S.Amdt. 4147

1. Rewrites title III

   Replaces

   In S. 2611 · Placed on Calendar Senate

   Struck: TITLE III--UNLAWFUL EMPLOYMENT OF ALIENS

   Struck: SEC. 301. UNLAWFUL EMPLOYMENT OF ALIENS.

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

   Struck: "SEC. 274A. UNLAWFUL EMPLOYMENT OF ALIENS.

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   Struck: "(a) Making Employment of Unauthorized Aliens Unlawful.--

   Struck: "(1) In general.--It is unlawful for an employer--

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

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

   Struck: "(2) Continuing employment.--It is unlawful for an employer, after lawfully hiring an alien for employment, to continue to employ the alien in the United States knowing that the alien is (or has become) an unauthorized alien with respect to such employment.

   Struck: "(3) Use of labor through contract.--Any employer who uses a contract, subcontract, or exchange to obtain the labor of an alien in the United States knowing that the alien is an unauthorized alien with respect to performing such labor shall be considered to have hired the alien for employment in the united States in violation of paragraph (1)(A). Any employer who uses a contract, subcontract, or exchange to obtain the labor of a person in the United States shall be in violation of paragraph (1)(B) unless--

   Struck: "(A) the employer includes in the contract or subcontract or other binding agreement a requirement that the person hiring the alien shall comply with this section and keep records necessary to demonstrate compliance with this section; and

   Struck: "(B) the employer exercises reasonable diligence to ensure that person complies with this section.

   Struck: "(4) Defense.--

   Struck: "(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.

   Struck: "(B) Exception.--Until the date that an employer is required to participate in the Electronic Employment Verification System under subsection (d) or is permitted to participate 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).

   Struck: "(b) Order of Internal Review and Certification of Compliance.--

   Struck: "(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.

   Struck: "(2) Content of certification.--Not later than 60 days after the date an employer receives a request for a certification under paragraph (1) the chief executive officer or similar official of the employer shall certify under penalty of perjury that--

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

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

   Struck: "(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.

   Struck: "(4) Publication.--The Secretary is authorized to publish in the Federal Register standards or methods for certification and for specific record keeping practices with respect to such certification, and procedures for the audit of any records related to such certification.

   Struck: "(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 requirements of subsection (d) and the following paragraphs:

   Struck: "(1) Attestation by employer.--

   Struck: "(A) Requirements.--

   Struck: "(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--

   Struck: "(I) a document described in subparagraph (B); or

   Struck: "(II) a document described in subparagraph (C) and a document described in subparagraph (D).

   Struck: "(ii) Signature requirements.--An attestation required by clause (i) may be manifested by a handwritten or electronic signature.

   Struck: "(iii) Standards for examination.--An employer has complied with the requirement of this paragraph with respect to examination of documentation if, based on the totality of the circumstances, a reasonable person would conclude that the document examined is genuine and establishes the individual's identity and eligibility for employment in the United States.

   Struck: "(iv) 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 paragraph (3) or (4) of subsection (d).

   Struck: "(v) Requirements for employment eligibility system participants.--A participant in the Electronic Employment Verification System established under subsection (d), regardless of whether such participation is voluntary or mandatory, 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 comply with the attestation requirement, and to comply with the employment eligibility verification requirements contained in this section.

   Struck: "(B) Documents establishing both employment eligibility and identity.--A document described in this subparagraph is an individual's--

   Struck: "(i) United States passport; or

   Struck: "(ii) permanent resident card or other document designated by the Secretary, if the document--

   Struck: "(I) contains a photograph of the individual and such other personal identifying information relating to the individual that the Secretary proscribes in regulations is sufficient for the purposes of this subparagraph;

   Struck: "(II) is evidence of eligibility for employment in the United States; and

   Struck: "(III) contains security features to make the document resistant to tampering, counterfeiting, and fraudulent use.

   Struck: "(C) Documents evidencing employment eligibility.--A document described in this subparagraph is an individual's social security account number card issued by the Commissioner of Social Security (other than a card which bears the legend 'not valid for employment' or 'valid for work only with DHS authorization').

   Struck: "(D) Documents establishing identity of individual.--A document described in this subparagraph is an individual's--

   Struck: "(i) 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 satisfies the requirements of the REAL ID Act of 2005 (division B of Public Law 109-13; 119 Stat. 302);

   Struck: "(ii) employee identification card issued by a Federal agency or department, including a branch of the Armed Forces, or an agency or department of a State, or a Native American tribal document, provided that such card or document--

   Struck: "(I) contains the individual's photograph or information including the individual's name, date of birth, gender, eye color, and address; and

   Struck: "(II) contains security features to make the card resistant to tampering, counterfeiting, and fraudulent use; or

   Struck: "(iii) in the case of an individual who is unable to obtain a document described in clause (i) or (ii), a document of personal identity of such other type that--

   Struck: "(I) the Secretary determines is a reliable means of identification;

   Struck: "(II) contains the individual's photograph or information including the individual's name, date of birth, gender, and address; and

   Struck: "(III) contains security features to make the document resistant to tampering, counterfeiting, and fraudulent use.

