Committee weighs bill to require E-Verify on state and publicly funded contracts

Representative Mike Tisdale introduced House Bill 4061 to the House Committee on Government Operations as a measure to require public employers and contractors that receive taxpayer funds to use E-Verify to confirm that new hires are authorized to work in the United States.

"If a company wants to do business with the state of Michigan and benefit from taxpayer funded contracts, it should be required to hire legally authorized workers," Representative Tisdale said in committee testimony. He said the Department of Labor and Economic Opportunity would create rules to implement and administer the program, and that the bill would apply to contractors and subcontractors on public contracts and to political subdivisions when they use state funds.

Supporters said E-Verify provides a quick, electronic cross-check of the federal I-9 information against Homeland Security and Social Security databases. "You get an answer in about 10 seconds," Tisdale said, and he characterized the tool as transferring some verification burden from employers to federal systems. The bill would apply to new hires and to employers or contractors with 10 or more employees; smaller subcontractors would be required to provide an affidavit of compliance, the sponsor said.

Opponents warned of civil-liberties, privacy, discrimination and economic impacts. Kyle Zwocken, legislative director for the American Civil Liberties Union of Michigan, told the committee the ACLU opposed HB 4061 and highlighted five areas of concern: E-Verify error rates, data privacy and security, potential for discrimination and profiling by employers, state overreach into an area of federal responsibility, and the severity of penalties. Zwocken said E-Verify data show thousands of initial non-confirmations are later resolved in favor of the applicant, and that denial burdens workers and employers.

"E Verify is plagued by incorrect information," Zwocken said, citing E-Verify data showing more than 58,000 people who were initially deemed not work authorized were later changed to work authorized after contesting. Zwocken also said about 1% of applicants walk away from their claim when initially denied, which he said raises due-process concerns.

Committee members asked about what data E-Verify requires and how employers or employees would correct mismatches. Tisdale said the system uses information gathered on the federal Form I-9 — Social Security numbers, driver’s license numbers, visa numbers and similar identifiers — and performs electronic cross-checks. He acknowledged registration and online training are required for E-Verify users and said the system provides time to contest mismatches; committee members referenced a 10 federal-working-day window to resolve some cases.

Members also asked whether the bill imposes any unfunded mandates on local governments. Tisdale said E-Verify is free to use and that the obligation would fall on the hiring municipality or the contractor using taxpayer funds; he said penalties for false affidavits include existing perjury provisions and potential civil fines that the Department of Labor and Economic Opportunity would specify in rules.

No committee vote on HB 4061 was recorded during the hearing. Several organizations filed testimony cards in opposition, including the ACLU of Michigan, the Michigan League for Public Policy and the Michigan Association of State Universities.

The committee continued questioning and took public testimony cards; it adjourned without taking a formal vote on HB 4061.