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First Substitute H.B. 253

This document includes House Committee Amendments incorporated into the bill on Tue, Feb 15, 2011 at 11:34 AM by jeyring. --> This document includes House Floor Amendments incorporated into the bill on Wed, Feb 23, 2011 at 2:29 PM by lerror. -->

Representative Christopher N. Herrod proposes the following substitute bill:


             1     
EMPLOYMENT OF UNAUTHORIZED ALIENS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Christopher N. Herrod

             5     
Senate Sponsor: D. Chris Buttars

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions related to labor to address verification of an individual's
             10      eligibility under federal law to be employed.
             11      Highlighted Provisions:
             12          This bill:
             13          .    enacts the Employment of Unauthorized Aliens Act, including:
             14              .    defining terms;
             15              .    addressing construction, severability, and compliance with federal and state law;
             16              .    prohibiting the knowing or intentional employment of unauthorized aliens;
             17              .    requiring verification of employment eligibility;
             18              .    imposing verification requirements for economic development incentives;
             19              .    providing for voluntary registration;
             20              .    addressing enforcement; and
             21              .    requiring certification by government entities of compliance with verification
             22      requirements; and
             23          .    repeals the Private Employer Verification Act.
             24      Money Appropriated in this Bill:
             25          None


             26      Other Special Clauses:
             27          This bill takes effect on July 1, 2011.
             28      Utah Code Sections Affected:
             29      ENACTS:
             30          34A-12-101, Utah Code Annotated 1953
             31          34A-12-102, Utah Code Annotated 1953
             32          34A-12-103, Utah Code Annotated 1953
             33          34A-12-201, Utah Code Annotated 1953
             34          34A-12-202, Utah Code Annotated 1953
             35          34A-12-203, Utah Code Annotated 1953
             36          34A-12-204, Utah Code Annotated 1953
             37          34A-12-205, Utah Code Annotated 1953
             38          34A-12-301, Utah Code Annotated 1953
             39          34A-12-302, Utah Code Annotated 1953
             40          34A-12-303, Utah Code Annotated 1953
             41          34A-12-304, Utah Code Annotated 1953
             42      REPEALS:
             43          13-47-101, as enacted by Laws of Utah 2010, Chapter 403
             44          13-47-102, as enacted by Laws of Utah 2010, Chapter 403
             45          13-47-103, as enacted by Laws of Utah 2010, Chapter 403
             46          13-47-201, as enacted by Laws of Utah 2010, Chapter 403
             47          13-47-202, as enacted by Laws of Utah 2010, Chapter 403
             48          13-47-203, as enacted by Laws of Utah 2010, Chapter 403
             49          13-47-204, as enacted by Laws of Utah 2010, Chapter 403
             50     
             51      Be it enacted by the Legislature of the state of Utah:
             52          Section 1. Section 34A-12-101 is enacted to read:
             53     
CHAPTER 12. EMPLOYMENT OF UNAUTHORIZED ALIENS ACT

             54     
Part 1. General Provisions

             55          34A-12-101. Title.
             56          This chapter is known as the "Employment of Unauthorized Aliens Act."


             57          Section 2. Section 34A-12-102 is enacted to read:
             58          34A-12-102. Definitions.
             59          As used in this chapter:
             60          (1) "Agency" means:
             61          (a) an agency, department, board, or commission of this state;
             62          (b) a political subdivision that issues a license in this state; or
             63          (c) an agency, department, board, or commission of a political subdivision described in
             64      Subsection (1)(b).
             65          (2) "Appropriate agency" means an agency that issues a license to an employer who is
             66      subject to an order under Part 3, Enforcement.
             67          (3) "Employ" means to hire an employee on or after July 1, 2011.
             68          (4) (a) "Employee" means an individual who provides services or labor for an employer
             69      in this state for wages or other remuneration.
             70          (b) "Employee" does not include an independent contractor.
             71          (5) (a) "Employer" means:
             72          (i) the state;
             73          (ii) a political subdivision of the state;
             74          (iii) a self-employed person; and
             75          (iv) a person that:
             76          (A) transacts business in this state;
             77          (B) is issued a license by an agency; and
             78          (C) employs one or more employees in this state.
             79          (b) For purposes of an independent contractor, "employer" means the independent
             80      contractor and does not mean the person that uses the contract labor.
             81          (6) (a) "Independent contractor" means a person who:
             82          (i) carries on an independent business;
             83          (ii) contracts to do a piece of work according to the person's own means and methods;
             84      and
             85          (iii) is subject to control only as to results.
             86          (b) Whether a person entity is an independent contractor is determined on a
             87      case-by-case basis through various factors, including whether the person:


             88          (i) supplies the tools or materials;
             89          (ii) makes services available to the general public;
             90          (iii) works or may work for a number of clients at the same time;
             91          (iv) has an opportunity for profit or loss as a result of labor or service provided;
             92          (v) invests in the facilities for work;
             93          (vi) directs the order or sequence in which the work is completed; or
             94          (vii) determines the hours when the work is completed.
             95          (c) "Independent contractor" includes an individual who performs services and is not
             96      an employee pursuant to Section 3508, Internal Revenue Code.
             97          (7) "Intentionally" is as defined in Section 76-2-103 .
             98          (8) (a) "Knowingly employ an unauthorized alien" means an action described in 8
             99      U.S.C. Sec. 1324a.
             100          (b) "Knowingly employ an unauthorized alien" is to be interpreted consistently with 8
             101      U.S.C. Sec. 1324a and applicable federal regulations.
             102          (9) (a) "License" means a permit, certificate, approval, registration, charter, or similar
             103      form of authorization that is:
             104          (i) required by law; and
             105          (ii) issued by any agency for the purposes of operating a business in this state.
             106          (b) "License" includes:
             107          (i) articles of incorporation or articles of organization under Title 16, Corporations, or
             108      Title 48, Partnership; and
             109          (ii) a license issued under Title 59, Revenue and Taxation.
             110          (c) "License" does not include a professional license.
             111          (10) "Private employer" means a person listed in Subsection (5)(a)(iii) or (iv).
             112          (11) "Professional license" means a license, certificate, or registration issued under:
             113          (a) Title 4, Utah Agricultural Code;
             114          (b) Title 7, Financial Institutions Act;
             115          (c) Title 19, Environmental Quality Code;
             116          (d) Title 26, Utah Health Code;
             117          (e) Title 31A, Insurance Code;
             118          (f) Title 58, Occupational and Professional Licensing;


             119          (g) Title 61, Securities Division - Real Estate Division;
             120          (h) Title 73, Water and Irrigation; or
             121          (i) a license, certificate, or registration similar to one described in this Subsection (12).
             122          (12) "Social Security number verification service" means the program administered by
             123      the Social Security Administration or any of its successor programs.
             124          (13) (a) "Status verification system" means an electronic system operated by the federal
             125      government, through which a person may verify the citizenship or immigration status of an
             126      individual within the jurisdiction of the agency or political subdivision for a purpose authorized
             127      under this section.
             128          (b) "Status verification system" includes:
             129          (i) the electronic verification of the work authorization program of the Illegal
             130      Immigration Reform and Immigration Responsibility Act of 1996, 8 U.S.C., Sec. 1324a,
             131      known as the E-verify Program;
             132          (ii) an equivalent federal program designated by the United States Department of
             133      Homeland Security or other federal agency authorized to verify the work eligibility status of a
             134      newly hired employee pursuant to the Immigration Reform and Control Act of 1986;
             135          (iii) the Social Security Number Verification Service or similar online verification
             136      process implemented by the United States Social Security Administration; or
             137          (iv) an independent third-party system with an equal or higher degree of reliability as
             138      the programs, systems, or processes described in Subsection (1)(b)(i), (ii), or (iii).
             139          (14) "Unauthorized alien" is as defined in 8 U.S.C. Sec. 1324a(h)(3).
             140          Section 3. Section 34A-12-103 is enacted to read:
             141          34A-12-103. Construction -- Federal and state law compliance -- Severability.
             142          (1) A term used in this chapter is to be construed to have the meaning given to the term
             143      under federal laws regulating immigration.
             144          (2) This chapter is to be implemented in a manner consistent with:
             145          (a) federal laws regulating immigration;
             146          (b) protecting the civil rights of all persons; and
             147          (c) respecting the privileges and immunities of United States citizens.
             148          (3) This chapter may not be implemented or construed to implement or establish the
             149      REAL ID Act of 2005, Pub. L. 109-13, division B, 119 Stat. 302, including the use of a radio