   Struck: "(E) Authority to prohibit use of certain documents.--

   Struck: "(i) Authority.--If the Secretary finds that a document or class of documents described in subparagraph (B), (C), or (D) is not reliable to establish identity or eligibility for employment (as the case may be) or is being used fraudulently to an unacceptable degree, the Secretary is authorized to prohibit, or impose conditions, on the use of such document or class of documents for purposes of this subsection.

   Struck: "(ii) Requirement for publication.--The Secretary shall publish notice of any findings under clause (i) in the Federal Register.

   Struck: "(2) Attestation of employee.--

   Struck: "(A) Requirements.--

   Struck: "(i) In general.--The individual shall attest, under penalty of perjury on the form prescribed by the Secretary, that the individual is a national of the United States, an alien lawfully admitted for permanent residence, or an alien who is authorized under this Act or by the Secretary to be hired, or to be recruited or referred for a fee, in the United States.

   Struck: "(ii) Signature for examination.--An attestation required by clause (i) may be manifested by a handwritten or electronic signature.

   Struck: "(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.

   Struck: "(3) Retention of attestation.--An employer shall retain a paper, microfiche, microfilm, or electronic version of an attestation submitted under paragraph (1) or (2) for an individual 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--

   Struck: "(A) in the case of the recruiting or referral for a fee (without hiring) of an individual, 7 years after the date of the recruiting or referral; or

   Struck: "(B) in the case of the hiring of an individual the later of--

   Struck: "(i) 7 years after the date of such hiring;

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

   Struck: "(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

   Struck: (ii) if the Secretary reduces such period for such employer or class of employers.

   Struck: "(4) Document retention and recordkeeping requirements.--

   Struck: "(A) Retention of documents.--An employer shall retain, for the applicable period described in paragraph (3), the following documents:

   Struck: "(i) In general.--Notwithstanding any other provision of law, the employer shall copy all documents presented by an individual pursuant to this subsection and shall retain paper, microfiche, microfilm, or electronic copies of such documents. Such copies shall be designated as copied documents and reflect the signature of the employer and the individual and the date of receipt of such documents.

   Struck: "(ii) Use of retained documents.--An employer shall use copies retained under clause (i) only for the purposes of complying with the requirements of this subsection, except as otherwise permitted under law.

   Struck: "(B) Retention of clarification documents.--The employer shall maintain records of any actions and copies of any correspondence or action taken by the employer to clarify or resolve any issue that raises reasonable doubt as to the validity of the individual's identity or eligibility for employment in the United States.

   Struck: "(5) Penalties.--An employer that fails to comply with the requirement of this subsection shall be subject to the penalties described in subsection (e)(4)(B).

   Struck: "(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.

   Struck: "(d) Electronic Employment Verification System.--

   Struck: "(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') as described in this subsection.

   Struck: "(2) Management of system.--

   Struck: "(A) In general.--The Secretary shall, through the System--

   Struck: "(i) provide a response to an inquiry made by an employer through the Internet or other electronic media or over a telephone line regarding an individual's identity and eligibility for employment in the United States;

   Struck: "(ii) establish a set of codes to be provided through the System to verify such identity and authorization; and

   Struck: "(iii) maintain a record of each such inquiry and the information and codes provided in response to such inquiry.

   Struck: "(B) 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--

   Struck: "(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

   Struck: "(ii) if the System is unable to confirm the individual's identity or eligibility for employment in the United States, a tentative nonconfirmation notice, including the appropriate codes for such nonconfirmation notice.

   Struck: "(C) Verification process in case of a tentative nonconfirmation notice.--

   Struck: "(i) In general.--If a tentative nonconfirmation notice is issued under subparagraph (B)(ii), not later than 10 business days after the date an individual submits information to contest such notice under paragraph (7)(C)(ii)(III), the Secretary, through the System, shall issue a final confirmation notice or a final nonconfirmation notice to the employer, including the appropriate codes for such notice.

   Struck: "(ii) Extension of time.--The Secretary, in consultation with the Commissioner of Social Security, may extend the 10-day period described in clause (i) for no more than 180 days if the information needed to resolve an initial negative response cannot be obtained by or submitted to the Secretary or the Commissioner and verified or entered into the System within such 10-day period.

