H.F. 473 Section 1. Section 8A.311, subsection 15, Code 2011, is 1 amended to read as follows: 2 15. a. A bidder awarded , to be considered for an award 3 of a state construction contract , shall disclose to the state 4 agency awarding the contract the names of all subcontractors 5 and suppliers , who will work on the project being bid , within 6 forty-eight hours after the award of the contract published 7 date and time by which bids must be submitted . 8 b. A bidder shall not replace a subcontractor or supplier 9 disclosed under paragraph “a” without the written approval of 10 the state agency awarding the contract. 11 c. A bidder, prior to award or who is awarded a state 12 construction contract, shall disclose all of the following, as 13 applicable: 14 (1) If a subcontractor named or supplier disclosed under 15 paragraph “a” by a bidder awarded a state construction contract 16 is replaced, or if the reason for the replacement and the name 17 of the new subcontractor or supplier. 18 (2) If the cost of work to be done by a subcontractor or 19 supplier is reduced, the bidder shall disclose the name of 20 the new subcontractor or changed or if the replacement of a 21 subcontractor or supplier results in a change in the cost, the 22 amount of the reduced change in cost. 23 Sec. 2. Section 26.7, Code 2011, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 4. A governmental entity shall not in 26 either the notice to bidders or the contract documents require 27 proof of satisfaction of any bidder qualification standards 28 for the bidder or its proposed subcontractors if the bidder is 29 required and able to meet all bond requirements relating to 30 payments and performance in accordance with state law. This 31 section does not prohibit a public owner from exercising its 32 authority under this chapter to determine whether the lowest 33 responsive bidder is a responsible bidder in accordance with 34 state law. 35 -1- HF 473 (4) 84 je/rj/mb 1/ 8

H.F. 473 Sec. 3. NEW SECTION . 72.6 Public works —— contractor 1 qualifications. 2 1. Definitions. As used in this section, unless the context 3 otherwise provides: 4 a. “Public owner” means a public body including the state 5 or a political subdivision of the state, an officer, official, 6 agency, authority, board, or commission of the state or of a 7 political subdivision of the state, or an institution supported 8 in whole or in part by public funds. 9 b. “Public road project” means a project under the control 10 of a public owner for the construction, maintenance, or repair 11 of a road or street that is funded, in whole or in part, by 12 moneys from the road use tax fund. 13 c. “Public works” means a building or other construction 14 project which is constructed under the control of a public 15 owner and is paid for in whole or in part with funds of a public 16 owner, including funds directed to the public owner from any 17 federal government source, including grants. “Public works” 18 does not include any work done by or on behalf of a drainage 19 or levee district or any work financed by federal funds where 20 federal procurement policy applicable to the use of the federal 21 funds is inconsistent with the requirements of this section. 22 d. “Public works project” means the construction, 23 maintenance, or repair of public works. “Public works project” 24 does not mean a public road project. 25 2. Prohibited criteria. In determining which bidder is the 26 lowest responsible bidder for purposes of awarding a contract 27 to perform a public works project or public road project, a 28 public owner shall not do any of the following: 29 a. Select a bidder based in whole or in part on a 30 consideration of whether the bidder’s employees belong to or 31 are represented by a labor union or labor organization. 32 b. Require that the bidder selected enter into an agreement 33 that directly or indirectly requires the bidder to recruit, 34 train, or hire employees from a particular source to perform 35 -2- HF 473 (4) 84 je/rj/mb 2/ 8

