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H.B. 253

             1     

EMPLOYMENT OF UNAUTHORIZED ALIENS

             2     
2011 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Christopher N. Herrod

             5     
Senate Sponsor: ____________

             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              .    requiring certification by government entities of compliance with verification
             21      requirements; and
             22              .    providing for enforcement; 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          34A-12-305, Utah Code Annotated 1953
             43      REPEALS:
             44          13-47-101, as enacted by Laws of Utah 2010, Chapter 403
             45          13-47-102, as enacted by Laws of Utah 2010, Chapter 403
             46          13-47-103, as enacted by Laws of Utah 2010, Chapter 403
             47          13-47-201, as enacted by Laws of Utah 2010, Chapter 403
             48          13-47-202, as enacted by Laws of Utah 2010, Chapter 403
             49          13-47-203, as enacted by Laws of Utah 2010, Chapter 403
             50          13-47-204, as enacted by Laws of Utah 2010, Chapter 403
             51     
             52      Be it enacted by the Legislature of the state of Utah:
             53          Section 1. Section 34A-12-101 is enacted to read:
             54     
CHAPTER 12. EMPLOYMENT OF UNAUTHORIZED ALIENS ACT

             55     
Part 1. General Provisions

             56          34A-12-101. Title.
             57          This chapter is known as the "Employment of Unauthorized Aliens Act."
             58          Section 2. Section 34A-12-102 is enacted to read:


             59          34A-12-102. Definitions.
             60          As used in this chapter:
             61          (1) "Agency" means:
             62          (a) an agency, department, board, or commission of this state;
             63          (b) a political subdivision that issues a license in this state; or
             64          (c) an agency, department, board, or commission of a political subdivision described in
             65      Subsection (1)(b).
             66          (2) "Appropriate agency" means an agency that issues a license to an employer who is
             67      subject to an order under Part 3, Enforcement.
             68          (3) "Employ" means to hire an employee on or after July 1, 2011.
             69          (4) (a) "Employee" means an individual who provides services or labor for an employer
             70      in this state for wages or other remuneration.
             71          (b) "Employee" does not include an independent contractor.
             72          (5) (a) "Employer" means:
             73          (i) the state;
             74          (ii) a political subdivision of the state;
             75          (iii) a self-employed person; and
             76          (iv) a person that:
             77          (A) transacts business in this state;
             78          (B) is issued a license by an agency; and
             79          (C) employs one or more employees in this state.
             80          (b) For purposes of an independent contractor, "employer" means the independent
             81      contractor and does not mean the person that uses the contract labor.
             82          (6) "E-verify program" means the employment verification pilot program as jointly
             83      administered by the United States Department of Homeland Security and the Social Security
             84      Administration or any of its successor programs.
             85          (7) (a) "Independent contractor" means a person who:
             86          (i) carries on an independent business;
             87          (ii) contracts to do a piece of work according to the person's own means and methods;
             88      and
             89          (iii) is subject to control only as to results.


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


             121          (e) Title 31A, Insurance Code;
             122          (f) Title 58, Occupational and Professional Licensing;
             123          (g) Title 61, Securities Division - Real Estate Division;
             124          (h) Title 73, Water and Irrigation; or
             125          (i) a license, certificate, or registration similar to one described in this Subsection (12).
             126          (13) "Social Security number verification service" means the program administered by
             127      the Social Security Administration or any of its successor programs.
             128          (14) "Unauthorized alien" is as defined in 8 U.S.C. Sec. 1324a(h)(3).
             129          Section 3. Section 34A-12-103 is enacted to read:
             130          34A-12-103. Construction -- Federal and state law compliance -- Severability.
             131          (1) A term used in this chapter is to be construed to have the meaning given to the term
             132      under federal laws regulating immigration.
             133          (2) This chapter is to be implemented in a manner consistent with:
             134          (a) federal laws regulating immigration;
             135          (b) protecting the civil rights of all persons; and
             136          (c) respecting the privileges and immunities of United States citizens.
             137          (3) This chapter may not be implemented or construed to implement or establish the
             138      REAL ID Act of 2005, Pub. L. 109-13, division B, 119 Stat. 302, including the use of a radio
             139      frequency identification chip.
             140          (4) This chapter may not be construed to require an employer to take any action that the
             141      employer believes in good faith violates federal or state law.
             142          (5) If any provision of this chapter or the application of this chapter to any person or
             143      circumstance is for any reason held invalid, the remainder of the chapter and the application of
             144      the provision to other persons or circumstances shall be given effect without the invalid
             145      provision or application. The provisions of this chapter are severable.
             146          Section 4. Section 34A-12-201 is enacted to read:
             147     
Part 2. Employment Practices

