House File 89 - Introduced HOUSE FILE 89 BY HUNTER A BILL FOR An Act requiring the payment of local prevailing wage rates to 1 persons working on public improvements for public bodies, 2 and providing penalties and including effective date 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1738YH (2) 84 je/rj

H.F. 89 Section 1. Section 84A.5, subsection 4, Code 2011, is 1 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. NEW SECTION . 91F.1 Short title. 8 This chapter shall be known and may be cited as the “Public 9 Improvement Quality Protection Act”. 10 Sec. 3. NEW SECTION . 91F.2 Public policy. 11 It is in the public interest that public improvements 12 are completed by the best means and highest quality of labor 13 reasonably available, and that workers working on public 14 improvements be compensated according to the real value of the 15 services they perform. It is the policy of this state that the 16 wages of workers working on public improvements should be at 17 least equal to the prevailing wage rates paid for similar work 18 by responsible contractors in the community as a whole in order 19 to accomplish all of the following: 20 1. Protect workers and their contractors and subcontractors 21 from the effects of serious and unfair competition resulting 22 from wage levels detrimental to efficiency and well-being. 23 2. Ensure that contractors compete with one another 24 on the basis of the ability to perform work competently 25 and efficiently while maintaining community-established 26 compensation standards. 27 3. Recognize that local participation in public 28 improvements and family wage income and benefits are essential 29 to the protection of community standards. 30 4. Encourage training and education of workers to industry 31 skills standards. 32 5. Encourage contractors and subcontractors to use funds 33 allocated for employee fringe benefits for the actual purchase 34 of those benefits. 35 -1- LSB 1738YH (2) 84 je/rj 1/ 30

H.F. 89 Sec. 4. NEW SECTION . 91F.3 Definitions. 1 As used in this chapter, unless the context otherwise 2 requires: 3 1. “Commissioner” means the labor commissioner appointed 4 pursuant to section 91.2. 5 2. “Contractor” or “subcontractor” means a person who 6 undertakes, offers to undertake, purports to have the capacity 7 to undertake, or submits a bid, individually or through others, 8 to engage in a public improvement. 9 3. “Custom fabrication” means the fabrication of plumbing, 10 heating, cooling, ventilation, architectural systems, 11 structural systems, exhaust duct systems, or mechanical 12 insulation. 13 4. “Division” means the division of labor of the department 14 of workforce development. 15 5. a. “Fringe benefits” means the following for the 16 provision or purchase of any of the benefits enumerated in 17 paragraph “b” : 18 (1) The contribution irrevocably made by a contractor or 19 subcontractor to a trustee or to a third person pursuant to a 20 plan, fund, or program. 21 (2) The costs to the contractor or subcontractor which 22 may be reasonably anticipated in providing benefits to 23 workers pursuant to an enforceable commitment to carry out a 24 financially responsible plan or program, given in writing to 25 the workers affected. 26 b. (1) Medical or hospital care. 27 (2) Pensions or annuities on retirement or death. 28 (3) Supplemental unemployment benefits. 29 (4) Life insurance. 30 (5) Disability and sickness insurance. 31 (6) Accident insurance for nonwork-related accidents. 32 (7) Vacation or holiday pay. 33 (8) Defraying costs of apprenticeship programs approved by 34 and registered with the United States department of labor’s 35 -2- LSB 1738YH (2) 84 je/rj 2/ 30

