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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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.
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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.
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2.
After
receipt
of
a
complaint
or
on
the
department’s
1
initiative,
the
director
shall
review
the
investigative
2
file
to
determine
whether
a
violation
has
occurred
for
3
which
the
contractor
or
subcontractor
must
be
given
notice.
4
All
information
and
observations
made
during
an
audit
or
5
investigation
shall
be
considered
and
shall
constitute
the
6
basis
for
the
department’s
decision
that
this
chapter
has
7
been
violated
and
that
a
notice
of
violation
is
required
8
to
be
issued.
The
notice
of
violation
shall
identify
the
9
specific
violation
and
the
amount
of
moneys
estimated
due
the
10
department
and
in
controversy
based
on
reasons
contained
in
the
11
investigative
file.
12
3.
In
making
a
decision
that
a
contractor
or
subcontractor
13
has
failed
to
allow
the
director
access
to
accurate
records,
14
the
director
shall
rely
on
the
information
contained
in
the
15
investigative
file,
the
certified
payroll
records
submitted
16
to
the
public
body
in
charge
of
the
public
improvement
or
any
17
other
information,
and
shall
assess
a
separate
violation
for
18
each
day
worked
by
each
worker
on
the
public
improvement.
Each
19
decision
of
a
separate
violation
shall
be
listed
in
the
notice
20
of
violation.
21
4.
In
determining
that
this
chapter
has
been
violated
and
22
that
the
issuance
of
a
notice
of
violation
is
required,
the
23
director
shall
base
the
decision
on
one
or
any
combination
of
24
the
following
reasons:
25
a.
The
severity
of
the
violation,
which
includes
the
26
following:
27
(1)
The
amount
of
wages
that
are
determined
to
be
underpaid
28
pursuant
to
this
chapter.
29
(2)
The
activity
or
conduct
complained
of
that
violates
the
30
requirements
of
this
chapter
and
was
not
merely
a
technical,
31
nonsubstantive
error.
Examples
of
a
technical
error
include
32
but
are
not
limited
to
a
mathematical
error,
bookkeeping
error,
33
transposition
of
numbers,
or
computer
or
programming
error.
34
b.
The
nature
and
duration
of
the
present
violation
and
the
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prior
history
of
the
contractor
or
subcontractor
related
to
1
this
history.
The
prior
history
considered
shall
not
exceed
2
seven
years
before
the
date
of
the
notice
of
violation.
3
c.
Whether
the
contractor
or
subcontractor
submitted
4
certified
payroll
records
with
the
public
body
in
charge
of
the
5
public
improvement;
whether
the
contractor
or
subcontractor
6
has
kept
payroll
records
and
accurate
records
for
three
years;
7
and
whether
the
contractor
or
subcontractor
produced
certified
8
payroll
records
in
accordance
with
section
91F.9.
9
d.
Whether
the
contractor
or
subcontractor
has
violated
any
10
other
provision
of
this
chapter.
11
5.
The
notices
of
the
first,
second,
and
subsequent
12
violations
shall
be
sent
by
restricted
certified
mail,
13
addressed
to
the
last
known
address
of
the
contractor
or
14
subcontractor
involved.
The
notices
shall
contain
a
reference
15
to
the
specific
provisions
of
this
chapter
alleged
to
have
been
16
violated,
identify
the
particular
public
improvement
involved,
17
identify
the
conduct
complained
of,
and
identify
whether
the
18
notice
is
a
notice
of
a
first,
second,
or
subsequent
violation,
19
and
include
a
contractor’s
or
subcontractor’s
statement
of
20
liabilities.
21
Sec.
14.
NEW
SECTION
.
91F.12
Violations
——
remedies
and
22
penalties.
23
1.
If
the
director
determines
that
a
public
body
has
24
divided
a
public
improvement
into
more
than
one
contract
for
25
the
purpose
of
avoiding
compliance
with
this
chapter,
the
26
director
shall
issue
an
order
compelling
compliance.
In
making
27
a
determination
whether
a
public
body
has
divided
a
public
28
improvement
into
more
than
one
contract
for
the
purpose
of
29
avoiding
compliance
with
this
chapter,
the
director
shall
30
consider
all
of
the
following:
31
a.
The
physical
separation
of
the
public
improvement
32
structures
or
work.
33
b.
The
timing
of
the
work
on
the
public
improvement
phases
34
or
structures.
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c.