             148          34A-12-201. Employing unauthorized alien.
             149          (1) (a) An employer may not knowingly employ an unauthorized alien.
             150          (b) When an employer uses a contract, subcontract, or other independent contractor
             151      agreement to obtain the labor of an alien in this state, the employer may not knowingly contract


             152      with an unauthorized alien or with a person who employs or contracts with an unauthorized
             153      alien to perform the labor.
             154          (2) (a) An employer may not intentionally employ an unauthorized alien.
             155          (b) When an employer uses a contract, subcontract, or other independent contractor
             156      agreement to obtain the labor of an alien in this state, the employer may not intentionally
             157      contract with an unauthorized alien or with a person who employs or contracts with an
             158      unauthorized alien to perform the labor.
             159          Section 5. Section 34A-12-202 is enacted to read:
             160          34A-12-202. Verification of employment eligibility.
             161          (1) On and after July 1, 2011, a private employer employing 5 or more employees
             162      within the state for each working day in each of 20 calendar weeks or more in the current or
             163      preceding calendar year shall verify the employment eligibility of an employee through the
             164      e-verify program after hiring the employee.
             165          (2) A private employer shall keep a record of the verification required by Subsection
             166      (1) for the longer of:
             167          (a) the duration of the employee's employment; or
             168          (b) at least three years from the date of verification.
             169          Section 6. Section 34A-12-203 is enacted to read:
             170          34A-12-203. Verification a requirement for economic development incentive.
             171          (1) As used in this section:
             172          (a) (i) "Economic development incentive" means a grant, loan, or performance-based
             173      incentive from any government entity that is awarded on or after July 1, 2011.
             174          (ii) "Economic development incentive" does not include an incentive provided under
             175      Title 59, Revenue and Taxation.
             176          (b) "Government entity" means:
             177          (i) the state; or
             178          (ii) a political subdivision of this state that receives and uses tax revenues.
             179          (2) In addition to any other requirement for an employer to receive an economic
             180      development incentive from a government entity, the employer shall register with and
             181      participate in the e-verify program.
             182          (3) (a) Before receiving the economic development incentive, the employer shall


             183      provide proof to the government entity that the employer is registered with and is participating
             184      in the e-verify program.
             185          (b) If a government entity determines that the employer is not complying with this
             186      section, the government entity shall notify the employer by certified mail of the government
             187      entity's determination of noncompliance and the employer's right to appeal the determination in
             188      accordance with Title 63G, Chapter 4, Administrative Procedures Act.
             189          (c) On a final determination of noncompliance, the employer shall repay the money the
             190      employer receives as an economic development incentive to the government entity within 30
             191      days of the day on which a determination under this section becomes final.
             192          Section 7. Section 34A-12-204 is enacted to read:
             193          34A-12-204. Voluntary registration by private employer certifying participation
             194      in verification.
             195          (1) (a) A private employer may register with the Department of Commerce certifying
             196      that the private employer is in compliance with Section 34A-12-202 .
             197          (b) A private employer may register with the Department of Commerce under this
             198      section regardless of whether the private employer is required to comply with Section
             199      34A-12-202 .
             200          (2) To register or renew a registration with the Department of Commerce under this
             201      section, a private employer shall:
             202          (a) file a registration statement with the Department of Commerce that certifies
             203      compliance with Section 34A-12-202 ; and
             204          (b) pay a fee established by the department in accordance with Section 63J-1-504 that
             205      reflects the cost of registering employers under this section and publishing the list described in
             206      Subsection (5).
             207          (3) A registration under this section expires every two years on the anniversary of the
             208      day on which the registration is filed with the Department of Commerce.
             209          (4) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             210      Department of Commerce may make rules to provide for:
             211          (a) the form of a registration statement under this section;
             212          (b) the process of filing a registration statement under this section; and
             213          (c) the process of renewing a registration statement under this section.