             150      frequency identification chip.
             151          (4) This chapter may not be construed to require an employer to take any action that the
             152      employer believes in good faith violates federal or state law.
             153          (5) If any provision of this chapter or the application of this chapter to any person or
             154      circumstance is for any reason held invalid, the remainder of the chapter and the application of
             155      the provision to other persons or circumstances shall be given effect without the invalid
             156      provision or application. The provisions of this chapter are severable.
             157          Section 4. Section 34A-12-201 is enacted to read:
             158     
Part 2. Employment Practices

             159          34A-12-201. Employing unauthorized alien.
             160          (1) (a) An employer may not knowingly employ an unauthorized alien.
             161          (b) When an employer uses a contract, subcontract, or other independent contractor
             162      agreement to obtain the labor of an alien in this state, the employer may not knowingly contract
             163      with an unauthorized alien or with a person who employs or contracts with an unauthorized
             164      alien to perform the labor.
             165          (2) (a) An employer may not intentionally employ an unauthorized alien.
             166          (b) When an employer uses a contract, subcontract, or other independent contractor
             167      agreement to obtain the labor of an alien in this state, the employer may not intentionally
             168      contract with an unauthorized alien or with a person who employs or contracts with an
             169      unauthorized alien to perform the labor.
             170          Section 5. Section 34A-12-202 is enacted to read:
             171          34A-12-202. Verification of employment eligibility.
             172          (1) On and after July 1, 2011, a private employer employing H. [ 5 ] 15 .H or
             172a      more employees
             173      within the state for each working day in each of 20 calendar weeks or more in the current or
             174      preceding calendar year shall verify the employment eligibility of H. [ an ] a new .H employee
             174a      through a status
             175      verification system.
             176          (2) A private employer shall keep a record of the verification required by Subsection
             177      (1) for the longer of:
             178          (a) the duration of the employee's employment; H. [ or ] .H
             179          (b) at least three years from the date of H. [ verification ] employment; or
             179a          (c) one year from the date of termination of the employee's employment .H .
             180          Section 6. Section 34A-12-203 is enacted to read:


             181          34A-12-203. Verification a requirement for economic development incentive.
             182          (1) As used in this section:
             183          (a) (i) "Economic development incentive" means a grant, loan, or performance-based
             184      incentive from any government entity that is awarded on or after July 1, 2011.
             185          (ii) "Economic development incentive" does not include an incentive provided under
             186      Title 59, Revenue and Taxation.
             187          (b) "Government entity" means:
             188          (i) the state; or
             189          (ii) a political subdivision of this state that receives and uses tax revenues.
             190          (2) In addition to any other requirement for an employer to receive an economic
             191      development incentive from a government entity, the employer shall register with and
             192      participate in a status verification system.
             193          (3) (a) Before receiving the economic development incentive, the employer shall
             194      provide proof to the government entity that the employer is registered with and is participating
             195      in a status verification system.
             196          (b) If a government entity determines that the employer is not complying with this
             197      section, the government entity shall notify the employer by certified mail of the government
             198      entity's determination of noncompliance and the employer's right to appeal the determination in
             199      accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             200          (c) On a final determination of noncompliance, the employer shall repay the money the
             201      employer receives as an economic development incentive to the government entity within 30
             202      days of the day on which a determination under this section becomes final.
             203          Section 7. Section 34A-12-204 is enacted to read:
             204          34A-12-204. Voluntary registration by private employer certifying participation
             205      in verification.
             206          (1) (a) A private employer may register with the Department of Commerce certifying
             207      that the private employer is in compliance with Section 34A-12-202 .
             208          (b) A private employer may register with the Department of Commerce under this
             209      section regardless of whether the private employer is required to comply with Section
             210      34A-12-202 .
             211          (2) To register or renew a registration with the Department of Commerce under this


