Bill Text: IA HF473 | 2011-2012 | 84th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
House
File
473
-
Introduced
HOUSE
FILE
473
BY
COMMITTEE
ON
LABOR
(SUCCESSOR
TO
HSB
91)
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
Section
1.
Section
26.7,
Code
2011,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
4.
A
governmental
entity
shall
not
in
3
either
the
notice
to
bidders
or
the
contract
documents
require
4
proof
of
satisfaction
of
any
bidder
qualification
standards
5
for
the
bidder
or
its
proposed
subcontractors
if
the
bidder
is
6
required
and
able
to
meet
all
bond
requirements
relating
to
7
payments
and
performance
in
accordance
with
state
law.
This
8
section
does
not
prohibit
a
public
owner
from
exercising
its
9
authority
under
this
chapter
to
determine
whether
the
lowest
10
responsive
bidder
is
a
responsible
bidder
in
accordance
with
11
state
law.
12
Sec.
2.
NEW
SECTION
.
72.6
Public
works
——
contractor
13
qualifications.
14
1.
Definitions.
As
used
in
this
section,
unless
the
context
15
otherwise
provides:
16
a.
“Public
owner”
means
a
public
body
including
the
state
17
or
a
political
subdivision
of
the
state,
an
officer,
official,
18
agency,
authority,
board,
or
commission
of
the
state
or
of
a
19
political
subdivision
of
the
state,
or
an
institution
supported
20
in
whole
or
in
part
by
public
funds.
21
b.
“Public
road
project”
means
a
project
under
the
control
22
of
a
public
owner
for
the
construction,
maintenance,
or
repair
23
of
a
road
or
street
that
is
funded,
in
whole
or
in
part,
by
24
moneys
from
the
road
use
tax
fund.
25
c.
“Public
works”
means
a
building
or
other
construction
26
project
which
is
constructed
under
the
control
of
a
public
27
owner
and
is
paid
for
in
whole
or
in
part
with
funds
of
a
public
28
owner,
including
funds
directed
to
the
public
owner
from
any
29
federal
government
source,
including
grants.
“Public
works”
30
does
not
include
any
work
done
by
or
on
behalf
of
a
drainage
31
or
levee
district
or
any
work
financed
by
federal
funds
where
32
federal
procurement
policy
applicable
to
the
use
of
the
federal
33
funds
is
inconsistent
with
the
requirements
of
this
section.
34
d.
“Public
works
project”
means
the
construction,
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maintenance,
or
repair
of
public
works.
“Public
works
project”
1
does
not
mean
a
public
road
project.
2
2.
Prohibited
criteria.
In
determining
which
bidder
is
the
3
lowest
responsible
bidder
for
purposes
of
awarding
a
contract
4
to
perform
a
public
works
project
or
public
road
project,
a
5
public
owner
shall
not
do
any
of
the
following:
6
a.
Select
a
bidder
based
in
whole
or
in
part
on
a
7
consideration
of
whether
the
bidder’s
employees
belong
to
or
8
are
represented
by
a
labor
union
or
labor
organization.
9
b.
Require
that
the
bidder
selected
enter
into
an
agreement
10
that
directly
or
indirectly
requires
the
bidder
to
recruit,
11
train,
or
hire
employees
from
a
particular
source
to
perform
12
work
on
the
public
works
project
or
public
road
project.
13
c.
Require
the
bidder
or
the
bidder’s
subcontractors
14
or
their
agents
to
enter
into
any
agreement
or
arrangement
15
relating
to
the
public
works
project
or
public
road
project
16
which
imposes
requirements,
controls,
or
limitations
on
17
staffing;
sources
of
employee
referrals;
assignment
of
work;
18
sources
of
insurance
and
benefits
including
health,
life,
and
19
disability
insurance
and
retirement
pensions;
training;
or
20
wages.
This
paragraph
does
not
apply
to
requirements
imposed
21
by
federal
law.
22
3.
Bidding
documents.
Criteria
described
in
this
section
23
that
cannot
be
considered
by
a
public
owner
in
determining
24
who
is
the
lowest
responsible
bidder
shall
be
included
in
any
25
document
requesting
or
inviting
bids
on
public
works
projects
26
or
public
road
projects
subject
to
this
section.
27
Sec.
3.
