Bills › 88th General Assembly

Relating to the employment of unauthorized aliens and providing penalties

Topics:Business & economyCourts & civil lawImmigration

Same legislation: SF 516

Where it is now

  1. Done: IntroducedFebruary 12, 2019
  2. Done: SubcommitteeFebruary 13, 2019
  3. Done: Senate committeeMarch 6, 2019
  4. Skipped: Passes the SenateContinued as SF 516
  5. Next: House committee
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Became SF 516 → Its progress continues under the new number. Go to SF 516 What’s a funnel?

What’s in it

This bill prohibits employers from knowingly employing unauthorized aliens. The bill defines “employer” as a person that transacts business in this state and that has a license issued by an agency in this state. “Employer” includes this state, a political subdivision of this state, and a self-employed individual. In the case of an independent contractor, “employer” means the independent contractor and does not mean the person or organization that uses the contract labor. The bill requires the county attorney to bring an action in district court against an employer for a violation in the county where the unauthorized alien employee is or was employed by the employer.

Read the full explanation

The bill provides that such an action must be expedited by the court. The bill provides that for a first violation, the court must order the employer to terminate the employment of all unauthorized aliens and to submit a signed sworn affidavit to that effect or face suspension of business licenses by appropriate agencies. The court must also order a three-year probationary period for the employer. The court may also order the suspension of the employer’s business licenses by appropriate agencies for up to business days, after considering certain specified factors. The bill provides that for a second violation, defined as a violation occurring during a probationary period for a previous violation, the court must order the permanent revocation of the employer’s business licenses. The bill directs the secretary of state to maintain an online database of first-time offenders. In determining the immigration status of an alleged unauthorized alien employed by an employer, the bill requires the district court to consider the federal government’s determination of the immigration status of the employee. The federal government’s determination that the employee is an unauthorized alien creates a rebuttable presumption of the employee’s unauthorized status. The employer may present evidence that the employee is not an unauthorized alien. §1324a(b), relating to verification of authorization for employment, establishes a conclusive affirmative defense that the employer did not knowingly employ an unauthorized alien. §1324a(b), notwithstanding an isolated, sporadic, or accidental technical or procedural failure to meet the requirements, if there is a good-faith attempt to comply with the requirements. The bill provides an employer with an affirmative defense of entrapment if certain elements are met. The bill requires an employer hiring a new employee to verify the employee’s employment eligibility through the federal e-verify program. The bill requires the employer to keep records of the verification for the duration of the employee’s employment or three years, whichever is longer. The bill requires an employer receiving an economic development incentive from a state government entity to register with the federal e-verify program. The bill provides that an employer who does not comply with the requirement must repay all moneys received for the economic development incentive. The bill provides an employer the right to appeal a determination of noncompliance and does not require repayment until a final determination of noncompliance is made. The bill directs the secretary of state to request from the United States department of homeland security a list of employers registered with the e-verify program every three months. The bill directs the secretary of state to make the list available on the secretary of state’s internet site. The bill provides that the bill shall not be construed to require an employer to take any action that the employer believes in good faith would violate federal or state law.3.2, subsection 3, which would relieve a political subdivision from complying with a state mandate if funding for the cost of the state mandate is not provided or specified. Therefore, political subdivisions are required to comply with any state mandate included in the bill.

Changed since by amendments S-3101, S-3100; see Amendments.

Full bill text1

Senate subcommittee

Named February 13, 2019. It hasn’t reported yet.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

AI summary This bill prohibits licensed employers from knowingly employing unauthorized aliens and requires them to use the federal E-Verify Program. The Iowa Department of Workforce Development is estimated to spend $844,000 from the General Fund in fiscal year 2020 and $728,000 in subsequent years to add 8.0 positions and cover other costs. The Secretary of State will use an estimated $13,000 from their General Fund appropriation in fiscal year 2020 to create a database and approximately $500 annually beginning in fiscal year 2020 for data entry and processing.2

Read the fiscal note

Description

Senate File 516 prohibits licensed employers from knowingly employing unauthorized aliens and authorizes a county attorney, local law enforcement official, or member of the public to file a complaint of a violation with the Iowa Department of Workforce Development (IWD). If the IWD determines that an employer has committed a violation, the IWD is required to bring an action in district court against an employer for a violation in the county where the unauthorized alien employee is or was employed by the employer. The Bill requires licensed employers hiring or rehiring an employee to verify the employee’s employment eligibility through the federal E-Verify Program and certify to the IWD that the employer has done so. The Bill further requires the IWD to adopt administrative rules to carry out the IWD’s duties under the Bill. The Bill also requires the Secretary of State to maintain an online database of employers registered with the federal E-Verify Program, first-time employer offenders, and related court documents.

Assumptions

  • The Bill requires the IWD to incur additional expenses for vehicles, phones, computers, employee support, preparation of rules, development of training materials, training of staff, investigative time, postage, filing fees, service of process fees, witness subpoenas, travel time and expenses, court preparation and appearances, monitoring employers, and following up on court orders. This will result in the IWD adding the following 8.0 full-time equivalent (FTE) positions:
  • Administrative Assistant 1.0 FTE position
  • Field Auditors 2.0 FTE positions
  • Investigator 2 4.0 FTE positions
  • Attorney 2 1.0 FTE position
  • Salary costs include benefits and are estimated at the entry level of the salary range for each position.
  • The IWD will investigate 500 complaints per year and file 50 court actions.
  • The Secretary of State will develop in-house and maintain a permanent searchable database.
  • The Secretary of State will use a link to the federal Department of Human Services E-Verify System for the purposes of new Iowa Code section 95.3(3).
  • The Secretary of State will use 0.5 hours of staff time at $19 per hour to manage court documents for each court action.

Fiscal Impact

Senate File 516 will result in the IWD expending an estimated $844,000 for 8.0 FTE positions and additional costs in FY 2020 and $728,000 for 8.0 FTE positions and additional costs in subsequent years, to be paid from the General Fund.

The Secretary of State will utilize an estimated $13,000 from their General Fund appropriation in FY 2020 for the creation of a database and approximately $500 from their General Fund appropriation annually beginning with FY 2020 for the processing of court documents and data entry.

Sources

  • Iowa Department of Workforce Development
  • Iowa Economic Development Authority
  • Iowa Secretary of State
  • Iowa Department of Commerce
  • Iowa Department of Public Health
  • LSA analysis and calculations

Reading a fiscal note3

Iowa Code it changes

Creates§95.1§95.2§95.3§95.4

How the Code works4

Lobbying

2 for · 19 against · 22 undecided · Who →

Family tree

Earlier and later bills are matched by wording or an identical title.

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