89R610 RDS-D
By: Tepper H.B. No. 1308
A BILL TO BE ENTITLED
AN ACT
relating to employment practices of governmental entities, state
contractors, and private employers in this state regarding the
legal status of employees, including requiring participation in the
federal electronic verification of employment authorization
program, or E-verify program, and authorizing the suspension of
certain licenses held by private employers for certain conduct in
relation to the employment of persons not lawfully present.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. 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 3. The heading to Subchapter C, Chapter 2264,
Government Code, is amended to read as follows:
SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT]
SECTION 4. Subchapter C, Chapter 2264, Government Code, is
amended by adding Sections 2264.1011, 2264.102, and 2264.103 to
read as follows:
Sec. 2264.1011. DEFINITIONS. In this subchapter:
(1) "E-verify program" has the meaning assigned by
Section 673.001.
(2) "State agency" has the meaning assigned by Section
2103.001.
Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) Except as
provided by Subsection (b), a state agency may not award a contract
for goods or services within this state to a contractor unless the
contractor and any subcontractor register with and participate in
the E-verify program to verify employee information. The
contractor and any subcontractor must continue to participate in
the program during the term of the contract.
(b) This section does not apply to a contract for goods or
services:
(1) a state agency determines is necessary to the
operation of the agency; and
(2) for which the agency can find no reasonable
alternative to a bid submitted by a contractor that does not
participate in the E-verify program or require its subcontractors
to participate in the E-verify program.
(c) Each contract with a state agency must include the
following statement:
"The contractor certifies that the contractor is not
ineligible to receive this contract under Subchapter C, Chapter
2264, Government Code, and acknowledges that if this certification
is inaccurate or becomes inaccurate during the term of the
contract, the contractor may be barred from participating in state
contracts."
(d) If a state agency determines that a contractor was
ineligible to have the contract awarded under Subsection (a), that
a contractor has ceased participation in the E-verify program
during the term of the contract, or that a subcontractor is not
registered with or is not participating in the E-verify program,
the state agency shall refer the matter to the comptroller for
action.
(e) 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 may
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 or, in violation of Section
2264.102:
(1) has ceased participation in the E-verify program
during the term of the contract; or
(2) knowingly hired a subcontractor, other than a
subcontractor who acts exclusively as a supplier for the contract,
to perform work under the contract who is not registered with or is
not participating in the E-verify program.
(b) Debarment under this section is for a period of one year
except that the debarment may be extended by the comptroller for
additional one-year periods if the comptroller determines that the
grounds for debarment under this section continue to exist.
(c) It is an affirmative defense to a debarment proceeding
under this section that the contractor did not know that a
subcontractor hired to perform work under the contract is not
registered with or is not participating in the E-verify program.
SECTION 5. Subtitle A, Title 6, Government Code, is amended
by adding Chapter 621 to read as follows:
CHAPTER 621. VERIFICATION OF EMPLOYEE INFORMATION; EMPLOYMENT OF
PERSONS NOT LAWFULLY PRESENT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 621.001. DEFINITIONS. In this chapter:
(1) "E-verify program" has the meaning assigned by
Section 673.001.
(2) "Governmental entity" has the meaning assigned by
Section 620.001, except that the term includes a school district or
open-enrollment charter school.
(3) "Person not lawfully present" means a person who,
at the time of employment, is not:
(A) a citizen or national of the United States;
or
(B) an alien who is lawfully admitted for
permanent residence in the United States under the federal
Immigration and Nationality Act (8 U.S.C. Section 1101 et seq.) or
authorized to be employed by that Act or by the United States
attorney general.
SUBCHAPTER B. VERIFICATION OF EMPLOYEE INFORMATION
Sec. 621.051. E-VERIFY PROGRAM. (a) A governmental entity
shall register and participate in the E-verify program to verify
information of all new employees.
(b) This section may not be construed as limiting a
requirement imposed on a state agency under Chapter 673.
SUBCHAPTER C. EMPLOYMENT OF PERSONS NOT LAWFULLY PRESENT
Sec. 621.101. PROHIBITED EMPLOYMENT. A governmental entity
may not knowingly hire, employ, recruit, or refer for a fee a person
not lawfully present.
