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SB1427 • 2026

e-verify program; license; penalties; employment

SB1427 - e-verify program; license; penalties; employment

Labor Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Wendy Rogers, Mark Finchem
Last action
2026-02-03
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official text does not list a specific effective date for this bill amendment.

SB1427: Rules for E-Verify, Licenses, and Penalties

This law requires employers to use a federal system to check worker eligibility after hiring them and sets penalties like license suspension or revocation for those who recklessly hire unauthorized workers.

What This Bill Does

  • Requires every employer to verify new employees using the E-Verify program after hiring them.
  • Mandates that businesses keep records of these verifications for at least three years or until employment ends, whichever is longer.
  • Makes participation in E-Verify a requirement for receiving government grants, loans, or performance-based incentives awarded after September 30, 2008.
  • Orders courts to suspend business licenses for the first violation if an employer recklessly hires unauthorized workers or fails to use E-Verify.
  • Requires businesses on probation to file quarterly reports showing they used E-Verify before hiring new employees.
  • Directs government entities to revoke a business license for a second violation of these rules at the location where the work was performed.
  • Allows any state resident to file a written petition with the Attorney General to report suspected violations, provided the claim is not based on race, ethnicity, or national origin.

Who It Names or Affects

  • Employers in Arizona who hire employees
  • Businesses seeking economic development incentives from government entities
  • Government agencies that issue business licenses or permits
  • The state Attorney General and county attorneys

Terms To Know

E-Verify program
A federal system used to check if a person is allowed to work in the United States.
Unauthorized alien
A worker who does not have legal permission from the U.S. government to be employed, as determined by the Department of Homeland Security.
Economic development incentive
Grants, loans, or performance-based incentives given by a government entity after September 30, 2008; this does not include tax provisions.

Limits and Unknowns

  • This law does not apply to independent contractors or casual domestic labor performed in households.
  • The effective date of this bill is not listed in the provided text.
  • Employers have a legal defense if they prove they followed federal rules and did not discriminate based on race, ethnicity, or national origin.

Bill History

  1. 2026-02-03 Senate

    Senate second read

  2. 2026-02-02 Senate

    Senate Rules: None

  3. 2026-02-02 Senate

    Senate Regulatory Affairs and Government Efficiency: None

  4. 2026-02-02 Senate

    Senate first read

Official Summary Text

SB1427 - e-verify program; license; penalties; employment

Current Bill Text

Read the full stored bill text
SB1427 - 572R - I Ver

REFERENCE TITLE:
e-verify program; license; penalties; employment

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1427

Introduced by

Senators
Rogers: Finchem

AN
ACT

amending section 23-214, arizona
revised statutes; relating to employment of unauthorized aliens.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 23-214, Arizona Revised
Statutes, is amended to read:

START_STATUTE
23-214.

Verification of employment eligibility; e-verify program;
economic development incentives; violation; liability exemption; enforcement;
applicability; list of registered employers

A.
After December 31, 2007,

Every employer, after hiring an employee, shall verify the employment
eligibility of the employee through the e-verify program and shall keep a
record of the verification for the duration of the employee's employment or at
least three years, whichever is longer.

B. In addition to any other requirement for an
employer to receive an economic development incentive from a government entity,
the employer shall register with and participate in the e-verify
program. Before receiving the economic development incentive, the
employer shall provide proof to the government entity that the employer is
registered with and is participating in the e-verify program. If the
government entity determines that the employer is not complying with this
subsection, the government entity shall notify the employer by certified mail
of the government entity's determination of noncompliance and the employer's
right to appeal the determination. On a final determination of
noncompliance, the employer shall repay all monies received as an economic
development incentive to the government entity within thirty days
of

after
the final determination.� For the
purposes of this subsection:

1. "Economic development incentive"
:

(
a
)
Means
any grant, loan or performance-based incentive from any government entity that
is awarded after September 30, 2008.�
Economic development
incentive

(
b
)
Does
not include any tax provision under title 42 or 43.

2. "Government entity" means this state
and any political subdivision of this state that receives and uses tax
revenues.

C. If a court of competent
jurisdiction finds that a business entity or employer recklessly hired an
unauthorized alien or did not comply with subsection A of this section, the
court shall do all of the following for a first violation:

1. Order the business entity or
employer to terminate the employment of every unauthorized alien.

2. Subject the business entity or
employer to a three-year term of probation. During the
probationary period, the business entity or employer shall file quarterly
reports with the appropriate government entity for each new hire indicating
that the business entity or employer used the
e
-
verify program before a new employee was hired.

3. Order
the business entity or employer to file a signed, sworn affidavit with the
appropriate government entity within three business days after receiving the
order that states the business entity or employer terminated the employment of
every unauthorized alien and will not recklessly employ an unauthorized alien.