             214          (5) The Department of Commerce shall publish electronically a list of private
             215      employers who register under this section on a website accessible to the general public without
             216      a charge.
             217          Section 8. Section 34A-12-205 is enacted to read:
             218          34A-12-205. Liability protections.
             219          (1) An employer may not be held civilly liable under state law in a cause of action for
             220      the employer's unlawful hiring of an unauthorized alien, as defined in 8 U.S.C. Sec. 1324a, if:
             221          (a) the private employer complies with Section 34A-12-202 or 63G-11-103 ; and
             222          (b) the information obtained in accordance with the e-verify program indicates that the
             223      employee's federal legal status allows the employer to hire the employee.
             224          (2) An employer may not be held civilly liable under state law in a cause of action for
             225      the employer's refusal to hire an individual if:
             226          (a) the employer complies with Section 34A-12-202 or 63G-11-103 ; and
             227          (b) the information obtained in accordance with the e-verify program indicates that the
             228      individual's federal legal status is that of an unauthorized alien as defined in 8 U.S.C. Sec.
             229      1324a.
             230          Section 9. Section 34A-12-301 is enacted to read:
             231     
Part 3. Enforcement

             232          34A-12-301. Complaint process.
             233          (1) The attorney general shall prescribe a complaint form for a person to allege a
             234      violation of Section 34A-12-201 . The attorney general may not require a complainant to:
             235          (a) list the complainant's Social Security number on the complaint form; or
             236          (b) have a complaint form notarized.
             237          (2) On receipt of a complaint on a prescribed complaint form alleging that an employer
             238      has violated Section 34A-12-201 , the attorney general or county attorney shall investigate
             239      whether the employer has violated Section 34A-12-201 .
             240          (3) (a) If a complaint is received but is not submitted on a prescribed complaint form,
             241      the attorney general or county attorney may investigate whether the employer has violated
             242      Section 34A-12-201 .
             243          (b) This Subsection (3) may not be construed to prohibit the filing of an anonymous
             244      complaint that is not submitted on a prescribed complaint form.


             245          (4) The attorney general or county attorney may not investigate a complaint that is
             246      based solely on race, color, or national origin.
             247          (5) If a person submits a complaint to a county attorney, the person shall submit the
             248      complaint to the county attorney in the county in which the alleged unauthorized alien is or was
             249      employed by the employer.
             250          (6) A person who knowingly files a false and frivolous complaint under this section is
             251      guilty of a class C misdemeanor.
             252          Section 10. Section 34A-12-302 is enacted to read:
             253          34A-12-302. Investigation process.
             254          (1) The county sheriff or any other local law enforcement agency may assist in
             255      investigating a complaint.
             256          (2) (a) When investigating a complaint, the attorney general or county attorney shall
             257      verify the work authorization of the alleged unauthorized alien with the federal government
             258      pursuant to 8 U.S.C. Sec. 1373(c).
             259          (b) The state or a county, city, or town official may not attempt to independently make
             260      a final determination on whether an alien is authorized to work in the United States. An alien's
             261      immigration status or work authorization status shall be verified with the federal government
             262      pursuant to 8 U.S.C. Sec. 1373(c).
             263          (3) If, after an investigation, the attorney general or county attorney determines that a
             264      complaint is not false and frivolous:
             265          (a) the attorney general or county attorney shall notify the United States Immigration
             266      and Customs Enforcement of the unauthorized alien;
             267          (b) the attorney general or county attorney shall notify the local law enforcement
             268      agency of the unauthorized alien; and
             269          (c) the attorney general shall notify the appropriate county attorney to bring an action
             270      pursuant to Section 34A-12-303 if the complaint was originally filed with the attorney general.
             271          Section 11. Section 34A-12-303 is enacted to read:
             272          34A-12-303. Enforcement action.
             273          (1) The county attorney in the county where an unauthorized alien employee is or was
             274      employed by an employer shall bring an action against the employer for a violation of Section
             275      34A-12-201 . A county attorney may not bring an action against any employer for a violation of