   Struck: "(iii) Automatic extension.--If the most recent previous report submitted by the Comptroller General of the United States under paragraph (12) includes an assessment that the System is not able to issue, during a period that averages 10 days or less, a final notice in at least 99 percent of the cases in which the notice relates to an individual who is eligible for employment in the United States, the Secretary shall automatically extend the 10-day period referred to in clause (i) to a period of not less than 180 days.

   Struck: "(iv) Development of process.--The Secretary shall consult with the Commissioner of Social Security to develop a verification process to be used to provide a final confirmation notice or a final nonconfirmation notice under clause (i).

   Struck: "(D) Design and operation of system.--The Secretary, in consultation with the Commissioner of Social Security, shall design and operate the System--

   Struck: "(i) to maximize reliability and ease of use by employers in a manner that protects and maintains the privacy and security of the information maintained in the System;

   Struck: "(ii) to respond to each inquiry made by an employer;

   Struck: "(iii) to track and record any occurrence when the System is inoperable;

   Struck: "(iv) to include appropriate administrative, technical, and physical safeguards to prevent unauthorized disclosure of personal information;

   Struck: "(v) to allow for monitoring of the use of the System and provide an audit capability;

   Struck: "(vi) to have reasonable safeguards, developed in consultation with the Attorney General, to prevent employers from using the System to engage in unlawful discriminatory practices, based on national origin or citizenship status; and

   Struck: "(vii) to establish a process to allow an individual to verify the individual's employment eligibility prior to obtaining or changing employment to facilitate the updating and correction of information used by the System.

   Struck: "(E) 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.

   Struck: "(F) Responsibilities of the secretary.--The Secretary shall establish a reliable, secure method to provide through the System, within the time periods required by subparagraphs (B) and (C)--

   Struck: "(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;

   Struck: "(ii) a determination of whether such number was issued to the named individual;

   Struck: "(iii) a determination of whether the individual is authorized to be employed in the United States; and

   Struck: "(iv) any other related information that the Secretary may require.

   Struck: "(G) Updating information.--The Secretary shall update the information maintained in the System in a manner that promotes maximum accuracy and shall provide a process for the prompt correction of erroneous information.

   Struck: "(3) Requirements for participation.--Except as provided in paragraph (4), the Secretary shall require employers to participate in the System as follows:

   Struck: "(A) Critical employers.--As of the date that is 180 days after the date of the enactment of the Comprehensive Immigration Reform Act of 2006, the Secretary may require any employer or class of employers to participate in the System with respect to employees hired prior to, on, or after such date of enactment if the Secretary designates such employer or class of employers, in the Secretary's sole and unreviewable discretion, as a critical employer based on critical infrastructure, national security, or homeland security needs.

   Struck: "(B) Remaining employers.--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 18 months after the date that funds are appropriated and made available to the Secretary to implement this subsection.

   Struck: "(4) Other participation in system.--Notwithstanding paragraph (3), the Secretary has the authority, in the Secretary's sole and unreviewable discretion--

   Struck: "(A) to permit any employer that is not required to participate in the System under paragraph (3) to participate in the System on a voluntary basis; and

   Struck: "(B) to require any employer that is required to participate in the System under paragraph (3) with respect to newly hired employees to participate in the System with respect to all employees hired by the employer prior to, on, or after the date of the enactment of the Comprehensive Immigration Reform Act of 2006, if the Secretary has reasonable causes to believe that the employer has engaged in violations of the immigration laws.

   Struck: "(5) Requirement to publish.--The Secretary shall publish in the Federal Register the requirements for participation in the System as described in paragraphs (3) and (4) prior to the effective date of such requirements.

   Struck: "(6) 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 individual--

   Struck: "(A) such failure shall be treated as a violation of subsection (a)(1)(B) of this section with respect to such individual; and

   Struck: "(B) a rebuttable presumption is created that the employer has violated subsection (a)(1)(A) of this section, however such presumption may not apply to a prosecution under subsection (f)(1).

   Struck: "(7) System requirements.--

   Struck: "(A) In general.--An employer that participates in the System shall, with respect to the hiring, or recruiting or referring for a fee, any individual for employment in the United States, shall--

   Struck: "(i) obtain from the individual and record on the form designated by the Secretary--

   Struck: "(I) the individual's name and date of birth;

   Struck: "(II) the individual's social security account number; and

   Struck: "(III) in the case of an individual who does not attest that the individual is a national of the United States under subsection (c)(2), such alien identification or authorization number that the Secretary shall require;

   Struck: "(ii) retain the original of such form and make such form available for inspection for the periods and in the manner described in subsection (c)(3).

