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Texas requires E-Verify use for all state contractors, local governments, and private employers, establishing $5,000 penalties and license suspensions for noncompliance

Original title: Relating to employment practices of governmental entities, state contractors, and private employers in this state regarding the legal status of employees, including requiring participation in the federal electronic verification of employment authorization program, or E-verify program, and authorizing the suspension of certain licenses held by private employers for certain conduct in relation to the employment of persons not lawfully present; providing an administrative penalty.

Last action · March 11, 2025: Referred to State AffairsSponsor: A.J. Louderback

Introduced
Committee
Floor Vote
Passed
Law

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Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Proposed

State agencies, s, and private employers in Texas must register and participate in the federal to verify the work authorization of all new employees. The Texas Workforce Commission must establish a legal hiring compliance division to investigate complaints, levy a $5,000 per violation, and notify licensing agencies to suspend occupational licenses for noncompliant private employers.

Why it matters

Private employers face potential license suspension and administrative fines for noncompliance, while contractors found in violation risk state and public agencies face civil recovery actions.

Who It Would Have Affected

Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.

Directly affected

State Contractors

Must participate in E-Verify throughout the contract term and face potential contract debarment for one year or more if found in noncompliance.

Directly affected

Private Employers

Must use E-Verify for all new hires and face $5,000 administrative penalties and potential license suspension for noncompliance.

Directly affected

Political Subdivisions

Counties, municipalities, and school districts must register for E-Verify, and responsible staff face immediate termination for noncompliance.

Directly affected

Texas Workforce Commission

Must establish a new legal hiring compliance division, investigate complaints, impose penalties, and adopt implementation rules.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Who must participate in the E-Verify program under this bill?
State agencies, state contractors and their subcontractors, s (such as cities, counties, and school districts), and all private employers with one or more employees must register and participate in the for new employees.
What happens if a private employer fails to comply with E-Verify requirements?
The Texas Workforce Commission imposes a $5,000 per violation unless corrective action is taken. If the employer refuses to correct the violation, licensing agencies are notified to take action against the employer's business or professional licenses.
What is the penalty for local government employees responsible for employment verification who fail to comply?
An employee of a who is responsible for verifying information of new employees is subject to immediate termination of employment if they fail to comply with E-Verify requirements.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

This bill did not become law - Died at adjournment · in House committee.

Procedural history

3 actions
  1. Mar 11, 2025HouseCommittee
    Referred to State Affairs
  2. Mar 11, 2025HouseIntroduced
    Read first time
  3. Dec 2, 2024HouseIntroduced
    Filed

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Expansion of E-Verify Enforcement to Private Sector

The bill shifts E-Verify requirements from primarily public contracts to universal private employer mandates enforced via state licensing and workforce commission oversight.

Connected Entities

A.J. Louderback, comptroller, Texas Workforce Commission
PersonA.J. Louderback“Bill author and primary sponsor in the House”Map →
Organizationcomptroller“State official authorized to bar contractors from participating in state contrac”Map →
OrganizationTexas Workforce Commission“Commission tasked with establishing the legal hiring compliance division and enf”Map →

Sources

Open source document

capitol.texas.gov

Analysis Score

0–100
  • Significance20
    Lowered because this bill did not pass (its text scored 85)
  • Controversy80
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz65
    Current news / social attention level

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