Senate File 516 S-3114 Amend Senate File 516 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < Section 1. NEW SECTION . 95.1 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Agency” means an agency, department, board, or 7 commission of this state or a political subdivision that issues 8 a license for purposes of operating a business in this state. 9 2. “Department” means the department of workforce 10 development. 11 3. “Economic development incentive” means a grant, loan, 12 or performance-based incentive awarded by a government entity 13 of this state. “Economic development incentive” includes a 14 tax credit or tax incentive program if the tax credit or tax 15 incentive program requires an application to a government 16 entity by an employer on or after July 1, 2019. 17 4. “Employ” means hiring or continuing to employ an 18 individual to perform services. 19 5. “Employee” means an individual who is paid wages by an 20 employer for service in employment in this state. “Employee” 21 does not include an independent contractor. 22 6. “Employer” means an employer, as defined in section 23 96.19, that has a license issued by an agency in this state. 24 7. “Employment” means the same as defined in section 96.19. 25 8. “E-verify program” means the employment verification 26 program as jointly administered by the United States department 27 of homeland security and the United States social security 28 administration. 29 9. “Government entity” means this state or a political 30 subdivision of this state that receives and uses tax revenues. 31 10. “Independent contractor” means the same as described in 32 rules adopted by the department for purposes of administration 33 of chapter 96. 34 11. “Knowingly employ an unauthorized alien” means the 35 -1- SF516.1453 (1) 88 je/rn 1/ 8 #1.

actions described in 8 U.S.C. §1324a, and shall be interpreted 1 consistently with 8 U.S.C. §1324a and any applicable federal 2 regulations. 3 12. “License” means a permit, certificate, approval, 4 registration, charter, or similar form of authorization, other 5 than a professional license, that is required by law and that 6 is issued by an agency, allowing the licensee to do business 7 in this state. 8 13. “Unauthorized alien” means an alien who does not have 9 the legal right or authorization under federal law to work in 10 the United States as described in 8 U.S.C. §1324a(h)(3). 11 14. “Wages” means the same as defined in section 96.19. 12 Sec. 2. NEW SECTION . 95.2 Knowingly employing unauthorized 13 aliens. 14 1. Knowingly employing unauthorized aliens prohibited. An 15 employer shall not knowingly employ an unauthorized alien. If 16 an employer uses a contract, subcontract, or other independent 17 contractor, the employer shall not contract with a person 18 the employer knows to be an unauthorized alien or with a 19 contractor, subcontractor, or independent contractor who the 20 employer knows is employing an unauthorized alien. 21 2. Complaints —— department action. A county attorney, 22 local law enforcement official, or member of the public 23 may file a complaint of a violation of subsection 1 with 24 the department. If the department finds, based on evidence 25 included with the complaint or on evidence gathered by the 26 department, that an employer has violated subsection 1, the 27 department shall provide the employer with written notice 28 of the department’s finding and the penalties ordered to be 29 imposed pursuant to this chapter. Upon service of such notice, 30 the department’s order shall be treated as a contested case 31 under chapter 17A. 32 3. Department order —— first violation. On a finding of a 33 first violation as described in subsection 6, the department 34 shall order all of the following: 35 -2- SF516.1453 (1) 88 je/rn 2/ 8

a. The employer shall terminate the employment of all 1 unauthorized aliens. The employer shall be required to file 2 a signed sworn affidavit with the department within three 3 business days after the order is issued. The affidavit shall 4 state that the employer has terminated the employment of all 5 unauthorized aliens in this state and that the employer will 6 not knowingly employ an unauthorized alien in this state. 7 b. (1) The employer shall be subject to a three-year 8 probationary period. 9 (2) During the probationary period, the employer shall file 10 quarterly reports on the form prescribed in section 252G.3 11 with the department for each new employee who is hired by the 12 employer. 13 (3) The employer shall pay the department an annual 14 workforce licensing fee in the amount of five thousand dollars 15 for the probationary period. 16 c. The employer shall repay all moneys received as an 17 economic development incentive during the two years prior 18 to the violation to the government entity that awarded the 19 economic development incentive within thirty days. 20 4. Department order —— second violation. On a finding of a 21 second violation as described in subsection 6, the department 22 shall order all of the following: 23 a. The employer shall terminate the employment of all 24 unauthorized aliens. The employer shall be required to file 25 a signed sworn affidavit with the department within three 26 business days after the order is issued. The affidavit shall 27 state that the employer has terminated the employment of all 28 unauthorized aliens in this state and that the employer will 29 not knowingly employ an unauthorized alien in this state. 30 b. (1) The employer shall be subject to an additional 31 six-year probationary period. 32 (2) During the probationary period, the employer shall file 33 quarterly reports on the form prescribed in section 252G.3 34 with the department for each new employee who is hired by the 35 -3- SF516.1453 (1) 88 je/rn 3/ 8

