House File 478 - Introduced HOUSE FILE 478 BY JACOBY 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 1904YH (2) 91 je/js

H.F. 478 Section 1. Section 10A.202, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. The department is responsible for the administration of 3 the laws of this state under chapters 88A , 88B , 89 , 89A , 90A , 4 91A , 91C , 91D , 91E , 91F, and 92 , and such other labor-services 5 duties assigned to the department or director. 6 Sec. 2. Section 10A.204, subsection 3, Code 2025, is amended 7 to read as follows: 8 3. The director, in consultation with the labor 9 commissioner, shall, at the time provided by law, make an 10 annual report to the governor setting forth in appropriate form 11 the business and expense of the division and department under 12 this subchapter for the preceding year, the number of remedial 13 actions taken under chapter 89A , the number of disputes or 14 violations processed by the division or department and the 15 disposition of the disputes or violations, and other matters 16 pertaining to the division or department under this subchapter 17 which are of public interest, together with recommendations for 18 change or amendment of the laws in this chapter and chapters 19 88 , 88A , 88B , 89 , 89A , 89B , 90A , 91A , 91C , 91D , 91E , 91F, and 20 92 , and sections 85.67A and 85.68 , and the recommendations, if 21 any, shall be transmitted by the governor to the first general 22 assembly in session after the report is filed. 23 Sec. 3. NEW SECTION . 91F.1 Short title. 24 This chapter shall be known and may be cited as the “Public 25 Improvement Quality Protection Act” . 26 Sec. 4. NEW SECTION . 91F.2 Public policy. 27 It is in the public interest that public improvements 28 are completed by the best means and highest quality of labor 29 reasonably available, and that workers working on public 30 improvements be compensated according to the real value of the 31 services they perform. It is the policy of this state that the 32 wages of workers working on public improvements should be at 33 least equal to the prevailing wage rates paid for similar work 34 by responsible contractors in the community as a whole in order 35 -1- LSB 1904YH (2) 91 je/js 1/ 31

H.F. 478 to accomplish all of the following: 1 1. Protect workers and their contractors and subcontractors 2 from the effects of serious and unfair competition resulting 3 from wage levels detrimental to efficiency and well-being. 4 2. Ensure that contractors compete with one another 5 on the basis of the ability to perform work competently 6 and efficiently while maintaining community-established 7 compensation standards. 8 3. Recognize that local participation in public 9 improvements and family wage income and benefits are essential 10 to the protection of community standards. 11 4. Encourage training and education of workers to industry 12 skills standards. 13 5. Encourage contractors and subcontractors to use funds 14 allocated for employee fringe benefits for the actual purchase 15 of those benefits. 16 Sec. 5. NEW SECTION . 91F.3 Definitions. 17 As used in this chapter, unless the context otherwise 18 requires: 19 1. “Contractor” or “subcontractor” means a person who 20 undertakes, offers to undertake, purports to have the capacity 21 to undertake, or submits a bid, individually or through others, 22 to engage in a public improvement. 23 2. “Custom fabrication” means the fabrication of plumbing, 24 heating, cooling, ventilation, architectural systems, 25 structural systems, exhaust duct systems, or mechanical 26 insulation. 27 3. “Department” means the department of inspections, 28 appeals, and licensing. 29 4. “Director” means the director of the department. 30 5. a. “Fringe benefits” means the following for the 31 provision or purchase of any of the benefits enumerated in 32 paragraph “b” : 33 (1) The contribution irrevocably made by a contractor or 34 subcontractor to a trustee or to a third person pursuant to a 35 -2- LSB 1904YH (2) 91 je/js 2/ 31

