House File 2446 - Introduced HOUSE FILE BY DIX, KURTENBACH, S. OLSON, and WATTS Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to noncitizens of the United States including 2 restricting the allocation of housing trust fund moneys, 3 prohibiting the servicing of first mortgages, relating to 4 employment, and providing for penalties. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 6023YH 81 7 kk/sh/8 PAG LIN 1 1 Section 1. Section 16.181, Code 2005, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 3A. Funds allocated from the housing 1 4 trust fund shall not be used for the provision of housing for 1 5 persons who are not lawfully present in the United States. 1 6 Sec. 2. NEW SECTION. 73A.22 STATE ASSISTANCE 1 7 RESTRICTIONS == PERSONS EMPLOYING UNAUTHORIZED ALIENS. 1 8 1. a. A state department, institution, or agency, or any 1 9 board member, commissioner, director, manager, or other person 1 10 connected with any such department, institution, or agency, 1 11 shall not award a contract or provide developmental assistance 1 12 to an employer as defined in section 91F.1 in which the 1 13 employer or corporate officer of the employer has been found 1 14 in violation of section 91F.2 within the past five years. 1 15 b. For purposes of this section, "developmental 1 16 assistance" means any form of public assistance, including tax 1 17 expenditures, made for the purpose of stimulating the economic 1 18 development of a corporation, industry, geographic 1 19 jurisdiction, or any other sector of the state's economy, 1 20 including but not limited to industrial development bonds, 1 21 training grants, loans, loan guarantees, enterprise zones, 1 22 empowerment zones, tax increment financing, fee waivers, land 1 23 price subsidies, infrastructure constructed or improved for 1 24 the benefit of a single business or defined group of 1 25 businesses at the time it is built or improved, matching 1 26 funds, tax abatements, tax credits and tax discounts of every 1 27 kind, including corporate, franchise, personal income, sales 1 28 and use, raw materials, real property, job creation, 1 29 individual investment, excise, utility, inventory, accelerated 1 30 depreciation, and research and development tax credits and 1 31 discounts. 1 32 2. Any contract or developmental assistance awarded shall 1 33 provide that if, during the effective period of the contract 1 34 or developmental assistance, the vendor, contractor, 1 35 subcontractor, or developmental assistance recipient violates 2 1 the provisions of section 91F.2, the contract or developmental 2 2 assistance shall be terminated. 2 3 3. A state department, institution, or agency may enforce 2 4 its rights under this section by instituting a civil action in 2 5 district court in this state. In addition, a state 2 6 department, institution, or agency shall not award a contract 2 7 or provide developmental assistance to any person that 2 8 violates this section for a period of five years after the 2 9 date of the violation. 2 10 Sec. 3. NEW SECTION. 91F.1 DEFINITIONS. 2 11 As used in this chapter: 2 12 1. "Commissioner" means the labor commissioner. 2 13 2. "Employee" means a natural person who is employed in 2 14 this state for wages paid on an hourly basis by an employer. 2 15 3. "Employer" means a person, as defined in section 4.1, 2 16 who in this state employs for wages, paid on an hourly basis, 2 17 one or more natural persons. An employer does not include a 2 18 client, patient, customer, or other person who obtains 2 19 professional services from a licensed person who provides the 2 20 services on a fee service basis or as an independent 2 21 contractor, or the state, or an agency or governmental 2 22 subdivision of the state. 2 23 4. "Unauthorized alien" means a person who is not a 2 24 citizen or legal resident and who has not been lawfully 2 25 admitted to the United States for permanent residence or who 2 26 is not authorized to work in the United States. 2 27 Sec. 4. NEW SECTION. 91F.2 UNAUTHORIZED ALIENS == 2 28 EMPLOYER PROHIBITION. 2 29 An employer shall not knowingly employ as an employee an 2 30 unauthorized alien. For purposes of this section, "knowingly 2 31 employ as an employee an unauthorized alien" includes cases in 2 32 which an employer actually knows a person is an unauthorized 2 33 alien and cases in which any person exercising reasonable care 2 34 should know from facts and circumstances that a person is an 2 35 unauthorized alien. 