HB302ENGROSSED
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HB302
MSSP3WW-2
By Representatives Robbins, Fidler, Marques, Sorrells, Brown,
Kiel, Colvin, Ross
RFD: Judiciary
First Read: 18-Feb-25
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First Read: 18-Feb-25
A BILL
TO BE ENTITLED
AN ACT
Relating to immigration; to amend Section 25-11-5, Code
of Alabama 1975, to further provide for the directory of new
hires maintained by the Department of Workforce; to add
Article 2 to Chapter 11, Title 25, Code of Alabama 1975, to be
known as the Alabama Foreign Worker Transparency Act, to
require labor brokers that recruit or hire foreign workers for
eventual job placement in this state to register with the
Department of Workforce; to impose reporting requirements on
labor brokers and charitable organizations that provide
financial support to foreign workers; to authorize the
Secretary of Workforce to investigate labor brokers and
charitable organizations for certain violations; to provide
civil penalties for violations; to provide a criminal penalty
for violations; to authorize departments and agencies that
administer public benefits to require disclosure of the
financial sponsor when a lawful alien applies for benefits; to
require reimbursement from a sponsor in case the lawful alien
receives public benefits in place of support promised by the
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receives public benefits in place of support promised by the
sponsor; to authorize a civil action by the Attorney General
to enforce collection of reimbursement; and to provide
authority for the Secretary of State to dissolve a domestic
entity or to revoke the registration of a foreign entity; and
to amend Section 31-13-9, Code of Alabama 1975, to specify
that employers may lose public incentives for hiring an
unauthorized alien.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 25-11-1 through 25-11-17 of Chapter
11 of Title 25, Code of Alabama 1975, are designated as
Article 1.
Section 2. Section 25-11-5, Code of Alabama 1975, is
amended to read as follows:
"§25-11-5
(a) An employer shall report to the department, within
seven days of hiring, each new hire, recall, or rehire. The
information to be reported shall include the name, address,
Social Security number or United States Citizenship and
Immigration Services (USCIS) number , and date of hire of each
newly hired, recalled, or rehired individual and the name,
address, and state and federal identification numbers of the
employer. The information shall be reported on forms supplied
by the department or by such other method as approved by the
secretary. Notwithstanding the foregoing, employers may
transmit reports to the department magnetically or
electronically twice a month, not less than 12 days nor more
than 16 days apart, when required.
(b) The department shall enter into the State Directory
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(b) The department shall enter into the State Directory
of New Hires the information received from an employer within
five days of receipt.
(c) The department shall provide this information to
the Department of Human Resources in a timely manner as agreed
upon by the secretary and the commissioner, for purposes of
identifying individuals with outstanding legal child support
obligations.
(d) Upon entry into the State Directory of New Hires,
the department shall have two days to cross-match the new hire
information to identify individuals receiving unemployment
compensation or workers' compensation benefits.
(e) Within three days of entry into the State Directory
of New Hires, the department shall forward the new hire,
recall, and rehire information to the Federal Department of
Health and Human Services for inclusion in the National
Directory of New Hires."
Section 3. Article 2, commencing with Section 25-11-30,
is added to Chapter 11 of Title 25, Code of Alabama 1975, to
read as follows:
Article 2.
§25-11-30
This article shall be known and may be cited as the
Alabama Foreign Worker Transparency Act.
§25-11-31
The Legislature finds the following:
(1) Significant numbers of foreign nationals are being
settled in Alabama communities to fill positions in plants,
businesses, or seasonal jobs through worker supply chains that
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businesses, or seasonal jobs through worker supply chains that
may include labor brokers and individuals or entities that
have pledged to provide housing and financial support.
(2) These foreign workers are by and large lawfully
present in the United States pursuant to a variety of federal
temporary parole programs or due to asylum.
(3) Lack of reliable information concerning the
processes by which foreign workers and their dependents arrive
in Alabama can foment an atmosphere of mistrust between
citizens, elected officials, foreign workers, and employers.
(4) Settlement services and other assistance provided
to foreign workers and their dependents by charitable
organizations is also significant to the placement of foreign
workers in the United States, exerting significant influence
on our communities, economy, and workforce.
(5) Without burdening lawfully operating businesses,
employers, temporary employment agencies, employment agencies,
or professional employer organizations, it is imperative that
the pathways by which foreign nationals are recruited to work
in Alabama communities, and the collaborative roles of labor
brokers, nongovernmental organizations, and sponsors in these
processes be made transparent, with an orderly means to gather
reliable information and data on the foreign segment of our
workforce.
