January 13, 2011, Introduced by Reps. Agema, Yonker, Hooker, Cotter, Callton, Lori, Forlini, Knollenberg, Johnson, LaFontaine, Damrow, MacMaster, Somerville and Daley and referred to the Committee on Commerce.


     A bill to require verification that public contracts are


performed by employees who are entitled to work in the United


States; to prohibit an employer from discharging certain employees


while employing an illegal alien; to prescribe acceptable methods


for verifying legal presence in the United States; to condition the


eligibility of employers to perform certain public contracts on


participation in the federal immigrant verification system; to


create duties and responsibilities for certain state and local


departments, agencies, and officers; to require promulgation of


rules; and to provide civil remedies and criminal penalties.




     Sec. 1. This act shall be known and may be cited as the


"public contract and employment eligibility verification act".


     Sec. 3. As used in this act:


     (a) "E-verify" means the electronic verification of work


authorization program of 8 USC 1324a that is operated by the United


States department of homeland security or any equivalent federal


work authorization program operated by the United States department


of homeland security or any other designated federal agency


authorized to verify the documentation of newly hired employees,


pursuant to the immigration reform and control act of 1986, PL 99-




     (b) "Employer" means a person who employs for compensation 10


or more individuals at 1 time during the calendar year.


     (c) "Form I-9" means the employment verification form that


fulfills the employment verification obligations under 8 CFR




     (d) "Public employer" means a department, agency, or


instrumentality of this state or a political subdivision of this




     (e) "Subcontractor" includes a subcontractor, contract


employee, staffing agency, and a contractor.


     Sec. 5. (1) A public employer shall register and participate


in the E-verify system to verify the documentation of each new




     (2) A public employer shall not enter into a contract for the


performance of services within this state unless the contractor


registers and participates in the E-verify program to verify the


documentation of all of the contractor's new employees and the


contractor agrees to notify the public employer of all new


employees assigned by the contractor or any subcontractor to work


on the contract.


     (3) A contractor or subcontractor shall not enter into a


contract or subcontract with a public employer concerning the


performance of services within this state unless the contractor or


subcontractor registers with and participates in the E-verify


system to verify the documentation of all new employees.


     Sec. 7. (1) An employer shall not discharge an employee who is


a citizen or permanent resident alien, if on the date of the


discharge, the employer knowingly employed an alien who is not


authorized to work in the United States. A discharged employee has


a private cause of action for a violation of this section. The


prohibition in this section does not apply to a discharge for




     (2) An employer, public employer, or contractor using the E-


verify system for its intended purpose is not civilly or criminally


liable under any law for any action taken in good faith based on


information provided through the E-verify confirmation system.


     Sec. 9. The department of energy, labor, and economic growth


shall promulgate rules to implement this act pursuant to the


administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to




     Sec. 11. (1) An employer or an agency or political subdivision


of the state shall verify the lawful presence of an individual in


the United States as required under section 5 by obtaining a form


I-9 or, in the case of an independent contractor, an affidavit that


the independent contractor and each of the independent contractor's


new employees executes under penalty of perjury and that states


that he or she is 1 of the following:


     (a) A United States citizen.


     (b) A qualified alien as that term is defined in 8 USC 1641,


and is lawfully present in the United States.


     (2) The employer or agency or political subdivision shall


further verify the status of an individual who has executed a form


I-9 or an affidavit described in subsection (1), through the E-


verify system. Until the further eligibility verification is made,


the form I-9 or the affidavit is presumed to be proof of lawful


presence for the purposes of this section.


     (3) An individual who knowingly and willfully makes a false,


fictitious, or fraudulent statement or representation in a form I-9


or an affidavit executed pursuant to this section is guilty of


perjury punishable as provided in section 423 of the Michigan penal


code, 1931 PA 328, MCL 750.423.


     (4) An individual who willfully and repeatedly violates this


act is responsible for a state civil infraction and shall be


ordered to pay a civil fine of not less than $100.00 and not more


than $1,000.00 per violation.


     Sec. 13. (1) Any business, including a subcontractor, that


violates section 5(3) shall be debarred from contracting with any


public body in this state for a period of 1 year from the date of


the final determination of that violation by a public body or court


of law.


     (2) A public employer shall immediately terminate for default


the public contract or subcontract of any business, including a


subcontractor, found to have employed 2 or more unauthorized aliens


during the period in which the business was in violation of section




     (3) An employer who has complied with the requirements of


section 5(3), including cooperation with the investigation of an


alleged violation by a subcontractor, is not subject to the


sanctions under this section for a subcontractor or individual


independent contractor.