             276      Section 34A-12-201 that occurs before July 1, 2011.
             277          (2) (a) To determine whether an employee is an unauthorized alien, the court shall
             278      consider only the federal government's determination pursuant to 8 U.S.C. Sec. 1373(c).
             279          (b) The federal government's determination creates a rebuttable presumption of the
             280      employee's lawful status. The court may:
             281          (i) take judicial notice of the federal government's determination; and
             282          (ii) request the federal government to provide automated or testimonial verification
             283      pursuant to 8 U.S.C. Sec. 1373(c).
             284          (3) For the purposes of this section, proof of verifying the employment authorization of
             285      an employee through the e-verify program creates a rebuttable presumption that an employer
             286      did not knowingly employ an unauthorized alien.
             287          (4) (a) For the purposes of this section, an employer that establishes that the employer
             288      has complied in good faith with the requirements of 8 U.S.C. Sec. 1324a(b) establishes an
             289      affirmative defense that the employer did not knowingly employ an unauthorized alien.
             290          (b) An employer is considered to have complied with the requirements of 8 U.S.C. Sec.
             291      1324a(b), notwithstanding an isolated, sporadic, or accidental technical or procedural failure to
             292      meet the requirements, if there is a good faith attempt to comply with the requirements.
             293          (5) (a) It is an affirmative defense to a violation of Subsection 34A-12-201 (1) that an
             294      employer is entrapped.
             295          (b) To claim entrapment, an employer shall admit by the employer's testimony or other
             296      evidence the substantial elements of the violation.
             297          (c) An employer who asserts an entrapment defense has the burden of proving the
             298      following by a preponderance of the evidence:
             299          (i) the idea of committing the violation starts with a law enforcement officer or agent
             300      rather than with the employer;
             301          (ii) the law enforcement officer or agent urges and induces the employer to commit the
             302      violation; and
             303          (iii) the employer is not predisposed to commit the violation before the law
             304      enforcement officer or agent urges and induces the employer to commit the violation.
             305          (d) An employer does not establish entrapment if the employer is predisposed to
             306      violate Subsection 34A-12-201 (1) and the law enforcement officer or agent merely provides


             307      the employer with an opportunity to commit the violation.
             308          (e) It is not entrapment for a law enforcement officer or agent to use a ruse or to
             309      conceal the law enforcement officer's or agent's identity. The conduct of a law enforcement
             310      officer or agent may be considered in determining if an employer proves entrapment.
             311          Section 12. Section 34A-12-304 is enacted to read:
             312          34A-12-304. Penalties.
             313          If a court finds a violation of Section 34A-12-201 , the following applies:
             314          (1) (a) For a first violation, the court shall order:
             315          (i) the employer to terminate the employment of unauthorized aliens;
             316          (ii) the employer to file a quarterly report in the form provided in Section 35A-7-104
             317      with the county attorney for an employee who is hired by the employer at the business location
             318      where the unauthorized alien performed work during:
             319          (A) for a violation of Subsection 34A-12-201 (1), a three-year probationary period; or
             320          (B) for a violation of Subsection 34A-12-201 (2), a five-year probationary period;
             321          (iii) the employer to file a signed sworn affidavit with the county attorney within three
             322      business days after the order is issued that states that the employer:
             323          (A) has terminated the employment of any unauthorized alien in this state; and
             324          (B) will not intentionally or knowingly employ an unauthorized alien in this state; and
             325          (iv) the appropriate agencies to suspend each license described in Subsection (4) held
             326      by the employer:
             327          (A) for a violation of Subsection 34A-12-201 (1), if the employer fails to file a signed
             328      sworn affidavit with the county attorney within three business days after the order is issued; or
             329          (B) for a violation of Subsection 34a-12-201 (2), for a minimum of 10 days.
             330          (b) For a first violation of Subsection 34A-12-201 (1), in addition to the penalties under
             331      Subsection (1)(a), a court may order the appropriate agencies to suspend each license described
             332      in Subsection (4) held by the employer for a period not to exceed 10 days.
             333          (c) For a second violation, the court shall order an appropriate agency to permanently
             334      revoke each license described in Subsection (4) held by the employer.
             335          (d) On receipt of an order under this Subsection (1)(c) and notwithstanding any other
             336      law, an appropriate agency shall immediately revoke a license according to the court's order.
             337          (2) (a) On receipt of a court's order and notwithstanding any other law, an appropriate