             212      section, a private employer shall:
             213          (a) file a registration statement with the Department of Commerce that certifies
             214      compliance with Section 34A-12-202 ; and
             215          (b) pay a fee established by the department in accordance with Section 63J-1-504 that
             216      reflects the cost of registering employers under this section and publishing the list described in
             217      Subsection (5).
             218          (3) A registration under this section expires every two years on the anniversary of the
             219      day on which the registration is filed with the Department of Commerce.
             220          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             221      Department of Commerce may make rules to provide for:
             222          (a) the form of a registration statement under this section;
             223          (b) the process of filing a registration statement under this section; and
             224          (c) the process of renewing a registration statement under this section.
             225          (5) The Department of Commerce shall publish electronically a list of private
             226      employers who register under this section on a website accessible to the general public without
             227      a charge.
             228          Section 8. Section 34A-12-205 is enacted to read:
             229          34A-12-205. Liability protections.
             230          (1) An employer may not be held civilly liable under state law in a cause of action for
             231      the employer's unlawful hiring of an unauthorized alien, as defined in 8 U.S.C. Sec. 1324a, if:
             232          (a) the private employer complies with Section 34A-12-202 or 63G-11-103 ; and
             233          (b) the information obtained in accordance with the status verification system indicates
             234      that the employee's federal legal status allows the employer to hire the employee.
             235          (2) An employer may not be held civilly liable under state law in a cause of action for
             236      the employer's refusal to hire an individual if:
             237          (a) the employer complies with Section 34A-12-202 or 63G-11-103 ; and
             238          (b) the information obtained in accordance with the status verification system indicates
             239      that the individual's federal legal status is that of an unauthorized alien as defined in 8 U.S.C.
             240      Sec. 1324a.
             241          Section 9. Section 34A-12-301 is enacted to read:
             242     
Part 3. Enforcement


             243          Section 10. Section 34A-12-301 is enacted to read:
             244          34A-12-301. Investigation process.
             245          (1) The attorney general or county attorney may not investigate a complaint that is
             246      based solely on race, color, or national origin.
             247          (2) The county sheriff or any other local law enforcement agency may assist in
             248      investigating a complaint.
             249          (3) (a) When investigating a complaint, the attorney general or county attorney may
             250      only verify the work authorization of the alleged unauthorized alien with the federal
             251      government pursuant to 8 U.S.C. Sec. 1373(c).
             252          (b) The state or a county, city, or town official may not attempt to independently make
             253      a final determination on whether an alien is authorized to work in the United States. An alien's
             254      immigration status or work authorization status may only be verified with the federal
             255      government pursuant to 8 U.S.C. Sec. 1373(c).
             256          (4) If, after an investigation, the attorney general or county attorney determines that a
             257      complaint is not false and frivolous:
             258          (a) the attorney general or county attorney may notify the United States Immigration
             259      and Customs Enforcement of the unauthorized alien;
             260          (b) the attorney general or county attorney may notify the local law enforcement agency
             261      of the unauthorized alien; and
             262          (c) the attorney general may notify the appropriate county attorney to bring an action
             263      pursuant to Section 34A-12-303 if the complaint was originally filed with the attorney general.
             264          Section 11. Section 34A-12-302 is enacted to read:
             265          34A-12-302. Enforcement action.
             266          (1) The county attorney in the county where an unauthorized alien employee is or was
             267      employed by an employer may bring an action against the employer for a violation of Section
             268      34A-12-201 . A county attorney may not bring an action against any employer for a violation of
             269      Section 34A-12-201 that occurs before July 1, 2011.
             270          (2) (a) To determine whether an employee is an unauthorized alien, the court shall
             271      consider only the federal government's determination pursuant to 8 U.S.C. Sec. 1373(c).
             272          (b) The federal government's determination creates a rebuttable presumption of the
             273      employee's lawful status. The court may:


