Ariz. Rev. Stat. § 41-4401 – Government procurement; e-verify requirement; definitions

A. After September 30, 2008, a government entity shall not award a contract to any contractor or subcontractor that fails to comply with section 23-214, subsection A. Every government entity shall ensure that every government entity contractor and subcontractor complies with the federal immigration laws and regulations that relate to their employees and section 23-214, subsection A. Every government entity shall require that every government entity contract include all of the following provisions:
1. 1. That each contractor and subcontractor warrants their compliance with all federal immigration laws and regulations that relate to their employees and their compliance with section 23-214, subsection A.
2. 2. That a breach of a warranty under paragraph 1 shall be deemed a material breach of the contract that is subject to penalties up to and including termination of the contract.
3. 3. That the government entity retains the legal right to inspect the papers of any contractor or subcontractor employee who works on the contract to ensure that the contractor or subcontractor is complying with the warranty under paragraph 1.
B. Every government entity that enters into a contract shall establish procedures to conduct random verification of the employment records of government entity contractors and subcontractors to ensure that the contractors and subcontractors are complying with their warranties.
C. A government entity shall not deem a government entity contractor or subcontractor in material breach of a contract if the contractor or subcontractor establishes that it has complied with the employment verification provisions prescribed by sections 274a and 274b of the federal immigration and nationality act and the e-verify requirements prescribed by section 23-214, subsection A.
D. For the purposes of this section:
1. 1. "Contract" means all types of government entity agreements, regardless of what they may be called, for the procurement of services in this state.
2. 2. "Contractor" means any person who has a contract with a government entity.
3. 3. "E-verify program" means the employment verification pilot program as jointly administered by the United States department of homeland security and the social security administration or any of its successor programs.
4. 4. "Government entity" means this state and any political subdivision of this state that receives and uses tax revenues.
5. 5. "Services" means the furnishing of labor, time or effort in this state by a contractor or subcontractor. Services include construction or maintenance of any structure, building or transportation facility or improvement of real property.
6. 6. "Subcontractor" means a person who contracts to perform work or render service to a contractor or to another subcontractor as a part of a contract with a government entity.