employer. 1 (3) The employer shall pay the department an annual 2 workforce licensing fee in the amount of five thousand dollars 3 for the probationary period. 4 c. The employer shall repay all moneys received as an 5 economic development incentive during the two years prior 6 to the violation to the government entity that awarded the 7 economic development incentive within thirty days. 8 5. Department order —— third violation. On a finding of a 9 third violation as described in subsection 6, the department 10 shall order all of the following: 11 a. The appropriate agencies shall permanently revoke all 12 licenses that are held by the employer. On receipt of the 13 order, the appropriate agencies shall revoke the licenses 14 according to the department’s order within three business days. 15 b. The employer shall repay all moneys received as an 16 economic development incentive during the two years prior 17 to the violation to the government entity that awarded the 18 economic development incentive within thirty days. 19 6. Violations defined. 20 a. A violation shall be considered a first violation by an 21 employer if the violation did not occur during a probationary 22 period ordered by the department under subsection 3, paragraph 23 “b” , or subsection 4, paragraph “b” . 24 b. A violation shall be considered a second violation by an 25 employer if the violation occurred during a probationary period 26 ordered by the court under subsection 3, paragraph “b” . 27 c. A violation shall be considered a third violation by an 28 employer if the violation occurred during a probationary period 29 ordered by the court under subsection 4, paragraph “b” . 30 7. Department report to immigration and customs 31 enforcement. Upon exhaustion of an employer’s right of 32 administrative and judicial appeal of a final order by the 33 department pursuant to this chapter, the department shall 34 report the name and contact information of the employer and the 35 -4- SF516.1453 (1) 88 je/rn 4/ 8

department’s findings to United States immigration and customs 1 enforcement. 2 8. Federal determination creates rebuttable presumption. In 3 determining whether an employee is an unauthorized alien, 4 the department shall consider the federal government’s 5 determination of the immigration status of the employee 6 pursuant to 8 U.S.C. §1373(c). The department may take 7 notice of the federal government’s determination. The federal 8 government’s determination that the employee is an unauthorized 9 alien creates a rebuttable presumption of the employee’s 10 unauthorized status. The employer may present evidence that 11 the employee is not an unauthorized alien. 12 9. Good-faith compliance. For the purposes of this section, 13 an employer that establishes that it has complied in good 14 faith with the requirements of 8 U.S.C. §1324a(b) establishes 15 a conclusive affirmative defense that the employer did not 16 knowingly employ an unauthorized alien. An employer is 17 considered to have complied with the requirements of 8 U.S.C. 18 §1324a(b), notwithstanding an isolated, sporadic, or accidental 19 technical or procedural failure to meet the requirements, if 20 there is a good-faith attempt to comply with the requirements. 21 For purposes of this subsection, “good-faith attempt to comply” 22 means an employer to which all of the following apply with 23 respect to an employee hired or rehired by the employer: 24 a. The employer made a bona fide attempt to meet the 25 requirements for completion of the form I-9 for the employee 26 found in 8 C.F.R. §274a.2(a)(3), as amended through January 1, 27 2019. 28 b. The employer was a participating employer in the e-verify 29 program at the time the employee was hired or rehired. 30 c. The employer can demonstrate that the employer attempted 31 to verify the employment eligibility of the employee through 32 the e-verify program. 33 10. Entrapment as affirmative defense. 34 a. It is an affirmative defense to a violation of subsection 35 -5- SF516.1453 (1) 88 je/rn 5/ 8