H.F. 89 office of apprenticeship. 1 6. “Interested party” means any of the following: 2 a. A contractor who submits a bid for the purpose of 3 securing the award of a contract for a public improvement. 4 b. A subcontractor of a contractor mentioned in a bid 5 referred to in paragraph “a” . 6 c. A worker employed by a contractor or subcontractor 7 described in either paragraph “a” or “b” . 8 d. A labor organization that represents workers engaged 9 in the same craft or classification as workers employed by a 10 contractor or subcontractor described in either paragraph “a” 11 or “b” and that exists, in whole or in part, for the purpose 12 of negotiating with employers concerning the wages, hours, or 13 terms and conditions of employment of employees. 14 e. A joint labor-management committee established pursuant 15 to the federal Labor Management Cooperation Act of 1978, 29 16 U.S.C. § 175a. 17 7. “Locality” means a county of this state. 18 8. “Maintenance work” means the repair of existing public 19 improvements when the size, type, or extent of the public 20 improvement is not changed or increased. 21 9. “Prevailing wage rate” means the hourly wage plus 22 fringe benefits, which the commissioner determines prevails in 23 accordance with this chapter, including all of the following: 24 a. Apprentice ratios and the prevailing apprentice pay 25 levels for each craft, classification, or type of worker which 26 the commissioner determines prevails in accordance with section 27 91F.5. 28 b. A prevailing rate for overtime pay for work in excess 29 of the normal prevailing workday and for weekend overtime pay 30 for each craft, classification, or type of worker, including 31 apprentices. 32 c. Holiday pay for holidays that prevail in the locality in 33 which the work is being performed. 34 10. “Public body” means the state and any of its political 35 -3- LSB 1738YH (2) 84 je/rj 3/ 30

H.F. 89 subdivisions, including but not limited to a county, city, 1 township, school district, state board of regents, and public 2 utility. For the purposes of this chapter, “public utility” 3 includes municipally owned utilities and municipally owned 4 waterworks. 5 11. a. “Public improvement” means any of the following that 6 meets the criteria set out in paragraphs “b” and “c” : 7 (1) Construction, alteration, reconstruction, repair, 8 rehabilitation, refinishing, refurbishing, remodeling, 9 renovation, custom fabricating, maintenance, landscaping, 10 improving, moving, wrecking, painting, decorating, or 11 demolishing of, or adding to or subtracting from any building, 12 structure, highway, road, street, bridge, alley, sewer, ditch, 13 sewage disposal plant, waterworks, parking facility, railroad, 14 excavation or other structure, project, development, or 15 improvement, or any part thereof undertaken by a public body, 16 including any of the following related activities: 17 (a) The erection of scaffolding or other structures or 18 works. 19 (b) The maintenance, repair, assembly, or disassembly of 20 equipment. 21 (c) The testing of materials. 22 (d) The hauling of refuse from a site to an outside disposal 23 location. 24 (e) The cleaning of grounds or structures. 25 (f) The addition to or fabrication into any structure, 26 project, development, or improvement of any material or article 27 of merchandise undertaken by a public body. 28 (2) The preparation and removal of roadway construction 29 zones, lane closures, flagging, or traffic diversions 30 undertaken by a public body. 31 (3) The installation, repair, maintenance, or calibration 32 of monitoring equipment for underground storage tanks 33 undertaken by a public body. 34 (4) Work that is performed on any property or premises 35 -4- LSB 1738YH (2) 84 je/rj 4/ 30

H.F. 89 dedicated exclusively or nearly so to the completion of a 1 public improvement, and transportation of supplies, material, 2 and equipment to or from the property or premises undertaken 3 by a public body. 4 b. Work on the public improvement is performed under public 5 supervision or direction, and the work is financed wholly or 6 in part from public funds, or if at the time of commencement 7 of the public improvement all of the following conditions with 8 respect to the public improvement are met: 9 (1) Not less than fifty-five percent of the structure is 10 leased by a public body, or is subject to an agreement to be 11 subsequently leased by a public body. 12 (2) The portion of the structure that is leased or subject 13 to an agreement to be subsequently leased by a public body 14 measures more than twenty thousand square feet. 15 c. The public improvement has an estimated total cost that 16 exceeds twenty-five thousand dollars. 17 12. “Worker” means an individual who performs any 18 labor or service for a contractor or subcontractor on a 19 public improvement but does not include an individual when 20 transporting a seller, supplier, manufacturer, or processor of 21 materials or equipment. The individual is deemed an employee 22 of a contractor or subcontractor unless all of the following 23 apply: 24 a. The individual provides labor or services free from the 25 direction or control over the means and manner of providing the 26 labor or services, subject only to the right of the person for 27 whom the labor or services are provided to specify the desired 28 results. 29 b. The individual providing the labor or services is 30 responsible for obtaining business registrations or licenses 31 required by state law or local ordinance to provide the labor 32 or services. 33 c. The individual providing the labor or services furnishes 34 the tools and equipment necessary to provide the labor or 35 -5- LSB 1738YH (2) 84 je/rj 5/ 30

