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H.B. 477

This document includes House Committee Amendments incorporated into the bill on Wed, Feb 29, 2012 at 4:03 PM by jeyring. -->              1     

EMPLOYMENT AND VERIFICATION REQUIREMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Stephen E. Sandstrom

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Utah Labor Code, general government provisions, and oversight
             10      provisions to adopt the Utah Illegal Employment Act and repeal other verification
             11      programs.
             12      Highlighted Provisions:
             13          This bill:
             14          .    enacts the Utah Illegal Employment Act, including:
             15              .    defining terms;
             16              .    addressing applicability for independent contractors;
             17              .    prohibiting knowingly or intentionally employing an unauthorized alien and
             18      creating H. [ a ] .H related H. [ complaint process with ] .H penalties;
             19              .    providing that an employer is not required to take any action that the employer
             20      believes in good faith would violate federal or state law;
             21              .    requiring employers to participate in e-verify, with exceptions;
             22              .    requiring the attorney general to maintain certain information and to post certain
             23      information on a website; and
             24              .    requiring the attorney general to established the voluntary employer enhanced
             25      compliance program;
             26          .    repeals the Private Employer Verification Act and removes cross references related
             27      to that act;


             28          .    repeals provisions addressing employment and verification under general
             29      government provisions; and
             30          .    makes technical and conforming amendments.
             31      Money Appropriated in this Bill:
             32          None
             33      Other Special Clauses:
             34          None
             35      Utah Code Sections Affected:
             36      AMENDS:
             37          58-55-503, as last amended by Laws of Utah 2011, Chapters 195, 340, and 413
             38          63G-12-210, as enacted by Laws of Utah 2011, Chapter 18
             39          63I-2-213, as enacted by Laws of Utah 2011, Chapter 18
             40      ENACTS:
             41          34A-12-101, Utah Code Annotated 1953
             42          34A-12-102, Utah Code Annotated 1953
             43          34A-12-103, Utah Code Annotated 1953
             44          34A-12-201, Utah Code Annotated 1953
             45          34A-12-202, Utah Code Annotated 1953
             46          34A-12-301, Utah Code Annotated 1953
             47          34A-12-302, Utah Code Annotated 1953
             48      RENUMBERS AND AMENDS:
             49          63G-12-403, (Renumbered from 63G-12-302, as renumbered and amended by Laws of
             50      Utah 2011, Chapter 18)
             51      REPEALS:
             52          13-47-101, as enacted by Laws of Utah 2010, Chapter 403
             53          13-47-102, as enacted by Laws of Utah 2010, Chapter 403
             54          13-47-103, as enacted by Laws of Utah 2010, Chapter 403
             55          13-47-201, as enacted by Laws of Utah 2010, Chapter 403
             56          13-47-202, as enacted by Laws of Utah 2010, Chapter 403
             57          13-47-203, as enacted by Laws of Utah 2010, Chapter 403
             58          13-47-204, as enacted by Laws of Utah 2010, Chapter 403


             59          63G-12-301, as enacted by Laws of Utah 2011, Chapter 18
             60          63G-12-303, as enacted by Laws of Utah 2011, Chapter 18
             61          63G-12-304, as enacted by Laws of Utah 2011, Chapter 18
             62          63G-12-305, as enacted by Laws of Utah 2011, Chapter 18
             63          63G-12-306, as enacted by Laws of Utah 2011, Chapter 18
             64     
             65      Be it enacted by the Legislature of the state of Utah:
             66          Section 1. Section 34A-12-101 is enacted to read:
             67     
CHAPTER 12. UTAH ILLEGAL EMPLOYMENT ACT

             68     
Part 1. General Provisions

             69          34A-12-101. Title.
             70          This chapter is known as the "Utah Illegal Employment Act."
             71          Section 2. Section 34A-12-102 is enacted to read:
             72          34A-12-102. Definitions.
             73          As used in this chapter, unless the context otherwise requires:
             74          (1) "Agency" means an agency, department, board, or commission of this state or a
             75      county, city, or town that issues a license for purposes of operating a business in this state.
             76          (2) "Agriculture" means the science and art of the production of plants and animals
             77      useful to humans including the preparation of plants and animals for human use and disposal
             78      by marketing or otherwise.
             79          (3) "Employ" means hiring an employee after May 7, 2012.
             80          (4) (a) "Employee" means a person who provides services or labor for an employer in
             81      this state for wages or other remuneration.
             82          (b) "Employee" does not include an independent contractor.
             83          (5) (a) "Employer" means an individual or type of entity that transacts business in this
             84      state, that has a license issued by an agency in this state, and that employs one or more
             85      employees in this state.
             86          (b) "Employer" includes a self-employed person.
             87          (c) In the case of an independent contractor, "employer" means the independent
             88      contractor and does not mean the person that uses the contract labor.
             89          (d) "Employer" does not mean the state or a political subdivision of the state.


