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UTAH STATE SENATE

UTAH STATE CAPITOL COMPLEX * 320 STATE CAPITOL

P.O. BOX 145115 * SALT LAKE CITY, UTAH 84114-5115 * (801) 538-1035

        February 8, 2008

Mr. President:

    The Government Operations and Political Subdivisions Committee reports a favorable recommendation on S.B. 81, ILLEGAL IMMIGRATION, by Senator J. Hickman, with the following amendments:

1.    Page 1, Line 22 through Page 2, Line 32 :    

             22          .

{       restricts the exemption from paying the nonresident portion of total tuition at a state

             23      institution of higher education to students without lawful immigration status who
             24      meet certain statutory prerequisites and register as an entering student at the
             25      institution prior to May 1, 2010;
             26          .    provides that an individual who is not lawfully present in the United States is not
             27      eligible on the basis of residence within the state for a higher education benefit, to
             28      include scholarships, financial aid, and resident tuition, with one temporary exception;
             29          .    provides for the withholding of state income tax at the top rate from an independent
             30      contractor who fails to provide documentation to the contracting entity that verifies
             31      the independent contractor's employment authorization pursuant to the prohibition
             32      against the use of unauthorized alien labor;  
}


2.    Page 3, Lines 84 through 89 :    

             84          
{   53B-8-106, as enacted by Laws of Utah 2002, Chapter 230   }


             85
     ENACTS:
             86          17-22-9.5, Utah Code Annotated 1953
             87          
{   53B-8-106.5, Utah Code Annotated 1953

             88          59-10-409, Utah Code Annotated 1953  
}

             89          63-99a-101, Utah Code Annotated 1953

3.    Page 11, Line 313 through Page 12, Line 362 :    

             313          
{   Section 4. Section 53B-8-106 is amended to read:

             314          53B-8-106. Resident tuition -- Requirements -- Rules.
             315          (1) If allowed under federal law, a student, other than a nonimmigrant alien within the
             316      meaning of paragraph (15) of subsection (a) of Section 1101 of Title 8 of the United States
             317      Code, shall be exempt from paying the nonresident portion of total tuition if the student:
             318          (a) attended high school in this state for three or more years;
             319          (b) graduated from a high school in this state or received the equivalent of a high
             320      school diploma in this state; and
             321          (c) registers as an entering student at an institution of higher education:
             322          (i) not earlier than the fall of the 2002-03 academic year[.]; and
             323          (ii) before May 1, 2010.
             324          (2) In addition to the requirements under Subsection (1), a student without lawful
             325      immigration status shall file an affidavit with the institution of higher education stating that the
             326      student has filed an application to legalize his immigration status, or will file an application as
             327      soon as [he] the student is eligible to do so.
             328          (3) An institution of higher education shall continue to provide the exemption from
             329      paying the nonresident portion of total tuition for a student who entered the

institution before
             330      May 1, 2010, through the time that the student remains admitted as a student at that institution
             331      in a program of study leading to a degree or a certificate.
             332          [(3)] (4) The State Board of Regents shall make rules for the implementation of this
             333      section.
             334          [(4)] (5) Nothing in this section limits the ability of institutions of higher education to
             335      assess nonresident tuition on students who do not meet the requirements under this section.
             336          Section 5. Section 53B-8-106.5 is enacted to read:
             337          53B-8-106.5. Limitation on higher education benefits.
             338          Except as otherwise provided in Section 53B-8-106 , an individual who is not lawfully
             339      present in the United States is not eligible on the basis of residence within the state for a higher
             340      education benefit, to include:
             341          (1) scholarships;
             342          (2) financial aid; and
             343          (3) resident tuition.
             344          Section 6. Section 59-10-409 is enacted to read:
             345          59-10-409. Withholding of state income tax when lacking verification of lawful
             346      immigration status -- Noncompliance.
             347          (1) If an individual independent contractor, contracting for the physical performance of
             348      services in this state, fails to provide to the contracting entity documentation to verify the
             349      independent contractor's employment authorization pursuant to the prohibition against the use
             350      of unauthorized alien labor through contract set forth in 8 U.S.C., Sec. 1324a (a)(4), the
             351      contracting entity shall withhold state income tax at the top marginal income tax

rate as
             352      provided in Title 59, Chapter 10, Part 4, Withholding of Tax, as applied to compensation paid
             353      to the individual for the performance of the services within this state which exceeds the
             354      minimum amount of compensation the contracting entity is required to report as income to the
             355      United States Internal Revenue Service pursuant to federal law.
             356          (2) A contracting entity who fails to comply with the withholding requirements of this
             357      section is liable for the taxes required to have been withheld unless exempt from federal
             358      withholding with respect to the individual pursuant to Section 1441 of the United States
             359      Internal Revenue Code.
             360          (3) For purposes of this section, "individual" means a resident or nonresident
             361      individual as defined in Section 59-10-103 .  
}

             362          Section

{   7   }        4       . Section 63-99a-101 is enacted to read:


4.    Page 12, Line 366 :    

             366          Section
{   8   }        5       . Section 63-99a-102 is enacted to read:


5.    Page 14, Line 428 :    

             428          Section
{   9   }        6       . Section 63-99a-103 is enacted to read:


6.    Page 16, Line 480 :    

             480          Section
{   10   }        7       . Section 63-99a-104 is enacted to read:

                      
7.    Page 17, Lines 510 through 511 :    



             510          (f) the exemption for paying the nonresident portion of total tuition
{   for the time periods   }        as      

             511      set forth in Section 53B-8-106 .

8.    Page 19, Line 555 :    

             555          Section
{   11   }        8       . Section 67-5-22.5 is enacted to read:


9.    Page 19, Line 564 :    

             564          Section
{   12.   }        9       Section 67-5-26 is enacted to read:


10.    Page 20, Line 596 :    

             596          Section
{   13   }        10       . Section 76-10-2701 is enacted to read:


11.    Page 20, Line 611 :    

             611          Section
{   14   }        11       . Coordinating S.B. 81 with H.B. 63 -- Technical renumbering.


        Respectfully,

        Peter C. Knudson
        Committee Chair

Voting: 4-2-0
3 SB0081.SC1.wpd markandrews/RCN/MDA JLW/ALH 2/8/08 3:58 pm


Bill Number
Action Class
Action Code

*SB0081*
*S*
*SCRAMD*

SB0081
S
SCRAMD