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| PRIOR PRINTER'S NO. 645 | PRINTER'S NO. 992 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY WARD, BREWSTER, SCARNATI, McILHINNEY, EICHELBERGER, D. WHITE, VOGEL, RAFFERTY, BRUBAKER, ORIE, FONTANA, ALLOWAY, GREENLEAF, WAUGH, ARGALL, PICCOLA AND WASHINGTON, FEBRUARY 24, 2011 |
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| SENATOR McILHINNEY, STATE GOVERNMENT, AS AMENDED, APRIL 6, 2011 |
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| AN ACT |
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1 | Amending Title 62 (Procurement) of the Pennsylvania Consolidated |
2 | Statutes, in contracts for public works, providing for |
3 | verification of the employment eligibility of all employees |
4 | for purposes of wage reporting and employment eligibility; |
5 | prescribing penalties; and establishing good faith immunity |
6 | under certain circumstances. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | Section 1. Chapter 39 of Title 62 of the Pennsylvania |
10 | Consolidated Statutes is amended by adding a subchapter to read: |
11 | SUBCHAPTER F |
12 | EMPLOYMENT VERIFICATION |
13 | Sec. |
14 | 3951. Scope of subchapter. |
15 | 3952. Definitions. |
16 | 3953. Verification. |
17 | 3954. Violations. |
18 | 3955. Enforcement and sanctions. |
19 | 3956. Protection from retaliation. |
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1 | 3957. Good faith immunity. |
2 | § 3951. Scope of subchapter. |
3 | This subchapter relates to verification of employment on |
4 | certain public works projects. |
5 | § 3952. Definitions. |
6 | The following words and phrases when used in this subchapter |
7 | shall have the meanings given to them in this section unless the |
8 | context clearly indicates otherwise: |
9 | "Department." The Department of Labor and Industry of the |
10 | Commonwealth. |
11 | "Employee." An individual for whom a public works contractor |
12 | is required by law to file a Form W-2 with the Internal Revenue |
13 | Service. |
14 | "EVP." The E-Verify Program operated by the Department of |
15 | Homeland Security that electronically verifies employment |
16 | eligibility for employees. |
17 | "INA." The Immigration and Nationality Act (66 Stat. 163, 8 |
18 | U.S.C. § 1101 et seq.). |
19 | "NVS." The Social Security Number Verification Service |
20 | operated by the Social Security Administration. |
21 | "Public body." The Commonwealth of Pennsylvania, any of its |
22 | political subdivisions, any authority created by the General |
23 | Assembly of the Commonwealth and any instrumentality or agency |
24 | of the Commonwealth. |
25 | "Public work." Construction, reconstruction, demolition, |
26 | alteration and repair work other than maintenance work, done |
27 | under contract and paid for in whole or in part out of the funds |
28 | of a public body where the estimated cost of the total project |
29 | is in excess of $25,000. The term shall not include work |
30 | performed under a rehabilitation or manpower training program. |
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1 | "Public works contractor." A contractor that provides goods |
2 | or services under a contract involving a public works project. |
3 | "Public works project." A project involving a public work. |
4 | "Secretary." The Secretary of Labor and Industry of the |
5 | Commonwealth. |
6 | "Subcontractor." A person, other than a natural person, |
7 | regardless of its tier, including, but not limited to, a |
8 | staffing agency, that performs work for a public works |
9 | contractor under a contract for a public work. |
10 | "Willful." Action or conduct undertaken intentionally or |
11 | with reckless disregard for or deliberate ignorance of the |
12 | requirements and obligations established by this subchapter. |
13 | § 3953. Verification. |
14 | (a) General rule.--As a precondition of being awarded a |
15 | contract for a public work, and prior to the execution of the |
16 | contract, a public works contractor shall provide the |
17 | Commonwealth agency with which the contract will be made a |
18 | verification statement in which it shall represent the |
19 | following: |
20 | (1) The public works contractor has verified the |
21 | employment eligibility of all of its then-existing employees |
22 | for wage reporting purposes through NVS in accordance with |
23 | Federal law governing the use of NVS. |
24 | (2) The public works contractor will verify the |
25 | employment eligibility of a new employee for employment |
26 | purposes prior to the commencement of work by the new |
27 | employee through EVP in accordance with Federal law governing |
28 | the use of EVP. |
29 | (3) The public works contractor will provide the |
30 | Commonwealth agency with the verification statement required |
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1 | under subsection (b) from each subcontractor it uses or |
2 | intends to use on the public works project prior to the |
