H.F. 732 Section 1. Section 84A.5, subsection 4, Code 2021, 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 sections 73A.21 and 85.68 . The executive head of 6 the division is the labor commissioner, appointed pursuant to 7 section 91.2 . 8 Sec. 2. Section 91.4, subsection 2, Code 2021, is amended 9 to read as follows: 10 2. The director of the department of workforce development, 11 in consultation with the labor commissioner, shall, at the 12 time provided by law, make an annual report to the governor 13 setting forth in appropriate form the business and expense of 14 the division of labor services for the preceding year, the 15 number of remedial actions taken under chapter 89A , the number 16 of disputes or violations processed by the division and the 17 disposition of the disputes or violations, and other matters 18 pertaining to the division which are of public interest, 19 together with recommendations for change or amendment of the 20 laws in this chapter and chapters 88 , 88A , 88B , 89 , 89A , 89B , 21 90A , 91A , 91C , 91D , 91E , 91F, 92 , and 94A , and section 85.68 , 22 and the recommendations, if any, shall be transmitted by the 23 governor to the first general assembly in session after the 24 report is filed. 25 Sec. 3. NEW SECTION . 91F.1 Definitions. 26 1. “Commissioner” means the labor commissioner, appointed 27 pursuant to section 91.2, or the labor commissioner’s designee. 28 2. “Consumer reporting agency” means any person that for 29 monetary fees, dues, or on a cooperative nonprofit basis 30 regularly engages in whole or in part in the practice of 31 assembling or evaluating consumer credit information or other 32 information on consumers for the purpose of furnishing consumer 33 reports to third parties. 34 3. “Credit report” means any written, oral, or other 35 -1- LSB 2662YH (2) 89 je/rn 1/ 4

H.F. 732 communication of information by a consumer reporting agency 1 that relates to a consumer’s creditworthiness, credit standing, 2 or credit capacity. 3 4. “Credit score” means a number or rating that is derived 4 from an algorithm, computer application, model, or other 5 process that is based in whole or in part on information from a 6 person’s credit report. 7 5. “Employee” means a natural person who is employed in this 8 state for wages by an employer. 9 6. “Employer” means a person, as defined in chapter 4, who 10 in this state employs for wages a natural person. 11 Sec. 4. NEW SECTION . 91F.2 Employer review of employee 12 credit information prohibited. 13 Unless specifically required by state or federal law, an 14 employer shall not do any of the following: 15 1. View an employee or prospective employee’s credit report 16 or credit score or a summary of an employee or prospective 17 employee’s credit report or credit score. 18 2. Require or ask an employee or prospective employee 19 to provide the employer with the employee’s or prospective 20 employee’s credit report or credit score or to provide a 21 summary of the employee’s or prospective employee’s credit 22 report or credit score. 23 Sec. 5. NEW SECTION . 91F.3 Powers and duties of the 24 commissioner. 25 1. The commissioner may hold hearings and investigate 26 alleged violations of this chapter by an employer. 27 2. The commissioner may assess and recover civil penalties 28 in accordance with sections 91F.4 and 91F.5. 29 3. The commissioner shall adopt rules pursuant to chapter 30 17A to administer this chapter. 31 Sec. 6. NEW SECTION . 91F.4 Civil penalties —— amount. 32 An employer who violates the provisions of this chapter 33 shall be subject to a penalty as follows: 34 1. For a first violation, the commissioner shall issue a 35 -2- LSB 2662YH (2) 89 je/rn 2/ 4

H.F. 732 written warning to the employer that includes notice regarding 1 penalties for subsequent violations. 2 2. For a second violation, the commissioner may impose a 3 civil penalty of up to five hundred dollars. 4 3. For a third violation, the commissioner may impose a 5 civil penalty of up to one thousand five hundred dollars. 6 4. For subsequent violations, the commissioner may impose a 7 civil penalty of up to one thousand five hundred dollars. 8 Sec. 7. NEW SECTION . 91F.5 Civil penalties —— recovery. 9 1. The commissioner may propose that an employer be assessed 10 a civil penalty as provided in section 91F.4 by serving the 11 employer with notice of such proposal in the same manner as an 12 original notice is served under the rules of civil procedure. 13 Upon service of such notice, the proposed assessment shall be 14 treated as a contested case under chapter 17A. However, an 15 employer must request a hearing within thirty days of being 16 served. 17 2. If an employer does not request a hearing pursuant 18 to subsection 1 or if the commissioner determines, after an 19 appropriate hearing, that an employer is in violation of this 20 chapter, the commissioner shall assess a civil penalty in 21 accordance with section 91F.4. 22 3. An employer may seek judicial review of any assessment 23 made under subsection 2 by instituting proceedings for judicial 24 review pursuant to chapter 17A. However, such proceedings must 25 be instituted in the district court of the county in which the 26 violation or one of the violations occurred and within thirty 27 days of the day on which the employer was notified that an 28 assessment has been made. 29 4. After the time for seeking judicial review has expired 30 or after all judicial review has been exhausted and the 31 commissioner’s assessment has been upheld, the commissioner 32 shall request the attorney general to recover the assessed 33 penalties in a civil action. 34 5. Civil penalties recovered pursuant to this section shall 35 -3- LSB 2662YH (2) 89 je/rn 3/ 4

H.F. 732 be remitted by the commissioner to the treasurer of state for 1 deposit in the general fund of the state. 2 EXPLANATION 3 The inclusion of this explanation does not constitute agreement with 4 the explanation’s substance by the members of the general assembly. 5 This bill prohibits an employer from viewing an employee’s 6 or prospective employee’s credit report or credit score or 7 a summary of an employee’s or prospective employee’s credit 8 report or credit score. The bill also prohibits an employer 9 from requiring or asking an employee or prospective employee 10 to provide the employer with the employee’s or prospective 11 employee’s credit report or credit score or to provide a 12 summary of the employee’s or prospective employee’s credit 13 report or credit score. These prohibitions do not apply if 14 such actions are specifically required by state or federal law. 15 An employer that violates the provisions of the bill is 16 subject to civil penalties ranging from a written warning for 17 a first violation to up to $1,500 for a fourth or subsequent 18 violation. 19 The labor commissioner may hold hearings and investigate 20 alleged violations of the bill by an employer, may assess and 21 recover civil penalties and seek attorney general assistance 22 in such recovery according to the procedural provisions of the 23 bill, and shall adopt rules to administer the bill. 24 -4- LSB 2662YH (2) 89 je/rn 4/ 4