1Prohibiting employment of illegal aliens; requiring
2participation in the Basic Pilot Program as a condition for
3Commonwealth contracts or grants; prohibiting business tax
4deductions for certain compensation; requiring suspension of
5licenses, registrations and certificates of incorporation
6under certain circumstances; and authorizing a private cause
7of action.

8The General Assembly finds that:

9(1) Employers in this Commonwealth who employ
10unauthorized aliens have systematically distorted the labor
11market of this Commonwealth by reducing wages, adversely
12affecting working conditions, evading taxes and reducing the
13number of jobs available to those who are lawfully entitled
14to employment in this Commonwealth.

15(2) The United States has established and maintains a
16national program for the electronic verification of work
17authorization, the Basic Pilot Program, which enables
18employers to promptly and accurately verify the employment
19eligibility of all job applicants.

20(3) It is in the best interests of and will serve and

1benefit the health, safety and welfare of the public and law-
2abiding business entities to adopt policies and procedures to
3deter and prevent the employment of unauthorized aliens.

4(4) The Federal Government expressly permits state
5governments to sanction the employers of unauthorized aliens
6through licensing and other similar restrictions.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Short title.

10This act shall be known and may be cited as the Fair
11Employment Act.

12Section 2. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Basic Pilot Program." The electronic verification of work 
17authorization program of the Illegal Immigration Reform and 
18Immigrant Responsibility Act of 1996 (Public Law 104-208, 110 
19Stat. 3009-546), which is operated by the Department of Homeland 
20Security.

21"Business entity." An individual, corporation, partnership, 
22limited liability company or other legal entity, whether for 
23profit or not for profit, who has applied for, holds or benefits 
24from any registration.

25"Contractor." A person, employer or business entity that 
26enters into an agreement to perform any service or work or to 
27provide a certain product in exchange for valuable 
28consideration.

29"Employee." A person performing or applying for work or 
30service of any kind or character for hire.

1"Employer." A business entity that employs or seeks to 
2employ a person for hire. If there are two or more putative 
3employers, the business entity taking a business tax deduction 
4for the employee in question shall be considered the employer of 
5that person for the purposes of this act.

6"Employment." The act of employing or of being employed, 
7engaged or hired.

8"Government entity." The Commonwealth or any of its 
9political subdivisions. The term includes any agency, authority, 
10board or commission of the Commonwealth or any of its political 
11subdivisions.

12"Registration." Any license, permit, registration or 
13certificate granted or provided by a government entity.

14"Unauthorized alien." An alien who does not have the legal 
15right or authorization under Federal law to work in the United 
16States.

17"Work." A job, task, employment, labor, personal service or 
18any other activity for which compensation is provided, expected 
19or due, including activities conducted by business entities.

20Section 3. Prohibitions.

21(a) Employment.--It is unlawful for any employer to employ,
22or employer or business entity to permit the employment of, an
23unauthorized alien.

24(b) Affirmation for initial registration.--As a condition
25for initial registration, a business entity shall provide to the
26government entity:

27(1) an affidavit that the business entity is not an
28employer; or

29(2) an affidavit affirming that the business entity does
30not knowingly employ any person who is an unauthorized alien

1as well as an affidavit and supporting documentation that the
2business entity has enrolled and is an active participant in
3the Basic Pilot Program.

4(c) Affirmation for continued registration.--As a condition
5of the periodic renewal of a registration, a business entity
6shall comply with subsection (b) as if applying for initial
7registration.

8(d) Change of status.--A business entity that complied with
9subsection (b)(1) as a condition of any initial registration
10under subsection (b) or continued registration under subsection
11(c) and, during that registration becomes an employer, shall
12comply with subsection (b)(2).

13(e) Awards.--As a condition for the award of any
14Commonwealth contract or grant to an employer for which the
15value of employment, labor or personal service shall exceed
16$10,000, the employer shall provide documentation affirming its
17enrollment and participation in the Basic Pilot Program.

18(f) Government entities.--All government entities shall
19enroll and actively participate in the Basic Pilot Program.

20(g) Verification.--An employer participating in the Basic
21Pilot Program shall verify the employment eligibility of every
22employee in the employer's hire whose employment commences after
23the employer enrolls in the Basic Pilot Program.

24(h) Tax deduction.--Compensation, whether in money or in
25kind or in services, provided to any unauthorized alien shall
26not be allowed as a business expense deduction from any income
27or business tax of the Commonwealth.

28(i) Violations.--Any business entity operating within this
29Commonwealth in violation of this act shall have all
30registrations suspended under subsection (j).

1(j) Enforcement.--The Secretary of State shall enforce the
2requirements of this section. The following apply:

3(1) An enforcement action shall be initiated by means of
4a written, signed complaint to the secretary's office
5submitted by any government entity, business entity or
6resident. A valid complaint shall include an allegation that
7describes the alleged violator as well as the actions
8constituting the violation and the date and location where
9the actions occurred.