H.F. 478 plan, fund, or program. 1 (2) The costs to the contractor or subcontractor which 2 may be reasonably anticipated in providing benefits to 3 workers pursuant to an enforceable commitment to carry out a 4 financially responsible plan or program, given in writing to 5 the workers affected. 6 b. (1) Medical or hospital care. 7 (2) Pensions or annuities on retirement or death. 8 (3) Supplemental unemployment benefits. 9 (4) Life insurance. 10 (5) Disability and sickness insurance. 11 (6) Accident insurance for nonwork-related accidents. 12 (7) Vacation or holiday pay. 13 (8) Defraying costs of apprenticeship programs approved by 14 and registered with the United States department of labor’s 15 office of apprenticeship. 16 6. “Interested party” means any of the following: 17 a. A contractor who submits a bid for the purpose of 18 securing the award of a contract for a public improvement. 19 b. A subcontractor of a contractor mentioned in a bid 20 referred to in paragraph “a” . 21 c. A worker employed by a contractor or subcontractor 22 described in either paragraph “a” or “b” . 23 d. A labor organization that represents workers engaged 24 in the same craft or classification as workers employed by a 25 contractor or subcontractor described in either paragraph “a” 26 or “b” and that exists, in whole or in part, for the purpose 27 of negotiating with employers concerning the wages, hours, or 28 terms and conditions of employment of employees. 29 e. A joint labor-management committee established pursuant 30 to the federal Labor Management Cooperation Act of 1978, 29 31 U.S.C. §175a. 32 7. “Locality” means a county of this state. 33 8. “Maintenance work” means the repair of existing public 34 improvements when the size, type, or extent of the public 35 -3- LSB 1904YH (2) 91 je/js 3/ 31

H.F. 478 improvement is not changed or increased. 1 9. “Prevailing wage rate” means the hourly wage plus fringe 2 benefits that the director determines prevails in accordance 3 with this chapter, including all of the following: 4 a. Apprentice ratios and the prevailing apprentice pay 5 levels for each craft, classification, or type of worker which 6 the director determines prevails in accordance with section 7 91F.5. 8 b. A prevailing rate for overtime pay for work in excess 9 of the normal prevailing workday and for weekend overtime pay 10 for each craft, classification, or type of worker, including 11 apprentices. 12 c. Holiday pay for holidays that prevail in the locality in 13 which the work is being performed. 14 10. “Public body” means the state and any of its political 15 subdivisions, including but not limited to a county, city, 16 township, school district, state board of regents, and public 17 utility. For the purposes of this chapter, “public utility” 18 includes municipally owned utilities and municipally owned 19 waterworks. 20 11. a. “Public improvement” means any of the following that 21 meets the criteria set out in paragraphs “b” and “c” : 22 (1) Construction, alteration, reconstruction, repair, 23 rehabilitation, refinishing, refurbishing, remodeling, 24 renovation, custom fabricating, maintenance, landscaping, 25 improving, moving, wrecking, painting, decorating, or 26 demolishing of, or adding to or subtracting from any building, 27 structure, highway, road, street, bridge, alley, sewer, ditch, 28 sewage disposal plant, waterworks, parking facility, railroad, 29 excavation or other structure, project, development, or 30 improvement, or any part thereof undertaken by a public body, 31 including any of the following related activities: 32 (a) The erection of scaffolding or other structures or 33 works. 34 (b) The maintenance, repair, assembly, or disassembly of 35 -4- LSB 1904YH (2) 91 je/js 4/ 31

H.F. 478 equipment. 1 (c) The testing of materials. 2 (d) The hauling of refuse from a site to an outside disposal 3 location. 4 (e) The cleaning of grounds or structures. 5 (f) The addition to or fabrication into any structure, 6 project, development, or improvement of any material or article 7 of merchandise undertaken by a public body. 8 (2) The preparation and removal of roadway construction 9 zones, lane closures, flagging, or traffic diversions 10 undertaken by a public body. 11 (3) The installation, repair, maintenance, or calibration 12 of monitoring equipment for underground storage tanks 13 undertaken by a public body. 14 (4) Work that is performed on any property or premises 15 dedicated exclusively or nearly so to the completion of a 16 public improvement, and transportation of supplies, material, 17 and equipment to or from the property or premises undertaken 18 by a public body. 19 b. Work on the public improvement is performed under public 20 supervision or direction, and the work is financed wholly or 21 in part from public funds, or if at the time of commencement 22 of the public improvement all of the following conditions with 23 respect to the public improvement are met: 24 (1) Not less than fifty-five percent of the structure is 25 leased by a public body, or is subject to an agreement to be 26 subsequently leased by a public body. 27 (2) The portion of the structure that is leased or subject 28 to an agreement to be subsequently leased by a public body 29 measures more than twenty thousand square feet. 30 c. The public improvement has an estimated total cost that 31 exceeds twenty-five thousand dollars. 32 12. “Worker” means an individual who performs any 33 labor or service for a contractor or subcontractor on a 34 public improvement but does not include an individual when 35 -5- LSB 1904YH (2) 91 je/js 5/ 31

