An amendment to S. 1348 [110th]: Comprehensive Immigration Reform Act of 2007.

For more information, see the the official record on THOMAS for S.Amdt. 1441.

Text of amendment

SA 1441. Mr. GRASSLEY (for himself, Mr. Baucus, and Mr. Obama) submitted an amendment intended to be proposed by him to the bill S. 1348, to provide for comprehensive immigration reform and for other purposes; which was ordered to lie on the table; as follows:

Strike title III and insert the following:

TITLE III--UNLAWFUL EMPLOYMENT OF ALIENS

SEC. 301. UNLAWFUL EMPLOYMENT OF ALIENS.

(a) In General.--Section 274A (8 U.S.C. 1324a) is amended to read as follows:

``SEC. 274A. UNLAWFUL EMPLOYMENT OF ALIENS.

``(a) Making Employment of Unauthorized Aliens Unlawful.--

``(1) IN GENERAL.--It is unlawful for an employer--

``(A) to hire, or to recruit or refer for a fee, an alien for employment in the United States knowing, or with reckless disregard for the fact that, the alien is an unauthorized alien with respect to such employment; or

``(B) to hire, or to recruit or refer for a fee, an individual for employment in the United States, unless such employer meets the requirements of subsections (c) and (d).

``(2) CONTINUING EMPLOYMENT.--It is unlawful for an employer, after hiring an alien for employment, to continue to employ the alien in the United States knowing, or with reckless disregard for the fact that, the alien is (or has become) an unauthorized alien with respect to such employment.

``(3) USE OF LABOR THROUGH CONTRACT.--

``(A) IN GENERAL.--An employer who uses a contract, subcontract, or exchange to obtain, or to continue to obtain, the labor of an alien in the United States knowing, or with reckless disregard for the fact that, the alien is an unauthorized alien with respect to performing such labor, shall be considered to have hired the alien in violation of paragraph (1)(A) or (2).

``(B) INFORMATION SHARING.--The Secretary shall establish procedures by which the employer may obtain confirmation from the Secretary that the alien is not an unauthorized alien with respect to performing such labor.

``(4) DEFENSE.--

``(A) IN GENERAL.--Subject to subparagraph (B), an employer that establishes that the employer has complied in good faith with the requirements of subsections (c) and (d) has established an affirmative defense that the employer has not violated paragraph (1)(A) with respect to such hiring, recruiting, or referral.

``(B) EXCEPTION.--Until the date that an employer is required to participate in the Electronic Employment Verification System under subsection (d) or is participating in such System on a voluntary basis, the employer may establish an affirmative defense under subparagraph (A) by complying with the requirements of subsection (c).

``(b) Order of Internal Review and Certification of Compliance.--

``(1) AUTHORITY TO REQUIRE CERTIFICATION.--If the Secretary has reasonable cause to believe that an employer has failed to comply with this section, the Secretary is authorized, at any time, to require that the employer certify that the employer is in compliance with this section, or has instituted a program to come into compliance.

``(2) CONTENT OF CERTIFICATION.--Not later than 60 days after the date an employer receives a request for a certification under paragraph (1) the employer shall certify under penalty of perjury that--

``(A) the employer is in compliance with the requirements of subsections (c) and (d); or

``(B) that the employer has instituted a program to come into compliance with such requirements.

``(3) EXTENSION.--The 60-day period referred to in paragraph (2), may be extended by the Secretary for good cause, at the request of the employer.

``(4) PUBLICATION.--The Secretary is authorized to publish in the Federal Register standards or methods for certification under paragraph (1) and for specific recordkeeping practices with respect to such certification, and procedures for the audit of any records related to such certification.

``(c) Document Verification Requirements.--An employer hiring, or recruiting or referring for a fee, an individual for employment in the United States, shall verify that the individual is eligible for such employment by meeting the following requirements:

``(1) ATTESTATION BY EMPLOYER.--

``(A) REQUIREMENTS.--

``(i) IN GENERAL.--The employer shall attest, under penalty of perjury and on a form prescribed by the Secretary, that the employer has verified the identity and eligibility for employment of the individual by examining a document described in subparagraph (B).

``(ii) SIGNATURE REQUIREMENTS.--An attestation required by clause (i) may be manifested by a handwritten or electronic signature.

``(iii) STANDARDS FOR EXAMINATION.--The employer has complied with the requirement of this paragraph with respect to examination of documentation if a reasonable person would conclude that the document examined is genuine and relates to the individual whose identity and eligibility for employment in the United States is being verified. If the individual provides a document sufficient to meet the requirements of this paragraph, nothing in this paragraph shall be construed as requiring

an employer to solicit any other document or as requiring the individual to produce any other document.

``(B) IDENTIFICATION DOCUMENTS.--A document described in this subparagraph is--

``(i) in the case of an individual who is a national of the United States--

``(I) a United States passport, or passport card issued pursuant to the Secretary of State's authority under the first section of the Act of July 3, 1926 (44 Stat. 887, Chapter 772; 22 U.S.C. 211a); or

``(II) a driver's license or identity card issued by a State, the Commonwealth of the Northern Mariana Islands, or an outlying possession of the United States that--

``(aa) contains a photograph of the individual and other identifying information, including the individual's name, date of birth, gender, and address; and

``(bb) contains security features to make the license or card resistant to tampering, counterfeiting, and fraudulent use;

``(ii) in the case of an alien lawfully admitted for permanent residence in the United States, a permanent resident card, as specified by the Secretary that meets the requirements of items (aa) and (bb) of clause (i)(II);

``(iii) in the case of an alien who is authorized to be employed in the United States, an employment authorization card, as specified by the Secretary that meets the requirements of such items (aa) and (bb); or

``(iv) in the case of an individual who is unable to obtain a document described in clause (i), (ii), or (iii), a document designated by the Secretary that meets the requirements of such items (aa) and (bb).

``(C) AUTHORITY TO PROHIBIT USE OF CERTAIN DOCUMENTS.--

``(i) AUTHORITY.--If the Secretary finds that a document or class of documents described in subparagraph (B) is not reliable to establish identity or is being used fraudulently to an unacceptable degree, the Secretary shall prohibit, or impose conditions, on the use of such document or class of documents for purposes of this subsection.

``(ii) REQUIREMENT FOR PUBLICATION.--The Secretary shall publish notice of any findings under clause (i) in the Federal Register.

``(2) ATTESTATION OF EMPLOYEE.--

``(A) REQUIREMENTS.--

``(i) IN GENERAL.--The individual shall attest, under penalty of perjury on the form described in paragraph (1)(A)(i), that the individual is a national of the United States, an alien lawfully admitted for permanent residence, or an alien who is authorized to be hired, or to be recruited or referred for a fee, in the United States.

``(ii) SIGNATURE FOR EXAMINATION.--An attestation required by clause (i) may be manifested by a handwritten or electronic signature.

``(B) PENALTIES.--An individual who falsely represents that the individual is eligible for employment in the United States in an attestation required by subparagraph (A) shall, for each such violation, be subject to a fine of not more than $5,000, a term of imprisonment not to exceed 3 years, or both.

