Committee hears competing claims over bill to expand E‑Verify on public works

Chairwoman Rogers opened the hearing on Senate Bill 87, Sen. Goode's proposal to require E‑Verify on all public works contracts, and allowed the sponsor and multiple witnesses to present testimony.

Sen. Goode told the committee the state statute adopted in 2011 must be updated because changes in construction delivery methods created a gap that "allowed individuals who are currently residing in Indiana here illegally to get jobs that should otherwise go to our citizens." He said the bill would require public agencies and contractors on taxpayer‑funded projects to ensure employees can "demonstrate the simple E‑Verify number" and pointed the panel to the fiscal impact language that, he argued, shows the changes can be implemented within existing resources.

Rob Henderson of the Indiana State Building Trades Council said the bill seeks to "crystal clear" the law and close a CMC (construction manager at risk) exemption added in later amendments. Henderson testified E‑Verify is a free federal system, typically taking under 5–10 minutes to confirm eligibility, and described the measure as a deterrent against labor brokers who "are skirting the system and... using and abusing" vulnerable workers.

Representatives of the construction industry urged caution. Matt Bell of the Associated Builders and Contractors said the statute as drafted would "create a liability and a responsibility for a contractor to understand what happens at every subcontractor," a change he called "significant" because it would expose general contractors to penalties for actions by lower‑tier employers. Bell cited an independent 2012 audit and congressional testimony suggesting the system has flaws, stating "the only independent audit ever done of E‑Verify found that half of all illegal workers run through the system avoided detection" and noting the system can generate errors that take days to resolve.

Rick Wojster of the Indiana Builders Association said his group supports the concept of E‑Verify but urged the committee to include safe‑harbor and operational provisions so small subcontractors and the employees they hire are not unfairly penalized, and asked that the system be accessible by telephone for small businesses.

Committee members pressed witnesses on implementation questions: how 'knowing and intentional' violations would be adjudicated, whether penalties (including a 12‑month bar on public works work) would apply retroactively or only to future contracts, and what would happen if the federal E‑Verify system were unavailable. Witnesses and lawmakers discussed whether verification would follow an individual worker or be tied to each employer; Rob Henderson and industry witnesses said the number of unresolved or mistaken determinations could slow projects and underscored the need for clear adjudication procedures and definitions.

Sen. Goode closed by acknowledging E‑Verify "is not perfect" but describing it as the best available tool and reiterating a willingness to work with colleagues and stakeholders to refine enforcement and implementation. The committee heard testimony only on SB87 and did not take a vote at the hearing.

Next steps: The sponsor said he will continue stakeholder discussions; the committee did not schedule a vote during the session.