Texas 2025 - 89th Regular

Texas House Bill HB1488 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Louderback H.B. No. 1488
	2	+
	3	+
2	4
3	5
4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to employment practices of governmental entities, state
7	9		contractors, and private employers in this state regarding the
8	10		legal status of employees, including requiring participation in the
9	11		federal electronic verification of employment authorization
10	12		program, or E-verify program, and authorizing the suspension of
11	13		certain licenses held by private employers for certain conduct in
12	14		relation to the employment of persons not lawfully present;
13	15		providing an administrative penalty.
14	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	17		SECTION 1. The heading to Chapter 2264, Government Code, is
16	18		amended to read as follows:
17	19		CHAPTER 2264. CERTAIN RESTRICTIONS ON [USE OF CERTAIN] PUBLIC
18	20		SUBSIDIES AND STATE CONTRACTS
19	21		SECTION 2. Section 2264.101, Government Code, is
20	22		transferred to Subchapter B, Chapter 2264, Government Code,
21	23		redesignated as Section 2264.054, Government Code, and amended to
22	24		read as follows:
23	25		Sec. 2264.054 [2264.101]. RECOVERY. (a) A public agency,
24	26		local taxing jurisdiction, or economic development corporation, or
25	27		the attorney general on behalf of the state or a state agency, may
26	28		bring a civil action to recover any amounts owed to the public
27	29		agency, state or local taxing jurisdiction, or economic development
28	30		corporation under this subchapter [chapter].
29	31		(b) The public agency, local taxing jurisdiction, economic
30	32		development corporation, or attorney general, as applicable, shall
31	33		recover court costs and reasonable attorney's fees incurred in an
32	34		action brought under Subsection (a).
33	35		(c) A business is not liable for a violation of this
34	36		subchapter [chapter] by a subsidiary, affiliate, or franchisee of
35	37		the business, or by a person with whom the business contracts.
36	38		SECTION 3. The heading to Subchapter C, Chapter 2264,
37	39		Government Code, is amended to read as follows:
38	40		SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT]
39	41		SECTION 4. Subchapter C, Chapter 2264, Government Code, is
40	42		amended by adding Sections 2264.1011, 2264.102, and 2264.103 to
41	43		read as follows:
42	44		Sec. 2264.1011. DEFINITIONS. In this subchapter:
43	45		(1) "E-verify program" has the meaning assigned by
44	46		Section 673.001.
45	47		(2) "State agency" has the meaning assigned by Section
46	48		2103.001.
47	49		Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state
48	50		agency may not award a contract for goods or services within this
49	51		state to a contractor unless the contractor and any subcontractor
50	52		register with and participate in the E-verify program to verify
51	53		employee information. The contractor and any subcontractor must
52	54		continue to participate in the program during the term of the
53	55		contract.
54	56		(b) Each contract with a state agency must include the
55	57		following statement:
56	58		"_______(name of contractor) certifies that _______(name of
57	59		contractor) is not ineligible to receive this contract under
58	60		Subchapter C, Chapter 2264, Government Code, and acknowledges that
59	61		if this certification is inaccurate or becomes inaccurate during
60	62		the term of the contract, the contractor may be barred from
61	63		participating in state contracts."
62	64		(c) If a state agency determines that a contractor was
63	65		ineligible to have the contract awarded under Subsection (a), that
64	66		a contractor has ceased participation in the E-verify program
65	67		during the term of the contract, or that a subcontractor is not
66	68		registered with or is not participating in the E-verify program,
67	69		the state agency shall refer the matter to the comptroller for
68	70		action.
69	71		(d) Each state agency shall develop procedures for the
70	72		administration of this section.
71	73		Sec. 2264.103. BARRING FROM STATE CONTRACTS. (a) Using
72	74		procedures prescribed under Section 2155.077, the comptroller may
73	75		bar a contractor from participating in state contracts if the
74	76		comptroller determines that the contractor:
75	77		(1) was awarded a contract in violation of Section
76	78		2264.102;
77	79		(2) has ceased participation in the E-verify program
78	80		during the term of the contract; or
79	81		(3) hired a subcontractor to perform work under the
80	82		contract who is not registered with or is not participating in the
81	83		E-verify program.
82	84		(b) Debarment under this section is for a period of one year
83	85		except that the debarment may be extended by the comptroller for
84	86		additional one-year periods if the commission determines that the
85	87		grounds for debarment under this section continue to exist.
