s or subcontractor’s workers engaged in the 14 public improvement have been paid at a wage rate less than the 15 prevailing wage rates required by this chapter, the public body 16 may terminate the contractor’s or subcontractor’s right to 17 proceed with the work and the contractor and its sureties shall 18 be liable to the public body for any excess costs occasioned by 19 the failure to pay the prevailing wage rates. If a subcontract 20 is let for a public improvement, the provisions of this 21 subsection apply to contracts with lower-tier subcontractors 22 and their workers. 23 3. A contractor and subcontractor engaging in a public 24 improvement shall submit a performance bond in an amount 25 determined by the public body. 26 4. The public body awarding a contract for a public 27 improvement or otherwise undertaking a public improvement shall 28 notify the commissioner in writing, on a form prescribed by 29 the commissioner, if a contract subject to the provisions of 30 this chapter has been awarded. The public body shall file the 31 notification with the commissioner within thirty days after 32 the contract is awarded or before commencement of the public 33 improvement, whichever is sooner, and shall include a list of 34 all first-tier subcontractors. 35 -10- LSB 5757HV (3) 83 ak/rj 10/ 23

H.F. 2421 5. All workers who perform any labor or service for a 1 contractor or subcontractor on a public improvement must 2 complete prior to commencing work on the public improvement a 3 minimum ten-hour construction safety program approved by the 4 United States occupational safety and health administration. 5 6. A political subdivision may choose by adopting a 6 resolution, after providing public notice of the proposed 7 resolution and prior to the letting of a public improvement for 8 bids, not to require prevailing wage rates to be paid for the 9 particular public improvement. 10 Sec. 10. NEW SECTION . 91F.8 Federal public improvements 11 —— not applicable. 12 The provisions of this chapter shall not be applicable to 13 public improvements financed by federal funds which require a 14 pay or wage rate determination by the United States department 15 of labor. If a public improvement is financed in part by a 16 public body and in part by federal funds, the higher of the pay 17 or wage rates shall be utilized for the public improvement. 18 Sec. 11. NEW SECTION . 91F.9 Records required. 19 While participating in a public improvement, the contractor 20 and each subcontractor shall do all of the following: 21 1. Make and keep, for a period of not less than three years, 22 accurate records of all workers employed by the contractor or 23 subcontractor on the public improvement. The records shall 24 include each worker’s name, address, telephone number when 25 available, social security number, trade classification, the 26 hourly wages paid in each pay period, the number of hours 27 worked each day, and the starting and ending times of work each 28 day. 29 2. Submit monthly certified payroll records to the public 30 body responsible for the public improvement. The public body 31 shall retain such records for three years. 32 3. Post the prevailing wage rates for each craft, 33 classification, or type of workers involved in the public 34 improvement in a prominent and easily accessible place at the 35 -11- LSB 5757HV (3) 83 ak/rj 11/ 23

H.F. 2421 site of the public improvement or at the place or places used 1 by the contractor or subcontractor to pay workers their wages. 2 Sec. 12. NEW SECTION . 91F.10 Powers of commissioner. 3 1. The commissioner and the division shall administer this 4 chapter in accordance with chapter 17A, and the commissioner 5 shall adopt rules for the administration and enforcement of 6 this chapter as provided in section 91.6. 7 2. The commissioner shall enforce the provisions of this 8 chapter. The commissioner may hold hearings and investigate 9 charges of violations of this chapter. 10 3. The commissioner may, consistent with due process of law, 11 enter any place of employment to inspect records concerning 12 wages and payrolls, to question the employer and employees, and 13 to investigate such facts, conditions, or matters as are deemed 14 appropriate in determining whether any person has violated 15 the provisions of this chapter. However, such entry by the 16 commissioner shall only be in response to a written complaint. 17 4. The commissioner shall develop a written complaint form 18 applicable for this chapter and make it available in division 19 offices and on the department of workforce development’s 20 internet site. 21 5. The commissioner may sue for injunctive relief against 22 the awarding of a contract, the undertaking of a public 23 improvement, or the continuation of a public improvement when 24 the prevailing wage rate requirements of this chapter have not 25 been met. 26 6. The commissioner may investigate and ascertain the wages 27 of workers engaged in any public improvement in this state. 28 7. The commissioner may administer oaths, take or cause to 29 be taken depositions of witnesses, and require by subpoena the 30 attendance and testimony of witnesses and the production of all 31 books, registers, payrolls, and other evidence relative to the 32 matter under investigation or hearing. 33 8. The commissioner may employ such qualified personnel 34 as are necessary for the enforcement of this chapter. Such 35 -12- LSB 5757HV (3) 83 ak/rj 12/ 23

