House File 503 - Introduced HOUSE FILE 503 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 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 1943YH (3) 87 je/rj

H.F. 503 Section 1. Section 84A.5, subsection 4, Code 2017, 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 2017, 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 1943YH (3) 87 je/rj 1/ 31

H.F. 503 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 1943YH (3) 87 je/rj 2/ 31

H.F. 503 (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 1943YH (3) 87 je/rj 3/ 31

H.F. 503 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 1943YH (3) 87 je/rj 4/ 31

H.F. 503 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 1943YH (3) 87 je/rj 5/ 31

H.F. 503 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 1943YH (3) 87 je/rj 6/ 31

H.F. 503 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 —— rules. 13 1. The commissioner and the division shall administer this 14 chapter. 15 2. The commissioner shall adopt rules pursuant to chapter 16 17A to administer this chapter. 17 Sec. 7. NEW SECTION . 91F.5 Determination of prevailing 18 wages. 19 1. The commissioner shall determine annually and publish, 20 on the first business day of July, the prevailing wage rates 21 by locality for each craft, classification, or type of worker 22 needed to perform work on public improvements. The rates shall 23 be conclusive for one year from the date of publication unless 24 superseded within the one year by a later publication of the 25 commissioner, or for a longer period as provided in subsection 26 5. 27 2. The commissioner shall announce all prevailing wage rate 28 determinations by locality and give notice by posting them 29 on the portion of the department of workforce development’s 30 internet site related to the division. A printed version of 31 the prevailing wage rates for the state shall be available to 32 the public upon request to the division. 33 3. The public body awarding any contract for a public 34 improvement, or otherwise undertaking any public improvement, 35 -7- LSB 1943YH (3) 87 je/rj 7/ 31

H.F. 503 shall obtain from the internet site the prevailing wage rate 1 in the locality in which work on the public improvement is 2 to be performed for each craft, classification, or type of 3 worker needed to perform work on the public improvement. 4 After a public improvement contract is awarded, or a public 5 improvement is otherwise undertaken, the prevailing wage 6 rate published by the commissioner and stated in the public 7 body’s public improvement procurement documents shall remain 8 in effect throughout the duration of the public improvement 9 unless superseded by a later determination and publication by 10 the commissioner, or unless multiyear prevailing wage rates 11 have been published by the commissioner at the time the public 12 improvement procurement documents were released. 13 4. a. In determining the annual prevailing wage rate 14 for any craft, classification, or type of worker, the 15 commissioner shall ascertain and consider the applicable 16 wage rates and fringe benefits established by collective 17 bargaining agreements, the prevailing wage rate determinations 18 that may exist for federal public improvements within the 19 locality and other data obtained by the department during any 20 prevailing wage rate survey of contractors who participate in 21 an apprenticeship program approved by and registered with the 22 United States department of labor’s office of apprenticeship, 23 who provide health insurance and retirement benefits for their 24 workers, and who are registered with the division. Based 25 upon these considerations, the commissioner shall calculate 26 the prevailing wage rates based on the wage rate plus fringe 27 benefits most often occurring for each craft, classification, 28 or other type of worker within each locality. 29 b. The minimum annual prevailing wage rate determination 30 established by the department shall not be lower than the 31 prevailing wage rate determination that may exist for federal 32 public improvements within the locality and in the nearest 33 labor market area. 34 c. None of the fringe benefits enumerated in this chapter 35 -8- LSB 1943YH (3) 87 je/rj 8/ 31

H.F. 503 may be considered in the determination of prevailing wage 1 rates if the contractor or subcontractor is required by other 2 federal, state, or local law to provide such fringe benefits. 3 5. If the commissioner determines that the prevailing 4 wage rate for any craft, classification, or type of worker 5 is the rate established by a collective bargaining agreement 6 applicable in the locality, the commissioner may adopt that 7 rate by reference and that determination shall be effective 8 for the life of the agreement or until the commissioner adopts 9 another rate. 10 6. a. At any time within fifteen days after the division 11 has published on the department of workforce development’s 12 internet site the annual prevailing wage rates for each 13 classification, craft, or other type of worker in the locality, 14 any interested person affected may object to the determination 15 or the part of the determination as the interested person 16 may deem objectionable by filing a written notice with the 17 commissioner by restricted certified mail as defined in 18 section 618.15. When objecting to a prevailing wage rate 19 determination, the interested person shall submit, as a 20 part of the written notice, the prevailing wage rate the 21 interested person believes to be the correct prevailing wage 22 rate determination, stating the specific grounds to support 23 that position. Upon receipt of the notice of objection, the 24 commissioner shall reconsider the determination and shall 25 affirm or modify the determination and reply in writing by 26 restricted certified mail to the interested person within 27 fifteen days from the date of the receipt of the notice of 28 objection. Any modification to the prevailing wage rate 29 determination shall be effective on the date the modification 30 is published by the commissioner. 31 b. If the commissioner declines to modify the determination, 32 within ten days upon receiving receipt of the commissioner’s 33 decision, the interested person affected may submit in writing 34 the objection to the division by restricted certified mail, 35 -9- LSB 1943YH (3) 87 je/rj 9/ 31