   Struck: "(B) Initial inquiry.--The employer shall submit an inquiry through the System to seek confirmation of the individual's identity and eligibility for employment in the United States--

   Struck: "(i) not later than 3 working days (or such other reasonable time as may be specified by the Secretary of Homeland Security) after the date of the hiring, or recruiting or referring for a fee, of the individual (as the case may be); or

   Struck: "(ii) in the case of an employee hired prior to the date of enactment of the Comprehensive Immigration Reform Act of 2006, at such time as the Secretary shall specify.

   Struck: "(C) Confirmation or nonconfirmation.--

   Struck: "(i) Confirmation upon initial inquiry.-- If an employer receives a confirmation notice under paragraph (2)(B)(i) for an individual, the employer shall record, on the form specified by the Secretary, the appropriate code provided in such notice.

   Struck: "(ii) Nonconfirmation and verification.--

   Struck: "(I) Nonconfirmation.--If an employer receives a tentative nonconfirmation notice under paragraph (2)(B)(ii) for an individual, the employer shall inform such individual of the issuances of such notice in writing and shall provide the individual with detailed information about the right to contest the tentative nonconfirmation and the procedures established by the Secretary and the Commissioner of Social Security for contesting such nonconfirmation.

   Struck: "(II) No contest.--If the individual does not contest the tentative nonconfirmation notice under subclause (I) within 10 business days of receiving notice from the individual's employer, the notice shall become final and the employer shall record on the form specified by the Secretary, the appropriate code provided in the nonconfirmation notice.

   Struck: "(III) Contest.--If the individual contests the tentative nonconfirmation notice under subclause (I), the individual shall submit appropriate information to contest such notice under procedures prescribed by the Secretary, in consultation with the Commissioners of Social Security, not later than 10 business days after receiving the notice from the individual's employer and shall utilize the verification process developed under paragraph (2)(C)(iii).

   Struck: "(IV) Effective period of tentative nonconfirmation.--A tentative nonconfirmation notice shall remain in effect until such notice becomes final under clause (II) or a final confirmation notice or final nonconfirmation notice is issued by the System.

   Struck: "(V) Prohibition on termination.-- An employer may not terminate the employment of an individual based on a tentative nonconfirmation notice until such notice becomes final under clause (II) or a final nonconfirmation notice is issued for the individual by the System. Nothing in this clause shall apply to a termination of employment for any reason other than such tentative nonconfirmation.

   Struck: "(VI) Recording of conclusion on form.--If a final confirmation or nonconfirmation is provided by the System regarding an individual, the employer shall record on the form designated by the Secretary the appropriate code that is provided under the System to indicate a confirmation or nonconfirmation of the identity and employment eligibility of the individual.

   Struck: "(D) Consequences of nonconfirmation.--If the employer has received a final nonconfirmation regarding an individual, the employer shall 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).

   Struck: "(8) Construction.--Nothing in this section shall be construed to limit the right of an individual who claims to be a national of the United States to pursue that claim as provided for in section 360(a).

   Struck: "(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.

   Struck: "(10) Limitation on use of the system.--Notwithstanding any other provision of law, nothing in this subsection shall be construed to permit or allow any department, bureau, or other agency of the United States to utilize any information, database, or other records used in the System for any purpose other than as provided for under any provision of law.

   Struck: "(11) 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.

   Struck: "(12) Annual gao study and report.--

   Struck: "(A) Requirement.--The Comptroller General of the United States shall conduct an annual study of the System.

   Struck: "(B) Purpose.--The study shall evaluate the accuracy, integrity, and impact of the System.

   Struck: "(C) Report.--Not later than 12 months after the date of the enactment of the Initial Entry, Adjustment, and Citizenship Assistance Grant Act of 2006, and annually thereafter, the Comptroller General shall submit to Congress a report containing the findings of the study carried out under this paragraph. Such report shall include, at a minimum, the following:

   Struck: "(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 10 days, including the assessment described in paragraph (2)(C)(iii).

   Struck: "(ii) An assessment of the privacy and security of the System and its impact on identity fraud or the misuse of personal data.

   Struck: "(iii) An assessment of the impact of the System on the employment of unauthorized aliens and employment discrimination based on national origin or citizenship.

   Struck: "(e) Compliance.--

   Struck: "(1) Complaints and investigations.--The Secretary shall establish procedures--

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

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

   Struck: "(C) for the investigation of other violations of subsection (a) that the Secretary determines are appropriate.

   Struck: "(2) Authority in investigations.--

   Struck: "(A) In general.--In conducting investigations and hearings under this subsection, officers and employees of the Department of Homeland Security--

   Struck: "(i) shall have reasonable access to examine evidence of any employer being investigated; and

   Struck: "(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.

   Struck: "(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.

   Struck: "(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.