3 | commencement of any work by the subcontractor on the public |
4 | works project. |
5 | (4) The public works contractor will provide a |
6 | certification from the department verifying that the |
7 | contractor has not previously violated this subchapter. |
8 | (b) Subcontractor verification statements.--Prior to the |
9 | execution of a subcontract with a public works contractor, a |
10 | subcontractor shall provide the public works contractor with a |
11 | verification statement containing substantially the same |
12 | information about the subcontractor as required under subsection |
13 | (a) about the public works contractor. The subcontractor shall |
14 | submit the verification statement to the contractor prior to the |
15 | commencement of any work by the subcontractor on the public |
16 | works project. |
17 | (c) Form.--The verification statement required by this |
18 | section shall be on a form prescribed by the secretary and shall |
19 | comply with the following additional requirements: |
20 | (1) The statement shall include a certification that the |
21 | information in the statement is true and correct and that the |
22 | person signing the statement understands that the submission |
23 | of false or misleading information in connection with the |
24 | verification shall subject the person and the public works |
25 | contractor or subcontractor, as the case may be, to sanctions |
26 | provided by law. |
27 | (2) The statement shall be signed by a representative of |
28 | the public works contractor or subcontractor, as applicable, |
29 | who has sufficient knowledge and authority to make the |
30 | representations and certifications contained in the |
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1 | statement. |
2 | (d) Discrimination prohibited.--In conducting the employment |
3 | eligibility required by this section, a public works contractor |
4 | or its subcontractor shall not discriminate against any employee |
5 | on the basis of race, ethnicity, color or national origin. |
6 | § 3954. Violations. |
7 | The following shall constitute a violation of this |
8 | subchapter: |
9 | (1) Employment by a public works contractor or |
10 | subcontractor of an employee whose employment eligibility has |
11 | not been verified by NVS or EVP as required by this |
12 | subchapter. |
13 | (2) Use by a public works contractor of a subcontractor |
14 | on a public works project prior to the submission by the |
15 | subcontractor of a verification statement required by this |
16 | subchapter. |
17 | (3) Commencement of work by a subcontractor on a public |
18 | works project prior to submitting to the public works |
19 | contractor a verification statement required by this |
20 | subchapter. |
21 | (4) Making a false statement or misrepresentation in a |
22 | verification statement required by this subchapter. |
23 | § 3955. Enforcement and sanctions. |
24 | (a) General rule.--The secretary shall enforce the |
25 | provisions of this subchapter. |
26 | (b) Investigation of complaints.--The secretary shall |
27 | accept, review and investigate in a timely manner any credible |
28 | complaint that a public works contractor or subcontractor has |
29 | violated a provision of this subchapter. |
30 | (c) Audits.--To ensure compliance with the requirements of |
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1 | this subchapter, the secretary shall conduct complaint-based and |
2 | random audits of public works contractors and subcontractors in |
3 | this Commonwealth. In conducting such audits, the secretary |
4 | shall utilize NVS and EVP to verify the employment eligibility |
5 | of employees for wage reporting purposes and employment |
6 | eligibility, as appropriate, in accordance with Federal law |
7 | governing the use of NVS and EVP. |
8 | (d) Sanctions.--The following sanctions shall apply to | <-- |
9 | violations of section 724A of the INA (8 U.S.C. § 1324a) or of |
10 | this act: |
11 | (1) A public works contractor or subcontractor that |
12 | violates section 724A of the INA or engages in violations |
13 | described in section 3954(1), (2) or (3) (relating to |
14 | violations): |
15 | (i) For the first offense, the secretary may issue a |
16 | warning letter detailing the violation and post the |
17 | letter on the department's Internet website. |
18 | (ii) At the discretion of the Commonwealth agency |
19 | with whom the public works contractor has contracted, may |
20 | be subject to termination of the contract by the |
21 | Commonwealth agency without recourse against or penalty |
22 | to the Commonwealth agency. The right of the Commonwealth |
23 | agency to terminate the contract under this subparagraph |
24 | may not be waived. |
25 | (iii) At the discretion of the public works |
26 | contractor with whom the subcontractor has contracted, |
27 | may be subject to termination of the subcontract by the |
28 | public works contractor without recourse against or |
29 | penalty to the public works contractor. The right of the |
