H.B. 156

1

UTAH EMPLOYMENT VERIFICATION ACT
2 2007 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Glenn A. Donnelson
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to workforce services, economic development, and
10 procurement to require employers to participate in a federal program to verify
11 employment eligibility of employees.
12 Highlighted Provisions:
13 This bill:
14 . enacts the Utah Employment Verification Act including:
15 . defining terms;
16 . addressing interpretation of the act;
17 . providing for severability;
18 . requiring participation in the federal employment verification program;
19 . requiring recordkeeping; and
20 . providing for enforcement;
21 . addresses eligibility for economic development incentives; and
22 . addresses state and local procurement.
23 Monies Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 This bill takes effect on July 1, 2007.
27 Utah Code Sections Affected:

28 ENACTS:
29 35A-8-101, Utah Code Annotated 1953
30 35A-8-102, Utah Code Annotated 1953
31 35A-8-103, Utah Code Annotated 1953
32 35A-8-104, Utah Code Annotated 1953
33 35A-8-201, Utah Code Annotated 1953
34 35A-8-202, Utah Code Annotated 1953
35 35A-8-301, Utah Code Annotated 1953
36 35A-8-302, Utah Code Annotated 1953
37 35A-8-303, Utah Code Annotated 1953
38 63-38f-206, Utah Code Annotated 1953
39 63-56-427, Utah Code Annotated 1953
40
41 Be it enacted by the Legislature of the state of Utah:
42 Section 1. Section 35A-8-101 is enacted to read:
43 CHAPTER 8. UTAH EMPLOYMENT VERIFICATION ACT
44 Part 1. General Provisions
45 35A-8-101. Title.
46 This chapter is known as the "Utah Employment Verification Act."
47 Section 2. Section 35A-8-102 is enacted to read:
48 35A-8-102. Definitions.
49 As used in this chapter:
50 (1) "Department" means the Department of Workforce Services created in Section
51 35A-1-103 .
52 (2) "Employee" means an employee as defined in Section 3401, Internal Revenue
53 Code.
54 (3) "Employer" means an employer as defined in Section 3401, Internal Revenue Code.
55 (4) "Federal employment verification program" means a program to electronically
56 verify employment eligibility that is:
57 (a) operated by the United States Department of Homeland Security to verify
58 information of employees pursuant to the Illegal Immigration Reform and Immigrant

59 Responsibility Act of 1996, P.L. 104-128, 110 Stat. 3009, Title IV, Subtitle A, (as amended
60 2002, 2003); or
61 (b) a similar program operated by the United States Department of Homeland Security.
62 (5) "State" means any of the following of the state:
63 (a) a department;
64 (b) a division;
65 (c) a commission;
66 (d) a council;
67 (e) a board;
68 (f) a bureau;
69 (g) a committee;
70 (h) an institution;
71 (i) a government corporation; or
72 (j) other establishment, official, or employee.
73 Section 3. Section 35A-8-103 is enacted to read:
74 35A-8-103. Interpretation of chapter.
75 This chapter shall be interpreted so as to be fully consistent with:
76 (1) federal immigration and labor laws;
77 (2) Title 34, Labor in General;
78 (3) Title 34A, Utah Labor Code; and
79 (4) this title.
80 Section 4. Section 35A-8-104 is enacted to read:
81 35A-8-104. Severability.
82 If any provision of this chapter or the application of a provision to any person or
83 circumstance is held invalid, the invalidity may not affect other provisions or applications of
84 this chapter. The provisions of this chapter are severable.
85 Section 5. Section 35A-8-201 is enacted to read:
86 Part 2. Participation in Federal Employment Verification Program
87 35A-8-201. Participation in federal employment verification program required for
88 employer.
89 (1) By the later of July 1, 2007 or the day on which the employer first employs an

90 employee in this state, an employer employing an employee in this state, including the state or
91 a political subdivision of the state, shall participate in the federal employment verification
92 program.
93 (2) An employer that employs an employee in this state shall verify the employment
94 eligibility of each employee that the employer hires on or after the day on which the employer
95 executes the documentation required under the federal employment verification program to
96 participate in that program.
97 Section 6. Section 35A-8-202 is enacted to read:
98 35A-8-202. Recordkeeping.
99 (1) An employer shall at all times maintain a current copy of the documentation
100 required under the federal employment verification program to participate in that program.
101 (2) An employer shall keep a record of verifying the employment eligibility in
102 accordance with Section 35A-8-201 for each employee described in Subsection 35A-8-201 (2)
103 for the longer of:
104 (a) the time period required under the federal employment verification program; or
105 (b) the period:
106 (i) beginning with the day on which the employee's eligibility is verified under the
107 federal employment verification programs; and
108 (ii) ending one year after the day on which the employee is no longer employed by the
109 employer.
110 Section 7. Section 35A-8-301 is enacted to read:
111 Part 3. Enforcement
112 35A-8-301. Enforcement in general.
113 (1) The department shall enforce this chapter in accordance with this part.
114 (2) The department may:
115 (a) conduct audits of employers; and
116 (b) investigate complaints.
117 Section 8. Section 35A-8-302 is enacted to read:
118 35A-8-302. Violations -- Penalty -- Dedicated credit.
119 (1) The department may impose a civil penalty of $1,000 for:
120 (a) each employee for which the employer does not maintain a record of verifying the

