House File 38 - Introduced HOUSE FILE 38 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 remedies and penalties and including effective 3 date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1286YH (3) 86 je/rj

H.F. 38 Section 1. Section 84A.5, subsection 4, Code 2015, 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. Section 91.4, subsection 2, Code 2015, is amended 8 to read as follows: 9 2. The director of the department of workforce development, 10 in consultation with the labor commissioner, shall, at the 11 time provided by law, make an annual report to the governor 12 setting forth in appropriate form the business and expense of 13 the division of labor services for the preceding year, the 14 number of remedial actions taken under chapter 89A , the number 15 of disputes or violations processed by the division and the 16 disposition of the disputes or violations, and other matters 17 pertaining to the division which are of public interest, 18 together with recommendations for change or amendment of the 19 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 20 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 21 and the recommendations, if any, shall be transmitted by the 22 governor to the first general assembly in session after the 23 report is filed. 24 Sec. 3. NEW SECTION . 91F.1 Short title. 25 This chapter shall be known and may be cited as the “Public 26 Improvement Quality Protection Act” . 27 Sec. 4. NEW SECTION . 91F.2 Public policy. 28 It is in the public interest that public improvements 29 are completed by the best means and highest quality of labor 30 reasonably available, and that workers working on public 31 improvements be compensated according to the real value of the 32 services they perform. It is the policy of this state that the 33 wages of workers working on public improvements should be at 34 least equal to the prevailing wage rates paid for similar work 35 -1- LSB 1286YH (3) 86 je/rj 1/ 31

H.F. 38 by responsible contractors in the community as a whole in order 1 to accomplish all of the following: 2 1. Protect workers and their contractors and subcontractors 3 from the effects of serious and unfair competition resulting 4 from wage levels detrimental to efficiency and well-being. 5 2. Ensure that contractors compete with one another 6 on the basis of the ability to perform work competently 7 and efficiently while maintaining community-established 8 compensation standards. 9 3. Recognize that local participation in public 10 improvements and family wage income and benefits are essential 11 to the protection of community standards. 12 4. Encourage training and education of workers to industry 13 skills standards. 14 5. Encourage contractors and subcontractors to use funds 15 allocated for employee fringe benefits for the actual purchase 16 of those benefits. 17 Sec. 5. NEW SECTION . 91F.3 Definitions. 18 As used in this chapter, unless the context otherwise 19 requires: 20 1. “Commissioner” means the labor commissioner appointed 21 pursuant to section 91.2. 22 2. “Contractor” or “subcontractor” means a person who 23 undertakes, offers to undertake, purports to have the capacity 24 to undertake, or submits a bid, individually or through others, 25 to engage in a public improvement. 26 3. “Custom fabrication” means the fabrication of plumbing, 27 heating, cooling, ventilation, architectural systems, 28 structural systems, exhaust duct systems, or mechanical 29 insulation. 30 4. “Division” means the division of labor of the department 31 of workforce development. 32 5. a. “Fringe benefits” means the following for the 33 provision or purchase of any of the benefits enumerated in 34 paragraph “b” : 35 -2- LSB 1286YH (3) 86 je/rj 2/ 31

H.F. 38 (1) The contribution irrevocably made by a contractor or 1 subcontractor to a trustee or to a third person pursuant to a 2 plan, fund, or program. 3 (2) The costs to the contractor or subcontractor which 4 may be reasonably anticipated in providing benefits to 5 workers pursuant to an enforceable commitment to carry out a 6 financially responsible plan or program, given in writing to 7 the workers affected. 8 b. (1) Medical or hospital care. 9 (2) Pensions or annuities on retirement or death. 10 (3) Supplemental unemployment benefits. 11 (4) Life insurance. 12 (5) Disability and sickness insurance. 13 (6) Accident insurance for nonwork-related accidents. 14 (7) Vacation or holiday pay. 15 (8) Defraying costs of apprenticeship programs approved by 16 and registered with the United States department of labor’s 17 office of apprenticeship. 18 6. “Interested party” means any of the following: 19 a. A contractor who submits a bid for the purpose of 20 securing the award of a contract for a public improvement. 21 b. A subcontractor of a contractor mentioned in a bid 22 referred to in paragraph “a” . 23 c. A worker employed by a contractor or subcontractor 24 described in either paragraph “a” or “b” . 25 d. A labor organization that represents workers engaged 26 in the same craft or classification as workers employed by a 27 contractor or subcontractor described in either paragraph “a” 28 or “b” and that exists, in whole or in part, for the purpose 29 of negotiating with employers concerning the wages, hours, or 30 terms and conditions of employment of employees. 31 e. A joint labor-management committee established pursuant 32 to the federal Labor Management Cooperation Act of 1978, 29 33 U.S.C. §175a. 34 7. “Locality” means a county of this state. 35 -3- LSB 1286YH (3) 86 je/rj 3/ 31

