Texas 2025 - 89th Regular

Texas Senate Bill SB2650 Compare Versions

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

Old	New	Differences
1	1	89R18392 TYPED
2	2	By: Hall S.B. No. 2650
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certain requirements for participation in the E-verify
10	10	program; authorizing penalties.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	ARTICLE 1. CERTAIN REQUIREMENTS FOR PARTICIPATION IN THE FEDERAL
13	13	ELECTRONIC VERIFICATION OF EMPLOYMENT AUTHORIZATION PROGRAM, OR
14	14	E-VERIFY
15	15	SECTION 1.01. The heading to Chapter 2264, Government Code,
16	16	is amended to read as follows:
17	17	CHAPTER 2264. CERTAIN RESTRICTIONS ON [USE OF CERTAIN] PUBLIC
18	18	SUBSIDIES AND STATE CONTRACTS
19	19	SECTION 1.02. Section 2264.101, Government Code, is
20	20	transferred to Subchapter B, Chapter 2264, Government Code,
21	21	redesignated as Section 2264.054, Government Code, and amended to
22	22	read as follows:
23	23	Sec. 2264.054 [2264.101]. RECOVERY. (a) A public agency,
24	24	local taxing jurisdiction, or economic development corporation, or
25	25	the attorney general on behalf of the state or a state agency, may
26	26	bring a civil action to recover any amounts owed to the public
27	27	agency, state or local taxing jurisdiction, or economic development
28	28	corporation under this subchapter [chapter].
29	29	(b) The public agency, local taxing jurisdiction, economic
30	30	development corporation, or attorney general, as applicable, shall
31	31	recover court costs and reasonable attorney's fees incurred in an
32	32	action brought under Subsection (a).
33	33	(c) A business is not liable for a violation of this
34	34	subchapter [chapter] by a subsidiary, affiliate, or franchisee of
35	35	the business, or by a person with whom the business contracts.
36	36	SECTION 1.03. The heading to Subchapter C, Chapter 2264,
37	37	Government Code, is amended to read as follows:
38	38	SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT]
39	39	SECTION 1.04. Subchapter C, Chapter 2264, Government Code,
40	40	is amended by adding Sections 2264.1011, 2264.102, 2264.103,
41	41	2264.104, and 2264.105 to read as follows:
42	42	Sec. 2264.1011. DEFINITIONS. In this subchapter:
43	43	(1) "E-verify program" has the meaning assigned by
44	44	Section 673.001.
45	45	(2) "State agency" has the meaning assigned by Section
46	46	2103.001.
47	47	Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state
48	48	agency may not award a contract for goods or services within this
49	49	state to a contractor unless the contractor and any subcontractor
50	50	register with and participate in the E-verify program to verify
51	51	employee information. The contractor and any subcontractor must
52	52	continue to participate in the program during the term of the
53	53	contract.
54	54	(b) Each contract with a state agency must include the
55	55	following statement:
56	56	"______________ (name of contractor) certifies that
57	57	__________ (name of contractor) is not ineligible to receive this
58	58	contract under Subchapter C, Chapter 2264, Government Code, and
59	59	acknowledges that if this certification is inaccurate or becomes
60	60	inaccurate during the term of the contract, the contractor may be
61	61	barred from participating in state contracts."
62	62	(c) If a state agency determines that a contractor was
63	63	ineligible to have the contract awarded under Subsection (a), that
64	64	a contractor has ceased participation in the E-verify program
65	65	during the term of the contract, or that a subcontractor is not
66	66	registered with or is not participating in the E-verify program,
67	67	the state agency shall terminate the contract and refer the matter
68	68	to the comptroller for action.
69	69	(d) Each state agency shall develop procedures for the
70	70	administration of this section.
71	71	Sec. 2264.103. EXCEPTION. A contractor or subcontractor
72	72	under a contract to which Section 2264.102 applies is not required
73	73	to verify employee information through the E-verify program during
74	74	any year for which the federal government has not funded the
75	75	E-verify program.
76	76	Sec. 2264.104. BARRING FROM STATE CONTRACTS. (a) Using
77	77	procedures prescribed under Section 2155.077, the comptroller may
78	78	bar a contractor from participating in state contracts if the
79	79	comptroller determines that the contractor:
80	80	(1) was awarded a contract in violation of Section
81	81	2264.102;
82	82	(2) has ceased participation in the E-verify program
83	83	during the term of the contract; or
84	84	(3) knowingly hired a subcontractor, other than a
85	85	subcontractor who acts exclusively as a supplier for the contract,
86	86	to perform work under the contract who is not registered with or is
87	87	not participating in the E-verify program.