H.F. 503 stating the specified grounds of the objection. The department 1 of inspections and appeals shall be notified of the objection 2 and set a date for a hearing before an administrative law judge 3 on the objection, after giving notice by restricted certified 4 mail to the interested person and the division at least ten 5 days before the date of the hearing of the time and place of 6 the hearing. The hearing shall be held within forty-five days 7 after the objection is filed, and shall not be postponed or 8 reset for a later date except upon the consent, in writing, of 9 the interested person and the division. 10 7. The party requesting a hearing shall have the burden of 11 establishing that the annual prevailing wage rate determination 12 for that locality was not determined in accordance with this 13 chapter. If the party requesting a hearing under this section 14 objects to the commissioner’s failure to include a craft, 15 classification, or type of worker within the annual prevailing 16 wage rate determination in the locality, the objector shall 17 have the burden of establishing that there is no existing 18 prevailing wage rate classification for the particular craft, 19 classification, or type of worker in any of the localities 20 under consideration. 21 8. The administrative law judge may in the administrative 22 law judge’s discretion hear each written objection filed 23 separately or consolidate for hearing any one or more written 24 objections filed with the division. At the hearing, the 25 division shall introduce into evidence the investigation it 26 instituted which formed the basis of its determination, and the 27 division or any interested objectors may introduce evidence 28 that is material to the determination. The administrative 29 law judge shall rule upon each written objection and make a 30 final determination, as the administrative law judge believes 31 the evidence warrants, and promptly serve a copy of the final 32 determination by personal service or restricted certified mail 33 on all parties to the proceedings. The administrative law 34 judge shall render a final determination within thirty days 35 -10- LSB 1943YH (3) 87 je/rj 10/ 31

H.F. 503 after the conclusion of the hearing. 1 9. If proceedings to review judicially the final 2 determination of the administrative law judge are not 3 instituted as provided in this section, the determination 4 shall be final and binding. The provisions of section 17A.19 5 shall apply to and govern all proceedings. Appeals from all 6 final orders and judgments entered by the court in review of 7 the final determination of the administrative law judge may be 8 taken by any party to the action. In all reviews or appeals 9 under this chapter, the attorney general shall represent the 10 division and defend its determination. 11 10. This section does not give reason or provide cause for 12 an injunction to halt or delay any public improvement. 13 Sec. 8. NEW SECTION . 91F.6 Payment of prevailing wages 14 required. 15 1. Contractors and subcontractors engaged in a public 16 improvement shall pay not less than the current specified 17 prevailing wage rates to all of their workers engaged in the 18 public improvement. However, this chapter does not prohibit 19 the payment of more than the prevailing wage rate to any 20 workers engaged in a public improvement. 21 2. All contractors and subcontractors required to pay the 22 prevailing wage rate under this chapter shall pay the wages 23 in legal tender, without any deduction for food, sleeping 24 accommodations, transportation, use of tools or safety 25 equipment, vehicle or equipment rental, or any other thing of 26 any kind or description. 27 Sec. 9. NEW SECTION . 91F.7 Requirements for public 28 improvements. 29 1. The public body awarding a contract for a public 30 improvement or otherwise undertaking a public improvement shall 31 specify in the call for bids for the contract that this chapter 32 applies to the public improvement. 33 2. If a public improvement requires the payment of 34 prevailing wage rates, the public body shall require the 35 -11- LSB 1943YH (3) 87 je/rj 11/ 31