H.F. 38 8. “Maintenance work” means the repair of existing public 1 improvements when the size, type, or extent of the public 2 improvement is not changed or increased. 3 9. “Prevailing wage rate” means the hourly wage plus 4 fringe benefits, which the commissioner determines prevails in 5 accordance with this chapter, including all of the following: 6 a. Apprentice ratios and the prevailing apprentice pay 7 levels for each craft, classification, or type of worker which 8 the commissioner determines prevails in accordance with section 9 91F.5. 10 b. A prevailing rate for overtime pay for work in excess 11 of the normal prevailing workday and for weekend overtime pay 12 for each craft, classification, or type of worker, including 13 apprentices. 14 c. Holiday pay for holidays that prevail in the locality in 15 which the work is being performed. 16 10. “Public body” means the state and any of its political 17 subdivisions, including but not limited to a county, city, 18 township, school district, state board of regents, and public 19 utility. For the purposes of this chapter, “public utility” 20 includes municipally owned utilities and municipally owned 21 waterworks. 22 11. a. “Public improvement” means any of the following that 23 meets the criteria set out in paragraphs “b” and “c” : 24 (1) Construction, alteration, reconstruction, repair, 25 rehabilitation, refinishing, refurbishing, remodeling, 26 renovation, custom fabricating, maintenance, landscaping, 27 improving, moving, wrecking, painting, decorating, or 28 demolishing of, or adding to or subtracting from any building, 29 structure, highway, road, street, bridge, alley, sewer, ditch, 30 sewage disposal plant, waterworks, parking facility, railroad, 31 excavation or other structure, project, development, or 32 improvement, or any part thereof undertaken by a public body, 33 including any of the following related activities: 34 (a) The erection of scaffolding or other structures or 35 -4- LSB 1286YH (3) 86 je/rj 4/ 31

H.F. 38 works. 1 (b) The maintenance, repair, assembly, or disassembly of 2 equipment. 3 (c) The testing of materials. 4 (d) The hauling of refuse from a site to an outside disposal 5 location. 6 (e) The cleaning of grounds or structures. 7 (f) The addition to or fabrication into any structure, 8 project, development, or improvement of any material or article 9 of merchandise undertaken by a public body. 10 (2) The preparation and removal of roadway construction 11 zones, lane closures, flagging, or traffic diversions 12 undertaken by a public body. 13 (3) The installation, repair, maintenance, or calibration 14 of monitoring equipment for underground storage tanks 15 undertaken by a public body. 16 (4) Work that is performed on any property or premises 17 dedicated exclusively or nearly so to the completion of a 18 public improvement, and transportation of supplies, material, 19 and equipment to or from the property or premises undertaken 20 by a public body. 21 b. Work on the public improvement is performed under public 22 supervision or direction, and the work is financed wholly or 23 in part from public funds, or if at the time of commencement 24 of the public improvement all of the following conditions with 25 respect to the public improvement are met: 26 (1) Not less than fifty-five percent of the structure is 27 leased by a public body, or is subject to an agreement to be 28 subsequently leased by a public body. 29 (2) The portion of the structure that is leased or subject 30 to an agreement to be subsequently leased by a public body 31 measures more than twenty thousand square feet. 32 c. The public improvement has an estimated total cost that 33 exceeds twenty-five thousand dollars. 34 12. “Worker” means an individual who performs any 35 -5- LSB 1286YH (3) 86 je/rj 5/ 31