H.F. 478 transporting a seller, supplier, manufacturer, or processor of 1 materials or equipment. The individual is deemed an employee 2 of a contractor or subcontractor unless all of the following 3 apply: 4 a. The individual provides labor or services free from the 5 direction or control over the means and manner of providing the 6 labor or services, subject only to the right of the person for 7 whom the labor or services are provided to specify the desired 8 results. 9 b. The individual providing the labor or services is 10 responsible for obtaining business registrations or licenses 11 required by state law or local ordinance to provide the labor 12 or services. 13 c. The individual providing the labor or services furnishes 14 the tools and equipment necessary to provide the labor or 15 services. 16 d. The individual providing the labor or services has the 17 authority to hire and fire employees to perform the labor or 18 services. 19 e. Payment for the labor or services is made upon 20 completion of the performance of specific portions of a public 21 improvement, or is made on the basis of a periodic retainer. 22 f. The individual providing the labor or services represents 23 to the public that the labor or services are to be provided 24 by an independently established business. An individual is 25 engaged in an independently established business when four or 26 more of the following circumstances exist: 27 (1) Labor or services are primarily performed at a location 28 separate from the individual’s residence or in a specified 29 portion of the residence that is set aside for performing labor 30 or services. 31 (2) Commercial advertising or business cards are purchased 32 by the individual, or the individual is a member of a trade or 33 professional association. 34 (3) Telephone or electronic mail listings used by the 35 -6- LSB 1904YH (2) 91 je/js 6/ 31

H.F. 478 individual for the labor or services are different from the 1 individual’s personal listings. 2 (4) Labor or services are performed only pursuant to a 3 written contract. 4 (5) Labor or services are performed for two or more persons 5 or entities within a period of one year. 6 (6) The individual assumes financial responsibility 7 for errors and omissions in the performance of the labor or 8 services as evidenced by insurance, performance bonds, and 9 warranties relating to the labor or services provided. 10 Sec. 6. NEW SECTION . 91F.4 Administration —— rules. 11 1. The director shall administer this chapter. 12 2. The director shall adopt rules pursuant to chapter 17A to 13 administer this chapter. 14 Sec. 7. NEW SECTION . 91F.5 Determination of prevailing 15 wages. 16 1. The director shall determine annually, and publish 17 pursuant to subsection 2, on the first business day of 18 July, the prevailing wage rates by locality for each craft, 19 classification, or type of worker needed to perform work on 20 public improvements. The rates shall be conclusive for one 21 year from the date of publication unless superseded within 22 the one year by a later publication of the director, or for a 23 longer period as provided in subsection 5. 24 2. The director shall announce all prevailing wage rate 25 determinations by locality and give notice by posting them 26 on the department’s internet site. A printed version of the 27 prevailing wage rates for the state shall be available to the 28 public upon request to the department. 29 3. The public body awarding any contract for a public 30 improvement, or otherwise undertaking any public improvement, 31 shall obtain from the internet site the prevailing wage rate 32 in the locality in which work on the public improvement is to 33 be performed for each craft, classification, or type of worker 34 needed to perform work on the public improvement. After a 35 -7- LSB 1904YH (2) 91 je/js 7/ 31