SUBCHAPTER D. ENFORCEMENT
Sec. 621.151. REPORTING VIOLATION. (a) A person who has a
reasonable belief that a governmental entity violated this chapter
may report the allegation to the attorney general.
(b) The person alleging a violation under Subsection (a)
must, to the extent known by the person, provide to the attorney
general:
(1) the name, address, and telephone number of the
person filing the report;
(2) the name and address of the governmental entity;
(3) if applicable, the name of the person alleged to be
a person not lawfully present who has performed or will perform work
for the governmental entity;
(4) the information that caused the person to make the
report and the source of the information; and
(5) any other information relevant to the allegation.
Sec. 621.152. INVESTIGATION. (a) On receipt of a report
made under Section 621.151, the attorney general shall determine
whether reasonable cause exists to merit an investigation of the
allegation. If the attorney general determines reasonable cause
exists, the attorney general shall conduct an investigation.
(b) A governmental entity must comply with reasonable
requests for documents or other information made by the attorney
general during an investigation conducted under this section,
including a request for:
(1) documents related to the legal status of an
employee;
(2) if applicable, evidence related to the entity's
affirmative defense under Section 621.153;
(3) documents related to the entity's finances and
operations; or
(4) other documents or information the attorney
general determines necessary for conducting the investigation.
(c) The attorney general may request the assistance of the
Department of Public Safety and local law enforcement entities to
ensure compliance with this section.
(d) In conducting an investigation under this section, the
attorney general may not interview a minor or collect information
related to a minor without first obtaining consent from the minor's
parent or legal guardian.
(e) Information the attorney general obtains during an
investigation under this section is confidential and excepted from
disclosure under Chapter 552 but may be used in an administrative
proceeding under this chapter at the attorney general's discretion.
Sec. 621.153. AFFIRMATIVE DEFENSE. It is an affirmative
defense to a proceeding under this subchapter in relation to an
alleged violation of Subchapter C that the governmental entity
complied in good faith with the document review requirements
described by the federal Immigration Reform and Control Act of 1986
(8 U.S.C. Section 1324a(b)).
Sec. 621.154. DETERMINATION BY ATTORNEY GENERAL;
OPPORTUNITY TO CURE. (a) If the attorney general determines under
Section 621.152 that a governmental entity violated this chapter,
the attorney general shall provide written notice of the
determination to the entity. The notice must explain the
governmental entity's options for taking corrective action to cure
the violation, which must include:
(1) for a violation under Section 621.051, submitting
to the attorney general evidence that the entity has registered and
is participating in the E-verify program to verify information of
all new employees; or
(2) for a violation under Section 621.101, submitting
to the attorney general, as applicable:
(A) evidence that the person not lawfully present
is no longer employed by or working for the entity; or
(B) a sworn statement attesting that the entity
has ceased and will continue to cease recruiting or referring for a
fee persons not lawfully present.
(b) On receipt of notice from the attorney general under
Subsection (a), the governmental entity shall take appropriate
corrective action to cure the violation. Not later than the 10th
business day after the date the governmental entity receives the
notice, the entity must notify the attorney general of the
corrective action taken by the entity to cure the violation.
(c) If the attorney general determines that the
governmental entity has taken appropriate corrective action under
Subsection (b), the attorney general shall close the investigation
and promptly notify the entity accordingly.
Sec. 621.155. STATE GRANT FUNDING ELIGIBILITY. (a) A
governmental entity is ineligible to receive grant funding from
this state if:
(1) the entity fails to reply to the attorney general's
notice under Section 621.154; or
(2) the attorney general determines that the
corrective action taken by the entity under that section did not
cure the entity's violation.
(b) The attorney general shall provide to a governmental
entity described by Subsection (a) written notice, as applicable,
that:
(1) the entity:
(A) is in violation of this chapter;
(B) is ineligible to receive grant funding from
this state; and
(C) may take appropriate corrective action to
cure the violation and become eligible to receive state grant
funding; or
(2) the entity:
(A) has failed to reply to the attorney general's
notice under Section 621.154;
(B) is ineligible to receive grant funding from
the state; and
(C) may reply to the notice and become eligible
to receive state grant funding.