H.F. 38 labor or service for a contractor or subcontractor on a 1 public improvement but does not include an individual when 2 transporting a seller, supplier, manufacturer, or processor of 3 materials or equipment. The individual is deemed an employee 4 of a contractor or subcontractor unless all of the following 5 apply: 6 a. The individual provides labor or services free from the 7 direction or control over the means and manner of providing the 8 labor or services, subject only to the right of the person for 9 whom the labor or services are provided to specify the desired 10 results. 11 b. The individual providing the labor or services is 12 responsible for obtaining business registrations or licenses 13 required by state law or local ordinance to provide the labor 14 or services. 15 c. The individual providing the labor or services furnishes 16 the tools and equipment necessary to provide the labor or 17 services. 18 d. The individual providing the labor or services has the 19 authority to hire and fire employees to perform the labor or 20 services. 21 e. Payment for the labor or services is made upon 22 completion of the performance of specific portions of a public 23 improvement, or is made on the basis of a periodic retainer. 24 f. The individual providing the labor or services represents 25 to the public that the labor or services are to be provided 26 by an independently established business. An individual is 27 engaged in an independently established business when four or 28 more of the following circumstances exist: 29 (1) Labor or services are primarily performed at a location 30 separate from the individual’s residence or in a specified 31 portion of the residence that is set aside for performing labor 32 or services. 33 (2) Commercial advertising or business cards are purchased 34 by the individual, or the individual is a member of a trade or 35 -6- LSB 1286YH (3) 86 je/rj 6/ 31

H.F. 38 professional association. 1 (3) Telephone or electronic mail listings used by the 2 individual for the labor or services are different from the 3 individual’s personal listings. 4 (4) Labor or services are performed only pursuant to a 5 written contract. 6 (5) Labor or services are performed for two or more persons 7 or entities within a period of one year. 8 (6) The individual assumes financial responsibility 9 for errors and omissions in the performance of the labor or 10 services as evidenced by insurance, performance bonds, and 11 warranties relating to the labor or services provided. 12 Sec. 6. NEW SECTION . 91F.4 Administration. 13 The commissioner and the division shall administer this 14 chapter. 15 Sec. 7. NEW SECTION . 91F.5 Determination of prevailing 16 wages. 17 1. The commissioner shall determine annually and publish, 18 on the first business day of July, the prevailing wage rates 19 by locality for each craft, classification, or type of worker 20 needed to perform work on public improvements. The rates shall 21 be conclusive for one year from the date of publication unless 22 superseded within the one year by a later publication of the 23 commissioner, or for a longer period as provided in subsection 24 5. 25 2. The commissioner shall announce all prevailing wage rate 26 determinations by locality and give notice by posting them 27 on the portion of the department of workforce development’s 28 internet site related to the division. A printed version of 29 the prevailing wage rates for the state shall be available to 30 the public upon request to the division. 31 3. The public body awarding any contract for a public 32 improvement, or otherwise undertaking any public improvement, 33 shall obtain from the internet site the prevailing wage rate 34 in the locality in which work on the public improvement is 35 -7- LSB 1286YH (3) 86 je/rj 7/ 31

