As reported yesterday, the 11th Circuit enjoined Sections 27 and 30 of HB 56. After reading the very short Order, there is not much more to add. The Order, just barely over one page long, has no reasoning or opinion other than ":We conclude that the plaintiffs in these matters have met their burden as to"...these 2 sections.
Section 27 provides in substance that an Alabama court cannot enforce the terms of a contract between a party and an alien unlawfully present in the US if the party had direct or constructive knowledge that the person was in the US unlawfully at the time the contract was entered into, and the contract required the alien to remain unlawfully in the US for more than 24 hours after the time the contract was entered into or performance could not reasonably be expected to occur without such remaining. This section does NOT apply to a contract for lodging for one night, the purchase of food to be consumed by the alien, a contract for medical services or a contract for transportation if it is intended to facilitate the alien's return to his or her country of origin.
Section 30 prohibits an alien not lawfully present in the US, or a person acting on their behalf, from entering or attempting to enter into a business transaction with the state or a political subdivision of the state. Any person entering into a business transaction with the state or political subdivision of the state shall be required to demonstrate his/her US citizenship, or if an alien, their lawful presence in the US. A violation of this section is a class C felony. The court interprets Section 30 as prohibiting unlawfully present aliens from contracting with state and local governments, applying for or renewing drivers' licenses and identification cards, and applying for and renewing motor vehicle license plates.
Practice pointer. It looks like all the paperwork that has been distributed by state or local agencies concerning compliance with the law may be unnecessary at this time. I know that many businesses have completed affidavits of compliance pursuant to Section 30. Remember, that the E-Verify provisions of HB 56 have not been challenged and are still in place: all businesses contracting with state or other public entities were required to use E-Verify as of January 1, 2012, and ALL BUSINESSES must use E-Verify for new employees on or before April 1, 2012.