BILL ANALYSIS Ó AB 1236 Page 1 ASSEMBLY THIRD READING AB 1236 (Fong) As Amended March 31, 2011 Majority vote LABOR & EMPLOYMENT 5-1 ----------------------------------------------------------------- |Ayes:|Swanson, Alejo, Allen, | | | | |Furutani, Yamada | | | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Morrell | | | | | | | | ----------------------------------------------------------------- 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. AB 1236 Page 2 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 AB 1236 Page 3 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 FN: 0000533