SB40 Summary

• State contractors must provide written certification that they will not knowingly employ unauthorized aliens as a condition of entering into or renewing competitively bid contracts or contracts subject to Joint Legislative Contract Review Oversight Committee review.

• Contractors proven with clear and convincing evidence to have employed unauthorized aliens despite certification must pay a civil penalty equal to 3 percent of the contract value, with a maximum penalty of 3 percent per contract.

• Compliance with federal employment verification requirements under 8 U.S.C. § 1324a(b) creates an irrebuttable presumption that a contractor did not have actual knowledge of an employee's unauthorized status, unless the contractor learned of unauthorized status after hiring and failed to terminate within a reasonable time.

• Contractors who receive written compliance certification from subcontractors are not vicariously liable for subcontractor violations; the act preempts local and municipal ordinances on this subject.

• Contractors complying in good faith are protected from civil or administrative action for employing unauthorized aliens, and the act does not create private rights of action against employers.