BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1236
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          ASSEMBLY THIRD READING
          AB 1236 (Fong)
          As Amended  March 31, 2011
          Majority vote 

           LABOR & EMPLOYMENT          5-1                                 
           
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          |Ayes:|Swanson, Alejo, Allen,    |     |                          |
          |     |Furutani, Yamada          |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Morrell                   |     |                          |
          |     |                          |     |                          |
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           SUMMARY  :  This bill establishes the Employment Acceleration Act 
          of 2011 to prohibit the state and a city, county, city and 
          county or a special district, from requiring an employer to use 
          an electronic employment verification system.  Specifically, 
           this bill  : 

          1)Prohibits, except as required by federal law, or as a 
            condition of receiving federal funds, the state and a city, 
            county, city and county, or special district, from requiring 
            employers to use an electronic employment verification system.

          2)Prohibits the state and any city, county, city and county or 
            special district, from requiring employers to use the 
            electronic employment verification as a condition of receiving 
            a government contract or as a condition for maintaining a 
            business license.

          3)Defines "electronic employment verification system" as an 
            employment verification system that allows employers to 
            electronically verify workers' employment authorization with 
            the federal government: 

             a)   Excludes from this definition the I-9 Employment 
               Eligibility Verification (Form I-9) form or any other 
               employment eligibility systems that are required by federal 
               law.

          4)Defines "employer" as an employer other than the state, a 
            city, county, city and county or special district. 








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           EXISTING FEDERAL LAW  : 

          1)Establishes the Immigration and Nationality Act of 1952 (INA) 
            to prohibit the known hiring of individuals who are not 
            authorized to work in the United States. 

             a)   Establishes the Immigration Reform and Immigrant 
               Responsibility Act of 1996 (IIRIRA) (Public Law 104-208, 
               September 30, 1996), as an amendment to the INA, to require 
               employers to verify the identity and eligibility of every 
               employee.

          2)Establishes E-Verify, formerly known as the Basic Pilot 
            Program, a voluntary internet-based system that allows an 
            employer, using information reported on an employee's Form 
            I-9, to determine the eligibility of that employee to work in 
            the United States (U.S.).

           FISCAL EFFECT  :  Unknown

           COMMENTS  :  According the author, cities and municipalities in 
          California have recently begun passing local ordinances to 
          require private employers to use the E-Verify program.  The 
          author states that such ordinances contradict the original 
          intent that the program be voluntary and place a financial and 
          administrative burden on employers.

          The Basic Pilot Program is a voluntary Internet-based program 
          administered by the federal 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 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."

          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.  According to a 2010 








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          report by the United States Government Accountability Office 
          (GAO) on Employment Verification, identity fraud remains a 
          challenge for the E-Verify system because employers may not be 
          able to determine if an employee is presenting genuine identity 
          and employment eligibility documents that are borrowed or 
          stolen.  The GAO report also notes that E-Verify cannot detect 
          cases in which an unscrupulous employer assists unauthorized 
          employees.  The GAO report states that of the 97.4% of employees 
          who were confirmed as work authorized by E-Verify in 2009, 
          USICIS was unable to determine how many employees E-Verify 
          incorrectly confirmed as authorized. 

          In a letter supporting this bill, a coalition of businesses, 
          including the Western Growers and California Farm Bureau 
          Federation write that reports have raised disturbing questions 
          about the accuracy of the databases used by the E-Verify system 
          about the system's persistently high error rate.  They believe 
          that E-Verify is not yet sufficiently reliable enough to cope 
          with the massive increase in usage that a usage mandate in 
          California would create.  They assert that a creation of 
          patchwork of inconsistent and incompatible state and local laws 
          will only create needless confusion among employers. 

           
          Analysis Prepared by  :    Shannon McKinley / L. & E. / (916) 
          319-2091 


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