HB 1781 — An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, providing for Commonwealth grantee employment verification; establishing the Commonwealth Grantee Employment Verification Account; and imposing penalties.

PRINTER'S NO.   2190

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1781
                                               Session of
                                                 2025

     INTRODUCED BY BARGER, M. MACKENZIE, SMITH, KRUPA, KAUFFMAN,
        BERNSTINE, GLEIM, ZIMMERMAN, FINK, ROWE, DAVANZO AND WALSH,
        AUGUST 4, 2025

     REFERRED TO COMMITTEE ON STATE GOVERNMENT, AUGUST 4, 2025


                                    AN ACT
 1   Amending the act of April 9, 1929 (P.L.177, No.175), entitled
 2      "An act providing for and reorganizing the conduct of the
 3      executive and administrative work of the Commonwealth by the
 4      Executive Department thereof and the administrative
 5      departments, boards, commissions, and officers thereof,
 6      including the boards of trustees of State Normal Schools, or
 7      Teachers Colleges; abolishing, creating, reorganizing or
 8      authorizing the reorganization of certain administrative
 9      departments, boards, and commissions; defining the powers and
10      duties of the Governor and other executive and administrative
11      officers, and of the several administrative departments,
12      boards, commissions, and officers; fixing the salaries of the
13      Governor, Lieutenant Governor, and certain other executive
14      and administrative officers; providing for the appointment of
15      certain administrative officers, and of all deputies and
16      other assistants and employes in certain departments, boards,
17      and commissions; providing for judicial administration; and
18      prescribing the manner in which the number and compensation
19      of the deputies and all other assistants and employes of
20      certain departments, boards and commissions shall be
21      determined," providing for Commonwealth grantee employment
22      verification; establishing the Commonwealth Grantee
23      Employment Verification Account; and imposing penalties.
24      The General Assembly of the Commonwealth of Pennsylvania
25   hereby enacts as follows:
26      Section 1.    The act of April 9, 1929 (P.L.177, No.175), known
27   as The Administrative Code of 1929, is amended by adding an
28   article to read:
 1                                  ARTICLE XXIV-D
 2                COMMONWEALTH GRANTEE EMPLOYMENT VERIFICATION
 3   Section 2401-D.      Definitions.
 4      The following words and phrases when used in this article
 5   shall have the meanings given to them in this section unless the
 6   context clearly indicates otherwise:
 7      "Account."      The Commonwealth Grantee Employment Verification
 8   Account established under section 2407-D(a).
 9      "Commonwealth agency."       As follows:
10          (1)    An office, department, authority, board, multistate
11      agency or commission of the executive branch, an independent
12      agency and a State-affiliated entity.
13          (2)    The term includes:
14                (i)    The Governor's Office.
15                (ii)    The Office of Attorney General.
16                (iii)    The Department of the Auditor General.
17                (iv)    The Treasury Department.
18                (v)    An organization that is:
19                       (A)   established by the Constitution of
20                Pennsylvania, a statute or an executive order; and
21                       (B)   performs or is intended to perform an
22                essential governmental function.
23          (3)    The term does not include a judicial agency or
24      legislative agency.
25      "Department."      The Department of General Services of the
26   Commonwealth.
27      "Employee."      An individual hired by a grantee, contractor or
28   subcontractor, for whom the grantee, contractor or subcontractor
29   is required by law to file a Form W-2 with the Internal Revenue
30   Service.

