Senate
File
276
-
Introduced
SENATE
FILE
276
BY
SODDERS
A
BILL
FOR
An
Act
relating
to
reciprocal
preferences
for
bidders
on
public
1
improvement
contracts
and
including
effective
date
and
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
Section
73A.21,
Code
2011,
is
amended
to
read
as
1
follows:
2
73A.21
Reciprocal
resident
bidder
and
resident
labor
force
3
preference
by
state,
its
agencies,
and
political
subdivisions
——
4
penalties
.
5
1.
For
purposes
of
this
section
:
6
a.
“Commissioner”
means
the
labor
commissioner
appointed
7
pursuant
to
section
91.2,
or
the
labor
commissioner’s
designee.
8
b.
“Division”
means
the
division
of
labor
of
the
department
9
of
workforce
development.
10
c.
“Nonresident
bidder”
means
a
person
or
entity
who
does
11
not
meet
the
definition
of
a
resident
bidder.
12
d.
“Public
body”
means
the
state
and
any
of
its
political
13
subdivisions,
including
a
school
district,
public
utility,
or
14
the
state
board
of
regents.
15
a.
e.
“Public
improvement”
means
public
improvements
as
16
defined
in
section
73A.1
a
building
or
other
construction
work
17
to
be
paid
for
in
whole
or
in
part
by
the
use
of
funds
of
the
18
state,
its
agencies,
and
any
of
its
political
subdivisions
and
19
includes
road
construction,
reconstruction,
and
maintenance
20
projects.
21
f.
“Public
utility”
includes
municipally
owned
utilities
and
22
municipally
owned
waterworks.
23
b.
g.
“Resident
bidder”
means
a
person
or
entity
authorized
24
to
transact
business
in
this
state
and
having
a
place
of
25
business
for
transacting
business
within
the
state
at
which
26
it
is
conducting
and
has
conducted
business
for
at
least
six
27
months
three
years
prior
to
the
date
of
the
first
advertisement
28
for
the
public
improvement
and
in
the
case
of
a
corporation,
29
having
at
least
fifty
percent
of
its
common
stock
owned
by
30
residents
of
this
state
.
If
another
state
or
foreign
country
31
has
a
more
stringent
definition
of
a
resident
bidder,
the
more
32
stringent
definition
is
applicable
as
to
bidders
from
that
33
state
or
foreign
country.
34
h.
“Resident
labor
force
preference”
means
a
requirement
in
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which
all
or
a
portion
of
a
labor
force
working
on
a
public
1
improvement
is
a
resident
of
a
particular
state
or
country.
2
2.
Notwithstanding
this
chapter
,
chapter
73
,
chapter
309
,
3
chapter
310
,
chapter
331
,
or
chapter
384
,
when
a
contract
for
a
4
public
improvement
is
to
be
awarded
to
the
lowest
responsible
5
bidder,
a
resident
bidder
shall
be
allowed
a
preference
as
6
against
a
nonresident
bidder
from
a
state
or
foreign
country
7
which
if
that
state
or
foreign
country
gives
or
requires
a
8
any
preference
to
bidders
from
that
state
or
foreign
country
,
9
including
but
not
limited
to
any
preference
to
bidders,
the
10
imposition
of
any
type
of
labor
force
preference,
or
any
other
11
form
of
preferential
treatment
to
bidders
or
laborers
from
that
12
state
or
foreign
country
.
The
preference
is
allowed
shall
13
be
equal
to
the
preference
given
or
required
by
the
state
or
14
foreign
country
in
which
the
nonresident
bidder
is
a
resident.
15
In
the
instance
of
a
resident
labor
force
preference,
a
16
nonresident
bidder
shall
apply
the
same
resident
labor
force
17
preference
to
a
public
improvement
in
this
state
as
would
be
18
required
in
the
construction
of
a
public
improvement
by
the
19
state
or
foreign
country
in
which
the
nonresident
bidder
is
a
20
resident.
21
3.
This
section
applies
to
the
state,
its
agencies,
and
any
22
political
subdivisions
of
the
state.
23
4.
3.
If
it
is
determined
that
this
may
cause
denial
of
24
federal
funds
which
would
otherwise
be
available,
or
would
25
otherwise
be
inconsistent
with
requirements
of
any
federal
law
26
or
regulation
,
this
section
shall
be
suspended,
but
only
to
the
27
extent
necessary
to
prevent
denial
of
the
funds
or
to
eliminate
28
the
inconsistency
with
federal
requirements.
29
4.
The
public
body
involved
in
a
public
improvement
shall
30
require
a
nonresident
bidder
to
specify
on
all
project
bid
31
specifications
and
contract
documents
whether
any
preference
32
as
described
in
subsection
2
is
in
effect
in
the
nonresident
33
bidder’s
state
or
country
of
domicile
at
the
time
of
a
bid
34
submittal.
