Texas 2023 - 88th Regular

Texas Senate Bill SB1621 Compare Versions

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1	1	By: Kolkhorst, Middleton S.B. No. 1621
2	2	(In the Senate - Filed March 6, 2023; March 16, 2023, read
3	3	first time and referred to Committee on Business & Commerce;
4	4	May 3, 2023, reported adversely, with favorable Committee
5	5	Substitute by the following vote: Yeas 7, Nays 4; May 3, 2023, sent
6	6	to printer.)
7	7	COMMITTEE SUBSTITUTE FOR S.B. No. 1621 By: Kolkhorst
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to requiring state contractors, political subdivisions of
13	13	this state, and private employers to participate in the federal
14	14	electronic verification of employment authorization program, or
15	15	E-verify.
16	16	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	17	SECTION 1. The heading to Chapter 2264, Government Code, is
18	18	amended to read as follows:
19	19	CHAPTER 2264. CERTAIN RESTRICTIONS ON [USE OF CERTAIN] PUBLIC
20	20	SUBSIDIES AND STATE CONTRACTS
21	21	SECTION 2. Section 2264.101, Government Code, is
22	22	transferred to Subchapter B, Chapter 2264, Government Code,
23	23	redesignated as Section 2264.054, Government Code, and amended to
24	24	read as follows:
25	25	Sec. 2264.054 [2264.101]. RECOVERY. (a) A public agency,
26	26	local taxing jurisdiction, or economic development corporation, or
27	27	the attorney general on behalf of the state or a state agency, may
28	28	bring a civil action to recover any amounts owed to the public
29	29	agency, state or local taxing jurisdiction, or economic development
30	30	corporation under this subchapter [chapter].
31	31	(b) The public agency, local taxing jurisdiction, economic
32	32	development corporation, or attorney general, as applicable, shall
33	33	recover court costs and reasonable attorney's fees incurred in an
34	34	action brought under Subsection (a).
35	35	(c) A business is not liable for a violation of this
36	36	subchapter [chapter] by a subsidiary, affiliate, or franchisee of
37	37	the business, or by a person with whom the business contracts.
38	38	SECTION 3. The heading to Subchapter C, Chapter 2264,
39	39	Government Code, is amended to read as follows:
40	40	SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT]
41	41	SECTION 4. Subchapter C, Chapter 2264, Government Code, is
42	42	amended by adding Sections 2264.1011, 2264.102, and 2264.103 to
43	43	read as follows:
44	44	Sec. 2264.1011. DEFINITIONS. In this subchapter:
45	45	(1) "E-verify program" has the meaning assigned by
46	46	Section 673.001.
47	47	(2) "State agency" has the meaning assigned by Section
48	48	2103.001.
49	49	Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state
50	50	agency may not award a contract for goods or services within this
51	51	state to a contractor unless the contractor and any subcontractor
52	52	register with and participate in the E-verify program to verify
53	53	employee information. The contractor and any subcontractor must
54	54	continue to participate in the program during the term of the
55	55	contract.
56	56	(b) Each contract with a state agency must include the
57	57	following statement:
58	58	"______________ (name of contractor) certifies that
59	59	__________ (name of contractor) is not ineligible to receive this
60	60	contract under Subchapter C, Chapter 2264, Government Code, and
61	61	acknowledges that if this certification is inaccurate or becomes
62	62	inaccurate during the term of the contract, the contractor may be
63	63	barred from participating in state contracts."
64	64	(c) If a state agency determines that a contractor was
65	65	ineligible to have the contract awarded under Subsection (a), that
66	66	a contractor has ceased participation in the E-verify program
67	67	during the term of the contract, or that a subcontractor is not
68	68	registered with or is not participating in the E-verify program,
69	69	the state agency shall refer the matter to the comptroller for
70	70	action.
71	71	(d) Each state agency shall develop procedures for the
72	72	administration of this section.
73	73	Sec. 2264.103. BARRING FROM STATE CONTRACTS. (a) Using
74	74	procedures prescribed under Section 2155.077, the comptroller may
75	75	bar a contractor from participating in state contracts if the
76	76	comptroller determines that the contractor:
77	77	(1) was awarded a contract in violation of Section
78	78	2264.102;
79	79	(2) has ceased participation in the E-verify program
80	80	during the term of the contract; or
81	81	(3) knowingly hired a subcontractor, other than a
82	82	subcontractor who acts exclusively as a supplier for the contract,
83	83	to perform work under the contract who is not registered with or is
84	84	not participating in the E-verify program.