H.F. 503 contractor to execute a written instrument that not less 1 than the prevailing wage rate shall be paid to all workers 2 performing work on the public improvement. The written 3 instrument shall also contain a provision that if it is found 4 that any of the contractor’s workers engaged in the public 5 improvement have been paid at a wage rate less than the 6 prevailing wage rate required by this chapter, the public body 7 may terminate the contractor’s right to proceed with the work 8 and the contractor and its sureties shall be liable to the 9 public body for any excess costs occasioned by the failure to 10 pay the prevailing wage rate. The written instrument shall 11 have attached a list of the specified prevailing wage rates 12 for all crafts, classifications, or types of workers in the 13 locality for each worker needed to be included in the contract 14 for the public improvement. 15 3. If a contract is let for a public improvement requiring 16 the payment of prevailing wage rates, the public body 17 awarding the contract shall cause to be inserted in the public 18 improvement specifications and contract a stipulation that 19 not less than the prevailing wage rate shall be paid to all 20 workers performing work under the contract. The contract 21 shall also contain a provision to the effect that if it is 22 found that any of the contractor’s workers engaged in the 23 public improvement have 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. All bid specifications shall 29 list the specified prevailing wage rates for all crafts, 30 classifications, or types of workers in the locality for each 31 worker needed to be included in the contract. 32 4. If a public improvement requires the payment of 33 prevailing wage rates, the contractor shall require any 34 subcontractors engaged by the contractor on the public 35 -12- LSB 1943YH (3) 87 je/rj 12/ 31

H.F. 503 improvement to execute a written instrument that not less 1 than the prevailing wage rates shall be paid to all workers 2 performing work on the public improvement. The written 3 instrument shall also contain a provision that if it is 4 found that any of the subcontractor’s workers engaged in the 5 public improvement have been paid at a wage rate less than the 6 prevailing wage rate required by this chapter, the public body 7 may terminate the subcontractor’s right to proceed with the 8 work and the subcontractor and its sureties shall be liable to 9 the public body for any excess costs occasioned by the failure 10 to pay the prevailing wage rate. The written instrument shall 11 have attached a list of the specified prevailing wage rates 12 for all crafts, classifications, or types of workers in the 13 locality for each worker needed to be included in the contract. 14 5. If a subcontract is let for a public improvement 15 requiring the payment of the prevailing wage rate, the 16 contractor to whom the contract is awarded shall insert 17 into the subcontract and into the public improvement project 18 specifications for each subcontract a written stipulation that 19 not less than the prevailing wage rate shall be paid to all 20 workers performing work under the subcontract. A subcontractor 21 shall insert into each lower-tiered subcontract a stipulation 22 that not less than the prevailing wage rate shall be paid 23 to all workers performing work under the subcontract. The 24 subcontract shall also contain a provision that if it is 25 found that any of the subcontractor’s workers engaged in the 26 public improvement have been paid at a wage rate less than the 27 prevailing wage rate required by this chapter, the public body 28 may terminate the subcontractor’s right to proceed with the 29 work and the subcontractor and its sureties shall be liable to 30 the public body for any excess costs occasioned by the failure 31 to pay the prevailing wage rate. All bid specifications shall 32 list the specified prevailing wage rates for all crafts, 33 classifications, or types of workers in the locality for each 34 worker needed to be included in the subcontract. 35 -13- LSB 1943YH (3) 87 je/rj 13/ 31

H.F. 503 6. A contractor or subcontractor engaging in a public 1 improvement shall submit a performance bond in an amount 2 determined by the public body which bond shall include a 3 provision that will guarantee the payment of the prevailing 4 wage rates as required by the contract. 5 7. Before final payment is made by or on behalf of a public 6 body of any sum or sums due on a public improvement, the 7 treasurer of the public body or other officer or person charged 8 with the custody and disbursement of the funds of the public 9 body shall require the contractor and subcontractor to file a 10 written statement with the public body, in a form satisfactory 11 to the division, certifying to the amounts then due and owing 12 from the contractor and subcontractor to any and all workers 13 for wages due on account of the public improvement, setting 14 forth the names of the persons whose wages are unpaid and 15 the amount due to each respectively. The statement shall be 16 verified by the oath of the contractor or subcontractor, as the 17 case may be, that the contractor or subcontractor has read the 18 statement certified by the contractor or subcontractor, knows 19 the contents, and that the statement is true in accordance with 20 the contractor’s or subcontractor’s own knowledge. However, 21 this chapter shall not impair the right of a contractor to 22 receive final payment from a public body because of the failure 23 of a subcontractor to comply with provisions of this chapter. 24 The treasurer of the public body or other officer or person 25 charged with the custody and disbursement of the funds of the 26 public body shall withhold the amount, if any, listed on the 27 verified statement filed pursuant to this section for the 28 benefit of the worker whose wages are unpaid as shown by the 29 verified statement filed by the contractor or subcontractor, 30 and the public body shall pay directly to any worker the amount 31 shown by the statement to be due to the worker for the wages. 32 Payment shall discharge the obligation of the contractor or 33 subcontractor to the person receiving the payment to the extent 34 of the amount of the payment. 35 -14- LSB 1943YH (3) 87 je/rj 14/ 31