H.F. 2421 personnel shall be employed pursuant to chapter 8A, subchapter 1 IV. 2 9. The commissioner shall require a contractor or 3 subcontractor to file, within ten days of receipt of a request, 4 any records enumerated in section 91F.9. If the contractor or 5 subcontractor fails to provide the requested records within ten 6 days, the commission may direct, within fifteen days after the 7 end of the ten-day period, that the fiscal or financial officer 8 charged with the custody and disbursements of the funds of the 9 public body, which contracted for construction of the public 10 improvement or undertook the public improvement, to immediately 11 withhold from payment to the contractor or subcontractor 12 up to twenty-five percent of the amount to be paid to the 13 contractor or subcontractor under the terms of the contract 14 or written instrument under which the public improvement is 15 being performed. The amount withheld shall be immediately 16 released upon receipt by the public body of a notice from 17 the commissioner indicating that the request for records as 18 required by this section has been satisfied. 19 Sec. 13. NEW SECTION . 91F.11 Notice of violations. 20 1. For purposes of this section: 21 a. “Accurate records” means the hourly rate of contribution 22 and costs paid for fringe benefits and whether the 23 contributions and costs of the fringe benefits were paid into a 24 fund or paid directly to the worker. 25 b. “Decision” means a determination by the division that a 26 single violation of this chapter has occurred, warranting the 27 commissioner to issue a notice of violation to a contractor or 28 subcontractor. 29 c. “Notice of second violation” is a formal written notice 30 issued by the division advising a contractor or subcontractor 31 that a second or subsequent violation has occurred within three 32 years from the date of the notice of a first violation. 33 d. “Notice of violation” means a formal written notice 34 issued by the division to a contractor or subcontractor 35 -13- LSB 5757HV (3) 83 ak/rj 13/ 23

H.F. 2421 that the division has made a decision that the contractor or 1 subcontractor has violated this chapter. 2 e. “Violation” means a written decision by the division that 3 a contractor or subcontractor has done one of the following: 4 (1) Failed or refused to pay the prevailing wage rates to 5 one or more workers as required by this chapter. 6 (2) Failed to keep accurate records as required by this 7 chapter. 8 (3) Failed to produce for the division accurate records or 9 produced records not in compliance with this chapter. 10 (4) Refused to submit records or testimony to the division 11 in response to a subpoena issued in accordance with this 12 chapter. 13 (5) Refused the division access, at any reasonable hour at 14 a location within the state, to inspect the contractor’s or 15 subcontractor’s records as required by this chapter. 16 (6) Failed to insert into a contract, a written stipulation 17 that not less than the prevailing wage rates be paid as 18 required by this chapter. 19 (7) Failed to post the prevailing wage rates as required by 20 this chapter. 21 (8) Failed to submit or retain certified payroll records. 22 2. After receipt of a written complaint by an interested 23 party or on the division’s initiative, the commissioner shall 24 review the investigative file to determine whether a violation 25 has occurred for which the contractor or subcontractor must 26 be given notice. All information gathered during an audit or 27 investigation shall be considered and shall constitute the 28 basis for the division’s decision that this chapter has been 29 violated and that a notice of violation is required to be 30 issued. The notice of violation shall identify the specific 31 violation and the amount of moneys estimated due the interested 32 party and in controversy based on reasons contained in the 33 investigative file. 34 3. In making a decision that a contractor or subcontractor 35 -14- LSB 5757HV (3) 83 ak/rj 14/ 23