121 employment eligibility in accordance with this chapter; and
122 (b) the employer's failure to maintain a current copy of the documentation required
123 under the federal employment verification program to participate in that program.
124 (2) An imposition of a civil penalty under this section is subject to review in the same
125 manner that a decision or determination involving contribution liability is subject to review
126 under Section 35A-4-508 .
127 (3) The department may collect a civil penalty imposed under this section in the same
128 manner that the Unemployment Insurance Division may collect a contribution liability under
129 Chapter 4, Employment Security Act, including imposing interest or other charges.
130 (4) Any monies collected under this section shall be deposited into the General Fund as
131 a dedicated credit to pay for the costs to the department of implementing this chapter.
132 Section 9. Section 35A-8-303 is enacted to read:
133 35A-8-303. Access to records.
134 (1) The records required by Section 35A-8-202 shall be open to inspection and subject
135 to being copied by the department or the department's authorized representatives at reasonable
136 times and as often as may be necessary.
137 (2) An employer subject to this chapter shall make the personnel records of the
138 employer available to the department to the extent the department determines is necessary to
139 enforce this chapter.
140 Section 10. Section 63-38f-206 is enacted to read:
141 63-38f-206. Employment verification as a requirement for economic development
142 incentives.
143 (1) As used in this section:
144 (a) the terms used in Title 35A, Chapter 8, Utah Employment Verification Act, shall
145 have the same meaning for this section; and
146 (b) "economic development incentive" means one or more of the following:
147 (i) a loan, grant, or other financial assistance described in Part 9, Industrial Assistance
148 Fund;
149 (ii) a partial rebate described in Part 13, Aerospace and Aviation Zone;
150 (iii) a partial rebate described in Part 17, Economic Development Incentives Act;
151 (iv) an incentive described in Part 18, Motion Picture Incentive Fund;

152 (v) monies distributed under Part 19, Economic Development on Military Installations;
153 or
154 (vi) monies or other incentives distributed under Part 21, Economic Development --
155 Government Procurement Contracts.
156 (2) The office shall require as a condition for receipt of an economic development
157 incentive that an employer verify the employer's compliance with Title 35A, Chapter 8, Utah
158 Employment Verification Act.
159 (3) If an employer is found by the Department of Workforce Services to have violated
160 Title 35A, Chapter 8, Utah Employment Verification Act, within one year after the day on
161 which the employer receives or otherwise claims an economic development incentive, the
162 office may require the employer to repay to the state up to the full value of the economic
163 development incentive on the day on which the employer receives or otherwise claims the
164 economic development incentive.
165 (4) An employer described in Subsection (3) shall notify the office of a finding
166 described in Subsection (3) within five business days of the day on which the finding described
167 in Subsection (3) is final.
168 Section 11. Section 63-56-427 is enacted to read:
169 63-56-427. Participation in federal employment verification program.
170 (1) A public procurement unit shall require as a condition of any agreement to procure
171 supplies, services, and construction that if an employer submits in response to a request for
172 proposals a bid, the employer include with the employer's response:
173 (a) a current copy of the documentation required by the federal employment
174 verification program, as defined in Section 35A-8-102 , that the employer participates in the
175 federal employment verification program; and
176 (b) if the employer employs an individual in this state, a statement signed by a person
177 having authority to bind the employer that the employer has not been found by the Department
178 of Workforce Services to have violated Title 35A, Chapter 8, Utah Employment Verification
179 Act, within one year before the day on which the employer submits its response to a bid.
180 (2) (a) An employer described in Subsection (1) is subject to the penalties of
181 Subsection (2)(b) if the employer on or after the day on which the employer submits a bid, but
182 before the termination of any agreement with a public procurement unit to procure supplies,

183 services, and construction:
184 (i) is found to not participate in the federal employment verification program by the
185 United States Department of Homeland Security;
186 (ii) is found by the United States Department of Homeland Security to violate the
187 requirements of the federal employment verification program; or
188 (iii) for an employer who employs an individual in this state, is found by the
189 Department of Workforce Services to have violated Title 35A, Chapter 8, Utah Employment
190 Verification Act.
191 (b) An employer described in Subsection (2)(a) may not enter into a new agreement or
192 renew an agreement to provide supplies, services, or construction to a public procurement unit:
193 (i) if it is a first violation of Subsection (2)(a), for one year beginning on the later of:
194 (A) the day on which the finding described in Subsection (2)(a) becomes final; or
195 (B) the day on which the employer pays in full any civil penalty imposed by the
196 Department of Workforce Services under Title 35A, Chapter 8, Utah Employment Verification
197 Act; or
198 (ii) if it is a second or subsequent violation of Subsection (2)(a), for five years
199 beginning on the later of:
200 (A) the day on which the finding described in Subsection (2)(a) becomes final; or
201 (B) the day on which the employer pays in full any civil penalty imposed by the
202 Department of Workforce Services under Title 35A, Chapter 8, Utah Employment Verification
203 Act.
204 (c) If an employer described in Subsection (2)(a) has an agreement to provide supplies,
205 services, or contraction to a public procurement unit, the employer shall notify the public
206 procurement unit of a finding described in Subsection (2)(a) within five business days of the
207 day on which the finding described in Subsection (2)(a) is final.
208 Section 12. Effective date.
209 This bill takes effect on July 1, 2007.

Legislative Review Note
as of 1-30-07 4:46 PM

Office of Legislative Research and General Counsel