The bill, H.B. No. 3210, mandates that state contractors, political subdivisions, and private employers in Texas participate in the federal E-Verify program to verify employment authorization for their employees. 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 require state agencies to ensure contractors and subcontractors are registered with and actively participating in the E-Verify program throughout the duration of their contracts. Additionally, it establishes penalties for contractors who fail to comply, including potential barring from future state contracts.

Furthermore, the bill adds provisions to the Labor Code and Local Government Code, requiring employers and political subdivisions to verify the employment status of new hires through the E-Verify program. It specifies that employers cannot misclassify employees as independent contractors to evade these requirements. The bill also outlines enforcement mechanisms, including the development of procedures by state agencies and the imposition of immediate termination for employees responsible for verification who fail to comply. The effective date of the bill is set for September 1, 2025, with certain provisions applicable starting January 1, 2027.

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