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State Immigration Laws
Bad for Business?




                         1
Premises Of My Talk
 State immigration laws are bad ideas that do nothing other than
 encourage racial and ethnic divide and segregate entire states

 In no jurisdiction in the U.S. where these bills were passed have
 they “worked” to anyone’s benefit

 How did we get to this point?

 What should businesses in Texas and other states do?




                                                                     2
Let’s Review - Nationally
                    In 2011 and across all state legislatures:

                       1,592 immigration bills were introduced including 25 SB-1070
                       modeled bills

                          Five (5) SB1070-like bills were were signed into law (20% success rate)

                          157 other immigration bills became law (16% success rate)

                    Despite the hype and media coverage, harsh immigration failed
                    84% of the time in the year after SB 1070.




Source: National Council of State Legislators http://www.ncsl.org/default.aspx?TabId=23362          3
Let’s Review - Texas
 In the 2011 session, the Texas Legislature introduced 85
 immigration-related bills

  5 passed (94% failed)

  No SB1070-related bills passed

  No sanctuary city bills passed - including the special session

 Even in conservative Texas, harsh immigration bills failed to get out
 of committee




                                                                         4
Failure Rates
     Metric         National    Texas


  Percentages         84%        94%


 Baseball Batting
                     0.160      0.052
    Average


  Horse Racing      19-to-100   3-to-50




                                          5
Enacted Legislation - Texas
 Most dealt with criminal aliens, record keeping or investigative
 authorities

 None dealt with issues that affected business, labor or commerce
 in any major way

 In short, Texas business got away unscathed

 Other jurisdictions who have passed these bills weren’t so lucky...




                                                                       6
Farmers Branch, TX
                  Referendum passed on May 17, 2007 68% to 32%

                  Banned landlords from renting properties to undocumented
                  immigrants with loss of licenses and fines up to $500/day

                  Rationale: blamed rising unemployment and declines in the quality
                  of public education, property values, and public health care on
                  undocumented residents

                  Costs: Five years of litigation costing over $3.7M; businesses lost
                  customers and community suffers from poor PR



Source: http://www.aclu.org/immigrants-rights/anti-immigrant-ordinances-farmers-branch-texas   7
Prince William County, VA
 Passed July 10, 2007

 Ordinance requires PWC to check immigration status of any person at any
 time using “probable cause”

 Costs:

  $14.9M to train & enforce county officers, not county jurisdictional officers

  Foreclosures 3x regional level caused property values to plunge

  Business off 66% or worse within weeks

 Probable cause mandate repealed April 29, 2008



                                                                                8
Hazelton, PA
 Ordinance passed in September 2007

  Required employers to submit documentation to the town to prove
  work eligibility and status at the town’s request

  Allowed workers to sue employers for hiring undocumented workers

  Ordinance outlawed providing housing to undocumented residents.

 Results: $5M in lawsuit costs, increased vacancy rates, lower
 property values, businesses closed




                                                                     9
State of Oklahoma
                   Oklahoma Taxpayer & Citizen Protection Act of 2007 (HB1804) -
                   May 2007 bars employers from hiring undocumented workers,
                   revokes business licenses, makes it a felony to transport or shelter
                   the undocumented; denies drivers licenses and removes state
                   subsidies to the undocumented

                       Urban Institute found little impact on public services from departure of
                       the undocumented because they’re ineligible for benefits anyway

                       Oklahoma Bankers Association study reported a loss of 90,000
                       unauthorized workers and families left, the net GSP loss is $1.9B




Source: A Computable General Equilibrium (CGE) Analysis of the Impact of the Oklahoma Taxpayer and Citizen Protection Act of 2007   10
State of Arizona
 Legal Arizona Workers Act of 2007 - September 2007

  Mandated E-Verify statewide; imposed loss of business license
  penalties; allows any citizen to make allegations against any business

 Support Our Law Enforcement and Safe Neighborhoods Act of
 2010 (SB 1070) - July 29, 2010

  Made “attrition through enforcement” official state policy; makes it
  illegal to hire day laborers; mandates impounding of vehicles used to
  transport any undocumented person; prohibits “sanctuary city”
  policies; allows private lawsuits of any government entity



                                                                           11
State of Arizona
                    Impacts of LAWA

                       Has resulted in the hiring of fewer undocumented workers

                       Caused reduction of undocumented population of 92,000 unrelated to
                       the recession

                       Dramatic shift to cash-based, self-employment

                       Reduced employment in construction, retail, restaurant, and
                       agriculture businesses




Source: Public Policy Institute of California. www.ppic.org/content/pubs/report/R_311MLR.pdf   12
State of Arizona
 Impacts of SB 1070

  $5M to train law enforcement in how to enforce these laws

  $186M in near-term convention and related tourism losses

  $14.4B loss in Arizona GSP with departure of 30% undocumented
  workers and families; $48.4B if they all leave