§25-11-32
As used in this article, the following words have the
following meanings:
(1) ASSOCIATED AUTHORIZED ALIEN. An authorized alien as
defined in Section 4 of the act adding this section who meets
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defined in Section 4 of the act adding this section who meets
both of the following requirements:
a. Is a dependent of, is a member of the same household
as, or otherwise accompanies a foreign worker.
b. Has not been granted an Employment Authorization
Document or is not applying for employment authorization.
(2) BONA FIDE EMPLOYMENT SERVICE PROVIDER. Any
temporary staffing agency, including an employment agency
licensed pursuant to Chapter 10 of Title 34 or a professional
employer organization regulated pursuant to Chapter 14 under
this title, which performs all of the following:
a. Files federal and state employment tax returns for
their temporary worker employees.
b. Provides workers' compensation coverage for their
temporary worker employees pursuant to Chapter 5.
c. Participates as an enrollee in E-Verify pursuant to
Section 31-13-15.
(3) CHARITABLE ORGANIZATION. An entity which holds
itself out as providing benevolent, philanthropic, or
humanitarian aid or services, and which may perform activities
that include education or advocacy to influence law and
government policy. The term includes those entities known as
nongovernmental organizations and charities affiliated with
churches or other religious groups.
(4) DEPARTMENT. The Alabama Department of Workforce.
(5) DHS. The United States Department of Homeland
Security, including any of its components such as U.S.
Citizenship and Immigration Services.
(6) ENTITY. Any individual or group of individuals
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(6) ENTITY. Any individual or group of individuals
employing or contracting with one or more individuals to
perform or engage in any activity, enterprise, profession,
occupation for gain, benefit, advantage, livelihood, or
charitable activity, whether for profit or not for profit, and
including, but not limited to, the following:
a. Self-employed individuals, business entities filing
articles of incorporation, partnerships, limited partnerships,
limited liability companies, either domestic or foreign and
authorized to transact business in this state, business
trusts, and any entity that is required to register with the
Secretary of State.
b. Any entity that possesses a business license,
permit, certificate, approval, registration, charter, or
similar form of authorization issued by the state; any entity
that is exempt by law from obtaining a business license; and
any entity that is operating unlawfully without a business
license.
(7) FOREIGN WORKER. An authorized alien as defined in
Section 4 of the act adding this section who has been granted
an Employment Authorization Document.
(8) LABOR BROKER. a. Any entity that recruits or hires,
or expects to recruit or hire, six or more foreign workers
during a calendar year for the purpose of supplying the
foreign workers to a third-party client, in exchange for
consideration, for job placement in the state. A labor broker
may also provide settlement services to foreign workers or
associated authorized aliens.
b. The term does not include a bona fide employment
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b. The term does not include a bona fide employment
service provider, governmental department, agency, or a
political subdivision of the state, including a public
institution of higher education.
(9) SECRETARY. The Secretary of Workforce.
(10) SETTLEMENT SERVICES. Those services rendered on
behalf of a foreign worker or an associated authorized alien
including, but not limited to, any of the following:
a. Relocation from outside of the United States or from
another location within the United States to a community at or
near a worksite employer.
b. Application to DHS for approval of status as an
authorized alien as defined in Section 4 of the act adding
this section, including receipt of an Employment Authorization
Document.
c. Application to DHS to serve as a sponsor.
d. Arrangement or provision of housing at or near the
worksite employer.
e. Arrangement or provision of other services or
support, including, but not limited to, translating, access to
state and local public benefits and social services, driver
license, Social Security card, transportation, banking, health
care, school enrollment, visa application, clothing, household
essentials, or any other support.
(11) SPONSOR. The term includes the following:
a. When used as a noun, the same meaning as defined in
Section 4 of the act adding this section.
b. When used as a verb, to act as a sponsor within the
meaning defined in Section 4 of the act adding this section.
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meaning defined in Section 4 of the act adding this section.
(12) SPONSORSHIP. The status of being a sponsor as
defined in Section 4 of the act adding this section.
(13) STATE. The State of Alabama.
(14) THIRD-PARTY CLIENT. Any entity that contracts with
or gives consideration to a labor broker to obtain foreign
employment workers for job placement. The term may include a
bona fide service provider or worksite employer.
