Relating to employment practices of governmental entities, state contractors, and private employers in this state regarding the legal status of employees, including requiring participation in the federal electronic verification of employment authorization program, or E-verify program, and authorizing the suspension of certain licenses held by private employers for certain conduct in relation to the employment of persons not lawfully present.

89(R) HB 1308 - Introduced version - Bill Text

89R610 RDS-D

By: Tepper

H.B. No. 1308

A BILL TO BE ENTITLED

AN ACT

relating to employment practices of governmental entities, state

contractors, and private employers in this state regarding the

legal status of employees, including requiring participation in the

federal electronic verification of employment authorization

program, or E-verify program, and authorizing the suspension of

certain licenses held by private employers for certain conduct in

relation to the employment of persons not lawfully present.

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)

Except as

provided by Subsection (b), 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)

This section does not apply to a contract for goods or

services:

(1)

a state agency determines is necessary to the

operation of the agency; and

(2)

for which the agency can find no reasonable

alternative to a bid submitted by a contractor that does not

participate in the E-verify program or require its subcontractors

to participate in the E-verify program.

(c)

Each contract with a state agency must include the

following statement:

"The contractor certifies that the 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."

(d)

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.

(e)

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 was awarded a contract

in violation of Section 2264.102 or, in violation of Section

2264.102:

(1)

has ceased participation in the E-verify program

during the term of the contract; or

(2)

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 A, Title 6, Government Code, is amended

by adding Chapter 621 to read as follows:

CHAPTER 621. VERIFICATION OF EMPLOYEE INFORMATION; EMPLOYMENT OF

PERSONS NOT LAWFULLY PRESENT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 621.001. DEFINITIONS. In this chapter:

(1)

"E-verify program" has the meaning assigned by

Section 673.001.

(2)

"Governmental entity" has the meaning assigned by

Section 620.001, except that the term includes a school district or

open-enrollment charter school.

(3)

"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 by the United States

attorney general.

SUBCHAPTER B. VERIFICATION OF EMPLOYEE INFORMATION

Sec.

621.051.

E-VERIFY PROGRAM.

(a) A governmental entity

shall register and participate in the E-verify program to verify

information of all new employees.

(b)

This section may not be construed as limiting a

requirement imposed on a state agency under Chapter 673.

SUBCHAPTER C. EMPLOYMENT OF PERSONS NOT LAWFULLY PRESENT

Sec.

621.101.

PROHIBITED EMPLOYMENT. A governmental entity

may not knowingly hire, employ, recruit, or refer for a fee a person

not lawfully present.

SUBCHAPTER D. ENFORCEMENT

Sec.

621.151.

REPORTING VIOLATION. (a) A person who has a

reasonable belief that a governmental entity violated this chapter

may report the allegation to the attorney general.

(b)

The person alleging a violation under Subsection (a)

must, to the extent known by the person, provide to the attorney

general:

(1)

the name, address, and telephone number of the

person filing the report;

(2) the name and address of the governmental entity;

(3)

if applicable, the name of the person alleged to be

a person not lawfully present who has performed or will perform work

for the governmental entity;

(4)

the information that caused the person to make the

report and the source of the information; and

(5) any other information relevant to the allegation.

Sec.

621.152.

INVESTIGATION. (a) On receipt of a report

made under Section 621.151, the attorney general shall determine

whether reasonable cause exists to merit an investigation of the

allegation. If the attorney general determines reasonable cause

exists, the attorney general shall conduct an investigation.

(b)

A governmental entity must comply with reasonable

requests for documents or other information made by the attorney

general during an investigation conducted under this section,

including a request for:

(1)

documents related to the legal status of an

employee;

(2)

if applicable, evidence related to the entity's

affirmative defense under Section 621.153;

(3)

documents related to the entity's finances and

operations; or

(4)

other documents or information the attorney

general determines necessary for conducting the investigation.

(c)

The attorney general may request the assistance of the

Department of Public Safety and local law enforcement entities to

ensure compliance with this section.

(d)

In conducting an investigation under this section, the

attorney general may not interview a minor or collect information

related to a minor without first obtaining consent from the minor's

parent or legal guardian.

(e)

Information the attorney general obtains during an

investigation under this section is confidential and excepted from

disclosure under Chapter 552 but may be used in an administrative

proceeding under this chapter at the attorney general's discretion.

Sec.

621.153.

AFFIRMATIVE DEFENSE. It is an affirmative

defense to a proceeding under this subchapter in relation to an

alleged violation of Subchapter C that the governmental entity

complied in good faith with the document review requirements

described by the federal Immigration Reform and Control Act of 1986

(8 U.S.C. Section 1324a(b)).