Section
73A.21,
Code
2011,
is
amended
to
read
as
28
follows:
29
73A.21
Reciprocal
resident
bidder
and
resident
labor
force
30
preference
by
state,
its
agencies,
and
political
subdivisions
——
31
penalties
.
32
1.
For
purposes
of
this
section
:
33
a.
“Commissioner”
means
the
labor
commissioner
appointed
34
pursuant
to
section
91.2,
or
the
labor
commissioner’s
designee.
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b.
“Division”
means
the
division
of
labor
of
the
department
1
of
workforce
development.
2
c.
“Nonresident
bidder”
means
a
person
or
entity
who
does
3
not
meet
the
definition
of
a
resident
bidder.
4
d.
“Public
body”
means
the
state
and
any
of
its
political
5
subdivisions,
including
a
school
district,
public
utility,
or
6
the
state
board
of
regents.
7
a.
e.
“Public
improvement”
means
public
improvements
as
8
defined
in
section
73A.1
a
building
or
other
construction
work
9
to
be
paid
for
in
whole
or
in
part
by
the
use
of
funds
of
the
10
state,
its
agencies,
and
any
of
its
political
subdivisions
and
11
includes
road
construction,
reconstruction,
and
maintenance
12
projects.
13
f.
“Public
utility”
includes
municipally
owned
utilities
and
14
municipally
owned
waterworks.
15
b.
g.
“Resident
bidder”
means
a
person
or
entity
authorized
16
to
transact
business
in
this
state
and
having
a
place
of
17
business
for
transacting
business
within
the
state
at
which
18
it
is
conducting
and
has
conducted
business
for
at
least
six
19
months
three
years
prior
to
the
date
of
the
first
advertisement
20
for
the
public
improvement
and
in
the
case
of
a
corporation,
21
having
at
least
fifty
percent
of
its
common
stock
owned
by
22
residents
of
this
state
.
If
another
state
or
foreign
country
23
has
a
more
stringent
definition
of
a
resident
bidder,
the
more
24
stringent
definition
is
applicable
as
to
bidders
from
that
25
state
or
foreign
country.
26
h.
“Resident
labor
force
preference”
means
a
requirement
in
27
which
all
or
a
portion
of
a
labor
force
working
on
a
public
28
improvement
is
a
resident
of
a
particular
state
or
country.
29
2.
Notwithstanding
this
chapter
,
chapter
73
,
chapter
309
,
30
chapter
310
,
chapter
331
,
or
chapter
384
,
when
a
contract
for
a
31
public
improvement
is
to
be
awarded
to
the
lowest
responsible
32
bidder,
a
resident
bidder
shall
be
allowed
a
preference
as
33
against
a
nonresident
bidder
from
a
state
or
foreign
country
34
which
if
that
state
or
foreign
country
gives
or
requires
a
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any
preference
to
bidders
from
that
state
or
foreign
country
,
1
including
but
not
limited
to
any
preference
to
bidders,
the
2
imposition
of
any
type
of
labor
force
preference,
or
any
other
3
form
of
preferential
treatment
to
bidders
or
laborers
from
that
4
state
or
foreign
country
.
The
preference
is
allowed
shall
5
be
equal
to
the
preference
given
or
required
by
the
state
or
6
foreign
country
in
which
the
nonresident
bidder
is
a
resident.
7
In
the
instance
of
a
resident
labor
force
preference,
a
8
nonresident
bidder
shall
apply
the
same
resident
labor
force
9
preference
to
a
public
improvement
in
this
state
as
would
be
10
required
in
the
construction
of
a
public
improvement
by
the
11
state
or
foreign
country
in
which
the
nonresident
bidder
is
a
12
resident.
13
3.
This
section
applies
to
the
state,
its
agencies,
and
any
14
political
subdivisions
of
the
state.
15
4.
3.
If
it
is
determined
that
this
may
cause
denial
of
16
federal
funds
which
would
otherwise
be
available,
or
would
17
otherwise
be
inconsistent
with
requirements
of
any
federal
law
18
or
regulation
,
this
section
shall
be
suspended,
but
only
to
the
19
extent
necessary
to
prevent
denial
of
the
funds
or
to
eliminate
20
the
inconsistency
with
federal
requirements.
21
4.
The
public
body
involved
in
a
public
improvement
shall
22
require
a
nonresident
bidder
to
specify
on
all
project
bid
23
specifications
and
contract
documents
whether
any
preference
24
as
described
in
subsection
2
is
in
effect
in
the
nonresident
25
bidder’s
state
or
country
of
domicile
at
the
time
of
a
bid
26
submittal.