3 1 Sec. 5. NEW SECTION. 91F.3 PENALTIES. 3 2 1. An employer who violates section 91F.2 is subject to a 3 3 civil penalty of up to one thousand dollars. 3 4 2. A corporate officer of an employer who, through 3 5 repeated violation of section 91F.2, demonstrates a pattern of 3 6 employing unauthorized aliens commits a serious misdemeanor. 3 7 3. An employer who, through repeated violation of section 3 8 91F.2, demonstrates a pattern of employing unauthorized aliens 3 9 may be ordered to pay punitive damages. 3 10 Sec. 6. NEW SECTION. 91F.4 DUTIES AND AUTHORITY OF THE 3 11 COMMISSIONER == ENFORCEMENT BY ATTORNEY GENERAL. 3 12 1. The commissioner shall adopt rules to implement and 3 13 enforce this chapter. 3 14 2. In order to carry out the purposes of this chapter, the 3 15 commissioner or the commissioner's representative, upon 3 16 presenting appropriate credentials to an employer's owner, 3 17 operator, or agent in charge, may: 3 18 a. Inspect employment records relating to the employees of 3 19 the employer. 3 20 b. Interview an employer, owner, operator, agent, or 3 21 employee, during working hours or at other reasonable times. 3 22 3. If the commissioner has reason to believe than an 3 23 employer may be in violation of this chapter, the commissioner 3 24 shall notify the attorney general, and provide the attorney 3 25 general with any supporting information, for prosecution of 3 26 the violation by the attorney general. 3 27 Sec. 7. NEW SECTION. 91F.5 PROHIBITIONS RELATING TO 3 28 CERTAIN ACTIONS BY EMPLOYEES == PENALTY == CIVIL REMEDY. 3 29 1. An employer shall not discharge an employee or take or 3 30 fail to take action regarding an employee's appointment or 3 31 proposed appointment or promotion or proposed promotion, or 3 32 regarding any advantage of an employee as a reprisal for a 3 33 failure by that employee to inform the employer that the 3 34 employee made a disclosure of information to any law 3 35 enforcement agency if the employee reasonably believes the 4 1 information evidences a violation of section 91F.2. 4 2 2. Subsection 1 does not apply if the disclosure of the 4 3 information is prohibited by statute. 4 4 3. An employer who violates subsection 1 commits a simple 4 5 misdemeanor. 4 6 4. Subsection 1 may be enforced through a civil action. 4 7 a. An employer who violates subsection 1 is liable to an 4 8 aggrieved employee for affirmative relief, including 4 9 reinstatement, with or without back pay, or any other 4 10 equitable relief the court deems appropriate, including 4 11 attorney fees and costs. 4 12 b. If an employer commits, is committing, or proposes to 4 13 commit an act in violation of subsection 1, an injunction may 4 14 be granted through an action in district court to prohibit the 4 15 person from continuing such acts. The action for injunctive 4 16 relief may be brought by an aggrieved employee or the attorney 4 17 general. 4 18 Sec. 8. Section 535B.11, Code 2005, is amended by adding 4 19 the following new subsection: 4 20 NEW SUBSECTION. 8. Refuse to service a first mortgage 4 21 loan for residential real property intended to be used as a 4 22 primary residence in this state to a person who is neither a 4 23 citizen of the United States nor lawfully admitted for 4 24 permanent residence under the federal Immigration and 4 25 Nationality Act, 8 U.S.C. } 1101 et seq. 4 26 EXPLANATION 4 27 This bill relates to the financing of housing for 4 28 noncitizens of the United States. The bill prohibits funds 4 29 allocated from the housing trust fund in Code section 16.181 4 30 by the Iowa finance authority to be used to provide housing 4 31 for persons who are not lawfully present in the United States. 4 32 The housing trust fund provides funds to local housing 4 33 authorities for the local housing trust fund program and the 4 34 project=based housing program. 