H.F. 2421 has failed to allow the commissioner access to accurate 1 records, the commissioner shall rely on the information 2 contained in the investigative file, and shall assess a 3 separate violation for each day worked by each worker on the 4 public improvement. Each decision of a separate violation 5 shall be listed in the notice of violation. 6 4. In determining that this chapter has been violated and 7 that the issuance of a notice of violation is required, the 8 commissioner shall base the decision on one or any combination 9 of the following reasons: 10 a. The severity of the violations, which includes the 11 following: 12 (1) The amount of wages that are determined to be underpaid 13 pursuant to this chapter. 14 (2) The activity or conduct complained of that violates the 15 requirements of this chapter and was not merely a technical, 16 nonsubstantive error. Examples of a technical, nonsubstantive 17 error include but are not limited to a mathematical error, 18 bookkeeping error, transposition of numbers, or computer or 19 programming error. 20 b. The nature and duration of the present violation and the 21 prior history of the contractor or subcontractor related to 22 this history. The prior history considered shall not exceed 23 seven years before the date of the notice of violation. 24 c. Whether the contractor or subcontractor has kept payroll 25 records and accurate records for three years and whether 26 the contractor or subcontractor produced payroll records in 27 accordance with section 91F.9. 28 d. Whether the contractor or subcontractor has violated any 29 other provision of this chapter. 30 5. The notices of the first, second, and subsequent 31 violations shall be sent by restricted certified mail, 32 addressed to the last known address of the contractor or 33 subcontractor involved. The notices shall contain a reference 34 to the specific provisions of this chapter alleged to have been 35 -15- LSB 5757HV (3) 83 ak/rj 15/ 23

H.F. 2421 violated, identify the particular public improvement involved, 1 identify the conduct complained of, and identify whether the 2 notice is a first, second, or subsequent notice, and include a 3 contractor’s or subcontractor’s statement of liabilities. 4 Sec. 14. NEW SECTION . 91F.12 Violations —— remedies. 5 1. If the commission determines that a public body has 6 divided a public improvement into more than one contract for 7 the purpose of avoiding compliance with this chapter, the 8 commissioner shall issue an order compelling compliance. In 9 making a determination whether a public body has divided a 10 public improvement into more than one contract for the purpose 11 of avoiding compliance with this chapter, the commissioner 12 shall consider all of the following: 13 a. The physical separation of the public improvement 14 structures. 15 b. The timing of the work on the public improvement phases 16 or structures. 17 c. The continuity of public improvement contractors and 18 subcontractors working on public improvement parts or phases. 19 d. The manner in which the public body and the contractor 20 and subcontractors administer and implement work on the public 21 improvement. 22 2. A worker employed by the contractor and subcontractor 23 who is paid less than the specified prevailing wage rates 24 under this chapter shall have a private right of action for 25 the difference between the amount so paid and the specified 26 prevailing wage rates, and punitive damages, if appropriate, 27 together with costs and reasonable attorney fees as shall be 28 allowed by the court, and the contractor or subcontractor shall 29 additionally be liable to the division for fifty percent of the 30 underpayments. 31 3. If a second or subsequent action to recover underpayments 32 is brought against a contractor or subcontractor within a 33 three-year period and the contractor or subcontractor is 34 found liable for underpayments to a worker, the contractor or 35 -16- LSB 5757HV (3) 83 ak/rj 16/ 23

H.F. 2421 subcontractor shall be liable to the division for seventy-five 1 percent of the underpayments payable as a result of the second 2 or subsequent action. The three-year period begins to run from 3 the date the contractor or subcontractor is determined liable 4 for the first violation. 5 4. The commissioner and any interested party shall also 6 have a right of action on behalf of a worker who has a right 7 of action under this chapter. An action brought to recover 8 the same shall be deemed to be a suit for wages, and all 9 judgments entered in the action shall have the same force and 10 effect as other judgments for wages. At the request of a 11 worker employed by a contractor or subcontractor who is paid 12 less than the prevailing wage rates required by this chapter, 13 the commissioner may take an assignment of the wage claim 14 in trust for the assigning worker and may bring any legal 15 action necessary to collect the claim, and the contractor or 16 subcontractor shall be required to pay the expenses of the 17 division incurred in collecting the claim. 18 5. a. It is a violation of this chapter for a contractor or 19 subcontractor to do any of the following: 20 (1) To request or demand, either before or after the worker 21 is engaged, that a worker pay back, return, donate, contribute, 22 or give any part or all of the worker’s pay, salary, or thing of 23 value, to any person, upon the statement, representation, or 24 understanding that failure to comply with the request or demand 25 will prevent the worker from procuring or retaining employment. 26 (2) To directly or indirectly pay, request, or authorize any 27 other person to violate this chapter. 28 b. This subsection does not apply to an agent or 29 representative of a duly constituted labor organization acting 30 in the collection of dues or assessments from the members of 31 the organization. 32 6. In addition to other penalties provided under this 33 chapter, whoever induces a worker working on a public 34 improvement subject to this chapter to give up or forego 35 -17- LSB 5757HV (3) 83 ak/rj 17/ 23