10(2) A complaint that alleges a violation on the basis of
11national origin, ethnicity or race shall be deemed invalid
12and shall not be enforced.

13(3) Upon receipt of a valid complaint, the secretary
14shall, within three business days, request information from
15the business entity that is the subject of the complaint,
16which may include any of the following:

17(i) Copies of any information provided to a
18government entity under subsection (b), (c) or (d).

19(ii) Identity information concerning any employees
20alleged to be unauthorized aliens.

21(iii) Verification of the work authorization of
22aliens provided to the employer through the Basic Pilot
23Program.

24(4) The secretary shall submit identity data required by
25the Federal Government to verify, pursuant to the Illegal
26Immigration Reform and Immigrant Responsibility Act of 1996
27(Public Law 104-208, 110 Stat. 3009-546), the immigration
28status and work authorization of employees alleged to be
29unauthorized aliens and shall provide the employer with
30written confirmation of that verification.

1(5) The secretary shall order all government entities to
2suspend the registration of any business entity that the
3secretary finds in violation of this act or that fails to
4correct a violation of this act.

5(6) The correction of a violation with respect to the
6employment of an unauthorized alien shall include any of the
7following actions:

8(i) The employer terminates the unauthorized alien's
9employment.

10(ii) The employer, after acquiring additional
11information from the employee, requests a secondary or
12additional verification by the Federal Government of the
13employee's authorization under the procedures of the
14Basic Pilot Program. While this verification is pending,
15any enforcement action shall be tolled.

16(iii) The employer attempts to terminate the
17unlawful worker's employment and the termination is
18challenged in a court of this Commonwealth. While the
19employer pursues the termination of the unauthorized
20alien's employment in such forum, any enforcement action
21shall be tolled.

22(7) A general contractor shall not be in violation of
23this act with respect to any alleged unauthorized alien
24employed by a subcontractor or independent contractor hired
25by the general contractor if, prior to the alleged violation,
26the general contractor verified that the subcontractor or
27independent contractor was enrolled in the Basic Pilot
28Program by requiring the subcontractor or independent
29contractor to show documentary evidence of such enrollment
30provided by the Federal Government.

1(8) A first suspension under this section shall
2terminate one business day after a legal representative of
3the business entity submits, at an office designated by the
4secretary, all of the following:

5(i) Documentation acceptable to the secretary which
6confirms that the business entity has enrolled in and is
7participating in the Basic Pilot Program.

8(ii) A sworn affidavit stating that the violation
9has ended. The affidavit shall include a description of
10the specific measures and actions taken by the business
11entity to end the violation and shall, if applicable,
12include the name, address and other adequate identifying
13information for any unauthorized aliens related to the
14complaint.

15(9) For a second or subsequent violation, the secretary
16shall order all government entities to suspend the
17registration of any business entity for a minimum period of
1890 days. After the end of the suspension period, and upon
19receipt of the prescribed affidavit and documentation, the
20secretary shall order all government entities to reinstate
21the registration of any business entity. The secretary shall
22forward the affidavit, complaint and associated documents to
23the Bureau of Immigration and Customs Enforcement of the
24Department of Homeland Security.

25(10) This section shall be subject to 2 Pa.C.S. Chs. 5 
26Subch. A (relating to practice and procedure of Commonwealth 
27agencies) and 7 Subch. A (relating to judicial review of 
28Commonwealth agency action).

29(k) State funding.--Any government entity that fails to
30comply with this section and the directives from the secretary

1regarding the failure of any business entity to enroll in the
2Basic Pilot Program shall be ineligible for State funding.

3(l) Procedure.--This act shall not be construed to deny any
4procedural mechanisms included in the Basic Pilot Program.

5(m) Federal determination.--

6(1) A determination of whether an employee is an
7unauthorized alien made by the Federal Government under the
8Illegal Immigration Reform and Immigrant Responsibility Act
9of 1996 shall create a rebuttable presumption as to that
10employee's status in any judicial proceedings brought
11pursuant to this act.

12(2) The court may take judicial notice of any
13verification of the employee previously provided by the
14Federal Government and may request the Federal Government to
15provide automated or testimonial verification under the
16Illegal Immigration Reform and Immigrant Responsibility Act
17of 1996.

18Section 4. Ordinances.

19A political subdivision of this Commonwealth may:

20(1) Enact an ordinance prohibiting the employment of
21unauthorized aliens or other unlawful workers.

22(2) Deny a registration to an employer who employs
23unauthorized aliens.

24(3) Enact an ordinance restricting the rental of housing
25to an alien unlawfully present in the United States.

26Section 5. Construction.

27This act shall be construed so as to be fully consistent with
28Federal immigration and labor laws.

29Section 20. Severability.

30The provisions of this act are severable. If any provision of

1this act or its application to any person or circumstance is
2held invalid, the invalidity shall not affect other provisions
3or applications of this act which can be given effect without
4the invalid provision or application.

5Section 21. Effective date.

6This act shall take effect in 60 days.