84R9110 MTB-F By: Hall S.B. No. 1841 A BILL TO BE ENTITLED AN ACT relating to the verification of employment authorization by governmental entities, state contractors, and state grant recipients, including the use of the federal E-verify program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle A, Title 6, Government Code, is amended by adding Chapter 619 to read as follows: CHAPTER 619. VERIFICATION OF EMPLOYEE INFORMATION Sec. 619.001. DEFINITIONS. In this chapter: (1) "E-verify program" means the electronic verification of employment authorization program of the federal Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Pub. L. No. 104-208, reprinted in note, 8 U.S.C. Section 1324a), operated by the United States Department of Homeland Security, or a successor employment authorization program designated by the United States Department of Homeland Security or other federal agency authorized to verify the employment authorization status of newly hired employees under the federal Immigration Reform and Control Act of 1986 (8 U.S.C. Section 1101 et seq.). (2) "Governmental entity" means: (A) the state; or (B) a political subdivision of the state, including a municipality, a county, or any kind of district. Sec. 619.002. VERIFICATION. A governmental entity shall: (1) register and participate in the E-verify program to verify information of all new employees; or (2) verify the employment authorization status of all new employees by requiring each employee to provide an unexpired United States passport or: (A) one of the following documents: (i) an original or certified copy of a birth certificate issued by a bureau of vital statistics for a state; (ii) a Consular Report of Birth Abroad or Certificate of Birth Abroad issued by the United States Department of State; (iii) a Certificate of United States Citizenship issued by the federal Department of Homeland Security or the United States Department of State including an identification photograph; or (iv) a Certificate of Naturalization issued by the federal Department of Homeland Security or the United States Department of State including an identification photograph; and (B) one of the following documents: (i) an unexpired driver's license or identification card issued by a state; (ii) an unexpired federal, state, or local government identification card; or (iii) an unexpired military identification card for active duty, reserve, or retired personnel with an identification photograph. Sec. 619.003. RULES. The Texas Workforce Commission shall adopt rules and prescribe forms to implement this chapter. SECTION 2. The heading to Chapter 2264, Government Code, is amended to read as follows: CHAPTER 2264. CERTAIN RESTRICTIONS ON [USE OF CERTAIN] PUBLIC SUBSIDIES AND STATE CONTRACTS SECTION 3. Section 2264.101, Government Code, is transferred to Subchapter B, Chapter 2264, Government Code, redesignated as Section 2264.054, Government Code, and amended to read as follows: Sec. 2264.054 [2264.101]. RECOVERY. (a) A public agency, local taxing jurisdiction, or economic development corporation, or the attorney general on behalf of the state or a state agency, may bring a civil action to recover any amounts owed to the public agency, state or local taxing jurisdiction, or economic development corporation under this subchapter [chapter]. (b) The public agency, local taxing jurisdiction, economic development corporation, or attorney general, as applicable, shall recover court costs and reasonable attorney's fees incurred in an action brought under Subsection (a). (c) A business is not liable for a violation of this subchapter [chapter] by a subsidiary, affiliate, or franchisee of the business, or by a person with whom the business contracts. SECTION 4. The heading to Subchapter C, Chapter 2264, Government Code, is amended to read as follows: SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT] SECTION 5. Subchapter C, Chapter 2264, Government Code, is amended by adding Sections 2264.1011, 2264.102, 2264.103, and 2264.104 to read as follows: Sec. 2264.1011. DEFINITIONS. In this subchapter: (1) "E-verify program" means the electronic verification of employment authorization program of the federal Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Pub. L. No. 104-208, reprinted in note, 8 U.S.C. Section 1324a), operated by the United States Department of Homeland Security, or a successor employment authorization program designated by the United States Department of Homeland Security or other federal agency authorized to verify the employment authorization status of newly hired employees under the federal Immigration Reform and Control Act of 1986 (8 U.S.C. Section 1101 et seq.). (2) "State agency" has the meaning assigned by Section 2103.001. Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state agency may not award a contract for goods or services within this state to a contractor unless the contractor: (1) registers with and participates in the E-verify program to verify information of all new employees; or (2) verifies the employment authorization status of all new employees by requiring each employee to provide an unexpired United States passport or: (A) one of the following documents: (i) an original or certified copy of a birth certificate issued by a bureau of vital statistics for a state; (ii) a Consular Report of Birth Abroad or Certificate of Birth Abroad issued by the United States Department of State; (iii) a Certificate of United States Citizenship issued by the federal Department of Homeland Security or the United States Department of State including an identification photograph; or (iv) a Certificate of Naturalization issued by the federal Department of Homeland Security or the United States Department of State including an identification photograph; and (B) one of the following documents: (i) an unexpired driver's license or identification card issued by a state; (ii) an unexpired federal, state, or local government identification card; or (iii) an unexpired military identification card for active duty, reserve, or retired personnel with an identification photograph. (b) Each contract with a state agency must include the following statement: "______________ (name of contractor) certifies that __________ (name of contractor) is not ineligible to receive this contract under Subchapter C, Chapter 2264, Government Code, and acknowledges that if this certification is inaccurate, the contractor may be barred from participating in state contracts." (c) If a state agency determines that a contractor was ineligible to have the contract awarded under Subsection (a), the state agency shall refer the matter to the comptroller for action. (d) Each state agency shall develop procedures for the administration of this section. Sec. 2264.103. BARRING FROM STATE CONTRACTS. (a) Using procedures prescribed under Section 2155.077, the comptroller shall bar a contractor from participating in state contracts if the comptroller determines that the contractor was awarded a contract in violation of Section 2264.102. (b) Debarment under this section is for a period of one year. Sec. 2264.104. VERIFICATION BY GRANT RECIPIENTS. (a) A state agency may not award a grant unless the grant recipient: (1) registers with and participates in the E-verify program to verify information of all new employees; or (2) verifies the employment authorization status of all new employees by requiring each employee to provide an unexpired United States passport or: (A) one of the following documents: (i) an original or certified copy of a birth certificate issued by a bureau of vital statistics for a state; (ii) a Consular Report of Birth Abroad or Certificate of Birth Abroad issued by the United States Department of State; (iii) a Certificate of United States Citizenship issued by the federal Department of Homeland Security or the United States Department of State including an identification photograph; or (iv) a Certificate of Naturalization issued by the federal Department of Homeland Security or the United States Department of State including an identification photograph; and (B) one of the following documents: (i) an unexpired driver's license or identification card issued by a state; (ii) an unexpired federal, state, or local government identification card; or (iii) an unexpired military identification card for active duty, reserve, or retired personnel with an identification photograph. (b) Each grant contract or agreement with a state agency must include the following statement: "______________ (name of grant recipient) certifies that __________ (name of grant recipient) is not ineligible to receive this grant under Subchapter C, Chapter 2264, Government Code, and acknowledges that if this certification is inaccurate, the grant may be terminated without further payment." (c) If a state agency determines that a grant recipient was ineligible to have the grant awarded under Subsection (a), the state agency shall notify the grant recipient in writing that the grant recipient must comply with Subsection (a) before the 31st day after the date the grant recipient is notified. (d) The state agency shall terminate the grant without further obligation to the grant recipient on the 31st day after the date the grant recipient is notified under Subsection (c) if, before that date, the grant recipient has not provided evidence that the grant recipient has complied with Subsection (a). (e) Each state agency shall develop procedures for the administration of this section. SECTION 6. The Texas Workforce Commission and each state agency subject to Subchapter C, Chapter 2264, Government Code, as amended by this Act, shall develop the rules and procedures required under Sections 619.003, 2264.102(d), and 2264.104(e), Government Code, as added by this Act, as applicable, not later than October 1, 2015. SECTION 7. Sections 2264.1011, 2264.102, 2264.103, and 2264.104, Government Code, as added by this Act, apply only in relation to a: (1) contract for which the request for bids or proposals or other applicable expressions of interest is made public on or after the effective date of this Act; and (2) grant for which the notice of funds availability or of funding opportunity is made public on or after the effective date of this Act. SECTION 8. This Act takes effect September 1, 2015.