             90          (6) "E-verify program" means the employment verification pilot program as jointly
             91      administered by the United States Department of Homeland Security and the Social Security
             92      Administration or any of its successor programs.
             93          (7) "Independent contractor" means an individual or entity that carries on an
             94      independent business, that contracts to do a piece of work according to the individual's or
             95      entity's own means and methods and that is subject to control only as to results. Whether an
             96      individual or entity is an independent contractor is determined on a case-by-case basis through
             97      various factors, including whether the individual or entity:
             98          (a) supplies the tools or materials;
             99          (b) makes services available to the general public;
             100          (c) works or may work for a number of clients at the same time;
             101          (d) has an opportunity for profit or loss as a result of labor or service provided;
             102          (e) invests in the facilities for work;
             103          (f) directs the order or sequence in which the work is completed; or
             104          (g) determines the hours when the work is completed.
             105          (8) "Intentionally" has the same meaning prescribed in Section 76-2-103 .
             106          (9) "Knowingly employ an unauthorized alien" means the actions described in 8 U.S.C.
             107      Sec. 1324a. This term shall be interpreted consistently with 8 U.S.C. Sec. 1324a and any
             108      applicable federal regulations.
             109          (10) (a) "License" means an agency permit, certificate, approval, registration, charter,
             110      or similar form of authorization that is required by law and that is issued by any agency for the
             111      purposes of operating a business in this state.
             112          (b) "License" includes:
             113          (i) articles of incorporation under Title 16, Corporations;
             114          (ii) a certificate of partnership, a partnership registration, articles of organization, or a
             115      similar document under Title 48, Partnerships;
             116          (iii) a grant of authority issued under Title 16, Chapter 10a, Part 15, Authority of
             117      Foreign Corporation to Transact Business; and
             118          (iv) a sales and use tax license issued under Section 59-12-106 .
             119          (c) "License" does not include:
             120          (i) a license issued pursuant to Title 19, Environmental Quality Code, or Title 73,


             121      Water and Irrigation, or rules adopted pursuant to those titles; or
             122          (ii) a professional license.
             123          (11) "Social Security Number Verification Service" means the program administered
             124      by the Social Security Administration or any of its successor programs.
             125          (12) "Unauthorized alien" means an alien who does not have the legal right or
             126      authorization under federal law to work in the United States as described in 8 U.S.C. Sec.
             127      1324a(h)(3).
             128          Section 3. Section 34A-12-103 is enacted to read:
             129          34A-12-103. Independent contractors -- Applicability.
             130          For the purposes of this chapter, independent contractor status applies to an individual
             131      who performs services and is not an employee pursuant to Section 3508, Internal Revenue
             132      Code.
             133          Section 4. Section 34A-12-201 is enacted to read:
             134     
Part 2. Employing Unauthorized Aliens Prohibited

             135          34A-12-201. Knowingly or intentionally employing unauthorized aliens --
             136      Prohibition -- False and frivolous complaints -- Violation -- Classification -- License
             137      suspension -- Affirmative defense.
             138          (1) An employer may not knowingly employ an unauthorized alien or intentionally
             139      employ an unauthorized alien. If, in the case when an employer uses a contract, subcontract, or
             140      other independent contractor agreement to obtain the labor of an alien in this state, the
             141      employer knowingly or intentionally contracts with an unauthorized alien or with a person who
             142      employs or contracts with an unauthorized alien to perform the labor, the employer violates this
             143      Subsection (1).
             144           H. [ (2) (a) The attorney general shall prescribe a complaint form for a person to allege a
             145      violation of Subsection (1). The complainant may not be required to list the complainant's
             146      Social Security number on the complaint form or to have the complaint form notarized.
             147          (b) On receipt of a complaint on a prescribed complaint form that an employer
             148      allegedly knowingly employs an unauthorized alien or intentionally employs an unauthorized
             149      alien, the attorney general or county attorney shall investigate whether the employer has
             150      violated Subsection (1). If a complaint is received but is not submitted on a prescribed
             151      complaint form, the attorney general or county attorney may investigate whether the employer


             152      has violated Subsection (1).
             153          (c) The attorney general or county attorney may not investigate an anonymous
             154      complaint.
             155          (d) The attorney general or county attorney may not investigate complaints that are
             156      based solely on race, color, or national origin.
             157          (e) A complaint that is submitted to a county attorney shall be submitted to the county
             158      attorney in the county in which the alleged unauthorized alien is or was employed by the
             159      employer. The county sheriff or any other local law enforcement agency may assist in
             160      investigating a complaint.
             161          (f)
] (2) .H
When investigating H. [ a complaint ] .H , the attorney general or county
             161a      attorney shall verify
             162      the work authorization of all alleged unauthorized aliens with the federal government pursuant
             163      to 8 U.S.C. Sec. 1373(c). A state, county, or local official may not attempt to independently
             164      make a final determination on whether an alien is authorized to work in the United States. An
             165      alien's immigration status or work authorization status shall be verified with the federal
             166      government pursuant to 8 U.S.C. Sec. 1373(c).
             167           H. [ (g) A person who knowingly or recklessly files a false and frivolous complaint under
             168      this Subsection (2) is guilty of a class C misdemeanor.
] .H