   Struck: "(3) Compliance procedures.--

   Struck: "(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--

   Struck: "(i) describe the violation;

   Struck: "(ii) specify the laws and regulations allegedly violated;

   Struck: "(iii) disclose the material facts which establish the alleged violation; and

   Struck: "(iv) 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.

   Struck: "(B) Remission or mitigation of penalties.--

   Struck: "(i) Petition by employer.--Whenever any employer receives written notice of a fine or other penalty in accordance with subparagraph (A), the employer may file within 30 days from receipt of such notice, with the Secretary a petition for the remission or mitigation of such fine or penalty, or a petition for termination of the proceedings. The petition may include any relevant evidence or proffer of evidence the employer wishes to present, and shall be filed and considered in accordance with procedures to be established by the Secretary.

   Struck: "(ii) Review by secretary.--If the Secretary finds that such fine or other penalty was incurred erroneously, or finds 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.

   Struck: "(iii) Applicability.--This subparagraph may not apply to an employer that has or is engaged in a pattern or practice of violations of paragraph (1)(A), (1)(B), or (2) of subsection (a) or of any other requirements of this section.

   Struck: "(C) Penalty claim.--After considering evidence and representations offered by the employer pursuant to subparagraph (B), 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.

   Struck: "(4) Civil penalties.--

   Struck: "(A) Hiring or continuing to employ unauthorized aliens.--Any employer that violates any provision of paragraph (1)(A) or (2) of subsection (a) shall pay civil penalties as follows:

   Struck: "(i) Pay a civil penalty of not less than $500 and not more than $4,000 for each unauthorized alien with respect to each such violation.

   Struck: "(ii) If the employer has previously been fined 1 time under this subparagraph, pay a civil penalty of not less than $4,000 and not more than $10,000 for each unauthorized alien with respect to each such violation.

   Struck: "(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 not less than $6,000 and not more than $20,000 for each unauthorized alien with respect to each such violation.

   Struck: "(B) Recordkeeping or verification practices.--Any employer that violates or fails to comply with the requirements of subsections (c) and (d), shall pay a civil penalty as follows:

   Struck: "(i) Pay a civil penalty of not less than $200 and not more than $2,000 for each such violation.

   Struck: "(ii) If the employer has previously been fined 1 time under this subparagraph, pay a civil penalty of not less than $400 and not more than $4,000 for each such violation.

   Struck: "(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 such requirements, pay a civil penalty of $6,000 for each such violation.

   Struck: "(C) Other penalties.--Notwithstanding subparagraphs (A) and (B), the Secretary may impose additional penalties for violations, including 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 civil penalty described in subsection (g)(2).

   Struck: "(D) Reduction of penalties.--Notwithstanding subparagraphs (A), (B), and (C), the Secretary is authorized to reduce or mitigate penalties imposed upon employers, based upon factors including the employer's hiring volume, compliance history, good faith implementation of a compliance program, participation in a temporary worker program, and voluntary disclosure of violations of this subsection to the Secretary.

   Struck: "(E) Adjustment for inflation.--All penalties in this section may be adjusted every 4 years to account for inflation, as provided by law.

   Struck: "(5) Judicial review.--An employer adversely affected by a final determination may, within 45 days after the date the final determination is issued, file a petition in the Court of Appeals for the appropriate circuit for review of the order. 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.

   Struck: "(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 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.

   Struck: "(f) Criminal Penalties and Injunctions for Pattern or Practice Violations.--

   Struck: "(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 $20,000 for each unauthorized alien with respect to whom such a violation occurs, imprisoned for not more than 6 months for the entire pattern or practice, or both.

   Struck: "(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 such relief, including a permanent or temporary injunction, restraining order, or other order against the employer, as the Secretary deems necessary.

   Struck: "(g) Prohibition of Indemnity Bonds.--

   Struck: "(1) Prohibition.--It is unlawful for an employer, in the hiring, recruiting, or referring for a fee, 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 referring of the individual.

   Struck: "(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(w).

   Struck: "(h) Prohibition on Award of Government Contracts, Grants, and Agreements.--

   Struck: "(1) Employers with no contracts, grants, or agreements.--

   Struck: "(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 debarred from the receipt of a Federal contract, grant, or cooperative agreement for a period of 2 years. 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 2 years.

   Struck: "(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.

   Struck: "(2) Employers with contracts, grants, or agreements.--

   Struck: "(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 debarred from the receipt of Federal contracts, grants, or cooperative agreements for a period of 2 years.

   Struck: "(B) Notice to agencies.--Prior to debarring the employer under subparagraph (A), the Secretary, in cooperation with the Administrator of General Services, shall advise any agency or department 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 2 years.

   Struck: "(C) Waiver.--After consideration of the views of any agency or department that holds 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 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. The decision of whether to debar or take alternate action under this subparagraph shall not be judicially reviewed.

