Bill Text: PA SB1149 | 2009-2010 | Regular Session | Introduced

---

Bill Title: In contracts for public works, providing for verification of the Social Security numbers of all employees for purposes of wage reporting and employment eligibility; prescribing penalties; and establishing good faith immunity under certain circumstances.

Spectrum: Moderate Partisan Bill (Republican 7-2)

Status: (Introduced - Dead) 2009-12-14 - Referred to STATE GOVERNMENT [SB1149 Detail]

Download: Pennsylvania-2009-SB1149-Introduced.html

---

PRINTER'S NO. 1530
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1149 Session of2009
INTRODUCED BY WARD, SCARNATI, WAUGH, RAFFERTY, FONTANA, ORIE, BOSCOLA AND PIPPY, DECEMBER 14, 2009
REFERRED TO STATE GOVERNMENT, DECEMBER 14, 2009
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, in contracts for public works, providing for
verification of the Social Security numbers of all employees
for purposes of wage reporting and employment eligibility;
prescribing penalties; and establishing good faith immunity
under certain circumstances.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Chapter 39 of Title 62 of the Pennsylvania
Consolidated Statutes is amended by adding a subchapter to read:
SUBCHAPTER F
EMPLOYMENT VERIFICATION
Sec.
3951. Scope of subchapter.
3952. Definitions.
3953. Verification.
3954. Violations.
3955. Enforcement and sanctions.
3956. Protection from retaliation.
3957. Good faith immunity.
§ 3951. Scope of subchapter.
This subchapter relates to verification of employment on
certain public works projects.
§ 3952. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Employee." An individual for whom a public works contractor
is required by law to file a Form W-2 with the Internal Revenue
Service.
"EVP." The E-Verify Program operated by the Department of
Homeland Security.
"INA." The Immigration and Nationality Act (66 Stat. 163, 8
U.S.C. § 1101 et seq.).
"NVS." The Social Security Number Verification Service
operated by the Social Security Administration.
"Public work." As defined in section 2 of the act of August
15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing
Wage Act.
"Public works contractor." A contractor that provides goods
or services under a contract involving a public works project.
"Public works project." A project involving a public work.
"Secretary." The Secretary of Labor and Industry of the
Commonwealth.
"Subcontractor." A person, other than a natural person,
regardless of its tier, including, but not limited to, a
staffing agency, that performs work for a public works
contractor under a contract for a public work.
"Willful." Action or conduct undertaken intentionally or
with reckless disregard for or deliberate ignorance of the
20090SB1149PN1530 - 2 -
requirements and obligations established by this subchapter.
§ 3953. Verification.
(a) General rule.--As a precondition of being awarded a
contract for a public work, and prior to the execution of the
contract, a public works contractor shall provide the
Commonwealth agency with which the contract will be made a
verification statement in which it shall represent the
following:
(1) The public works contractor has verified the Social
Security numbers of all of its then-existing employees for
wage reporting purposes through NVS in accordance with
Federal law governing the use of NVS.
(2) The public works contractor will verify the Social
Security number of a new employee for employment eligibility
purposes prior to the commencement of work by the new
employee through EVP in accordance with Federal law governing
the use of EVP.
(3) The public works contractor will provide the
Commonwealth agency with the verification statement required
under subsection (b) from each subcontractor it uses or
intends to use on the public works project prior to the
commencement of any work by the subcontractor on the public
works project.
(b) Subcontractor verification statements.--Prior to the
execution of a subcontract with a public works contractor, a
subcontractor shall provide the public works contractor with a
verification statement containing substantially the same
information about the subcontractor as required under subsection
(a) about the public works contractor. The subcontractor shall
submit the verification statement to the contractor prior to the
20090SB1149PN1530 - 3 -
commencement of any work by the subcontractor on the public
works project.
(c) All verification statements.--The verification statement
required by this section shall be on a form prescribed by the
secretary and shall comply with the following additional
requirements:
(1) The statement shall include a certification that the
information in the statement is true and correct and that the
person signing the statement understands that the submission
of false or misleading information in connection with the
verification shall subject the person and the public works
contractor or subcontractor, as the case may be, to sanctions
provided by law.
(2) The statement shall be signed by a representative of
the public works contractor or subcontractor, as applicable,
who has sufficient knowledge and authority to make the
representations and certifications contained in the
statement.
(d) Discrimination prohibited.--In conducting the Social
Security number verification required by this section, a public
works contractor or its subcontractor shall not discriminate
against any employee on the basis of race, ethnicity, color or
national origin.
§ 3954. Violations.