  172,000 related job losses

  $40.7M loss in state tax revenues




                                                                  13
Sound Good?
Shrinking workforce
Significantl loss of consumers
Business layoffs & closures
Broad tax base decline
Home foreclosures up, values down
Damage to business climate
Loss of investment interest


                                    14
They Did It
Anyway
Alabama
Indiana
Georgia
South Carolina
Utah




                 15
Georgia: Learning The Hard Way
 Ignoring history and evidence of policy failures, GA bill was signed
 on May 12, 2011

 Georgia felt the impact in days

  Farmers lost field workers during prime spring fruit harvest season and
  the state’s Farm Bureau projected immediate losses at $330M

  Governor Deal called for impact study less than 2 weeks AFTER the
  law was passed

  “Pilot” convict employment program for agriculture failed miserably



                                                                           16
Alabama: Learning The Hard Way
 Also ignoring history, Alabama’s law signed on June 9, 2011

 Alabama felt the impact within days

  Construction industry stalled as workers leave, slowing down
  rebuilding process following spring tornado storms

  Many businesses will lay off workers or close because they have no
  expectation that “American” workers will do the work

  Long-term growers of crops that are hand-picked are switching to
  crops that can be mechanized



                                                                       17
Quiz
 Doing the same thing over and over and expecting a
 different result is the definition of...




                                                      18
Quiz
 Doing the same thing over and over and expecting a
 different result is the definition of...


            INSANITY


                                                      18
Quiz
 Doing the same thing over and over and expecting a
 different result is the definition of...


            INSANITY


                                                      18
How Did We Get Here?




                       19
How Did We Get Here?




                       19
How Do We Get Out Of This?
 Create and Support Active Coalitions

  Business, faith, legal, and community leaders speaking out

 Broad community outreach and education

  Private and public meetings with elected officials

  Proactive use of social and traditional media

 Fund these efforts well -- your opponents are!




                                                               20
Successful Examples
 The approach of building coalitions, education, proactive media
 use and legislative interaction works:

  Utah - - along with the Utah Compact (another coalition effort),
  defeated HB 70 and spawned creation of innovative guest worker
  programs

  Kansas - defeated Kris Kobach’s HB 2372 in committee

  Texas - defeated copycat bills in regular and special legislative session

  Arizona - defeated five SB1070 follow-on bills



                                                                              21
In Closing
 Down on the ground, in the field, in the trenches, with our sleeves rolled
 up, we know that coalitions can work wonders at the state house - create
 or join and support them

 Hold informational meetings throughout your state and invite everyone

 The message needs to be these laws don’t work anywhere, so why try
 them. What is past is prologue.

 Demand immigration reform become a Congressional issue - no one gets
 a pass

 Use the media, challenge every false statement and get in the game



                                                                             22
Thank You
 Todd Landfried
 Arizona Employers for Immigration Reform
 Email: todd@azeir.org

 www.azeir.org




                                            23

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U.T. Immigration Law Conference Presentation