88	88	(b) Debarment under this section is for a period of one year
89	89	except that the debarment may be extended by the comptroller for
90	90	additional one-year periods if the comptroller determines that the
91	91	grounds for debarment under this section continue to exist.
92	92	(c) It is an affirmative defense to a debarment proceeding
93	93	under this section that the contractor did not know that a
94	94	subcontractor hired to perform work under the contract is not
95	95	registered with or is not participating in the E-verify program.
96	96	Sec. 2264.105. CONTRACT TERMINATION. If a state agency
97	97	terminates a contract for a reason described by Section
98	98	2264.102(c), the agency may require the contractor to pay any costs
99	99	associated with the termination.
100	100	SECTION 1.05. Subtitle B, Title 2, Labor Code, is amended by
101	101	adding Chapter 53 to read as follows:
102	102	CHAPTER 53. VERIFICATION OF EMPLOYEE INFORMATION
103	103	Sec. 53.001. DEFINITIONS. In this chapter:
104	104	(1) "Commission" means the Texas Workforce
105	105	Commission.
106	106	(2) "Employee" means an individual who is employed by
107	107	an employer for compensation. The term includes an individual
108	108	employed on a part-time basis.
109	109	(3) "Employer" means a person, other than a
110	110	governmental entity or a sole proprietorship, who:
111	111	(A) employs one or more employees; or
112	112	(B) acts directly or indirectly in the interests
113	113	of an employer in relation to an employee.
114	114	(4) "Employment" means any service, including service
115	115	in interstate commerce, that is performed for wages or under a
116	116	contract of hire, whether written or oral or express or implied.
117	117	The term does not include any service performed by an individual for
118	118	wages if it is shown that the individual is free from control or
119	119	direction in the performance of the service, both under any
120	120	contract of service and in fact.
121	121	(5) "E-verify program" has the meaning assigned by
122	122	Section 673.001, Government Code.
123	123	(6) "Person not lawfully present" means a person who,
124	124	at the time of employment, is not:
125	125	(A) a citizen or national of the United States;
126	126	or
127	127	(B) an alien who is lawfully admitted for
128	128	permanent residence in the United States under the federal
129	129	Immigration and Nationality Act (8 U.S.C. Section 1101 et seq.) or
130	130	authorized to be employed by that Act or the United States attorney
131	131	general.
132	132	Sec. 53.002. EMPLOYEE STATUS. An employer may not classify
133	133	an individual performing services for the employer as an
134	134	independent contractor instead of as an employee of the employer
135	135	solely for the purpose of avoiding the requirements applicable to
136	136	an employer under this chapter.
137	137	Sec. 53.003. VERIFICATION AND RECORDS. (a) An employer
138	138	shall register and participate in the E-verify program to verify
139	139	information of all new employees.
140	140	(b) The employer must verify a new employee's information
141	141	not later than the third business day of the employee's employment.
142	142	If the E-verify program is unavailable during the first three
143	143	business days of the new employee's employment, the employer must
144	144	verify the employee's information by submitting the employment
145	145	eligibility verification form commonly referred to as the I-9 to
146	146	the appropriate governmental entity.
147	147	(c) An employer shall maintain a record of an employee
148	148	verification for at least three years.
149	149	Sec. 53.004. EXCEPTION. (a) An employer is not required to
150	150	verify employee information through the E-verify program during any
151	151	year for which the federal government has not funded the E-verify
152	152	program.
153	153	(b) For purposes of this section, Section 2264.103,
154	154	Government Code, and Section 181.003, Local Government Code, the
155	155	commission shall:
156	156	(1) monitor whether the federal government has funded
157	157	the E-verify program for the current year; and
158	158	(2) maintain in a conspicuous location on the
159	159	commission's Internet website updated information regarding
160	160	whether the federal government has funded the E-verify program for
161	161	the current year.
162	162	Sec. 53.005. ENFORCEMENT BY STATE AGENCIES; RULES. (a)
163	163	Notwithstanding any other law, each appropriate state agency shall
164	164	ensure that employers in this state comply with Section 53.003 and
165	165	may require compliance with that section as a condition of a
166	166	license, certificate, registration, permit, or other authorization
167	167	issued by the agency that is required for a person to practice or
168	168	engage in a particular business, occupation, or profession in this
169	169	state.