(15) WORKSITE EMPLOYER. The entity that supervises,
directs, or controls the daily or regular tasks performed by a
foreign worker at a job location, or the entity for which the
foreign worker performs services on a daily or regular basis
at a job location. The term includes, but is not limited to, a
plant, farm, factory, production or processing facility,
building site, office, retail or service outlet, vehicle or
equipment fleet, garage or repair facility, service route, or
other location in the state.
§25-11-33
(a) Beginning October 1, 2025, no entity may perform
the services of a labor broker in this state, as defined in
this article, unless the entity registers on an annual basis
with the department.
(b) Each entity subject to the registration requirement
shall file with the department a completed registration form
that shall include the following information:
(1) The names under which the entity conducts business.
(2) The address of the principal place of business of
the entity and the address of each office or location it
maintains in the state.
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maintains in the state.
(3) The entity's taxpayer or employer identification
number.
(4) A list by jurisdiction of each name under which the
entity has operated in the preceding five years, including any
alternative names and names of predecessor entities.
(5) The names of all individuals or entities who own,
directly or indirectly, any equity interest in the registering
entity, unless the registering entity distributes shares of
ownership to the public.
(6) Disclosure of any conviction in any jurisdiction
for any crime of moral turpitude as defined in Section
34-13-1, or human trafficking, committed by an individual who
is an employee or a contractor who performs work for the
entity.
(7) If the registrant is a foreign entity, the name and
location of the individual or entity's registered agent in the
state.
(c) The information required under subsection (b) shall
be submitted to the department under oath with the notarized
signature of an officer or principal of the entity.
(d) If the information submitted to the department
discloses that an employee or a contractor who performs
services for the entity has been convicted for a crime as
described in subdivision (b)(6), and the employee or
contractor is located in the state, the entity shall be
ineligible to perform the services of a labor broker in this
state while the entity retains the individual as an employee
or contractor.
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or contractor.
(e) The department shall adopt rules establishing the
following:
(1) The registration fee and any filing fees in amounts
that are sufficient for the department to administer this
article.
(2) Additional information required by the registration
form and provisions for supplementing or revising registration
information, as is necessary to administer this article.
§25-11-34
A labor broker subject to the registration requirement
of Section 25-11-33 shall submit to the department, on an
annual basis, a report that contains the following information
with respect to each foreign worker referred or supplied to a
third-party client:
(1) The name of the foreign worker and the nation of
origin.
(2) The location within or outside the United States at
which the labor broker first established contact with the
foreign worker.
(3) The identity of the third-party client in the state
to which the foreign worker was referred, delegated, or
supplied.
§25-11-35
(a) Beginning October 1, 2025, a labor broker subject
to the registration requirement of Section 25-11-33 or a
charitable organization that is a sponsor shall comply with
the requirements of this section.
(b)(1) A labor broker or charitable organization shall
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(b)(1) A labor broker or charitable organization shall
submit to the department, for each foreign worker and each
associated authorized alien it sponsors, copies of: (i) the
declaration or affidavit of support submitted to DHS; and (ii)
approval by DHS of sponsor status.
(2) The information required in subdivision (1) shall
be submitted to the department no later than 30 days after
receiving approval from DHS of sponsor status.
(3) If the place of residence of the foreign worker or
associated authorized alien under sponsorship changes from the
residence as shown in the declaration or affidavit of support,
the labor broker or charitable organization is under a
continuous duty for the duration of the sponsorship to notify
the department of the change in address.
(c) Any labor broker or charitable organization that
arranges for, or refers, a foreign worker or any associated
authorized alien to any individual or other entity for
sponsorship shall submit to the department, on an annual
basis, all of the following information:
(1) The name of the foreign worker or associated
authorized alien for whom the proposed sponsorship was
arranged or the referral was made.
(2) In the case of an individual to provide
sponsorship, the individual's residential address and
available contact information.
(3) In the case of an entity to provide sponsorship,
the address of the location of operation and available contact
information.
§25-11-36
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§25-11-36
A labor broker that recruits or hires a foreign worker
for supply to a third-party client in this state shall confirm
the identity of the foreign worker and the foreign worker's
employment authorization status with E-Verify pursuant to
Section 31-13-15, unless the labor broker is the entity
assisting the foreign worker to obtain an employment
authorization document from DHS.
§25-11-37
(a) There is established a foreign worker resource
database, to comprise the information for registration,
reporting, or submission to the department required by this
article and Section 31-13-15, to be cross-matched by an
individual and entity, regardless of status as a foreign
worker, associated authorized alien, labor broker, charitable
organization, third-party client, or sponsor.
(b) The department shall implement and maintain the
database.