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 1      "EVP."    The E-Verify Program operated by the Department of
 2   Homeland Security that electronically verifies employment
 3   eligibility for employees.
 4      "Grantee."      A person that receives a State grant.
 5      "Grantor agency."     A Commonwealth agency that awards a State
 6   grant to a grantee.
 7      "Judicial agency."      A court of this Commonwealth or an
 8   agency, authority, board, commission, office or similar entity
 9   of the unified judicial system.
10      "Legislative agency."      The General Assembly or an agency,
11   authority, board, commission, office or similar entity of the
12   General Assembly.
13      "Procurement."     As defined in 62 Pa.C.S. § 103 (relating to
14   definitions).
15      "State grant."     As follows:
16          (1)    A grant that:
17                (i)    is authorized by a law of this Commonwealth; and
18                (ii)    will be used to pay, in whole or in part, the
19          wages of an employee of a grantee, contractor or
20          subcontractor.
21          (2)    The term does not include:
22                (i)    A tax benefit.
23                (ii)    A tax credit.
24                (iii)    A procurement.
25                (iv)    Money appropriated or transferred for a purpose
26          other than a State grant.
27      "Subcontractor."     As follows:
28          (1)    A person, regardless of tier, that performs work or
29      provides services that will be paid for, in whole or in part,
30      with money from a State grant.

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 1            (2)   The term includes a staffing agency.
 2            (3)   The term does not include:
 3                  (i)    An individual.
 4                  (ii)    A supplier of materials or equipment purchased
 5            with money from a State grant.
 6      "Tax benefit."       As defined in section 1701-A.1 of the act of
 7   March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
 8   1971.
 9      "Tax credit."       As defined in section 1701-A.1 of the Tax
10   Reform Code of 1971.
11      "Willful violation."       Action or conduct undertaken
12   intentionally or with reckless disregard for or deliberate
13   ignorance of the requirements and obligations established under
14   this article.
15   Section 2402-D.       EVP.
16      (a)   Participation and use.--Each grantee, contractor or
17   subcontractor shall participate in EVP and shall, subject to the
18   requirements of Federal law governing the use of EVP, use EVP to
19   verify employment eligibility of each new employee of the
20   grantee, contractor or subcontractor.
21      (b)   Notice.--Each grantor agency shall post on its publicly
22   accessible Internet website information regarding the
23   requirements of Federal law governing the use of EVP with the
24   information and application for any State grant.
25      (c)   Discrimination prohibited.--In conducting the
26   verification required by this section, a grantee, contractor or
27   subcontractor may not discriminate against an employee on the
28   basis of race, ethnicity, color or national origin.
29   Section 2403-D.       Verification form.
30      (a)   Development.--The department shall develop a

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 1   verification form in accordance with this section to be used by
 2   grantees, contractors and subcontractors.
 3      (b)     Execution.--The verification form must be completed and
 4   signed by a representative of the grantee, contractor or
 5   subcontractor, as applicable, who has sufficient knowledge and
 6   authority to make the representations and certifications
 7   contained in the verification form.
 8      (c)     Contents.--The verification form under this section must
 9   contain:
10            (1)   A statement that the grantee, contractor or
11      subcontractor:
12                  (i)    Acknowledges its responsibilities under and its
13            compliance with section 2402-D.
14                  (ii)   Is enrolled in EVP.
15            (2)   A certification that:
16                  (i)    The information in the statement under paragraph
17            (1) is true and correct.
18                  (ii)   The individual completing and signing the
19            verification form understands that the submission of
20            false or misleading information in connection with the
21            verification form shall subject the individual and the
22            grantee, contractor or subcontractor, as the case may be,
23            to sanctions as provided by law.
24      (d)     Posting.--The department shall post the verification
25   form under this section on the publicly accessible Internet
26   website of the department for use by grantor agencies, grantees,
27   contractors and subcontractors.
28      (e)     Submittal.--
29            (1)   Prior to the execution of a grant agreement between
30      a grantor agency and grantee for the award of a State grant,

