Thursday, legal immigrants and human rights leaders turned out in force to show their opposition to Republican Representative Larry Lockman's proposal.
If his bill is approved by the legislature, it would require local governments to obey all federal immigration laws.
The legislation would require the Maine State Attorney General to investigate with the possibility of the state funding being withheld.
Opponents of the measure rallied outside the State House before the public hearing, including an Ethiopian native who is a Hampden Academy student.
Ethiopian Native, Rebekah Novak stated "Moving to Maine has been one of the best experiences of my life because of the people here. They are so open-minded and loving and caring. This bill is basically saying they want to take that all away, and make it so I'm scared to go out by myself."
Lockman's proposal said a person could sue a town or city if they harbored an illegal immigrant who later hurt them or a family member.
The Judiciary Committee members are expected to discuss the issue in more depth within the next few weeks.