The following shall constitute a violation of this
subchapter:
(1) Employment by a public works contractor or
subcontractor of an employee whose Social Security number has
not been verified by the NVS or EVP as required by this
subchapter.
20090SB1149PN1530 - 4 -
(2) Use by a public works contractor of a subcontractor
on a public works project prior to the submission by the
subcontractor of a verification statement required by this
subchapter.
(3) Commencement of work by a subcontractor on a public
works project prior to submitting to the public works
contractor a verification statement required by this
subchapter.
(4) Making a false statement or misrepresentation in a
verification statement required by this subchapter.
§ 3955. Enforcement and sanctions.
(a) General rule.--The secretary shall enforce the
provisions of this subchapter.
(b) Investigation of complaints.--The secretary shall
accept, review and investigate in a timely manner any credible
complaint that a public works contractor or subcontractor has
violated a provision of this subchapter.
(c) Audits.--To ensure compliance with the requirements of
this subchapter, the secretary shall conduct complaint-based and
random audits of public works contractors and subcontractors in
this Commonwealth. In conducting such audits, the secretary
shall utilize NVS and EVP to verify the Social Security numbers
of employees for wage reporting purposes and employment
eligibility, as appropriate, in accordance with Federal law
governing the use of NVS and EVP.
(d) Sanctions.--The following sanctions shall apply to
violations of section 724A of INA or of this act:
(1) A public works contractor or subcontractor that
violates section 724A of INA or engages in violations
described in section 3954(1), (2) or (3) (relating to
20090SB1149PN1530 - 5 -
violations):
(i) At the discretion of the secretary, may be
subject to debarment under section 531 (relating to
debarment or suspension) for a period of up to three
years.
(ii) At the discretion of the Commonwealth agency
with whom the public works contractor has contracted, may
be subject to termination of the contract by the
Commonwealth agency without recourse against or penalty
to the Commonwealth agency. The right of the Commonwealth
agency to terminate the contract under this subparagraph
may not be waived.
(iii) At the discretion of the public works
contractor with whom the subcontractor has contracted,
may be subject to termination of the subcontract by the
public works contractor without recourse against or
penalty to the public works contractor. The right of the
public works contractor to terminate the subcontract
under this subparagraph may not be waived.
(2) A public works contractor or subcontractor that
willfully violates section 724A of INA or willfully engages
in violations described in section 3954(1), (2) or (3):
(i) Shall be subject to debarment under section 531
for three years.
(ii) At the discretion of the Commonwealth agency
with which the public works contractor has contracted,
may be subject to termination of the contract by the
Commonwealth agency without recourse against or penalty
to the Commonwealth agency. The right of the Commonwealth
agency to terminate the contract under this subparagraph
20090SB1149PN1530 - 6 -
may not be waived.
(iii) At the discretion of the public works
contractor with whom the subcontractor has contracted,
may be subject to termination of the subcontract by the
public works contractor without recourse against or
penalty to the public works contractor. The right of the
public works contractor to terminate the subcontract
under this subparagraph may not be waived.
§ 3956. Protection from retaliation.
(a) General rule.--It shall be unlawful for a public works
contractor or subcontractor to discharge, threaten or otherwise
retaliate or discriminate against an employee regarding
compensation or other terms or conditions of employment because
the employee:
(1) participates in an investigation, hearing or inquiry
held by the secretary or any other governmental authority
under this subchapter; or
(2) reports or makes a complaint regarding the violation
of this subchapter to a public works contractor,
subcontractor or governmental authority.
(b) Actions.--
(1) Any employee who suffers retaliation or
discrimination in violation of this section may bring an
action in a court of common pleas in accordance with
established civil procedures of this Commonwealth.
(2) The action must be brought within three years from
the date the employee knew of the retaliation or
discrimination.
(c) Relief.--If an employee prevails in an action commenced
under this section, the employee shall be entitled to the
20090SB1149PN1530 - 7 -
following relief:
(1) Reinstatement of the employee, if applicable.
(2) Restitution equal to three times the amount of the
employee's wages and fringe benefits calculated from the date
of the violation or discrimination.
(3) Reasonable attorney fees and costs of the action.
(4) Any other legal and equitable relief as the court
deems appropriate.
§ 3957. Good faith immunity.
A public works contractor or subcontractor that relies in
good faith on NVS and EVP procedures to verify the Social
Security numbers of employees shall be immune from the sanctions
authorized under section 3955 (relating to enforcement and
sanctions) in the event that incorrect information has been
provided to the public works contractor or subcontractor.
Section 2. This act shall take effect in 60 days.
20090SB1149PN1530 - 8 -