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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to requiring state contractors to participate in the  | 
      
      
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        federal electronic verification of employment authorization  | 
      
      
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        program, or E-verify. | 
      
      
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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 | 
      
      
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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, and 2264.103 to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 2264.1011.  DEFINITIONS.  In this subchapter: | 
      
      
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                     (1)  "E-verify program" has the meaning assigned by  | 
      
      
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        Section 673.001. | 
      
      
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                     (2)  "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 contractor may be  | 
      
      
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        barred from participating in state contracts." | 
      
      
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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  | 
      
      
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        that a contractor has ceased participation in the E-verify program  | 
      
      
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        during the term of the contract, the state agency shall refer the  | 
      
      
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        matter to the comptroller for action. | 
      
      
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               (d)  Each state agency shall develop procedures for the  | 
      
      
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        administration of this section. | 
      
      
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               Sec. 2264.103.  BARRING FROM STATE CONTRACTS.  (a) Using  | 
      
      
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        procedures prescribed under Section 2155.077, the comptroller   | 
      
      
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        shall bar a contractor from participating in state contracts if the  | 
      
      
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        comptroller determines that the contractor: | 
      
      
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                     (1)  was awarded a contract in violation of Section  | 
      
      
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        2264.102; or | 
      
      
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                     (2)  has ceased participation in the E-verify program  | 
      
      
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        during the term of the contract. | 
      
      
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               (b)  Debarment under this section is for a period of five  | 
      
      
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        years. | 
      
      
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               (c)  A contractor who registers with and participates in the  | 
      
      
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        E-verify program as provided by Section 2264.102 may not be barred  | 
      
      
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        under this section if, as a result of receiving inaccurate  | 
      
      
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        verification information from the E-verify program, the contractor  | 
      
      
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        hires or employs a person in violation of 8 U.S.C. Section 1324a. | 
      
      
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               SECTION 5.  Each state agency subject to Subchapter C,  | 
      
      
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        Chapter 2264, Government Code, as amended by this Act, shall  | 
      
      
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        develop the procedures required under Section 2264.102(d),  | 
      
      
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        Government Code, as added by this Act, not later than October 1,  | 
      
      
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        2017. | 
      
      
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               SECTION 6.  Sections 2264.1011, 2264.102, and 2264.103,  | 
      
      
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        Government Code, as added by this Act, apply only in relation to a  | 
      
      
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        contract for which the request for bids or proposals or other  | 
      
      
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        applicable expression of interest is made public on or after the  | 
      
      
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        effective date of this Act. | 
      
      
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               SECTION 7.  This Act takes effect September 1, 2017. |