Rhode Island is changing.

As parts of the traditional economy fade, others are emerging. One of the biggest growth areas involves Latinos.

Consider.

The latest census shows the population of Hispanics in the state has more than doubled since 1990 to 117,000. The number of Latino-owned businesses here jumped to 3,415 in 2002, or 11 percent of all companies. Analysts forecast that the Latino population and business community will continue to grow, creating an economic force of consumer buying power and small-business job creation.

That expansion, however, hit a snag after Governor Carcieri issued an executive order to control illegal immigration. Among several directives, the order requires that all companies doing business with the state must use a federal system, called E-Verify, to determine the legal status of workers.

Some Latino small business owners, and advocates, reacted swiftly to the mandate, saying it will add costs and other burdens on their companies and erect new hurdles to doing business here.

Listen to Juana Horton, owner of Horton Interpreting Inc. and chairwoman of the Hispanic American Chamber of Commerce of Rhode Island, which issued a statement of “concern” about the order.

“The cost, technological demands and staff time the E-Verify system requires comes at a time when small businesses are struggling already,” she said. “Implementation of this system will also increase existing discrimination issues facing all minority business owners.”

While the governor’s order applies to vendors, contractors and subcontractors that do business with the state, legislation is being considered at the State House to require all Rhode Island employers with three or more workers to use the E-Verify system.

Horton said that mandate would add another level of red tape for all small businesses to unravel.

The Hispanic Chamber, with 125 members, is a partner organization with the Greater Providence Chamber of Commerce, the largest business lobbying group in the state. The Greater Providence Chamber of Commerce has taken no position on the governor’s order.

Laurie White, the Chamber president, said she is researching the E-Verify system and compiling information about the requirements for companies that want to do business with the state

Carcieri said he issued the executive order because of federal inaction on immigration reform –– inaction that he said led to an “epidemic” flow of illegal immigrants, leaving taxpayers to bear “the consequential costs.”

He has also talked about the order in the context of the state’s budget crisis, and the drain that illegal immigrants have on taxpayer-financed services.

But here’s the problem with the dispute between Carcieri and the Latino small business owners –– nobody’s arguing from a solid base of facts.

Neither Carcieri nor or his aides can pinpoint how many illegal immigrants are in Rhode Island or what they are costing in state services. The officials are also not clear about whether the costs created by undocumented immigrants outweigh their economic benefit to the state.

On the other side, the small-business owners don’t put a number on what it would cost them in time or money to implement the order. Small-business owners are always complaining about unfunded mandates.

So, in the vacuum of clear, hard facts, there has been a lot of divisive shouting, finger-pointing and charges of “insensitivity and discrimination.”

Is that what the governor wanted?

Wouldn’t it have been better if Carcieri, a former business executive, had marshaled all the facts he could and then begun discussions with everyone affected, before rolling out a new, controversial public policy? That’s what business people do to gather support for a new product or service. Otherwise, you run the risk of antagonizing the community you are trying to reach.

To try to sort out some of the issues, I talked with Christine Cunneen, co-owner of Hire Image, a background-screening company based in Johnston.

She said that right now there are only 75 Rhode Island companies registered to use the E-Verify system.

Employers who want to use it have to sign up for a five- to six-hour online tutorial. Then the user has to pass a test showing mastery of the system.

Employers enter the name, date of birth and Social Security number of new hires. The information is submitted to the Social Security Administration and the Department of Homeland Security. If the information comes back verified as “worker eligible,” the employer then gets a confirmation number.

If the information comes back “tentative non-confirmation,” then the employee has eight days to challenge it and try to clean up the record. The employer has to keep the worker on while the discrepancy is worked out. If the worker doesn’t contest the finding or can’t resolve the dispute, he can be fired.

Using the E-Verify system also opens the employer to an audit by the Department of Homeland Security.

Cunneen said the verification process can be confusing and cumbersome.

She added, “There have been some troubles with the system.” For example, if a person gets married and the name hasn’t been changed with Social Security, the E-Verify system may not verify the eligibility of the worker.

“A lot of non-confirmations have come back,” she said. “It’s the biggest issue with the system.”

Cunneen said she expects E-Verify will be revised or a whole new system created because of the pressure building in Washington to create a federal system that checks a worker’s status.

Another federal system currently in use is called I-9, in which employers ask workers for information, such as Social Security cards or visas, to document their status. But there is no electronic, master database check.

Horton said she uses the I-9 program.

“We do not condone the hiring of undocumented workers,” she said, “The governor’s order is not a smart policy to implement because it has more questions than answers with a flawed system.”

She also said Carcieri could have done a better job reaching out to the Latino community before he issued his order to explain his goals and to listen to the concerns.

Here’s the contrast.

During last week’s debate, 25 Latino and Anglo business owners, bankers, buyers, managers and consultants gathered at the old Hope Club in Providence at a networking meeting of the World Affairs Council Of Rhode Island, a nonprofit group.

They shared and discussed ideas about marketing, media and how to reach customers to expand their businesses. They laughed about language mistakes when people from different cultures interact. They all left a lot smarter, with new ideas for making money.

In all of last week’s noise at the State House, one thing is clear.

When people talk to each other using the facts to resolve disputes, business gets done.

And all Rhode Islanders benefit.E-Verify seminar

Personnel from the Department of Homeland Security and two private companies, Hire Image, a background screening company, and USI New England, an insurance company, will conduct a seminar on registering for the E-Verify system and immigration laws from 8:30 to 10:30 a.m. on April 25 at the Providence Marriott. Admission is free.

jkostrze@projo.com