Sec.

621.154.

DETERMINATION BY ATTORNEY GENERAL;

OPPORTUNITY TO CURE. (a) If the attorney general determines under

Section 621.152 that a governmental entity violated this chapter,

the attorney general shall provide written notice of the

determination to the entity.

The notice must explain the

governmental entity's options for taking corrective action to cure

the violation, which must include:

(1)

for a violation under Section 621.051, submitting

to the attorney general evidence that the entity has registered and

is participating in the E-verify program to verify information of

all new employees; or

(2)

for a violation under Section 621.101, submitting

to the attorney general, as applicable:

(A)

evidence that the person not lawfully present

is no longer employed by or working for the entity; or

(B)

a sworn statement attesting that the entity

has ceased and will continue to cease recruiting or referring for a

fee persons not lawfully present.

(b)

On receipt of notice from the attorney general under

Subsection (a), the governmental entity shall take appropriate

corrective action to cure the violation. Not later than the 10th

business day after the date the governmental entity receives the

notice, the entity must notify the attorney general of the

corrective action taken by the entity to cure the violation.

(c)

If the attorney general determines that the

governmental entity has taken appropriate corrective action under

Subsection (b), the attorney general shall close the investigation

and promptly notify the entity accordingly.

Sec.

621.155.

STATE GRANT FUNDING ELIGIBILITY. (a)

A

governmental entity is ineligible to receive grant funding from

this state if:

(1)

the entity fails to reply to the attorney general's

notice under Section 621.154; or

(2)

the attorney general determines that the

corrective action taken by the entity under that section did not

cure the entity's violation.

(b)

The attorney general shall provide to a governmental

entity described by Subsection (a) written notice, as applicable,

that:

(1) the entity:

(A) is in violation of this chapter;

(B)

is ineligible to receive grant funding from

this state; and

(C)

may take appropriate corrective action to

cure the violation and become eligible to receive state grant

funding; or

(2) the entity:

(A)

has failed to reply to the attorney general's

notice under Section 621.154;

(B)

is ineligible to receive grant funding from

the state; and

(C)

may reply to the notice and become eligible

to receive state grant funding.

Sec. 621.156. COMPTROLLER RECORDS.

(a)

The comptroller

shall maintain a list of governmental entities identified by the

attorney general under Subsection (b) for purposes of ensuring that

an entity included in the list does not receive grant funding from

this state.

(b)

At the time the attorney general sends notice to a

governmental entity under Section 621.155(b), the attorney general

shall provide to the comptroller the identity of the entity for

inclusion in the list the comptroller maintains under Subsection

(a).

(c)

Information provided to the comptroller by the attorney

general under this section is confidential and excepted from

disclosure under Chapter 552.

Sec.

621.157.

REINSTATEMENT OF GRANT ELIGIBILITY. (a)

A

governmental entity may request that the attorney general reinstate

the entity's eligibility to receive grant funding from this state

by notifying the attorney general, as appropriate, of:

(1)

corrective action taken by the entity to cure the

violation; or

(2)

the entity's reply to the attorney general's

notice under Section 621.154.

(b)

If the attorney general determines that the corrective

action taken by the governmental entity cured the violation or that

the entity's reply is responsive to the notice, as appropriate, the

entity becomes eligible to receive grant funding from this state.

(c)

At the time the attorney general makes a determination

under Subsection (b), the attorney general shall instruct the

comptroller to remove the governmental entity from the list the

comptroller maintains under Section 621.156, and the comptroller

shall remove the entity from the list.

SECTION 6. Subtitle B, Title 2, Labor Code, is amended by

adding Chapter 53 to read as follows:

CHAPTER 53.

VERIFICATION OF EMPLOYEE INFORMATION; EMPLOYMENT OF

PERSONS NOT LAWFULLY PRESENT

SUBCHAPTER A.

GENERAL PROVISIONS

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, who:

(A) employs at least 25 employees; or

(B)

acts directly or indirectly in the interests

of an employer in relation to an employee.

(3)

"E-verify program"

has the meaning assigned by

Section 673.001, Government Code.

(4)

"License" means a license, certificate,

registration, permit, or other authorization that:

(A) is issued by a licensing authority;

(B)

is subject before expiration to renewal,

suspension, revocation, forfeiture, or termination by a licensing

authority; and

(C)

is required for a person to practice or

engage in a particular business, occupation, or profession.