(c) Information from the database may be shared on
request with DHS, other departments and agencies of the state,
and any political subdivision of the state.
§25-11-38
(a) The registration and reporting requirements of this
article, and the civil and criminal penalties provided herein,
shall not be construed to govern or apply to any third-party
client, bona fide employment service provider, or worksite
employer.
(b) This article shall not be construed to supersede
the Beason-Hammon Alabama Taxpayer and Citizen Protection Act,
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the Beason-Hammon Alabama Taxpayer and Citizen Protection Act,
Chapter 13, Title 31, and the defenses provided to employers
that terminate employees discovered to be unauthorized aliens
if the employers are in compliance with E-Verify and other
employment laws.
§25-11-39
(a) The department may impose the following penalties
for noncompliance with this article:
(1) For failure to register or failure to renew
registration as required pursuant to Section 25-11-33, an
administrative fine of no more than five hundred dollars
($500).
(2) For each separate failure to submit any information
as required by Sections 25-11-34 through 25-11-36, an
administrative fine of not less than two hundred fifty dollars
($250) nor more than five hundred dollars ($500).
(b)(1) The secretary may investigate, audit, or review
any labor broker or charitable organization when there is a
reasonable basis to suspect that any of the same may be liable
for any of the following violations of this article:
a. Submission by a labor broker or charitable
organization of information to the department required under
this article that is materially false, including any
intentional omission in a facially complete report or
submission.
b. Retention by a labor broker of an employee or
contractor who is located in this state and who has been
convicted of a crime of moral turpitude or human trafficking
as described in Section 25-11-33.
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as described in Section 25-11-33.
c. Deduction by a labor broker of an amount greater
than 15 percent from the wage or other compensation paid to a
foreign worker, or withholding any higher percentage of the
same, as payment or reimbursement for a settlement service
provided or arranged by a labor broker to a foreign worker or
any associated authorized alien, or for any other reason.
(2) The secretary may impose a civil fine of not less
than one thousand dollars ($1,000) nor more than five thousand
dollars ($5,000) for each violation in subdivision (1).
(3) The secretary may bring a civil action in the
Circuit Court of Montgomery County or the county in which the
violation under subdivision (1) occurred to permanently enjoin
any entity from engaging in the activities of a labor broker.
(4) The secretary may refer a violation of this article
described in subdivision (1) to the Attorney General for
prosecution as a Class C felony in the Circuit Court of
Montgomery County.
(c) If, during an investigation, audit, or review of a
labor broker, the secretary acquires actual knowledge that
human trafficking may be occurring in violation of Article 8,
Chapter 6, Title 13A, the secretary shall refer the
information to the Attorney General for further investigation.
(d) The secretary may refer any entity that is subject
to the registration and reporting requirements of this article
to the Secretary of State for further enforcement pursuant to
Section 5 of the act adding this section where any of the
following applies:
(1) An entity fails to pay an administrative fine
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(1) An entity fails to pay an administrative fine
provided under subsection (a) within 180 days of its
assessment by the department.
(2) An entity is determined by the secretary to have
committed a violation under subsection (b).
§25-11-40
(a) The Foreign Worker Resource Fund is created as a
special fund in the State Treasury to the credit of the
department.
(b) All registration and other fees adopted by rule to
administer this article, and all administrative and civil
fines collected by the department, shall be deposited into the
fund and shall be budgeted and allotted in accordance with
Article 4 of Chapter 4, and Chapter 19, Title 41.
(c) The department may use monies in the fund for the
administration and enforcement of this article.
§25-11-41
The department shall adopt rules and forms to implement
and administer this article.
Section 4. (a) For the purposes of this section, the
following words have the following meanings:
(1) AUTHORIZED ALIEN. The term includes all of the
following:
a. An alien who is lawfully present in the United
States for a limited period of time on the basis of parole
granted pursuant to a federal law, regulation, order, or
directive.
b. An alien who is lawfully present in the United
States based on asylum or a pending application for asylum
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States based on asylum or a pending application for asylum
pursuant to 8 U.S.C. § 1158 or another federal law,
regulation, order, or directive.
c. An alien who is lawfully present in the United
States on humanitarian grounds based on a federal law,
regulation, order, or directive, including, but not limited
to, visa classifications T and U, and the Special Immigrant
Juvenile Classification.
(2) SPONSOR. Any individual or entity who has been
granted status as a financial supporter of an authorized alien
on an Affidavit of Financial Support, or a similar federal
document submitted to the United States Department of Homeland
Security.