``(3) RETENTION OF ATTESTATION.--The employer shall retain a paper, microfiche, microfilm, or electronic version of the attestations made under paragraphs (1) and (2) and make such attestations available for inspection by an officer of the Department of Homeland Security, any other person designated by the Secretary, the Special Counsel for Immigration-Related Unfair Employment Practices of the Department of Justice, or the Secretary of Labor during a period beginning on the date of the

hiring, or recruiting or referring for a fee, of the individual and ending--

``(A) in the case of the recruiting or referral for a fee (without hiring) of an individual, 5 years after the date of the recruiting or referral; or

``(B) in the case of the hiring of an individual the later of--

``(i) 5 years after the date of such hiring;

``(ii) 1 year after the date the individual's employment is terminated; or

``(iii) in the case of an employer or class of employers, a period that is less than the applicable period described in clause (i) or (ii) if the Secretary reduces such period for such employer or class of employers.

``(4) DOCUMENT RETENTION AND RECORDKEEPING REQUIREMENTS.--

``(A) RETENTION OF DOCUMENTS.--Notwithstanding any other provision of law, an employer shall retain, for the applicable period described in paragraph (3), the following documents:

``(i) IN GENERAL.--The employer shall copy all documents presented by an individual described in paragraph (1)(B) and shall retain paper, microfiche, microfilm, or electronic copies of such documents. Such copies shall be designated as copied documents.

``(ii) OTHER DOCUMENTS.--The employer shall maintain records of any action taken and copies of any correspondence written or received with respect to the verification of an individual's identity or eligibility for employment in the United States.

``(B) USE OF RETAINED DOCUMENTS.--An employer shall use copies retained under clause (i) or (ii) of subparagraph (A) only for the purposes of complying with the requirements of this subsection, except as otherwise permitted under law.

``(5) PENALTIES.--An employer that fails to comply with the recordkeeping requirements of this subsection shall be subject to the penalties described in subsection (e)(4)(B).

``(6) NO AUTHORIZATION OF NATIONAL IDENTIFICATION CARDS.--Nothing in this section may be construed to authorize, directly or indirectly, the issuance, use, or establishment of a national identification card.

``(d) Electronic Employment Verification System.--

``(1) REQUIREMENT FOR SYSTEM.--The Secretary, in cooperation with the Commissioner of Social Security, shall implement an Electronic Employment Verification System (referred to in this subsection as the `System') to determine whether--

``(A) the identifying information submitted by an individual is consistent with the information maintained by the Secretary, the Secretary of State, the Commissioner of Social Security, or the official of a State responsible for issuing drivers' licenses and identity cards; and

``(B) such individual is eligible for employment in the United States.

``(2) REQUIREMENT FOR PARTICIPATION.--

``(A) NEW EMPLOYEES.--The Secretary shall require all employers in the United States to participate in the System, with respect to all employees hired by the employer on or after the date that is not later than 18 months after the date of enactment of this section.

``(B) OTHER EMPLOYEES.--Not later than 3 years after such date of enactment, the Secretary shall require all employers to verify through the System the identity and employment eligibility of any individual who--

``(i) the Secretary has reason to believe is unlawfully employed based on the information received under section 6103(l)(21) of the Internal Revenue Code of 1986; and

``(ii) has not been previously verified through the System.

``(3) OTHER PARTICIPATION IN SYSTEM.--Notwithstanding paragraph (2), the Secretary has the authority--

``(A) to permit any employer that is not required to participate in the System under paragraph (2) to participate in the System on a voluntary basis; and

``(B) to require any employer or class of employers to participate on a priority basis in the System with respect to individuals employed as of, or hired after, the date of enactment of this section--

``(i) if the Secretary designates such employer or class of employers as a critical employer based on an assessment of homeland security or national security needs; or

``(ii) if the Secretary has reasonable cause to believe that the employer has engaged in material violations of paragraph (1), (2), or (3) of subsection (a).

``(4) REQUIREMENT TO NOTIFY.--The Secretary shall notify the employer or class of employers in writing regarding the requirement for participation in the System under paragraph (2) or (3)(B) not less than 60 days prior to the effective date of such requirement. Such notice shall include the training materials described in paragraph (8)(E)(iv).

``(5) REGISTRATION OF EMPLOYERS.--An employer shall register the employer's participation in the System in the manner prescribed by the Secretary prior to the date the employer is required or permitted to submit information with respect to an employee under this subsection.

``(6) ADDITIONAL GUIDANCE.--A registered employer shall be permitted to utilize any technology that is consistent with this section and with any regulation or guidance from the Secretary to streamline the procedures to facilitate compliance with--

``(A) the attestation requirement in subsection (c); and

``(B) the employment eligibility verification requirements in this subsection.

``(7) CONSEQUENCE OF FAILURE TO PARTICIPATE.--If an employer is required to participate in the System and fails to comply with the requirements of the System with respect to an employee--

``(A) such failure shall be treated as a violation of subsection (a)(1)(B); and

``(B) a rebuttable presumption is created that the employer has violated subsection (a)(1)(A), however, such presumption may not apply to a prosecution under subsection (f)(1).

``(8) DESIGN AND OPERATION OF SYSTEM.--

``(A) IN GENERAL.--The Secretary shall, through the System--

``(i) respond to each inquiry made by a registered employer through the Internet or other electronic media, or over a toll-free telephone line regarding an individual's identity and eligibility for employment in the United States; and

``(ii) maintain a record of each such inquiry and the information provided in response to such inquiry.

``(B) INITIAL INQUIRY.--

``(i) INFORMATION REQUIRED.--A registered employer shall with respect to hiring or recruiting or referring for a fee any individual for employment in the United States, obtain from the individual and record on the form described in subsection (c)(1)(A)(i)--

``(I) the individual's name and date of birth;

``(II) the individual's social security account number;

``(III) the identification number contained on the document presented by the individual pursuant to subsection (c)(1)(B); and

``(IV) in the case of an individual who does not attest that the individual is a national of the United States under subsection (c)(1)(A)(i), such alien identification or authorization number that the Secretary shall require.

``(ii) SUBMISSION TO SYSTEM.--A registered employer shall submit an inquiry through the System to seek confirmation of the individual's identity and eligibility for employment in the United States--

``(I) no earlier than the date of hire and no later than the first day of employment, or recruiting or referring for a fee, of the individual (as the case may be); or

``(II) in the case of an employee hired before such employer was required to participate in the system, at such time as the Secretary shall specify.

``(C) INITIAL RESPONSE.--Not later than 3 days after an employer submits an inquiry to the System regarding an individual, the Secretary shall provide, through the System, to the employer--

``(i) if the System is able to confirm the individual's identity and eligibility for employment in the United States, a confirmation notice, including the appropriate codes on such confirmation notice; or

``(ii) if the System is unable to confirm the individual's identity or eligibility for employment in the United States, and after a secondary manual verification has been conducted, a tentative nonconfirmation notice, including the appropriate codes on such tentative nonconfirmation notice.

``(D) CONFIRMATION OR NONCONFIRMATION.--

``(i) CONFIRMATION UPON INITIAL INQUIRY.--If an employer receives a confirmation notice under subparagraph (C)(i) for an individual, the employer shall record, on the form described in subsection (c)(1)(A)(i), the appropriate code provided in such notice.