(5)

"Licensing authority" means a department,

commission, board, office, or other agency of this state that

issues or renews a license.

(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 by 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.

SUBCHAPTER B. VERIFICATION OF EMPLOYEE INFORMATION

Sec.

53.051.

VERIFICATION.

An employer shall register and

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

new employees.

SUBCHAPTER C. EMPLOYMENT OF PERSONS NOT LAWFULLY PRESENT

Sec.

53.101.

PROHIBITED EMPLOYMENT. An employer may not

knowingly hire, employ, recruit, or refer for a fee an individual

who is a person not lawfully present.

SUBCHAPTER D.

ENFORCEMENT

Sec.

53.151.

REPORTING VIOLATION. (a)

A person who has a

reasonable belief that an employer violated this chapter may report

the allegation to the attorney general.

(b)

The person alleging a violation under Subsection (a)

must, to the extent known by the person, provide to the attorney

general:

(1)

the name, address, and telephone number of the

person filing the report;

(2) the name and address of the employer;

(3)

if applicable, the name of the person not lawfully

present who has performed or will perform work for the employer;

(4)

the information that caused the person to make the

report and the source of the information; and

(5) any other information relevant to the allegation.

Sec.

53.152.

INVESTIGATION BY ATTORNEY GENERAL. (a)

On

receipt of a report made under Section 53.151, the attorney general

shall determine whether reasonable cause exists to merit an

investigation of the allegation.

If the attorney general

determines reasonable cause exists, the attorney general shall

conduct an investigation.

(b)

An employer must comply with reasonable requests for

documents or other information made by the attorney general during

an investigation, including a request for:

(1)

documents related to the legal status of an

employee;

(2)

if applicable, evidence related to an employer's

affirmative defense under Section 53.153;

(3)

documents related to the employer's finances and

operations;

(4) a list of all licenses held by the employer; and

(5)

other documents or information the attorney

general determines necessary for conducting the investigation.

(c)

The attorney general may request the assistance of the

Department of Public Safety and local law enforcement entities to

ensure compliance with this section.

(d)

In conducting an investigation under this section, the

attorney general may not:

(1)

interview a minor or collect information related

to a minor without first obtaining consent from the minor's parent

or legal guardian; or

(2)

visit the employer's premises at an unreasonable

time without obtaining the employer's consent.

(e)

Information obtained during an investigation under this

section is confidential and excepted from disclosure under Chapter

552, but may be used in an administrative proceeding under this

chapter at the attorney general's discretion.

Sec.

53.153.

AFFIRMATIVE DEFENSE. It is an affirmative

defense to a proceeding under this subchapter in relation to an

alleged violation of Subchapter C that the employer complied in

good faith with the document review requirements described by the

federal Immigration Reform and Control Act of 1986 (8 U.S.C.

Section 1324a(b)).

Sec.

53.154.

INITIAL DETERMINATION BY ATTORNEY GENERAL;

OPPORTUNITY TO CURE.

(a)

If the attorney general determines under

Section 53.152 that the employer violated this chapter, the

attorney general shall provide written notice of the determination

to the employer.

The notice must:

(1)

explain the employer's options for taking

corrective action to cure the violation, which must include:

(A)

for a violation under Section 53.002,

submitting to the attorney general evidence that the employer is

properly classifying individuals performing services for the

employer, together with a sworn statement attesting that the

employer will continue to do so;

(B)

for a violation under Section 53.051,

submitting to the attorney general evidence that the employer has

registered and is participating in the E-verify program to verify

information of all new employees; or

(C)

for a violation under Section 53.101,

submitting to the attorney general, as applicable:

(i)

evidence that the person not lawfully

present is no longer employed by or working for the employer; or

(ii)

a sworn statement attesting that the

employer has ceased and will continue to cease recruiting or

referring for a fee persons not lawfully present; and

(2)

inform the employer that each license held by the

employer is subject to suspension if the employer does not take

appropriate corrective action and notify the attorney general of

that action in the time prescribed by Subsection (b).

(b)

On receipt of notice from the attorney general under

Subsection (a), the employer shall take appropriate corrective

action to cure the violation. Not later than the 10th business day

after the date the employer receives the notice, the employer must

notify the attorney general of the corrective action taken by the

employer to cure the violation.

Sec.

53.155.

FINAL DETERMINATION BY ATTORNEY GENERAL;

LICENSE SUSPENSION FOR FAILURE TO CURE; RIGHT TO JUDICIAL REVIEW.

