The bill, H.B. No. 2744, mandates that state contractors, political subdivisions, and private employers participate in the federal E-Verify program to verify employment authorization. It amends Chapter 2264 of the Government Code, changing its heading to reflect "Certain Restrictions on Public Subsidies and State Contracts." The bill introduces new sections that outline the requirements for contractors to register and participate in the E-Verify program, including a stipulation that contracts with state agencies must include a certification statement regarding eligibility. Additionally, it establishes civil penalties for employers who knowingly hire individuals not lawfully present in the U.S., with penalties set at $10,000 for each violation.

The bill also creates enforcement mechanisms, allowing the attorney general to take action against employers or political subdivisions that violate these provisions. It specifies that employers must terminate the employment of individuals determined to be unlawfully present within 30 days of resolution of a violation. The new regulations will take effect on September 1, 2025, with specific provisions for state agencies to develop necessary procedures by December 31, 2025, and for the new chapters in the Labor and Local Government Codes to apply starting January 1, 2026.

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