``(ii) TENTATIVE NONCONFIRMATION.--If an employer receives a tentative nonconfirmation notice under subparagraph (C)(ii) for an individual, the employer shall inform such individual of the issuance of such notice in writing, on a form prescribed by the Secretary not later than 3 days after receiving such notice. Such individual shall acknowledge receipt of such notice in writing on the form described in subsection (c)(1)(A)(i).

``(iii) NO CONTEST.--If the individual does not contest the tentative nonconfirmation notice within 10 days of receiving notice from the individual's employer, the notice shall become final and the employer shall record on the form described in subsection (c)(1)(A)(i), the appropriate code provided through the System to indicate the individual did not contest the tentative nonconfirmation. An individual's failure to contest a tentative nonconfirmation shall not be considered an admission

of guilt with respect to any violation of this Act or any other provision of law.

``(iv) CONTEST.--If the individual contests the tentative nonconfirmation notice, the individual shall submit appropriate information to contest such notice under the procedures established in subparagraph (E)(ii) not later than 10 days after receiving the notice from the individual's employer.

``(v) EFFECTIVE PERIOD OF TENTATIVE NONCONFIRMATION NOTICE.--A tentative nonconfirmation notice shall remain in effect until such notice becomes final under clause (iii) or a final confirmation notice or final nonconfirmation notice is issued through the System.

``(vi) EFFECTIVE PERIOD OF FINAL NOTICE.--A final confirmation notice issued under this paragraph for an individual shall remain in effect--

``(I) during any continuous period of employment of such individual by such employer, unless the Secretary determines the final confirmation was the result of error or fraud; or

``(II) in the case of an alien authorized to be employed in the United States for a temporary period, during such period.

``(vii) PROHIBITION ON TERMINATION.--An employer may not terminate such employment of an individual based on a tentative nonconfirmation notice until such notice becomes final under clause (iii) or a final nonconfirmation notice is issued for the individual by the System. Nothing in this clause shall prohibit the termination of such employment for any reason other than such tentative nonconfirmation.

``(viii) RECORDING OF CONTEST RESOLUTION.--The employer shall record on the form described in subsection (c)(1)(A)(i) the appropriate code that is provided through the System to indicate a final confirmation notice or final nonconfirmation notice.

``(ix) CONSEQUENCES OF NONCONFIRMATION.--If the employer has received a final nonconfirmation regarding an individual, the employer shall immediately terminate the employment, recruitment, or referral of the individual. Such employer shall provide to the Secretary any information relating to the individual that the Secretary determines would assist the Secretary in enforcing or administering the immigration laws. If the employer continues to employ, recruit, or refer the individual after

receiving final nonconfirmation, a rebuttable presumption is created that the employer has violated subsections (a)(1)(A) and (a)(2). Such presumption may not apply to a prosecution under subsection (f)(1).

``(E) RESPONSIBILITIES OF THE SECRETARY.--

``(i) IN GENERAL.--The Secretary shall establish a reliable, secure method to provide through the System, within the time periods required by this subsection--

``(I) a determination of whether the name and alien identification or authorization number provided in an inquiry by an employer is consistent with such information maintained by the Secretary in order to confirm the validity of the information provided; and

``(II) a determination of whether the individual is authorized to be employed in the United States.

``(ii) CONTEST AND SELF-VERIFICATION.--The Secretary in consultation with the Commissioner of Social Security, shall establish procedures to permit an individual who contests a tentative or final nonconfirmation notice, or seeks to verify the individual's own employment eligibility prior to obtaining or changing employment, to contact the appropriate agency and, in a timely manner, correct or update the information used by the System.

``(iii) INFORMATION TO EMPLOYEE.--The Secretary shall develop a written form for employers to provide to individuals who receive a tentative or final nonconfirmation notice. Such form shall be made available in a language other than English, as necessary and reasonable, and shall include--

``(I) information about the reason for such notice;

``(II) the right to contest such notice;

``(III) contact information for the appropriate agency and instructions for initiating such contest; and

``(IV) a 24-hour toll-free telephone number to respond to inquiries related to such notice.

``(iv) TRAINING MATERIALS.--The Secretary shall make available or provide to the employer, upon request, not later than 60 days prior to such employer's participation in the System, appropriate training materials to facilitate compliance with this subsection, and sections 274B(a)(7) and 274C(a).

``(F) RESPONSIBILITIES OF THE COMMISSIONER OF SOCIAL SECURITY.--The responsibilities of the Commissioner of Social Security with respect to the System are set out in section 205(c)(2) of the Social Security Act.

``(G) RESPONSIBILITIES OF THE SECRETARY OF STATE.--The Secretary of State shall establish a reliable, secure method to provide through the System a confirmation of the issuance of identity documents described in subsection (c)(1)(B)(i)(I) and transmit to the Secretary the related photographic image or other identifying information.

``(H) RESPONSIBILITIES OF A STATE.--The official responsible for issuing drivers' licenses and identity cards for a State shall establish a reliable, secure method to provide through the System a confirmation of the issuance of identity documents described in subsection (c)(1)(B)(i)(II) and transmit to the Secretary the related photographic image or other identifying information.

``(9) PROTECTION FROM LIABILITY.--No employer that participates in the System shall be liable under any law for any employment-related action taken with respect to an individual in good faith reliance on information provided by the System.

``(10) ADMINISTRATIVE REVIEW.--

``(A) IN GENERAL.--An individual who is terminated from employment as a result of a final nonconfirmation notice may, not later than 30 days after the date of such termination, file an appeal of such notice.

``(B) PROCEDURES.--The Secretary and Commissioner of Social Security shall develop procedures to review appeals filed under subparagraph (A) and to make final determinations on such appeals.

``(C) REVIEW FOR ERRORS.--If a final determination on an appeal filed under subparagraph (A) results in a confirmation of an individual's eligibility to work in the United States, the administrative review process shall require the Secretary to determine whether the final nonconfirmation notice issued for the individual was the result of--

``(i) the decision rules, processes, or procedures utilized by the System;

``(ii) a natural disaster, or other event beyond the control of the government;

``(iii) acts or omissions of an employee or official operating or responsible for the System;

``(iv) acts or omissions of the individual's employer;

``(v) acts or omissions of the individual; or

``(vi) any other reason.

``(D) COMPENSATION FOR ERROR.--

``(i) IN GENERAL.--If the Secretary makes a determination under subparagraph (C) that the final nonconfirmation notice issued for an individual was caused by a negligent, reckless, willful, or malicious act of the government, and was not due to an act or omission of the individual, the Secretary shall compensate the individual for lost wages.

``(ii) CALCULATION OF LOST WAGES.--Lost wages shall be calculated based on the wage rate and work schedule that prevailed prior to termination. The individual shall be compensated for wages lost during the period beginning on the date the individual files a notice of appeal under this paragraph and ending on the earlier of--

``(I) the date which is 180 days thereafter; or

``(II) the day after the date the individual receives a confirmation described in subparagraph (C).