H.F. 89 services. 1 d. The individual providing the labor or services has the 2 authority to hire and fire employees to perform the labor or 3 services. 4 e. Payment for the labor or services is made upon 5 completion of the performance of specific portions of a public 6 improvement, or is made on the basis of a periodic retainer. 7 f. The individual providing the labor or services represents 8 to the public that the labor or services are to be provided 9 by an independently established business. An individual is 10 engaged in an independently established business when four or 11 more of the following circumstances exist: 12 (1) Labor or services are primarily performed at a location 13 separate from the individual’s residence or in a specified 14 portion of the residence that is set aside for performing labor 15 or services. 16 (2) Commercial advertising or business cards are purchased 17 by the individual, or the individual is a member of a trade or 18 professional association. 19 (3) Telephone or electronic mail listings used by the 20 individual for the labor or services are different from the 21 individual’s personal listings. 22 (4) Labor or services are performed only pursuant to a 23 written contract. 24 (5) Labor or services are performed for two or more persons 25 or entities within a period of one year. 26 (6) The individual assumes financial responsibility 27 for errors and omissions in the performance of the labor or 28 services as evidenced by insurance, performance bonds, and 29 warranties relating to the labor or services provided. 30 Sec. 5. NEW SECTION . 91F.4 Administration. 31 The commissioner and the division shall administer this 32 chapter and the commissioner shall adopt rules for the 33 administration and enforcement of this chapter as provided in 34 section 91.6. 35 -6- LSB 1738YH (2) 84 je/rj 6/ 30

H.F. 89 Sec. 6. NEW SECTION . 91F.5 Determination of prevailing 1 wages. 2 1. The commissioner shall determine annually and publish, 3 on the first business day of July, the prevailing wage rates 4 by locality for each craft, classification, or type of worker 5 needed to perform work on public improvements. The rates shall 6 be conclusive for one year from the date of publication unless 7 superseded within the one year by a later publication of the 8 commissioner, or for a longer period as provided in subsection 9 5. 10 2. The commissioner shall announce all prevailing wage rate 11 determinations by locality and give notice by posting them 12 on the portion of the department of workforce development’s 13 internet site related to the division. A printed version of 14 the prevailing wage rates for the state shall be available to 15 the public upon request to the division. 16 3. The public body awarding any contract for a public 17 improvement, or otherwise undertaking any public improvement, 18 shall obtain from the internet site the prevailing wage rate in 19 the locality in which the public improvement is to be performed 20 for each craft, classification, or type of worker needed 21 to perform work on the public improvement. After a public 22 improvement contract is awarded, or a public improvement is 23 otherwise undertaken, the prevailing wage rate published by the 24 commissioner and stated in the public body’s public improvement 25 procurement documents shall remain in effect throughout the 26 duration of the public improvement unless superseded by a later 27 determination and publication by the commissioner, or unless 28 multiyear prevailing wage rates have been published by the 29 commissioner at the time the public improvement procurement 30 documents were released. 31 4. a. In determining the annual prevailing wage rate 32 for any craft, classification, or type of worker, the 33 commissioner shall ascertain and consider the applicable 34 wage rates and fringe benefits established by collective 35 -7- LSB 1738YH (2) 84 je/rj 7/ 30