   Struck: "(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.

   Struck: "(i) Miscellaneous Provisions.--

   Struck: "(1) Documentation.--In providing documentation or endorsement of authorization of aliens (other than aliens lawfully admitted for permanent residence) 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.

   Struck: "(2) Preemption.--The provisions of this section preempt any State or local law--

   Struck: "(A) imposing civil or criminal sanctions (other than through licensing and similar laws) upon those who employ, or recruit or refer for a fee for employment, unauthorized aliens; or

   Struck: "(B) requiring as a condition of conducting, continuing, or expanding a business that a business entity--

   Inserted: TITLE III--WORKPLACE ENFORCEMENT AND IDENTIFICATION INTEGRITY

   Inserted: Subtitle A--In General SEC. 301. SHORT TITLE.

   Inserted: This title may be cited as the "Employment Security Act of 2006".

   Inserted: SEC. 302. FINDINGS.

   Inserted: Congress makes the following findings:

   Inserted: (1) The failure of Federal, State, and local governments to control and sanction the unauthorized employment and unlawful exploitation of illegal alien workers is a primary cause of illegal immigration.

   Inserted: (2) The use of modern technology not available in 1986, when the Immigration Reform and Control Act of 1986 (Public Law 99-603; 100 Stat. 3359) created the I-9 worker verification system, will enable employers to rapidly and accurately verify the identity and work authorization of their employees and independent contractors.

   Inserted: (3) The Government and people of the United States share a compelling interest in protection of United States employment authorization, income tax withholding, and social security accounting systems, against unauthorized access by illegal aliens.

   Inserted: (4) Limited data sharing between the Department of Homeland Security, the Internal Revenue Service, and the Social Security Administration is essential to the integrity of these vital programs, which protect the employment and retirement security of all working Americans.

   Inserted: (5) The Federal judiciary must be open to private United States citizens, legal foreign workers, and law-abiding enterprises that seek judicial protection against injury to their wages and working conditions due to unlawful employment of illegal alien workers and the United States enterprises that utilize the labor or services provided by illegal aliens, especially where lack of resources constrains enforcement of Federal immigration law by Federal immigration officials.

   Inserted: Subtitle B--Employment Eligibility Verification System SEC. 311. EMPLOYMENT ELIGIBILITY VERIFICATION SYSTEM.

   Inserted: (a) In General.--Section 274A(b) of the Immigration and Nationality Act (8 U.S.C. 1324a(b)) is amended by adding at the end the following:

   Show 92 more inserted paragraphsShow less

   Inserted: "(7) Employment eligibility verification system.--

   Inserted: "(A) In general.--The Secretary of Homeland Security shall establish and administer a verification system, known as the Employment Eligibility Verification System, through which the Secretary--

   Inserted: "(i) responds to inquiries made by persons at any time through a toll-free telephone line and other toll-free electronic media concerning an individual's identity and whether the individual is authorized to be employed; and

   Inserted: "(ii) maintains records of the inquiries that were made, of verifications provided (or not provided), and of the codes provided to inquirers as evidence of their compliance with their obligations under this section.

   Inserted: "(B) Initial response.--The verification system shall provide verification or a tentative nonverification of an individual's identity and employment eligibility within 3 working days of the initial inquiry. If providing verification or tentative nonverification, the verification system shall provide an appropriate code indicating such verification or such nonverification.

   Inserted: "(C) Secondary verification process in case of tentative nonverification.--In cases of tentative nonverification, the Secretary shall specify, in consultation with the Commissioner of Social Security, an available secondary verification process to confirm the validity of information provided and to provide a final verification or nonverification within 10 working days after the date of the tentative nonverification. When final verification or nonverification is provided, the verification system shall provide an appropriate code indicating such verification or nonverification.

   Inserted: "(D) Design and operation of system.--The verification system shall be designed and operated--

   Inserted: "(i) to maximize its reliability and ease of use by persons and other entities consistent with insulating and protecting the privacy and security of the underlying information;

   Inserted: "(ii) to respond to all inquiries made by such persons and entities on whether individuals are authorized to be employed and to register all times when such inquiries are not received;

   Inserted: "(iii) with appropriate administrative, technical, and physical safeguards to prevent unauthorized disclosure of personal information; and

   Inserted: "(iv) to have reasonable safeguards against the system's resulting in unlawful discriminatory practices based on national origin or citizenship status, including--

   Inserted: "(I) the selective or unauthorized use of the system to verify eligibility;

   Inserted: "(II) the use of the system prior to an offer of employment; or

   Inserted: "(III) the exclusion of certain individuals from consideration for employment as a result of a perceived likelihood that additional verification will be required, beyond what is required for most job applicants.