170	170	(b) Notwithstanding any other law, if a state agency that
171	171	issues a license, certificate, registration, permit, or other
172	172	authorization for a person to practice or engage in a particular
173	173	business, occupation, or profession in this state determines that
174	174	an employer's failure to comply with Section 53.003 has resulted in
175	175	the employer's employment of a person not lawfully present, the
176	176	state agency may:
177	177	(1) suspend or revoke any license, certificate,
178	178	registration, permit, or other authorization issued by the agency
179	179	to the employer, as follows:
180	180	(A) for an employer who employs at least one but
181	181	not more than 10 persons not lawfully present, suspension for 30
182	182	days;
183	183	(B) for an employer who employs at least 11 but
184	184	not more than 50 persons not lawfully present, suspension for 60
185	185	days; and
186	186	(C) for an employer who employs 51 or more
187	187	persons not lawfully present, permanent revocation; and
188	188	(2) if applicable, require the employer to pay back
189	189	any economic development funds received as part of an economic
190	190	development program administered by this state.
191	191	(c) A proceeding under Subsection (b) is subject to Chapter
192	192	2001, Government Code.
193	193	(d) Each appropriate state agency shall adopt rules and
194	194	prescribe forms as necessary to implement this section.
195	195	SECTION 1.06. Subtitle C, Title 5, Local Government Code,
196	196	is amended by adding Chapter 181 to read as follows:
197	197	CHAPTER 181. VERIFICATION OF EMPLOYEE INFORMATION
198	198	Sec. 181.001. DEFINITIONS. In this chapter:
199	199	(1) "E-verify program" has the meaning assigned by
200	200	Section 673.001, Government Code.
201	201	(2) "Political subdivision" means a county,
202	202	municipality, school district, junior college district, other
203	203	special district, or other subdivision of state government.
204	204	Sec. 181.002. VERIFICATION AND RECORDS. (a) A political
205	205	subdivision shall register and participate in the E-verify program
206	206	to verify information of all new employees.
207	207	(b) The political subdivision must verify a new employee's
208	208	information not later than the third business day of the employee's
209	209	employment. If the E-verify program is unavailable during the
210	210	first three business days of the new employee's employment, the
211	211	political subdivision must verify the employee's information by
212	212	submitting the employment eligibility verification form commonly
213	213	referred to as the I-9 to the appropriate governmental entity.
214	214	(c) A political subdivision shall maintain a record of an
215	215	employee verification for at least three years.
216	216	Sec. 181.003. EXCEPTION. A political subdivision is not
217	217	required to verify employee information through the E-verify
218	218	program during any year for which the federal government has not
219	219	funded the E-verify program.
220	220	Sec. 181.004. TERMINATION OF EMPLOYMENT. An employee of a
221	221	political subdivision who is responsible for verifying information
222	222	of new employees of the political subdivision as required by
223	223	Section 181.002 is subject to immediate termination of employment
224	224	if the employee fails to comply with that section.
225	225	ARTICLE 2. TRANSITIONS AND EFFECTIVE DATE
226	226	SECTION 2.01. Each state agency subject to Subchapter C,
227	227	Chapter 2264, Government Code, as amended by this Act, shall
228	228	develop the procedures required under Section 2264.102(d),
229	229	Government Code, as added by this Act, not later than December 31,
230	230	2026.
231	231	SECTION 2.02. Sections 2264.1011, 2264.102, 2264.103,
232	232	2264.104, and 2264.105, Government Code, as added by this Act,
233	233	apply only in relation to a contract entered into on or after
234	234	January 1, 2027.
235	235	SECTION 2.03. As soon as practicable after the effective
236	236	date of this Act, each appropriate state agency subject to Section
237	237	53.005, Labor Code, as added by this Act, shall adopt rules and
238	238	prescribe forms as required by that section.
239	239	SECTION 2.04. Sections 53.003, Labor Code, and 181.002,
240	240	Local Government Code, as added by this Act, apply beginning
241	241	January 1, 2027.
242	242	SECTION 2.05. This Act takes effect immediately if it
243	243	receives a vote of two-thirds of all the members elected to each
244	244	house, as provided by Section 39, Article III, Texas Constitution.
245	245	If this Act does not receive the vote necessary for immediate
246	246	effect, this Act takes effect September 1, 2025.