             169          (3) If, after an investigation, the attorney general or county attorney determines that
             169a      H. [ the
             170      complaint is not false and frivolous
] a violation of Subsection (1) has occurred .H
:
             171          (a) the attorney general or county attorney shall notify the United States Immigration
             172      and Customs Enforcement of the unauthorized alien;
             173          (b) the attorney general or county attorney shall notify the local law enforcement
             174      agency of the unauthorized alien; and
             175          (c) the attorney general shall notify the appropriate county attorney to bring an action
             176      pursuant to Subsection (4) if H. [ the complaint was originally filed with ] the violation was
             176a      originally investigated by .H the attorney general.
             177          (4) An action for a violation of Subsection (1) shall be brought against the employer by
             178      the county attorney in the county where the unauthorized alien employee is or was employed by
             179      the employer. The county attorney may not bring an action against any employer for any
             180      violation of Subsection (1) that occurs before May 8, 2012.
             181          (5) For any action in district court under this section, the district court shall expedite
             182      the action.


             183          (6) On a finding of a violation of Subsection (1):
             184          (a) For a first violation, as described in Subsection (6)(d):
             185          (i) The court shall order the employer to be subject to a three-year probationary period
             186      for the business location where the unauthorized alien performed work. During the
             187      probationary period the employer shall file quarterly reports in the form provided in Section
             188      35A-7-104 with the county attorney of each new employee who is hired by the employer at the
             189      business location where the unauthorized alien performed work.
             190          (ii) The court shall order the employer to terminate the employment of all employees
             191      the attorney general or county attorney determine in accordance with Subsection (2)(f) to be
             192      unauthorized aliens.
             193          (iii) (A) The court shall order the employer to file a signed sworn affidavit with the
             194      county attorney within three business days after the order is issued. The affidavit shall state
             195      that the employer has terminated the employment of the unauthorized aliens described in
             196      Subsection (6)(a)(ii) and that the employer will not intentionally or knowingly employ an
             197      unauthorized alien in this state.
             198          (B) The court shall order the appropriate agencies to suspend all licenses subject to this
             199      Subsection (6)(a) that are held by the employer if the employer fails to file a signed sworn
             200      affidavit with the county attorney within three business days after the order is issued. All
             201      licenses that are suspended under this Subsection (6)(a) shall remain suspended until the
             202      employer files a signed sworn affidavit with the county attorney.
             203          (C) Notwithstanding any other law, on filing of the affidavit the suspended licenses
             204      shall be reinstated immediately by the appropriate agencies.
             205          (iv) The court shall order the employer to pay to the agency issuing the license that is
             206      on probation any fee or other amount imposed by the agency to remove a license issued by the
             207      agency from probation.
             208          (v) (A) The court shall order the employer to participate in training concerning e-verify
             209      and the hiring of aliens that is administered by the attorney general.
             210          (B) The employer shall pay a fee to participate in the training required by this
             211      Subsection (6)(a)(v). The attorney general shall set the fee amount in accordance with Section
             212      63J-1-504 . The fee shall be deposited into the Immigration Act Restricted Account created in
             213      Section 63G-12-103 .


             214          (b) For a second violation, as described in Subsection (6)(d), the court shall order the
             215      appropriate agencies to suspend for 14 days all licenses that are held by the employer specific
             216      to the business location where the unauthorized alien performed work. If the employer does
             217      not hold a license specific to the business location where the unauthorized alien performed
             218      work, but a license is necessary to operate the employer's business in general in Utah, the court
             219      shall order the appropriate agencies to suspend for 14 days all licenses that are held by the
             220      employer at the employer's primary place of business within Utah. On receipt of the order and
             221      notwithstanding any other law, the appropriate agencies shall immediately suspend the
             222      licenses.
             223          (c) For a third H. or subsequent .H violation, as described in Subsection (6)(d), the
             223a      court shall order the
             224      appropriate agencies to suspend for 120 days all licenses that are held by the employer specific
             225      to the business location where the unauthorized alien performed work. If the employer does
             226      not hold a license specific to the business location where the unauthorized alien performed
             227      work, but a license is necessary to operate the employer's business in general in Utah, the court
             228      shall order the appropriate agencies to suspend for 120 days all licenses that are held by the
             229      employer at the employer's primary place of business within Utah. On receipt of the order and
             230      notwithstanding any other law, the appropriate agencies shall immediately suspend the
             231      licenses.
             232          (d) A violation shall be considered:
             233          (i) a first violation by an employer at a business location if the violation does not occur
             234      during a probationary period ordered by the court under Subsection (6)(a) to that employer's
             235      business location;
             236          (ii) a second violation by an employer at a business location if the violation occurs
             237      during a probationary period ordered by the court under Subsection (6)(a) for that employer's
             238      business location; or
             239          (iii) a third H. or subsequent .H violation by an employer at a business location if the
             239a      violation occurs:
             240          (A) during the probationary period ordered by the court under Subsection (6)(a) for that
             241      employer's business location; and
             242          (B) after a second H. or subsequent .H violation that occurs during the same
             242a      probationary period.
             243          (e) An action taken against an employer under this Subsection (6) applies to an entity
             244      that is materially the same as the employer. To determine whether an entity is materially the


