DES MOINES, IA — The Iowa Senate on Wednesday passed a bill that will limit local governments' ability to impose certain workforce and training requirements on construction contracts. The legislation, known as Senate File 603, addresses a concern raised by Republicans over local entities, particularly in Des Moines, potentially favoring unions in construction contracts.

The bill, which also includes changes to Iowa’s taxable wage credit and the definition of taxable wages, now heads to the governor for final approval. The legislation also includes a new provision preventing cities, counties, and school districts from mandating apprenticeship training for contractors unless required by law.

A Shift in Local Contracting Authority

Rep. Bobby Kaufmann, R-Wilton, explained that the provision was introduced to address concerns over local governments creating requirements that may favor unions or organizations that offer apprenticeship programs. “Belonging to a union is a great thing,” Kaufmann said. “Guess what? They can still bid on these contracts. They just can’t have a local entity — the city of Des Moines — decide that they’re a licensing entity. They’re not.”

Supporters of the bill argue that it prevents the city of Des Moines and other local governments from using tax increment financing (TIF) dollars to impose additional workforce restrictions. Kaufmann emphasized that the measure aims to ensure fairness in the bidding process while maintaining the ability for union contractors to compete.

Opposition from Local Government Advocates

However, some Democrats and Republicans voiced concerns that the bill's broader impact could undermine local governments' ability to implement safety and training requirements. Sen. Charlie McClintock, R-Alburnett, criticized the bill, arguing that it would place undue burdens on local governments trying to improve worker safety and efficiency. “I was a mayor before I came here, years and years ago — nobody was complaining about this,” McClintock said. “I don’t think any of my colleagues have been approached by anyone to do this. I don’t see any urgency here to do this right now today.”

Opponents also argue that the bill could have unintended consequences, particularly when it comes to ensuring workers are properly trained for construction projects. Sen. Bill Dotzler, D-Waterloo, voiced concerns that the bill would prevent local efforts to improve worker safety. “This isn’t about union apprenticeships, it’s about apprenticeships, whether they’re non-union or union,” Dotzler said. “Why are we rushing through a bill, as Sen. McClintock said, where we haven’t had a chance to vet it properly?”

Protecting Local Jobs and Workers

Sen. Thomas Townsend, D-Dubuque, expressed concerns about how the bill could impact local workers. He argued that local governments often use restrictions to keep jobs within the state. “When you go totally with low bid, totally with all this other stuff, without any other type of protections in there — you drive past there, and there’s not hardly a license plate from Iowa on those jobs,” Townsend said.

Sen. Cindy Winckler, D-Davenport, added that the bill could create conflicts with Iowa local governments seeking federal Community Development Block Grants, as these grants come with wage requirements that local governments would not be able to enforce under the new measure.

Republican Defenders of the Bill

Sen. Jason Schultz, R-Schleswig, the floor manager for the bill, defended the legislation as a necessary step to preserve the status quo. He said it was important to allow contractors to bid on projects in a way that fosters competition and economic growth. “Iowa’s doing pretty well. Economy is growing, unemployment is lower than the national average, and all of Iowa’s workers deserve the opportunity to have their employers go out, look to bid for jobs, and compete on a level playing field,” Schultz said.

The bill now heads to Governor Kim Reynolds for final approval, after passing with bipartisan support. However, its passage may set the stage for future debates over the role of local governments in regulating construction practices and workforce requirements.

Looking Ahead: Broader Implications

The passage of Senate File 603 reflects the ongoing tension between state lawmakers and local governments over control of contracting policies and workforce training requirements. As cities and counties in Iowa continue to work on infrastructure projects, local leaders will need to navigate these new restrictions while balancing the desire for a trained workforce with the goal of fostering competition and ensuring fairness in the bidding process. The future impact of the legislation will likely be a point of discussion in local governments and industry circles for some time.

Originally reported by Robin Opsahl Iowa Capital Dispatch.