27
5.
The
commissioner
and
the
division
shall
administer
and
28
enforce
this
section,
and
the
commissioner
shall
adopt
rules
29
for
the
administration
and
enforcement
of
this
section
as
30
provided
in
section
91.6.
31
6.
The
commissioner
shall
have
the
following
powers
and
32
duties
for
the
purposes
of
this
section:
33
a.
The
commissioner
may
hold
hearings
and
investigate
34
charges
of
violations
of
this
section.
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b.
The
commissioner
may,
consistent
with
due
process
of
law,
1
enter
any
place
of
employment
to
inspect
records
concerning
2
labor
force
residency,
to
question
an
employer
or
employee,
and
3
to
investigate
such
facts,
conditions,
or
matters
as
are
deemed
4
appropriate
in
determining
whether
any
person
has
violated
the
5
provisions
of
this
section.
The
commissioner
shall
only
make
6
such
an
entry
in
response
to
a
written
complaint.
7
c.
The
commissioner
shall
develop
a
written
complaint
form
8
applicable
to
this
section
and
make
it
available
in
division
9
offices
and
on
the
department
of
workforce
development’s
10
internet
site.
11
d.
The
commissioner
may
sue
for
injunctive
relief
against
12
the
awarding
of
a
contract,
the
undertaking
of
a
public
13
improvement,
or
the
continuation
of
a
public
improvement
in
14
response
to
a
violation
of
this
section.
15
e.
The
commissioner
may
investigate
and
ascertain
the
16
residency
of
a
worker
engaged
in
any
public
improvement
in
this
17
state.
18
f.
The
commissioner
may
administer
oaths,
take
or
cause
to
19
be
taken
deposition
of
witnesses,
and
require
by
subpoena
the
20
attendance
and
testimony
of
witnesses
and
the
production
of
all
21
books,
registers,
payrolls,
and
other
evidence
relevant
to
a
22
matter
under
investigation
or
hearing.
23
g.
The
commissioner
may
employ
qualified
personnel
as
are
24
necessary
for
the
enforcement
of
this
section.
Such
personnel
25
shall
be
employed
pursuant
to
the
merit
system
provisions
of
26
chapter
8A,
subchapter
IV.
27
h.
The
commissioner
shall
require
a
contractor
or
28
subcontractor
to
file,
within
ten
days
of
receipt
of
a
request,
29
any
records
enumerated
in
subsection
7.
If
the
contractor
or
30
subcontractor
fails
to
provide
the
requested
records
within
ten
31
days,
the
commissioner
may
direct,
within
fifteen
days
after
32
the
end
of
the
ten-day
period,
that
the
fiscal
or
financial
33
office
charged
with
the
custody
and
disbursement
of
funds
of
34
the
public
body
that
contracted
for
construction
of
the
public
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improvement
or
undertook
the
public
improvement,
to
immediately
1
withhold
from
payment
to
the
contractor
or
subcontractor
2
up
to
twenty-five
percent
of
the
amount
to
be
paid
to
the
3
contractor
or
subcontractor
under
the
terms
of
the
contract
4
or
written
instrument
under
which
the
public
improvement
is
5
being
performed.
The
amount
withheld
shall
be
immediately
6
released
upon
receipt
by
the
public
body
of
a
notice
from
7
the
commissioner
indicating
that
the
request
for
records
as
8
required
by
this
section
has
been
satisfied.
9
7.
While
participating
in
a
public
improvement,
a
10
nonresident
bidder
domiciled
in
a
state
or
country
that
11
has
established
a
resident
labor
force
preference
shall
12
make
and
keep,
for
a
period
of
not
less
than
three
years,
13
accurate
records
of
all
workers
employed
by
the
contractor
or
14
subcontractor
on
the
public
improvement.
The
records
shall
15
include
each
worker’s
name,
address,
telephone
number
when
16
available,
social
security
number,
trade
classification,
and
17
the
starting
and
ending
time
of
employment.
18
8.
Any
person
or
entity
that
violates
the
provisions
of
19
this
section
is
subject
to
a
civil
penalty
in
an
amount
not
to
20
exceed
one
thousand
dollars
for
each
violation
found
in
a
first
21
investigation
by
the
division,
not
to
exceed
five
thousand
22
dollars
for
each
violation
found
in
a
second
investigation
23
by
the
division,
and
not
to
exceed
fifteen
thousand
dollars
24
for
a
third
or
subsequent
violation
found
in
any
subsequent
25
investigation
by
the
division.
