HB 610 — An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, in public works employment verification, further providing for definitions, for duty of public works contractors and subcontractors, for verification form, for violations, for enforcement and sanctions, for Public Works Employment Verification Account, for protection from retaliation, for good faith immunity and for public works contractor and subcontractor liability; and making an editorial change.

PRINTER'S NO.   623

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 610
                                               Session of
                                                 2025

     INTRODUCED BY M. MACKENZIE, KAUFFMAN AND BERNSTINE,
        FEBRUARY 20, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, FEBRUARY 20, 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," in public works employment verification, further
22      providing for definitions, for duty of public works
23      contractors and subcontractors, for verification form, for
24      violations, for enforcement and sanctions, for Public Works
25      Employment Verification Account, for protection from
26      retaliation, for good faith immunity and for public works
27      contractor and subcontractor liability; and making an
28      editorial change.
29      The General Assembly of the Commonwealth of Pennsylvania
30   hereby enacts as follows:
31      Section 1.    Article XXIV-C heading and sections 2401-C, 2402-
 1   C, 2403-C, 2404-C, 2405-C, 2406-C heading and (a), 2407-C(a),
 2   2408-C and 2409-C of the act of April 9, 1929 (P.L.177, No.175),
 3   known as The Administrative Code of 1929, are amended to read:
 4                               ARTICLE XXIV-C
 5          PUBLIC [WORKS] CONTRACTOR EMPLOYMENT VERIFICATION
 6   Section 2401-C.    Definitions.
 7      The following words and phrases when used in this article
 8   shall have the meanings given to them in this section unless the
 9   context clearly indicates otherwise:
10      "Contract."    A type of written agreement, between a public
11   body and a public contractor, regardless of what the agreement
12   may be called, for the procurement or disposal of supplies,
13   services or construction and executed by all parties in
14   accordance with all applicable State law.
15      "Department."    The Department of General Services of the
16   Commonwealth.
17      "Employee."    An individual hired by a public [works]
18   contractor or subcontractor for whom the public [works]
19   contractor or subcontractor is required by law to file a Form W-
20   2 with the Internal Revenue Service.
21      "EVP."   The E-Verify Program operated by the Department of
22   Homeland Security that electronically verifies employment
23   eligibility for employees.
24      "Public body."    The Commonwealth of Pennsylvania, any of its
25   political subdivisions, any authority created by the General
26   Assembly of the Commonwealth and any instrumentality or agency
27   of the Commonwealth.
28      ["Public work."     As defined under section 2 of the act of
29   August 15, 1961 (P.L.987, No.442), known as the Pennsylvania
30   Prevailing Wage Act.]

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 1      "Public [works] contractor."        A contractor that provides work
 2   under a contract [involving a public work] with a public body.
 3      "Secretary."       The Secretary of General Services of the
 4   Commonwealth.
 5      "Subcontractor."       A person, other than a natural person,
 6   regardless of its tier, including, but not limited to, a
 7   staffing agency that performs work for a public [works]
 8   contractor under a contract [for a public work]. The term shall
 9   not include persons that are material suppliers for a
10   construction project.
11      "Willful."        Action or conduct undertaken intentionally or
12   with reckless disregard for or deliberate ignorance of the
13   requirements and obligations established under this article.
14   Section 2402-C.       Duty of public [works] contractors and
15                  subcontractors.
16      (a)   General rule.--[A]
17            (1)   Except as provided in paragraph (2), a public
18      [works] contractor or subcontractor shall participate in EVP
19      and shall, subject to the requirements of Federal law
20      governing the use of EVP, use EVP to verify employment
21      eligibility of each new employee. The department shall post
22      on its publicly accessible Internet website information
23      regarding the requirements of Federal law governing the use
24      of EVP.
25            (2)   A public contractor or subcontractor without
26      employees shall not be required to enroll in EVP. The
27      following shall apply:
28                  (i)    For the purposes of section 2403-C, a public
29            contractor or subcontractor without employees may submit
30            an affidavit stating that the individual public

