Section 166.5 - Violations(a) General rule.--Payment or repayment under section 4 is required if any of the following apply:(1) The person that received the grant or loan is sentenced under Federal law for an offense involving knowing use of labor by an illegal alien on a project.(2) All of the following apply: (i) A contractor on the project is sentenced under Federal law for an offense involving knowing use of labor by an illegal alien on a project.(ii) The person that received the grant or loan knew or had reason to know of the contractor's knowing use of labor by an illegal alien on the project.(b) Ineligibility.--Any person who is required to pay penalty interest or repay a loan or grant under section 4 shall be ineligible to apply for any State grant or loan for a period of two years.(c) Affirmative defense.--It shall be an affirmative defense to a violation of section 3 if the person contracts with a contractor to provide labor on a project and establishes that the person has required the contractor to certify compliance with the requirements of section 274A of the Immigration Reform and Control Act of 1986 with respect to the hiring, recruiting or referral for employment of an alien in the United States and has notified the appropriate Federal authority, if the person knew that the contractor used labor by an illegal alien.2006, May 11, P.L. 173, No. 43, §5, effective in 60 days [ 7/10/2006].