HB3210 - 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.

  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.