``(11) JUDICIAL REVIEW.--

``(A) IN GENERAL.--After the Secretary makes a final determination on an appeal filed by an individual under the administrative review process described in paragraph (10), the individual may obtain judicial review of such determination by a civil action commenced not later than 30 days after the date of such decision, or such further time as the Secretary may allow.

``(B) JURISDICTION.--A civil action for such judicial review shall be brought in the district court of the United States for the judicial district in which the plaintiff resides, or has a principal place of business, or, if the plaintiff does not reside or have a principal place of business within any such judicial district, in the District Court of the United States for the District of Columbia.

``(C) ANSWER.--As part of the Secretary's answer to a complaint for such judicial review, the Secretary shall file a certified copy of the administrative record compiled during the administrative review under paragraph (10), including the evidence upon which the findings and decision complained of are based. The court shall have power to enter, upon the pleadings and transcript of the record, a judgment affirming or reversing the result of that administrative review, with or without remanding

the cause for a rehearing.

``(D) COMPENSATION FOR ERROR.--

``(i) IN GENERAL.--In cases in which such judicial review reverses the final determination of the Secretary made under paragraph (10), the court shall compensate the individual for lost wages.

``(ii) CALCULATION OF LOST WAGES.--Lost wages shall be calculated based on the wage rate and work scheduled that prevailed prior to termination. The individual shall be compensated for wages lost during the period beginning on the date the individual files a notice of appeal under paragraph (10) and ending on the earlier of--

``(I) the date which is 180 days thereafter; or

``(II) the day after the date the individual receives a reversal described in clause (i).

``(12) COMPENSATION FOR LOSS OF EMPLOYMENT.--For purposes of paragraphs (10) and (11)--

``(A) LIMITATION ON COMPENSATION.--For purposes of determining an individual's compensation for the loss of employment, such compensation shall not include any period in which the individual was not present in, or was ineligible for employment in, the United States.

``(B) SOURCE OF FUNDS.--Compensation or reimbursement provided under such paragraphs shall be provided from funds appropriated that are not otherwise obligated.

``(13) LIMITATION ON COLLECTION AND USE OF DATA.--

``(A) LIMITATION ON COLLECTION OF DATA.--

``(i) IN GENERAL.--The Secretary shall collect and maintain only the minimum data necessary to facilitate the successful operation of the System, and in no case shall the data be other than--

``(I) information necessary to register employers under paragraph (5);

``(II) information necessary to initiate and respond to inquiries or contests under paragraph (8);

``(III) information necessary to establish and enforce compliance with paragraphs (5) and (8);

``(IV) information necessary to detect and prevent employment-related identity fraud; and

``(V) such other information the Secretary determines is necessary, subject to a 180-day notice and comment period in the Federal Register.

``(ii) PENALTIES.--Any officer, employee, or contractor who willfully and knowingly collects and maintains data in the System other than data described in clause (i) shall be guilty of a misdemeanor and fined $1,000 for each violation.

``(B) LIMITATION ON USE OF DATA.--Whoever willfully and knowingly accesses, discloses, or uses any information obtained or maintained by the System--

``(i) for the purpose of committing identity fraud, or assisting another person in committing identity fraud, as defined in section 1028 of title 18, United States Code;

``(ii) for the purpose of unlawfully obtaining employment in the United States or unlawfully obtaining employment in the United States for any other person; or

``(iii) for any purpose other than as provided for under any provision of law;

shall be guilty of a felony and upon conviction shall be fined under title 18, United States Code, or imprisoned for not more than 5 years, or both.

``(C) EXCEPTIONS.--Nothing in subparagraph (A) or (B) may be construed to limit the collection, maintenance, or use of data by the Commissioner of Internal Revenue or the Commissioner of Social Security as provided by law.

``(14) MODIFICATION AUTHORITY.--The Secretary, after notice is submitted to Congress and provided to the public in the Federal Register, is authorized to modify the requirements of this subsection with respect to completion of forms, method of storage, attestations, copying of documents, signatures, methods of transmitting information, and other operational and technical aspects to improve the efficiency, accuracy, and security of the System. The Secretary shall minimize the collection

and storage of paper documents and maximize the use of electronic records, including electronic signatures.

``(15) ANNUAL GAO STUDY AND REPORT.--

``(A) REQUIREMENT.--The Comptroller General of the United States shall conduct an annual study of the System.

``(B) PURPOSE.--The study shall evaluate the accuracy, efficiency, integrity, and impact of the System.

``(C) REPORT.--Not later than the date that is 24 months after the date of the enactment of this section, and annually thereafter, the Comptroller General shall submit to Congress a report containing the findings of the study carried out under this paragraph. Each such report shall include, at a minimum, the following:

``(i) An assessment of System performance with respect to the rate at which individuals who are eligible for employment in the United States are correctly approved within each of the periods specified in paragraph (8), including a separate assessment of such rate for nationals and aliens.

``(ii) An assessment of the privacy and security of the System and its effects on identity fraud or the misuse of personal data.

``(iii) An assessment of the effects of the System on the employment of unauthorized aliens.

``(iv) An assessment of the effects of the System, including the effects of tentative confirmations on unfair immigration-related employment practices, and employment discrimination based on national origin or citizenship status.

``(v) An assessment of whether the Secretary and the Commissioner of Social Security have adequate resources to carry out the duties and responsibilities of this section.

``(e) Compliance.--

``(1) COMPLAINTS AND INVESTIGATIONS.--The Secretary shall establish procedures--

``(A) for individuals and entities to file complaints regarding potential violations of subsection (a);

``(B) for the investigation of such complaints that the Secretary determines are appropriate to investigate; and

``(C) for the investigation of other violations of subsection (a) that the Secretary determines is appropriate.

``(2) AUTHORITY IN INVESTIGATIONS.--

``(A) IN GENERAL.--In conducting investigations and hearings under this subsection, officers and employees of the Department of Homeland Security--

``(i) shall have reasonable access to examine evidence regarding any employer being investigated; and

``(ii) if designated by the Secretary, may compel by subpoena the attendance of witnesses and the production of evidence at any designated place in an investigation or case under this subsection.

``(B) FAILURE TO COOPERATE.--In case of refusal to obey a subpoena lawfully issued under subparagraph (A)(ii), the Secretary may request that the Attorney General apply in an appropriate district court of the United States for an order requiring compliance with such subpoena, and any failure to obey such order may be punished by such court as contempt.

``(C) DEPARTMENT OF LABOR.--The Secretary of Labor shall have the investigative authority provided under section 11(a) of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)) to ensure compliance with the provisions of this section.

``(3) COMPLIANCE PROCEDURES.--

``(A) PREPENALTY NOTICE.--If the Secretary has reasonable cause to believe that there has been a violation of a requirement of this section and determines that further proceedings related to such violation are warranted, the Secretary shall issue to the employer concerned a written notice of the Secretary's intention to issue a claim for a fine or other penalty. Such notice shall--

``(i) describe the violation;

``(ii) specify the laws and regulations allegedly violated;

``(iii) specify the amount of fines or other penalties to be imposed;

``(iv) disclose the material facts which establish the alleged violation; and

``(v) inform such employer that the employer shall have a reasonable opportunity to make representations as to why a claim for a monetary or other penalty should not be imposed.

