Texas 2025 - 89th Regular

Texas House Bill HB2744 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R2315 RDS-D
2	2	By: Vasut H.B. No. 2744
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to requiring state contractors, political subdivisions of
10	10	this state, and private employers to participate in the federal
11	11	electronic verification of employment authorization program, or
12	12	E-verify; creating civil penalties.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. The heading to Chapter 2264, Government Code, is
15	15	amended to read as follows:
16	16	CHAPTER 2264. CERTAIN RESTRICTIONS ON [USE OF CERTAIN] PUBLIC
17	17	SUBSIDIES AND STATE CONTRACTS
18	18	SECTION 2. Section 2264.101, Government Code, is
19	19	transferred to Subchapter B, Chapter 2264, Government Code,
20	20	redesignated as Section 2264.054, Government Code, and amended to
21	21	read as follows:
22	22	Sec. 2264.054 [2264.101]. RECOVERY. (a) A public agency,
23	23	local taxing jurisdiction, or economic development corporation, or
24	24	the attorney general on behalf of the state or a state agency, may
25	25	bring a civil action to recover any amounts owed to the public
26	26	agency, state or local taxing jurisdiction, or economic development
27	27	corporation under this subchapter [chapter].
28	28	(b) The public agency, local taxing jurisdiction, economic
29	29	development corporation, or attorney general, as applicable, shall
30	30	recover court costs and reasonable attorney's fees incurred in an
31	31	action brought under Subsection (a).
32	32	(c) A business is not liable for a violation of this
33	33	subchapter [chapter] by a subsidiary, affiliate, or franchisee of
34	34	the business, or by a person with whom the business contracts.
35	35	SECTION 3. The heading to Subchapter C, Chapter 2264,
36	36	Government Code, is amended to read as follows:
37	37	SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT]
38	38	SECTION 4. Subchapter C, Chapter 2264, Government Code, is
39	39	amended by adding Sections 2264.1011, 2264.102, and 2264.103 to
40	40	read as follows:
41	41	Sec. 2264.1011. DEFINITIONS. In this subchapter:
42	42	(1) "E-verify program" has the meaning assigned by
43	43	Section 673.001.
44	44	(2) "State agency" has the meaning assigned by Section
45	45	2103.001.
46	46	Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state
47	47	agency may not award a contract for goods or services within this
48	48	state to a contractor unless the contractor and any subcontractor
49	49	register with and participate in the E-verify program to verify
50	50	employee information. The contractor and any subcontractor must
51	51	continue to participate in the program during the term of the
52	52	contract.
53	53	(b) Each contract with a state agency must include the
54	54	following statement:
55	55	"______________ (name of contractor) certifies that
56	56	__________ (name of contractor) is not ineligible to receive this
57	57	contract under Subchapter C, Chapter 2264, Government Code, and
58	58	acknowledges that if this certification is inaccurate or becomes
59	59	inaccurate during the term of the contract, the contractor may be
60	60	barred from participating in state contracts."
61	61	(c) If a state agency determines that a contractor was
62	62	ineligible to have the contract awarded under Subsection (a), that
63	63	a contractor has ceased participation in the E-verify program
64	64	during the term of the contract, or that a subcontractor is not
65	65	registered with or is not participating in the E-verify program,
66	66	the state agency shall refer the matter to the comptroller for
67	67	action.
68	68	(d) Each state agency shall develop procedures for the
69	69	administration of this section.
70	70	Sec. 2264.103. BARRING FROM STATE CONTRACTS. (a) Using
71	71	procedures prescribed under Section 2155.077, the comptroller may
72	72	bar a contractor from participating in state contracts if the
73	73	comptroller determines that the contractor:
74	74	(1) was awarded a contract in violation of Section
75	75	2264.102;
76	76	(2) has ceased participation in the E-verify program
77	77	during the term of the contract; or
78	78	(3) knowingly hired a subcontractor, other than a
79	79	subcontractor who acts exclusively as a supplier for the contract,
80	80	to perform work under the contract who is not registered with or is
81	81	not participating in the E-verify program.
82	82	(b) Debarment under this section is for a period of one year
83	83	except that the debarment may be extended by the comptroller for
84	84	additional one-year periods if the comptroller determines that the
85	85	grounds for debarment under this section continue to exist.
86	86	(c) It is an affirmative defense to a debarment proceeding
87	87	under this section that the contractor did not know that a
88	88	subcontractor hired to perform work under the contract is not
89	89	registered with or is not participating in the E-verify program.
90	90	SECTION 5. Subtitle B, Title 2, Labor Code, is amended by
91	91	adding Chapter 53 to read as follows:
92	92	CHAPTER 53. EMPLOYMENT OF PERSONS NOT LAWFULLY PRESENT
93	93	Sec. 53.001. DEFINITIONS. In this chapter:
94	94	(1) "Employee" means an individual who is employed by
95	95	an employer for compensation. The term includes an individual
96	96	employed on a part-time basis.
97	97	(2) "Employer" means a person, other than a
98	98	governmental entity, who:
99	99	(A) employs at least one employee; or
100	100	(B) acts directly or indirectly in the interests
101	101	of an employer in relation to an employee.
102	102	(3) "E-verify program" has the meaning assigned by
103	103	Section 673.001, Government Code.