(3) SPONSORSHIP. The status of having a sponsor.
(4) STATE OR LOCAL PUBLIC BENEFIT. Benefits
administered by a department, agency, or political subdivision
of the state that may include, but not be limited to, welfare,
health, disability, public or assisted housing, postsecondary
education, food assistance, or unemployment for which payments
or assistance are provided to an individual, household, or
family eligibility unit as defined in 8 U.S.C. § 1621. The
term includes "any means-tested public benefit" as referred to
in 8 U.S.C. § 1183a.
(b)(1) A state department, agency, or political
subdivision, pursuant to Section 31-13-7, Code of Alabama
1975, shall determine through the Systematic Alien
Verification for Entitlements (SAVE) program whether an alien
who applies for a state or local public benefit is lawfully
present in the United States.
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present in the United States.
(2)a. If the department, agency, or political
subdivision verifies under subdivision (1) that the applicant
is an authorized alien, the department, agency, or political
subdivision shall require the applicant to provide, when
applying for a state or local public benefit, all of the
following:
1. The authorized alien's USCIS (U.S. Citizenship and
Immigration Services) number or Alien Registration Number.
2. If applicable, the identity of the authorized
alien's sponsor, accompanied with a copy of the Declaration of
Financial Support, Affidavit of Financial Support, or similar
federal document submitted by the sponsor of the alien to the
United States Department of Homeland Security.
b. In cases in which the applying authorized alien has
a sponsor, the department, agency, or political subdivision
shall do the following:
1. If the copy of the Declaration of Financial Support,
Affidavit of Financial Support, or similar federal document
indicates that the sponsor has promised to provide financial
or other support to the applicant that is identical to the
state or local public benefit for which the applicant is
applying, the department, agency, or political subdivision may
deny the application unless the applicant affirms in writing
and under oath that the sponsor is not providing the financial
or other support promised, accompanied by the reason for this
failure.
2. If an applying authorized alien is unable to
identify his or her sponsor, or is unable to provide a copy of
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identify his or her sponsor, or is unable to provide a copy of
the Declaration of Financial Support, Affidavit of Financial
Support, or similar federal document, the department, agency,
or political subdivision, as a requirement for considering the
application, shall require that the applicant sign a consent
form for the department, agency, or political subdivision to
make a request under the federal Freedom of Information Act
for a copy of all sponsor documents contained in the
applicant's alien file maintained by the U.S. Citizenship and
Immigration Services component of the United States Department
of Homeland Security.
3. The inability of a department, agency, or political
subdivision to identify the sponsor, or the financial or other
support promised by the sponsor, through the steps provided in
this subdivision, or from information held by another
department or agency of the State of Alabama, shall not bar
approval of a benefit if the applicant otherwise qualifies.
(c)(1) A sponsor shall be liable for reimbursement to a
department, agency, or political subdivision when all of the
following conditions are met:
a. While residing in the state, an authorized alien
receives a state or local public benefit based on an
application made by or on behalf of an authorized alien that
is approved by the department, agency, or political
subdivision that administers the benefit.
b. During at least part of the period in which an
authorized alien receives a state or local public benefit, the
authorized alien is under sponsorship.
c. The state or local public benefit received by the
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c. The state or local public benefit received by the
authorized alien is identical to support, whether cash or in
kind, which the sponsor promises to provide to the authorized
alien as indicated or described in a Declaration of Financial
Support, Affidavit of Financial Support, or similar federal
document that bears the sponsor's electronic or paper
signature.
(2) A sponsor is not liable under this subsection in
any of the following cases:
a. The sponsor promises in the Declaration of Financial
Support, Affidavit of Financial Support, or similar federal
document to assist or arrange for an authorized alien to
obtain a particular state or local public benefit that is
received by the authorized alien.
b. The sponsor is unable to fulfill the promise of
support in the Declaration of Financial Support, Affidavit of
Financial Support, or other similar federal document because
the sponsor loses contact with the authorized alien through no
fault of the sponsor.
c. The authorized alien obtains a state or local public
benefit in a manner unknown to the sponsor while the sponsor
is providing identical support.
(3) A department, agency, or political subdivision may
collect from the sponsor reimbursement for the amount owed for
the state or local public benefit, being either the
outstanding balance expended or a reasonable value of in-kind
benefits, when the conditions in subdivision (1) are met.
