S.B. No. 2650 introduces new requirements for participation in the E-Verify program, mandating that state agencies ensure contractors and subcontractors register with and participate in this federal employment eligibility verification system as a condition for receiving state contracts. The bill amends Chapter 2264 of the Government Code to require contracts to include a certification statement regarding the contractor's eligibility and establishes penalties for non-compliance, which may include contract termination and barring from future state contracts. Additionally, it creates new sections in the Labor Code and Local Government Code that require employers and political subdivisions to verify employee information through E-Verify within three business days of hiring, maintaining records for at least three years, with exceptions for years when federal funding for E-Verify is unavailable.

The bill also mandates that state agencies develop necessary procedures by December 31, 2026, and specifies that the new sections related to E-Verify will only apply to contracts entered into on or after January 1, 2027. It requires state agencies to adopt rules and prescribe forms related to Section 53.005 of the Labor Code as soon as practicable after the bill's effective date. The bill's effective date is contingent upon a two-thirds vote from both houses; if not achieved, it will take effect on September 1, 2025. Overall, S.B. No. 2650 aims to streamline processes and establish clear guidelines for state agencies regarding contracts and labor regulations.

Statutes affected:
Introduced: The heading to Chapter , Government Code 1.01, The heading to Subchapter C, Chapter , Government Code 1.03, Subchapter C, Chapter , Government Code 1.04, Subtitle B, Title , Labor Code 1.05, Subtitle C, Title , Local Government Code 1.06 (The heading to Subchapter C, Chapter , Government Code 1, Subtitle B, Title , Labor Code 1, Subtitle C, Title , Local Government Code 1, The heading to Chapter , Government Code 1, Subchapter C, Chapter , Government Code 1)