Iowa Legislative Network Bulletin

                                March 10, 2008

From the Desk of Lobbyist Craig Schoenfeld

SSB 3108 Lumber Freedom Bill
Contrary to what was told to us by the Senate Commerce Committee chairman, the lumber "freedom" bill passed out of committee March 5. The bill will now receive a new number and is eligible for debate on the Senate Floor. Senate Majority Leader Mike Gronstal (D – Council Bluffs) will make the decision whether or not to allow the bill to be debated on the floor.

House Study Bill 717 calls for employers to establish the validity of a prospective employee by requiring a state issued identification card (driver's license or non-operator ID) be presented with application for employment. Failure to follow this procedure could result in a civil penalty. Workers are presumed to be employees unless otherwise proven to be an independent contractor. An amendment to the bill proposes to increase contractor registration fees from $25 to $100 for a two-year cycle.

Senate File 2257 creates a pilot project to determine the best method to establish employee verification. The pilot project would be coordinated by the state's office of Homeland Security. The senate file, while still placing the burden of verification on the employer, creates a good faith defense for employers who comply with federal requirements and a rebuttable presumption in favor of the employer when the pilot project method of verification is used.

Both legislative proposals face stumbling blocks, as business groups, organized labor, and civil rights organizations question the methodology of employee verification.

Legislation of interest that was introduced this past week;
HSB 717 EMPLOYMENT PRACTICES Employment Requires employers to verify the identity of each new employee hired to work in the state by examining an Iowa driver's license or id within ten days after hiring. Requires the employer to certify under oath having examined the id and to photocopy the id. Requires the employer to mail a copy to the DWD. Establishes civil penalties. Makes perjury under this provisions a Class D felony. Give the Division of Labor Service enforcement duties. Allows for judicial reviews of an action taken by the Labor Commissioner, but requires the review to be within 30 days of the Commissioner’s actions. Allows non-residents with drivers licenses from other state to get a state id. Identity Theft: Includes attempting to obtain employment and other benefits in the crime of identity theft. Makes identify theft an aggravated misdemeanor if the value of the identity theft cannot be determined.

Independent contractors: Establishes criteria for determining the status of a person as an employee or contractor. Requires the Labor Commissioner to create posters in English and Spanish on the criteria and requires a contractor found to violate these provisions to use the posters. Allows complaints by interested parties, but makes knowingly file a false complaint a simple misdemeanor. Includes additional provisions, including remedies. Other: Adds provisions on agencies sharing data. Gives the DWD various reporting duties. Makes the provisions severable.

Regards,
Paula Siewert, CAE
President
Northwestern Lumber Association
800-469-9078