``(B) REMISSION OR MITIGATION OF PENALTIES.--

``(i) REVIEW BY SECRETARY.--If the Secretary determines that such fine or other penalty was incurred erroneously, or determines the existence of such mitigating circumstances as to justify the remission or mitigation of such fine or penalty, the Secretary may remit or mitigate such fine or other penalty on the terms and conditions as the Secretary determines are reasonable and just, or order termination of any proceedings related to the notice. Such mitigating circumstances may include

good faith compliance and participation in, or agreement to participate in, the System, if not otherwise required.

``(ii) APPLICABILITY.--This subparagraph may not apply to an employer that has or is engaged in a pattern or practice of violations of paragraph (1), (2), or (3) of subsection (a) or of any other requirements of this section.

``(C) PENALTY CLAIM.--After considering evidence and representations offered by the employer, the Secretary shall determine whether there was a violation and promptly issue a written final determination setting forth the findings of fact and conclusions of law on which the determination is based and the appropriate penalty.

``(4) CIVIL PENALTIES.--

``(A) HIRING OR CONTINUING TO EMPLOY UNAUTHORIZED ALIENS.--Any employer that violates any provision of paragraph (1), (2), or (3) of subsection (a) shall pay civil penalties as follows:

``(i) Pay a civil penalty of $5,000 for each unauthorized alien with respect to each such violation.

``(ii) If the employer has previously been fined 1 time under this subparagraph, pay a civil penalty of $10,000 for each unauthorized alien with respect to each such violation.

``(iii) If the employer has previously been fined more than 1 time under this subparagraph or has failed to comply with a previously issued and final order related to any such provision, pay a civil penalty of $25,000 for each unauthorized alien with respect to each such violation.

``(iv) If the employer has previously been fined more than 2 times under this subparagraph or has failed to comply with a previously issued and final order related to any such provision, pay a civil penalty of $75,000 for each unauthorized alien with respect to each such violation.

``(v) An employer who fails to comply with a written final determination under paragraph (3)(C) shall be fined $75,000 for each violation, in addition to any fines or other penalties imposed by such determination.

``(B) RECORDKEEPING OR VERIFICATION PRACTICES.--Any employer that violates or fails to comply with the recordkeeping requirements of subsections (a), (c), and (d), shall pay a civil penalty as follows:

``(i) Pay a civil penalty of $1,000 for each such violation.

``(ii) If the employer has previously been fined 1 time under this subparagraph, pay a civil penalty of $2,000 for each such violation.

``(iii) If the employer has previously been fined more than 1 time under this subparagraph, pay a civil penalty of $5,000 for each such violation.

``(iv) If the employer has previously been fined more than 2 times under this subparagraph, pay a civil penalty of $15,000 for each such violation.

``(v) An employer who fails to comply with a written final determination under paragraph (3) shall be fined $15,000 for each violation, in addition to any fines or other penalties imposed by such determination.

``(C) OTHER PENALTIES.--Notwithstanding subparagraphs (A) and (B), the Secretary may impose additional penalties for violations, including violations of cease and desist orders, specially designed compliance plans to prevent further violations, suspended fines to take effect in the event of a further violation, and in appropriate cases, the criminal penalty described in subsection (f).

``(5) JUDICIAL REVIEW.--An employer adversely affected by a final determination may, within 30 days after the date the final determination is issued, file a petition in any appropriate district court of the United States. The filing of a petition as provided in this paragraph shall stay the Secretary's determination until entry of judgment by the court. The burden shall be on the employer to show that the final determination was not supported by substantial evidence. The Secretary is

authorized to require that the petitioner provide, prior to filing for review, security for payment of fines and penalties through bond or other guarantee of payment acceptable to the Secretary.

``(6) ENFORCEMENT OF ORDERS.--If an employer fails to comply with a final determination issued against that employer under this subsection, and the final determination is not subject to review as provided in paragraph (5), the Attorney General may file suit to enforce compliance with the final determination, not earlier than 31 days and not later than 180 days after the date the final determination is issued, in any appropriate district court of the United States. In any such suit, the

validity and appropriateness of the final determination shall not be subject to review.

``(f) Criminal Penalties and Injunctions for Pattern or Practice Violations.--

``(1) CRIMINAL PENALTY.--An employer that engages in a pattern or practice of knowing violations of subsection (a)(1)(A) or (a)(2) shall be fined not more than $75,000 for each unauthorized alien with respect to whom such a violation occurs, imprisoned for not more than 3 years for the entire pattern or practice, or both.

``(2) ENJOINING OF PATTERN OR PRACTICE VIOLATIONS.--If the Secretary or the Attorney General has reasonable cause to believe that an employer is engaged in a pattern or practice of employment, recruitment, or referral in violation of paragraph (1)(A) or (2) of subsection (a), the Attorney General may bring a civil action in the appropriate district court of the United States requesting a permanent or temporary injunction, restraining order, or other order against the employer, as the

Secretary deems necessary.

``(g) Adjustment for Inflation.--All penalties in this section shall be increased every 4 years beginning January 2011 to reflect the percentage increase in the consumer price index for all urban consumers (all items; U.S. city average) for the 48 month period ending with September of the year preceding the year such adjustment is made. Any adjustment under this subparagraph shall be rounded to the nearest dollar.

``(h) Prohibition of Indemnity Bonds.--

``(1) PROHIBITION.--It is unlawful for an employer, in the hiring, recruiting, or referral of an individual, to require the individual to post a bond or security, to pay or agree to pay an amount, or otherwise to provide a financial guarantee or indemnity, against any potential liability arising under this section relating to such hiring, recruiting, or referral of the individual.

``(2) CIVIL PENALTY.--Any employer which is determined, after notice and opportunity for mitigation of the monetary penalty under subsection (e), to have violated paragraph (1) of this subsection shall be subject to a civil penalty of $10,000 for each violation and to an administrative order requiring the return of any amounts received in violation of such paragraph to the employee or, if the employee cannot be located, to the Employer Compliance Fund established under section 286(z).

``(i) Prohibition on Award of Government Contracts, Grants, and Agreements.--

``(1) EMPLOYERS WITH NO CONTRACTS, GRANTS, OR AGREEMENTS.--

``(A) IN GENERAL.--If an employer who does not hold a Federal contract, grant, or cooperative agreement is determined by the Secretary to be a repeat violator of this section or is convicted of a crime under this section, the employer shall be subject to debarment from the receipt of a Federal contract, grant, or cooperative agreement for a period of not more than 2 years in accordance with the procedures and standards prescribed by the Federal Acquisition Regulations. The Secretary or

the Attorney General shall advise the Administrator of General Services of such a debarment, and the Administrator of General Services shall list the employer on the List of Parties Excluded from Federal Procurement and Nonprocurement Programs for a period of the debarment.

``(B) WAIVER.--The Administrator of General Services, in consultation with the Secretary and the Attorney General, may waive operation of this subsection or may limit the duration or scope of the debarment.