   Inserted: "(E) Responsibilities of the commissioner of social security.--As part of the verification system, the Commissioner of Social Security, in consultation with the Secretary of Homeland Security (and any designee of the Secretary selected to establish and administer the verification system), shall establish a reliable, secure method, which, within the time periods specified under subparagraphs (B) and (C), compares the name and social security account number provided in an inquiry against such information maintained by the Commissioner in order to validate (or not validate) the information provided regarding an individual whose identity and employment eligibility must be confirmed, the correspondence of the name and number, and whether the individual has presented a social security account number that is not valid for employment. The Commissioner shall not disclose or release social security information (other than such verification or nonverification) except as provided for in this section or section 205(c)(2)(I) of the Social Security Act.

   Inserted: "(F) Responsibilities of the secretary of homeland security.--(i) As part of the verification system, the Secretary of Homeland Security (in consultation with any designee of the Secretary selected to establish and administer the verification system), shall establish a reliable, secure method, which, within the time periods specified under subparagraphs (B) and (C), compares the name and alien identification or authorization number which are provided in an inquiry against such information maintained by the Secretary in order to validate (or not validate) the information provided, the correspondence of the name and number, and whether the alien is authorized to be employed in the United States.

   Inserted: "(ii) When a single employer has submitted to the verification system pursuant to paragraph (3)(A) the identical social security account number in more than one instance, or when multiple employers have submitted to the verification system pursuant to such paragraph the identical social security account number, in a manner which indicates the possible fraudulent use of that number, the Secretary of Homeland Security shall conduct an investigation, within the time periods specified in subparagraphs (B) and (C), in order to ensure that no fraudulent use of a social security account number has taken place. If the Secretary has selected a designee to establish and administer the verification system, the designee shall notify the Secretary when a single employer has submitted to the verification system pursuant to paragraph (3)(A) the identical social security account number in more than one instance, or when multiple employers have submitted to the verification system pursuant to such paragraph the identical social security account number, in a manner which indicates the possible fraudulent use of that number. The designee shall also provide the Secretary with all pertinent information, including the name and address of the employer or employers who submitted the relevant social security account number, the relevant social security account number submitted by the employer or employers, and the relevant name and date of birth of the employee submitted by the employer or employers.

   Inserted: "(G) Updating information.--The Commissioner of Social Security and the Secretary of Homeland Security shall update their information in a manner that promotes maximum accuracy and shall provide a process for the prompt correction of erroneous information, including instances in which it is brought to their attention in the secondary verification process described in subparagraph (C).

   Inserted: "(H) Limitation on use of the verification system and any related systems.--Notwithstanding any other provision of law, nothing in this subsection shall be construed to permit or allow any department, bureau, or other agency of the United States Government to utilize any information, database, or other records assembled under this subsection for any purpose other than the enforcement and administration of the immigration laws, the Social Security Act, or any provision of Federal criminal law.

   Inserted: "(I) Federal tort claims act.--If an individual alleges that the individual would not have been dismissed from a job but for an error of the verification mechanism, the individual may seek compensation only through the mechanism of the Federal Tort Claims Act, and injunctive relief to correct such error. No class action may be brought under this subparagraph.

   Inserted: "(J) Protection from liability for actions taken on the basis of information.--No person or entity shall be civilly or criminally liable for any action taken in good faith reliance on information provided through the employment eligibility verification mechanism established under this paragraph.".

   Inserted: (b) Repeal of Provision Relating to Evaluations and Changes in Employment Verification.--Section 274A(d) (8 U.S.C. 1324a(d)) is repealed.

   Inserted: (c) Effective Date.--The amendments made by this section shall take effect 2 years after the date of the enactment of this Act.

   Inserted: SEC. 312. EMPLOYMENT ELIGIBILITY VERIFICATION PROCESS.

   Inserted: (a) In General.--Section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended--

   Inserted: (1) in subsection (a)(3), by inserting "(A)" after "Defense.--", and by adding at the end the following:

   Inserted: "(B) Failure to seek and obtain verification.--In the case of a person or entity in the United States that hires, or continues to employ, an individual, or recruits or refers an individual for employment, the following requirements apply:

   Inserted: "(i) Failure to seek verification.--

   Inserted: "(I) In general.--If the person or entity has not made an inquiry, under the mechanism established under subsection (b)(7), seeking verification of the identity and work eligibility of the individual, by not later than the end of 3 working days (as specified by the Secretary of Homeland Security) after the date of the hiring, the date specified in subsection (b)(8)(B) for previously hired individuals, or before the recruiting or referring commences, the defense under subparagraph (A) shall not be considered to apply with respect to any employment, except as provided in subclause (II).