H.F. 38 to be performed for each craft, classification, or type of 1 worker needed to perform work on the public improvement. 2 After a public improvement contract is awarded, or a public 3 improvement is otherwise undertaken, the prevailing wage 4 rate published by the commissioner and stated in the public 5 body’s public improvement procurement documents shall remain 6 in effect throughout the duration of the public improvement 7 unless superseded by a later determination and publication by 8 the commissioner, or unless multiyear prevailing wage rates 9 have been published by the commissioner at the time the public 10 improvement procurement documents were released. 11 4. a. In determining the annual prevailing wage rate 12 for any craft, classification, or type of worker, the 13 commissioner shall ascertain and consider the applicable 14 wage rates and fringe benefits established by collective 15 bargaining agreements, the prevailing wage rate determinations 16 that may exist for federal public improvements within the 17 locality and other data obtained by the department during any 18 prevailing wage rate survey of contractors who participate in 19 an apprenticeship program approved by and registered with the 20 United States department of labor’s office of apprenticeship, 21 who provide health insurance and retirement benefits for their 22 workers, and who are registered with the division. Based 23 upon these considerations, the commissioner shall calculate 24 the prevailing wage rates based on the wage rate plus fringe 25 benefits most often occurring for each craft, classification, 26 or other type of worker within each locality. 27 b. The minimum annual prevailing wage rate determination 28 established by the department shall not be lower than the 29 prevailing wage rate determination that may exist for federal 30 public improvements within the locality and in the nearest 31 labor market area. 32 c. None of the fringe benefits enumerated in this chapter 33 may be considered in the determination of prevailing wage 34 rates if the contractor or subcontractor is required by other 35 -8- LSB 1286YH (3) 86 je/rj 8/ 31

H.F. 38 federal, state, or local law to provide such fringe benefits. 1 5. If the commissioner determines that the prevailing 2 wage rate for any craft, classification, or type of worker 3 is the rate established by a collective bargaining agreement 4 applicable in the locality, the commissioner may adopt that 5 rate by reference and that determination shall be effective 6 for the life of the agreement or until the commissioner adopts 7 another rate. 8 6. a. At any time within fifteen days after the division 9 has published on the department of workforce development’s 10 internet site the annual prevailing wage rates for each 11 classification, craft, or other type of worker in the locality, 12 any interested person affected may object to the determination 13 or the part of the determination as the interested person 14 may deem objectionable by filing a written notice with the 15 commissioner by restricted certified mail as defined in 16 section 618.15. When objecting to a prevailing wage rate 17 determination, the interested person shall submit, as a 18 part of the written notice, the prevailing wage rate the 19 interested person believes to be the correct prevailing wage 20 rate determination, stating the specific grounds to support 21 that position. Upon receipt of the notice of objection, the 22 commissioner shall reconsider the determination and shall 23 affirm or modify the determination and reply in writing by 24 restricted certified mail to the interested person within 25 fifteen days from the date of the receipt of the notice of 26 objection. Any modification to the prevailing wage rate 27 determination shall be effective on the date the modification 28 is published by the commissioner. 29 b. If the commissioner declines to modify the determination, 30 within ten days upon receiving receipt of the commissioner’s 31 decision, the interested person affected may submit in writing 32 the objection to the division by restricted certified mail, 33 stating the specified grounds of the objection. The department 34 of inspections and appeals shall be notified of the objection 35 -9- LSB 1286YH (3) 86 je/rj 9/ 31

H.F. 38 and set a date for a hearing before an administrative law judge 1 on the objection, after giving notice by restricted certified 2 mail to the interested person and the division at least ten 3 days before the date of the hearing of the time and place of 4 the hearing. The hearing shall be held within forty-five days 5 after the objection is filed, and shall not be postponed or 6 reset for a later date except upon the consent, in writing, of 7 the interested person and the division. 8 7. The party requesting a hearing shall have the burden of 9 establishing that the annual prevailing wage rate determination 10 for that locality was not determined in accordance with this 11 chapter. If the party requesting a hearing under this section 12 objects to the commissioner’s failure to include a craft, 13 classification, or type of worker within the annual prevailing 14 wage rate determination in the locality, the objector shall 15 have the burden of establishing that there is no existing 16 prevailing wage rate classification for the particular craft, 17 classification, or type of worker in any of the localities 18 under consideration. 19 8. The administrative law judge may in the administrative 20 law judge’s discretion hear each written objection filed 21 separately or consolidate for hearing any one or more written 22 objections filed with the division. At the hearing, the 23 division shall introduce into evidence the investigation it 24 instituted which formed the basis of its determination, and the 25 division or any interested objectors may introduce evidence 26 that is material to the determination. The administrative 27 law judge shall rule upon each written objection and make a 28 final determination, as the administrative law judge believes 29 the evidence warrants, and promptly serve a copy of the final 30 determination by personal service or restricted certified mail 31 on all parties to the proceedings. The administrative law 32 judge shall render a final determination within thirty days 33 after the conclusion of the hearing. 34 9. If proceedings to review judicially the final 35 -10- LSB 1286YH (3) 86 je/rj 10/ 31

