89R18392 TYPED
By: Hall S.B. No. 2650
A BILL TO BE ENTITLED
AN ACT
relating to certain requirements for participation in the E-verify
program; authorizing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. CERTAIN REQUIREMENTS FOR PARTICIPATION IN THE FEDERAL
ELECTRONIC VERIFICATION OF EMPLOYMENT AUTHORIZATION PROGRAM, OR
E-VERIFY
SECTION 1.01. 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 1.02. 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 1.03. The heading to Subchapter C, Chapter 2264,
Government Code, is amended to read as follows:
SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT]
SECTION 1.04. Subchapter C, Chapter 2264, Government Code,
is amended by adding Sections 2264.1011, 2264.102, 2264.103,
2264.104, and 2264.105 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 terminate the contract and refer the matter
to the comptroller for action.
(d) Each state agency shall develop procedures for the
administration of this section.
Sec. 2264.103. EXCEPTION. A contractor or subcontractor
under a contract to which Section 2264.102 applies is not required
to verify employee information through the E-verify program during
any year for which the federal government has not funded the
E-verify program.
Sec. 2264.104. 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) 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.
Sec. 2264.105. CONTRACT TERMINATION. If a state agency
terminates a contract for a reason described by Section
2264.102(c), the agency may require the contractor to pay any costs
associated with the termination.
SECTION 1.05. 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 or a sole proprietorship, 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.
(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 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.
Sec. 53.003. VERIFICATION AND RECORDS. (a) An employer
shall register and participate in the E-verify program to verify
information of all new employees.
(b) The employer must verify a new employee's information
not later than the third business day of the employee's employment.
If the E-verify program is unavailable during the first three
business days of the new employee's employment, the employer must
verify the employee's information by submitting the employment
eligibility verification form commonly referred to as the I-9 to
the appropriate governmental entity.
(c) An employer shall maintain a record of an employee
verification for at least three years.
Sec. 53.004. EXCEPTION. (a) An employer is not required to
verify employee information through the E-verify program during any
year for which the federal government has not funded the E-verify
program.
(b) For purposes of this section, Section 2264.103,
Government Code, and Section 181.003, Local Government Code, the
commission shall:
(1) monitor whether the federal government has funded
the E-verify program for the current year; and
(2) maintain in a conspicuous location on the
commission's Internet website updated information regarding
whether the federal government has funded the E-verify program for
the current year.
Sec. 53.005. 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) Notwithstanding any other law, if a state agency that
issues a license, certificate, registration, permit, or other
authorization for a person to practice or engage in a particular
business, occupation, or profession in this state determines that
an employer's failure to comply with Section 53.003 has resulted in
the employer's employment of a person not lawfully present, the
state agency may:
(1) suspend or revoke any license, certificate,
registration, permit, or other authorization issued by the agency
to the employer, as follows:
(A) for an employer who employs at least one but
not more than 10 persons not lawfully present, suspension for 30
days;
(B) for an employer who employs at least 11 but
not more than 50 persons not lawfully present, suspension for 60
days; and
(C) for an employer who employs 51 or more
persons not lawfully present, permanent revocation; and
(2) if applicable, require the employer to pay back
any economic development funds received as part of an economic
development program administered by this state.
(c) A proceeding under Subsection (b) is subject to Chapter
2001, Government Code.
(d) Each appropriate state agency shall adopt rules and
prescribe forms as necessary to implement this section.
SECTION 1.06. 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 AND RECORDS. (a) A political
subdivision shall register and participate in the E-verify program
to verify information of all new employees.
(b) The political subdivision must verify a new employee's
information not later than the third business day of the employee's
employment. If the E-verify program is unavailable during the
first three business days of the new employee's employment, the
political subdivision must verify the employee's information by
submitting the employment eligibility verification form commonly
referred to as the I-9 to the appropriate governmental entity.
(c) A political subdivision shall maintain a record of an
employee verification for at least three years.
Sec. 181.003. EXCEPTION. A political subdivision is not
required to verify employee information through the E-verify
program during any year for which the federal government has not
funded the E-verify program.
Sec. 181.004. 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.
ARTICLE 2. TRANSITIONS AND EFFECTIVE DATE
SECTION 2.01. 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(d),
Government Code, as added by this Act, not later than December 31,
2026.
SECTION 2.02. Sections 2264.1011, 2264.102, 2264.103,
2264.104, and 2264.105, Government Code, as added by this Act,
apply only in relation to a contract entered into on or after
January 1, 2027.
SECTION 2.03. As soon as practicable after the effective
date of this Act, each appropriate state agency subject to Section
53.005, Labor Code, as added by this Act, shall adopt rules and
prescribe forms as required by that section.
SECTION 2.04. Sections 53.003, Labor Code, and 181.002,
Local Government Code, as added by this Act, apply beginning
January 1, 2027.
SECTION 2.05. 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.