(4) If collection efforts by a department, agency, or
political subdivision under subdivision (3) fail to satisfy
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political subdivision under subdivision (3) fail to satisfy
the amount owed by the sponsor, the matter may be referred to
the Attorney General for enforcement.
a. The Attorney General may bring a civil action
against a sponsor in the Circuit Court of Montgomery County or
the circuit court of the county in which the sponsor indicated
the support would be provided to the authorized alien, in
which the Attorney General may pursue any of the following:
1. Recovery of the amount owed for the state or local
public benefit provided to the authorized alien.
2. Recovery of reasonable costs and attorney fees.
3. If the sponsor is a labor broker or charitable
organization as defined in Section 25-11-32, Code of Alabama
1975, an order directing the state, county, or municipal
governing body to revoke all existing business licenses and
permits held by the labor broker or charitable organization
for a period of no less than three years.
b. If the sponsor is a labor broker or charitable
organization as defined in Section 25-11-32, Code of Alabama
1975, the Attorney General may also refer the matter to the
Secretary of State for further enforcement pursuant to Section
5 of the act adding this section.
(5) Collection for reimbursement of a state or local
public benefit from a sponsor under subdivisions (3) and (4)
shall be undertaken consistent with 8 U.S.C. § 1183a and the
underlying regulations in any sponsorship cases that are
governed thereby.
(6) In any case in which the state or local public
benefit to be collected from a sponsor under this subsection
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benefit to be collected from a sponsor under this subsection
includes federal funds disbursed through a department, agent,
or political subdivision of the state, the federal department,
agency, program, or fund shall have a lien on the amount
recovered for the federal portion of the benefit recovered.
(d)(1) Any department, agency, or political subdivision
which administers a state or local public benefit shall
develop forms to comply with the requirements of this section.
(2) Any department, agency, or political subdivision
that is authorized by law to adopt rules may do so to
implement the requirements of this section.
(e) If an authorized alien under sponsorship applies
for and receives a state or local public benefit without the
knowledge of the sponsor while receiving support from the
sponsor which is identical to the state or local public
benefit as attested by the sponsor's Declaration of Financial
Support, Affidavit of Financial Support, or similar federal
document, the sponsor may recover in a civil action from the
authorized alien, the amount or value of support expended,
including reasonable costs and attorney fees.
Section 5. (a) The Secretary of State may commence a
proceeding under Section 10A-1-7.13, Code of Alabama 1975, to
revoke the registration of a foreign entity that is a labor
broker or charitable organization as defined in Section
25-11-32, Code of Alabama 1975, to transact business in this
state upon the occurrence of any of the following:
(1) Referral by the Secretary of Workforce for failure
to pay an administrative fine or a violation pursuant to
Section 25-11-39, Code of Alabama 1975.
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Section 25-11-39, Code of Alabama 1975.
(2) Referral by the Attorney General for failure to
provide support as the sponsor of an authorized alien pursuant
to Section 4 of the act adding this section.
(3) Referral by the Attorney General upon felony
conviction of the foreign entity, or an individual employee or
contractor thereof, for a violation pursuant to Section
25-11-39, Code of Alabama 1975.
(b) The Secretary of State may dissolve an entity that
is a labor broker or charitable organization as defined in
Section 25-11-32, Code of Alabama 1975, and which is organized
under Title 10A, Code of Alabama 1975, upon the occurrence of
any of the following:
(1) Referral by the Secretary of Workforce for failure
to pay an administrative fine or a violation pursuant to
Section 25-11-39, Code of Alabama 1975.
(2) Referral by the Attorney General for failure to
provide support as the sponsor of an authorized alien pursuant
to Section 4 of the act adding this section.
(3) Referral by the Attorney General upon felony
conviction of the domestic entity, or an employee or
contractor thereof, for a violation pursuant to Section
25-11-39, Code of Alabama 1975.
Section 6. Section 31-13-9, Code of Alabama 1975, is
amended to read as follows:
"§31-13-9
(a) As a condition for the award of any contract,
grant, or incentive by the state, any political subdivision
thereof, or any state-funded entity to a business entity or
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thereof, or any state-funded entity to a business entity or
employer that employs one or more employees, the business
entity or employer shall not knowingly employ, hire for
employment, or continue to employ an unauthorized alien within
the State of Alabama.
(b) As a condition for the award of any contract,
grant, or incentive by the state, any political subdivision
thereof, or any state-funded entity to a business entity or
employer that employs one or more employees within the State
of Alabama, the business entity or employer shall provide
documentation establishing that the business entity or
employer is enrolled in the E-Verify program. During the
performance of the contract, the business entity or employer
shall participate in the E-Verify program and shall verify
every employee that is required to be verified according to
the applicable federal rules and regulations.
