From the Desk of Senator Zimmer
Chapter 26 of the Iowa Code pertains to Public Construction Bidding for projects that exceed $100,000. A public entity is required to accept the lowest bid unless it’s determined to be “not responsive” (the bid was submitted late) or if the bidder is deemed “not responsible” based upon factors such as financial capacity, experience, or ability to secure bonds and insurance. The lowest responsive bidder has the right to “sue” the governmental agency if they believe the rejection was arbitrary or capricious.
When contractors submit a low bid by using minimally trained workers, the project can encounter building code violations, substandard workmanship, OSHA safety violations, construction delays related to redoing work, or worse yet, having to secure a properly trained company to complete the work. Oftentimes, the governmental agency will not realize the substandard work until well into the project or, worse, after completion. To avoid future lawsuits or delays, governmental agencies may include specific contract language pertaining to worker competence such as licenses or apprenticeship training.
On March 12, 2025, the Senate passed SF603 related to “cleaning” up language within the Iowa Workforce Development Division. With bipartisan support, the bill passed 48-0 and was sent to the House for approval. Late Tuesday, March 18, House Representative Bobby Kaufmann added a non-germane (not related to the bill) amendment that stated that a public entity could not impose additional restrictions not already found in Iowa Code related to ensuring that highly qualified individuals would be working on the project. This amendment was so controversial, the House had to suspend their own rules regarding germaneness to pass it. On Wednesday, March 19, within only 14 hours of submission, Senate Republicans brought this newly amended bill to the floor for debate. The amendment specifically prohibited an apprenticeship requirement to ensure that there are highly qualified individuals completing the work.
While the intent of the amendment was to target labor unions by using the term “apprenticeship,” it did not take into account the efforts over the past nine years of ensuring that 70% of Iowans would secure a certificate, diploma, or degree within six years of graduating high school. Iowa High Schools, Community Colleges, Non-Union and Union training centers saw increased U.S. Department of Labor (DoL) apprenticeship participation in CNC machining, welding, construction, and more. While trade unions are often synonymous with holding apprenticeship programs, that is not always true.
Both Governors Branstad and Reynolds made increasing Iowans’ skill level/knowledge one of their signature accomplishments. With a single, hastily crafted amendment, those efforts were completely undermined. Why would the Iowa Legislature approve taking the state in the opposite direction of supporting these apprenticeships by highly skilled and trained Iowans? The answer can only be found in their utter disdain for union trained workers. Senate Democrats and some Republicans, pleaded with our colleagues to either reject the amendment or at the very least defer passage until further research could be conducted to ensure that this bill would not violate any Federal regulations. Do you recall the Iowa Legislature passing the 2023 Child Labor law in violation of the Federal Labor Law and local businesses being fined even though both had been repeatedly warned? For building contracts receiving funds through the Inflation Reduction Act, the employment of apprentices from registered apprenticeship programs (DoL) and compliance with prevailing wage requirements are needed to qualify for increased credit amounts. When asked during debate if this requirement had been considered, the answer was, “we will be fine”.