H.F. 38 determination of the administrative law judge are not 1 instituted as provided in this section, the determination 2 shall be final and binding. The provisions of section 17A.19 3 shall apply to and govern all proceedings. Appeals from all 4 final orders and judgments entered by the court in review of 5 the final determination of the administrative law judge may be 6 taken by any party to the action. In all reviews or appeals 7 under this chapter, the attorney general shall represent the 8 division and defend its determination. 9 10. This section does not give reason or provide cause for 10 an injunction to halt or delay any public improvement. 11 Sec. 8. NEW SECTION . 91F.6 Payment of prevailing wages 12 required. 13 1. Contractors and subcontractors engaged in a public 14 improvement shall pay not less than the current specified 15 prevailing wage rates to all of their workers engaged in the 16 public improvement. However, this chapter does not prohibit 17 the payment of more than the prevailing wage rate to any 18 workers engaged in a public improvement. 19 2. All contractors and subcontractors required to pay the 20 prevailing wage rate under this chapter shall pay the wages 21 in legal tender, without any deduction for food, sleeping 22 accommodations, transportation, use of tools or safety 23 equipment, vehicle or equipment rental, or any other thing of 24 any kind or description. 25 Sec. 9. NEW SECTION . 91F.7 Requirements for public 26 improvements. 27 1. The public body awarding a contract for a public 28 improvement or otherwise undertaking a public improvement shall 29 specify in the call for bids for the contract that this chapter 30 applies to the public improvement. 31 2. If a public improvement requires the payment of 32 prevailing wage rates, the public body shall require the 33 contractor to execute a written instrument that not less 34 than the prevailing wage rate shall be paid to all workers 35 -11- LSB 1286YH (3) 86 je/rj 11/ 31

H.F. 38 performing work on the public improvement. The written 1 instrument shall also contain a provision that if it is 2 found that any of the contractor’s workers engaged in the 3 public improvement has been paid at a wage rate less than the 4 prevailing wage rate required by this chapter, the public body 5 may terminate the contractor’s right to proceed with the work 6 and the contractor and its sureties shall be liable to the 7 public body for any excess costs occasioned by the failure to 8 pay the prevailing wage rate. The written instrument shall 9 have attached a list of the specified prevailing wage rates 10 for all crafts, classifications, or types of workers in the 11 locality for each worker needed to be included in the contract 12 for the public improvement. 13 3. If a contract is let for a public improvement requiring 14 the payment of prevailing wage rates, the public body 15 awarding the contract shall cause to be inserted in the public 16 improvement specifications and contract a stipulation that not 17 less than the prevailing wage rate shall be paid to all workers 18 performing work under the contract. The contract shall also 19 contain a provision to the effect that if it is found that any 20 of the contractor’s workers engaged in the public improvement 21 has been paid at a wage rate less than the prevailing wage rate 22 required by this chapter, the public body may terminate the 23 contractor’s right to proceed with the work and the contractor 24 and its sureties shall be liable to the public body for any 25 excess costs occasioned by the failure to pay the prevailing 26 wage rate. All bid specifications shall list the specified 27 prevailing wage rates for all crafts, classifications, or 28 types of workers in the locality for each worker needed to be 29 included in the contract. 30 4. If a public improvement requires the payment of 31 prevailing wage rates, the contractor shall require any 32 subcontractors engaged by the contractor on the public 33 improvement to execute a written instrument that not less 34 than the prevailing wage rates shall be paid to all workers 35 -12- LSB 1286YH (3) 86 je/rj 12/ 31

