HB 169 — Participation of political subdivisions

90R1538 RDS-D By: Olcott H.B. No. 169 relating to participation of political subdivisions and contractors and subcontractors of political subdivisions in the federal electronic verification of employment authorization program, or E-verify.

SECTION 1. Chapter 180, Local Government Code, is amended by adding Section 180.015 to read as follows: Sec. 180.015. VERIFICATION OF EMPLOYEE INFORMATION BY POLITICAL SUBDIVISIONS. (a) In this section: (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. (b) A political subdivision shall register and participate in the E-verify program to verify information of all new employees. (c) A political subdivision employee who is responsible for verifying information of new employees of the political subdivision as required by Subsection (b) is subject to immediate termination of employment if the employee fails to comply with that subsection.

SECTION 2. Subchapter Z, Chapter 271, Local Government Code, is amended by adding Section 271.909 to read as follows: Sec. 271.909. VERIFICATION OF EMPLOYEE INFORMATION BY CONTRACTORS. (a) In this section: (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. (b) A political subdivision may not award a contract for goods or services to a contractor unless the contractor and any subcontractor of the contractor register with and participate in the E-verify program to verify employee information. The contractor and subcontractor must continue to participate in the E-verify program during the term of the contract. (c) Except as provided by Subsection (d), if a political subdivision determines that a contractor was ineligible to have a contract awarded under Subsection (b), that a contractor has ceased participation in the E-verify program during the term of the contract, or that a subcontractor of the contractor is not registered with or is not participating in the E-verify program, the political subdivision shall terminate the contract. (d) Notwithstanding Subsection (b) or (c), a contractor or subcontractor 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.

SECTION 3. The change in law made by Section 271.909, Local Government Code, as added by this Act, applies only to a contract entered into on or after the effective date of this Act.

SECTION 4. This Act takes effect September 1, 2027.