Section 2812 Of Article 2.5. Electronic Employment Verification Systems From California Labor Code >> Division 3. >> Chapter 2. >> Article 2.5.

. 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.