             245      same as an employer one or more of the following may be considered:
             246          (i) the entity has one or more of the same executive officers as the prior entity;
             247          (ii) the entity conducts operations in the same location as the prior entity;
             248          (iii) the entity employs two or more agents from the prior entity;
             249          (iv) the entity solicits or serves two or more customers of the prior entity;
             250          (v) the entity has a name similar to the prior entity; or
             251          (vi) another factor showing a relationship between the entity and the prior entity.
             252          (7) The attorney general shall:
             253          (a) maintain a copy of a court order that is received pursuant to Subsection (6);
             254          (b) maintain a database of the employers and business locations that have a first
             255      violation or second violation of Subsection (1); and
             256          (c) make the court orders available on the attorney general's website for a period of
             257      three years from the day on which the court order is issued.
             258          (8) On determining whether an employee is an unauthorized alien, the court shall
             259      consider only the federal government's determination pursuant to 8 U.S.C. Sec. 1373(c). The
             260      federal government's determination creates a rebuttable presumption of the employee's lawful
             261      status. The court may take judicial notice of the federal government's determination and may
             262      request the federal government to provide automated or testimonial verification pursuant to 8
             263      U.S.C. Sec. 1373(c).
             264          (9) For the purposes of this section, proof of verifying the employment authorization of
             265      an employee through the e-verify program creates a rebuttable presumption that an employer
             266      did not knowingly employ an unauthorized alien.
             267          (10) For the purposes of this section, an employer that establishes that the employer has
             268      complied in good faith with the requirements of 8 U.S.C. Sec. 1324a(b) establishes an
             269      affirmative defense that the employer did not knowingly employ an unauthorized alien or
             270      intentionally employs an unauthorized alien. An employer is considered to have complied with
             271      the requirements of 8 U.S.C. Sec. 1324a(b), notwithstanding an isolated, sporadic, or
             272      accidental technical or procedural failure to meet the requirements, if there is a good faith
             273      attempt to comply with the requirements.
             274          (11) (a) It is an affirmative defense to a violation of Subsection (1) that the employer
             275      was entrapped. To claim entrapment, the employer must admit by the employer's testimony or


             276      other evidence the substantial elements of the violation. An employer who asserts an
             277      entrapment defense has the burden of proving the following by a preponderance of the
             278      evidence:
             279          (i) the idea of committing the violation started with a law enforcement officer or an
             280      agent of a law enforcement officer rather than with the employer;
             281          (ii) the law enforcement officer or agent urged and induced the employer to commit the
             282      violation; and
             283          (iii) the employer was not predisposed to commit the violation before the law
             284      enforcement officer or agent urged and induced the employer to commit the violation.
             285          (b) An employer does not establish entrapment if the employer was predisposed to
             286      violate Subsection (1) and a law enforcement officer or agent of the law enforcement officer
             287      merely provided the employer with an opportunity to commit the violation. It is not
             288      entrapment for a law enforcement officer or agent merely to use a ruse or to conceal the law
             289      enforcement officer's or agent's identity. The conduct of a law enforcement officer or agent
             290      may be considered in determining if an employer has proven entrapment.
             290a          H. (12) (a) An employer engaged in agriculture is exempt from any penalty imposed
             290b      under this section for purposes of the employer's employees who are hired to perform work
             290c      related to agriculture.
             290d          (b) An employer who employs an unauthorized alien who under a program
             290e      implemented by the state is authorized to work in the state is exempt from any penalty
             290f      imposed under this section related to hiring that unauthorized alien. .H
             291          Section 5. Section 34A-12-202 is enacted to read:
             292          34A-12-202. Employer actions -- Federal or state law compliance.
             293          This chapter may not be construed to require an employer to take any action that the
             294      employer believes in good faith would violate federal or state law.
             295          Section 6. Section 34A-12-301 is enacted to read:
             296     
Part 3. Verification of Employment Eligibility

