Hall’s E-Verify Mandate Starts After The 2026 Election

The text as introduced · 1,941 words

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.