             274          (i) take judicial notice of the federal government's determination; and
             275          (ii) request the federal government to provide automated or testimonial verification
             276      pursuant to 8 U.S.C. Sec. 1373(c).
             277          (3) For the purposes of this section, proof of verifying the employment authorization of
             278      an employee through a status verification system creates a rebuttable presumption that an
             279      employer did not knowingly employ an unauthorized alien.
             280          (4) (a) For the purposes of this section, an employer that establishes that the employer
             281      has complied in good faith with the requirements of 8 U.S.C. Sec. 1324a(b) establishes an
             282      affirmative defense that the employer did not knowingly employ an unauthorized alien.
             283          (b) An employer is considered to have complied with the requirements of 8 U.S.C. Sec.
             284      1324a(b), notwithstanding an isolated, sporadic, or accidental technical or procedural failure to
             285      meet the requirements, if there is a good faith attempt to comply with the requirements.
             286          (5) (a) It is an affirmative defense to a violation of Subsection 34A-12-201 (1) that an
             287      employer is entrapped.
             288          (b) To claim entrapment, an employer shall admit by the employer's testimony or other
             289      evidence the substantial elements of the violation.
             290          (c) An employer who asserts an entrapment defense has the burden of proving the
             291      following by a preponderance of the evidence:
             292          (i) the idea of committing the violation starts with a law enforcement officer or agent
             293      rather than with the employer;
             294          (ii) the law enforcement officer or agent urges and induces the employer to commit the
             295      violation; and
             296          (iii) the employer is not predisposed to commit the violation before the law
             297      enforcement officer or agent urges and induces the employer to commit the violation.
             298          (d) An employer does not establish entrapment if the employer is predisposed to
             299      violate Subsection 34A-12-201 (1) and the law enforcement officer or agent merely provides
             300      the employer with an opportunity to commit the violation.
             301          (e) It is not entrapment for a law enforcement officer or agent to use a ruse or to
             302      conceal the law enforcement officer's or agent's identity. The conduct of a law enforcement
             303      officer or agent may be considered in determining if an employer proves entrapment.
             304          Section 12. Section 34A-12-303 is enacted to read:


             305          34A-12-303. Penalties.
             306          If a court finds a violation of Section 34A-12-201 , the following applies:
             307          (1) (a) For a first violation, the court shall order:
             308          (i) the employer to terminate the employment of unauthorized aliens;
             309          (ii) the employer to file a quarterly report in the form provided in Section 35A-7-104
             310      with the county attorney for an employee who is hired by the employer at the business location
             311      where the unauthorized alien performed work during:
             312          (A) for a violation of Subsection 34A-12-201 (1), a three-year probationary period; or
             313          (B) for a violation of Subsection 34A-12-201 (2), a five-year probationary period;
             314          (iii) the employer to file a signed H. , .H sworn affidavit with the county
             314a      attorney within 15
             315      days after the order is issued that states that the employer:
             316          (A) has terminated the employment of any unauthorized alien in this state; and
             317          (B) will not intentionally or knowingly employ an unauthorized alien in this state; and
             318          (iv) the appropriate agencies to suspend each license described in Subsection (4) held
             319      by the employer:
             320          (A) for a violation of Subsection 34A-12-201 (1), if the employer fails to
             320a      file a signed H. , .H
             321      sworn affidavit with the county attorney within 15 days after the order is issued; or
             322          (B) for a violation of Subsection H. [ 34a-12-201 ] 34A-12-201 .H (2), for a minimum of
             322a      three days.
             323          (b) For a first violation of Subsection 34A-12-201 (1), in addition to the penalties under
             324      Subsection (1)(a), a court may order the appropriate agencies to suspend each license described
             325      in Subsection (4) held by the employer for a period not to exceed three days.
             326          (c) For a second violation, the court shall order an appropriate agency to permanently
             327      revoke each license described in Subsection (4) held by the employer.
             328          (d) On receipt of an order under H. [ this ] .H Subsection (1)(c) and
             328a      notwithstanding any other
             329      law, an appropriate agency shall immediately revoke a license according to the court's order.
             330          (2) (a) On receipt of a court's order and notwithstanding any other law, an appropriate
             331      agency shall suspend a license according to the court's order.
             332          (b) A license that is suspended under Subsection (1)(a)(iv)(A) shall remain suspended
             333      until the employer files a signed H. , .H sworn affidavit with the county attorney.
             334          (c) Notwithstanding any other law, for a license suspended under Subsection
             335      (1)(a)(iv)(A), once an employer files an affidavit as required by Subsection (1)(a)(iii), an