             297          34A-12-301. Verification of employment eligibility -- E-verify program.
             298          (1) After September 1, 2012, and except as provided in Subsection (2), every employer,
             299      after hiring an employee, shall verify the employment eligibility of the employee through the
             300      e-verify program and shall keep a record of the verification for the duration of the employee's
             301      employment or at least three years, whichever is longer.
             302          (2) H. (a) .H An employer engaged in agriculture is exempt from Subsection (1) for
             302a      purposes of


             303      the employer's employees who are hired to perform work related to agriculture.
             303a          H. (b) An employer who employs an unauthorized alien who under a program
             303b      implemented by the state is authorized to work in this state is exempt from Subsection (1) for
             303c      purposes of that unauthorized alien. .H
             304          Section 7. Section 34A-12-302 is enacted to read:
             305          34A-12-302. Voluntary employer enhanced compliance program -- Program
             306      termination.


             307          (1) The attorney general shall establish the voluntary employer enhanced compliance
             308      program. The program is voluntary and an employer is not required to enroll in the program.
             309          (2) An employer that is on probation under Section 34A-12-201 may not enroll in the
             310      voluntary employer enhanced compliance program. A court may not consider nonenrollment
             311      in the voluntary employer enhanced compliance program as a factor when determining whether
             312      to place on probation or suspend a license under Section 34A-12-201 .
             313          (3) To enroll in the voluntary employer enhanced compliance program, an employer
             314      shall submit a signed sworn affidavit to the attorney general. The affidavit shall state that the
             315      employer agrees to perform all of the following actions in good faith:
             316          (a) After hiring an employee, the employer shall verify the employment eligibility of
             317      the employee through the e-verify program.
             318          (b) (i) To ensure the accuracy of reporting wages to the Social Security Administration,
             319      the employer shall verify the accuracy of Social Security numbers through the Social Security
             320      Number Verification Service for any employee who is not verified through the e-verify
             321      program. Within 30 days after enrolling in the voluntary employer enhanced compliance
             322      program, the employer shall submit the necessary information to the Social Security Number
             323      Verification Service, including the full name, the Social Security number, the date of birth, and
             324      the gender of each employee.
             325          (ii) On receipt of a failed verification result, the employer shall notify the employee of
             326      the date on which the employer received the failed result and instruct the employee to resolve
             327      the discrepancy with the Social Security Administration within 90 days after that date. The
             328      employer and employee shall resolve any failed result within 90 days after the date on which
             329      the employer received the failed result. If the failed result is not resolved within the 90-day
             330      period but the employer and employee are continuing to actively and consistently work toward
             331      resolving the failed result with the Social Security Administration, the 90-day period does not
             332      apply as long as the employer and employee have documented proof of these ongoing efforts to
             333      resolve the failed result in good faith and have provided the documented proof to the attorney
             334      general. The employer shall verify the accuracy of the Social Security numbers and resolve any
             335      failed verification results in a consistent manner for all employees.
             336          (c) In response to a written request by the attorney general or county attorney stating
             337      the name of an employee H. [ for whom a complaint has been received under
             337a      Section 34A-12-201 ] .H ,


             338      the employer shall provide the attorney general or county attorney the documents indicating
             339      that the employee was verified through the e-verify program or that the accuracy of the
             340      employee's wage report was verified through the Social Security Number Verification Service
             341      under this section.
             342          (4) An employer that is enrolled in the voluntary employer enhanced compliance
             343      program is not in violation of Subsection 34A-12-201 (1) regarding an employee H. [ named in a
             344      complaint under Section 34A-12-201
] .H
if the employer has completed both of the following:
             345          (a) in good faith verified the employment eligibility of the employee H. [ named in the
             346      complaint
] .H
through the e-verify program or in good faith verified the accuracy of the Social
             347      Security number of the employee H. [ named in the complaint ] .H through the Social Security
             347a      Number
             348      Verification System as required by Subsections (3)(a) and (b); and
             349          (b) provided the attorney general or county attorney with the documents, as required by
             350      Subsection (3)(c), indicating that the employer verified the employee H. [ named in the
             350a      complaint ] .H .
             351          (5) The attorney general shall maintain a list of employers enrolled in the voluntary
             352      employer enhanced compliance program and make the list available on the attorney general's
             353      website.
             354          (6) The attorney general shall develop a form of recognition that an employer may
             355      display to the general public for enrolling in the voluntary employer enhanced compliance
             356      program.
             357          (7) If an employer does not fully comply with this section, the attorney general shall
             358      terminate the employer's enrollment in the voluntary employer enhanced compliance program.
             359      At any time, an employer may voluntarily withdraw from the voluntary employer enhanced
             360      compliance program by notifying the attorney general. Beginning on the date of termination or
             361      withdrawal, Subsection (4) no longer applies to the employer and the employer shall
             362      immediately remove any form of recognition from public display that is authorized under this
             363      section.
             364          (8) The program established by this section ends on July 1, 2021.
             365          Section 8. Section 58-55-503 is amended to read:
             366           58-55-503. Penalty for unlawful conduct -- Citations.
             367          (1) (a) (i) A person who violates Subsection 58-55-308 (2), Subsection 58-55-501 (1),
             368      (2), (3), (4), (5), (6), (7), (9), (10), (12), (14), (15), (22), (23), (24), (25), or (26), or Subsection


