BILL ANALYSIS
AB 1288
Page 1
ASSEMBLY THIRD READING
AB 1288 (Fong)
As Amended May 26, 2009
Majority vote
LABOR & EMPLOYMENT 6-1
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|Ayes:|Monning, Bill Berryhill, | | |
| |Ammiano, Furutani, Ma, | | |
| |Portantino | | |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Gaines | | |
| | | | |
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SUMMARY : Enacts provisions of law related to the use by
employers of specified federal electronic employment
verification systems. Specifically, this bill :
1 Except as required by federal law or as a condition of
receiving federal funds, prohibits the state, a city, county,
city and county, or special district from requiring an
employer to use an electronic employment verification system,
including under the following circumstances:
a) As a condition of receiving a government contract;
b) As a condition of applying for or maintaining a business
license; and,
c) As a penalty for violating licensing or other similar
laws.
2)Defines an "electronic employment verification system" to mean
a system that allows employers to electronically verify
workers' employment authorization with the federal government,
including the Basic Pilot or E-Verify Programs. However, this
term does not include the "I-9" employment eligibility
verification form or any other employment verification systems
that are required by federal law.
3)Makes related legislative findings and declarations.
FISCAL EFFECT : This bill is currently keyed non-fiscal.
AB 1288
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COMMENTS : The Basic Pilot Program is a voluntary Internet-based
program administered by the Department of Homeland Security
(DHS). The program allows employers to electronically verify
workers' employment eligibility by accessing information in
databases maintained by the Social Security Administration (SSA)
and the U.S. Citizenship and Immigration Services (USCIS).
The Basic Pilot Program began as a pilot program created under
the federal Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (IIRIRA). The program began
operating in five states in 1997 and a sixth state in 1999. In
2003, Congress expanded the program to all 50 states and
authorized it until November 30, 2008, under the Basic Pilot
Program Extension and Expansion Act of 2003. In August 2007,
DHS renamed the program "E-Verify."
Some critics of the program have argued that it has been
hindered by inaccurate and outdated information in the DHS and
SSA databases and misuse of the program by employers. The
National Immigration Law Center points to recent evaluations of
the programs that have demonstrated that "the database used for
verification is still not sufficiently up to the date to meet
the [Illegal Immigration Reform and Immigrant Responsibility
Act] requirements for accurate verification.
According to the author, government reports indicate the
E-Verify program has a significant error rate. In California,
several thousand employers have registered for E-Verify,
including both private and public employers. The effectiveness
of E-Verify, however, has been questioned by several state and
federal entities, including the United States Government
Accountability Office (GAO).
In addition, the author argues that E-Verify imposes an
expensive, unnecessary regulatory burden on businesses. The
author states that cities and municipalities in California have
begun to pass local ordinances to require private employers to
use the E-Verify program. Specifically, the author indicates
that such policies have been adopted in the Cities of Mission
Viejo, Palmdale, San Juan Capistrano, Victorville and Yucca
Valley. Not only does such a requirement contradict Congress'
original intent that the program be voluntary, it places a
financial and administrative burden on employers and subjects
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potential employees to false identification.
The author states that, in order to participate in the E-Verify
program, businesses must suffer the administrative cost to hire
and train personnel on how to use the program. Some larger
companies have spent thousands of dollars in fees to pay outside
consultants to run the system due to the legal complexities. In
addition, participation in E-Verify results in the delay of new
hires and staff training. Small businesses employ approximately
half of the entire U.S. workforce and have generated 60 to 80%
of net new jobs annually over the last decade. These
businesses, already struggling in the current economy, will face
additional burdens and unanticipated problems if they are
required to use E-Verify, potentially harming their ability to
create new jobs and revenue.
In addition, the author contends that the high error rate of
E-Verify has resulted in several potential employees being
misidentified. Many of these employees must hire legal counsel
to resolve the discrepancies.
The author argues that this bill will provide employers the
flexibility to decide if participating in E-Verify would be
beneficial to their business. The bill does not prohibit the
use E-Verify; rather it prohibits the state, cities, counties,
cities and counties, or special districts from requiring the use
of E-Verify by private employers
Analysis Prepared by : Ben Ebbink / L. & E. / (916) 319-2091
FN: 0000963