H.F. 2421 any part of the prevailing wage rates to which the worker 1 is entitled under this chapter by threat not to employ or 2 by threat of dismissal from employment commits a serious 3 misdemeanor. An agreement between the worker and the 4 contractor or subcontractor to work for less than the specified 5 prevailing wage rates shall not be a defense to criminal 6 prosecution. 7 7. A contract shall not be awarded for a period of up 8 to three years to a contractor or subcontractor who, on 9 two separate occasions within a three-year period, has been 10 determined by the commissioner to have violated this chapter. 11 8. If the division determines that a contractor or 12 subcontractor has violated this chapter on two separate 13 occasions within a three-year period, the division shall list 14 on the department of workforce development’s internet site and 15 keep on record the name of the contractor or subcontractor and 16 give notice by restricted certified mail of the list to any 17 public body requesting the list. 18 9. Upon a determination that a contractor or subcontractor 19 may have violated this chapter on two separate occasions within 20 a three-year period, the division shall notify the violating 21 contractor or subcontractor by restricted certified mail. 22 a. The contractor or subcontractor has thirty working days 23 to request of the division a hearing before an administrative 24 law judge on the alleged violation. Failure to respond within 25 thirty working days shall result in an immediate and indefinite 26 barring of the violator from work on public improvements 27 and placement and publication of the violator’s name on the 28 department of workforce development’s internet site. 29 b. If the contractor or subcontractor requests a hearing 30 within thirty working days by restricted certified mail, the 31 department of inspections and appeals shall set a hearing 32 before an administrative law judge on the alleged violation to 33 determine the length of the contractor’s or subcontractor’s 34 bar, if any, not to exceed three years. The hearing shall take 35 -18- LSB 5757HV (3) 83 ak/rj 18/ 23

H.F. 2421 place no later than thirty calendar days after the receipt by 1 the division of the request for a hearing. An action by an 2 administrative law judge constitutes final agency action and is 3 subject to judicial review under section 17A.19. 4 10. This section does not give reason or provide cause for 5 an injunction to halt or delay any public improvement. Any 6 penalties recovered pursuant to this chapter shall be deposited 7 in the general fund of the state. 8 Sec. 15. NEW SECTION . 91F.13 Apprentices. 9 This chapter shall not prevent the employment of apprentices 10 on public improvements. However, an apprentice employed 11 on a public improvement must be registered with the United 12 States department of labor’s office of apprenticeship under 13 an apprenticeship program registered with that office, paid 14 the proper wages specified in the standards of apprenticeship, 15 and engaged only in the trade to which the apprentice is 16 registered. If the apprentice is employed on a public 17 improvement in a trade to which the apprentice is not 18 registered with the United States department of labor’s office 19 of apprenticeship, the apprentice shall be treated as any other 20 worker under this chapter. 21 Sec. 16. IMPLEMENTATION OF ACT. Section 25B.2, subsection 22 3, shall not apply to this Act. 23 Sec. 17. EMERGENCY RULES. The commissioner may adopt 24 emergency rules under section 17A.4, subsection 3, and section 25 17A.5, subsection 2, paragraph “b” , to implement the provisions 26 of this Act and the rules shall be effective immediately upon 27 filing unless a later date is specified in the rules. Any 28 rules adopted in accordance with this section shall also be 29 published as a notice of intended action as provided in section 30 17A.4. 31 Sec. 18. TEMPORARY WAGE RATE DETERMINATIONS —— 32 APPLICABILITY. Until such time after the first annual review 33 of data required pursuant to this Act is completed, the 34 commissioner may utilize the wage rates and fringe benefits 35 -19- LSB 5757HV (3) 83 ak/rj 19/ 23