H.F. 89 bargaining agreements, the prevailing wage rate determinations 1 that may exist for federal public improvements within the 2 locality and other data obtained by the department during any 3 prevailing wage rate survey of contractors who participate in 4 an apprenticeship program approved by and registered with the 5 United States department of labor’s office of apprenticeship, 6 who provide health insurance and retirement benefits for their 7 workers, and who are registered with the division. Based 8 upon these considerations, the commissioner shall calculate 9 the prevailing wage rates based on the wage rate plus fringe 10 benefits most often occurring for each craft, classification, 11 or other type of worker within each locality. 12 b. The minimum annual prevailing wage rate determination 13 established by the department shall not be lower than the 14 prevailing wage rate determination that may exist for federal 15 public improvements within the locality and in the nearest 16 labor market area. 17 c. None of the benefits enumerated in this chapter may be 18 considered in the determination of prevailing wage rates if 19 the contractor or subcontractor is required by other federal, 20 state, or local law to provide such benefits. 21 5. If the commissioner determines that the prevailing 22 wage rate for any craft, classification, or type of worker 23 is the rate established by a collective bargaining agreement 24 applicable in the locality, the commissioner may adopt that 25 rate by reference and that determination shall be effective 26 for the life of the agreement or until the commissioner adopts 27 another rate. 28 6. a. At any time within fifteen days after the division 29 has published on the department of workforce development’s 30 internet site the annual prevailing wage rates for each 31 classification, craft, or other type of worker in the locality, 32 any interested person affected may object to the determination 33 or the part of the determination as the interested person 34 may deem objectionable by filing a written notice with the 35 -8- LSB 1738YH (2) 84 je/rj 8/ 30

H.F. 89 commissioner by restricted certified mail as defined in 1 section 618.15. When objecting to a prevailing wage rate 2 determination, the interested person shall submit, as a 3 part of the written notice, the prevailing wage rate the 4 interested person believes to be the correct prevailing wage 5 rate determination, stating the specific grounds to support 6 that position. Upon receipt of the notice of objection, the 7 commissioner shall reconsider the determination and shall 8 affirm or modify the determination and reply in writing by 9 restricted certified mail to the interested person within 10 fifteen days from the date of the receipt of the notice of 11 objection. Any modification to the prevailing wage rate 12 determination shall be effective on the date the modification 13 is published by the commissioner. 14 b. If the commissioner declines to modify the determination, 15 within ten days upon receiving receipt of the commissioner’s 16 decision, the interested person affected may submit in writing 17 the objection to the division by restricted certified mail, 18 stating the specified grounds of the objection. The department 19 of inspections and appeals shall be notified of the objection 20 and set a date for a hearing before an administrative law judge 21 on the objection, after giving notice by restricted certified 22 mail to the interested person and the division at least ten 23 days before the date of the hearing of the time and place of 24 the hearing. The hearing shall be held within forty-five days 25 after the objection is filed, and shall not be postponed or 26 reset for a later date except upon the consent, in writing, of 27 the interested person and the division. 28 7. The party requesting a hearing shall have the burden of 29 establishing that the annual prevailing wage rate determination 30 for that locality was not determined in accordance with this 31 chapter. If the party requesting a hearing under this section 32 objects to the commissioner’s failure to include a craft, 33 classification, or type of worker within the annual prevailing 34 wage rate determination in the locality, the objector shall 35 -9- LSB 1738YH (2) 84 je/rj 9/ 30

H.F. 89 have the burden of establishing that there is no existing 1 prevailing wage rate classification for the particular craft, 2 classification, or type of worker in any of the localities 3 under consideration. 4 8. The administrative law judge may in the administrative 5 law judge’s discretion hear each written objection filed 6 separately or consolidate for hearing any one or more written 7 objections filed with the division. At the hearing, the 8 division shall introduce into evidence the investigation it 9 instituted which formed the basis of its determination, and the 10 division or any interested objectors may introduce evidence 11 that is material to the determination. The administrative 12 law judge shall rule upon each written objection and make a 13 final determination, as the administrative law judge believes 14 the evidence warrants, and promptly serve a copy of the final 15 determination by personal service or restricted certified mail 16 on all parties to the proceedings. The administrative law 17 judge shall render a final determination within thirty days 18 after the conclusion of the hearing. 19 9. If proceedings to review judicially the final 20 determination of the administrative law judge are not 21 instituted as provided in this section, the determination 22 shall be final and binding. The provisions of section 17A.19 23 shall apply to and govern all proceedings. Appeals from all 24 final orders and judgments entered by the court in review of 25 the final determination of the administrative law judge may be 26 taken by any party to the action. In all reviews or appeals 27 under this chapter, the attorney general shall represent the 28 division and defend its determination. 29 10. This section does not give reason or provide cause for 30 an injunction to halt or delay any public improvement. 31 Sec. 7. NEW SECTION . 91F.6 Payment of prevailing wages 32 required. 33 1. Contractors and subcontractors engaged in a public 34 improvement shall pay not less than the current specified 35 -10- LSB 1738YH (2) 84 je/rj 10/ 30

