By: Louderback H.B. No. 1488
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;
providing an administrative penalty.
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) 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) 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 or becomes inaccurate during
the term of the contract, 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), 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.
(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 may
bar a contractor from participating in state contracts if the
comptroller determines that the contractor:
(1) was awarded a contract in violation of Section
2264.102;
(2) has ceased participation in the E-verify program
during the term of the contract; or
(3) hired a subcontractor 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 commission determines that the
grounds for debarment under this section continue to exist.
SECTION 5. Subtitle B, Title 2, Labor Code, is amended by
adding Chapter 53 to read as follows:
CHAPTER 53. VERIFICATION OF EMPLOYEE INFORMATION
Sec. 53.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Workforce
Commission.
(2) "Employee" means an individual who is employed by
an employer for compensation. The term includes an individual
employed on a part-time basis.
(3) "Employer" means a person, other than a
governmental entity, who:
(A) employs one or more employees; or
(B) acts directly or indirectly in the interests
of an employer in relation to an employee.
(4) "Employment" means any service, including service
in interstate commerce, that is performed for wages or under a
contract of hire, whether written or oral or express or implied.
The term does not include any service performed by an individual for
wages if it is shown that the individual is free from control or
direction in the performance of the service, both under any
contract of service and in fact.
(5) "E-verify program" has the meaning assigned by
Section 673.001, Government Code.
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.
Sec. 53.003. VERIFICATION. An employer shall register and
participate in the E-verify program to verify information of all
new employees.
Sec. 53.004. ENFORCEMENT BY STATE AGENCIES; RULES. (a)
Notwithstanding any other law, each appropriate state agency shall
ensure that employers in this state comply with Section 53.003 and
may require compliance with that section as a condition of a
license, certificate, registration, permit, or other authorization
issued by the agency that is required for a person to practice or
engage in a particular business, occupation, or profession in this
state.
(b) Each appropriate state agency shall adopt rules and
prescribe forms as necessary to implement this section.
SECTION 6. Sec. 301.009(a), Government Code, is amended to
read as follows:
Sec. 301.009. COMMISSION DIVISIONS. (a) The Commission
shall have:
(1) a division of workforce development;
(2) a division of unemployment compensation; [and]
(3) a civil rights division[.]; and
(4) a legal hiring compliance division.
SECTION 7. Chapter 301, Labor Code, is amended by adding
Subchapter L. to read as follows:
SUBCHAPTER L. LEGAL HIRING COMPLIANCE DIVISION
Sec. 301.201. LEGAL HIRING COMPLIANCE DIVISION. The
commission shall establish and operate a legal hiring compliance
division to ensure private employer compliance with E-verify
requirements under Chapter 53, Labor Code.
Sec. 301.202. POWERS AND DUTIES OF COMMISSION. (a) The
commission has the power to conduct investigations of employers
suspected of violating hiring laws and regulations regarding
unauthorized workers and noncompliance with E-verify requirements.
(b) The commission may receive complaints or reports from
any individual, organization, or government agency regarding
suspected violations of legal hiring practices. The commission
shall review all complaints and shall initiate investigations to
determine compliance with E-verify requirements under Chapter 53,
Labor Code.
(c) A complaint filed with the commission must include the
following information:
(1) the name of the complainant;
(2) the name of the employer; and
(3) the nature and description of any alleged
violation.
Sec. 301.203. CONFIDENTIALITY. (a) Information obtained
in connection with an investigation under this subchapter is
confidential and not subject to public disclosure, except as
otherwise provided by law.
(b) The commission may disclose information:
(1) to other state agencies for the purposes of
reporting continued noncompliance with Chapter 53, Labor Code; and
(2) to the comptroller for the purposes of determining
continued eligibility for state contracts under Chapter 2264,
Subchapter C, Government Code.
Sec. 301.204. ADMINISTRATIVE PENALTY. (a) The commission
shall impose on an employer who violates this chapter an
administrative penalty in an amount equal to $5,000 for each
violation, unless the employer takes corrective action to achieve
compliance.
(b) If, following an investigation under Section
301.202(b), the commission determines that the employer violated
this chapter, the commission may recover from the employer
reasonable investigative costs incurred by the commission in
conducting the investigation, regardless of whether the employer
has taken an action described by Subsection (a).
Sec. 301.205. NOTICE TO LICENSING AGENCIES. If the
commission determines that an employer has refused to take
corrective action as required by this subchapter, the commission
shall send notice of continued noncompliance to each state agency
that issues a license to the employer for action under Sec. 53.004,
Labor Code.
Sec. 301.206. MODEL POLICIES AND COMPLIANCE GUIDANCE. (a)
The commission shall develop model policies and standardized forms
to support private employers in fulfilling legal hiring
obligations. Model policies adopted under this section must
include procedures and compliance checklists to ensure adherence to
E-Verify regulations and prevent unauthorized hiring practices.
(b) The commission shall provide publicly available
information regarding:
(1) how to report suspected violations of mandatory
E-verify regulations; and
(2) the commission's jurisdiction and authority
regarding investigations of E-verify noncompliance.
Sec. 301.207. RULES. The commission shall adopt rules as
necessary to implement and enforce this subchapter.
SECTION 8. Subtitle C, Title 5, Local Government Code, is
amended by adding Chapter 181 to read as follows:
CHAPTER 181. VERIFICATION OF EMPLOYEE INFORMATION
Sec. 181.001. DEFINITIONS. In this chapter:
(1) "E-Verify program" has the meaning assigned by
Section 673.001, Government Code.
(2) "Political subdivision" means a county,
municipality, school district, junior college district, other
special district, or other subdivision of state government.
Sec. 181.002. VERIFICATION. A political subdivision shall
register and participate in the E-Verify program to verify
information of all new employees.
Sec. 181.003. TERMINATION OF EMPLOYMENT. An employee of a
political subdivision who is responsible for verifying information
of new employees of the political subdivision as required by
Section 181.002 is subject to immediate termination of employment
if the employee fails to comply with that section.
SECTION 9. SEVERABILITY. If any provision of this Act or
its application to any person or circumstance is held invalid, the
invalidity does not affect other provisions or applications of this
Act that can be given effect without the invalid provision or
application, and to this end, the provisions of this Act are
declared to be severable.
SECTION 10. As soon as practicable after the effective date
of this Act, the commission shall develop model policies required
by Sec. 301.206, Government Code.
SECTION 11. 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 12. This Act applies to employment decisions or
contracts made on or after the effective date of this Act. A
contract of employment signed before the effective date of this Act
are governed by the law that was in effect immediately before the
effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 13. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2025.