An act relating to public contracts. Be it enacted by the General Assembly of the Commonwealth of Kentucky

SECTION 0. A NEW SECTION OF KRS CHAPTER 45A IS CREATED TO READ AS FOLLOWS:

As used in Sections 1 to 3 of this Act, unless the context indicates otherwise:

(1) "Basic Pilot Program" means the Basic Pilot Employment Verification Program administered by the United States Department of Homeland Security to verify the employment eligibility of employees as required by the Immigration Reform and Control Act of 1986, as amended, 8 U.S.C. sec. 1101 et seq.;

(2) "Contract" means all types of state and local public agency agreements, including grants and orders, for the purchase or disposal of supplies, services, construction, or any other item. It includes awards; contracts of a fixed-price, cost, cost-plus-a-fixed-fee, or incentive type; contracts providing for the issuance of job or task orders; leases; letter contracts; purchase orders; and insurance contracts, except as provided in KRS 45A.022. It includes supplemental agreements with respect to any or the foregoing;

(3) "Contractor" means any person having a contract with a governmental body or local public agency;

(4) "Governmental body" means any department, commission, council, board, bureau, committee, institution, legislative body, agency, governmental corporation, or other establishment of the executive, legislative, or judicial branch of state government;

(5) "Local public agency" shall have the same meaning given in KRS 45A.345; and

(6) "Unauthorized alien" means a person who is not lawfully admitted for permanent residence in the United States or not authorized to be employed in the United States in accordance with federal immigration laws, or both.

SECTION 0. A NEW SECTION OF KRS CHAPTER 45A IS CREATED TO READ AS FOLLOWS:

(1) Notwithstanding any provision of the Kentucky Revised Statues to contrary, a governmental body or local public agency shall not enter into or renew a contract with a contractor who employs an unauthorized alien to perform work under the contract or who contracts with a subcontractor who employs an unauthorized alien to perform work under the contract.

(2) Prior to a contract being awarded under this chapter or any chapter of the Kentucky Revised Statutes, and in accordance with administrative regulations promulgated by the secretary of the Finance and Administration Cabinet, the contractor shall certify that the contractor is registered and participates in the Basic Pilot Program in order to verify the employment eligibility of its employees, as required by the Immigration Reform and Control Act of 1986, as amended, 8 U.S.C. sec. 1101 et seq.

SECTION 0. A NEW SECTION OF KRS CHAPTER 45A IS CREATED TO READ AS FOLLOWS:

A violation of Section 2 of this Act by a contractor shall be grounds for the governmental body or local public agency to:

(1) Terminate the contract; and

(2) Disqualify the contractor from eligibility for future governmental body and local public agency contracts for a period of five (5) years.