(c) Any subcontractor on a project paid for by
contract, grant, or incentive by the state, any political
subdivision thereof, or any state-funded entity shall not
knowingly employ, hire for employment, or continue to employ
an unauthorized alien within the State of Alabama and shall
also enroll in the E-Verify program prior to performing any
work on the project. Furthermore, during the performance of
the contract, the subcontractor shall participate in the
E-Verify program and shall verify every employee that is
required to be verified according to the applicable federal
rules and regulations. This subsection shall only apply to
subcontractors performing work on a project subject to the
provisions of this section and not to collateral persons or
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provisions of this section and not to collateral persons or
business entities hired by the subcontractor.
(d)(1) A contractor of any tier shall not be liable
under this section when such contractor contracts with its
direct subcontractor who violates subsection (c) unless it is
shown that the contractor knew or should have known had actual
knowledge that the direct subcontractor was in violation of
subsection (c).
(2) A business entity or employer shall not be liable
under this section when the business entity or employer hires,
retains, or uses the services of an employee supplied by a
labor broker as defined in Section 25-11-32, unless the court
finds that the business entity or employer hired, retained, or
used the services of an employee with actual knowledge that
the labor broker did not verify the employee's employment
authorization status or otherwise help the employee to obtain
employment authorization pursuant to Section 25-11-36.
(e)(1) Upon a finding by a court of competent
jurisdiction of a first violation of subsection (a) by any
business entity or employer , including a subcontractor :
a. The business entity or employer shall be deemed in
breach of contract and the state, political subdivision
thereof, or state-funded entity may terminate the contract
after providing notice and an opportunity to be heard.
b. The court shall do all of the following:
1. Order the business entity or employer to terminate
the employment of every unauthorized alien.
2. Subject the business entity or employer to a
three-year probationary period throughout the state. During
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three-year probationary period throughout the state. During
the probationary period, the business entity or employer shall
file quarterly reports with the Department of LaborWorkforce
of each new employee who is hired by the business entity or
employer in the state.
3. Order the business entity or employer to file,
subject to the penalty of perjury, a signed, sworn affidavit
with the Department of LaborWorkforce within three days after
the order is issued by the court stating that the business
entity or employer has terminated the employment of every
unauthorized alien and the business entity or employer will
not knowingly or intentionally employ an unauthorized alien in
this state.
c.1. If the court determines that the business entity
or employer has a policy or practice that violates this
section, the court shall direct the applicable state, county,
or municipal governing bodies to suspend the business licenses
or permits of the business entity or employer for a period not
to exceed 60 days specific to the location or locations where
the unauthorized alien performed work.
2. Before a business license or permit that has been
suspended under this paragraph is reinstated, a legal
representative of the business entity or employer shall submit
to the court a signed, sworn affidavit stating that the
business entity or employer is in compliance with the
provisions of this subdivision and a copy of the Memorandum of
Understanding issued to the business entity or employer at the
time of enrollment in the E-Verify program.
(2) Upon a finding by a court of competent jurisdiction
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(2) Upon a finding by a court of competent jurisdiction
of a second violation of subsection (a) by a business entity
or employer, including a subcontractor, awarded a contract by
the state, any political subdivision thereof, or any
state-funded entity that occurs within ten10 years of a
finding by a court of competent jurisdiction of a first
violation by the business entity or employer:
a. The business entity or employer shall be deemed in
breach of contract and the state, political subdivision
thereof, or state-funded entity shall terminate the contract
after providing notice and an opportunity to be heard.
b. The court shall do all of the following:
1. Order the business entity or employer to terminate
the employment of every unauthorized alien.
2. Subject the business entity or employer to a
five-year probationary period throughout the state. During the
probationary period, the business entity or employer shall
file quarterly reports with the Department of LaborWorkforce
of each new employee who is hired by the business entity or
employer in the state.
3. Order the business entity or employer to file,
subject to the penalty of perjury, a signed, sworn affidavit
with the Department of LaborWorkforce within three days after
the order is issued by the court stating that the business
entity or employer has terminated the employment of every
unauthorized alien and the business entity or employer will
not knowingly or intentionally employ an unauthorized alien in
this state.
c.1. If the court determines that the business entity
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c.1. If the court determines that the business entity
or employer has a policy or practice that violates this
section, the court shall direct the applicable state, county,
or municipal governing bodies to suspend the business licenses
or permits of the business entity or employer for a period not
less than 60 days and not to exceed 120 days specific to the
location or locations where the unauthorized alien performed
work.