H.F. 473 work on the public works project or public road project. 1 c. Require the bidder or the bidder’s subcontractors 2 or their agents to enter into any agreement or arrangement 3 relating to the public works project or public road project 4 which imposes requirements, controls, or limitations on 5 staffing; sources of employee referrals; assignment of work; 6 sources of insurance and benefits including health, life, and 7 disability insurance and retirement pensions; training; or 8 wages. This paragraph does not apply to requirements imposed 9 by federal law. 10 3. Bidding documents. Criteria described in this section 11 that cannot be considered by a public owner in determining 12 who is the lowest responsible bidder shall be included in any 13 document requesting or inviting bids on public works projects 14 or public road projects subject to this section. 15 Sec. 4. Section 73A.21, Code 2011, is amended to read as 16 follows: 17 73A.21 Reciprocal resident bidder and resident labor force 18 preference by state, its agencies, and political subdivisions —— 19 penalties . 20 1. For purposes of this section : 21 a. “Commissioner” means the labor commissioner appointed 22 pursuant to section 91.2, or the labor commissioner’s designee. 23 b. “Division” means the division of labor of the department 24 of workforce development. 25 c. “Nonresident bidder” means a person or entity who does 26 not meet the definition of a resident bidder. 27 d. “Public body” means the state and any of its political 28 subdivisions, including a school district, public utility, or 29 the state board of regents. 30 a. e. “Public improvement” means public improvements as 31 defined in section 73A.1 a building or other construction work 32 to be paid for in whole or in part by the use of funds of the 33 state, its agencies, and any of its political subdivisions and 34 includes road construction, reconstruction, and maintenance 35 -3- HF 473 (4) 84 je/rj/mb 3/ 8

H.F. 473 projects. 1 f. “Public utility” includes municipally owned utilities and 2 municipally owned waterworks. 3 b. g. “Resident bidder” means a person or entity authorized 4 to transact business in this state and having a place of 5 business for transacting business within the state at which 6 it is conducting and has conducted business for at least six 7 months three years prior to the date of the first advertisement 8 for the public improvement and in the case of a corporation, 9 having at least fifty percent of its common stock owned by 10 residents of this state . If another state or foreign country 11 has a more stringent definition of a resident bidder, the more 12 stringent definition is applicable as to bidders from that 13 state or foreign country. 14 h. “Resident labor force preference” means a requirement in 15 which all or a portion of a labor force working on a public 16 improvement is a resident of a particular state or country. 17 2. Notwithstanding this chapter , chapter 73 , chapter 309 , 18 chapter 310 , chapter 331 , or chapter 384 , when a contract for a 19 public improvement is to be awarded to the lowest responsible 20 bidder, a resident bidder shall be allowed a preference as 21 against a nonresident bidder from a state or foreign country 22 which if that state or foreign country gives or requires a 23 any preference to bidders from that state or foreign country , 24 including but not limited to any preference to bidders, the 25 imposition of any type of labor force preference, or any other 26 form of preferential treatment to bidders or laborers from that 27 state or foreign country . The preference is allowed shall 28 be equal to the preference given or required by the state or 29 foreign country in which the nonresident bidder is a resident. 30 In the instance of a resident labor force preference, a 31 nonresident bidder shall apply the same resident labor force 32 preference to a public improvement in this state as would be 33 required in the construction of a public improvement by the 34 state or foreign country in which the nonresident bidder is a 35 -4- HF 473 (4) 84 je/rj/mb 4/ 8

H.F. 473 resident. 1 3. This section applies to the state, its agencies, and any 2 political subdivisions of the state. 3 4. 3. If it is determined that this may cause denial of 4 federal funds which would otherwise be available, or would 5 otherwise be inconsistent with requirements of any federal law 6 or regulation , this section shall be suspended, but only to the 7 extent necessary to prevent denial of the funds or to eliminate 8 the inconsistency with federal requirements. 9 4. The public body involved in a public improvement shall 10 require a nonresident bidder to specify on all project bid 11 specifications and contract documents whether any preference 12 as described in subsection 2 is in effect in the nonresident 13 bidder’s state or country of domicile at the time of a bid 14 submittal. 15 5. The commissioner and the division shall administer and 16 enforce this section, and the commissioner shall adopt rules 17 for the administration and enforcement of this section as 18 provided in section 91.6. 19 6. The commissioner shall have the following powers and 20 duties for the purposes of this section: 21 a. The commissioner may hold hearings and investigate 22 charges of violations of this section. 23 b. The commissioner may, consistent with due process of law, 24 enter any place of employment to inspect records concerning 25 labor force residency, to question an employer or employee, and 26 to investigate such facts, conditions, or matters as are deemed 27 appropriate in determining whether any person has violated the 28 provisions of this section. The commissioner shall only make 29 such an entry in response to a written complaint. 30 c. The commissioner shall develop a written complaint form 31 applicable to this section and make it available in division 32 offices and on the department of workforce development’s 33 internet site. 34 d. The commissioner may sue for injunctive relief against 35 -5- HF 473 (4) 84 je/rj/mb 5/ 8