The
continuity
of
public
improvement
contractors
and
1
subcontractors
working
on
public
improvement
parts
or
phases.
2
d.
The
manner
in
which
the
public
body
and
the
contractor
3
and
subcontractors
administer
and
implement
work
on
the
public
4
improvement.
5
2.
A
worker
employed
by
the
contractor
or
subcontractor
who
6
is
paid
less
than
the
specified
prevailing
wage
rate
under
this
7
chapter
shall
have
a
private
right
of
action
for
the
difference
8
between
the
amount
so
paid
and
the
specified
prevailing
wage
9
rate,
together
with
costs
and
reasonable
attorney
fees
as
shall
10
be
allowed
by
the
court.
11
3.
The
contractor
or
subcontractor
shall
additionally
be
12
liable
to
the
department
for
fifty
percent
of
the
amount
of
13
underpayments
and
shall
be
additionally
liable
to
the
worker
14
for
punitive
damages
in
an
amount
equal
to
five
percent
of
the
15
liability
to
the
department
for
underpayments
for
each
month
16
following
the
date
of
payment
during
which
underpayments
remain
17
unpaid,
together
with
costs
and
reasonable
attorney
fees
as
18
shall
be
allowed
by
the
court.
19
4.
If
a
second
or
subsequent
action
to
recover
underpayments
20
is
brought
against
a
contractor
or
subcontractor
within
a
21
three-year
period
and
the
contractor
or
subcontractor
is
22
found
liable
for
underpayments
to
a
worker,
the
contractor
23
or
subcontractor
shall
be
liable
to
the
department
for
24
seventy-five
percent
of
the
amount
of
underpayments
payable
25
as
a
result
of
the
second
or
subsequent
action,
additionally
26
liable
to
the
worker
for
ten
percent
of
the
amount
of
the
27
liability
to
the
department
for
underpayments
for
each
month
28
following
the
date
of
payment
during
which
the
underpayments
29
remain
unpaid,
and
further
liable
to
the
worker
for
triple
30
the
difference
between
the
amount
so
paid
to
the
worker
and
31
the
specified
prevailing
wage
rate
required,
together
with
32
costs
and
reasonable
attorney
fees
as
shall
be
allowed
by
the
33
court.
The
three-year
period
begins
to
run
from
the
date
the
34
contractor
or
subcontractor
is
determined
liable
for
the
first
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violation.
1
5.
The
director
and
any
interested
party
shall
also
have
2
a
right
of
action
on
behalf
of
a
worker
who
has
a
right
of
3
action
under
this
chapter.
An
action
brought
to
recover
the
4
same
shall
be
deemed
to
be
a
suit
for
wages,
and
all
judgments
5
entered
in
the
action
shall
have
the
same
force
and
effect
as
6
other
judgments
for
wages.
At
the
request
of
a
worker
employed
7
by
a
contractor
or
subcontractor
who
is
paid
less
than
the
8
prevailing
wage
rate
required
by
this
chapter,
the
director
may
9
take
an
assignment
of
the
wage
claim
in
trust
for
the
assigning
10
worker
and
may
bring
any
legal
action
necessary
to
collect
the
11
claim,
and
the
contractor
or
subcontractor
shall
be
required
12
to
pay
the
expenses
of
the
department
incurred
in
collecting
13
the
claim.
14
6.
In
circumstances
where
a
worker
may
not
be
available
to
15
receive
a
payment
or
judgment,
the
payment
due
the
worker
shall
16
revert
to
the
department
after
one
year
elapses
from
the
time
17
payment
was
attempted
to
be
made
or
judgment
was
rendered.
18
7.
a.
It
is
a
violation
of
this
chapter
to
do
any
of
the
19
following:
20
(1)
To
request
or
demand,
either
before
or
after
the
worker
21
is
engaged
in
a
public
improvement,
that
a
worker
pay
back,
22
return,
donate,
contribute,
or
give
any
part
or
all
of
the
23
worker’s
wages,
salary,
or
thing
of
value,
to
any
person,
upon
24
the
statement,
representation,
or
understanding
that
failure
to
25
comply
with
the
request
or
demand
will
prevent
the
worker
from
26
procuring
or
retaining
employment.
27
(2)
To
directly
or
indirectly
pay,
request,
or
authorize
any
28
other
person
to
violate
this
chapter.
29
b.
This
subsection
does
not
apply
to
an
agent
or
30
representative
of
a
duly
constituted
labor
organization
acting
31
in
the
collection
of
dues
or
assessments
of
the
organization.
