Certain requirements for participation in the E-verify program; authorizing penalties

Texas Senate Bill 2650 (SB2650), introduced in 2025 by Senator Bob Hall, aimed to mandate the use of the federal E-Verify program by state contractors, subcontractors, and certain employers to confirm the employment eligibility of new hires. The bill proposed that state agencies could only award contracts to businesses enrolled in E-Verify and actively using it throughout the contract duration. Non-compliance could result in penalties such as a minimum one-year ban from state contracts and potential revocation of business licenses for employers knowingly hiring unauthorized workers. Additionally, political subdivisions like counties and municipalities would be required to register with E-Verify and maintain employment verification records. The bill was referred to the Senate Business & Commerce Committee on April 3, 2025, but did not progress further and died in committee.

Supporters of SB2650 argued that mandating E-Verify would strengthen the integrity of the workforce by ensuring that all employees are legally authorized to work in the United States. They believed this measure would deter illegal employment practices, promote fair competition among businesses, and protect job opportunities for legal workers. Proponents also suggested that the bill would enhance compliance with federal immigration laws and reduce the state's liability associated with unauthorized employment.

Opponents of SB2650 contended that requiring E-Verify could impose additional administrative burdens and costs on businesses, particularly small enterprises and local governments. They expressed concerns about the accuracy of the E-Verify system, citing potential errors that could mistakenly disqualify eligible workers, leading to staffing challenges and potential legal issues. Critics also argued that the bill might strain relationships with immigrant communities and could have unintended economic consequences by reducing the available labor pool in certain industries.