4. Direct the applicable government
entity to suspend the business entity's or employer's license or permit if the
business entity or employer holds an active, current license or permit in this
state.

D. Before a business license or
permit that has been suspended under subsection C, paragraph 4 of this section
is reinstated, a legal representative of the business entity or employer shall
submit to the court a signed, sworn affidavit stating that the business entity
or employer is in compliance with this section.

E. The suspension of a license or
permit under subsection C, paragraph 4 of this section shall terminate one
business day after a legal representative of the business entity or employer
submits a signed, sworn affidavit to the court stating that the business entity
or employer is in compliance with this section.

F. IF A COURT OF COMPETENT
JURISDICTION FINDS THAT A BUSINESS ENTITY OR EMPLOYER recklessly HIRED AN
UNAUTHORIZED ALIEN OR VIOLATED SUBSECTION A OF THIS SECTION, THE COURT SHALL DO
both OF THE FOLLOWING FOR a second VIOLATION:

1. Direct the government entity to
revoke the business license or permit for the business location where the
unauthorized alien performed work, if the business entity or employer holds a
license or permit.�

2. On receipt of the court order and
notwithstanding any other law, the government entity shall immediately revoke
the license or permit of the business entity or employer, if the business
entity or employer holds a license or permit.

G. IF A COURT OF COMPETENT
JURISDICTION FINDS THAT A BUSINESS ENTITY OR EMPLOYER recklessly HIRED AN
UNAUTHORIZED ALIEN OR VIOLATED SUBSECTION A OF THIS SECTION for any third or
subsequent violation, the court shall direct the applicable government entity
to suspend the business entity's or employer's license or permit indefinitely
if the business entity or employer holds a license or permit.

H. This section does not deny any
procedural rules or legal defenses included in the
e
-
verify program or any other
federal work authorization program. A business entity or employer
that establishes that it has complied in good faith with the requirements of 8
united states code section 1324
a
(
a
)
or (
b
) is an affirmative defense that the business entity
or employer did not recklessly hire or employ an unauthorized alien.

I. In any state court proceeding, the
determination of whether an employee is an unauthorized alien shall be made by
the United States department of homeland security pursuant to 8 united states
code section 1373(
c
).� The state court shall consider
only the United States department of homeland security's determination when
deciding whether an employee is an unauthorized alien. The court may
take judicial notice of any verification of an individual's immigration status
previously provided by the United States department of homeland security and
may request that the United States department of homeland security provide
further automated or testimonial verification.

J. Any BUSINESS entity or employer
that terminates an employee to comply with this section is not liable for any
claims made against the business entity or employer by the terminated employee
if the termination is made without regard to the race, ethnicity or national
origin of the terminated employee and that the termination is consistent with
the antidiscrimination laws of this state and the united states.

K. If the applicable government
entity fails to suspend or revoke the license or permit as ordered by the
court, the government entity may not receive monies, grants or appropriations
from this state until the GOVERNMENT entity has complied with the court order
as verified by the attorney general.

L. Any resident of this state may
petition the attorney general to bring an enforcement action against a business
entity or employer by means of a written, signed petition.� A valid petition
shall include the allegation that describes the alleged violation, what actions
led to the violation and the date and location where the violation occurred.� A
petition that alleges a violation on the basis of race, ethnicity or national
origin is invalid and may not be acted on.� The attorney general shall respond
to any petition under this subsection within sixty days after receiving the
petition by either filing a civil complaint in a court of competent
jurisdiction or by INFORMING the petitioner in writing that the attorney
general has determined that filing a civil complaint is not warranted.

M. This section does not apply to:

1. An independent contractor or an
employer that hires independent contractors.

2. Casual domestic labor performed
within a household.

N. Entrapment is an affirmative
defense to a violation of this section.� To claim entrapment, the business
entity or employer:

1. Must admit by testimony or other
evidence the substantial elements of the violation.

2. Has the burden of proving by clear
and convincing evidence all of the following:

(
a
) The idea
for committing the violation began with law enforcement officers or their
agents rather than the business entity or employer.

(
b
) The law enforcement officers or their agents urged and
induced the business entity or employer to commit the violation.

(
c
) The business entity or employer was not predisposed to
commit the violation before the law enforcement officers or their agents urged
and induced the business entity or employer to commit the violation.

O. A county attorney and the attorney
general have the authority to bring a civil complaint in a court of competent
jurisdiction to enforce the requirements of this section.

C.

P.
Every
three months the attorney general shall request from the United States
department of homeland security a list of employers from this state that are
registered with the e-verify program.� On receipt of the list of employers, the
attorney general shall make the list available on the attorney general's
website.
END_STATUTE