H.F. 38 performing work on the public improvement. The written 1 instrument shall also contain a provision that if it is 2 found that any of the subcontractor’s workers engaged in the 3 public improvement has been paid at a wage rate less than the 4 prevailing wage rate required by this chapter, the public body 5 may terminate the subcontractor’s right to proceed with the 6 work and the subcontractor and its sureties shall be liable to 7 the public body for any excess costs occasioned by the failure 8 to pay the prevailing wage rate. The written instrument shall 9 have attached a list of the specified prevailing wage rates 10 for all crafts, classifications, or types of workers in the 11 locality for each worker needed to be included in the contract. 12 5. If a subcontract is let for a public improvement 13 requiring the payment of the prevailing wage rate, the 14 contractor to whom the contract is awarded shall insert 15 into the subcontract and into the public improvement project 16 specifications for each subcontract a written stipulation that 17 not less than the prevailing wage rate shall be paid to all 18 workers performing work under the subcontract. A subcontractor 19 shall insert into each lower-tiered subcontract a stipulation 20 that not less than the prevailing wage rate shall be paid 21 to all workers performing work under the subcontract. The 22 subcontract shall also contain a provision that if it is 23 found that any subcontractor’s workers engaged in the public 24 improvement have been paid at a wage rate less than the 25 prevailing wage rate required by this chapter, the public body 26 may terminate the subcontractor’s right to proceed with the 27 work and the subcontractor and its sureties shall be liable to 28 the public body for any excess costs occasioned by the failure 29 to pay the prevailing wage rate. All bid specifications shall 30 list the specified prevailing wage rates for all crafts, 31 classifications, or types of workers in the locality for each 32 worker needed to be included in the subcontract. 33 6. A contractor or subcontractor engaging in a public 34 improvement shall submit a performance bond in an amount 35 -13- LSB 1286YH (3) 86 je/rj 13/ 31

H.F. 38 determined by the public body which bond shall include a 1 provision that will guarantee the payment of the prevailing 2 wage rates as required by the contract. 3 7. Before final payment is made by or on behalf of a public 4 body of any sum or sums due on a public improvement, the 5 treasurer of the public body or other officer or person charged 6 with the custody and disbursement of the funds of the public 7 body shall require the contractor and subcontractor to file a 8 written statement with the public body, in a form satisfactory 9 to the division, certifying to the amounts then due and owing 10 from the contractor and subcontractor to any and all workers 11 for wages due on account of the public improvement, setting 12 forth the names of the persons whose wages are unpaid and 13 the amount due to each respectively. The statement shall be 14 verified by the oath of the contractor or subcontractor, as the 15 case may be, that the contractor or subcontractor has read the 16 statement certified by the contractor or subcontractor, knows 17 the contents, and that the statement is true in accordance with 18 the contractor’s or subcontractor’s own knowledge. However, 19 this chapter shall not impair the right of a contractor to 20 receive final payment from a public body because of the failure 21 of a subcontractor to comply with provisions of this chapter. 22 The treasurer of the public body or other officer or person 23 charged with the custody and disbursement of the funds of the 24 public body shall withhold the amount, if any, listed on the 25 verified statement filed pursuant to this section for the 26 benefit of the worker whose wages are unpaid as shown by the 27 verified statement filed by the contractor or subcontractor, 28 and the public body shall pay directly to any worker the amount 29 shown by the statement to be due to the worker for the wages. 30 Payment shall discharge the obligation of the contractor or 31 subcontractor to the person receiving the payment to the extent 32 of the amount of the payment. 33 8. The public body awarding a contract for a public 34 improvement or otherwise undertaking a public improvement shall 35 -14- LSB 1286YH (3) 86 je/rj 14/ 31