104	104	(4) "Person not lawfully present" means a person who,
105	105	at the time of employment, is not:
106	106	(A) a citizen or national of the United States;
107	107	or
108	108	(B) an alien who is lawfully admitted for
109	109	permanent residence in the United States under the federal
110	110	Immigration and Nationality Act (8 U.S.C. Section 1101 et seq.) or
111	111	authorized to be employed by that Act or by the United States
112	112	attorney general.
113	113	Sec. 53.002. EMPLOYEE STATUS. An employer may not classify
114	114	an individual performing services for the employer as an
115	115	independent contractor instead of as an employee of the employer
116	116	solely for the purpose of avoiding the requirements applicable to
117	117	an employer under this chapter.
118	118	Sec. 53.003. PROHIBITED EMPLOYMENT. (a) An employer may
119	119	not knowingly hire, employ, recruit, or refer for a fee an
120	120	individual who is a person not lawfully present.
121	121	(b) For purposes of Subsection (a), an employer that hires,
122	122	employs, recruits, or refers for a fee an individual who is a person
123	123	not lawfully present is considered to have known the individual is a
124	124	person not lawfully present if the employer is not registered or
125	125	does not participate in the E-verify program.
126	126	(c) Not later than the 30th day after the date of the final
127	127	resolution of a proceeding under Section 53.004 relating to a
128	128	violation of Subsection (a) of this section, an employer shall
129	129	terminate the employment of an employee who is determined to be a
130	130	person not lawfully present. A violation of this subsection is a
131	131	separate violation for purposes of imposing a civil penalty under
132	132	Section 53.004.
133	133	Sec. 53.004. ENFORCEMENT; CIVIL PENALTY. (a) An employer
134	134	that violates this chapter is liable to the state for a civil
135	135	penalty in an amount equal to $10,000 for each individual the
136	136	employer hires, employs, recruits, or refers for a fee in violation
137	137	of this chapter.
138	138	(b) An individual who has a reasonable belief that an
139	139	employer has violated this chapter may report the allegation to the
140	140	attorney general. The individual must include with the complaint a
141	141	signed statement describing the violation.
142	142	(c) The attorney general may bring an action to recover a
143	143	civil penalty imposed under Subsection (a). The attorney general
144	144	may recover reasonable attorney's fees and court costs incurred in
145	145	bringing an action under this subsection.
146	146	SECTION 6. Subtitle C, Title 5, Local Government Code, is
147	147	amended by adding Chapter 181 to read as follows:
148	148	CHAPTER 181. EMPLOYMENT OF PERSONS NOT LAWFULLY PRESENT
149	149	Sec. 181.001. DEFINITIONS. In this chapter:
150	150	(1) "E-verify program" has the meaning assigned by
151	151	Section 673.001, Government Code.
152	152	(2) "Person not lawfully present" has the meaning
153	153	assigned by Section 53.001, Labor Code.
154	154	(3) "Political subdivision" means a county,
155	155	municipality, school district, junior college district, other
156	156	special district, or other subdivision of state government.
157	157	Sec. 181.002. PROHIBITED EMPLOYMENT. (a) A political
158	158	subdivision may not knowingly hire, employ, recruit, or refer for a
159	159	fee an individual who is a person not lawfully present.
160	160	(b) For purposes of Subsection (a), a political subdivision
161	161	that hires, employs, recruits, or refers for a fee an individual who
162	162	is a person not lawfully present is considered to have known the
163	163	individual is a person not lawfully present if the political
164	164	subdivision is not registered or does not participate in the
165	165	E-verify program.
166	166	(c) Not later than the 30th day after the date of the final
167	167	resolution of a proceeding under Section 181.003 relating to a
168	168	violation of Subsection (a) of this section, a political
169	169	subdivision shall terminate the employment of an employee who is
170	170	determined to be a person not lawfully present. A violation of this
171	171	subsection is a separate violation for purposes of imposing a civil
172	172	penalty under Section 181.003.
173	173	Sec. 181.003. ENFORCEMENT; CIVIL PENALTY. (a) A political
174	174	subdivision that violates this chapter is liable to the state for a
175	175	civil penalty in an amount equal to $10,000 for each individual the
176	176	political subdivision hires, employs, recruits, or refers for a fee
177	177	in violation of this chapter.
178	178	(b) An individual who has a reasonable belief that a
179	179	political subdivision has violated this chapter may report the
180	180	allegation to the attorney general. The individual must include
181	181	with the complaint a signed statement describing the violation.
182	182	(c) The attorney general may bring an action to recover a
183	183	civil penalty imposed under Subsection (a). The attorney general
184	184	may recover reasonable attorney's fees and court costs incurred in
185	185	bringing an action under this subsection.
186	186	SECTION 7. Each state agency subject to Subchapter C,
187	187	Chapter 2264, Government Code, as amended by this Act, shall
188	188	develop the procedures required under Section 2264.102(d),
189	189	Government Code, as added by this Act, not later than December 31,
190	190	2025.
191	191	SECTION 8. Sections 2264.1011, 2264.102, and 2264.103,
192	192	Government Code, as added by this Act, apply only in relation to a
193	193	contract for which the request for bids or proposals or other
194	194	applicable expression of interest is made public on or after the
195	195	effective date of this Act.
196	196	SECTION 9. Chapters 53, Labor Code, and 181, Local
197	197	Government Code, as added by this Act, apply beginning January 1,
198	198	2026.
199	199	SECTION 10. This Act takes effect September 1, 2025.