84R4260 KSD/MTB-D
	By: Bonnen of Galveston	H.B. No. 630

	A BILL TO BE ENTITLED
	AN ACT
	relating to requiring state contractors and governmental entities
	to participate in the federal electronic verification of work
	authorization program, or E-Verify, and authorizing the suspension
	of certain licenses held by private employers for the knowing
	employment of persons not lawfully present in this state;
	authorizing a fee.
	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" means the electronic
	verification of employment authorization program of the federal
	Illegal Immigration Reform and Immigrant Responsibility Act of 1996
	(Pub. L. No. 104-208, reprinted in note, 8 U.S.C. Section 1324a),
	operated by the United States Department of Homeland Security, or a
	successor employment authorization program designated by the
	United States Department of Homeland Security or other federal
	agency authorized to verify the employment authorization status of
	newly hired employees pursuant to the federal Immigration Reform
	and Control Act of 1986 (8 U.S.C. Section 1101 et seq.).
	(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
	shall 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 comptroller determines that the
	grounds for debarment under this section continue to exist.
	SECTION 5.  Subtitle A, Title 6, Government Code, is amended
	by adding Chapter 619 to read as follows:
	CHAPTER 619.  VERIFICATION OF EMPLOYEE INFORMATION
	Sec. 619.001.  DEFINITIONS. In this chapter:
	(1)  "E-Verify program" means the electronic
	verification of employment authorization program of the federal
	Illegal Immigration Reform and Immigrant Responsibility Act of 1996
	(Pub. L. No. 104-208, reprinted in note, 8 U.S.C. Section 1324a),
	operated by the United States Department of Homeland Security, or a
	successor employment authorization program designated by the
	United States Department of Homeland Security or other federal
	agency authorized to verify the employment authorization status of
	newly hired employees pursuant to the federal Immigration Reform
	and Control Act of 1986 (8 U.S.C. Section 1101 et seq.).
	(2)  "Governmental entity" means:
	(A)  the state; or
	(B)  a political subdivision of the state,
	including a municipality, a county, or any kind of district.
	Sec. 619.002.  VERIFICATION. A governmental entity shall
	register and participate in the E-Verify program to verify
	information of all new employees.
	Sec. 619.003.  RULES. The Texas Workforce Commission shall
	adopt rules and prescribe forms to implement this chapter.
	Sec. 619.004.  TERMINATION OF EMPLOYMENT.  An employee of a
	governmental entity who is responsible for verifying information of
	new employees of the governmental entity as required by Section
	619.002 is subject to immediate termination of employment if the
	employee fails to comply with that section.
	SECTION 6.  Subtitle B, Title 2, Labor Code, is amended by
	adding Chapter 53 to read as follows:
	CHAPTER 53. EMPLOYMENT OF PERSONS NOT LAWFULLY PRESENT IN UNITED
	STATES
	SUBCHAPTER A. GENERAL PROVISIONS
	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)  "Lawful resident alien" means a person who is
	entitled to lawful residence in the United States under the federal
	Immigration and Nationality Act (8 U.S.C. Section 1101 et seq.).
	(6)  "Lawful resident verification information" means
	the documentation required by the United States Department of
	Homeland Security for completing the employment eligibility
	verification form commonly referred to as the I-9. Documentation
	that satisfies the requirements of the Form I-9 at the time of
	employment is lawful resident verification information.
	(7)  "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.
	(8)  "Licensing authority" means a department,
	commission, board, office, or other agency of the state or a
	political subdivision of the state that issues or renews a license.
	(9)  "Person not lawfully present" means a person who
	at the time of employment is neither 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.) nor 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.  LICENSING AUTHORITIES SUBJECT TO CHAPTER. All
	licensing authorities are subject to this chapter.
	Sec. 53.004.  RULES. The commission shall adopt rules for
	the administration of this chapter.
	SUBCHAPTER B. LICENSE SUSPENSION FOR KNOWING EMPLOYMENT OF PERSON
	NOT LAWFULLY PRESENT
	Sec. 53.051.  PROHIBITION AGAINST KNOWING EMPLOYMENT OF
	PERSON NOT LAWFULLY PRESENT; LICENSE SUSPENSION AUTHORIZED. (a) An
	employer may not knowingly employ a person not lawfully present.
	(b)  An employer who violates Subsection (a) is subject to
	the suspension of each license held by the employer as provided by
	this chapter.