86	88		SECTION 5. Subtitle B, Title 2, Labor Code, is amended by
87	89		adding Chapter 53 to read as follows:
88	90		CHAPTER 53. VERIFICATION OF EMPLOYEE INFORMATION
89	91		Sec. 53.001. DEFINITIONS. In this chapter:
90	92		(1) "Commission" means the Texas Workforce
91	93		Commission.
92	94		(2) "Employee" means an individual who is employed by
93	95		an employer for compensation. The term includes an individual
94	96		employed on a part-time basis.
95	97		(3) "Employer" means a person, other than a
96	98		governmental entity, who:
97	99		(A) employs one or more employees; or
98	100		(B) acts directly or indirectly in the interests
99	101		of an employer in relation to an employee.
100	102		(4) "Employment" means any service, including service
101	103		in interstate commerce, that is performed for wages or under a
102	104		contract of hire, whether written or oral or express or implied.
103	105		The term does not include any service performed by an individual for
104	106		wages if it is shown that the individual is free from control or
105	107		direction in the performance of the service, both under any
106	108		contract of service and in fact.
107	109		(5) "E-verify program" has the meaning assigned by
108	110		Section 673.001, Government Code.
109	111		Sec. 53.002. EMPLOYEE STATUS. An employer may not classify
110	112		an individual performing services for the employer as an
111	113		independent contractor instead of as an employee of the employer
112	114		solely for the purpose of avoiding the requirements applicable to
113	115		an employer under this chapter.
114	116		Sec. 53.003. VERIFICATION. An employer shall register and
115	117		participate in the E-verify program to verify information of all
116	118		new employees.
117	119		Sec. 53.004. ENFORCEMENT BY STATE AGENCIES; RULES. (a)
118	120		Notwithstanding any other law, each appropriate state agency shall
119	121		ensure that employers in this state comply with Section 53.003 and
120	122		may require compliance with that section as a condition of a
121	123		license, certificate, registration, permit, or other authorization
122	124		issued by the agency that is required for a person to practice or
123	125		engage in a particular business, occupation, or profession in this
124	126		state.
125	127		(b) Each appropriate state agency shall adopt rules and
126	128		prescribe forms as necessary to implement this section.
127	129		SECTION 6. Sec. 301.009(a), Government Code, is amended to
128	130		read as follows:
129	131		Sec. 301.009. COMMISSION DIVISIONS. (a) The Commission
130	132		shall have:
131	133		(1) a division of workforce development;
132	134		(2) a division of unemployment compensation; [and]
133	135		(3) a civil rights division[.]; and
134	136		(4) a legal hiring compliance division.
135	137		SECTION 7. Chapter 301, Labor Code, is amended by adding
136	138		Subchapter L. to read as follows:
137	139		SUBCHAPTER L. LEGAL HIRING COMPLIANCE DIVISION
138	140		Sec. 301.201. LEGAL HIRING COMPLIANCE DIVISION. The
139	141		commission shall establish and operate a legal hiring compliance
140	142		division to ensure private employer compliance with E-verify
141	143		requirements under Chapter 53, Labor Code.
142	144		Sec. 301.202. POWERS AND DUTIES OF COMMISSION. (a) The
143	145		commission has the power to conduct investigations of employers
144	146		suspected of violating hiring laws and regulations regarding
145	147		unauthorized workers and noncompliance with E-verify requirements.
146	148		(b) The commission may receive complaints or reports from
147	149		any individual, organization, or government agency regarding
148	150		suspected violations of legal hiring practices. The commission
149	151		shall review all complaints and shall initiate investigations to
150	152		determine compliance with E-verify requirements under Chapter 53,
151	153		Labor Code.
152	154		(c) A complaint filed with the commission must include the
153	155		following information:
154	156		(1) the name of the complainant;
155	157		(2) the name of the employer; and
156	158		(3) the nature and description of any alleged
157	159		violation.
158	160		Sec. 301.203. CONFIDENTIALITY. (a) Information obtained
159	161		in connection with an investigation under this subchapter is
160	162		confidential and not subject to public disclosure, except as
161	163		otherwise provided by law.
