Immigration Legislation
The Special Session of the Colorado
Legislature concluded in July with what some view as a failure to
significantly address the growing concerns of illegal entry into the
country. Among the bills that the legislature passed and that were signed
by Governor Owens are the following bills that directly affect the business
community.
Employer Affirmation
requirements.
After January 1, 2007 all Colorado employers will be required, within 20
days after hiring a new employee, to affirm that the employer has assured
themselves that the employee is entitled to work in the country, that the
employer has retained copies of the documents that the employer used in
competing the I-9 form, that the employer has not altered or falsified the
documents, and that the employer has not knowingly hired an unauthorized
alien. The employer must keep a written or electronic copy of the
affirmation during the period of the employee’s employment. The legislation
does not provide a form to be used for the affirmation, nor does the
legislation direct the Department of Labor to promulgate a form for the
employer’s use.
Licenses
and Permits.
The legislation prohibits state or county agencies from
issuing or renewing professional and commercial licenses to persons who are
unlawfully in the country. This legislation takes effect for applications
and renewals beginning on January 7, 2007. An applicant may prove that he
or she is lawfully within the country through the use of a “secure and
verifiable document," which is defined by state law as a document issued by
a state or federal jurisdiction or recognized by the U. S. government and
that is verifiable by federal or state law enforcement, intelligence, or
homeland security agencies.
State Income Tax
Withholding.
Beginning on January 1, 2008, and provided that the
required verification system is in place on or before that date, any company
that pays a natural person for services that will be reported to the
Internal Revenue Service through the use of any variation of a Form 1099
will be required to withhold state income tax from the payment and to pay
the withheld tax to the Colorado Department of Revenue. The withholding
requirement will apply only when the company cannot verify that the natural
person has a valid social security number or taxpayer identification number.
Economic Development
Incentives.
The Colorado Economic Development Commission is directed
to create procedures to require any company who receives an economic
development incentive to provide proof to the commission that all of the
company’s employees are either
U. S. citizens or are lawfully
present in the country. If the Commission determines that a company has
employed persons who are not citizens and who are not lawfully in the
country, the Commission can require the company to repay all of the economic
development incentive awarded to the company. The company will be
ineligible for any economic development incentive for a period of five years
following the date of repayment. The bill also encourages, but does not
require, local governments that provide economic development incentives to
require companies that receive economic development incentives to provide
proof to the local government that all of the company’s employees are either
citizens or are lawfully present in the country.