H.F. 478 public improvement contract is awarded, or a public improvement 1 is otherwise undertaken, the prevailing wage rate published by 2 the director and stated in the public body’s public improvement 3 procurement documents shall remain in effect throughout 4 the duration of the public improvement unless superseded by 5 a later determination and publication by the director, or 6 unless multiyear prevailing wage rates have been published by 7 the director at the time the public improvement procurement 8 documents were released. 9 4. a. In determining the annual prevailing wage rate for 10 any craft, classification, or type of worker, the director 11 shall ascertain and consider the applicable wage rates 12 and fringe benefits established by collective bargaining 13 agreements, the prevailing wage rate determinations that may 14 exist for federal public improvements within the locality, and 15 other data obtained by the department during any prevailing 16 wage rate survey of contractors who participate in an 17 apprenticeship program approved by and registered with the 18 United States department of labor’s office of apprenticeship, 19 who provide health insurance and retirement benefits for their 20 workers, and who are registered with the department. Based 21 upon these considerations, the director shall calculate the 22 prevailing wage rates based on the wage rate plus fringe 23 benefits most often occurring for each craft, classification, 24 or other type of worker within each locality. 25 b. The minimum annual prevailing wage rate determination 26 established by the department shall not be lower than the 27 prevailing wage rate determination that may exist for federal 28 public improvements within the locality and in the nearest 29 labor market area. 30 c. None of the fringe benefits enumerated in this chapter 31 may be considered in the determination of prevailing wage 32 rates if the contractor or subcontractor is required by other 33 federal, state, or local law to provide such fringe benefits. 34 5. If the director determines that the prevailing wage rate 35 -8- LSB 1904YH (2) 91 je/js 8/ 31

H.F. 478 for any craft, classification, or type of worker is the rate 1 established by a collective bargaining agreement applicable in 2 the locality, the director may adopt that rate by reference 3 and that determination shall be effective for the life of the 4 agreement or until the director adopts another rate. 5 6. a. At any time within fifteen days after the department 6 has published on the department’s internet site the annual 7 prevailing wage rates for each classification, craft, or 8 other type of worker in the locality, any interested person 9 affected may object to the determination or the part of the 10 determination as the interested person may deem objectionable 11 by filing a written notice with the director by restricted 12 certified mail as defined in section 618.15. When objecting 13 to a prevailing wage rate determination, the interested person 14 shall submit, as a part of the written notice, the prevailing 15 wage rate the interested person believes to be the correct 16 prevailing wage rate determination, stating the specific 17 grounds to support that position. Upon receipt of the notice 18 of objection, the director shall reconsider the determination 19 and shall affirm or modify the determination and reply in 20 writing by restricted certified mail to the interested person 21 within fifteen days from the date of the receipt of the notice 22 of objection. Any modification to the prevailing wage rate 23 determination shall be effective on the date the modification 24 is published by the director. 25 b. If the director declines to modify the determination, 26 within ten days upon receiving receipt of the director’s 27 decision, the interested person affected may submit in writing 28 the objection to the department by restricted certified mail, 29 stating the specified grounds of the objection. The department 30 shall set a date for a hearing before an administrative law 31 judge on the objection, after giving notice by restricted 32 certified mail to the interested person and the department 33 at least ten days before the date of the hearing of the time 34 and place of the hearing. The hearing shall be held within 35 -9- LSB 1904YH (2) 91 je/js 9/ 31

H.F. 478 forty-five days after the objection is filed, and shall not be 1 postponed or reset for a later date except upon the consent, in 2 writing, of the interested person and the department. 3 7. The party requesting a hearing shall have the burden of 4 establishing that the annual prevailing wage rate determination 5 for that locality was not determined in accordance with 6 this chapter. If the party requesting a hearing under this 7 section objects to the director’s failure to include a craft, 8 classification, or type of worker within the annual prevailing 9 wage rate determination in the locality, the objector shall 10 have the burden of establishing that there is no existing 11 prevailing wage rate classification for the particular craft, 12 classification, or type of worker in any of the localities 13 under consideration. 14 8. The administrative law judge may in the administrative 15 law judge’s discretion hear each written objection filed 16 separately or consolidate for hearing any one or more written 17 objections filed with the department. At the hearing, the 18 department shall introduce into evidence the investigation it 19 instituted which formed the basis of its determination, and the 20 department or any interested objectors may introduce evidence 21 that is material to the determination. The administrative 22 law judge shall rule upon each written objection and make a 23 final determination, as the administrative law judge believes 24 the evidence warrants, and promptly serve a copy of the final 25 determination by personal service or restricted certified mail 26 on all parties to the proceedings. The administrative law 27 judge shall render a final determination within thirty days 28 after the conclusion of the hearing. 29 9. If proceedings to review judicially the final 30 determination of the administrative law judge are not 31 instituted as provided in this section, the determination 32 shall be final and binding. The provisions of section 17A.19 33 shall apply to and govern all proceedings. Appeals from all 34 final orders and judgments entered by the court in review of 35 -10- LSB 1904YH (2) 91 je/js 10/ 31