H.F. 473 the awarding of a contract, the undertaking of a public 1 improvement, or the continuation of a public improvement in 2 response to a violation of this section. 3 e. The commissioner may investigate and ascertain the 4 residency of a worker engaged in any public improvement in this 5 state. 6 f. The commissioner may administer oaths, take or cause to 7 be taken deposition of witnesses, and require by subpoena the 8 attendance and testimony of witnesses and the production of all 9 books, registers, payrolls, and other evidence relevant to a 10 matter under investigation or hearing. 11 g. The commissioner may employ qualified personnel as are 12 necessary for the enforcement of this section. Such personnel 13 shall be employed pursuant to the merit system provisions of 14 chapter 8A, subchapter IV. 15 h. The commissioner shall require a contractor or 16 subcontractor to file, within ten days of receipt of a request, 17 any records enumerated in subsection 7. If the contractor or 18 subcontractor fails to provide the requested records within ten 19 days, the commissioner may direct, within fifteen days after 20 the end of the ten-day period, that the fiscal or financial 21 office charged with the custody and disbursement of funds of 22 the public body that contracted for construction of the public 23 improvement or undertook the public improvement, to immediately 24 withhold from payment to the contractor or subcontractor 25 up to twenty-five percent of the amount to be paid to the 26 contractor or subcontractor under the terms of the contract 27 or written instrument under which the public improvement is 28 being performed. The amount withheld shall be immediately 29 released upon receipt by the public body of a notice from 30 the commissioner indicating that the request for records as 31 required by this section has been satisfied. 32 7. While participating in a public improvement, a 33 nonresident bidder domiciled in a state or country that 34 has established a resident labor force preference shall 35 -6- HF 473 (4) 84 je/rj/mb 6/ 8

H.F. 473 make and keep, for a period of not less than three years, 1 accurate records of all workers employed by the contractor or 2 subcontractor on the public improvement. The records shall 3 include each worker’s name, address, telephone number when 4 available, social security number, trade classification, and 5 the starting and ending time of employment. 6 8. Any person or entity that violates the provisions of 7 this section is subject to a civil penalty in an amount not to 8 exceed one thousand dollars for each violation found in a first 9 investigation by the division, not to exceed five thousand 10 dollars for each violation found in a second investigation 11 by the division, and not to exceed fifteen thousand dollars 12 for a third or subsequent violation found in any subsequent 13 investigation by the division. Each violation of this section 14 for each worker and for each day the violation continues 15 constitutes a separate and distinct violation. In determining 16 the amount of the penalty, the division shall consider the 17 appropriateness of the penalty to the person or entity charged, 18 upon determination of the gravity of the violations. The 19 collection of these penalties shall be enforced in a civil 20 action brought by the attorney general on behalf of the 21 division. 22 9. A party seeking review of the division’s determination 23 pursuant to this section may file a written request for an 24 informal conference. The request must be received by the 25 division within fifteen days after the date of issuance of 26 the division’s determination. During the conference, the 27 party seeking review may present written or oral information 28 and arguments as to why the division’s determination should 29 be amended or vacated. The division shall consider the 30 information and arguments presented and issue a written 31 decision advising all parties of the outcome of the conference. 32 Sec. 5. Section 331.341, subsection 2, Code 2011, is amended 33 to read as follows: 34 2. The board shall give preference to Iowa products and 35 -7- HF 473 (4) 84 je/rj/mb 7/ 8

H.F. 473 labor in accordance with chapter 73 and shall comply with bid 1 and contract requirements in chapter 26 . 2 Sec. 6. REPEAL. Sections 73.3 and 73.4, Code 2011, are 3 repealed. 4 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 5 immediate importance, takes effect upon enactment. 6 Sec. 8. APPLICABILITY. This Act applies to all public 7 improvement, public works, and public road projects, and to 8 public improvement, public works, and public road contracts 9 entered into on or after July 1, 2011. 10 -8- HF 473 (4) 84 je/rj/mb 8/ 8