H.F. 503 8. The public body awarding a contract for a public 1 improvement or otherwise undertaking a public improvement shall 2 notify the commissioner in writing, on a form prescribed by 3 the commissioner, if a contract subject to the provisions of 4 this chapter has been awarded. The public body shall file 5 the notification with the commissioner within thirty days 6 after the contract is awarded or before commencement of the 7 public improvement, and shall include a list of all first-tier 8 subcontractors. 9 Sec. 10. NEW SECTION . 91F.8 Federal public improvements 10 —— not applicable. 11 The provisions of this chapter shall not be applicable 12 to public improvements financed entirely by federal funds 13 which require a prevailing wage rate determination by the 14 United States department of labor. However, unless a federal 15 provision applies, if a public improvement is financed in part 16 by a public body and in part by federal funds, the higher of the 17 prevailing wage rates shall prevail for the public improvement. 18 Sec. 11. NEW SECTION . 91F.9 Records required. 19 1. While participating in a public improvement, the 20 contractor and each subcontractor shall do all of the 21 following: 22 a. Make and keep, for a period of not less than three years, 23 accurate records of all workers employed by the contractor or 24 subcontractor on the public improvement. The records shall 25 include each worker’s name, address, telephone number when 26 available, social security number, trade classification, the 27 hourly wages paid in each pay period, the number of hours 28 worked each day, and the starting and ending times of work each 29 day. 30 b. Submit weekly a certified payroll to the public body 31 in charge of the public improvement. The certified payroll 32 shall consist of a complete copy of the records identified in 33 paragraph “a” . The certified payroll shall be accompanied by a 34 statement signed by the contractor or subcontractor which avers 35 -15- LSB 1943YH (3) 87 je/rj 15/ 31

H.F. 503 that the records are true and accurate and the hourly wages 1 paid to each worker are not less than the prevailing wage rate 2 required by this chapter. 3 2. The public body in charge of the public improvement 4 shall keep the records submitted in accordance with subsection 5 1, paragraph “b” , for a period of not less than three years. 6 The records shall be considered public records and be made 7 available in accordance with chapter 22. Personal information 8 submitted in accordance with subsection 1, paragraph “a” , 9 including names, addresses, social security numbers, telephone 10 numbers, and other identifying information shall remain 11 confidential and shall not be made public. 12 3. The contractor and each subcontractor shall make 13 available for inspection the records identified in subsection 14 1, paragraph “a” , to the public body in charge of the public 15 improvement, its officers and agents, and to the division. 16 4. For the purpose of verifying the accuracy of the records 17 submitted pursuant to this section, the contractor and each 18 subcontractor shall make its workers available at the site of 19 the public improvement for interview by the public body in 20 charge of the public improvement, its officers and agents, and 21 the division. 22 5. Contractors and subcontractors performing work on public 23 improvements subject to this chapter shall post the prevailing 24 wage rates for each craft, classification, or type of workers 25 involved in the public improvement in a prominent and easily 26 accessible place at the site of the public improvement or at 27 the place or places used by the contractor or subcontractor to 28 pay workers their wages. 29 Sec. 12. NEW SECTION . 91F.10 Powers of commissioner. 30 The commissioner shall do all of the following: 31 1. Inquire diligently about any complaint of a violation of 32 this chapter, institute actions for penalties prescribed, and 33 enforce generally the provisions of this chapter. 34 2. Sue for injunctive relief against the awarding of a 35 -16- LSB 1943YH (3) 87 je/rj 16/ 31