H.F. 89 prevailing wage rates to all of their workers engaged in the 1 public improvement. However, this chapter does not prohibit 2 the payment of more than the prevailing wage rate to any 3 workers engaged in a public improvement. 4 2. All contractors and subcontractors required to pay the 5 prevailing wage rate under this chapter shall pay the wages 6 in legal tender, without any deduction for food, sleeping 7 accommodations, transportation, use of tools or safety 8 equipment, vehicle or equipment rental, or any other thing of 9 any kind or description. 10 Sec. 8. NEW SECTION . 91F.7 Requirements for public 11 improvements. 12 1. The public body awarding a contract for a public 13 improvement or otherwise undertaking a public improvement shall 14 specify in the call for bids for the contract that this chapter 15 applies to the public improvement. 16 2. If a public improvement requires the payment of 17 prevailing wage rates, the public body shall require the 18 contractor to execute a written instrument that not less 19 than the prevailing wage rate shall be paid to all workers 20 performing work on the public improvement. The written 21 instrument shall also contain a provision that if it is 22 found that any of the contractor’s workers engaged in the 23 public improvement has been paid at a wage rate less than the 24 prevailing wage rate required by this chapter, the public body 25 may terminate the contractor’s right to proceed with the work 26 and the contractor and its sureties shall be liable to the 27 public body for any excess costs occasioned by the failure to 28 pay the prevailing wage rate. The written instrument shall 29 have attached a list of the specified prevailing wage rates 30 for all crafts, classifications, or types of workers in the 31 locality for each worker needed to be included in the contract 32 for the public improvement. 33 3. If a contract is let for a public improvement requiring 34 the payment of prevailing wage rates, the public body 35 -11- LSB 1738YH (2) 84 je/rj 11/ 30

H.F. 89 awarding the contract shall cause to be inserted in the public 1 improvement specifications and contract a stipulation that not 2 less than the prevailing wage rate shall be paid to all workers 3 performing work under the contract. The contract shall also 4 contain a provision to the effect that if it is found that any 5 of the contractor’s workers engaged in the public improvement 6 has been paid at a wage rate less than the prevailing wage rate 7 required by this chapter, the public body may terminate the 8 contractor’s right to proceed with the work and the contractor 9 and its sureties shall be liable to the public body for any 10 excess costs occasioned by the failure to pay the prevailing 11 wage rate. All bid specifications shall list the specified 12 prevailing wage rates for all crafts, classifications, or 13 types of workers in the locality for each worker needed to be 14 included in the contract. 15 4. If a public improvement requires the payment of 16 prevailing wage rates, the contractor shall require any 17 subcontractors engaged by the contractor on the public 18 improvement to execute a written instrument that not less 19 than the prevailing wage rates shall be paid to all workers 20 performing work on the public improvement. The written 21 instrument shall also contain a provision that if it is 22 found that any of the subcontractor’s workers engaged in the 23 public improvement has been paid at a wage rate less than the 24 prevailing wage rate required by this chapter, the public body 25 may terminate the subcontractor’s right to proceed with the 26 work and the subcontractor and its sureties shall be liable to 27 the public body for any excess costs occasioned by the failure 28 to pay the prevailing wage rate. The written instrument shall 29 have attached a list of the specified prevailing wage rates 30 for all crafts, classifications, or types of workers in the 31 locality for each worker needed to be included in the contract. 32 5. If a subcontract is let for a public improvement 33 requiring the payment of the prevailing wage rate, the 34 contractor to whom the contract is awarded shall insert 35 -12- LSB 1738YH (2) 84 je/rj 12/ 30