``(2) EMPLOYERS WITH CONTRACTS, GRANTS, OR AGREEMENTS.--

``(A) IN GENERAL.--An employer who holds a Federal contract, grant, or cooperative agreement and is determined by the Secretary to be a repeat violator of this section or is convicted of a crime under this section, shall be subject to debarment from the receipt of new Federal contracts, grants, or cooperative agreements for a period of not more than 2 years in accordance with the procedures and standards prescribed by the Federal Acquisition Regulations.

``(B) NOTICE TO AGENCIES.--Prior to debarring the employer under subparagraph (A), the Secretary, in cooperation with the Administrator of General Services, shall advise all agencies or departments holding a contract, grant, or cooperative agreement with the employer of the Government's intention to debar the employer from the receipt of new Federal contracts, grants, or cooperative agreements for a period of not more than 2 years.

``(C) WAIVER.--After consideration of the views of all agencies or departments that hold a contract, grant, or cooperative agreement with the employer, the Secretary may, in lieu of debarring the employer from the receipt of new Federal contracts, grants, or cooperative agreements for a period of nor more than 2 years, waive operation of this subsection, limit the duration or scope of the debarment, or may refer to an appropriate lead agency the decision of whether to debar the employer,

for what duration, and under what scope in accordance with the procedures and standards prescribed by the Federal Acquisition Regulation. However, any proposed debarment predicated on an administrative determination of liability for civil penalty by the Secretary or the Attorney General shall not be reviewable in any debarment proceeding.

``(3) SUSPENSION.--Indictments for violations of this section or adequate evidence of actions that could form the basis for debarment under this subsection shall be considered a cause for suspension under the procedures and standards for suspension prescribed by the Federal Acquisition Regulation.

``(4) DETERMINATION OF REPEAT VIOLATORS.--Inadvertent violations of recordkeeping or verification requirements, in the absence of any other violations of this section, shall not be a basis for determining that an employer is a repeat violator for purposes of this subsection.

``(j) Miscellaneous Provisions.--

``(1) DOCUMENTATION.--In providing documentation or endorsement of authorization of aliens eligible to be employed in the United States, the Secretary shall provide that any limitations with respect to the period or type of employment or employer shall be conspicuously stated on the documentation or endorsement (other than aliens lawfully admitted for permanent residence).

``(2) PREEMPTION.--The provisions of this section preempt any State or local law--

``(A) imposing civil or criminal sanctions upon those who hire, or recruit or refer for a fee, unauthorized aliens for employment; or

``(B) requiring the use of the System for any unauthorized purpose, or any authorized purpose prior to the time such use is required or permitted by Federal law.

``(k) Deposit of Amounts Received.--Except as otherwise specified, civil penalties collected under this section shall be deposited by the Secretary into the Employer Compliance Fund established under section 286(z).

``(l) Definitions.--In this section:

``(1) SECRETARY.--Except as otherwise provided, the term `Secretary' means the Secretary of Homeland Security.

``(2) UNAUTHORIZED ALIEN.--The term `unauthorized alien' means, with respect to the employment of an alien at a particular time, that the alien is not at that time either--

``(A) an alien lawfully admitted for permanent residence; or

``(B) authorized to be so employed by this Act or by the Secretary under any other provision of law.''.

(b) Conforming Amendments.--

(1) AMENDMENTS.--

(A) REPEAL OF BASIC PILOT.--Sections 401, 402, 403, 404, and 405 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104-208; 8 U.S.C. 1324a note) are repealed.

(B) REPEAL OF REPORTING REQUIREMENTS.--

(i) REPORT ON EARNINGS OF ALIENS NOT AUTHORIZED TO WORK.--Subsection (c) of section 290 (8 U.S.C. 1360) is repealed.

(ii) REPORT ON FRAUDULENT USE OF SOCIAL SECURITY ACCOUNT NUMBERS.--Subsection (b) of section 414 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104-208; 8 U.S.C. 1360 note) is repealed.

(2) CONSTRUCTION.--Nothing in this subsection or in subsection (d) of section 274A, as amended by subsection (a), may be construed to limit the authority of the Secretary to allow or continue to allow the participation of employers who participated in the basic pilot program under sections 401, 402, 403, 404, and 405 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (division C of Public Law 104-208; 8 U.S.C. 1324a note)

in the Electronic Employment Verification System established pursuant to such subsection (d).

(c) Technical Amendments.--

(1) DEFINITION OF UNAUTHORIZED ALIEN.--Sections 218(i)(1) (8 U.S.C. 1188(i)(1)), 245(c)(8) (8 U.S.C. 1255(c)(8)), 274(a)(3)(B)(i) (8 U.S.C. 1324(a)(3)(B)(i)), and 274B(a)(1) (8 U.S.C. 1324b(a)(1)) are amended by striking ``274A(h)(3)'' and inserting ``274A''.

(2) DOCUMENT REQUIREMENTS.--Section 274B (8 U.S.C. 1324b) is amended--

(A) in subsections (a)(6) and (g)(2)(B), by striking ``274A(b)'' and inserting ``274A(c) and (d)''; and

(B) in subsection (g)(2)(B)(ii), by striking ``274A(b)(5)'' and inserting ``274A(c)''.

(d) Amendments to the Social Security Act.--

(1) Section 205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is amended by adding at the end the following new subparagraphs:

``(I)(i) The Commissioner of Social Security shall, subject to the provisions of section 301(f)(2) of the Secure Borders, Economic Opportunity, and Immigration Reform Act of 2007, establish a reliable, secure method to provide through the Electronic Employment Verification System established pursuant to subsection (d) of section 274A of the Immigration and Nationality Act (referred to in this subparagraph as the `System'), within the time periods required by paragraph (8) of such subsection--

``(I) a determination of whether the name, date of birth, and social security account number of an individual provided in an inquiry made to the System by an employer is consistent with such information maintained by the Commissioner;

``(II) a determination of the citizenship status associated with such name and social security account number, according to the records maintained by the Commissioner;

``(III) a determination of whether the name and number belongs to an individual who is deceased, according to the records maintained by the Commissioner;

``(IV) a determination of whether the name and number is blocked in accordance with clause (ii); and

``(V) a confirmation notice or a nonconfirmation notice described in such paragraph (8), in a manner that ensures that other information maintained by the Commissioner is not disclosed or released to employers through the System.

``(ii) The Commissioner of Social Security shall prevent the fraudulent or other misuse of a social security account number by establishing procedures under which an individual who has been assigned a social security account number may block the use of such number under the System and remove such block.

``(J) In assigning social security account numbers to aliens who are authorized to work in the United States under section 218A of the Immigration and Nationality Act, the Commissioner of Social Security shall--

``(i) to the maximum extent practicable, assign such numbers by employing the enumeration procedure administered jointly by the Commissioner, the Secretary of State, and the Secretary of Homeland Security;

``(ii) in all cases, record, verify, and maintain an electronic record of the alien identification or authorization number issued by the Secretary and utilized by the Commissioner in assigning such social security account number; and

``(iii) upon the issuance of a social security account number, transmit such number to the Secretary of Homeland Security for inclusion in such alien's record maintained by the Secretary.''.