H.F. 38 notify the commissioner in writing, on a form prescribed by 1 the commissioner, if a contract subject to the provisions of 2 this chapter has been awarded. The public body shall file 3 the notification with the commissioner within thirty days 4 after the contract is awarded or before commencement of the 5 public improvement, and shall include a list of all first-tier 6 subcontractors. 7 Sec. 10. NEW SECTION . 91F.8 Federal public improvements 8 —— not applicable. 9 The provisions of this chapter shall not be applicable 10 to public improvements financed entirely by federal funds 11 which require a prevailing wage rate determination by the 12 United States department of labor. However, unless a federal 13 provision applies, if a public improvement is financed in part 14 by a public body and in part by federal funds, the higher of the 15 prevailing wage rates shall prevail for the public improvement. 16 Sec. 11. NEW SECTION . 91F.9 Records required. 17 1. While participating in a public improvement, the 18 contractor and each subcontractor shall do all of the 19 following: 20 a. Make and keep, for a period of not less than three years, 21 accurate records of all workers employed by the contractor or 22 subcontractor on the public improvement. The records shall 23 include each worker’s name, address, telephone number when 24 available, social security number, trade classification, the 25 hourly wages paid in each pay period, the number of hours 26 worked each day, and the starting and ending times of work each 27 day. 28 b. Submit weekly a certified payroll to the public body 29 in charge of the public improvement. The certified payroll 30 shall consist of a complete copy of the records identified in 31 paragraph “a” . The certified payroll shall be accompanied by a 32 statement signed by the contractor or subcontractor which avers 33 that the records are true and accurate and the hourly wages 34 paid to each worker are not less than the prevailing wage rate 35 -15- LSB 1286YH (3) 86 je/rj 15/ 31

H.F. 38 required by this chapter. 1 2. The public body in charge of the public improvement 2 shall keep the records submitted in accordance with subsection 3 1, paragraph “b” , for a period of not less than three years. 4 The records shall be considered public records and be made 5 available in accordance with chapter 22. Personal information 6 submitted in accordance with subsection 1, paragraph “a” , 7 including names, addresses, social security numbers, telephone 8 numbers, and other identifying information shall remain 9 confidential and shall not be made public. 10 3. The contractor and each subcontractor shall make 11 available for inspection the records identified in subsection 12 1, paragraph “a” , to the public body in charge of the public 13 improvement, its officers and agents, and to the division. 14 4. For the purpose of verifying the accuracy of the records 15 submitted pursuant to this section, the contractor and each 16 subcontractor shall make its workers available at the site of 17 the public improvement for interview by the public body in 18 charge of the public improvement, its officers and agents, and 19 the division. 20 5. Contractors and subcontractors performing work on public 21 improvements subject to this chapter shall post the prevailing 22 wage rates for each craft, classification, or type of workers 23 involved in the public improvement in a prominent and easily 24 accessible place at the site of the public improvement or at 25 the place or places used by the contractor or subcontractor to 26 pay workers their wages. 27 Sec. 12. NEW SECTION . 91F.10 Powers of commissioner. 28 The commissioner shall do all of the following: 29 1. Inquire diligently about any complaint of a violation of 30 this chapter, institute actions for penalties prescribed, and 31 enforce generally the provisions of this chapter. 32 2. Sue for injunctive relief against the awarding of a 33 contract, the undertaking of a public improvement, or the 34 continuation of a public improvement when the prevailing wage 35 -16- LSB 1286YH (3) 86 je/rj 16/ 31

H.F. 38 rate requirements of this chapter have not been met. 1 3. Investigate and ascertain the wages of workers engaged in 2 any public improvement in this state. 3 4. a. Enter and inspect the place of business or employment 4 of a contractor, subcontractor, or workers employed on a public 5 improvement in this state, for the purpose of examining and 6 inspecting books, registers, payrolls, and other records of a 7 contractor or subcontractor that in any way relate to or have a 8 bearing upon the question of wages, hours, and other conditions 9 of employment of workers covered under this chapter. 10 b. Copy the books, registers, payrolls, and other 11 records as the commissioner or the commissioner’s authorized 12 representative deems necessary or appropriate. 13 c. Question the workers for the purpose of ascertaining 14 whether the provisions of this chapter have been and are being 15 complied with. 16 d. Administer oaths, take or cause to be taken depositions 17 of witnesses, and require by subpoena the attendance and 18 testimony of witnesses and the production of all books, 19 registers, payrolls, and other evidence relative to the matter 20 under investigation or hearing. 21 5. Require from a contractor or subcontractor full and 22 correct statements in writing, including sworn statements, 23 with respect to wages, hours, names, addresses, and other 24 information pertaining to its workers and their employment, 25 as the commissioner or the commissioner’s authorized 26 representative may deem necessary or appropriate. 27 6. Require a contractor or subcontractor to file, within 28 ten days of receipt of a request, any records enumerated in 29 subsection 4, sworn as to their validity and accuracy as 30 required by subsection 5. If the contractor or subcontractor 31 fails to provide the requested records within ten days, the 32 commissioner may direct, within fifteen days after the end 33 of the ten-day period, that the fiscal or financial officer 34 charged with the custody and disbursements of the funds of the 35 -17- LSB 1286YH (3) 86 je/rj 17/ 31