H.F. 478 the final determination of the administrative law judge may be 1 taken by any party to the action. In all reviews or appeals 2 under this chapter, the attorney general shall represent the 3 department and defend its determination. 4 10. This section does not give reason or provide cause for 5 an injunction to halt or delay any public improvement. 6 Sec. 8. NEW SECTION . 91F.6 Payment of prevailing wages 7 required. 8 1. Contractors and subcontractors engaged in a public 9 improvement shall pay not less than the current specified 10 prevailing wage rates to all of their workers engaged in the 11 public improvement. However, this chapter does not prohibit 12 the payment of more than the prevailing wage rate to any 13 workers engaged in a public improvement. 14 2. All contractors and subcontractors required to pay the 15 prevailing wage rate under this chapter shall pay the wages 16 in legal tender, without any deduction for food, sleeping 17 accommodations, transportation, use of tools or safety 18 equipment, vehicle or equipment rental, or any other thing of 19 any kind or description. 20 Sec. 9. NEW SECTION . 91F.7 Requirements for public 21 improvements. 22 1. The public body awarding a contract for a public 23 improvement or otherwise undertaking a public improvement shall 24 specify in the call for bids for the contract that this chapter 25 applies to the public improvement. 26 2. If a public improvement requires the payment of 27 prevailing wage rates, the public body shall require the 28 contractor to execute a written instrument that not less 29 than the prevailing wage rate shall be paid to all workers 30 performing work on the public improvement. The written 31 instrument shall also contain a provision that if it is found 32 that any of the contractor’s workers engaged in the public 33 improvement have been paid at a wage rate less than the 34 prevailing wage rate required by this chapter, the public body 35 -11- LSB 1904YH (2) 91 je/js 11/ 31

H.F. 478 may terminate the contractor’s right to proceed with the work 1 and the contractor and its sureties shall be liable to the 2 public body for any excess costs occasioned by the failure to 3 pay the prevailing wage rate. The written instrument shall 4 have attached a list of the specified prevailing wage rates 5 for all crafts, classifications, or types of workers in the 6 locality for each worker needed to be included in the contract 7 for the public improvement. 8 3. If a contract is let for a public improvement requiring 9 the payment of prevailing wage rates, the public body 10 awarding the contract shall cause to be inserted in the public 11 improvement specifications and contract a stipulation that 12 not less than the prevailing wage rate shall be paid to all 13 workers performing work under the contract. The contract 14 shall also contain a provision to the effect that if it is 15 found that any of the contractor’s workers engaged in the 16 public improvement have been paid at a wage rate less than the 17 prevailing wage rate required by this chapter, the public body 18 may terminate the contractor’s right to proceed with the work 19 and the contractor and its sureties shall be liable to the 20 public body for any excess costs occasioned by the failure to 21 pay the prevailing wage rate. All bid specifications shall 22 list the specified prevailing wage rates for all crafts, 23 classifications, or types of workers in the locality for each 24 worker needed to be included in the contract. 25 4. If a public improvement requires the payment of 26 prevailing wage rates, the contractor shall require any 27 subcontractors engaged by the contractor on the public 28 improvement to execute a written instrument that not less 29 than the prevailing wage rates shall be paid to all workers 30 performing work on the public improvement. The written 31 instrument shall also contain a provision that if it is 32 found that any of the subcontractor’s workers engaged in the 33 public improvement have been paid at a wage rate less than the 34 prevailing wage rate required by this chapter, the public body 35 -12- LSB 1904YH (2) 91 je/js 12/ 31