85	85	(b) Debarment under this section is for a period of one year
86	86	except that the debarment may be extended by the comptroller for
87	87	additional one-year periods if the comptroller determines that the
88	88	grounds for debarment under this section continue to exist.
89	89	(c) It is an affirmative defense to a debarment proceeding
90	90	under this section that the contractor did not know that a
91	91	subcontractor hired to perform work under the contract is not
92	92	registered with or is not participating in the E-verify program.
93	93	SECTION 5. Subtitle B, Title 2, Labor Code, is amended by
94	94	adding Chapter 53 to read as follows:
95	95	CHAPTER 53. VERIFICATION OF EMPLOYEE INFORMATION
96	96	Sec. 53.001. DEFINITIONS. In this chapter:
97	97	(1) "Commission" means the Texas Workforce
98	98	Commission.
99	99	(2) "Employee" means an individual who is employed by
100	100	an employer for compensation. The term includes an individual
101	101	employed on a part-time basis.
102	102	(3) "Employer" means a person, other than a
103	103	governmental entity or a sole proprietorship, who:
104	104	(A) employs one or more employees; or
105	105	(B) acts directly or indirectly in the interests
106	106	of an employer in relation to an employee.
107	107	(4) "Employment" means any service, including service
108	108	in interstate commerce, that is performed for wages or under a
109	109	contract of hire, whether written or oral or express or implied.
110	110	The term does not include any service performed by an individual for
111	111	wages if it is shown that the individual is free from control or
112	112	direction in the performance of the service, both under any
113	113	contract of service and in fact.
114	114	(5) "E-verify program" has the meaning assigned by
115	115	Section 673.001, Government Code.
116	116	Sec. 53.002. EMPLOYEE STATUS. An employer may not classify
117	117	an individual performing services for the employer as an
118	118	independent contractor instead of as an employee of the employer
119	119	solely for the purpose of avoiding the requirements applicable to
120	120	an employer under this chapter.
121	121	Sec. 53.003. VERIFICATION. An employer shall register and
122	122	participate in the E-verify program to verify information of all
123	123	new employees.
124	124	Sec. 53.004. ENFORCEMENT BY STATE AGENCIES; RULES. (a)
125	125	Notwithstanding any other law, each appropriate state agency shall
126	126	ensure that employers in this state comply with Section 53.003 and
127	127	may require compliance with that section as a condition of a
128	128	license, certificate, registration, permit, or other authorization
129	129	issued by the agency that is required for a person to practice or
130	130	engage in a particular business, occupation, or profession in this
131	131	state.
132	132	(b) Each appropriate state agency shall adopt rules and
133	133	prescribe forms as necessary to implement this section.
134	134	SECTION 6. Subtitle C, Title 5, Local Government Code, is
135	135	amended by adding Chapter 181 to read as follows:
136	136	CHAPTER 181. VERIFICATION OF EMPLOYEE INFORMATION
137	137	Sec. 181.001. DEFINITIONS. In this chapter:
138	138	(1) "E-verify program" has the meaning assigned by
139	139	Section 673.001, Government Code.
140	140	(2) "Political subdivision" means a county,
141	141	municipality, school district, junior college district, other
142	142	special district, or other subdivision of state government.
143	143	Sec. 181.002. VERIFICATION. A political subdivision shall
144	144	register and participate in the E-verify program to verify
145	145	information of all new employees.
146	146	Sec. 181.003. TERMINATION OF EMPLOYMENT. An employee of a
147	147	political subdivision who is responsible for verifying information
148	148	of new employees of the political subdivision as required by
149	149	Section 181.002 is subject to immediate termination of employment
150	150	if the employee fails to comply with that section.
151	151	SECTION 7. Each state agency subject to Subchapter C,
152	152	Chapter 2264, Government Code, as amended by this Act, shall
153	153	develop the procedures required under Section 2264.102(d),
154	154	Government Code, as added by this Act, not later than December 31,
155	155	2023.
156	156	SECTION 8. Sections 2264.1011, 2264.102, and 2264.103,
157	157	Government Code, as added by this Act, apply only in relation to a
158	158	contract for which the request for bids or proposals or other
159	159	applicable expression of interest is made public on or after the
160	160	effective date of this Act.
161	161	SECTION 9. As soon as practicable after the effective date
162	162	of this Act, each appropriate state agency subject to Section
163	163	53.004, Labor Code, as added by this Act, shall adopt rules and
164	164	prescribe forms as required by that section.
165	165	SECTION 10. Sections 53.003, Labor Code, and 181.002, Local
166	166	Government Code, as added by this Act, apply beginning January 1,
167	167	2025.
168	168	SECTION 11. This Act takes effect September 1, 2023.
169	169	* * * * *