(a)

If the attorney general determines that an employer has taken

appropriate corrective action under Section 53.154(b), the

attorney general shall close the investigation and promptly notify

the employer accordingly.

(b)

If the attorney general determines that an employer

failed to reply to the attorney general's notice under Section

53.154(b) or that the corrective action taken by the employer under

that subsection did not cure the employer's violation, the attorney

general shall promptly provide written notice to the employer that:

(1)

the employer has been finally determined by the

attorney general to have violated this chapter; and

(2)

each license issued to the employer by a licensing

authority will be suspended for a period of two years, subject to

judicial review of the attorney general's determination as a

contested case under Chapter 2001, Government Code.

(c)

Not later than the 30th day after the date an employer

receives notice under Subsection (b), an employer may seek judicial

review as provided by Chapter 2001, Government Code, of the

attorney general's determination.

Sec.

53.156.

ORDER FOR LICENSE SUSPENSION. If an employer

finally determined by the attorney general to have violated this

chapter does not seek judicial review of the attorney general's

determination in the time prescribed by Section 53.155 or does not

prevail on judicial review, the attorney general shall promptly:

(1)

render a final order suspending each license held

by the employer for a period of two years; and

(2) send a copy of the order to:

(A) the employer; and

(B)

each licensing authority that issued a

license held by the employer.

Sec.

53.157.

ACTION BY LICENSING AUTHORITY. (a)

On receipt

from the attorney general of a final order under this chapter

suspending an employer's license, a licensing authority shall

immediately determine if the authority has issued a license to the

person named on the order and, if a license has been issued:

(1)

record the suspension of the license in the

licensing authority's records;

(2) report the suspension as appropriate;

(3)

provide written notice of the suspension to the

person; and

(4)

demand surrender of the suspended license if

required by law for other cases in which a license is suspended.

(b)

A licensing authority shall implement the terms of a

final order suspending a license without additional review or

hearing. The authority may provide notice as appropriate to the

license holder or to others concerned with the license.

(c)

A licensing authority may not modify, remand, reverse,

vacate, or stay an order suspending a license issued under this

chapter and may not review, vacate, or reconsider the terms of a

final order suspending a license.

(d)

A person who is the subject of a final order suspending a

license is not entitled to a refund for any fee or other amount paid

to the licensing authority.

(e)

A person who continues to engage in the business,

occupation, profession, or other licensed activity after the

implementation of the order suspending a license by the licensing

authority is liable for the same civil, administrative, and

criminal penalties provided for engaging in the licensed activity

without a license or while a license is suspended that apply to any

other license holder of that licensing authority.

(f)

A licensing authority is exempt from liability to a

license holder for any act authorized under this chapter performed

by the authority.

(g)

Except as provided by this chapter, an order suspending

a license does not affect the power of a licensing authority to

grant, deny, suspend, revoke, terminate, or renew a license.

Sec.

53.158.

ENFORCEMENT BY STATE AGENCIES; RULES.

(a)

Notwithstanding any other law and in addition to any duty relating

to the enforcement of this chapter that is assigned to another

governmental entity by this subchapter, each appropriate state

agency shall ensure that employers in this state comply with this

chapter and may require compliance with this chapter as a condition

of a license.

(b)

Each appropriate state agency shall adopt rules and

prescribe forms as necessary to implement this section.

SECTION 7. Subchapter A, Chapter 204, Labor Code, is

amended by adding Section 204.0021 to read as follows:

Sec.

204.0021.

ADDITIONAL REQUIREMENT FOR WAGE REPORTING.

Any verification form or electronic process used by the commission

for an employer to report wages paid by the employer for purposes of

this subtitle must require the employer to certify the employer's

compliance with Chapter 53.

SECTION 8. 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(e),

Government Code, as added by this Act, not later than December 31,

2025.

SECTION 9. 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 10. As soon as practicable after the effective date

of this Act, each appropriate state agency subject to Section

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

prescribe forms as required by that section.

SECTION 11. Section 204.0021, Labor Code, Subchapter C,

Chapter 53, Labor Code, and Chapter 621, Government Code, as added

by this Act, apply beginning January 1, 2027.

SECTION 12. It is the intent of the legislature that every

provision in this Act, and every application of the provisions in

this Act to every person, group of persons, or circumstances, is

severable from each other. If any application of any provision in

this Act to any person, group of persons, or circumstances is found

by a court to be invalid for any reason, the remaining applications

of that provision to all other persons and circumstances shall be

severed and may not be affected.

SECTION 13. This Act takes effect September 1, 2025.