H.F. 478 may terminate the subcontractor’s right to proceed with the 1 work and the subcontractor and its sureties shall be liable to 2 the public body for any excess costs occasioned by the failure 3 to pay the prevailing wage rate. The written instrument shall 4 have attached a list of the specified prevailing wage rates 5 for all crafts, classifications, or types of workers in the 6 locality for each worker needed to be included in the contract. 7 5. If a subcontract is let for a public improvement 8 requiring the payment of the prevailing wage rate, the 9 contractor to whom the contract is awarded shall insert 10 into the subcontract and into the public improvement project 11 specifications for each subcontract a written stipulation that 12 not less than the prevailing wage rate shall be paid to all 13 workers performing work under the subcontract. A subcontractor 14 shall insert into each lower-tiered subcontract a stipulation 15 that not less than the prevailing wage rate shall be paid 16 to all workers performing work under the subcontract. The 17 subcontract shall also contain a provision that if it is 18 found that any of the subcontractor’s workers engaged in the 19 public improvement have been paid at a wage rate less than the 20 prevailing wage rate required by this chapter, the public body 21 may terminate the subcontractor’s right to proceed with the 22 work and the subcontractor and its sureties shall be liable to 23 the public body for any excess costs occasioned by the failure 24 to pay the prevailing wage rate. All bid specifications shall 25 list the specified prevailing wage rates for all crafts, 26 classifications, or types of workers in the locality for each 27 worker needed to be included in the subcontract. 28 6. A contractor or subcontractor engaging in a public 29 improvement shall submit a performance bond in an amount 30 determined by the public body which bond shall include a 31 provision that will guarantee the payment of the prevailing 32 wage rates as required by the contract. 33 7. Before final payment is made by or on behalf of a public 34 body of any sum or sums due on a public improvement, the 35 -13- LSB 1904YH (2) 91 je/js 13/ 31

H.F. 478 treasurer of the public body or other officer or person charged 1 with the custody and disbursement of the funds of the public 2 body shall require the contractor and subcontractor to file a 3 written statement with the public body, in a form satisfactory 4 to the department, certifying to the amounts then due and owing 5 from the contractor and subcontractor to any and all workers 6 for wages due on account of the public improvement, setting 7 forth the names of the persons whose wages are unpaid and 8 the amount due to each respectively. The statement shall be 9 verified by the oath of the contractor or subcontractor, as the 10 case may be, that the contractor or subcontractor has read the 11 statement certified by the contractor or subcontractor, knows 12 the contents, and that the statement is true in accordance with 13 the contractor’s or subcontractor’s own knowledge. However, 14 this chapter shall not impair the right of a contractor to 15 receive final payment from a public body because of the failure 16 of a subcontractor to comply with provisions of this chapter. 17 The treasurer of the public body or other officer or person 18 charged with the custody and disbursement of the funds of the 19 public body shall withhold the amount, if any, listed on the 20 verified statement filed pursuant to this section for the 21 benefit of the worker whose wages are unpaid as shown by the 22 verified statement filed by the contractor or subcontractor, 23 and the public body shall pay directly to any worker the amount 24 shown by the statement to be due to the worker for the wages. 25 Payment shall discharge the obligation of the contractor or 26 subcontractor to the person receiving the payment to the extent 27 of the amount of the payment. 28 8. The public body awarding a contract for a public 29 improvement or otherwise undertaking a public improvement 30 shall notify the director in writing, on a form prescribed 31 by the director, if a contract subject to the provisions of 32 this chapter has been awarded. The public body shall file 33 the notification with the director within thirty days after 34 the contract is awarded or before commencement of the public 35 -14- LSB 1904YH (2) 91 je/js 14/ 31