162	164		(b) The commission may disclose information:
163	165		(1) to other state agencies for the purposes of
164	166		reporting continued noncompliance with Chapter 53, Labor Code; and
165	167		(2) to the comptroller for the purposes of determining
166	168		continued eligibility for state contracts under Chapter 2264,
167	169		Subchapter C, Government Code.
168	170		Sec. 301.204. ADMINISTRATIVE PENALTY. (a) The commission
169	171		shall impose on an employer who violates this chapter an
170	172		administrative penalty in an amount equal to $5,000 for each
171	173		violation, unless the employer takes corrective action to achieve
172	174		compliance.
173	175		(b) If, following an investigation under Section
174	176		301.202(b), the commission determines that the employer violated
175	177		this chapter, the commission may recover from the employer
176	178		reasonable investigative costs incurred by the commission in
177	179		conducting the investigation, regardless of whether the employer
178	180		has taken an action described by Subsection (a).
179	181		Sec. 301.205. NOTICE TO LICENSING AGENCIES. If the
180	182		commission determines that an employer has refused to take
181	183		corrective action as required by this subchapter, the commission
182	184		shall send notice of continued noncompliance to each state agency
183	185		that issues a license to the employer for action under Sec. 53.004,
184	186		Labor Code.
185	187		Sec. 301.206. MODEL POLICIES AND COMPLIANCE GUIDANCE. (a)
186	188		The commission shall develop model policies and standardized forms
187	189		to support private employers in fulfilling legal hiring
188	190		obligations. Model policies adopted under this section must
189	191		include procedures and compliance checklists to ensure adherence to
190	192		E-Verify regulations and prevent unauthorized hiring practices.
191	193		(b) The commission shall provide publicly available
192	194		information regarding:
193	195		(1) how to report suspected violations of mandatory
194	196		E-verify regulations; and
195	197		(2) the commission's jurisdiction and authority
196	198		regarding investigations of E-verify noncompliance.
197	199		Sec. 301.207. RULES. The commission shall adopt rules as
198	200		necessary to implement and enforce this subchapter.
199	201		SECTION 8. Subtitle C, Title 5, Local Government Code, is
200	202		amended by adding Chapter 181 to read as follows:
201	203		CHAPTER 181. VERIFICATION OF EMPLOYEE INFORMATION
202	204		Sec. 181.001. DEFINITIONS. In this chapter:
203	205		(1) "E-Verify program" has the meaning assigned by
204	206		Section 673.001, Government Code.
205	207		(2) "Political subdivision" means a county,
206	208		municipality, school district, junior college district, other
207	209		special district, or other subdivision of state government.
208	210		Sec. 181.002. VERIFICATION. A political subdivision shall
209	211		register and participate in the E-Verify program to verify
210	212		information of all new employees.
211	213		Sec. 181.003. TERMINATION OF EMPLOYMENT. An employee of a
212	214		political subdivision who is responsible for verifying information
213	215		of new employees of the political subdivision as required by
214	216		Section 181.002 is subject to immediate termination of employment
215	217		if the employee fails to comply with that section.
216	218		SECTION 9. SEVERABILITY. If any provision of this Act or
217	219		its application to any person or circumstance is held invalid, the
218	220		invalidity does not affect other provisions or applications of this
219	221		Act that can be given effect without the invalid provision or
220	222		application, and to this end, the provisions of this Act are
221	223		declared to be severable.
222	224		SECTION 10. As soon as practicable after the effective date
223	225		of this Act, the commission shall develop model policies required
224	226		by Sec. 301.206, Government Code.
225	227		SECTION 11. Sections 2264.1011, 2264.102, and 2264.103,
226	228		Government Code, as added by this Act, apply only in relation to a
227	229		contract for which the request for bids or proposals or other
228	230		applicable expression of interest is made public on or after the
229	231		effective date of this Act.
230	232		SECTION 12. This Act applies to employment decisions or
231	233		contracts made on or after the effective date of this Act. A
232	234		contract of employment signed before the effective date of this Act
233	235		are governed by the law that was in effect immediately before the
234	236		effective date of this Act, and the former law is continued in
235	237		effect for that purpose.
236	238		SECTION 13. This Act takes effect immediately if it
237	239		receives a vote of two-thirds of all the members elected to each
238	240		house, as provided by Section 39, Article III, Texas Constitution.
239	241		If this Act does not receive the vote necessary for immediate
240	242		effect, this Act takes effect September 1, 2025.