H.F. 503 contract, the undertaking of a public improvement, or the 1 continuation of a public improvement when the prevailing wage 2 rate requirements of this chapter have not been met. 3 3. Investigate and ascertain the wages of workers engaged in 4 any public improvement in this state. 5 4. a. Enter and inspect the place of business or employment 6 of a contractor, subcontractor, or workers employed on a public 7 improvement in this state, for the purpose of examining and 8 inspecting books, registers, payrolls, and other records of a 9 contractor or subcontractor that in any way relate to or have a 10 bearing upon the question of wages, hours, and other conditions 11 of employment of workers covered under this chapter. 12 b. Copy the books, registers, payrolls, and other 13 records as the commissioner or the commissioner’s authorized 14 representative deems necessary or appropriate. 15 c. Question the workers for the purpose of ascertaining 16 whether the provisions of this chapter have been and are being 17 complied with. 18 d. Administer oaths, take or cause to be taken depositions 19 of witnesses, and require by subpoena the attendance and 20 testimony of witnesses and the production of all books, 21 registers, payrolls, and other evidence relative to the matter 22 under investigation or hearing. 23 5. Require from a contractor or subcontractor full and 24 correct statements in writing, including sworn statements, 25 with respect to wages, hours, names, addresses, and other 26 information pertaining to its workers and their employment, 27 as the commissioner or the commissioner’s authorized 28 representative may deem necessary or appropriate. 29 6. Require a contractor or subcontractor to file, within 30 ten days of receipt of a request, any records enumerated in 31 subsection 4, sworn as to their validity and accuracy as 32 required by subsection 5. If the contractor or subcontractor 33 fails to provide the requested records within ten days, the 34 commissioner may direct, within fifteen days after the end 35 -17- LSB 1943YH (3) 87 je/rj 17/ 31

H.F. 503 of the ten-day period, that the fiscal or financial officer 1 charged with the custody and disbursements of the funds of the 2 public body, which contracted for construction of the public 3 improvement or undertook the public improvement, to immediately 4 withhold from payment to the contractor or subcontractor 5 up to twenty-five percent of the amount to be paid to the 6 contractor or subcontractor under the terms of the contract 7 or written instrument under which the public improvement is 8 being performed. The amount withheld shall be immediately 9 released upon receipt by the public body of a notice from 10 the commissioner indicating that the request for records as 11 required by this section has been satisfied. 12 7. If a contractor or subcontractor fails to provide 13 requested records in accordance with subsection 6 within ten 14 days, direct, within fifteen days after the end of the ten-day 15 period, the fiscal or financial officer charged with the 16 custody and disbursements of the funds of the public body, 17 which contracted for construction of the public improvement or 18 undertook the public improvement, to pay directly to workers 19 employed by the contractor or subcontractor from the amount 20 withheld from the contractor or subcontractor pursuant to 21 subsection 6 any prevailing wage rates found to be due and 22 payable to the workers. 23 8. Contract with a person registered as a public accountant 24 under chapter 542 to conduct an audit of a contractor, 25 subcontractor, or public body. 26 Sec. 13. NEW SECTION . 91F.11 Notice of violations. 27 1. For purposes of this section: 28 a. “Accurate records” means the payroll records required 29 to be submitted to the public body in charge of the public 30 improvement by section 91F.9. “Accurate records” also means the 31 hourly rate of contribution and costs paid for fringe benefits 32 and whether the contributions and costs of the fringe benefits 33 were paid into a fund or paid directly to the worker. 34 b. “Decision” means a determination by the division that a 35 -18- LSB 1943YH (3) 87 je/rj 18/ 31

H.F. 503 single violation of this chapter has occurred, warranting the 1 commissioner to issue a notice of violation to a contractor or 2 subcontractor. 3 c. “Notice of second violation” is a formal written notice 4 issued by the division advising a contractor or subcontractor 5 that a second or subsequent violation has occurred within three 6 years from the date of the notice of a first violation. 7 d. “Notice of violation” means a formal written notice 8 issued by the division to a contractor or subcontractor 9 that the division has made a decision that the contractor or 10 subcontractor has violated this chapter. 11 e. “Violation” means that a contractor or subcontractor has 12 done one of the following: 13 (1) Failed or refused to pay the prevailing wage rate to one 14 or more workers as required by this chapter. 15 (2) Failed to keep accurate records as required by this 16 chapter. 17 (3) Failed to produce for the division accurate records or 18 produced records not in compliance with this chapter. 19 (4) Refused to submit records or testimony to the division 20 in response to a subpoena issued in accordance with this 21 chapter. 22 (5) Refused to comply with the certified payroll provision 23 of section 91F.9. 24 (6) Refused the division access, at any reasonable hour at 25 a location within the state, to inspect the contractor’s or 26 subcontractor’s records as required by this chapter. 27 (7) Failed to insert into each subcontract or lower-tiered 28 subcontract and into the public improvement specifications 29 for each subcontract or lower-tiered subcontract or provide a 30 written instrument if no contract exists, a written stipulation 31 that not less than the prevailing wage rate be paid as required 32 by this chapter, and a statement that if it is found that a 33 subcontractor’s workers engaged in the public improvement have 34 been paid at a rate of wages less than the prevailing wage rate 35 -19- LSB 1943YH (3) 87 je/rj 19/ 31