H.F. 89 into the subcontract and into the public improvement project 1 specifications for each subcontract a written stipulation that 2 not less than the prevailing wage rate shall be paid to all 3 workers performing work under the subcontract. A subcontractor 4 shall insert into each lower-tiered subcontract a stipulation 5 that not less than the prevailing wage rate shall be paid 6 to all workers performing work under the subcontract. The 7 subcontract shall also contain a provision that if it is 8 found that any subcontractor’s workers engaged in the public 9 improvement have been paid at a wage rate less than the 10 prevailing wage rate required by this chapter, the public body 11 may terminate the subcontractor’s right to proceed with the 12 work and the subcontractor and its sureties shall be liable to 13 the public body for any excess costs occasioned by the failure 14 to pay the prevailing wage rate. All bid specifications shall 15 list the specified prevailing wage rates for all crafts, 16 classifications, or types of workers in the locality for each 17 worker needed to be included in the subcontract. 18 6. A contractor or subcontractor engaging in a public 19 improvement shall submit a performance bond in an amount 20 determined by the public body which bond shall include a 21 provision that will guarantee the payment of the prevailing 22 wage rates as required by the contract. 23 7. Before final payment is made by or on behalf of a public 24 body of any sum or sums due on a public improvement, the 25 treasurer of the public body or other officer or person charged 26 with the custody and disbursement of the funds of the public 27 body shall require the contractor and subcontractor to file a 28 written statement with the public body, in a form satisfactory 29 to the division, certifying to the amounts then due and owing 30 from the contractor and subcontractor to any and all workers 31 for wages due on account of the public improvement, setting 32 forth the names of the persons whose wages are unpaid and 33 the amount due to each respectively. The statement shall be 34 verified by the oath of the contractor or subcontractor, as the 35 -13- LSB 1738YH (2) 84 je/rj 13/ 30

H.F. 89 case may be, that the contractor or subcontractor has read the 1 statement certified by the contractor or subcontractor, knows 2 the contents, and that the statement is true in accordance with 3 the contractor’s or subcontractor’s own knowledge. However, 4 this chapter shall not impair the right of a contractor to 5 receive final payment from a public body because of the failure 6 of a subcontractor to comply with provisions of this chapter. 7 The treasurer of the public body or other officer or person 8 charged with the custody and disbursement of the funds of the 9 public body shall withhold the amount, if any, listed on the 10 verified statement filed pursuant to this section for the 11 benefit of the worker whose wages are unpaid as shown by the 12 verified statement filed by the contractor or subcontractor, 13 and the public body shall pay directly to any worker the amount 14 shown by the statement to be due to the worker for the wages. 15 Payment shall discharge the obligation of the contractor or 16 subcontractor to the person receiving the payment to the extent 17 of the amount of the payment. 18 8. The public body awarding a contract for a public 19 improvement or otherwise undertaking a public improvement shall 20 notify the commissioner in writing, on a form prescribed by 21 the commissioner, if a contract subject to the provisions of 22 this chapter has been awarded. The public body shall file 23 the notification with the commissioner within thirty days 24 after the contract is awarded or before commencement of the 25 public improvement, and shall include a list of all first-tier 26 subcontractors. 27 Sec. 9. NEW SECTION . 91F.8 Federal public improvements —— 28 not applicable. 29 The provisions of this chapter shall not be applicable 30 to public improvements financed entirely by federal funds 31 which require a prevailing wage rate determination by the 32 United States department of labor. However, unless a federal 33 provision applies, if a public improvement is financed in part 34 by a public body and in part by federal funds, the higher of the 35 -14- LSB 1738YH (2) 84 je/rj 14/ 30