             369      58-55-504 (2), or who fails to comply with a citation issued under this section after it is final, is
             370      guilty of a class A misdemeanor.
             371          (ii) As used in this section in reference to Subsection 58-55-504 (2), "person" means an
             372      individual and does not include a sole proprietorship, joint venture, corporation, limited
             373      liability company, association, or organization of any type.
             374          (b) A person who violates the provisions of Subsection 58-55-501 (8) may not be
             375      awarded and may not accept a contract for the performance of the work.
             376          (2) A person who violates the provisions of Subsection 58-55-501 (13) is guilty of an
             377      infraction unless the violator did so with the intent to deprive the person to whom money is to
             378      be paid of the money received, in which case the violator is guilty of theft, as classified in
             379      Section 76-6-412 .
             380          (3) Grounds for immediate suspension of the licensee's license by the division and the
             381      commission include the issuance of a citation for violation of Subsection 58-55-308 (2), Section
             382      58-55-501 , or Subsection 58-55-504 (2), or the failure by a licensee to make application to,
             383      report to, or notify the division with respect to any matter for which application, notification, or
             384      reporting is required under this chapter or rules adopted under this chapter, including applying
             385      to the division for a new license to engage in a new specialty classification or to do business
             386      under a new form of organization or business structure, filing with the division current
             387      financial statements, notifying the division concerning loss of insurance coverage, or change in
             388      qualifier.
             389          (4) (a) If upon inspection or investigation, the division concludes that a person has
             390      violated the provisions of Subsection 58-55-308 (2) or Subsections 58-55-501 (1), (2), (3), (9),
             391      (10), (12), (14), (19), (21), (22), (23), (24), (25), or (26), or Subsection 58-55-504 (2), or any
             392      rule or order issued with respect to these subsections, and that disciplinary action is
             393      appropriate, the director or the director's designee from within the division shall promptly issue
             394      a citation to the person according to this chapter and any pertinent rules, attempt to negotiate a
             395      stipulated settlement, or notify the person to appear before an adjudicative proceeding
             396      conducted under Title 63G, Chapter 4, Administrative Procedures Act.
             397          (i) A person who is in violation of the provisions of Subsection 58-55-308 (2),
             398      Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19), (21), (22), (23), (24), (25), or (26),
             399      or Subsection 58-55-504 (2), as evidenced by an uncontested citation, a stipulated settlement, or


             400      by a finding of violation in an adjudicative proceeding, may be assessed a fine pursuant to this
             401      Subsection (4) and may, in addition to or in lieu of, be ordered to cease and desist from
             402      violating Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9), (10), (12), (14), (19),
             403      (21), (24), (25), or (26), or Subsection 58-55-504 (2).
             404          (ii) Except for a cease and desist order, the licensure sanctions cited in Section
             405      58-55-401 may not be assessed through a citation.
             406          (b) (i) A citation shall be in writing and describe with particularity the nature of the
             407      violation, including a reference to the provision of the chapter, rule, or order alleged to have
             408      been violated.
             409          (ii) A citation shall clearly state that the recipient must notify the division in writing
             410      within 20 calendar days of service of the citation if the recipient wishes to contest the citation
             411      at a hearing conducted under Title 63G, Chapter 4, Administrative Procedures Act.
             412          (iii) A citation shall clearly explain the consequences of failure to timely contest the
             413      citation or to make payment of any fines assessed by the citation within the time specified in
             414      the citation.
             415          (c) A citation issued under this section, or a copy of a citation, may be served upon a
             416      person upon whom a summons may be served:
             417          (i) in accordance with the Utah Rules of Civil Procedure;
             418          (ii) personally or upon the person's agent by a division investigator or by a person
             419      specially designated by the director; or
             420          (iii) by mail.
             421          (d) (i) If within 20 calendar days from the service of a citation, the person to whom the
             422      citation was issued fails to request a hearing to contest the citation, the citation becomes the
             423      final order of the division and is not subject to further agency review.
             424          (ii) The period to contest a citation may be extended by the division for cause.
             425          (e) The division may refuse to issue or renew, suspend, revoke, or place on probation
             426      the license of a licensee who fails to comply with a citation after it becomes final.
             427          (f) The failure of an applicant for licensure to comply with a citation after it becomes
             428      final is a ground for denial of license.
             429          (g) A citation may not be issued under this section after the expiration of six months
             430      following the occurrence of a violation.


