Olcott E-Verify Bill Starts For Private Employers In 2027

The text as introduced · 1,284 words

89R742 SCP-D

By: Olcott
H.B. No. 3210

A BILL TO BE ENTITLED

AN ACT

relating to requiring state contractors, political subdivisions of

this state, and private employers to participate in the federal

electronic verification of employment authorization program, or

E-verify.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. 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 2. 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 3. The heading to Subchapter C, Chapter 2264,

Government Code, is amended to read as follows:

SUBCHAPTER C. E-VERIFY PROGRAM [ ENFORCEMENT ]

SECTION 4. Subchapter C, Chapter 2264, Government Code, is

amended by adding Sections 2264.1011, 2264.102, and 2264.103 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 refer the matter to the comptroller for

action.

(d) Each state agency shall develop procedures for the

administration of this section.

Sec. 2264.103. 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.

SECTION 5. 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) "Employee" means an individual who is employed by

an employer for compensation. The term includes an individual

employed on a part-time basis.

(2) "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.

(3) "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.

(4) "E-verify program" has the meaning assigned by

Section 673.001, Government Code.

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. An employer shall register and

participate in the E-verify program to verify information of all

new employees.

Sec. 53.004. 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) Each appropriate state agency shall adopt rules and

prescribe forms as necessary to implement this section.

SECTION 6. 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. A political subdivision shall

register and participate in the E-verify program to verify

information of all new employees.

Sec. 181.003. 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.

SECTION 7. 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,

2025.

SECTION 8. Sections 2264.1011, 2264.102, and 2264.103,

Government Code, as added by this Act, apply only in relation to a

contract for which the request for bids or proposals or other

applicable expression of interest is made public on or after the

effective date of this Act.

SECTION 9. As soon as practicable after the effective date

of this Act, each appropriate state agency subject to Section

53.004, Labor Code, as added by this Act, shall adopt rules and

prescribe forms as required by that section.

SECTION 10. Sections 53.003, Labor Code, and 181.002, Local

Government Code, as added by this Act, apply beginning January 1,

2027.

SECTION 11. This Act takes effect September 1, 2025.