Bill Text: IA HF473 | 2011-2012 | 84th General Assembly | Amended
Bill Title: A bill for an act relating to bidding and contracting for public improvement, public works, and public road projects and including effective date and applicability provisions. (Formerly HSB 91)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2011-12-31 - END OF 2011 ACTIONS [HF473 Detail]
Download: Iowa-2011-HF473-Amended.html
House
File
473
-
Reprinted
HOUSE
FILE
473
BY
COMMITTEE
ON
LABOR
(SUCCESSOR
TO
HSB
91)
(As
Amended
and
Passed
by
the
House
March
23,
2011
)
A
BILL
FOR
An
Act
relating
to
bidding
and
contracting
for
public
1
improvement,
public
works,
and
public
road
projects
and
2
including
effective
date
and
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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473
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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
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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
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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
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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
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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
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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
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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
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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
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