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 1             contractor or subcontractor is authorized to work in the
 2             United States and has no employees, in lieu of a
 3             statement that the public contractor or subcontractor is
 4             enrolled in EVP.
 5                 (ii)     A public contractor or subcontractor without
 6             employees shall enroll in EVP and provide an updated
 7             verification form to the public body prior to hiring any
 8             employees.
 9      (b)    Discrimination prohibited.--In conducting the
10   verification required by this section, a public [works]
11   contractor or subcontractor shall not discriminate against an
12   employee on the basis of race, ethnicity, color or national
13   origin.
14   Section 2403-C.      Verification form.
15      (a)    General rule for public [works] contractors.--As a
16   precondition of being awarded a contract [for a public work], or
17   with respect to a contract that was awarded prior to the
18   effective date of this subsection but has not yet been executed,
19   prior to the execution of the contract, a public [works]
20   contractor shall provide the public body with a verification
21   form described in subsection (c), acknowledging its
22   responsibilities under and its compliance with section 2402-C
23   and stating that the contractor is enrolled in EVP. Contracts
24   between a public [works] contractor and its subcontractors shall
25   contain information about the requirements of this article.
26      (b)    General rule for subcontractors.--Prior to commencing
27   work [on a public works project] under a contract, a
28   subcontractor shall provide the public body with a verification
29   form described in subsection (c) acknowledging its
30   responsibilities and its compliance with section 2402-C and

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 1   stating that the subcontractor is enrolled in EVP. Contracts
 2   between a subcontractor and its subcontractors shall contain
 3   information about the requirements of this article.
 4         (c)   Form.--The verification form required by this section
 5   shall be on a form prescribed by the secretary and posted on the
 6   department's publicly accessible Internet website and shall
 7   comply with the following additional requirements:
 8               (1)   The statement shall include a certification that the
 9         information in the statement is true and correct and that the
10         individual signing the statement understands that the
11         submission of false or misleading information in connection
12         with the verification shall subject the individual and the
13         public [works] contractor or subcontractor, as the case may
14         be, to sanctions provided by law.
15               (2)   The statement shall be signed by a representative of
16         the public [works] contractor or subcontractor, as
17         applicable, who has sufficient knowledge and authority to
18         make the representations and certifications contained in the
19         statement.
20   Section 2404-C.       Violations.
21         It is a violation of this article for a public [works]
22   contractor or subcontractor [on a public work] under a contract
23   to:
24               (1)   Fail to verify the employment eligibility of a new
25         employee through EVP in accordance with Federal law.
26               (2)   Not provide the verification form as required under
27         section 2403-C or make a false statement or misrepresentation
28         with respect to completing the form.
29   Section 2405-C.       Enforcement and sanctions.
30         (a)   General rule.--The department shall enforce this

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 1   article.
 2      (b)     Investigation of complaints.--The department shall
 3   accept, review and investigate in a timely manner any credible
 4   complaint that a public [works] contractor or subcontractor has
 5   violated a provision of this article.
 6      (c)     Audits.--To ensure compliance with the requirements of
 7   this article, the department shall conduct complaint-based and
 8   random audits of public [works] contractors and subcontractors
 9   in this Commonwealth.
10      (d)     Reimbursement of department.--
11            (1)    The department may require a public [works]
12      contractor or subcontractor to reimburse the department for
13      the cost of an audit if the public [works] contractor or
14      subcontractor:
15                   (i)    is debarred from [public] work under a contract
16            under subsection (e); or
17                   (ii)   is subject to a civil penalty under subsection
18            (f).
19            (2)    The cost of an audit shall be reasonably based on
20      the amount of staff time spent on conducting an individual
21      audit.
22      (e)     Sanctions.--The following sanctions shall apply only to
23   a violation under section 2404-C(1):
24            (1)    For a first violation, a public [works] contractor
25      or subcontractor shall receive a warning letter from the
26      department detailing the violation. The letter shall be
27      posted on the department's publicly accessible Internet
28      website.
29            (2)    For a second violation, a public [works] contractor
30      or subcontractor shall be debarred from [public] work under a