Sec. 621.156. COMPTROLLER RECORDS. (a) The comptroller
shall maintain a list of governmental entities identified by the
attorney general under Subsection (b) for purposes of ensuring that
an entity included in the list does not receive grant funding from
this state.
(b) At the time the attorney general sends notice to a
governmental entity under Section 621.155(b), the attorney general
shall provide to the comptroller the identity of the entity for
inclusion in the list the comptroller maintains under Subsection
(a).
(c) Information provided to the comptroller by the attorney
general under this section is confidential and excepted from
disclosure under Chapter 552.
Sec. 621.157. REINSTATEMENT OF GRANT ELIGIBILITY. (a) A
governmental entity may request that the attorney general reinstate
the entity's eligibility to receive grant funding from this state
by notifying the attorney general, as appropriate, of:
(1) corrective action taken by the entity to cure the
violation; or
(2) the entity's reply to the attorney general's
notice under Section 621.154.
(b) If the attorney general determines that the corrective
action taken by the governmental entity cured the violation or that
the entity's reply is responsive to the notice, as appropriate, the
entity becomes eligible to receive grant funding from this state.
(c) At the time the attorney general makes a determination
under Subsection (b), the attorney general shall instruct the
comptroller to remove the governmental entity from the list the
comptroller maintains under Section 621.156, and the comptroller
shall remove the entity from the list.
SECTION 6. Subtitle B, Title 2, Labor Code, is amended by
adding Chapter 53 to read as follows:
CHAPTER 53. VERIFICATION OF EMPLOYEE INFORMATION; EMPLOYMENT OF
PERSONS NOT LAWFULLY PRESENT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 53.001. DEFINITIONS. In this chapter:
(1) "Employee" means an individual who is employed by
an employer for compensation. The term includes an individual
employed on a part-time basis.
(2) "Employer" means a person, other than a
governmental entity, who:
(A) employs at least 25 employees; or
(B) acts directly or indirectly in the interests
of an employer in relation to an employee.
(3) "E-verify program" has the meaning assigned by
Section 673.001, Government Code.
(4) "License" means a license, certificate,
registration, permit, or other authorization that:
(A) is issued by a licensing authority;
(B) is subject before expiration to renewal,
suspension, revocation, forfeiture, or termination by a licensing
authority; and
(C) is required for a person to practice or
engage in a particular business, occupation, or profession.
(5) "Licensing authority" means a department,
commission, board, office, or other agency of this state that
issues or renews a license.
(6) "Person not lawfully present" means a person who,
at the time of employment, is not:
(A) a citizen or national of the United States;
or
(B) an alien who is lawfully admitted for
permanent residence in the United States under the federal
Immigration and Nationality Act (8 U.S.C. Section 1101 et seq.) or
authorized to be employed by that Act or by the United States
attorney general.
Sec. 53.002. EMPLOYEE STATUS. An employer may not classify
an individual performing services for the employer as an
independent contractor instead of as an employee of the employer
solely for the purpose of avoiding the requirements applicable to
an employer under this chapter.
SUBCHAPTER B. VERIFICATION OF EMPLOYEE INFORMATION
Sec. 53.051. VERIFICATION. An employer shall register and
participate in the E-verify program to verify information of all
new employees.
SUBCHAPTER C. EMPLOYMENT OF PERSONS NOT LAWFULLY PRESENT
Sec. 53.101. PROHIBITED EMPLOYMENT. An employer may not
knowingly hire, employ, recruit, or refer for a fee an individual
who is a person not lawfully present.
SUBCHAPTER D. ENFORCEMENT
Sec. 53.151. REPORTING VIOLATION. (a) A person who has a
reasonable belief that an employer violated this chapter may report
the allegation to the attorney general.
(b) The person alleging a violation under Subsection (a)
must, to the extent known by the person, provide to the attorney
general:
(1) the name, address, and telephone number of the
person filing the report;
(2) the name and address of the employer;
(3) if applicable, the name of the person not lawfully
present who has performed or will perform work for the employer;
(4) the information that caused the person to make the
report and the source of the information; and
(5) any other information relevant to the allegation.