             336      appropriate agency shall reinstate a suspended license immediately.
             337          (3) For purposes of Subsection (1)(a)(iv)(B) or (1)(b), a court shall base the court's
             338      decision on the length of the suspension under this section on evidence or information
             339      submitted to the court during the action for a violation of Section 34A-12-201 , and consider the
             340      following factors, if relevant:
             341          (a) the number of unauthorized aliens employed by the employer;
             342          (b) prior misconduct by the employer;
             343          (c) the degree of harm resulting from the violation;
             344          (d) whether the employer made good faith efforts to comply with any applicable
             345      requirements;
             346          (e) the duration of the violation;
             347          (f) the role of the directors, officers, or principals of the employer in the violation; and
             348          (g) any other factor the court considers appropriate.
             349          (4) (a) For the purposes of this section, a license that is subject to suspension or
             350      revocation under this section is a license that is:
             351          (i) held by an employer; and
             352          (ii) specific to the business location where an unauthorized alien performs work.
             353          (b) Notwithstanding Subsection (4)(a), if an employer does not hold a license specific
             354      to the business location where an unauthorized alien performs work, but a license is necessary
             355      to operate the employer's business in general, a license that is subject to suspension or
             356      revocation under this section is a license that is held by the employer at the employer's primary
             357      place of business.
             358           H. [ (5) A court shall send a copy of the court's order to the attorney general and the
             359      attorney general shall maintain the copy pursuant to Subsection (7).
]

             360           [ (6) ] (5) .H (a) A violation is considered:
             361          (i) a first violation by an employer at a business location if the violation does not occur
             362      during a probationary period ordered by the court under Subsection (1)(a) for that employer's
             363      business location; or
             364          (ii) a second violation by an employer at a business location if the violation occurs
             365      during a probationary period ordered by the court under Subsection (1)(a) for that employer's
             366      business location.


             367          (b) A second violation of this section shall be based only on an unauthorized alien who
             368      is or was employed by the employer after an action has been brought for a violation of Section
             369      34A-12-201 .
             370          Section 13. Section 34A-12-304 is enacted to read:
             371          34A-12-304. Government entity verification enforcement.
             372          (1) As used in this section:
             373          (a) "Government entity" means:
             374          (i) the state, including:
             375          (A) a department;
             376          (B) an institution;
             377          (C) a board;
             378          (D) a division;
             379          (E) a bureau;
             380          (F) an office;
             381          (G) a commission;
             382          (H) a committee; or
             383          (I) an elected official; and
             384          (ii) a political subdivision of the state, including:
             385          (A) a county;
             386          (B) a city;
             387          (C) a town;
             388          (D) a school district;
             389          (E) a public transit district; or
             390          (F) a special improvement district.
             391          (b) "Verification requirement" means a requirement imposed on a government entity
             392      under this chapter or Section 63G-11-103 .
             393          (2) (a) The chief executive officer of a government entity shall in writing annually
             394      certify on behalf of the government entity whether the government entity was in compliance
             395      with the verification requirements in the previous calendar year.
             396          (b) A chief executive officer who certifies that a government entity was in compliance
             397      with the verification requirements for the previous calendar year knowing that the government


             398      entity was not in compliance is guilty of violating Section 76-8-504 .
             399          (3) If a government entity is otherwise required to prepare an annual report or audit, the
             400      government entity shall include the certification required under Subsection (2) in the annual
             401      report or audit.
             402          (4) A government entity shall provide a copy of the certification to a person at the
             403      request of the person.
             404          Section 14. Repealer.
             405          This bill repeals:
             406          Section 13-47-101, Title.
             407          Section 13-47-102, Definitions.
             408          Section 13-47-103, Scope of chapter.
             409          Section 13-47-201, Verification required for new hires.
             410          Section 13-47-202, Liability protections.
             411          Section 13-47-203, Voluntary registration by private employer certifying
             412      participation in verification.
             413          Section 13-47-204, Department to publish list of registered private employers.
             414          Section 15. Effective date.
             415          This bill takes effect on July 1, 2011.


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