S.F. 84 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 Definitions. 25 1. “Applicant” means a person pursuing employment with an 26 employer or with or through an employment agency. 27 2. “Commissioner” means the labor commissioner, appointed 28 pursuant to section 91.2, or the labor commissioner’s designee. 29 3. “Employer” means a person who has fifteen or more 30 employees in the current or preceding calendar year and 31 includes an agent of such a person. 32 4. “Employment agency” means a person who, with or without 33 compensation, regularly brings together those desiring to 34 employ and those desiring employment and includes an agent of 35 -1- LSB 1004XS (4) 86 je/rj 1/ 5

S.F. 84 such a person. 1 Sec. 4. NEW SECTION . 91F.2 Prohibited hiring practices. 2 1. An employer or employment agency shall not inquire about, 3 consider, or require disclosure of the criminal record or 4 criminal history of an applicant until the applicant has been 5 determined qualified for the position and notified that the 6 applicant has been selected for an interview by the employer or 7 employment agency or, if an interview will not be conducted, 8 until after a conditional offer of employment is made to the 9 applicant by the employer or employment agency. 10 2. Subsection 1 does not apply to the following positions: 11 a. Positions where employers are required to exclude 12 applicants with certain criminal convictions from employment 13 due to federal or state law. 14 b. Positions where a fidelity bond or an equivalent bond is 15 required and an applicant’s conviction of one or more specified 16 criminal offenses would disqualify the applicant from obtaining 17 such bond, in which case an employer may include a question or 18 otherwise inquire whether the applicant has ever been convicted 19 of such specified criminal offenses. 20 3. Subsection 1 does not prohibit an employer or employment 21 agency from notifying applicants in writing of specific 22 offenses that will disqualify an applicant from employment in a 23 particular position as permitted by subsection 2. 24 Sec. 5. NEW SECTION . 91F.3 Powers and duties of the 25 commissioner. 26 1. The commissioner may hold hearings and investigate 27 alleged violations of this chapter by an employer or employment 28 agency. 29 2. The commissioner may recover civil penalties in 30 accordance with section 91F.5. 31 Sec. 6. NEW SECTION . 91F.4 Civil penalties —— amount. 32 An employer or employment agency who violates the provisions 33 of this chapter shall be subject to a penalty as follows: 34 1. For a first violation, the commissioner shall issue 35 -2- LSB 1004XS (4) 86 je/rj 2/ 5

S.F. 84 a written warning to the employer or employment agency that 1 includes notice regarding penalties for subsequent violations 2 and the employer or employment agency shall have thirty days 3 to remedy the violation. 4 2. For a second violation, or if a previous violation is not 5 remedied within thirty days of notice by the commissioner, the 6 commissioner may impose a civil penalty of up to five hundred 7 dollars. 8 3. For a third violation, or if a previous violation is not 9 remedied within sixty days of notice by the commissioner, the 10 commissioner may impose a civil penalty of up to one thousand 11 five hundred dollars. 12 4. For subsequent violations, or if a previous violation is 13 not remedied within ninety days of notice by the commissioner, 14 the commissioner may impose a civil penalty of up to one 15 thousand five hundred dollars for every thirty days that pass 16 thereafter without compliance. 17 Sec. 7. NEW SECTION . 91F.5 Civil penalties —— recovery. 18 1. The commissioner may propose that an employer be assessed 19 a civil penalty as provided in section 91F.4 by serving the 20 employer with notice of such proposal in the same manner as an 21 original notice is served under the rules of civil procedure. 22 Upon service of such notice, the proposed assessment shall be 23 treated as a contested case under chapter 17A. However, an 24 employer or employment agency must request a hearing within 25 thirty days of being served. 26 2. If an employer or employment agency does not request 27 a hearing pursuant to subsection 1 or if the commissioner 28 determines, after an appropriate hearing, that an employer 29 or employment agency is in violation of this chapter, the 30 commissioner shall assess a civil penalty in accordance with 31 section 91F.4. 32 3. An employer or employment agency may seek judicial review 33 of any assessment rendered under subsection 2 by instituting 34 proceedings for judicial review pursuant to chapter 17A. 35 -3- LSB 1004XS (4) 86 je/rj 3/ 5

S.F. 84 However, such proceedings must be instituted in the district 1 court of the county in which the violation or one of the 2 violations occurred and within thirty days of the day on which 3 the employer was notified that an assessment has been rendered. 4 4. After the time for seeking judicial review has expired 5 or after all judicial review has been exhausted and the 6 commissioner’s assessment has been upheld, the commissioner 7 shall request the attorney general to recover the assessed 8 penalties in a civil action. 9 5. Civil penalties recovered pursuant to this section shall 10 be remitted by the commissioner to the treasurer of state for 11 deposit in the general fund of the state. 12 Sec. 8. EFFECTIVE DATE. This Act takes effect January 1, 13 2016. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill prohibits an employer or employment agency from 18 inquiring about, considering, or requiring disclosure of the 19 criminal record or criminal history of an applicant until the 20 applicant has been determined qualified for the position and 21 notified that the applicant has been selected for an interview 22 by the employer or employment agency. If an interview for 23 the position will not be conducted, the prohibition applies 24 until after a conditional offer of employment is made to the 25 applicant by the employer or employment agency. 26 The prohibition does not apply to positions where employers 27 are required to exclude applicants with certain criminal 28 convictions from employment due to federal or state law. The 29 prohibition also does not apply to positions where a fidelity 30 bond or an equivalent bond is required and an applicant’s 31 conviction of one or more specified criminal offenses would 32 disqualify the applicant from obtaining such bond, in which 33 case an employer may include a question or otherwise inquire 34 whether the applicant has ever been convicted of such specified 35 -4- LSB 1004XS (4) 86 je/rj 4/ 5

S.F. 84 criminal offenses. The bill does not prohibit an employer 1 or employment agency from notifying applicants in writing 2 of specific offenses that will disqualify an applicant from 3 employment in a particular position as permitted by these 4 exceptions. 5 The bill defines “applicant” as a person pursuing employment 6 with an employer or with or through an employment agency. 7 The bill defines “employer” as a person who has 15 or more 8 employees in the current or preceding calendar year and an 9 agent of such a person. The bill defines “employment agency” 10 as a person who, with or without compensation, regularly brings 11 together those desiring to employ and those desiring employment 12 and an agent of such a person. 13 An employer or employment agency that violates the 14 provisions of the bill is subject to civil penalties ranging 15 from a written warning for a first violation to up to $1,500 16 every 30 days for a fourth or subsequent violation not remedied 17 within 90 days. 18 The labor commissioner may hold hearings and investigate 19 alleged violations of the bill by an employer or employment 20 agency and may recover civil penalties according to the 21 provisions of the bill. The bill provides procedures for the 22 recovery of civil penalties. 23 The bill takes effect January 1, 2016. 24 -5- LSB 1004XS (4) 86 je/rj 5/ 5