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 1      the grantor agency shall provide to the grantee a
 2      verification form under this section, which must be completed
 3      and signed in accordance with this section.
 4            (2)   Prior to a grantee performing work or providing
 5      services that will be paid for, in whole or in part, with
 6      money from a State grant, a contractor or subcontractor shall
 7      provide to the grantee a verification form under this
 8      section, which must be completed and signed in accordance
 9      with this section.
10      (f)   Contracts.--
11            (1)   A contract between a grantee and a contractor or
12      between a grantee's contractor and its subcontractors shall
13      contain information about the requirements of this article.
14            (2)   A contract between a contractor and its
15      subcontractors shall contain information about the
16      requirements of this article.
17   Section 2404-D.    Violations.
18      A grantee, contractor or subcontractor violates this article
19   if the grantee, contractor or subcontractor:
20            (1)   Fails to verify the employment eligibility of a new
21      employee through EVP in accordance with this article.
22            (2)   Fails to provide the verification form in accordance
23      with this article or submits false or misleading information
24      in connection with the completion and execution of a
25      verification form under this article.
26   Section 2405-D.    Enforcement.
27      (a)   Authorization.--Each grantor agency shall enforce this
28   article with regard to State grants that it has awarded.
29      (b)   Investigation of complaints.--A grantor agency shall
30   accept, review and investigate in a timely manner any credible

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 1   complaint that a grantee, contractor or subcontractor has
 2   violated a provision of this article.
 3      (c)   Audits.--To ensure compliance with the requirements of
 4   this article, a grantor agency shall conduct complaint-based and
 5   random audits of grantees, contractors and subcontractors.
 6      (d)   Reimbursements.--
 7            (1)   A grantor agency may require a grantee, contractor
 8      or subcontractor to reimburse the grantor agency for the cost
 9      of the amount of a State grant that it has received if the
10      grantee, contractor or subcontractor is:
11                  (i)    debarred from public work in accordance with
12            section 2406-D; or
13                  (ii)    subject to a civil penalty in accordance with
14            section 2406-D(b).
15            (2)   A grantor agency may require a grantee, contractor
16      or subcontractor to reimburse the grantor agency for the cost
17      of an audit under subsection (c), which shall be reasonably
18      based on the amount of staff time spent on conducting the
19      audit.
20   Section 2406-D.       Civil penalties and sanctions.
21      (a)   EVP.--The following sanctions shall apply only to a
22   violation under section 2404-D(1):
23            (1)   For a first violation, a grantee, contractor or
24      subcontractor shall receive a warning letter from the grantor
25      agency detailing the violation. The warning letter shall be
26      posted on the publicly accessible Internet website of the
27      grantor agency.
28            (2)   For a second violation, a grantee, contractor or
29      subcontractor shall be debarred from receiving a State grant,
30      performing work or providing services that will be paid for,

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 1      in whole or in part, with money from a State grant, for a
 2      period of 60 days.
 3            (3)   For a third violation and subsequent violations, a
 4      grantee, contractor or subcontractor shall be debarred from
 5      receiving a State grant, performing work or providing
 6      services that will be paid for, in whole or in part, with
 7      money from a State grant, for a period of not less than one
 8      year and not more than two years.
 9            (4)   In the case of an alleged willful violation, the
10      grantor agency shall file a petition in Commonwealth Court
11      seeking to have the court issue a rule to show cause why a
12      grantee, contractor or subcontractor did not engage in the
13      willful violation. If the court finds that the grantee,
14      contractor or subcontractor engaged in a willful violation,
15      the court shall order that the grantee, contractor or
16      subcontractor be debarred from receiving a State grant,
17      performing work or providing services that will be paid for,
18      in whole or in part, with money from a State grant, for a
19      period of three years.
20            (5)   Notwithstanding the provisions of paragraph (1), (2)
21      and (3), a violation by a grantee, contractor or
22      subcontractor that occurs 10 years or more after a prior
23      violation shall be deemed to be a first violation.
24            (6)   For the purposes of assessing sanctions, violations
25      committed by a grantee, contractor or subcontractor subject
26      to this article involving a single State grant shall be
27      considered a single violation despite the number of employees
28      that are the subject of the violations.
29      (b)   False or misleading information.--The following
30   sanctions shall apply only to a violation under section 2404-