32
8.
In
addition
to
other
penalties
provided
under
this
33
chapter,
whoever
induces
a
worker
working
on
a
public
34
improvement
subject
to
this
chapter
to
give
up
or
forego
35
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any
part
of
the
prevailing
wage
rates
to
which
the
worker
1
is
entitled
under
this
chapter
by
threat
not
to
employ
2
or
by
threat
of
dismissal
from
employment
is
guilty
of
a
3
serious
misdemeanor.
An
agreement
between
the
worker
and
the
4
contractor
or
subcontractor
to
work
for
less
than
the
specified
5
prevailing
wage
rate
shall
not
be
a
defense
to
criminal
6
prosecution.
7
9.
a.
A
contract
shall
not
be
awarded
by
a
public
8
body
to
a
contractor
or
subcontractor
who,
on
two
separate
9
occasions
within
a
three-year
period,
has
been
determined
10
to
have
violated
this
chapter,
or
to
any
firm,
corporation,
11
partnership,
or
association
in
which
the
contractor
or
12
subcontractor
has
any
interest
until
five
years
have
elapsed
13
from
the
date
on
which
a
final
determination
is
rendered
14
finding
the
contractor
or
subcontractor
in
violation
of
this
15
chapter.
16
b.
For
the
purposes
of
this
subsection,
“any
interest”
means
17
an
interest
in
the
entity
bidding
or
performing
work
on
the
18
public
improvement,
whether
as
an
owner,
partner,
officer,
19
manager,
employee,
agent,
consultant,
or
representative.
“Any
20
interest”
includes
but
is
not
limited
to
all
instances
where
the
21
barred
contractor
or
subcontractor
receives
payments,
whether
22
cash
or
any
other
form
of
compensation,
from
any
entity
bidding
23
or
performing
work
on
the
public
improvement,
or
enters
into
24
a
contract
with
the
entity
bidding
or
performing
work
on
the
25
public
improvement
for
services
performed
or
to
be
performed
26
under
contract
that
have
been
or
will
be
assigned
or
sublet,
27
or
for
vehicles,
tools,
equipment,
or
supplies
that
have
been
28
or
will
be
sold,
rented,
or
leased
during
the
period
from
the
29
initiation
of
the
barring
proceedings
until
the
end
of
the
term
30
of
the
barring
period.
“Any
interest”
does
not
include
shares
31
held
in
a
publicly
traded
corporation
if
the
shares
were
not
32
received
as
compensation
after
the
barring
of
an
entity
bidding
33
or
performing
work
on
a
public
improvement.
34
10.
If
the
department
determines
that
a
contractor
or
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subcontractor
has
violated
this
chapter
on
two
separate
1
occasions
within
a
three-year
period,
the
department
shall
2
list
on
the
department’s
internet
site
and
keep
on
record
3
the
name
of
the
contractor
or
subcontractor
and
give
notice
4
by
restricted
certified
mail
of
the
list
to
any
public
body
5
requesting
the
list.
6
11.
Upon
a
determination
that
a
contractor
or
subcontractor
7
has
violated
this
chapter
on
two
separate
occasions
within
a
8
three-year
period,
the
department
shall
notify
the
violating
9
contractor
or
subcontractor
by
restricted
certified
mail.
The
10
contractor
or
subcontractor
has
ten
working
days
to
request
of
11
the
department
a
hearing
before
an
administrative
law
judge
on
12
the
alleged
violation.
Failure
to
respond
within
ten
working
13
days
shall
result
in
automatic
and
immediate
barring
of
the
14
violator
from
work
as
provided
in
subsection
9
and
placement
15
and
publication
of
the
violator’s
name
on
the
department’s
16
internet
site
as
provided
in
subsection
10.
If
the
contractor
17
or
subcontractor
requests
a
hearing
within
ten
working
days
by
18
restricted
certified
mail,
the
department
shall
set
a
hearing
19
before
an
administrative
law
judge
on
the
alleged
violation.
20
The
hearing
shall
take
place
no
later
than
forty-five
calendar
21
days
after
the
receipt
by
the
department
of
the
request
for
a
22
hearing.
An
action
by
an
administrative
law
judge
constitutes
23
final
agency
action
and
is
subject
to
judicial
review
under
24
section
17A.19.
25
12.
The
attorney
general
shall
prosecute
the
cases
26
identified
in
this
section
upon
complaint
by
the
director
or
by
27
any
interested
person.