Sec. 53.152. INVESTIGATION BY ATTORNEY GENERAL. (a) On
receipt of a report made under Section 53.151, the attorney general
shall determine whether reasonable cause exists to merit an
investigation of the allegation. If the attorney general
determines reasonable cause exists, the attorney general shall
conduct an investigation.
(b) An employer must comply with reasonable requests for
documents or other information made by the attorney general during
an investigation, including a request for:
(1) documents related to the legal status of an
employee;
(2) if applicable, evidence related to an employer's
affirmative defense under Section 53.153;
(3) documents related to the employer's finances and
operations;
(4) a list of all licenses held by the employer; and
(5) other documents or information the attorney
general determines necessary for conducting the investigation.
(c) The attorney general may request the assistance of the
Department of Public Safety and local law enforcement entities to
ensure compliance with this section.
(d) In conducting an investigation under this section, the
attorney general may not:
(1) interview a minor or collect information related
to a minor without first obtaining consent from the minor's parent
or legal guardian; or
(2) visit the employer's premises at an unreasonable
time without obtaining the employer's consent.
(e) Information obtained during an investigation under this
section is confidential and excepted from disclosure under Chapter
552, but may be used in an administrative proceeding under this
chapter at the attorney general's discretion.
Sec. 53.153. AFFIRMATIVE DEFENSE. It is an affirmative
defense to a proceeding under this subchapter in relation to an
alleged violation of Subchapter C that the employer complied in
good faith with the document review requirements described by the
federal Immigration Reform and Control Act of 1986 (8 U.S.C.
Section 1324a(b)).
Sec. 53.154. INITIAL DETERMINATION BY ATTORNEY GENERAL;
OPPORTUNITY TO CURE. (a) If the attorney general determines under
Section 53.152 that the employer violated this chapter, the
attorney general shall provide written notice of the determination
to the employer. The notice must:
(1) explain the employer's options for taking
corrective action to cure the violation, which must include:
(A) for a violation under Section 53.002,
submitting to the attorney general evidence that the employer is
properly classifying individuals performing services for the
employer, together with a sworn statement attesting that the
employer will continue to do so;
(B) for a violation under Section 53.051,
submitting to the attorney general evidence that the employer has
registered and is participating in the E-verify program to verify
information of all new employees; or
(C) for a violation under Section 53.101,
submitting to the attorney general, as applicable:
(i) evidence that the person not lawfully
present is no longer employed by or working for the employer; or
(ii) a sworn statement attesting that the
employer has ceased and will continue to cease recruiting or
referring for a fee persons not lawfully present; and
(2) inform the employer that each license held by the
employer is subject to suspension if the employer does not take
appropriate corrective action and notify the attorney general of
that action in the time prescribed by Subsection (b).
(b) On receipt of notice from the attorney general under
Subsection (a), the employer shall take appropriate corrective
action to cure the violation. Not later than the 10th business day
after the date the employer receives the notice, the employer must
notify the attorney general of the corrective action taken by the
employer to cure the violation.
Sec. 53.155. FINAL DETERMINATION BY ATTORNEY GENERAL;
LICENSE SUSPENSION FOR FAILURE TO CURE; RIGHT TO JUDICIAL REVIEW.
(a) If the attorney general determines that an employer has taken
appropriate corrective action under Section 53.154(b), the
attorney general shall close the investigation and promptly notify
the employer accordingly.
(b) If the attorney general determines that an employer
failed to reply to the attorney general's notice under Section
53.154(b) or that the corrective action taken by the employer under
that subsection did not cure the employer's violation, the attorney
general shall promptly provide written notice to the employer that:
(1) the employer has been finally determined by the
attorney general to have violated this chapter; and
(2) each license issued to the employer by a licensing
authority will be suspended for a period of two years, subject to
judicial review of the attorney general's determination as a
contested case under Chapter 2001, Government Code.
(c) Not later than the 30th day after the date an employer
receives notice under Subsection (b), an employer may seek judicial
review as provided by Chapter 2001, Government Code, of the
attorney general's determination.