H.F. 478 improvement, and shall include a list of all first-tier 1 subcontractors. 2 Sec. 10. NEW SECTION . 91F.8 Federal public improvements 3 —— not applicable. 4 The provisions of this chapter shall not be applicable 5 to public improvements financed entirely by federal funds 6 which require a prevailing wage rate determination by the 7 United States department of labor. However, unless a federal 8 provision applies, if a public improvement is financed in part 9 by a public body and in part by federal funds, the higher of the 10 prevailing wage rates shall prevail for the public improvement. 11 Sec. 11. NEW SECTION . 91F.9 Records required. 12 1. While participating in a public improvement, the 13 contractor and each subcontractor shall do all of the 14 following: 15 a. Make and keep, for a period of not less than three years, 16 accurate records of all workers employed by the contractor or 17 subcontractor on the public improvement. The records shall 18 include each worker’s name, address, telephone number when 19 available, social security number, trade classification, the 20 hourly wages paid in each pay period, the number of hours 21 worked each day, and the starting and ending times of work each 22 day. 23 b. Submit weekly a certified payroll to the public body 24 in charge of the public improvement. The certified payroll 25 shall consist of a complete copy of the records identified in 26 paragraph “a” . The certified payroll shall be accompanied by a 27 statement signed by the contractor or subcontractor which avers 28 that the records are true and accurate and the hourly wages 29 paid to each worker are not less than the prevailing wage rate 30 required by this chapter. 31 2. The public body in charge of the public improvement 32 shall keep the records submitted in accordance with subsection 33 1, paragraph “b” , for a period of not less than three years. 34 The records shall be considered public records and be made 35 -15- LSB 1904YH (2) 91 je/js 15/ 31

H.F. 478 available in accordance with chapter 22. Personal information 1 submitted in accordance with subsection 1, paragraph “a” , 2 including names, addresses, social security numbers, telephone 3 numbers, and other identifying information shall remain 4 confidential and shall not be made public. 5 3. The contractor and each subcontractor shall make 6 available for inspection the records identified in subsection 7 1, paragraph “a” , to the public body in charge of the public 8 improvement, its officers and agents, and to the department. 9 4. For the purpose of verifying the accuracy of the records 10 submitted pursuant to this section, the contractor and each 11 subcontractor shall make its workers available at the site of 12 the public improvement for interview by the public body in 13 charge of the public improvement, its officers and agents, and 14 the department. 15 5. Contractors and subcontractors performing work on public 16 improvements subject to this chapter shall post the prevailing 17 wage rates for each craft, classification, or type of workers 18 involved in the public improvement in a prominent and easily 19 accessible place at the site of the public improvement or at 20 the place or places used by the contractor or subcontractor to 21 pay workers their wages. 22 Sec. 12. NEW SECTION . 91F.10 Powers of director. 23 The director shall do all of the following: 24 1. Inquire diligently about any complaint of a violation of 25 this chapter, institute actions for penalties prescribed, and 26 enforce generally the provisions of this chapter. 27 2. Sue for injunctive relief against the awarding of a 28 contract, the undertaking of a public improvement, or the 29 continuation of a public improvement when the prevailing wage 30 rate requirements of this chapter have not been met. 31 3. Investigate and ascertain the wages of workers engaged in 32 any public improvement in this state. 33 4. a. Enter and inspect the place of business or employment 34 of a contractor, subcontractor, or workers employed on a public 35 -16- LSB 1904YH (2) 91 je/js 16/ 31

H.F. 478 improvement in this state, for the purpose of examining and 1 inspecting books, registers, payrolls, and other records of a 2 contractor or subcontractor that in any way relate to or have a 3 bearing upon the question of wages, hours, and other conditions 4 of employment of workers covered under this chapter. 5 b. Copy the books, registers, payrolls, and other records as 6 the director or the director’s authorized representative deems 7 necessary or appropriate. 8 c. Question the workers for the purpose of ascertaining 9 whether the provisions of this chapter have been and are being 10 complied with. 11 d. Administer oaths, take or cause to be taken depositions 12 of witnesses, and require by subpoena the attendance and 13 testimony of witnesses and the production of all books, 14 registers, payrolls, and other evidence relative to the matter 15 under investigation or hearing. 16 5. Require from a contractor or subcontractor full and 17 correct statements in writing, including sworn statements, 18 with respect to wages, hours, names, addresses, and other 19 information pertaining to its workers and their employment, as 20 the director or the director’s authorized representative may 21 deem necessary or appropriate. 22 6. Require a contractor or subcontractor to file, within 23 ten days of receipt of a request, any records enumerated in 24 subsection 4, sworn as to their validity and accuracy as 25 required by subsection 5. If the contractor or subcontractor 26 fails to provide the requested records within ten days, the 27 director may direct, within fifteen days after the end of 28 the ten-day period, that the fiscal or financial officer 29 charged with the custody and disbursements of the funds of the 30 public body, which contracted for construction of the public 31 improvement or undertook the public improvement, to immediately 32 withhold from payment to the contractor or subcontractor 33 up to twenty-five percent of the amount to be paid to the 34 contractor or subcontractor under the terms of the contract or 35 -17- LSB 1904YH (2) 91 je/js 17/ 31