2. Before a business license or permit that has been
suspended under this paragraph is reinstated, a legal
representative of the business entity or employer shall submit
to the court a signed, sworn affidavit stating that the
business entity or employer is in compliance with the
provisions of this subdivision and a copy of the Memorandum of
Understanding issued to the business entity or employer at the
time of enrollment in the E-Verify program.
d. A finding by a court of competent jurisdiction of a
second violation of subsection (a) that does not occur within
ten10 years of a first violation shall still be considered a
second violation of subsection (a) by the business entity or
employer, even though the penalty for the second violation
shall be governed by subdivision (1).
(3) Upon a finding by a court of competent jurisdiction
of a third violation of subsection (a) by a business entity or
employer, including a subcontractor, awarded a contract by the
state, any political subdivision thereof, or any state-funded
entity:
a. The business entity or employer shall be deemed in
breach of contract and the state, political subdivision
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breach of contract and the state, political subdivision
thereof, or state-funded entity shall terminate the contract
after providing notice and an opportunity to be heard.
b. The court shall direct the applicable state, county,
or municipal governing bodies to permanently revoke all
business licenses or permits of the business entity or
employer.
(4)a. For the purposes of this subdivision, an
"incentive" is any arrangement whereby the state or a
political subdivision authorizes a loss in revenue due to a
special exclusion, exemption, or deduction, or a special tax
credit or preferential tax rate, that may be claimed by a
business entity or employer.
b.1. Upon a finding by a court of competent
jurisdiction of a second violation of subsection (a), in
addition to the requirements and penalties provided under
subdivisions (1) and (2), the court shall direct both of the
following:
(i) That the business entity or employer forfeit any
incentive that it otherwise lawfully claims.
(ii) That the business entity or employer pay the state
or political subdivision the monetary amount for which the
business entity or employer would have been liable in the
absence of claiming the incentive for the period during which
the unauthorized alien was employed.
2. A business entity or employer that is penalized
under subparagraph 1., may again claim the incentive no
earlier than the fourth anniversary of the date of forfeiture
if the entity or employer has satisfied any payment directed
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if the entity or employer has satisfied any payment directed
by the court under item b.1.(ii).
(f)(1) This section shall not be construed to deny any
procedural mechanisms or legal defenses included in the
E-Verify program or any other federal work authorization
program.
(2) A business entity or employer that has enrolled in
the E-Verify program and has used the program to verify the
work authorization of an employee shall not be liable under
this section for violations resulting from the hiring of that
employee.
(g) The Secretary of State may adopt rules to
administer this section and shall report any rules adopted to
the Legislature.
(h) Compliance with this section may be verified by the
contracting authority or any state or local law enforcement
agency at any time to ensure a contractual agreement as
provided for in this section is being met.
(i) Anything to the contrary notwithstanding, this
section shall not apply to agreements by the state, any
political subdivision thereof, or any state-funded entity
relating to debt obligations by such entities.
(j) Any business entity or employer found in violation
of this section that has had their business license or permit
suspended shall not, for the duration of the suspension, shall
not be allowed, directly or indirectly, to procure or execute
a license or permit similar to those that have been suspended.
(k) All contracts or agreements to which the state, a
political subdivision, or state-funded entity are a party
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political subdivision, or state-funded entity are a party
shall include the following clause: "By signing this contract,
the contracting parties affirm, for the duration of the
agreement, that they will not violate federal immigration law
or knowingly employ, hire for employment, or continue to
employ an unauthorized alien within the State of Alabama.
Furthermore, a contracting party found to be in violation of
this provision shall be deemed in breach of the agreement and
shall be responsible for all damages resulting therefrom."
(l) For the purposes of this section, "contract" shall
mean means a contract awarded by the state, any political
subdivision thereof, or any state-funded entity that was
competitively bid or would, if entered into by the state or an
agency thereof, would be required to be submitted to the
Contract Review Permanent Legislative Oversight Committee.
(m) All actions brought under this section shall be
brought in circuit court."
Section 7. This act shall become effective on October
1, 2025.
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1, 2025.
House of Representatives
Read for the first time and referred
to the House of Representatives
committee on Judiciary
................18-Feb-25
Read for the second time and placed
on the calendar:
1 amendment
................27-Feb-25
Read for the third time and passed
as amended
Yeas 81
Nays 0
Abstains 19
................06-Mar-25
John Treadwell
Clerk
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