Senate File 423 - Introduced SENATE FILE BY McKINLEY Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act requiring employers to verify employees' legal presence in 2 the state. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2571XS 82 5 ak/es/88 PAG LIN 1 1 Section 1. Section 84A.5, subsection 3, Code 2007, is 1 2 amended to read as follows: 1 3 3. The division of labor services is responsible for the 1 4 administration of the laws of this state under chapters 88, 1 5 88A, 88B, 89, 89A, 89B, 90A, 91, 91A, 91C, 91D, 91E, 91F, 92, 1 6 and 94A, and sections 30.7 and 85.68. The executive head of 1 7 the division is the labor commissioner, appointed pursuant to 1 8 section 91.2. 1 9 Sec. 2. NEW SECTION. 91F.1 DEFINITIONS. 1 10 1. "Commissioner" means the labor commissioner of the 1 11 division of labor services of the department of workforce 1 12 development. 1 13 2. "Employee" means a natural person who is employed in 1 14 this state for wages paid on an hourly basis by an employer. 1 15 3. "Employer" means a person, as defined in section 4.1, 1 16 who in this state employs for wages a natural person. An 1 17 employer does not include a client, patient, customer, or 1 18 other person who obtains professional services from a licensed 1 19 person who provides the services on a fee service basis or as 1 20 an independent contractor. 1 21 Sec. 3. NEW SECTION. 91F.2 LEGAL RESIDENCY VERIFICATION. 1 22 1. An employer who enters into a contract to perform work 1 23 for the state or an agency of the state must verify the lawful 1 24 presence of its employees in the state. 1 25 a. An employer shall be required to show proof of United 1 26 States citizenship, documentation issued by the United States 1 27 government as proof of legal presence in the country, or other 1 28 acceptable form of identification as determined by the 1 29 commissioner by rule for each current employee physically 1 30 present in the state. 1 31 b. Employers shall use the federal basic pilot program, 1 32 which is administered by the department of homeland security's 1 33 United States citizenship and immigration services bureau and 1 34 the social security administration, to verify the legal 1 35 residency or work status of newly hired employees physically 2 1 present in the state. An employer shall be required to show 2 2 receipts from the federal program as proof of new employees' 2 3 legal residency or work status. 2 4 2. The requirements of this chapter shall be included with 2 5 every request for proposals that the state or an agency of the 2 6 state issues in order to give notice of the requirements to 2 7 employers and employees. 2 8 3. The commissioner shall adopt rules pursuant to chapter 2 9 17A to establish a reasonable schedule and process for 2 10 verification of legal residency under this chapter. 2 11 4. An employer who does not comply with this chapter or 2 12 the rules adopted pursuant to this chapter shall not be 2 13 awarded a contract to perform work for the state or an agency 2 14 of the state. 2 15 EXPLANATION 2 16 This bill requires employers who accept contracts from the 2 17 state or an agency of the state to verify the lawful presence 2 18 of its employees in the state. 2 19 The bill requires that employers provide proof of current 2 20 employees' United States citizenship, documentation issued by 2 21 the federal government of legal presence, or other acceptable 2 22 identification as determined by the labor commissioner. The 2 23 bill requires that employers use the federal basic pilot 2 24 program to verify the legal presence of newly hired employees, 2 25 and show a receipt from the program to verify an employee's 2 26 legal presence. 2 27 The bill requires that notice of these requirements be 2 28 included in every request for proposals that the state or an 2 29 agency of the state issues. The bill also states that the 2 30 commissioner shall adopt rules to establish a reasonable 2 31 schedule and process for verification by employers of the 2 32 legal residency of their employees. 2 33 The bill states that an employer who does not comply shall 2 34 not be awarded state contracts in the future. 2 35 LSB 2571XS 82 3 1 ak:rj/es/88