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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring state contractors and grant recipients to |
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participate in the federal electronic verification of work |
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authorization program, or E-verify; adding a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Chapter 2264, Government Code, is |
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amended to read as follows: |
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CHAPTER 2264. CERTAIN RESTRICTIONS ON [USE OF CERTAIN] PUBLIC |
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SUBSIDIES AND STATE CONTRACTS AND GRANTS |
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SECTION 2. Section 2264.101, Government Code, is |
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transferred to Subchapter B, Chapter 2264, Government Code, |
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redesignated as Section 2264.054, Government Code, and amended to |
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read as follows: |
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Sec. 2264.054 [2264.101]. RECOVERY. (a) A public |
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agency, local taxing jurisdiction, or economic development |
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corporation, or the attorney general on behalf of the state or a |
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state agency, may bring a civil action to recover any amounts owed |
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to the public agency, state or local taxing jurisdiction, or |
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economic development corporation under this subchapter [chapter]. |
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(b) The public agency, local taxing jurisdiction, economic |
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development corporation, or attorney general, as applicable, shall |
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recover court costs and reasonable attorney's fees incurred in an |
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action brought under Subsection (a). |
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(c) A business is not liable for a violation of this |
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subchapter [chapter] by a subsidiary, affiliate, or franchisee of |
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the business, or by a person with whom the business contracts. |
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SECTION 3. The heading to Subchapter C, Chapter 2264, |
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Government Code, is amended to read as follows: |
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SUBCHAPTER C. E-VERIFY PROGRAM [ENFORCEMENT] |
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SECTION 4. Subchapter C, Chapter 2264, Government Code, is |
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amended by adding Sections 2264.1011, 2264.102, 2264.103, and |
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2264.104 to read as follows: |
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Sec. 2264.1011. DEFINITIONS. In this subchapter: |
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(1) "E-verify program" means the electronic |
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verification of work authorization program of the federal Illegal |
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Immigration Reform and Immigrant Responsibility Act of 1996 (Pub. |
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L. No. 104-208, reprinted in note, 8 U.S.C. Section 1324a), |
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operated by the United States Department of Homeland Security, or a |
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successor work authorization program designated by the United |
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States Department of Homeland Security or other federal agency |
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authorized to verify the work authorization status of newly hired |
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employees pursuant to the federal Immigration Reform and Control |
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Act of 1986 (8 U.S.C. Section 1101 et seq.). |
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(2) "Grant" has the meaning assigned by Section |
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441.010. |
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(3) "State agency" has the meaning assigned by Section |
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2103.001. |
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Sec. 2264.102. VERIFICATION BY CONTRACTORS. (a) A state |
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agency may not award a contract for goods or services within this |
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state to a contractor unless the contractor registers with and |
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participates in the E-verify program to verify employee |
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information. The contractor must continue to participate in the |
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program during the term of the contract. |
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(b) Each contract with a state agency must include the |
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following statement: |
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"______________ (name of contractor) certifies that |
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__________ (name of contractor) is not ineligible to receive this |
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contract under Subchapter C, Chapter 2264, Government Code, and |
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acknowledges that if this certification is inaccurate or becomes |
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inaccurate during the term of the contract, the contract may be |
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terminated without payment and a civil penalty may be imposed." |
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(c) If a state agency determines that a contractor was |
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ineligible to have the contract awarded under Subsection (a) or has |
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ceased participation in the E-verify program during the term of the |
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contract, the state agency shall refer the matter to the attorney |
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general for action and shall notify the contractor in writing that |
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the contractor must register with and participate in the E-verify |
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program before the 31st day after the date the contractor is |
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notified. |
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(d) The state agency shall terminate the contract without |
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penalty or further obligation to the contractor on the 31st day |
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after the date the contractor is notified under Subsection (c) if, |
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before that date, the contractor has not provided evidence that the |
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contractor has registered with and is participating in the E-verify |
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program. |
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(e) Each state agency shall develop procedures for the |
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administration of this section. |
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Sec. 2264.103. VERIFICATION BY GRANT RECIPIENTS. (a) A |
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state agency may not award a grant unless the grant recipient |
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registers with and participates in the E-verify program to verify |
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employee information. The grant recipient must continue to |
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participate in the program during the funding period of the grant. |
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(b) Each grant contract or agreement with a state agency |
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must include the following statement: |
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"______________ (name of grant recipient) certifies that |
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__________ (name of grant recipient) is not ineligible to receive |
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this grant under Subchapter C, Chapter 2264, Government Code, and |
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acknowledges that if this certification is inaccurate or becomes |
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inaccurate during the funding period of the grant, the grant may be |
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terminated without further payment and a civil penalty may be |
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imposed." |
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(c) If a state agency determines that a grant recipient was |
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ineligible to have the grant awarded under Subsection (a) or has |
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ceased participation in the E-verify program during the funding |
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period of the grant, the state agency shall refer the matter to the |
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attorney general for action and shall notify the grant recipient in |
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writing that the grant recipient must register with and participate |
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in the E-verify program before the 31st day after the date the grant |
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recipient is notified. |
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(d) The state agency shall terminate the grant without |
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further obligation to the grant recipient on the 31st day after the |
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date the grant recipient is notified under Subsection (c) if, |
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before that date, the grant recipient has not provided evidence |
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that the grant recipient has registered with and is participating |
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in the E-verify program. |
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(e) Each state agency shall develop procedures for the |
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administration of this section. |
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Sec. 2264.104. CIVIL PENALTY. (a) The attorney general may |
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institute an action in district court to recover a civil penalty |
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against a: |
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(1) contractor who is awarded a contract in violation |
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of Section 2264.102 or has ceased participation in the E-verify |
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program during the term of the contract; or |
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(2) grant recipient who is awarded a grant in |
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violation of Section 2264.103 or has ceased participation in the |
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E-verify program during the funding period of the grant. |
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(b) A civil penalty imposed under this section against a |
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contractor may not exceed $500 or one percent of the contract price, |
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whichever is greater, for each violation. A civil penalty imposed |
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under this section against a grant recipient may not exceed $500 or |
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one percent of the grant amount or value, whichever is greater, for |
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each violation. |
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(c) Each day a contractor or grant recipient holds the |
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contract or grant, as applicable, while in violation of this |
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subchapter constitutes a separate violation for purposes of |
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imposing the penalty. |
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(d) A civil penalty recovered in an action brought by the |
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attorney general shall be deposited in the state treasury. |
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SECTION 5. Sections 2264.1011, 2264.102, 2264.103, and |
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2264.104, Government Code, as added by this Act, apply only in |
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relation to a: |
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(1) contract for which the request for bids or |
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proposals or other applicable expressions of interest is made |
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public on or after the effective date of this Act; and |
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(2) grant for which the notice of funds availability |
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or of funding opportunity is made public on or after the effective |
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date of this Act. |
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SECTION 6. This Act takes effect September 1, 2011. |