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


             369      during a probationary period ordered by the court under Subsection (1)(a) for that employer's
             370      business location; or
             371          (ii) a second violation by an employer at a business location if the violation occurs
             372      during a probationary period ordered by the court under Subsection (1)(a) for that employer's
             373      business location.
             374          (b) A second violation of this section shall be based only on an unauthorized alien who
             375      is or was employed by the employer after an action has been brought for a violation of Section
             376      34A-12-201 .
             377          (7) The attorney general shall:
             378          (a) maintain a copy of a court order that is received pursuant to this section;
             379          (b) maintain a database of the employers and business locations that have a first
             380      violation of Subsection 34A-12-201 (1); and
             381          (c) make a court order available on the attorney general's website.
             382          Section 13. Section 34A-12-305 is enacted to read:
             383          34A-12-305. Government entity verification enforcement.
             384          (1) As used in this section:
             385          (a) "Government entity" means:
             386          (i) the state, including:
             387          (A) a department;
             388          (B) an institution;
             389          (C) a board;
             390          (D) a division;
             391          (E) a bureau;
             392          (F) an office;
             393          (G) a commission;
             394          (H) a committee; or
             395          (I) an elected official; and
             396          (ii) a political subdivision of the state, including:
             397          (A) a county;
             398          (B) a city;
             399          (C) a town;


             400          (D) a school district;
             401          (E) a public transit district; or
             402          (F) a special improvement district.
             403          (b) "Verification requirement" means a requirement imposed on a government entity
             404      under this chapter or Section 63G-11-103 .
             405          (2) (a) The chief executive officer of a government entity shall in writing annually
             406      certify on behalf of the government entity whether the government entity was in compliance
             407      with the verification requirements in the previous calendar year.
             408          (b) A chief executive officer who certifies that a government entity was in compliance
             409      with the verification requirements for the previous calendar year knowing that the government
             410      entity was not in compliance is guilty of violating Section 76-8-504 .
             411          (3) If a government entity is otherwise required to prepare an annual report or audit, the
             412      government entity shall include the certification required under Subsection (2) in the annual
             413      report or audit.
             414          (4) A government entity shall provide a copy of the certification to a person at the
             415      request of the person.
             416          Section 14. Repealer.
             417          This bill repeals:
             418          Section 13-47-101, Title.
             419          Section 13-47-102, Definitions.
             420          Section 13-47-103, Scope of chapter.
             421          Section 13-47-201, Verification required for new hires.
             422          Section 13-47-202, Liability protections.
             423          Section 13-47-203, Voluntary registration by private employer certifying
             424      participation in verification.
             425          Section 13-47-204, Department to publish list of registered private employers.
             426          Section 15. Effective date.
             427          This bill takes effect on July 1, 2011.





Legislative Review Note
    as of 1-26-11 11:58 AM


Office of Legislative Research and General Counsel


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