82R509 MTB-D
 
  By: Laubenberg H.B. No. 140
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to requiring state contractors and grant recipients to
  participate in the federal electronic verification of work
  authorization program, or E-verify; adding a civil 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 AND GRANTS
         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, 2264.103, and
  2264.104 to read as follows:
         Sec. 2264.1011.  DEFINITIONS. In this subchapter:
               (1)  "E-verify program" means the electronic
  verification of work 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 work authorization program designated by the United
  States Department of Homeland Security or other federal agency
  authorized to verify the work 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)  "Grant" has the meaning assigned by Section
  441.010.
               (3)  "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 registers with and
  participates in the E-verify program to verify employee
  information. The contractor 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 contract may be
  terminated without payment and a civil penalty may be imposed."
         (c)  If a state agency determines that a contractor was
  ineligible to have the contract awarded under Subsection (a) or has
  ceased participation in the E-verify program during the term of the
  contract, the state agency shall refer the matter to the attorney
  general for action and shall notify the contractor in writing that
  the contractor must register with and participate in the E-verify
  program before the 31st day after the date the contractor is
  notified.
         (d)  The state agency shall terminate the contract without
  penalty or further obligation to the contractor on the 31st day
  after the date the contractor is notified under Subsection (c) if,
  before that date, the contractor has not provided evidence that the
  contractor has registered with and is participating in the E-verify
  program.
         (e)  Each state agency shall develop procedures for the
  administration of this section.
         Sec. 2264.103.  VERIFICATION BY GRANT RECIPIENTS. (a) A
  state agency may not award a grant unless the grant recipient
  registers with and participates in the E-verify program to verify
  employee information. The grant recipient must continue to
  participate in the program during the funding period of the grant.
         (b)  Each grant contract or agreement with a state agency
  must include the following statement:
         "______________ (name of grant recipient) certifies that
  __________ (name of grant recipient) is not ineligible to receive
  this grant under Subchapter C, Chapter 2264, Government Code, and
  acknowledges that if this certification is inaccurate or becomes
  inaccurate during the funding period of the grant, the grant may be
  terminated without further payment and a civil penalty may be
  imposed."
         (c)  If a state agency determines that a grant recipient was
  ineligible to have the grant awarded under Subsection (a) or has
  ceased participation in the E-verify program during the funding
  period of the grant, the state agency shall refer the matter to the
  attorney general for action and shall notify the grant recipient in
  writing that the grant recipient must register with and participate
  in the E-verify program before the 31st day after the date the grant
  recipient is notified.
         (d)  The state agency shall terminate the grant without
  further obligation to the grant recipient on the 31st day after the
  date the grant recipient is notified under Subsection (c) if,
  before that date, the grant recipient has not provided evidence
  that the grant recipient has registered with and is participating
  in the E-verify program.
         (e)  Each state agency shall develop procedures for the
  administration of this section.
         Sec. 2264.104.  CIVIL PENALTY. (a) The attorney general may
  institute an action in district court to recover a civil penalty
  against a:
               (1)  contractor who is awarded a contract in violation
  of Section 2264.102 or has ceased participation in the E-verify
  program during the term of the contract; or
               (2)  grant recipient who is awarded a grant in
  violation of Section 2264.103 or has ceased participation in the
  E-verify program during the funding period of the grant.
         (b)  A civil penalty imposed under this section against a
  contractor may not exceed $500 or one percent of the contract price,
  whichever is greater, for each violation. A civil penalty imposed
  under this section against a grant recipient may not exceed $500 or
  one percent of the grant amount or value, whichever is greater, for
  each violation.
         (c)  Each day a contractor or grant recipient holds the
  contract or grant, as applicable, while in violation of this
  subchapter constitutes a separate violation for purposes of
  imposing the penalty.
         (d)  A civil penalty recovered in an action brought by the
  attorney general shall be deposited in the state treasury.
         SECTION 5.  Sections 2264.1011, 2264.102, 2264.103, and
  2264.104, Government Code, as added by this Act, apply only in
  relation to a:
               (1)  contract for which the request for bids or
  proposals or other applicable expressions of interest is made
  public on or after the effective date of this Act; and
               (2)  grant for which the notice of funds availability
  or of funding opportunity is made public on or after the effective
  date of this Act.
         SECTION 6.  This Act takes effect September 1, 2011.