Each
violation
of
this
section
26
for
each
worker
and
for
each
day
the
violation
continues
27
constitutes
a
separate
and
distinct
violation.
In
determining
28
the
amount
of
the
penalty,
the
division
shall
consider
the
29
appropriateness
of
the
penalty
to
the
person
or
entity
charged,
30
upon
determination
of
the
gravity
of
the
violations.
The
31
collection
of
these
penalties
shall
be
enforced
in
a
civil
32
action
brought
by
the
attorney
general
on
behalf
of
the
33
division.
34
9.
A
party
seeking
review
of
the
division’s
determination
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pursuant
to
this
section
may
file
a
written
request
for
an
1
informal
conference.
The
request
must
be
received
by
the
2
division
within
fifteen
days
after
the
date
of
issuance
of
3
the
division’s
determination.
During
the
conference,
the
4
party
seeking
review
may
present
written
or
oral
information
5
and
arguments
as
to
why
the
division’s
determination
should
6
be
amended
or
vacated.
The
division
shall
consider
the
7
information
and
arguments
presented
and
issue
a
written
8
decision
advising
all
parties
of
the
outcome
of
the
conference.
9
Sec.
4.
Section
331.341,
subsection
2,
Code
2011,
is
amended
10
to
read
as
follows:
11
2.
The
board
shall
give
preference
to
Iowa
products
and
12
labor
in
accordance
with
chapter
73
and
shall
comply
with
bid
13
and
contract
requirements
in
chapter
26
.
14
Sec.
5.
REPEAL.
Sections
73.3
and
73.4,
Code
2011,
are
15
repealed.
16
Sec.
6.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
17
immediate
importance,
takes
effect
upon
enactment.
18
Sec.
7.
APPLICABILITY.
This
Act
applies
to
all
public
19
improvement,
public
works,
and
public
road
projects,
and
to
20
public
improvement,
public
works,
and
public
road
contracts
21
entered
into
on
or
after
July
1,
2011.
22
EXPLANATION
23
This
bill
relates
to
bidding
and
contracting
for
public
24
improvement,
public
works,
and
public
road
projects.
25
The
bill
provides
that
for
a
public
improvement
project,
the
26
public
owner
is
prohibited
in
either
the
invitation
to
bids
or
27
the
contract
documents
from
requiring
proof
of
satisfaction
28
of
any
bidder
qualification
standards
for
the
bidder
or
its
29
proposed
subcontractors
so
long
as
the
bidder
is
required
and
30
able
to
meet
all
payment
and
performance
bond
requirements
31
in
accordance
with
state
law.
The
bill
specifies
that
this
32
prohibition
is
not
intended
to
prohibit
the
public
owner
from
33
exercising
its
authority
under
Code
chapter
26
to
determine
34
whether
the
lowest
responsive
bidder
is
a
responsible
bidder
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in
accordance
with
state
law.
1
The
bill
sets
out
procedural
requirements
which
a
public
2
body
must
follow
when
awarding
a
contract
for
a
public
works
3
project
to
a
bidder
through
a
competitive
bidding
process.
The
4
bill
defines
criteria
that
the
public
body
cannot
consider
5
when
awarding
such
a
contract.
Prohibited
criteria
include
6
whether
the
bidder’s
employees
belong
to
or
are
represented
by
7
a
labor
union;
requiring
the
bidder
to
enter
into
an
agreement
8
that
directly
or
indirectly
requires
the
bidder
to
recruit,
9
train,
or
hire
employees
from
a
particular
source;
or
requiring
10
the
bidder
or
its
subcontractors
or
agents
to
enter
into
an
11
agreement
or
arrangement
imposing
various
other
limitations
12
relating
to
the
bidder’s
employees.
The
bill
requires
the
13
public
body
to
include
the
prohibited
criteria
in
any
document
14
requesting
or
inviting
bids
on
public
works
projects
subject
15
to
the
bill.
16
The
bill
requires
the
labor
commissioner
to
administer
17
and
enforce
Code
section
73A.21,
which
allows
the
state
18
and
political
subdivisions
awarding
a
contract
for
a
public
19
improvement
to
give
a
preference
to
an
Iowa
resident
bidder
20
over
a
nonresident
bidder.