In
any
proceeding
brought
pursuant
to
28
this
section,
the
director
shall
be
represented
by
the
attorney
29
general.
30
13.
This
section
does
not
give
reason
or
provide
cause
for
31
an
injunction
to
halt
or
delay
any
public
improvement.
32
Sec.
15.
NEW
SECTION
.
91F.13
Apprentices.
33
This
chapter
shall
not
prevent
the
employment
of
apprentices
34
upon
public
improvements.
However,
an
apprentice
employed
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on
a
public
improvement
must
be
registered
with
the
United
1
States
department
of
labor’s
office
of
apprenticeship
under
2
an
apprenticeship
program
registered
with
that
office
or
with
3
the
Iowa
office
of
apprenticeship
under
an
apprenticeship
4
registered
with
that
office,
paid
the
proper
wages
specified
5
in
the
standards
of
apprenticeship,
and
engaged
only
in
the
6
trade
to
which
the
apprentice
is
registered.
If
the
apprentice
7
is
employed
on
a
public
improvement
in
a
trade
to
which
the
8
apprentice
is
not
registered
with
the
United
States
department
9
of
labor’s
office
of
apprenticeship,
the
apprentice
shall
be
10
treated
as
any
other
worker
under
this
chapter.
11
Sec.
16.
IMPLEMENTATION
OF
ACT.
Section
25B.2,
subsection
12
3,
shall
not
apply
to
this
Act.
13
Sec.
17.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
14
2026.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
requires
a
contractor
to
pay
workers
the
same
19
hourly
wage
plus
fringe
benefits
for
a
public
improvement
20
costing
more
than
$25,000
as
prevails
in
the
locality
of
the
21
public
improvement.
The
bill
allows
the
per-hour
wage
rate
to
22
be
based
on
what
is
normally
paid
in
the
area
by
contractors
23
for
similar
projects,
and
to
be
adjusted
on
a
yearly
basis
24
by
the
department
of
inspections,
appeals,
and
licensing
25
(department).
26
The
wage
rates
that
the
workers
must
be
paid
shall
also
27
include
benefits
such
as
medical
care,
life
insurance,
overtime
28
pay,
and
vacation
and
holiday
pay.
The
bill
applies
to
any
29
public
improvement
that
receives
money
from
a
public
body
and
30
includes
most
types
of
public
improvements
from
construction
to
31
road
maintenance
to
painting
to
hauling.
32
The
director
of
the
department
(director)
determines
33
the
wage
rates
for
specific
geographical
areas
and
for
34
specific
crafts,
classifications,
and
types
of
workers.
35
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This
information
must
be
posted
on
the
department’s
internet
1
site.
In
determining
what
the
wage
rate
for
a
worker
is,
the
2
director
may
consult
collective
bargaining
agreements,
wage
3
rate
determinations
for
federal
projects
in
the
same
area,
and
4
other
information
the
department
may
receive
from
contractors
5
who
participate
in
an
apprenticeship
program
approved
by
the
6
federal
office
of
apprenticeship.
7
Any
person
affected
by
the
wage
rates
has
15
days
after
8
the
department
has
posted
the
wage
rates
on
its
internet
site
9
to
object
in
writing,
stating
the
specific
reason
for
the
10
objection,
to
the
director.
The
director
must
reconsider
the
11
determination
being
objected
to,
and
either
affirm
or
modify
it
12
within
15
days
of
receiving
the
objection.
13
If
the
director
declines
to
modify
the
determination,
14
within
10
days,
the
person
affected
may
submit
an
objection
15
in
writing
to
the
department,
stating
the
specific
reasons
16
for
the
objection.
A
hearing
must
be
set
by
the
department
17
before
an
administrative
law
judge
within
45
days
after
the
18
objection
is
filed.
The
person
who
filed
the
objection
must
19
show
the
administrative
law
judge
that
the
wage
rate
was
20
somehow
made
in
error.
The
department
is
required
to
show
how
21
it
determined
the
wage
rate.
The
administrative
law
judge
must
22
make
a
decision
about
the
wage
rate
within
30
days
and
it
is
23
considered
a
final
determination.
24
The
bill
requires
that
contractors
and
subcontractors
not
25
pay
the
workers
less
than
the
established
wage
rate
but
does
26
not
prohibit
them
from
paying
the
workers
more
than
the
wage
27
rate.