  • 1. State Immigration Laws Bad for Business? 1
  • 2. Premises Of My Talk State immigration laws are bad ideas that do nothing other than encourage racial and ethnic divide and segregate entire states In no jurisdiction in the U.S. where these bills were passed have they “worked” to anyone’s benefit How did we get to this point? What should businesses in Texas and other states do? 2
  • 3. Let’s Review - Nationally In 2011 and across all state legislatures: 1,592 immigration bills were introduced including 25 SB-1070 modeled bills Five (5) SB1070-like bills were were signed into law (20% success rate) 157 other immigration bills became law (16% success rate) Despite the hype and media coverage, harsh immigration failed 84% of the time in the year after SB 1070. Source: National Council of State Legislators http://www.ncsl.org/default.aspx?TabId=23362 3
  • 4. Let’s Review - Texas In the 2011 session, the Texas Legislature introduced 85 immigration-related bills 5 passed (94% failed) No SB1070-related bills passed No sanctuary city bills passed - including the special session Even in conservative Texas, harsh immigration bills failed to get out of committee 4
  • 5. Failure Rates Metric National Texas Percentages 84% 94% Baseball Batting 0.160 0.052 Average Horse Racing 19-to-100 3-to-50 5
  • 6. Enacted Legislation - Texas Most dealt with criminal aliens, record keeping or investigative authorities None dealt with issues that affected business, labor or commerce in any major way In short, Texas business got away unscathed Other jurisdictions who have passed these bills weren’t so lucky... 6
  • 7. Farmers Branch, TX Referendum passed on May 17, 2007 68% to 32% Banned landlords from renting properties to undocumented immigrants with loss of licenses and fines up to $500/day Rationale: blamed rising unemployment and declines in the quality of public education, property values, and public health care on undocumented residents Costs: Five years of litigation costing over $3.7M; businesses lost customers and community suffers from poor PR Source: http://www.aclu.org/immigrants-rights/anti-immigrant-ordinances-farmers-branch-texas 7
  • 8. Prince William County, VA Passed July 10, 2007 Ordinance requires PWC to check immigration status of any person at any time using “probable cause” Costs: $14.9M to train & enforce county officers, not county jurisdictional officers Foreclosures 3x regional level caused property values to plunge Business off 66% or worse within weeks Probable cause mandate repealed April 29, 2008 8
  • 9. Hazelton, PA Ordinance passed in September 2007 Required employers to submit documentation to the town to prove work eligibility and status at the town’s request Allowed workers to sue employers for hiring undocumented workers Ordinance outlawed providing housing to undocumented residents. Results: $5M in lawsuit costs, increased vacancy rates, lower property values, businesses closed 9
  • 10. State of Oklahoma Oklahoma Taxpayer & Citizen Protection Act of 2007 (HB1804) - May 2007 bars employers from hiring undocumented workers, revokes business licenses, makes it a felony to transport or shelter the undocumented; denies drivers licenses and removes state subsidies to the undocumented Urban Institute found little impact on public services from departure of the undocumented because they’re ineligible for benefits anyway Oklahoma Bankers Association study reported a loss of 90,000 unauthorized workers and families left, the net GSP loss is $1.9B Source: A Computable General Equilibrium (CGE) Analysis of the Impact of the Oklahoma Taxpayer and Citizen Protection Act of 2007 10
  • 11. State of Arizona Legal Arizona Workers Act of 2007 - September 2007 Mandated E-Verify statewide; imposed loss of business license penalties; allows any citizen to make allegations against any business Support Our Law Enforcement and Safe Neighborhoods Act of 2010 (SB 1070) - July 29, 2010 Made “attrition through enforcement” official state policy; makes it illegal to hire day laborers; mandates impounding of vehicles used to transport any undocumented person; prohibits “sanctuary city” policies; allows private lawsuits of any government entity 11
  • 12. State of Arizona Impacts of LAWA Has resulted in the hiring of fewer undocumented workers Caused reduction of undocumented population of 92,000 unrelated to the recession Dramatic shift to cash-based, self-employment Reduced employment in construction, retail, restaurant, and agriculture businesses Source: Public Policy Institute of California. www.ppic.org/content/pubs/report/R_311MLR.pdf 12
  • 13. State of Arizona Impacts of SB 1070 $5M to train law enforcement in how to enforce these laws $186M in near-term convention and related tourism losses $14.4B loss in Arizona GSP with departure of 30% undocumented workers and families; $48.4B if they all leave 172,000 related job losses $40.7M loss in state tax revenues 13
  • 14. Sound Good? Shrinking workforce Significantl loss of consumers Business layoffs & closures Broad tax base decline Home foreclosures up, values down Damage to business climate Loss of investment interest 14
  • 16. Georgia: Learning The Hard Way Ignoring history and evidence of policy failures, GA bill was signed on May 12, 2011 Georgia felt the impact in days Farmers lost field workers during prime spring fruit harvest season and the state’s Farm Bureau projected immediate losses at $330M Governor Deal called for impact study less than 2 weeks AFTER the law was passed “Pilot” convict employment program for agriculture failed miserably 16
  • 17. Alabama: Learning The Hard Way Also ignoring history, Alabama’s law signed on June 9, 2011 Alabama felt the impact within days Construction industry stalled as workers leave, slowing down rebuilding process following spring tornado storms Many businesses will lay off workers or close because they have no expectation that “American” workers will do the work Long-term growers of crops that are hand-picked are switching to crops that can be mechanized 17
  • 18. Quiz Doing the same thing over and over and expecting a different result is the definition of... 18
  • 19. Quiz Doing the same thing over and over and expecting a different result is the definition of... INSANITY 18
  • 20. Quiz Doing the same thing over and over and expecting a different result is the definition of... INSANITY 18
  • 21. How Did We Get Here? 19
  • 22. How Did We Get Here? 19
  • 23. How Do We Get Out Of This? Create and Support Active Coalitions Business, faith, legal, and community leaders speaking out Broad community outreach and education Private and public meetings with elected officials Proactive use of social and traditional media Fund these efforts well -- your opponents are! 20
  • 24. Successful Examples The approach of building coalitions, education, proactive media use and legislative interaction works: Utah - - along with the Utah Compact (another coalition effort), defeated HB 70 and spawned creation of innovative guest worker programs Kansas - defeated Kris Kobach’s HB 2372 in committee Texas - defeated copycat bills in regular and special legislative session Arizona - defeated five SB1070 follow-on bills 21
  • 25. In Closing Down on the ground, in the field, in the trenches, with our sleeves rolled up, we know that coalitions can work wonders at the state house - create or join and support them Hold informational meetings throughout your state and invite everyone The message needs to be these laws don’t work anywhere, so why try them. What is past is prologue. Demand immigration reform become a Congressional issue - no one gets a pass Use the media, challenge every false statement and get in the game 22
  • 26. Thank You Todd Landfried Arizona Employers for Immigration Reform Email: todd@azeir.org www.azeir.org 23

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