	Sec. 53.052.  EXCEPTIONS. (a) An employer has not violated
	Section 53.051(a) if:
	(1)  the employer, at least l4 calendar days after the
	commencement of the employee's employment, requested from the
	employee and received and documented in the employee's employment
	record lawful resident verification information consistent with
	employer requirements under the federal Immigration Reform and
	Control Act of 1986 (Pub. L. No. 99-603); and
	(2)  the lawful resident verification information
	provided by the employee later was determined to be false.
	(b)  An employer has not violated Section 53.051(a) if the
	employer verified the immigrant status of the person at least 14
	calendar days after the commencement of the employee's employment
	through an electronic federal employment authorization program
	operated by the United States Department of Homeland Security to
	verify information of newly hired employees.
	SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
	Sec. 53.101.  FILING COMPLAINT. (a) A person who has reason
	to believe that an employer has violated Section 53.051(a) may file
	a complaint with the commission in accordance with this subchapter.
	(b)  A complaint must:
	(1)  be in writing on a form prescribed by the
	commission; and
	(2)  be verified by the person making the complaint.
	(c)  A person may file a complaint under this section:
	(1)  in person at an office of the commission; or
	(2)  by mailing the complaint to an address designated
	by the commission.
	Sec. 53.102.  INVESTIGATION AND PRELIMINARY DISMISSAL ORDER
	OR REFERRAL ORDER. (a) On receipt of a complaint, an examiner
	employed by the commission shall investigate the complaint in an
	attempt to:
	(1)  verify information regarding the immigration
	status of the relevant employee or employees of the employer
	alleged to have violated Section 53.051(a); and
	(2)  determine whether a hearing should be conducted.
	(b)  During the investigation, the employer alleged to have
	violated Section 53.051(a) shall specify all licenses held by the
	employer.
	(c)  If the examiner determines that there is no substantial
	evidence that the employer violated Section 53.051(a), the examiner
	shall issue a preliminary dismissal order dismissing the complaint.
	(d)  If the examiner determines that there is substantial
	evidence that the employer violated Section 53.051(a), the examiner
	shall refer the complaint to a hearing tribunal established under
	Section 53.103.
	(e)  The examiner shall mail notice of the preliminary
	dismissal order or referral order to each party at that party's last
	known address, as reflected by commission records.
	Sec. 53.103.  ESTABLISHMENT OF HEARING TRIBUNALS. The
	commission shall establish one or more impartial hearing tribunals
	to hear and decide complaints under this chapter.
	Sec. 53.104.  REQUEST FOR HEARING ON PRELIMINARY DISMISSAL
	ORDER. (a) A party may request a hearing before a hearing tribunal
	to appeal a preliminary dismissal order made under Section
	53.102(c).
	(b)  The request for the hearing must be made in writing not
	later than the 21st day after the date the examiner mails the notice
	of the preliminary dismissal order.
	Sec. 53.105.  PRELIMINARY DISMISSAL ORDER FINAL IF HEARING
	NOT REQUESTED. If neither party requests a hearing to appeal a
	preliminary dismissal order made under Section 53.102(c) within the
	period prescribed by Section 53.104, the order becomes the final
	order of the commission for all purposes, and neither party is
	entitled to judicial review of the order under this subchapter.
	Sec. 53.106.  NOTICE OF AND TIME FOR HEARING.  (a)  A notice
	regarding a hearing conducted under this subchapter must be mailed
	by the hearing tribunal not later than the 21st day after the date
	the referral order or request for the hearing is received by the
	commission.
	(b)  As soon as practicable, but not later than the 45th day
	after the date a notice is mailed under Subsection (a), the tribunal
	shall conduct the hearing.
	Sec. 53.107.  HEARING PROCEDURES. (a) A hearing conducted
	under this subchapter is subject to the rules and hearings
	procedures used by the commission in the determination of a claim
	for unemployment compensation benefits.
	(b)  The hearing is not subject to Chapter 2001, Government
	Code.
	Sec. 53.108.  ORDER AFTER HEARING. (a) After a hearing, if
	the hearing tribunal finds by clear and convincing evidence that
	the employer has violated Section 53.051(a), the hearing tribunal
	shall:
	(1)  for a first violation, enter a written order:
	(A)  requiring the employer to:
	(i)  terminate the employment of each
	employee who is a person not legally present; and
	(ii)  file with the hearing tribunal, within
	30 business days after the date the order is entered, a sworn
	affidavit stating that the employer has terminated the employment
	of each of those employees; and
	(B)  notifying the employer that failure to file
	the affidavit required by Paragraph (A)(ii) will result in the
	suspension of the employer's licenses as provided by Subdivision
	(2); or
	(2)  for a second or subsequent violation, or on a
	finding that an employer has failed to file an affidavit required by
	Subdivision (1)(A)(ii), enter a written order suspending for a
	period of one year any license held by the employer.
