First Extraordinary Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06B-2025.01 Kristen Forrestal HOUSE BILL 06S-1007 HOUSE SPONSORSHIP Schultheis, Liston, Lundberg, and Rose SENATE SPONSORSHIP Lamborn, and Johnson House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the requirement that an employer apply to participate in the extended federal basic employment verification pilot program for the purpose of determining the work eligibility status of employees, and, in connection therewith, requiring an employer to retain and submit records to the department of labor and employment that indicate that the employer has applied to participate in the program. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Requires all employers within the state to apply to participate in the extended federal basic employment verification pilot program (program) and to participate when accepted. Imposes a fine against an employer that does not apply to participate in the program or that submits false or fraudulent documents to the department of labor and employment (department) stating that the employer has applied to participate in the program. Requires the department to put a mechanism in place to inform employers of the requirement to apply for participation and how to comply and to post this information on the department's website. Requires an employer to terminate the employment of an employee upon a final determination pursuant to the program that the employee is not eligible to work. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Part 1 of article 2 of title 8, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read: 8-2-122. Employee's work eligibility status - legislative declaration - definitions - federal basic employment verification pilot program - department of labor and employment - duties. (1) The general assembly hereby finds and determines that ensuring that Colorado employers employ only persons eligible to work within Colorado is an issue of statewide concern. The general assembly further finds that it is in the best interest of the citizens of Colorado for all employers to verify the social security numbers and work eligibility status of employees. Therefore, it is important that every employer in the state of Colorado participate in the extended federal basic employment verification pilot program for the purpose of verifying the work eligibility status of future employees. Further, it is important that each employer continue to regularly apply to participate in the program until accepted. (2) As used in this section, unless the context otherwise requires: (a) "Employer" means a person or entity transacting business in Colorado who, at any time, employs another person to perform services of any nature and who has control of the payment of wages for the services or is the officer, agent, or employee of the person having control of the payment of wages; except that "employer" does not include the federal government, the state of Colorado, another state, or a political subdivision of Colorado or another state. (b) "Program" means the basic employment verification pilot program created pursuant to 8 U.S.C. sec. 1324a, as expanded to include all fifty states in the "Basic Pilot Program Extension and Expansion Act of 2003", P.L. No. 108-156, or a successor or similar program operated by the United States department of homeland security to verify information of newly hired employees. (3) (a) Each employer in the state of Colorado, unless prohibited from participation pursuant to the program, shall apply to participate in the program for the purpose of verifying the work eligibility status of each of the employer's employees by the following dates: (I) An employer with two hundred or more employees shall apply to participate in the program no later than January 1, 2007; (II) An employer with at least fifty employees but fewer than two hundred employees shall apply to participate in the program no later than January 1, 2008; and (III) An employer with fewer than fifty employees shall apply to participate in the program no later than January 1, 2009. (b) An employer shall submit an application to participate in the program each month until the employer is accepted into the program. An employer that is accepted into the program shall participate in the program to verify the employment status of each new employee within three days after the employee is hired. An employer shall retain records that show that the employer has applied to the program and, if accepted, show that the employer is an active participant in the program. (c) An employer shall notify each prospective employee that the employer is an active participant in the program or is applying to become an active participant in the program. (d) Upon request of the director of the division of labor in the department of labor and employment, an employer shall submit the records required to be retained pursuant to paragraph (b) of this subsection (3). Upon receipt of a valid complaint that an employer has not complied with this section, the director shall request the submission of the records. The director shall levy a fine against an employer pursuant to the following schedule for each calendar month for which the employer fails to submit the records or if the employer submits false or fraudulent records to the department indicating that the employer has applied to participate in the program: Number of employees 1st offense 2nd offense 3rd offense 1-49 $1,000 $ 5,000 $10,000 50-99 $2,500 $ 7,500 $15,000 100 or more $5,000 $15,000 $20,000 (4) The employer shall immediately terminate the employment of an employee upon receipt of a final notice of nonconfirmation of work eligibility concerning the employee. (5) The department of labor and employment shall notify each employer of the requirements of this section and how to comply and shall make the information available on the department's website. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.