The
wage
rate
must
be
paid
without
any
deductions
28
such
as
for
food,
sleeping
quarters,
use
of
tools,
or
safety
29
equipment.
30
The
bill
also
requires
the
public
body
to
monitor
the
31
contractors
and
subcontractors
to
ensure
that
the
wage
rate
32
is
paid.
A
call
for
bids
must
state
that
the
wage
rate
must
33
be
included
in
the
bids
for
the
public
improvement.
All
34
bids
shall
list
the
specific
wage
rates
for
each
craft,
35
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classification,
and
type
of
worker
needed
for
the
public
1
improvement.
All
contractors
and
subcontractors
are
required
2
to
sign
a
contract
that
states
they
will
pay
workers
the
wage
3
rate
determined
by
the
department.
If
the
contractors
and
4
subcontractors
are
found
to
not
be
paying
the
wage
rate,
the
5
contract
states
that
the
contractor’s
or
subcontractor’s
right
6
to
work
on
the
public
improvement
and
get
paid
for
work
already
7
done
may
be
terminated.
8
Before
the
contractor
or
subcontractor
receives
the
final
9
payment
for
the
public
improvement,
the
public
body
overseeing
10
the
public
improvement
must
certify
the
payments
include
proper
11
amounts
due
the
workers,
and
the
contractor
or
subcontractor
12
must
swear
under
oath
that
the
records
are
accurate.
13
The
bill
does
not
apply
to
public
improvement
projects
14
funded
by
the
federal
government
that
require
federal
15
prevailing
wage
rates.
However,
unless
a
federal
provision
16
applies,
if
a
public
improvement
project
is
financed
by
both
a
17
state
public
body
and
the
federal
government,
then
the
higher
18
of
the
applicable
wage
rates
shall
be
paid
to
the
workers.
19
The
bill
also
requires
that
contractors
and
subcontractors
20
keep
detailed
records
for
at
least
three
years
about
the
21
workers,
the
rates
paid,
and
the
hours
worked
for
each
22
public
improvement.
The
records
are
public
records
and
must
23
be
available
for
inspection.
However,
workers’
personal
24
information
is
not
available
to
the
public
for
inspection.
25
During
the
public
improvement,
a
contractor
or
subcontractor
26
must
present
a
certified
weekly
payroll
to
demonstrate
that
27
the
correct
and
full
wage
rate
is
being
paid
to
workers.
The
28
contractors
and
subcontractors
must
make
all
workers
available
29
on-site
to
officials
for
interviews
so
that
the
records’
30
accuracy
can
be
checked.
Contractors
and
subcontractors
must
31
also
post
the
wage
rates
for
each
craft,
classification,
and
32
type
of
worker
in
a
public
place
where
workers
can
see
the
33
posting
or
at
the
place
where
they
receive
their
wages.
34
The
director
is
given
specific
powers
for
investigation,
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enforcement,
and
penalization.
The
director
may
sue
to
prevent
1
a
contractor
or
subcontractor
from
being
awarded
a
contract
for
2
a
public
improvement
when
the
wage
rate
requirements
have
not
3
been
met.
The
director
is
given
the
power
to
withhold
payments
4
if
a
contractor
or
subcontractor
does
not
produce
records
upon
5
request
and
to
pay
the
workers
directly
if
the
contractor
or
6
subcontractor
continues
to
refuse
to
provide
records.
7
After
receiving
a
complaint,
the
director
shall
investigate
8
whether
there
has
been
a
violation.
If
the
director
determines
9
there
has
been
a
violation,
the
contractor
or
subcontractor
10
must
be
given
notice
of
that
violation.
The
notice
is
a
formal
11
written
statement
from
the
department
that
states
the
specific
12
violation
and
the
amount
of
money
due
as
a
penalty.
13
If
a
public
body
has
divided
up
a
public
improvement
to
14
avoid
having
to
pay
the
wage
rate,
the
director
shall
order
15
compliance.
A
worker
who
is
paid
less
than
the
wage
rate
set
by
16
this
law
can
sue
for
the
difference
in
payment
and
collect
the
17
difference
along
with
costs
and
attorney
fees
in
court.
18
The
contractor
or
subcontractor
shall
also
have
to
pay
the
19
department
50
percent
of
the
amount
of
underpayment
and
is
20
liable
to
the
worker
for
punitive
damages
of
up
to
5
percent
21
of
the
underpayments
for
each
month
the
underpayment
remains
22
unpaid
plus
costs
and
attorney
fees.