4 35 The bill also provides that a mortgage banker or mortgage 5 1 broker licensed under Code chapter 535B or other mortgagee who 5 2 services mortgages on residential real estate in this state 5 3 shall refuse to provide certain mortgage loans to a person who 5 4 is not either a citizen of the United States or a lawful 5 5 permanent resident under the federal Immigration and 5 6 Nationality Act. This restriction under the bill applies only 5 7 to first mortgage loans for residential real property that is 5 8 intended to be used as a primary residence of the mortgage 5 9 applicant. Under current law, a "first mortgage loan" is 5 10 defined as a loan of money secured by a first lien on 5 11 residential real property and includes a refinancing of a 5 12 contract of sale, an assumption of a prior loan, and a 5 13 refinancing of a prior loan. A violation of this provision of 5 14 the bill would be a violation of Code chapter 535B and subject 5 15 to enforcement by the superintendent of the division of 5 16 banking of the department of commerce. The superintendent may 5 17 conduct an investigation or examination, issue a cease and 5 18 desist order, and request that the attorney general file a 5 19 civil action for injunctive relief, restitution for an 5 20 aggrieved mortgagor, and costs for the investigation and 5 21 prosecution. 5 22 New Code section 73A.22 is created to prohibit state 5 23 entities from awarding a contract or providing developmental 5 24 assistance to a person who violates the provisions of the bill 5 25 concerning the employment of unauthorized aliens as 5 26 established in new Code section 91F.2. The bill defines 5 27 "developmental assistance" as any form of public assistance, 5 28 including tax incentives, grants, or other subsidies. The 5 29 bill provides that a person violating this new provision shall 5 30 have their contract or developmental assistance terminated. 5 31 The bill grants state entities the right to enforce their 5 32 rights in district court and provides that a person violating 5 33 this provision shall be prohibited from receiving a state 5 34 contract or developmental assistance for five years. 5 35 The bill creates new Code chapter 91F prohibiting employers 6 1 from employing unauthorized aliens. The bill defines 6 2 "unauthorized aliens" as any person who is not a citizen or 6 3 legal resident and who has not been lawfully admitted to the 6 4 United States for permanent residence or who is not authorized 6 5 to work in the United States. An "employer" is any person who 6 6 employs for wages, paid on an hourly basis, one or more 6 7 natural persons. The bill prohibits employers from knowingly 6 8 employing an unauthorized alien. The bill provides that a 6 9 violation can occur in cases in which an employer actually 6 10 knows a person is an unauthorized alien as well as a situation 6 11 in which any person exercising reasonable care should know 6 12 from facts and circumstances that a person is an unauthorized 6 13 alien. The bill provides that a violation of this chapter is 6 14 subject to a civil penalty of $1,000 and a corporate officer 6 15 of an employer who, through repeated violations of the 6 16 chapter, demonstrates a pattern of employing unauthorized 6 17 aliens, commits a serious misdemeanor. An employer who 6 18 demonstrates a pattern of employing unauthorized aliens may be 6 19 ordered to pay punitive damages. The bill further authorizes 6 20 the labor commissioner within the department of workforce 6 21 development to adopt rules to administer and enforce this new 6 22 chapter and grants the commissioner the authority to 6 23 investigate employer records and to interview employees. The 6 24 bill provides that the commissioner shall forward any 6 25 suspected violations of this chapter to the attorney general 6 26 for prosecution. The bill further provides that an employer 6 27 shall not discharge an employee from or take or fail to take 6 28 action regarding an employee's appointment or proposed 6 29 appointment, promotion or proposed promotion, or regarding any 6 30 advantage of an employee as a reprisal for a failure by that 6 31 employee to inform the employer that the employee made a 6 32 disclosure of information to any law enforcement agency if the 6 33 employee reasonably believes the information evidences a 6 34 violation of Code section 91F.2, 710A.2, 710A.3, or 710A.4. 6 35 An employer who violates the provisions of this chapter is 7 1 liable to an aggrieved employee for affirmative relief 7 2 including reinstatement, with or without back pay, or any 7 3 other equitable relief the court deems appropriate, including 7 4 attorney fees and costs. In addition, an action for 7 5 injunctive relief may be brought by an aggrieved employee or 7 6 the attorney general. 7 7 LSB 6023YH 81 7 8 kk:rj/sh/8.2