(2) Section 205(c)(2)(C)(i) of the Social Security Act (42 U.S.C. 405(c)(2)(C)(i)) is amended by adding at the end the following: ``Any State that utilizes a social security account number for such purpose shall enter into an agreement with the Commissioner to allow the Commissioner to verify the name, date of birth, and the identity number issued by the official the State responsible for issuing drivers' licenses and identity cards. Such agreement shall be under the same terms and conditions

as agreements entered into by the Commissioner under paragraph 205(r)(8).''.

(3) Section 205(r) of the Social Security Act (42 U.S.C. 405(r)) is amended by adding at the end the following new paragraph:

``(9) Notwithstanding this section or any agreement entered into thereunder, the Commissioner of Social Security is authorized to disclose death information to the Secretary of Homeland Security to the extent necessary to carry out the responsibilities required under subsection (c)(2) and section 6103(l)(21) of the Internal Revenue Code of 1986.''.

(e) Disclosure of Certain Taxpayer Identity Information.--

(1) IN GENERAL.--Section 6103(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

``(21) DISCLOSURE OF CERTAIN TAXPAYER IDENTITY INFORMATION BY THE SOCIAL SECURITY ADMINISTRATION TO THE DEPARTMENT OF HOMELAND SECURITY.--

``(A) IN GENERAL.--Upon written request by the Secretary of Homeland Security, the Commissioner of Social Security or the Secretary shall disclose directly to officers, employees, and contractors of the Department of Homeland Security the following information:

``(i) DISCLOSURE OF EMPLOYER NO MATCH NOTICES.--The taxpayer identity of each person who has filed an information return required by reason of section 6051 or section 6041(a) for tax year 2005 and subsequent tax years that end before the date that is specified in subparagraph (F) which contains--

``(I) 1 (or any greater number the Secretary shall request) name and taxpayer identifying number of any employee (within the meaning of section 6051) or any recipient (within the meaning of section 6041(a)) that could not be matched to the records maintained by the Commissioner of Social Security, or

``(II) 2 (or any greater number the Secretary shall request) names of employees (within the meaning of such section) or recipients (within the meaning of section 6041(a)) with the same taxpayer identifying number,

and the taxpayer identity of each such employee or recipient.

``(ii) DISCLOSURE OF INFORMATION REGARDING USE OF DUPLICATE TAXPAYER IDENTIFYING INFORMATION OF EMPLOYEES.--The taxpayer identity of each person who has filed an information return required by reason of section 6051 or section 6041(a) for tax year 2005 and subsequent tax years that end before the date that is specified in subparagraph (F) which contains the taxpayer identifying number (assigned under section 6109) of an employee (within the meaning of section 6051) or a recipient (within

the meaning of section 6041(a))--

``(I) who is under the age of 14 (or any lesser age the Secretary shall request), according to the records maintained by the Commissioner of Social Security,

``(II) whose date of death, according to the records so maintained, occurred in a calendar year preceding the calendar year for which the information return was filed,

``(III) whose taxpayer identifying number is contained in more than one (or any greater number the Secretary shall request) information return filed in such calendar year, or

``(IV) who is not authorized to work in the United States, according to the records maintained by the Commissioner of Social Security,

and the taxpayer identity of each such employee or recipient.

``(iii) DISCLOSURE OF INFORMATION REGARDING NONPARTICIPATING EMPLOYERS.--The taxpayer identity of each person who has filed an information return required by reason of section 6051 or section 6041(a) which the Commissioner of Social Security or the Secretary, as the case may be, has reason to believe, based on a comparison with information submitted by the Secretary of Homeland Security, contains evidence of such person's failure to register and participate in the Electronic Employment

Verification System authorized under section 274A(d) of the Immigration and Nationality Act (hereafter in this paragraph referred to as the `System').

``(iv) DISCLOSURE OF INFORMATION REGARDING NEW EMPLOYEES OF NONPARTICIPATING EMPLOYERS.--The taxpayer identity of all employees (within the meaning of section 6051) hired and recipients (within the meaning of section 6041(a)) retained after the date a person identified in clause (iii) is required to participate in the System under section 274A(d)(2) or section 274A(d)(3)(B) of the Immigration and Nationality Act.

``(v) DISCLOSURE OF INFORMATION REGARDING EMPLOYEES OF CERTAIN DESIGNATED EMPLOYERS.--The taxpayer identity of all employees (within the meaning of section 6051) and recipients (within the meaning of section 6041(a)) of each person who is required to participate in the System under section 274A(d)(3)(B) of the Immigration and Nationality Act.

``(vi) DISCLOSURE OF NEW HIRE TAXPAYER IDENTITY INFORMATION.--The taxpayer identity of each person participating in the System and the taxpayer identity of all employees (within the meaning of section 6051) of such person hired and all recipients (within the meaning of section 6041(a)) of such person retained during the period beginning with the later of--

``(I) the date such person begins to participate in the System, or

``(II) the date of the request immediately preceding the most recent request under this clause,

ending with the date of the most recent request under this clause.

``(B) RESTRICTION ON DISCLOSURE.--The taxpayer identities disclosed under subparagraph (A) may be used by officers, employees, and contractors of the Department of Homeland Security only for purposes of, and to the extent necessary in--

``(i) preventing identity fraud;

``(ii) preventing aliens from unlawfully obtaining employment in the United States;

``(iii) establishing and enforcing employer participation in the System;

``(iv) carrying out, including through civil administrative and civil judicial proceedings, of sections 212, 217, 235, 237, 238, 274A, 274B, and 274C of the Immigration and Nationality Act; and

``(v) the civil operation of the Alien Terrorist Removal Court.

``(C) REIMBURSEMENT.--The Commissioner of Social Security and the Secretary shall prescribe a reasonable fee schedule based on the additional costs directly incurred for furnishing taxpayer identities under this paragraph and collect such fees in advance from the Secretary of Homeland Security.

``(D) INFORMATION RETURNS UNDER SECTION 6041.--For purposes of this paragraph, any reference to information returns required by reason of section 6041(a) shall only be a reference to such information returns relating to payments for labor.

``(E) FORM OF DISCLOSURE.--The taxpayer identities to be disclosed under paragraph (A) shall be provided in a form agreed upon by the Commissioner of Social Security, the Secretary, and the Secretary of Homeland Security.

``(F) TERMINATION.--This paragraph shall not apply to any request made after the date which is 5 years after the date of the enactment of this paragraph.''.

(2) COMPLIANCE BY DHS CONTRACTORS WITH CONFIDENTIALITY SAFEGUARDS.--

(A) IN GENERAL.--Section 6103(p) of such Code is amended by adding at the end the following new paragraph:

``(9) DISCLOSURE TO DHS CONTRACTORS.--Notwithstanding any other provision of this section, no return or return information shall be disclosed to any contractor of the Department of Homeland Security unless such Department, to the satisfaction of the Secretary--

``(A) has requirements in effect which require each such contractor which would have access to returns or return information to provide safeguards (within the meaning of paragraph (4)) to protect the confidentiality of such returns or return information,

``(B) agrees to conduct an on-site review every 3 years (midpoint review in the case of contracts or agreements of less than 3 years in duration) of each contractor to determine compliance with such requirements,

``(C) submits the findings of the most recent review conducted under subparagraph (B) to the Secretary as part of the report required by paragraph (4)(E), and

``(D) certifies to the Secretary for the most recent annual period that such contractor is in compliance with all such requirements.