	(b)  After a hearing, if the hearing tribunal does not find
	by clear and convincing evidence that the employer has violated
	Section 53.051(a), the hearing tribunal shall enter a written order
	dismissing the complaint.
	Sec. 53.109.  NOTICE TO PARTIES AND FINALITY OF HEARING
	TRIBUNAL ORDER. (a) The hearing tribunal shall mail to each party to
	the hearing notice of the tribunal's decision. The notice shall be
	mailed to a party's last known address, as reflected by commission
	records.
	(b)  The order of the hearing tribunal becomes final on the
	14th day after the date the order is mailed unless a further appeal
	to the commission is initiated as provided by this subchapter.
	Sec. 53.110.  REMOVAL OR TRANSFER OF COMPLAINT PENDING
	BEFORE HEARING TRIBUNAL. (a) The commission by order may remove to
	itself or transfer to another hearing tribunal the proceedings on a
	complaint before a hearing tribunal.
	(b)  The commission promptly shall mail to the parties to the
	affected hearing notice of the order under Subsection (a).
	(c)  A quorum of the commission shall hear a proceeding
	removed to the commission under Subsection (a).
	Sec. 53.111.  COMMISSION REVIEW OF HEARING TRIBUNAL ORDER.
	The commission may:
	(1)  on its own motion:
	(A)  affirm, modify, or set aside an order issued
	under Section 53.108 on the basis of the evidence previously
	submitted in the case; or
	(B)  direct the taking of additional evidence; or
	(2)  permit any of the parties affected by the order to
	initiate an appeal before the commission.
	Sec. 53.112.  NOTICE OF COMMISSION ACTION TO PARTIES. (a)
	The commission shall mail to each party to an appeal under Section
	53.111 notice of:
	(1)  the commission's decision; and
	(2)  the parties' right to judicial review of the order.
	(b)  The notice shall be mailed to a party's last known
	address, as reflected by commission records.
	Sec. 53.113.  FINALITY OF COMMISSION ORDER.  An order of the
	commission becomes final on the 14th day after the date the order is
	mailed unless before that date:
	(1)  the commission by order reopens the appeal; or
	(2)  a party to the appeal files a written motion for
	rehearing.
	Sec. 53.114.  JUDICIAL REVIEW. (a) A party who has exhausted
	the party's administrative remedies under this chapter, other than
	a motion for rehearing, may bring a suit to appeal the order.
	(b)  The suit must be filed not later than the 30th day after
	the date the final order is mailed to the party.
	(c)  The commission and any other party to the proceeding
	before the commission must be made defendants in the suit.
	(d)  The suit must be brought in the county of residence of
	the party seeking judicial review. If the party is not a resident
	of this state, the suit must be brought in the county in this state
	in which the employer has its principal place of business.
	(e)  An appeal under this subchapter is by trial de novo with
	the substantial evidence rule being the standard of review in the
	manner as applied to an appeal from a final decision under Subtitle
	A, Title 4.
	Sec. 53.115.  NOTICE TO LICENSING AUTHORITY OF FINAL ORDER
	SUSPENDING LICENSE. The commission shall promptly mail to the
	appropriate licensing authority a final order suspending a license
	entered under this chapter.
	SUBCHAPTER D. ACTION BY LICENSING AUTHORITIES
	Sec. 53.151.  ACTION BY LICENSING AUTHORITY.  (a)  On receipt
	from the commission of a final order suspending a 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; and
	(3)  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 deposit 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 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.
	(h)  An order issued under this chapter to suspend a license
	of a person applies to each license issued by the licensing
	authority subject to the order for which the person is eligible.
	The licensing authority may not issue or renew any other license for
	the person during the suspension period.
	Sec. 53.152.  FEE BY LICENSING AUTHORITY.  A licensing
	authority may charge a fee to a person who is the subject of an order
	suspending a license in an amount sufficient to recover the
	administrative costs incurred by the authority under this chapter.
	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 October 1,
	2015.
	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.  Chapter 53, Labor Code, as added by this Act,
	applies only to a violation that occurs on or after the effective
	date of this Act.
	SECTION 10.  This Act takes effect September 1, 2015.