             431          (h) The director or the director's designee shall assess a fine in accordance with the
             432      following:
             433          (i) for a first offense handled pursuant to Subsection (4)(a), a fine of up to $1,000;
             434          (ii) for a second offense handled pursuant to Subsection (4)(a), a fine of up to $2,000;
             435      and
             436          (iii) for any subsequent offense handled pursuant to Subsection (4)(a), a fine of up to
             437      $2,000 for each day of continued offense.
             438          (i) (i) For purposes of issuing a final order under this section and assessing a fine under
             439      Subsection (4)(h), an offense constitutes a second or subsequent offense if:
             440          (A) the division previously issued a final order determining that a person committed a
             441      first or second offense in violation of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2),
             442      (3), (9), (10), (12), (14), (19), (24), (25), or (26), or Subsection 58-55-504 (2); or
             443          (B) (I) the division initiated an action for a first or second offense;
             444          (II) a final order has not been issued by the division in the action initiated under
             445      Subsection (4)(i)(i)(B)(I);
             446          (III) the division determines during an investigation that occurred after the initiation of
             447      the action under Subsection (4)(i)(i)(B)(I) that the person committed a second or subsequent
             448      violation of the provisions of Subsection 58-55-308 (2), Subsection 58-55-501 (1), (2), (3), (9),
             449      (10), (12), (14), (19), (24), (25), or (26), or Subsection 58-55-504 (2); and
             450          (IV) after determining that the person committed a second or subsequent offense under
             451      Subsection (4)(i)(i)(B)(III), the division issues a final order on the action initiated under
             452      Subsection (4)(i)(i)(B)(I).
             453          (ii) In issuing a final order for a second or subsequent offense under Subsection
             454      (4)(i)(i), the division shall comply with the requirements of this section.
             455          (j) In addition to any other licensure sanction or fine imposed under this section, the
             456      division shall revoke the license of a licensee that violates Subsection 58-55-501 (24) or (25)
             457      two or more times within a 12-month period, unless, with respect to a violation of Subsection
             458      58-55-501 (24), the licensee can demonstrate that the licensee successfully verified the federal
             459      legal working status of the individual who was the subject of the violation using a status
             460      verification system, as defined in Section [ 13-47-102 ] 63G-12-102 .
             461          (k) For purposes of this Subsection (4), a violation of Subsection 58-55-501 (24) or (25)


             462      for each individual is considered a separate violation.
             463          (5) (a) A penalty imposed by the director under Subsection (4)(h) shall be deposited
             464      into the Commerce Service Account created by Section 13-1-2 .
             465          (b) A penalty that is not paid may be collected by the director by either referring the
             466      matter to a collection agency or bringing an action in the district court of the county in which
             467      the person against whom the penalty is imposed resides or in the county where the office of the
             468      director is located.
             469          (c) A county attorney or the attorney general of the state is to provide legal assistance
             470      and advice to the director in any action to collect the penalty.
             471          (d) In an action brought to enforce the provisions of this section, reasonable attorney
             472      fees and costs shall be awarded.
             473          Section 9. Section 63G-12-210 is amended to read:
             474           63G-12-210. Verification of valid permit -- Protected status of information.
             475          (1) (a) The department shall develop a verification procedure by rule made in
             476      accordance with Chapter 3, Utah Administrative Rulemaking Act, for a person who hires a
             477      permit holder to verify with the department that the permit is valid [as required by Section
             478      63G-12-301 ].
             479          (b) The verification procedure adopted under this Subsection (1) shall:
             480          (i) be substantially similar to the employer requirements to verify federal employment
             481      status under the e-verify program; and
             482          (ii) provide that an undocumented individual may appeal a determination that a permit
             483      is invalid in accordance with Chapter 4, Administrative Procedures Act.
             484          (2) Subject to Section 63G-12-212 , a record under this part is a protected record under
             485      Chapter 2, Government Records Access and Management Act, except that a record may not be
             486      shared under Section 63G-2-206 , unless:
             487          (a) requested by the Office of Legislative Auditor General in accordance with Section
             488      36-12-15 ;
             489          (b) disclosed to the State Tax Commission as provided in Subsection
             490      63G-12-203 (2)(e)(vi); or
             491          (c) disclosed to a federal government entity in accordance with this part or a waiver,
             492      exemption, or authorization described in Section 63G-12-202 .


