Governor Daniels Signs Immigration Bill Into Law

A new immigration bill signed into law by Indiana Governor Mitch Daniels on May 10, 2011, goes into effect July 1, 2011. The new law will impact businesses operating in the State of Indiana and especially those doing business with state and local governmental entities. Some of the notable provisions include the following:

The law precludes state and local governments from entering into or renewing contracts unless the contractor uses the E-verify system, which allows enrolled employers to electronically verify the identity and employment eligibility of newly hired employees. State and local governments must use E-Verify for all new hires. The law prohibits business owners in Indiana who knowingly hire illegal immigrants from deducting expenses associated with that employee in the calculation of their state income taxes, but a safe harbor is provided to employers who enroll and verify new employee data through the E-verify program. State agencies and local governments cannot award a grant of more than $1,000 to a business unless they sign and show documentation that the business is enrolled and participating in the E-Verify program. The law authorizes state agencies or local governments to terminate a public contract without penalty if the contractor knowingly employs illegal immigrants. If subcontractors are employed under a public contract, the subcontractor must certify to the contractor that it uses E-Verify and...