H.F. 89 prevailing wage rates shall prevail for the public improvement. 1 Sec. 10. NEW SECTION . 91F.9 Records required. 2 1. While participating in a public improvement, the 3 contractor and each subcontractor shall do all of the 4 following: 5 a. Make and keep, for a period of not less than three years, 6 accurate records of all workers employed by the contractor or 7 subcontractor on the public improvement. The records shall 8 include each worker’s name, address, telephone number when 9 available, social security number, trade classification, the 10 hourly wages paid in each pay period, the number of hours 11 worked each day, and the starting and ending times of work each 12 day. 13 b. Submit weekly a certified payroll to the public body 14 in charge of the public improvement. The certified payroll 15 shall consist of a complete copy of the records identified in 16 paragraph “a” . The certified payroll shall be accompanied by a 17 statement signed by the contractor or subcontractor which avers 18 that the records are true and accurate and the hourly wages 19 paid to each worker are not less than the prevailing wage rate 20 required by this chapter. 21 2. The public body in charge of the public improvement 22 shall keep the records submitted in accordance with subsection 23 1, paragraph “b” , for a period of not less than three years. 24 The records shall be considered public records and be made 25 available in accordance with chapter 22. Personal information 26 submitted in accordance with subsection 1, paragraph “a” , 27 including names, addresses, social security numbers, telephone 28 numbers, and other identifying information shall remain 29 confidential and shall not be made public. 30 3. The contractor and each subcontractor shall make 31 available for inspection the records identified in subsection 32 1, paragraph “a” , to the public body in charge of the public 33 improvement, its officers and agents, and to the division. 34 4. For the purpose of verifying the accuracy of the records 35 -15- LSB 1738YH (2) 84 je/rj 15/ 30

H.F. 89 submitted pursuant to this section, the contractor and each 1 subcontractor shall make its workers available at the site of 2 the public improvement for interview by the public body in 3 charge of the public improvement, its officers and agents, and 4 the division. 5 5. Contractors and subcontractors performing work on public 6 improvements subject to this chapter shall post the prevailing 7 wage rates for each craft, classification, or type of workers 8 involved in the public improvement in a prominent and easily 9 accessible place at the site of the public improvement or at 10 the place or places used by the contractor or subcontractor to 11 pay workers their wages. 12 Sec. 11. NEW SECTION . 91F.10 Powers of commissioner. 13 The commissioner shall do all of the following: 14 1. Inquire diligently about any complaint of a violation of 15 this chapter, institute actions for penalties prescribed, and 16 enforce generally the provisions of this chapter. 17 2. Sue for injunctive relief against the awarding of a 18 contract, the undertaking of a public improvement, or the 19 continuation of a public improvement when the prevailing wage 20 rate requirements of this chapter have not been met. 21 3. Investigate and ascertain the wages of workers engaged in 22 any public improvement in this state. 23 4. a. Enter and inspect the place of business or employment 24 of a contractor, subcontractor, or workers employed on a public 25 improvement in this state, for the purpose of examining and 26 inspecting books, registers, payrolls, and other records of a 27 contractor or subcontractor that in any way relate to or have a 28 bearing upon the question of wages, hours, and other conditions 29 of employment of workers covered under this chapter. 30 b. Copy the books, registers, payrolls, and other 31 records as the commissioner or the commissioner’s authorized 32 representative deems necessary or appropriate. 33 c. Question the workers for the purpose of ascertaining 34 whether the provisions of this chapter have been and are being 35 -16- LSB 1738YH (2) 84 je/rj 16/ 30

H.F. 89 complied with. 1 d. Administer oaths, take or cause to be taken depositions 2 of witnesses, and require by subpoena the attendance and 3 testimony of witnesses and the production of all books, 4 registers, payrolls, and other evidence relative to the matter 5 under investigation or hearing. 6 5. Require from a contractor or subcontractor full and 7 correct statements in writing, including sworn statements, 8 with respect to wages, hours, names, addresses, and other 9 information pertaining to its workers and their employment, 10 as the commissioner or the commissioner’s authorized 11 representative may deem necessary or appropriate. 12 6. Require a contractor or subcontractor to file, within 13 ten days of receipt of a request, any records enumerated in 14 subsections 3 and 4, sworn as to their validity and accuracy as 15 required by subsection 5. If the contractor or subcontractor 16 fails to provide the requested records within ten days, the 17 commissioner may direct, within fifteen days after the end 18 of the ten-day period, that the fiscal or financial officer 19 charged with the custody and disbursements of the funds of the 20 public body, which contracted for construction of the public 21 improvement or undertook the public improvement, to immediately 22 withhold from payment to the contractor or subcontractor 23 up to twenty-five percent of the amount to be paid to the 24 contractor or subcontractor under the terms of the contract 25 or written instrument under which the public improvement is 26 being performed. The amount withheld shall be immediately 27 released upon receipt by the public body of a notice from 28 the commissioner indicating that the request for records as 29 required by this section has been satisfied. 30 7. If a contractor or subcontractor fails to provide 31 requested records in accordance with subsection 6 within ten 32 days, direct, within fifteen days after the end of the ten-day 33 period, the fiscal or financial officer charged with the 34 custody and disbursements of the funds of the public body, 35 -17- LSB 1738YH (2) 84 je/rj 17/ 30