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5.
The
commissioner
and
the
division
shall
administer
and
1
enforce
this
section,
and
the
commissioner
shall
adopt
rules
2
for
the
administration
and
enforcement
of
this
section
as
3
provided
in
section
91.6.
4
6.
The
commissioner
shall
have
the
following
powers
and
5
duties
for
the
purposes
of
this
section:
6
a.
The
commissioner
may
hold
hearings
and
investigate
7
charges
of
violations
of
this
section.
8
b.
The
commissioner
may,
consistent
with
due
process
of
law,
9
enter
any
place
of
employment
to
inspect
records
concerning
10
labor
force
residency,
to
question
an
employer
or
employee,
and
11
to
investigate
such
facts,
conditions,
or
matters
as
are
deemed
12
appropriate
in
determining
whether
any
person
has
violated
the
13
provisions
of
this
section.
The
commissioner
shall
only
make
14
such
an
entry
in
response
to
a
written
complaint.
15
c.
The
commissioner
shall
develop
a
written
complaint
form
16
applicable
to
this
section
and
make
it
available
in
division
17
offices
and
on
the
department
of
workforce
development’s
18
internet
site.
19
d.
The
commissioner
may
sue
for
injunctive
relief
against
20
the
awarding
of
a
contract,
the
undertaking
of
a
public
21
improvement,
or
the
continuation
of
a
public
improvement
in
22
response
to
a
violation
of
this
section.
23
e.
The
commissioner
may
investigate
and
ascertain
the
24
residency
of
a
worker
engaged
in
any
public
improvement
in
this
25
state.
26
f.
The
commissioner
may
administer
oaths,
take
or
cause
to
27
be
taken
deposition
of
witnesses,
and
require
by
subpoena
the
28
attendance
and
testimony
of
witnesses
and
the
production
of
all
29
books,
registers,
payrolls,
and
other
evidence
relevant
to
a
30
matter
under
investigation
or
hearing.
31
g.
The
commissioner
shall
require
a
contractor
or
32
subcontractor
to
file,
within
ten
days
of
receipt
of
a
request,
33
any
records
enumerated
in
subsection
8.
If
the
contractor
or
34
subcontractor
fails
to
provide
the
requested
records
within
ten
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days,
the
commissioner
may
direct,
within
fifteen
days
after
1
the
end
of
the
ten-day
period,
that
the
fiscal
or
financial
2
office
charged
with
the
custody
and
disbursement
of
funds
of
3
the
public
body
that
contracted
for
construction
of
the
public
4
improvement
or
undertook
the
public
improvement,
to
immediately
5
withhold
from
payment
to
the
contractor
or
subcontractor
6
up
to
twenty-five
percent
of
the
amount
to
be
paid
to
the
7
contractor
or
subcontractor
under
the
terms
of
the
contract
8
or
written
instrument
under
which
the
public
improvement
is
9
being
performed.
The
amount
withheld
shall
be
immediately
10
released
upon
receipt
by
the
public
body
of
a
notice
from
11
the
commissioner
indicating
that
the
request
for
records
as
12
required
by
this
section
has
been
satisfied.
13
7.
While
participating
in
a
public
improvement,
a
14
nonresident
bidder
domiciled
in
a
state
or
country
that
15
has
established
a
resident
labor
force
preference
shall
16
make
and
keep,
for
a
period
of
not
less
than
three
years,
17
accurate
records
of
all
workers
employed
by
the
contractor
or
18
subcontractor
on
the
public
improvement.
The
records
shall
19
include
each
worker’s
name,
address,
telephone
number
when
20
available,
social
security
number,
trade
classification,
and
21
the
starting
and
ending
time
of
employment.
22
8.
Any
person
or
entity
that
violates
the
provisions
of
23
this
section
is
subject
to
a
civil
penalty
in
an
amount
not
to
24
exceed
one
thousand
dollars
for
each
violation
found
in
a
first
25
investigation
by
the
division,
not
to
exceed
five
thousand
26
dollars
for
each
violation
found
in
a
second
investigation
27
by
the
division,
and
not
to
exceed
fifteen
thousand
dollars
28
for
a
third
or
subsequent
violation
found
in
any
subsequent
29
investigation
by
the
division.
Each
violation
of
this
section
30
for
each
worker
and
for
each
day
the
violation
continues
31
constitutes
a
separate
and
distinct
violation.
In
determining
32
the
amount
of
the
penalty,
the
division
shall
consider
the
33
appropriateness
of
the
penalty
to
the
person
or
entity
charged,
34
upon
determination
of
the
gravity
of
the
violations.
The
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collection
of
these
penalties
shall
be
enforced
in
a
civil
1
action
brought
by
the
attorney
general
on
behalf
of
the
2
division.
3
9.
