H.B. No. 1308 seeks to implement stricter employment practices for governmental entities, state contractors, and private employers in Texas concerning the legal status of employees. The bill mandates participation in the federal E-Verify program to verify employee information and allows for the suspension of licenses for private employers who hire individuals not lawfully present in the United States. Key amendments include renaming Chapter 2264 to "Certain Restrictions on Public Subsidies and State Contracts," defining terms related to E-Verify, and establishing penalties for non-compliance. Contractors must certify their eligibility for state contracts and may face debarment for violations related to E-Verify participation.

Additionally, the bill introduces a framework for verifying employee information and prohibits governmental entities from hiring individuals not lawfully present. It requires the comptroller to maintain a list of entities deemed ineligible for state grant funding, allowing them to respond to regain eligibility. The bill outlines the process for reporting violations and conducting investigations, with potential consequences for non-compliance, including license suspension for up to two years. Licensing authorities are mandated to act upon final orders from the attorney general regarding license suspensions, and the bill emphasizes compliance by state agencies with a timeline for implementation. Certain provisions will take effect on January 1, 2027, while the overall act will become effective on September 1, 2025.

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