The certification required by subparagraph (D) shall include the name and address of each contractor, a description of the contract or agreement with such contractor, and the duration of such contract or agreement.''.

(3) CONFORMING AMENDMENTS.--

(A) Section 6103(a)(3) of such Code is amended by striking ``or (20)'' and inserting ``(20), or (21)''.

(B) Section 6103(p)(3)(A) of such Code is amended by adding at the end the following new sentence: ``The Commissioner of Social Security shall provide to the Secretary such information as the Secretary may require in carrying out this paragraph with respect to return information inspected or disclosed under the authority of subsection (l)(21).''.

(C) Section 6103(p)(4) of such Code is amended--

(i) by striking ``or (17)'' both places it appears and inserting ``(17), or (21)''; and

(ii) by striking ``or (20)'' each place it appears and inserting ``(20), or (21)''.

(D) Section 6103(p)(8)(B) of such Code is amended by inserting ``or paragraph (9)'' after ``subparagraph (A)''.

(E) Section 7213(a)(2) of such Code is amended by striking ``or (20)'' and inserting ``(20), or (21)''.

(f) Authorization of Appropriations.--

(1) IN GENERAL.--There are authorized to be appropriated to the Secretary such sums as are necessary to carry out the amendments made by this section.

(2) LIMITATION ON VERIFICATION RESPONSIBILITIES OF COMMISSIONER OF SOCIAL SECURITY.--The Commissioner of Social Security is authorized to perform activities with respect to carrying out the Commissioner's responsibilities in this title or the amendments made by this title, but only to the extent funds are appropriated, in advance, to cover the Commissioner's full costs in carrying out such responsibilities. In no case shall funds from the Federal Old-Age and Survivors Insurance Trust

Fund or the Federal Disability Insurance Trust Fund be used to carry out such responsibilities.

(g) Effective Dates.--

(1) IN GENERAL.--The amendments made by subsections (a), (b), (c), and (d) shall take effect on the date of the enactment of this Act.

(2) SUBSECTION (e).--

(A) IN GENERAL.--The amendments made by subsection (e) shall apply to disclosures made after the date of the enactment of this Act.

(B) CERTIFICATIONS.--The first certification under section 6103(p)(9)(D) of the Internal Revenue Code of 1986, as added by subsection (e)(2), shall be made with respect to calendar year 2008.

SEC. 302. EMPLOYER COMPLIANCE FUND.

Section 286 (8 U.S.C. 1356), as amended by sections 402(b) and 623, is further amended by adding at the end the following new subsection:

``(z) Employer Compliance Fund.--

``(1) IN GENERAL.--There is established in the general fund of the Treasury, a separate account, which shall be known as the `Employer Compliance Fund' (referred to in this subsection as the `Fund').

``(2) DEPOSITS.--There shall be deposited as offsetting receipts into the Fund all civil monetary penalties collected by the Secretary of Homeland Security under section 274A.

``(3) PURPOSE.--Amounts refunded to the Secretary from the Fund shall be used for the purposes of enhancing and enforcing employer compliance with section 274A.

``(4) AVAILABILITY OF FUNDS.--Amounts deposited into the Fund shall remain available until expended and shall be refunded out of the Fund by the Secretary of the Treasury, at least on a quarterly basis, to the Secretary of Homeland Security.''.

SEC. 303. ADDITIONAL WORKSITE ENFORCEMENT AND FRAUD DETECTION AGENTS.

(a) Increase in Number of Personnel.--The Secretary shall, subject to the availability of appropriations for such purpose, annually increase, by not less than 2,200, the number of personnel of the Bureau of Immigration and Customs Enforcement during the 5-year period beginning on the date of the enactment of this Act.

(b) Use of Personnel.--The Secretary shall ensure that not less than 25 percent of all the hours expended by personnel of the Bureau of Immigration and Customs Enforcement shall be used to enforce compliance with sections 274A and 274C of the Immigration and Nationality Act (8 U.S.C. 1324a and 1324c).

(c) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary for each of the fiscal years 2008 through 2012 such sums as may be necessary to carry out this section.

SEC. 304. CLARIFICATION OF INELIGIBILITY FOR MISREPRESENTATION.

Section 212(a)(6)(C)(ii)(I) (8 U.S.C. 1182(a)(6)(C)(ii)(I)), is amended by striking ``citizen'' and inserting ``national''.

SEC. 305. ANTIDISCRIMINATION PROTECTIONS.

(a) Application of Prohibition of Discrimination to Verification System.--Section 274B(a) (8 U.S.C. 1324b(a)) is amended--

(1) in paragraph (1)--

(A) in the matter preceding subparagraph (A), by inserting ``, the verification of the individual's work authorization through the Electronic Employment Verification System described in section 274A(d),'' after ``the individual for employment''; and

(B) in subparagraph (B), by striking ``in the case of a protected individual (as defined in paragraph (3)),''; and

(2) by striking paragraph (3) and inserting the following:

``(3) ANTIDISCRIMINATION REQUIREMENTS OF THE ELECTRONIC EMPLOYMENT VERIFICATION SYSTEM.--

``(A) IN GENERAL.--It is an unfair immigration-related employment practice for a person or other entity, in the course of the electronic verification process described in section 274A(d)--

``(i) to terminate or undertake any adverse employment action due to a tentative nonconfirmation;

``(ii) to use the verification system for screening of an applicant prior to an offer of employment;

``(iii) except as described in section 274A(d)(3)(B), to use the verification system for a current employee after the first day of employment, unless a waiver is provided by the Secretary of Homeland Security for good cause, or for the reverification of an employee after the employee has satisfied the process described in section 274A(d); or

``(iv) to require an individual to make an inquiry under the self-verification procedures established in section 274A(d)(8)(E)(iii).

``(B) PREEMPLOYMENT SCREENING AND BACKGROUND CHECK.--Nothing in subparagraph (A) shall be construed to preclude a preemployment screening or background check that is required or permitted under any other provision of law.''.

(b) Increase in Civil Money Penalties.--Section 274B(g)(2) (8 U.S.C. 1324b(g)(2)) is amended in subparagraph (B)(iv)--

(1) in subclause (I), by striking ``$250 and not more than $2,000'' and inserting ``$1,000 and not more than $4,000'';

(2) in subclause (II), by striking ``$2,000 and not more than $5,000'' and inserting ``$4,000 and not more than $10,000'';

(3) in subclause (III), by striking ``$3,000 and not more than $10,000'' and inserting ``$6,000 and not more than $20,000''; and

(4) in subclause (IV), by striking ``$100 and not more than $1,000'' and inserting ``$500 and not more than $5,000''.

(c) Increased Funding of Information Campaign.--Section 274B(l)(3) (8 U.S.C. 1324b(l)(3)) is amended by inserting ``and an additional $40,000,000 for each of fiscal years 2008 through 2010'' before the period at the end.

(d) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act and shall apply to violations occurring on or after such date.

(As printed in the Congressional Record for the Senate on Jun 6, 2007.)