Except as required by federal law, or as a condition of receiving federal funds, neither the state nor a city, county, city and county, or special district shall require an employer to use an electronic employment verification system, including under the following circumstances:
(a) As a condition of receiving a government contract.
(b) As a condition of applying for or maintaining a business license.
(c) As a penalty for violating licensing or other similar laws.
(Added by Stats. 2011, Ch. 691, Sec. 2. (AB 1236) Effective January 1, 2012.)