House File 2671 - Introduced
HOUSE FILE
BY COMMITTEE ON COMMERCE,
REGULATION AND LABOR
(SUCCESSOR TO HF 2446)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to illegal aliens 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:
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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 rental
1 5 housing for persons who are not lawfully present in the United
1 6 States. This subsection does not apply to funds allocated to
1 7 homeless shelters.
1 8 Sec. 2. NEW SECTION. 91F.1 DEFINITIONS.
1 9 As used in this chapter:
1 10 1. "Commissioner" means the labor commissioner.
1 11 2. "Employee" means a natural person who is employed in
1 12 this state for wages paid on an hourly basis by an employer.
1 13 3. "Employer" means a person, as defined in section 4.1,
1 14 who in this state employs for wages, paid on an hourly basis,
1 15 one or more natural persons. An employer does not include a
1 16 client, patient, customer, or other person who obtains
1 17 professional services from a licensed person who provides the
1 18 services on a fee service basis or as an independent
1 19 contractor, or the state, or an agency or governmental
1 20 subdivision of the state.
1 21 4. "Unauthorized alien" means a person who is not lawfully
1 22 present in the United States.
1 23 Sec. 3. NEW SECTION. 91F.2 UNAUTHORIZED ALIENS ==
1 24 EMPLOYER PROHIBITION.
1 25 An employer shall not knowingly employ as an employee an
1 26 unauthorized alien. For purposes of this section, "knowingly
1 27 employ as an employee an unauthorized alien" means an employer
1 28 has actual knowledge that a person is an unauthorized alien
1 29 and employs the person as an employee. An employer who
1 30 obtains a verification of employment eligibility form required
1 31 by the federal Immigration Reform and Control Act of 1986, 8
1 32 U.S.C. } 1324a, shall not be considered in violation of this
1 33 chapter.
1 34 Sec. 4. NEW SECTION. 91F.3 PENALTIES.
1 35 1. An employer who violates section 91F.2 is subject to a
2 1 civil penalty of up to one thousand dollars.
2 2 2. A corporate officer of an employer who, by knowingly
2 3 directing the repeated violation of section 91F.2,
2 4 demonstrates a pattern of employing unauthorized aliens
2 5 commits a serious misdemeanor.
2 6 3. An employer who, through repeated violation of section
2 7 91F.2, demonstrates a pattern of employing unauthorized aliens
2 8 may be ordered to pay punitive damages.
2 9 Sec. 5. NEW SECTION. 91F.4 DUTIES AND AUTHORITY OF THE
2 10 COMMISSIONER == ENFORCEMENT BY ATTORNEY GENERAL.
2 11 1. The commissioner shall adopt rules to implement and
2 12 enforce this chapter.
2 13 2. In order to carry out the purposes of this chapter, the
2 14 commissioner or the commissioner's representative, upon
2 15 presenting appropriate credentials to an employer's owner,
2 16 operator, or agent in charge, may:
2 17 a. Inspect employment records relating to the employees of
2 18 the employer.
2 19 b. Interview an employer, owner, operator, agent, or
2 20 employee, during working hours or at other reasonable times.
2 21 3. If the commissioner has reason to believe than an
2 22 employer may be in violation of this chapter, the commissioner
2 23 shall notify the attorney general, and provide the attorney
2 24 general with any supporting information, for prosecution of
2 25 the violation by the attorney general.
2 26 Sec. 6. NEW SECTION. 91F.5 PROHIBITIONS RELATING TO
2 27 CERTAIN ACTIONS BY EMPLOYEES == PENALTY == CIVIL REMEDY.
2 28 1. An employer shall not discharge an employee or take or
2 29 fail to take action regarding an employee's appointment or
2 30 proposed appointment or promotion or proposed promotion, or
2 31 regarding any advantage of an employee as a reprisal for a
2 32 failure by that employee to inform the employer that the
2 33 employee made a disclosure of information to any law
2 34 enforcement agency if the employee reasonably believes the
2 35 information evidences a violation of section 91F.2.
3 1 2. Subsection 1 does not apply if the disclosure of the
3 2 information is prohibited by statute.
3 3 3. An employer who violates subsection 1 commits a simple
3 4 misdemeanor.
3 5 4. Subsection 1 may be enforced through a civil action.
3 6 a. An employer who violates subsection 1 is liable to an
3 7 aggrieved employee for affirmative relief, including
3 8 reinstatement, with or without back pay, or any other
3 9 equitable relief the court deems appropriate, including
3 10 attorney fees and costs.