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 1   D(2):
 2            (1)   A grantee, contractor or subcontractor that violates
 3      section 2404-D(2) shall be subject to a civil penalty of not
 4      less than $2,500 and not more than $25,000 for each
 5      violation, to be imposed by the grantor agency based on the
 6      duration and severity of the violation.
 7            (2)   In addition to the penalty under paragraph (1), in
 8      the event of a willful violation of section 2404-D(2), a
 9      grantee, contractor or subcontractor shall be subject to
10      debarment for a period not less than 60 days nor more than
11      three years, depending on the duration and severity of the
12      violation.
13      (c)     Notice and appeal.--Actions taken by a grantor agency
14   under subsections (a)(1), (2) and (3) and (b) shall be subject
15   to the notice, appeal and other provisions of 2 Pa.C.S.
16   (relating to administrative law and procedure).
17   Section 2407-D.     Commonwealth Grantee Employment Verification
18                  Account.
19      (a)     Establishment.--The Commonwealth Employment Verification
20   Account is established as a restricted revenue, interest-bearing
21   account in the General Fund.
22      (b)     Deposits.--Each grantor agency shall deposit penalties
23   collected under section 2406-D(b) into the account.
24      (c)     Use of account.--Money in the account and interest
25   earned on the account is appropriated on a continuing basis to
26   each grantor agency, based on the amount of deposits under
27   subsection (b) attributable to each grantor agency, for the
28   purposes of administering and enforcing the provisions of this
29   article.
30   Section 2408-D.     Protection from retaliation.

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 1      (a)   Prohibition.--It shall be unlawful for a grantee,
 2   contractor or subcontractor to discharge, threaten or otherwise
 3   retaliate or discriminate against an employee regarding
 4   compensation or other terms or conditions of employment because
 5   the employee:
 6            (1)   participates in an investigation, hearing or inquiry
 7      held by the grantor agency or another governmental authority
 8      under this article; or
 9            (2)   reports or makes a complaint regarding the violation
10      of this article to a grantee, contractor or subcontractor or
11      to a governmental authority.
12      (b)   Actions.--
13            (1)   An employee who suffers retaliation or
14      discrimination in violation of this section may bring an
15      action in a court of common pleas in accordance with
16      established civil procedures of this Commonwealth.
17            (2)   The action under paragraph (1) must be brought
18      within 180 days from the date the employee knew of the
19      retaliation or discrimination.
20      (c)   Relief.--If an employee prevails in an action commenced
21   under this section, the employee shall be entitled to the
22   following relief:
23            (1)   Reinstatement of the employee, if applicable.
24            (2)   Restitution equal to three times the amount of the
25      employee's wages and fringe benefits calculated from the date
26      of the retaliation or discrimination.
27            (3)   Reasonable attorney fees and costs of the action.
28            (4)   Any other legal and equitable relief as the court
29      deems appropriate.
30   Section 2409-D.    Good faith immunity.

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 1      A grantee, contractor or subcontractor that relies in good
 2   faith on EVP procedures to verify employment eligibility of new
 3   employees under this article shall be immune from the sanctions
 4   authorized under section 2406-D and shall have no liability to
 5   an individual who is not hired or who is discharged from
 6   employment if incorrect information is provided to the grantee,
 7   contractor or subcontractor. A grantee, contractor or
 8   subcontractor that produces written acknowledgment provided by
 9   an applicable Federal agency of use of EVP is considered to have
10   acted in good faith.
11   Section 2410-D.    Liability.
12      Nothing in this article may be construed to render:
13          (1)   A grantee liable for the action of a contractor or
14      subcontractor.
15          (2)   A contractor liable for the action of a
16      subcontractor.
17          (3)   A subcontractor liable for the action of another
18      subcontractor.
19   Section 2411-D.    Rules and regulations.
20      Each grantor agency may adopt or promulgate rules or
21   regulations necessary to administer and enforce this article for
22   State grants within its purview.
23   Section 2412-D.    Cooperation among departments.
24      A grantor agency may enter into agreements with the
25   department, the Department of Labor and Industry or any other
26   Commonwealth agency to provide for the cooperative enforcement
27   of the provisions of this article.
28      Section 2.     This act shall take effect in 60 days.




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