By: Louderback H.B. No. 1488       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;   providing an administrative penalty.          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)  hired a subcontractor 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 commission determines that the   grounds for debarment under this section continue to exist.          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)  "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, 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.          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.  Sec. 301.009(a), Government Code, is amended to   read as follows:          Sec. 301.009.  COMMISSION DIVISIONS. (a)  The Commission   shall have:                (1)  a division of workforce development;                (2)  a division of unemployment compensation; [and]                (3)  a civil rights division[.]; and                (4)  a legal hiring compliance division.          SECTION 7.  Chapter 301, Labor Code, is amended by adding   Subchapter L. to read as follows:   SUBCHAPTER L. LEGAL HIRING COMPLIANCE DIVISION          Sec. 301.201.  LEGAL HIRING COMPLIANCE DIVISION. The   commission shall establish and operate a legal hiring compliance   division to ensure private employer compliance with E-verify   requirements under Chapter 53, Labor Code.          Sec. 301.202.  POWERS AND DUTIES OF COMMISSION. (a)  The   commission has the power to conduct investigations of employers   suspected of violating hiring laws and regulations regarding   unauthorized workers and noncompliance with E-verify requirements.          (b)  The commission may receive complaints or reports from   any individual, organization, or government agency regarding   suspected violations of legal hiring practices.  The commission   shall review all complaints and shall initiate investigations to   determine compliance with E-verify requirements under Chapter 53,   Labor Code.          (c)  A complaint filed with the commission must include the   following information:                (1)  the name of the complainant;                (2)  the name of the employer; and                (3)  the nature and description of any alleged   violation.          Sec. 301.203.  CONFIDENTIALITY. (a)  Information obtained   in connection with an investigation under this subchapter is   confidential and not subject to public disclosure, except as   otherwise provided by law.          (b)  The commission may disclose information:                (1)  to other state agencies for the purposes of   reporting continued noncompliance with Chapter 53, Labor Code; and                (2)  to the comptroller for the purposes of determining   continued eligibility for state contracts under Chapter 2264,   Subchapter C, Government Code.          Sec. 301.204.  ADMINISTRATIVE PENALTY. (a)  The commission   shall impose on an employer who violates this chapter an   administrative penalty in an amount equal to $5,000 for each   violation, unless the employer takes corrective action to achieve   compliance.          (b)  If, following an investigation under Section   301.202(b), the commission determines that the employer violated   this chapter, the commission may recover from the employer   reasonable investigative costs incurred by the commission in   conducting the investigation, regardless of whether the employer   has taken an action described by Subsection (a).          Sec. 301.205.  NOTICE TO LICENSING AGENCIES. If the   commission determines that an employer has refused to take   corrective action as required by this subchapter, the commission   shall send notice of continued noncompliance to each state agency   that issues a license to the employer for action under Sec. 53.004,   Labor Code.          Sec. 301.206.  MODEL POLICIES AND COMPLIANCE GUIDANCE. (a)   The commission shall develop model policies and standardized forms   to support private employers in fulfilling legal hiring   obligations.  Model policies adopted under this section must   include procedures and compliance checklists to ensure adherence to   E-Verify regulations and prevent unauthorized hiring practices.          (b)  The commission shall provide publicly available   information regarding:                (1)  how to report suspected violations of mandatory   E-verify regulations; and                (2)  the commission's jurisdiction and authority   regarding investigations of E-verify noncompliance.          Sec. 301.207.  RULES. The commission shall adopt rules as   necessary to implement and enforce this subchapter.          SECTION 8.  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 9.  SEVERABILITY. If any provision of this Act or   its application to any person or circumstance is held invalid, the   invalidity does not affect other provisions or applications of this   Act that can be given effect without the invalid provision or   application, and to this end, the provisions of this Act are   declared to be severable.          SECTION 10.  As soon as practicable after the effective date   of this Act, the commission shall develop model policies required   by Sec. 301.206, Government Code.          SECTION 11.  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 12.  This Act applies to employment decisions or   contracts made on or after the effective date of this Act.  A   contract of employment signed before the effective date of this Act   are governed by the law that was in effect immediately before the   effective date of this Act, and the former law is continued in   effect for that purpose.          SECTION 13.  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.