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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring state contractors, political subdivisions of |
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this state, and private employers to participate in the federal |
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electronic verification of employment authorization program, or |
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E-verify. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 2264, Government Code, is |
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amended to read as follows: |
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CHAPTER 2264. CERTAIN RESTRICTIONS ON [USE OF CERTAIN] PUBLIC |
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SUBSIDIES AND STATE CONTRACTS |
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SECTION 2. Section 2264.101, Government Code, is |
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transferred to Subchapter B, Chapter 2264, Government Code, |
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redesignated as Section 2264.054, Government Code, and amended to |
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read as follows: |
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Sec. 2264.054 [2264.101]. RECOVERY. (a) A public agency, |
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local taxing jurisdiction, or economic development corporation, or |
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the attorney general on behalf of the state or a state agency, may |
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bring a civil action to recover any amounts owed to the public |
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agency, state or local taxing jurisdiction, or economic development |
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corporation under this subchapter [chapter]. |
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(b) The public agency, local taxing jurisdiction, economic |
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development corporation, or attorney general, as applicable, shall |
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recover court costs and reasonable attorney's fees incurred in an |
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action brought under Subsection (a). |
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(c) A business is not liable for a violation of this |
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subchapter [chapter] by a subsidiary, affiliate, or franchisee of |
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the business, or by a person with whom the business contracts. |
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SECTION 3. The heading to Subchapter C, Chapter 2264, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT] |
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SECTION 4. Subchapter C, Chapter 2264, Government Code, is |
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amended by adding Sections 2264.1011, 2264.102, and 2264.103 to |
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read as follows: |
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Sec. 2264.1011. DEFINITIONS. In this subchapter: |
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(1) "E-verify program" has the meaning assigned by |
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Section 673.001. |
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(2) "State agency" has the meaning assigned by Section |
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2103.001. |
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Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state |
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agency may not award a contract for goods or services within this |
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state to a contractor unless the contractor and any subcontractor |
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register with and participate in the E-verify program to verify |
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employee information. The contractor and any subcontractor must |
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continue to participate in the program during the term of the |
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contract. |
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(b) Each contract with a state agency must include the |
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following statement: |
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"______________ (name of contractor) certifies that |
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__________ (name of contractor) is not ineligible to receive this |
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contract under Subchapter C, Chapter 2264, Government Code, and |
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acknowledges that if this certification is inaccurate or becomes |
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inaccurate during the term of the contract, the contractor may be |
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barred from participating in state contracts." |
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(c) If a state agency determines that a contractor was |
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ineligible to have the contract awarded under Subsection (a), that |
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a contractor has ceased participation in the E-verify program |
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during the term of the contract, or that a subcontractor is not |
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registered with or is not participating in the E-verify program, |
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the state agency shall refer the matter to the comptroller for |
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action. |
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(d) Each state agency shall develop procedures for the |
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administration of this section. |
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Sec. 2264.103. BARRING FROM STATE CONTRACTS. (a) Using |
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procedures prescribed under Section 2155.077, the comptroller may |
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bar a contractor from participating in state contracts if the |
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comptroller determines that the contractor: |
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(1) was awarded a contract in violation of Section |
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2264.102; |
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(2) has ceased participation in the E-verify program |
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during the term of the contract; or |
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(3) knowingly hired a subcontractor, other than a |
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subcontractor who acts exclusively as a supplier for the contract, |
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to perform work under the contract who is not registered with or is |
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not participating in the E-verify program. |
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(b) Debarment under this section is for a period of one year |
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except that the debarment may be extended by the comptroller for |
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additional one-year periods if the comptroller determines that the |
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grounds for debarment under this section continue to exist. |
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(c) It is an affirmative defense to a debarment proceeding |
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under this section that the contractor did not know that a |
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subcontractor hired to perform work under the contract is not |
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registered with or is not participating in the E-verify program. |
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SECTION 5. Subtitle B, Title 2, Labor Code, is amended by |
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adding Chapter 53 to read as follows: |
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CHAPTER 53. VERIFICATION OF EMPLOYEE INFORMATION |
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Sec. 53.001. DEFINITIONS. In this chapter: |
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(1) "Employee" means an individual who is employed by |
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an employer for compensation. The term includes an individual |
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employed on a part-time basis. |
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(2) "Employer" means a person, other than a |
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governmental entity or a sole proprietorship, who: |
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(A) employs one or more employees; or |
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(B) acts directly or indirectly in the interests |
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of an employer in relation to an employee. |
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(3) "Employment" means any service, including service |
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in interstate commerce, that is performed for wages or under a |
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contract of hire, whether written or oral or express or implied. |
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The term does not include any service performed by an individual for |
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wages if it is shown that the individual is free from control or |
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direction in the performance of the service, both under any |
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contract of service and in fact. |
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(4) "E-verify program" has the meaning assigned by |
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Section 673.001, Government Code. |
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Sec. 53.002. EMPLOYEE STATUS. An employer may not classify |
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an individual performing services for the employer as an |
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independent contractor instead of as an employee of the employer |
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solely for the purpose of avoiding the requirements applicable to |
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an employer under this chapter. |
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Sec. 53.003. VERIFICATION. An employer shall register and |
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participate in the E-verify program to verify information of all |
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new employees. |
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Sec. 53.004. ENFORCEMENT BY STATE AGENCIES; RULES. (a) |
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Notwithstanding any other law, each appropriate state agency shall |
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ensure that employers in this state comply with Section 53.003 and |
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may require compliance with that section as a condition of a |
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license, certificate, registration, permit, or other authorization |
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issued by the agency that is required for a person to practice or |
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engage in a particular business, occupation, or profession in this |
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state. |
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(b) Each appropriate state agency shall adopt rules and |
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prescribe forms as necessary to implement this section. |
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SECTION 6. Subtitle C, Title 5, Local Government Code, is |
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amended by adding Chapter 181 to read as follows: |
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CHAPTER 181. VERIFICATION OF EMPLOYEE INFORMATION |
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Sec. 181.001. DEFINITIONS. In this chapter: |
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(1) "E-verify program" has the meaning assigned by |
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Section 673.001, Government Code. |
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(2) "Political subdivision" means a county, |
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municipality, school district, junior college district, other |
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special district, or other subdivision of state government. |
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Sec. 181.002. VERIFICATION. A political subdivision shall |
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register and participate in the E-verify program to verify |
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information of all new employees. |
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Sec. 181.003. TERMINATION OF EMPLOYMENT. An employee of a |
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political subdivision who is responsible for verifying information |
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of new employees of the political subdivision as required by |
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Section 181.002 is subject to immediate termination of employment |
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if the employee fails to comply with that section. |
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SECTION 7. Each state agency subject to Subchapter C, |
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Chapter 2264, Government Code, as amended by this Act, shall |
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develop the procedures required under Section 2264.102(d), |
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Government Code, as added by this Act, not later than December 31, |
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2025. |
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SECTION 8. Sections 2264.1011, 2264.102, and 2264.103, |
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Government Code, as added by this Act, apply only in relation to a |
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contract for which the request for bids or proposals or other |
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applicable expression of interest is made public on or after the |
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effective date of this Act. |
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SECTION 9. As soon as practicable after the effective date |
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of this Act, each appropriate state agency subject to Section |
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53.004, Labor Code, as added by this Act, shall adopt rules and |
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prescribe forms as required by that section. |
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SECTION 10. Sections 53.003, Labor Code, and 181.002, Local |
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Government Code, as added by this Act, apply beginning January 1, |
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2027. |
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SECTION 11. This Act takes effect September 1, 2025. |