1 that the employer was entrapped. To claim entrapment, the 1 employer must admit by the employer’s testimony or other 2 evidence the substantial elements of the violation. An 3 employer who asserts an entrapment defense has the burden 4 of proving all of the following by a preponderance of the 5 evidence: 6 (1) The idea of committing the violation started with law 7 enforcement officers or their agents rather than with the 8 employer. 9 (2) The law enforcement officers or their agents urged and 10 induced the employer to commit the violation. 11 b. An employer does not establish entrapment if the employer 12 was predisposed to violate subsection 1 and the law enforcement 13 officers or their agents merely provided the employer with 14 an opportunity to commit the violation. The conduct of law 15 enforcement officers and their agents may be considered in 16 determining if an employer has proven entrapment. 17 Sec. 3. NEW SECTION . 95.3 E-verify program —— employer 18 participation —— economic development incentives from government 19 entities —— appropriation. 20 1. An employer who employs four or more employees in the 21 state shall, after hiring or rehiring an employee, verify the 22 employment eligibility of the employee through the e-verify 23 program, certify to the department that the employer has done 24 so, and keep a record of the verification for the duration of 25 the employee’s employment or at least three years, whichever 26 is longer. The certification shall be considered a record 27 under section 96.11, subsection 6, and rules adopted pursuant 28 thereto, and shall be submitted to the department within the 29 time period required by rule for an employer to submit the 30 employer’s contribution and payroll report. 31 2. For economic development incentives applied for on 32 or after July 1, 2019, in addition to any other requirement 33 for an employer to receive an economic development incentive 34 from a government entity, an employer shall register with and 35 -6- SF516.1453 (1) 88 je/rn 6/ 8

participate in the e-verify program. Before receiving the 1 economic development incentive, the employer shall provide 2 proof to the government entity that the employer is registered 3 with and is participating in the e-verify program. If the 4 government entity determines that the employer is not complying 5 with this subsection, the government entity shall notify 6 the employer by certified mail of the government entity’s 7 determination of noncompliance and the employer’s right 8 to appeal the determination. On a final determination of 9 noncompliance, the employer shall repay all moneys received 10 as an economic development incentive to the government entity 11 within thirty days of the final determination. 12 3. If an employer who employs four or more employees in 13 the state verifies the employment eligibility of an employee 14 through the e-verify program, and the program indicates that 15 the employee is not eligible for employment, the employer 16 shall notify the employee and the department in writing. 17 The employee shall have the right to submit evidence to the 18 employer and department that the employee is eligible for 19 employment. If the department determines after examination 20 of such evidence that the employee was inaccurately indicated 21 as ineligible for employment by the e-verify program, the 22 department shall provide the employee with back pay in an 23 amount equal to the wages the employee would have earned from 24 employment by the employer from the date of the inaccurate 25 indication through the date of the department’s determination. 26 The employee may request a contested case hearing pursuant to 27 chapter 17A following the department’s determination. There is 28 appropriated to the department from funds in the general fund 29 not otherwise appropriated an amount necessary to provide any 30 back pay to employees required pursuant to this subsection. 31 Sec. 4. NEW SECTION . 95.4 Compliance with federal and state 32 law. 33 This chapter shall not be construed to require an employer to 34 take any action that the employer believes in good faith would 35 -7- SF516.1453 (1) 88 je/rn 7/ 8

violate federal or state law. 1 Sec. 5. NEW SECTION . 95.5 Rules. 2 The department shall adopt rules pursuant to chapter 17A to 3 administer this chapter. 4 Sec. 6. NEW SECTION . 95.6 Use of federal funds by 5 department prohibited. 6 The department shall not utilize federal funds, or personnel 7 or any other department resources for which federal funding 8 is allocated, to carry out the department’s duties under this 9 chapter. 10 Sec. 7. IMPLEMENTATION OF ACT. Section 25B.2, subsection 3, 11 shall not apply to this Act. > 12 2. Title page, line 1, after < aliens > by inserting < , making 13 an appropriation, > 14 ______________________________ ROBERT M. HOGG -8- SF516.1453 (1) 88 je/rn 8/ 8 #2.