Cal. LAB § 2812

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.