             493          (3) The state is not liable to any person for:
             494          (a) the design, implementation, or operation of a verification procedure under this part;
             495          (b) the collection and disclosure of information as part of a verification procedure
             496      under this part; or
             497          (c) the determination that a permit is invalid.
             498          Section 10. Section 63G-12-403 , which is renumbered from Section 63G-12-302 is
             499      renumbered and amended to read:
             500           [63G-12-302].     63G-12-403. Status verification system -- Registration and
             501      use -- Performance of services -- Unlawful practice.
             502          (1) As used in this section:
             503          (a) "Contract" means an agreement for the procurement of goods or services that is
             504      awarded through a request for proposals process with a public employer and includes a sole
             505      source contract.
             506          (b) "Contractor" means a subcontractor, contract employee, staffing agency, or any
             507      contractor regardless of its tier.
             508          (2) (a) Subject to Subsection (5), a public employer shall register with and use a Status
             509      Verification System to verify the federal employment authorization status of a new employee.
             510          (b) This section shall be enforced without regard to race, religion, gender, ethnicity, or
             511      national origin.
             512          (3) (a) Subject to Subsection (5), beginning July 1, 2009:
             513          (i) a public employer may not enter into a contract for the physical performance of
             514      services within the state with a contractor unless the contractor registers and participates in the
             515      Status Verification System to verify the work eligibility status of the contractor's new
             516      employees that are employed in the state; and
             517          (ii) a contractor shall register and participate in the Status Verification System in order
             518      to enter into a contract with a public employer.
             519          (b) (i) For purposes of compliance with Subsection (3)(a), a contractor is individually
             520      responsible for verifying the employment status of only new employees who work under the
             521      contractor's supervision or direction and not those who work for another contractor or
             522      subcontractor, except as otherwise provided in Subsection (3)(b)(ii).
             523          (ii) Each contractor or subcontractor who works under or for another contractor shall


             524      certify to the main contractor by affidavit that the contractor or subcontractor has verified
             525      through the Status Verification System the employment status of each new employee of the
             526      respective contractor or subcontractor.
             527          (c) Subsection (3)(a) does not apply to a contract:
             528          (i) entered into by the entities referred to in Subsection (3)(a) prior to July 1, 2009,
             529      even though the contract may involve the physical performance of services within the state on
             530      or after July 1, 2009; or
             531          (ii) that involves underwriting, remarketing, broker-dealer activities, securities
             532      placement, investment advisory, financial advisory, or other financial or investment banking
             533      services.
             534          (4) (a) It is unlawful for an employing entity in the state to discharge an employee
             535      working in Utah who is a United States citizen or permanent resident alien and replace the
             536      employee with, or have the employee's duties assumed by, an employee who:
             537          (i) the employing entity knows, or reasonably should have known, is an unauthorized
             538      alien hired on or after July 1, 2009; and
             539          (ii) is working in the state in a job category:
             540          (A) that requires equal skill, effort, and responsibility; and
             541          (B) which is performed under similar working conditions, as defined in 29 U.S.C.[,]
             542      Sec. 206 (d)(1), as the job category held by the discharged employee.
             543          (b) An employing entity, which on the date of a discharge in question referred to in
             544      Subsection (4)(a) is enrolled in and using the Status Verification System to verify the
             545      employment eligibility of its employees in Utah who are hired on or after July 1, 2009, is
             546      exempt from liability, investigation, or lawsuit arising from an action under this section.
             547          (c) A cause of action for a violation of this Subsection (4) arises exclusively from the
             548      provisions of this Subsection (4).
             549          (5) On and after the program start date:
             550          (a) a public employer, after hiring an employee, shall verify the employment eligibility
             551      of the new employee:
             552          (i) through the status verification system if the individual does not hold a permit; and
             553          (ii) through the u-verify program if the individual holds a permit; and
             554          (b) a contractor is considered to be in compliance with this section if, after hiring an


             555      employee, the contractor verifies the employment eligibility of the new employee:
             556          (i) through the status verification system if the individual does not hold a permit; and
             557          (ii) through the u-verify program if the individual holds a permit.
             558          Section 11. Section 63I-2-213 is amended to read:
             559           63I-2-213. Repeal dates -- Title 13.
             560          [Title 13, Chapter 47, Private Employer Verification Act, is repealed on the program
             561      start date, as defined in Section 63G-12-102 .]
             562          Section 12. Repealer.
             563          This bill repeals:
             564          Section 13-47-101, Title.
             565          Section 13-47-102, Definitions.
             566          Section 13-47-103, Scope of chapter.
             567          Section 13-47-201, Verification required for new hires.
             568          Section 13-47-202, Liability protections.
             569          Section 13-47-203, Voluntary registration by private employer certifying
             570      participation in verification.
             571          Section 13-47-204, Department to publish list of registered private employers.
             572          Section 63G-12-301, Employing unauthorized alien -- Verification of employment
             573      eligibility.
             574          Section 63G-12-303, Liability protections.
             575          Section 63G-12-304, Voluntary registration by private employer certifying
             576      participation in verification.
             577          Section 63G-12-305, Administrative actions -- Defenses.
             578          Section 63G-12-306, Penalties.




Legislative Review Note
    as of 2-14-12 12:35 PM


Office of Legislative Research and General Counsel


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