TX SB2650

Requires all Texas employers (except governmental entities and sole proprietorships) to register with and use the federal E-verify program to verify employment eligibility of all new employees within three business days of hire, with verification records maintained for at least three years

Prohibits state agencies from awarding contracts to contractors or subcontractors who are not registered with and participating in E-verify; contracts must terminate if compliance lapses, with matters referred to the comptroller

Authorizes the comptroller to bar contractors from state contracts for one year (with possible extensions) for E-verify violations, including knowingly hiring non-compliant subcontractors

Establishes tiered penalties for employers whose E-verify non-compliance results in employing unauthorized workers: 30-day license suspension for 1-10 such employees, 60-day suspension for 11-50, and permanent revocation for 51 or more

Requires political subdivisions (counties, municipalities, school districts, special districts) to use E-verify for new hires, with employees responsible for verification subject to immediate termination for non-compliance; requirements take effect January 1, 2027