Texas 2025 - 89th Regular

Texas Senate Bill SB324 Compare Versions

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

Old	New	Differences
1	1	89R742 SCP-D
2	2	By: Kolkhorst S.B. No. 324
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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.
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. VERIFICATION OF EMPLOYEE INFORMATION
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 or a sole proprietorship, who:
99	99	(A) employs one or more employees; or
100	100	(B) acts directly or indirectly in the interests
101	101	of an employer in relation to an employee.
102	102	(3) "Employment" means any service, including service
103	103	in interstate commerce, that is performed for wages or under a
104	104	contract of hire, whether written or oral or express or implied.
105	105	The term does not include any service performed by an individual for
106	106	wages if it is shown that the individual is free from control or
107	107	direction in the performance of the service, both under any
108	108	contract of service and in fact.
109	109	(4) "E-verify program" has the meaning assigned by
110	110	Section 673.001, Government Code.
111	111	Sec. 53.002. EMPLOYEE STATUS. An employer may not classify
112	112	an individual performing services for the employer as an
113	113	independent contractor instead of as an employee of the employer
114	114	solely for the purpose of avoiding the requirements applicable to
115	115	an employer under this chapter.
116	116	Sec. 53.003. VERIFICATION. An employer shall register and
117	117	participate in the E-verify program to verify information of all
118	118	new employees.
119	119	Sec. 53.004. ENFORCEMENT BY STATE AGENCIES; RULES. (a)
120	120	Notwithstanding any other law, each appropriate state agency shall
121	121	ensure that employers in this state comply with Section 53.003 and
122	122	may require compliance with that section as a condition of a
123	123	license, certificate, registration, permit, or other authorization
124	124	issued by the agency that is required for a person to practice or
125	125	engage in a particular business, occupation, or profession in this
126	126	state.
127	127	(b) Each appropriate state agency shall adopt rules and
128	128	prescribe forms as necessary to implement this section.
129	129	SECTION 6. Subtitle C, Title 5, Local Government Code, is
130	130	amended by adding Chapter 181 to read as follows:
131	131	CHAPTER 181. VERIFICATION OF EMPLOYEE INFORMATION
132	132	Sec. 181.001. DEFINITIONS. In this chapter:
133	133	(1) "E-verify program" has the meaning assigned by
134	134	Section 673.001, Government Code.
135	135	(2) "Political subdivision" means a county,
136	136	municipality, school district, junior college district, other
137	137	special district, or other subdivision of state government.
138	138	Sec. 181.002. VERIFICATION. A political subdivision shall
139	139	register and participate in the E-verify program to verify
140	140	information of all new employees.
141	141	Sec. 181.003. TERMINATION OF EMPLOYMENT. An employee of a
142	142	political subdivision who is responsible for verifying information
143	143	of new employees of the political subdivision as required by
144	144	Section 181.002 is subject to immediate termination of employment
145	145	if the employee fails to comply with that section.
146	146	SECTION 7. Each state agency subject to Subchapter C,
147	147	Chapter 2264, Government Code, as amended by this Act, shall
148	148	develop the procedures required under Section 2264.102(d),
149	149	Government Code, as added by this Act, not later than December 31,
150	150	2025.
151	151	SECTION 8. Sections 2264.1011, 2264.102, and 2264.103,
152	152	Government Code, as added by this Act, apply only in relation to a
153	153	contract for which the request for bids or proposals or other
154	154	applicable expression of interest is made public on or after the
155	155	effective date of this Act.
156	156	SECTION 9. As soon as practicable after the effective date
157	157	of this Act, each appropriate state agency subject to Section
158	158	53.004, Labor Code, as added by this Act, shall adopt rules and
159	159	prescribe forms as required by that section.
160	160	SECTION 10. Sections 53.003, Labor Code, and 181.002, Local
161	161	Government Code, as added by this Act, apply beginning January 1,
162	162	2027.
163	163	SECTION 11. This Act takes effect September 1, 2025.