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 1    contract for 60 days.
 2          (3)   For a third violation and subsequent violations, a
 3    public [works] contractor or subcontractor shall be debarred
 4    from [public] work under a contract for not less than one
 5    year and not more than two years.
 6          (4)   In the case of an alleged willful violation, the
 7    secretary shall file a petition in Commonwealth Court seeking
 8    to have the court issue a rule to show cause why a public
 9    [works] contractor or subcontractor did not engage in the
10    willful violation. If the court finds that the public [works]
11    contractor or subcontractor engaged in a willful violation,
12    the court shall order that the public [works] contractor or
13    subcontractor be debarred from [public] work under a contract
14    for a period of three years.
15          (5)   Notwithstanding the provisions of paragraph (1), (2)
16    or (3), a violation by a public [works] contractor or
17    subcontractor that occurs 10 or more years after a prior
18    violation shall be deemed to be a first violation.
19          (6)   For the purposes of assessing sanctions, violations
20    committed by a contractor or subcontractor subject to this
21    article involving a single [public works] contract shall be
22    considered a single violation despite the number of employees
23    that are the subject of the violations.
24    (f)   Civil penalty and sanctions.--The following shall apply:
25          (1)   A public [works] contractor or subcontractor that
26    violates section 2404-C(2) shall be subject to a civil
27    penalty of not less than $2,500 and not more than $25,000 for
28    each violation, to be imposed by the department based on the
29    duration and severity of the violation.
30          (2)   In addition to the penalty under paragraph (1), in

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 1      the event of a willful violation of section 2404-C(2), a
 2      public [works] contractor or subcontractor shall be subject
 3      to debarment for not less than 60 days nor more than three
 4      years, depending on the duration and severity of the
 5      violation.
 6      (g)   Notice and appeal.--Actions taken by the department
 7   under subsections (e)(1), (2) and (3) and (f) shall be subject
 8   to the notice, appeal and other provisions of 2 Pa.C.S.
 9   (relating to administrative law and procedure).
10   Section 2406-C.     Public [Works] Contractor Employment
11                  Verification Account.
12      (a)   Establishment.--The Public [Works] Contractor Employment
13   Verification Account is established as a restricted revenue,
14   interest-bearing account in the General Fund.
15      * * *
16   Section 2407-C.     Protection from retaliation.
17      (a)   General rule.--It shall be unlawful for a public [works]
18   contractor or subcontractor to discharge, threaten or otherwise
19   retaliate or discriminate against an employee regarding
20   compensation or other terms or conditions of employment because
21   the employee:
22            (1)   participates in an investigation, hearing or inquiry
23      held by the secretary or any other governmental authority
24      under this article; or
25            (2)   reports or makes a complaint regarding the violation
26      of this article to a public [works] contractor or
27      subcontractor or to any governmental authority.
28      * * *
29   Section 2408-C.     Good faith immunity.
30      A public [works] contractor or subcontractor that relies in

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 1   good faith on EVP procedures to verify employment eligibility of
 2   new employees under this article shall be immune from the
 3   sanctions authorized under section 2405-C and shall have no
 4   liability to an individual who is not hired or who is discharged
 5   from employment in the event that incorrect information has been
 6   provided to the public [works] contractor or subcontractor. A
 7   public [works] contractor or subcontractor that can produce
 8   written acknowledgment provided by an applicable Federal agency
 9   of use of EVP is considered to have acted in good faith.
10   Section 2409-C.    Public [works] contractor and subcontractor
11              liability.
12      Nothing in this article may be construed to render a public
13   [works] contractor liable for the action of a subcontractor or a
14   subcontractor liable for an action of another subcontractor.
15      Section 2.     This act shall take effect in 60 days.




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