H.B. No. 2744 mandates that state contractors, political subdivisions, and private employers participate in the federal E-Verify program to verify employment authorization. The bill amends Chapter 2264 of the Government Code, changing its heading to reflect "Certain Restrictions on Public Subsidies and State Contracts." It establishes that state agencies cannot award contracts unless the contractor and any subcontractors are registered with and actively participating in the E-Verify program. Additionally, contracts must include a certification statement regarding eligibility under this subchapter, and violations can lead to civil penalties, including barring contractors from future state contracts.

The bill also introduces new provisions in the Labor Code and Local Government Code, specifically Chapter 53 and Chapter 181, which prohibit employers and political subdivisions from knowingly hiring individuals not lawfully present in the U.S. Employers who violate this requirement face civil penalties of $10,000 for each violation. The attorney general is empowered to enforce these provisions and recover penalties. The act is set to take effect on September 1, 2025, with specific implementation timelines for state agencies and the new chapters beginning on January 1, 2026.

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