Employees, Employers - As enacted, generally requires, beginning July 1, 2026, all state and local governmental employers to verify the work authorization status of each prospective employee through the federal E-Verify , the official text

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                         $tate of ijtennessee

                           PUBLIC CHAPTER NO. 772

                                                HOUSE BILL NO. 1705

Representatives Rudd, Mr. Speaker Sexton, Faison, Zachary, Lamberth, Marsh, Garrett,
Cochran, Bulso, Lafferty, White, Howell, Gary Hicks, Todd, Vaughan, Farmer, Moody,
Powers, Kumar, Grills, Capley, Davis, Scarbrough, Russell, Littleton, Hawk, Hale,
Carringer, Reeves, Doggett, Leatherwood, Fritts, Darby, McCalmon, Greg Martin, Moon,
Alexander, Boyd, Maberry, Sherrell, Renea Jones, Slater, Tim Hicks, Crawford, Wright,
Lankford, Eldridge, Rudder, Helton-Haynes, Brock Martin, Bricken, Butler, Warner,
Atchley, Stinnett, Keisling, Raper, Stevens, Hill, Reneau, Barrett, Gant, Haston, Terry,
Williams, Reedy

                                      Substituted for: Senate Bill No. 1922

               By Senators Briggs, Bowling, Hensley, Rose, Stevens, Taylor, White

          AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8;
Title 12 and Title 50, relative to employment.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Title 50, Chapter 1, Part 1, is amended by
adding the following as a new section:

                    (a) As used in this section:

                              (1) "Employee" means a person, whether appointed, under contract, or
                    hired at-will or on an hourly basis, where an employee-employer relationship is
                    established, who provides services for an employer for which compensation is
                    paid regardless of whether such person renders less than a full day of service
                    per working day or less than a full week of service per working week;

                              (2) "Employer" means this state and any branch, unit, or political
                    subdivision thereof, including all boards, local education agencies (LEAs), as
                    defined in § 49-1-103, commissions, agencies, institutions, authorities, counties,
                    municipalities, metropolitan governments, and other bodies politic and corporate
                    of this state, created by or in accordance with state law or rule; and

                              (3) "E-Verify program" means the electronic verification system operated
                    by the United States department of homeland security, or its successor program,
                    as authorized by the Illegal Immigration Reform and Immigrant Responsibility Act
                    of 1996, Pub. L. No. 104-208, and the federal Basic Pilot Program Extension and
                    Expansion Act of 2003, Pub. L. No. 108-156.

                    (b)

                              (1) Except as provided in subdivision (b)(2), an employer shall not:

                                        (A) Appoint or hire a prospective employee on or after July 1,
                              2026, without verifying the work authorization status of such prospective
                              employee by using the E-Verify program; or

                                        (8) Adopt an ordinance, resolution, regulation, rule, policy, or
                              guideline contrary to the requirements of this section.

                              (2) An employer who currently uses a third-party vendor for Form 1-9
                    verification for prospective employees may continue to use such vendor until
                    January 1, 2027, at which time the employer must begin using the E-Verify
                    program.
HB1705

                    (c) An employer shall maintain documentation of the E-Verify program inquiry
          results for each verified employee during the duration of employment showing that the
          employee is authorized to be employed by the employer.

                    (d)
                              (1) The attorney general and reporter may investigate each credible

                    allegation or complaint that a local government or LEA has violated this section.
                              (2) If the attorney general and reporter concludes that:
                                        (A) A local government has violated this section, then the attorney
                              general and reporter may enforce compliance with this section by taking
                              action in accordance with § 4-1-429 to withhold all funds of this state
                              allocated to the local government via grant, contract, or statute, including,
                              but not limited to, state-shared taxes; or
                                        (8) An LEA has violated this section, then the attorney general
                              may enforce compliance with this section by taking action in accordance
                             with subdivision (d)(2)(A) against the local government that approves the
                              budget of the LEA.
                              (3) As used in this subsection (d), "local government" means a county,

                    including a county with a metropolitan or charter form of government, an
                    incorporated city or town, and each agency, department, or other subdivision of
                    thereof.
          SECTION 2. Tennessee Code Annotated, Section 4-1-429(f)(2), is amended by deleting
the subdivision and substituting:
                    (2) "Local government action" means:

                              (A) An ordinance, regulation, or order adopted or promulgated by the
                    chief executive officer or governing body of a local government or a regulation,
                    rule, written policy, or written guideline adopted by any agency, department, or
                    other subdivision of the local government; and

                              (8) An alleged failure to comply with SECTION 1, or another duty or
                    requirement to comply with state law relating to immigration enforcement or
                    persons unlawfully present in this state.
          SECTION 3. This act takes effect July 1, 2026, the public welfare requiring it.

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         HOUSE BILL NO. 1705

PASSED:  April 6, 2026

                                          CAMEReNrSEXTON, SPEAKER
                                          HOUSE OF REPRESENTATIVES

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                                                SPEAKER OF THE SENATE

APPROVED this _;]f St day of /\p,.-,·\  2026

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BILL LEE, GOVERNOR