A
party
seeking
review
of
the
division’s
determination
4
pursuant
to
this
section
may
file
a
written
request
for
an
5
informal
conference.
The
request
must
be
received
by
the
6
division
within
fifteen
days
after
the
date
of
issuance
of
7
the
division’s
determination.
During
the
conference,
the
8
party
seeking
review
may
present
written
or
oral
information
9
and
arguments
as
to
why
the
division’s
determination
should
10
be
amended
or
vacated.
The
division
shall
consider
the
11
information
and
arguments
presented
and
issue
a
written
12
decision
advising
all
parties
of
the
outcome
of
the
conference.
13
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
14
immediate
importance,
takes
effect
upon
enactment.
15
Sec.
3.
APPLICABILITY.
This
Act
applies
to
all
public
16
improvement
projects,
and
to
public
improvement
contracts
17
entered
into
on
or
after
July
1,
2011.
18
EXPLANATION
19
This
bill
requires
the
labor
commissioner
to
administer
20
and
enforce
Code
section
73A.21,
which
allows
the
state
21
and
political
subdivisions
awarding
a
contract
for
a
public
22
improvement
to
give
a
preference
to
an
Iowa
resident
bidder
23
over
a
nonresident
bidder.
The
preference
must
be
reciprocal
24
to
any
preference
given
to
in-state
resident
bidders
over
25
nonresident
bidders
by
the
state
or
foreign
country
of
a
26
nonresident
bidder.
The
bill
directs
the
labor
commissioner
to
27
adopt
rules
as
necessary
to
administer
Code
section
73A.21.
28
The
bill
includes
in
the
reciprocity
requirement
nonresident
29
bidders
from
a
state
or
foreign
country
which
gives
any
type
30
of
labor
force
preference
or
any
other
form
of
preference
31
to
resident
bidders
or
laborers.
The
bill
provides
that
if
32
the
provisions
of
Code
section
73A.21
may
cause
denial
of
33
federal
funds
which
would
otherwise
be
available,
or
would
34
otherwise
be
inconsistent
with
requirements
of
any
federal
law
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or
regulation,
the
Code
section
will
be
suspended,
but
only
1
to
the
extent
necessary
to
prevent
denial
of
the
funds
or
to
2
eliminate
the
inconsistency
with
federal
requirements.
The
3
bill
requires
a
public
body
involved
in
a
public
improvement
to
4
require
all
nonresident
bidders
to
specify
on
all
project
bid
5
specifications
and
contract
documents
whether
the
nonresident
6
bidder’s
state
or
country
of
residence
has
any
type
of
resident
7
bidder
preference
in
effect
at
the
time
of
a
bid
submittal.
8
The
bill
provides
the
labor
commissioner
with
certain
powers
9
relating
to
nonresident
bidders
for
public
improvement
projects
10
to
enforce
Code
section
73A.21.
The
bill
provides
the
labor
11
commissioner
with
investigative
powers
concerning
nonresident
12
bidders.
Such
powers
include
the
power
to
hold
hearings,
to
13
enter
a
place
of
employment
to
inspect
records
regarding
labor
14
force
residency,
to
question
employees,
and
to
take
depositions
15
and
subpoenas.
The
bill
provides
that
the
labor
commissioner
16
may
sue
for
injunctive
relief
for
violations
of
Code
section
17
73A.21.
The
bill
requires
the
labor
commissioner
to
develop
18
a
written
complaint
form
for
violations.
The
bill
requires
a
19
nonresident
contractor
domiciled
in
a
state
or
country
that
20
has
a
resident
labor
force
preference
to
keep
for
at
least
21
three
years
accurate
records
containing
certain
identifying
22
information
including
residency
for
all
workers
employed
by
23
the
contractor.
The
bill
provides
that
the
labor
commissioner
24
may
direct
that
up
to
25
percent
of
the
contract
price
be
25
withheld
from
the
contractor
if
the
contractor
does
not
file
26
such
records
until
the
records
are
filed.
The
bill
provides
27
for
a
civil
penalty
of
$1,000
for
each
violation
found
during
28
a
first
investigation,
$5,000
for
each
violation
found
during
29
a
second
investigation,
and
$15,000
for
each
violation
found
30
during
a
subsequent
investigation.
The
bill
provides
that
a
31
separate
and
distinct
violation
occurs
for
each
worker
employed
32
by
the
contractor
for
each
day
the
worker
is
employed
by
the
33
contractor.
The
bill
provides
for
a
review
process
with
the
34
division
of
labor
and
sets
out
procedural
requirements.
The
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bill
modifies
and
adds
applicable
definitions
for
Code
section
1
73A.21.
2
The
bill
is
effective
upon
enactment.
3
The
bill
applies
to
all
public
improvement
projects,
and
to
4
public
improvement
contracts
entered
into
on
or
after
July
1,
5
2011.
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