H.F. 89 which contracted for construction of the public improvement or 1 undertook the public improvement, to pay directly to workers 2 employed by the contractor or subcontractor from the amount 3 withheld from the contractor or subcontractor pursuant to 4 subsection 6 any prevailing wage rates found to be due and 5 payable to the workers. 6 8. Contract with a person registered as a public accountant 7 under chapter 542 to conduct an audit of a contractor, 8 subcontractor, or public body. 9 Sec. 12. NEW SECTION . 91F.11 Notice of violations. 10 1. For purposes of this section: 11 a. “Accurate records” means the payroll records required 12 to be submitted to the public body in charge of the public 13 improvement as required by section 91F.9. “Accurate records” 14 also means the hourly rate of contribution and costs paid for 15 fringe benefits and whether the contributions and costs of the 16 fringe benefits were paid into a fund or paid directly to the 17 worker. 18 b. “Decision” means a determination by the division that a 19 single violation of this chapter has occurred, warranting the 20 commissioner to issue a notice of violation to a contractor or 21 subcontractor. 22 c. “Notice of second violation” is a formal written notice 23 issued by the division advising a contractor or subcontractor 24 that a second or subsequent violation has occurred within three 25 years from the date of the notice of a first violation. 26 d. “Notice of violation” means a formal written notice 27 issued by the division to a contractor or subcontractor 28 that the division has made a decision that the contractor or 29 subcontractor has violated this chapter. 30 e. “Violation” means a written decision by the division that 31 a contractor or subcontractor has done one of the following: 32 (1) Failed or refused to pay the prevailing wage rate to one 33 or more workers as required by this chapter. 34 (2) Failed to keep accurate records as required by this 35 -18- LSB 1738YH (2) 84 je/rj 18/ 30

H.F. 89 chapter. 1 (3) Failed to produce for the division accurate records or 2 produced records not in compliance with this chapter. 3 (4) Refused to submit records or testimony to the division 4 in response to a subpoena issued in accordance with this 5 chapter. 6 (5) Refused to comply with the certified payroll provision 7 of section 91F.9. 8 (6) Refused the division access, at any reasonable hour at 9 a location within the state, to inspect the contractor’s or 10 subcontractor’s records as required by this chapter. 11 (7) Failed to insert into each subcontract or lower-tiered 12 subcontract and into the public improvement specifications 13 for each subcontract or lower-tiered subcontract or provide a 14 written instrument if no contract exists, a written stipulation 15 that not less than the prevailing wage rate be paid as required 16 by this chapter, and a statement that if it is found that a 17 subcontractor’s workers engaged in the public improvement have 18 been paid at a rate of wages less than the prevailing wage rate 19 required to be paid by the contract, the public body shall 20 terminate the subcontractor’s right to proceed with the work. 21 (8) Failed to obtain a bond in the proper amount that 22 guarantees the payment of the prevailing wage rates required in 23 the contract. 24 (9) Failed to post the prevailing wage rates as required by 25 this chapter. 26 2. After receipt of a complaint or on the division’s 27 initiative, the commissioner shall review the investigative 28 file to determine whether a violation has occurred for 29 which the contractor or subcontractor must be given notice. 30 All information and observations made during an audit or 31 investigation shall be considered and shall constitute the 32 basis for the division’s decision that this chapter has 33 been violated and that a notice of violation is required 34 to be issued. The notice of violation shall identify the 35 -19- LSB 1738YH (2) 84 je/rj 19/ 30