The
preference
must
be
reciprocal
21
to
any
preference
given
to
in-state
resident
bidders
over
22
nonresident
bidders
by
the
state
or
foreign
country
of
a
23
nonresident
bidder.
The
bill
directs
the
labor
commissioner
24
to
hire
necessary
personnel
and
adopt
rules
as
necessary
to
25
administer
Code
section
73A.21.
26
The
bill
includes
in
the
reciprocity
requirement
nonresident
27
bidders
from
a
state
or
foreign
country
which
gives
any
type
28
of
labor
force
preference
or
any
other
form
of
preference
29
to
resident
bidders
or
laborers.
The
bill
provides
that
if
30
the
provisions
of
Code
section
73A.21
may
cause
denial
of
31
federal
funds
which
would
otherwise
be
available,
or
would
32
otherwise
be
inconsistent
with
requirements
of
any
federal
law
33
or
regulation,
the
Code
section
will
be
suspended,
but
only
34
to
the
extent
necessary
to
prevent
denial
of
the
funds
or
to
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eliminate
the
inconsistency
with
federal
requirements.
The
1
bill
requires
a
public
body
involved
in
a
public
improvement
to
2
require
all
nonresident
bidders
to
specify
on
all
project
bid
3
specifications
and
contract
documents
whether
the
nonresident
4
bidder’s
state
or
country
of
residence
has
any
type
of
resident
5
bidder
preference
in
effect
at
the
time
of
a
bid
submittal.
6
The
bill
provides
the
labor
commissioner
with
certain
powers
7
relating
to
nonresident
bidders
for
public
improvement
projects
8
to
enforce
Code
section
73A.21.
The
bill
provides
the
labor
9
commissioner
with
investigative
powers
concerning
nonresident
10
bidders.
Such
powers
include
the
power
to
hold
hearings,
to
11
enter
a
place
of
employment
to
inspect
records
regarding
labor
12
force
residency,
to
question
employees,
and
to
take
depositions
13
and
subpoenas.
The
bill
provides
that
the
labor
commissioner
14
may
sue
for
injunctive
relief
for
violations
of
Code
section
15
73A.21.
The
bill
requires
the
labor
commissioner
to
develop
16
a
written
complaint
form
for
violations.
The
bill
requires
a
17
nonresident
contractor
domiciled
in
a
state
or
country
that
18
has
a
resident
labor
force
preference
to
keep
for
at
least
19
three
years
accurate
records
containing
certain
identifying
20
information
including
residency
for
all
workers
employed
by
21
the
contractor.
The
bill
provides
that
the
labor
commissioner
22
may
direct
that
up
to
25
percent
of
the
contract
price
be
23
withheld
from
the
contractor
if
the
contractor
does
not
file
24
such
records
until
the
records
are
filed.
The
bill
provides
25
for
a
civil
penalty
of
$1,000
for
each
violation
found
during
26
a
first
investigation,
$5,000
for
each
violation
found
during
27
a
second
investigation,
and
$15,000
for
each
violation
found
28
during
a
subsequent
investigation.
The
bill
provides
that
a
29
separate
and
distinct
violation
occurs
for
each
worker
employed
30
by
the
contractor
for
each
day
the
worker
is
employed
by
the
31
contractor.
The
bill
provides
for
a
review
process
with
the
32
division
of
labor
and
sets
out
procedural
requirements.
The
33
bill
modifies
and
adds
applicable
definitions
for
Code
section
34
73A.21.
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The
bill
strikes
the
requirement
in
Code
section
331.341
1
that
a
county
board
of
supervisors
give
preference
to
in-state
2
labor
in
accordance
with
Code
chapter
73
when
contracting
for
3
public
improvement
projects.
4
The
bill
repeals
Code
sections
73.3
and
73.4,
which
require
5
public
bodies
to
give
preference
to
in-state
labor
in
public
6
improvement
or
public
works
projects.
7
The
bill
is
effective
upon
enactment.
8
The
bill
applies
to
all
public
improvement,
public
works,
9
and
public
road
projects,
and
to
public
improvement,
public
10
works,
and
public
road
contracts
entered
into
on
or
after
July
11
1,
2011.
12
The
bill
may
include
a
state
mandate
as
defined
in
Code
13
section
25B.3.
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