Adds new GS 143-133.1 to prohibit state government or any local political subdivision of the state from contracting with any contractor who knowingly employs or contracts with an illegal immigrant to perform work under the contract, or knowingly contracts with a subcontractor who knowingly employs or contracts with an illegal immigrant to perform work under the contract. Applies to contracts for the expenditure of public money for construction, repair, or the purchase of apparatus, supplies, material, or equipment. Applies to both formal and informal bids.

Before submitting a bid or entering into a contract with state government or any political subdivision of the state, a contractor must verify the work authorization status of each individual employed by the contractor, whether permanent, temporary, or seasonal, to perform work under the contract in accordance with the E-Verify Program administered by the US Department of Homeland Security. The contractor must certify on a form approved by the Secretary of Administration that the contractor has verified the work authorization status of its employees. A false certification is punishable as a Class I felony.

Contracts must contain a provision that sets forth the requirements of the act. A violation of the act voids the contract, unless immediate termination would harm the public health or welfare, and the Secretary approves continuation of the contract for a period of time deemed necessary to protect public health and welfare. If a contractor knowingly uses the services of an illegal immigrant in the performance of the contract, the contractor shall be prohibited from submitting a bid or entering into a contract with state government or any political subdivision of the state for one year from the date the violation is discovered.

Effective October 1, 2013, and applicable to bids submitted and contracts entered into on or after that date.