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House committee weighs E‑Verify mandate, business groups urge changes

House Judiciary Committee · March 27, 2025
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Summary

Supporters of SB 329 urged a state requirement for employers to use E‑Verify to reduce illegal hiring, while business groups and chambers warned about anonymous complaints, enforcement with the attorney general, and burdens on small employers; sponsor said he is open to amendments.

Senator Forrest Mandeville opened the hearing on Senate Bill 329, asking the House Judiciary Committee to consider a state mandate for employers above a threshold to use the E‑Verify system for new hires. The bill, as introduced in the Senate, would apply to businesses with more than 50 employees (Senate amendment) and assigns investigatory authority to the attorney general; the sponsor set an intended effective date of Oct. 1.

Proponents, including Andrew Goode, urged the committee to adopt E‑Verify as an effective tool to curb illegal hiring and reduce unauthorized presence. "E Verify is an excellent system," Goode testified, citing state and Fed studies that found sharp reductions in illegal presence where E‑Verify is mandatory.

Business and trade groups strongly opposed the bill as written. Brad Griffin, representing the Montana Retail and Restaurant associations, said mandatory E‑Verify and a new state anonymous complaint mechanism would saddle employers with duplication of federal I‑9 processes and potentially create false positives and harassment. "E Verify has its critics who say that it isn't foolproof," Griffin said, also raising data‑security concerns.

Kerry Hegreberg of the Montana Chamber and Contractors Association urged the committee to consider enforcement by the Department of Labor and Industry rather than the attorney general and criticized expansive right‑of‑entry and high fines in the draft. Kaly Wicks of Campgrounds of America urged allowing I‑9 compliance or other options rather than making E‑Verify the only acceptable verification method.

Representatives sought clarification on the threshold size, the mechanics of anonymous complaints, which agency would manage enforcement, and the fiscal and staffing implications. Sarah Swanson, Commissioner at the Department of Labor and Industry, said DLI already performs related inspections and could coordinate with DOJ; Alex Sturhan of the Department of Justice said DOJ would carry out enforcement as directed but would likely need additional investigators.

Senator Mandeville said he favors the bill but is open to amendments (for example, removing anonymous complaint language) to reduce the AG's investigatory load and address business concerns. No formal committee vote on SB 329 is recorded in the hearing; members were left with questions about the enforcement vehicle, threshold, and complaint mechanics.