H.F. 478 written instrument under which the public improvement is being 1 performed. The amount withheld shall be immediately released 2 upon receipt by the public body of a notice from the director 3 indicating that the request for records as required by this 4 section has been satisfied. 5 7. If a contractor or subcontractor fails to provide 6 requested records in accordance with subsection 6 within ten 7 days, direct, within fifteen days after the end of the ten-day 8 period, the fiscal or financial officer charged with the 9 custody and disbursements of the funds of the public body, 10 which contracted for construction of the public improvement or 11 undertook the public improvement, to pay directly to workers 12 employed by the contractor or subcontractor from the amount 13 withheld from the contractor or subcontractor pursuant to 14 subsection 6 any prevailing wage rates found to be due and 15 payable to the workers. 16 8. Contract with a person registered as a public accountant 17 under chapter 542 to conduct an audit of a contractor, 18 subcontractor, or public body. 19 Sec. 13. NEW SECTION . 91F.11 Notice of violations. 20 1. For purposes of this section: 21 a. “Accurate records” means the payroll records required 22 to be submitted to the public body in charge of the public 23 improvement by section 91F.9. “Accurate records” also means the 24 hourly rate of contribution and costs paid for fringe benefits 25 and whether the contributions and costs of the fringe benefits 26 were paid into a fund or paid directly to the worker. 27 b. “Decision” means a determination by the department that 28 a single violation of this chapter has occurred, warranting 29 the director to issue a notice of violation to a contractor or 30 subcontractor. 31 c. “Notice of second violation” is a formal written notice 32 issued by the department advising a contractor or subcontractor 33 that a second or subsequent violation has occurred within three 34 years from the date of the notice of a first violation. 35 -18- LSB 1904YH (2) 91 je/js 18/ 31

H.F. 478 d. “Notice of violation” means a formal written notice 1 issued by the department to a contractor or subcontractor that 2 the department has made a decision that the contractor or 3 subcontractor has violated this chapter. 4 e. “Violation” means that a contractor or subcontractor has 5 done one of the following: 6 (1) Failed or refused to pay the prevailing wage rate to one 7 or more workers as required by this chapter. 8 (2) Failed to keep accurate records as required by this 9 chapter. 10 (3) Failed to produce for the department accurate records or 11 produced records not in compliance with this chapter. 12 (4) Refused to submit records or testimony to the department 13 in response to a subpoena issued in accordance with this 14 chapter. 15 (5) Refused to comply with the certified payroll provision 16 of section 91F.9. 17 (6) Refused the department access, at any reasonable hour 18 at a location within the state, to inspect the contractor’s or 19 subcontractor’s records as required by this chapter. 20 (7) Failed to insert into each subcontract or lower-tiered 21 subcontract and into the public improvement specifications 22 for each subcontract or lower-tiered subcontract or provide a 23 written instrument if no contract exists, a written stipulation 24 that not less than the prevailing wage rate be paid as required 25 by this chapter, and a statement that if it is found that a 26 subcontractor’s workers engaged in the public improvement have 27 been paid at a rate of wages less than the prevailing wage rate 28 required to be paid by the contract, the public body shall 29 terminate the subcontractor’s right to proceed with the work. 30 (8) Failed to obtain a bond in the proper amount that 31 guarantees the payment of the prevailing wage rates required in 32 the contract. 33 (9) Failed to post the prevailing wage rates as required by 34 this chapter. 35 -19- LSB 1904YH (2) 91 je/js 19/ 31