Sec. 53.156. ORDER FOR LICENSE SUSPENSION. If an employer
finally determined by the attorney general to have violated this
chapter does not seek judicial review of the attorney general's
determination in the time prescribed by Section 53.155 or does not
prevail on judicial review, the attorney general shall promptly:
(1) render a final order suspending each license held
by the employer for a period of two years; and
(2) send a copy of the order to:
(A) the employer; and
(B) each licensing authority that issued a
license held by the employer.
Sec. 53.157. ACTION BY LICENSING AUTHORITY. (a) On receipt
from the attorney general of a final order under this chapter
suspending an employer's license, a licensing authority shall
immediately determine if the authority has issued a license to the
person named on the order and, if a license has been issued:
(1) record the suspension of the license in the
licensing authority's records;
(2) report the suspension as appropriate;
(3) provide written notice of the suspension to the
person; and
(4) demand surrender of the suspended license if
required by law for other cases in which a license is suspended.
(b) A licensing authority shall implement the terms of a
final order suspending a license without additional review or
hearing. The authority may provide notice as appropriate to the
license holder or to others concerned with the license.
(c) A licensing authority may not modify, remand, reverse,
vacate, or stay an order suspending a license issued under this
chapter and may not review, vacate, or reconsider the terms of a
final order suspending a license.
(d) A person who is the subject of a final order suspending a
license is not entitled to a refund for any fee or other amount paid
to the licensing authority.
(e) A person who continues to engage in the business,
occupation, profession, or other licensed activity after the
implementation of the order suspending a license by the licensing
authority is liable for the same civil, administrative, and
criminal penalties provided for engaging in the licensed activity
without a license or while a license is suspended that apply to any
other license holder of that licensing authority.
(f) A licensing authority is exempt from liability to a
license holder for any act authorized under this chapter performed
by the authority.
(g) Except as provided by this chapter, an order suspending
a license does not affect the power of a licensing authority to
grant, deny, suspend, revoke, terminate, or renew a license.
Sec. 53.158. ENFORCEMENT BY STATE AGENCIES; RULES. (a)
Notwithstanding any other law and in addition to any duty relating
to the enforcement of this chapter that is assigned to another
governmental entity by this subchapter, each appropriate state
agency shall ensure that employers in this state comply with this
chapter and may require compliance with this chapter as a condition
of a license.
(b) Each appropriate state agency shall adopt rules and
prescribe forms as necessary to implement this section.
SECTION 7. Subchapter A, Chapter 204, Labor Code, is
amended by adding Section 204.0021 to read as follows:
Sec. 204.0021. ADDITIONAL REQUIREMENT FOR WAGE REPORTING.
Any verification form or electronic process used by the commission
for an employer to report wages paid by the employer for purposes of
this subtitle must require the employer to certify the employer's
compliance with Chapter 53.
SECTION 8. Each state agency subject to Subchapter C,
Chapter 2264, Government Code, as amended by this Act, shall
develop the procedures required under Section 2264.102(e),
Government Code, as added by this Act, not later than December 31,
2025.
SECTION 9. Sections 2264.1011, 2264.102, and 2264.103,
Government Code, as added by this Act, apply only in relation to a
contract for which the request for bids or proposals or other
applicable expression of interest is made public on or after the
effective date of this Act.
SECTION 10. As soon as practicable after the effective date
of this Act, each appropriate state agency subject to Section
53.158, Labor Code, as added by this Act, shall adopt rules and
prescribe forms as required by that section.
SECTION 11. Section 204.0021, Labor Code, Subchapter C,
Chapter 53, Labor Code, and Chapter 621, Government Code, as added
by this Act, apply beginning January 1, 2027.
SECTION 12. It is the intent of the legislature that every
provision in this Act, and every application of the provisions in
this Act to every person, group of persons, or circumstances, is
severable from each other. If any application of any provision in
this Act to any person, group of persons, or circumstances is found
by a court to be invalid for any reason, the remaining applications
of that provision to all other persons and circumstances shall be
severed and may not be affected.
SECTION 13. This Act takes effect September 1, 2025.