30 | public works contractor to terminate the subcontract |
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1 | under this subparagraph may not be waived. |
2 | (2) A public works contractor or subcontractor that |
3 | willfully violates section 724A 274A of the INA (8 U.S.C. § | <-- |
4 | 1324a) or willfully engages in violations described in |
5 | section 3954(1), (2) or (3): |
6 | (i) At the discretion of the secretary, shall be | <-- |
7 | subject to debarment under section 531 for one year. |
8 | (ii) At the discretion of the Commonwealth agency |
9 | with which the public works contractor has contracted, |
10 | may be subject to termination of the contract by the |
11 | Commonwealth agency without recourse against or penalty |
12 | to the Commonwealth agency and a fine of up to $2,000. |
13 | The right of the Commonwealth agency to terminate the |
14 | contract under this subparagraph may not be waived. |
15 | (iii) At the discretion of the public works |
16 | contractor with whom the subcontractor has contracted, |
17 | may be subject to termination of the subcontract by the |
18 | public works contractor without recourse against or |
19 | penalty to the public works contractor. The right of the |
20 | public works contractor to terminate the subcontract |
21 | under this subparagraph may not be waived. |
22 | (1) For a first offense relating to the public contract, | <-- |
23 | a warning letter may be issued by the secretary detailing the |
24 | violation. The letter shall be posted on the department's |
25 | Internet website. |
26 | (2) For a second offense relating to the public |
27 | contract: |
28 | (i) At the discretion of the Commonwealth agency |
29 | with which the public works contractor has contracted, |
30 | may be subject to termination of the contract by the |
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1 | Commonwealth agency without recourse against or penalty |
2 | to the Commonwealth agency and a fine of up to $2,000. |
3 | The right of the Commonwealth agency to terminate the |
4 | contract under this subparagraph may not be waived. |
5 | (ii) At the discretion of the public works |
6 | contractor with whom the subcontractor has contracted, |
7 | may be subject to termination of the subcontract by the |
8 | public works contractor without recourse against or |
9 | penalty to the public works contractor. The right of the |
10 | public works contractor to terminate the subcontract |
11 | under this subparagraph may not be waived. |
12 | (3) For a third or subsequent offense relating to the |
13 | public contract, at the discretion of the secretary, in |
14 | addition to the sanctions in paragraph (2), shall be subject |
15 | to debarment under section 531 (relating to debarment or |
16 | suspension) for one year. |
17 | § 3956. Protection from retaliation. |
18 | (a) General rule.--It shall be unlawful for a public works |
19 | contractor or subcontractor to discharge, threaten or otherwise |
20 | retaliate or discriminate against an employee regarding |
21 | compensation or other terms or conditions of employment because |
22 | the employee: |
23 | (1) participates in an investigation, hearing or inquiry |
24 | held by the secretary or any other governmental authority |
25 | under this subchapter; or |
26 | (2) reports or makes a complaint regarding the violation |
27 | of this subchapter to a public works contractor, |
28 | subcontractor or governmental authority. |
29 | (b) Actions.-- |
30 | (1) Any employee who suffers retaliation or |
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1 | discrimination in violation of this section may bring an |
2 | action in a court of common pleas in accordance with |
3 | established civil procedures of this Commonwealth. |
4 | (2) The action must be brought within three years from |
5 | the date the employee knew of the retaliation or |
6 | discrimination. |
7 | (c) Relief.--If an employee prevails in an action commenced |
8 | under this section, the employee shall be entitled to the |
9 | following relief: |
10 | (1) Reinstatement of the employee, if applicable. |
11 | (2) Restitution equal to three times the amount of the |
12 | employee's wages and fringe benefits calculated from the date |
13 | of the violation or discrimination. |
14 | (3) Reasonable attorney fees and costs of the action. |
15 | (4) Any other legal and equitable relief as the court |
16 | deems appropriate. |
17 | § 3957. Good faith immunity. |
18 | A public works contractor or subcontractor that relies in |
19 | good faith on NVS and EVP procedures to verify the employment |
20 | eligibility of employees shall be immune from the sanctions |
21 | authorized under section 3955 (relating to enforcement and |
22 | sanctions) in the event that incorrect information has been |
23 | provided to the public works contractor or subcontractor. |
24 | Section 2. This act shall take effect in 60 days. |
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