3 11 b. If an employer commits, is committing, or proposes to
3 12 commit an act in violation of subsection 1, an injunction may
3 13 be granted through an action in district court to prohibit the
3 14 person from continuing such acts. The action for injunctive
3 15 relief may be brought by an aggrieved employee or the attorney
3 16 general.
3 17 Sec. 7. NEW SECTION. 535B.11A MORTGAGES TO PERSONS
3 18 UNLAWFULLY PRESENT.
3 19 A licensee or other mortgagee who services mortgages on
3 20 residential real estate located in this state shall not
3 21 knowingly service a first mortgage loan for residential real
3 22 property that is originated on or after July 1, 2007, and is
3 23 intended to be used as a primary residence in this state of a
3 24 person who is not lawfully present in the United States. The
3 25 enforcement provisions of section 535B.13 shall not apply to a
3 26 violation under this section. The attorney general may file
3 27 an action for injunctive relief against a licensee or other
3 28 mortgagee who violates this section. A licensee or other
3 29 mortgagee who complies with the customer identification
3 30 program requirements under 31 U.S.C. } 5318(l) shall not be
3 31 considered in violation of this section.
3 32 EXPLANATION
3 33 This bill relates to illegal aliens by restricting access
3 34 to certain financing of housing and prohibiting employment.
3 35 The bill prohibits funds allocated from the housing trust fund
4 1 in Code section 16.181 by the Iowa finance authority to be
4 2 used to provide rental housing for persons who are not
4 3 lawfully present in the United States. The housing trust fund
4 4 provides funds to local housing authorities for the local
4 5 housing trust fund program and the project=based housing
4 6 program. The bill does not apply to funding for homeless
4 7 shelters.
4 8 The bill also provides that a mortgage banker or mortgage
4 9 broker licensed under Code chapter 535B or other mortgagee who
4 10 services mortgages on residential real estate in this state
4 11 shall not knowingly service certain mortgage loans to a person
4 12 who is not lawfully present in the United States. This
4 13 restriction under the bill applies only to first mortgage
4 14 loans for residential real property that are intended to be
4 15 used as a primary residence of a person who is not lawfully
4 16 present in the United States. Under current law, a "first
4 17 mortgage loan" is defined as a loan of money secured by a
4 18 first lien on residential real property and includes a
4 19 refinancing of a contract of sale, an assumption of a prior
4 20 loan, and a refinancing of a prior loan. A licensee or other
4 21 mortgagee cannot be found in violation of the bill if the
4 22 licensee or mortgagee complies with certain federal laws
4 23 relating to customer identification. A violation of this
4 24 provision of the bill could be enjoined at the request of the
4 25 attorney general.
4 26 The bill creates new Code chapter 91F prohibiting employers
4 27 from employing unauthorized aliens. The bill defines
4 28 "unauthorized aliens" as any person who is not lawfully
4 29 present in the United States. An "employer" is any person who
4 30 employs for wages, paid on an hourly basis, one or more
4 31 natural persons. The bill prohibits employers from knowingly
4 32 employing an unauthorized alien. The bill provides that a
4 33 violation can occur in cases in which an employer actually
4 34 knows a person is an unauthorized alien. The bill provides
4 35 that a violation of this chapter is subject to a civil penalty
5 1 of $1,000 and a corporate officer of an employer who, through
5 2 knowingly directing the repeated violations of the chapter,
5 3 demonstrates a pattern of employing unauthorized aliens,
5 4 commits a serious misdemeanor. An employer who demonstrates a
5 5 pattern of employing unauthorized aliens may be ordered to pay
5 6 punitive damages. The bill further authorizes the labor
5 7 commissioner within the department of workforce development to
5 8 adopt rules to implement and enforce this new chapter and
5 9 grants the commissioner the authority to investigate employer
5 10 records and to interview employees. The bill provides that
5 11 the commissioner shall forward any suspected violations of
5 12 this chapter to the attorney general for prosecution.
5 13 The bill further provides that an employer shall not
5 14 discharge an employee from or take or fail to take action
5 15 regarding an employee's appointment or proposed appointment,
5 16 promotion or proposed promotion, or regarding any advantage of
5 17 an employee as a reprisal for a failure by that employee to
5 18 inform the employer that the employee made a disclosure of
5 19 information to any law enforcement agency if the employee
5 20 reasonably believes the information evidences a violation of
5 21 Code section 91F.2. An employer who violates these provisions
5 22 of this chapter commits a simple misdemeanor and is liable to
5 23 an aggrieved employee for affirmative relief including
5 24 reinstatement, with or without back pay, or any other
5 25 equitable relief the court deems appropriate, including
5 26 attorney fees and costs. In addition, an action for
5 27 injunctive relief may be brought by an aggrieved employee or
5 28 the attorney general.
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