23
If
a
second
or
subsequent
action
for
underpaying
a
worker
24
is
brought
against
a
contractor
or
subcontractor
within
25
a
three-year
period
and
the
contractor
or
subcontractor
26
is
liable,
the
contractor
or
subcontractor
shall
pay
the
27
department
75
percent
of
the
amount
of
underpayment,
is
liable
28
to
the
worker
for
10
percent
of
the
penalty
for
underpayments
29
for
each
month
following
it
that
the
underpayment
remains
30
unpaid,
and
is
liable
to
the
worker
for
triple
the
difference
31
between
the
amount
paid
to
the
worker
and
the
amount
due
under
32
the
wage
rate
set
by
the
director
plus
costs
and
attorney
fees.
33
The
director
or
any
interested
party
has
a
right
of
action
34
on
behalf
of
any
individual
who
has
a
right
of
action
under
the
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bill.
The
director
may
file
a
lawsuit
in
trust
for
a
worker
who
1
assigns
the
claim
and
then
bring
legal
action
to
collect
the
2
claim.
The
contractor
shall
be
required
to
pay
the
expenses
3
for
collection
of
the
claim.
4
The
bill
prohibits
a
person
from
requesting
or
demanding
5
that
a
worker
pay
back,
return,
donate,
contribute,
or
give
6
any
part
or
all
of
the
worker’s
wages,
salary,
or
thing
of
7
value,
to
any
person
who
asserts
that
failure
to
comply
with
8
the
request
or
demand
will
prevent
the
worker
from
procuring
9
or
retaining
employment.
The
bill
prohibits
a
person
from
10
paying,
requesting,
or
authorizing
any
other
person
to
violate
11
the
requirements
of
the
bill.
However,
these
provisions
do
12
not
apply
to
authorized
labor
organization
representatives
13
collecting
dues
or
assessments.
14
In
addition
to
other
penalties
under
the
bill,
anyone
who
15
attempts
to
get
a
worker
to
give
up
any
part
of
compensation
16
on
a
public
improvement
by
threat
not
to
hire
or
by
threat
of
17
firing
is
guilty
of
a
serious
misdemeanor.
Any
agreement
to
18
work
for
less
than
the
determined
wage
rate
is
not
a
defense
to
19
criminal
prosecution.
A
serious
misdemeanor
is
punishable
by
20
confinement
for
no
more
than
one
year
and
a
fine
of
at
least
21
$430
but
not
more
than
$2,560.
22
If
a
contractor
or
subcontractor
has
violated
the
bill
twice
23
within
a
three-year
period,
the
contractor
or
subcontractor
24
or
any
company
or
group
associated
with
the
contractor
or
25
subcontractor
shall
not
be
given
any
public
improvement
work
26
for
five
years.
The
department
shall
keep
a
list
on
its
27
internet
site
of
contractors
and
subcontractors
who
have
28
violated
the
bill
twice
within
a
three-year
period
and
notify
29
public
bodies
by
restricted
certified
mail.
30
A
contractor
or
subcontractor
who
has
been
notified
of
31
the
second
violation
has
10
days
to
request
a
hearing
before
32
an
administrative
law
judge.
A
hearing
must
be
held
within
33
45
days
of
the
request.
If
no
hearing
is
requested,
the
34
contractor
is
barred
from
receiving
public
improvement
work
and
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its
name
and
information
is
posted
on
the
department’s
internet
1
site.
2
Apprentices
employed
on
a
public
improvement
project
must
3
be
registered
with
the
federal
office
of
apprenticeship
or
the
4
Iowa
office
of
apprenticeship.
Apprentices
must
receive
the
5
wages
set
out
in
the
standards
of
apprenticeship
and
do
only
6
the
work
specified
in
the
trade
to
which
they
are
apprenticed.
7
An
apprentice
not
registered
with
the
federal
program
shall
be
8
paid
the
wage
rate
the
same
as
any
other
worker.
9
The
bill
may
include
a
state
mandate
as
defined
in
Code
10
section
25B.3.
The
bill
makes
inapplicable
Code
section
25B.2,
11
subsection
3,
which
would
relieve
a
political
subdivision
from
12
complying
with
a
state
mandate
if
funding
for
the
cost
of
13
the
state
mandate
is
not
provided
or
specified.
Therefore,
14
political
subdivisions
are
required
to
comply
with
any
state
15
mandate
included
in
the
bill.
16
The
bill
takes
effect
January
1,
2026.
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