H.F. 38 public body, which contracted for construction of the public 1 improvement or undertook the public improvement, to immediately 2 withhold from payment to the contractor or subcontractor 3 up to twenty-five percent of the amount to be paid to the 4 contractor or subcontractor under the terms of the contract 5 or written instrument under which the public improvement is 6 being performed. The amount withheld shall be immediately 7 released upon receipt by the public body of a notice from 8 the commissioner indicating that the request for records as 9 required by this section has been satisfied. 10 7. If a contractor or subcontractor fails to provide 11 requested records in accordance with subsection 6 within ten 12 days, direct, within fifteen days after the end of the ten-day 13 period, the fiscal or financial officer charged with the 14 custody and disbursements of the funds of the public body, 15 which contracted for construction of the public improvement or 16 undertook the public improvement, to pay directly to workers 17 employed by the contractor or subcontractor from the amount 18 withheld from the contractor or subcontractor pursuant to 19 subsection 6 any prevailing wage rates found to be due and 20 payable to the workers. 21 8. Contract with a person registered as a public accountant 22 under chapter 542 to conduct an audit of a contractor, 23 subcontractor, or public body. 24 Sec. 13. NEW SECTION . 91F.11 Notice of violations. 25 1. For purposes of this section: 26 a. “Accurate records” means the payroll records required 27 to be submitted to the public body in charge of the public 28 improvement by section 91F.9. “Accurate records” also means the 29 hourly rate of contribution and costs paid for fringe benefits 30 and whether the contributions and costs of the fringe benefits 31 were paid into a fund or paid directly to the worker. 32 b. “Decision” means a determination by the division that a 33 single violation of this chapter has occurred, warranting the 34 commissioner to issue a notice of violation to a contractor or 35 -18- LSB 1286YH (3) 86 je/rj 18/ 31

H.F. 38 subcontractor. 1 c. “Notice of second violation” is a formal written notice 2 issued by the division advising a contractor or subcontractor 3 that a second or subsequent violation has occurred within three 4 years from the date of the notice of a first violation. 5 d. “Notice of violation” means a formal written notice 6 issued by the division to a contractor or subcontractor 7 that the division has made a decision that the contractor or 8 subcontractor has violated this chapter. 9 e. “Violation” means that a contractor or subcontractor has 10 done one of the following: 11 (1) Failed or refused to pay the prevailing wage rate to one 12 or more workers as required by this chapter. 13 (2) Failed to keep accurate records as required by this 14 chapter. 15 (3) Failed to produce for the division accurate records or 16 produced records not in compliance with this chapter. 17 (4) Refused to submit records or testimony to the division 18 in response to a subpoena issued in accordance with this 19 chapter. 20 (5) Refused to comply with the certified payroll provision 21 of section 91F.9. 22 (6) Refused the division access, at any reasonable hour at 23 a location within the state, to inspect the contractor’s or 24 subcontractor’s records as required by this chapter. 25 (7) Failed to insert into each subcontract or lower-tiered 26 subcontract and into the public improvement specifications 27 for each subcontract or lower-tiered subcontract or provide a 28 written instrument if no contract exists, a written stipulation 29 that not less than the prevailing wage rate be paid as required 30 by this chapter, and a statement that if it is found that a 31 subcontractor’s workers engaged in the public improvement have 32 been paid at a rate of wages less than the prevailing wage rate 33 required to be paid by the contract, the public body shall 34 terminate the subcontractor’s right to proceed with the work. 35 -19- LSB 1286YH (3) 86 je/rj 19/ 31