   Inserted: "(II) Special rule for failure of verification mechanism.--If such a person or entity in good faith attempts to make an inquiry in order to qualify for the defense under subparagraph (A) and the verification mechanism has registered that not all inquiries were responded to during the relevant time, the person or entity can make an inquiry until the end of the first subsequent working day in which the verification mechanism registers no nonresponses and qualify for such defense.

   Inserted: "(ii) Failure to obtain verification.--If the person or entity has made the inquiry described in clause (i)(I) but has not received an appropriate verification of such identity and work eligibility under such mechanism within the time period specified under subsection (b)(7)(B) after the time the verification inquiry was received, the defense under subparagraph (A) shall not be considered to apply with respect to any employment after the end of such time period.";

   Inserted: (2) by amending subparagraph (A) of subsection (b)(1) to read as follows:

   Inserted: "(A) In general.--The person or entity must attest, under penalty of perjury and on a form designated or established by the Secretary by regulation, that it has verified that the individual is not an unauthorized alien by--

   Inserted: "(i) obtaining from the individual the individual's social security account number and recording the number on the form (if the individual claims to have been issued such a number), and, if the individual does not attest to United States citizenship under paragraph (2), obtaining such identification or authorization number established by the Department of Homeland Security for the alien as the Secretary of Homeland Security may specify, and recording such number on the form; and

   Inserted: "(ii)(I) examining a document described in subparagraph (B); or

   Inserted: "(II) examining a document described in subparagraph (C) and a document described in subparagraph (D).

   Inserted: A person or entity has complied with the requirement of this paragraph with respect to examination of a document if the document reasonably appears on its face to be genuine, reasonably appears to pertain to the individual whose identity and work eligibility is being verified, and, if the document bears an expiration date, that expiration date has not elapsed. If an individual provides a document (or combination of documents) that reasonably appears on its face to be genuine, reasonably appears to pertain to the individual whose identity and work eligibility is being verified, and is sufficient to meet the first sentence of this paragraph, nothing in this paragraph shall be construed as requiring the person or entity to solicit the production of any other document or as requiring the individual to produce another document.";

   Inserted: (3) in subsection (b)(1)(D)--

   Inserted: (A) in clause (i), by striking "or such other personal identification information relating to the individual as the Attorney General finds, by regulation, sufficient for purposes of this section"; and

   Inserted: (B) in clause (ii), by inserting before the period "and that contains a photograph of the individual";

   Inserted: (4) in subsection (b)(2), by adding at the end the following: "The individual must also provide that individual's social security account number (if the individual claims to have been issued such a number), and, if the individual does not attest to United States citizenship under this paragraph, such identification or authorization number established by the Department of Homeland Security for the alien as the Secretary may specify.";

   Inserted: (5) by amending paragraph (3) of subsection (b) to read as follows:

   Inserted: "(3) Retention of verification form and verification.--

   Inserted: "(A) In general.--After completion of such form in accordance with paragraphs (1) and (2), the person or entity shall--

   Inserted: "(i) retain a paper, microfiche, microfilm, or electronic version of the form and make it available for inspection by officers of the Department of Homeland Security, the Special Counsel for Immigration-Related Unfair Employment Practices, or the Department of Labor during a period beginning on the date of the hiring, recruiting, or referral of the individual or the date of the completion of verification of a previously hired individual and ending--

   Inserted: "(I) in the case of the recruiting or referral of an individual, three years after the date of the recruiting or referral;

   Inserted: "(II) in the case of the hiring of an individual, the later of--

   Inserted: "(aa) three years after the date of such hiring; or

   Inserted: "(bb) one year after the date the individual's employment is terminated; and

   Inserted: "(III) in the case of the verification of a previously hired individual, the later of--

   Inserted: "(aa) three years after the date of the completion of verification; or

   Inserted: "(bb) one year after the date the individual's employment is terminated;

   Inserted: "(ii) make an inquiry, as provided in paragraph (7), using the verification system to seek verification of the identity and employment eligibility of an individual, by not later than the end of 3 working days (as specified by the Secretary of Homeland Security) after the date of the hiring or in the case of previously hired individuals, the date specified in subsection (b)(8)(B), or before the recruiting or referring commences; and

   Inserted: "(iii) not commence recruitment or referral of the individual until the person or entity receives verification under subparagraph (B)(i) or (B)(iii).

   Inserted: "(B) Verification.--

   Inserted: "(i) Verification received.--If the person or other entity receives an appropriate verification of an individual's identity and work eligibility under the verification system within the time period specified, the person or entity shall record on the form an appropriate code that is provided under the system and that indicates a final verification of such identity and work eligibility of the individual.

   Inserted: "(ii) Tentative nonverification received.--If the person or other entity receives a tentative nonverification of an individual's identity or work eligibility under the verification system within the time period specified, the person or entity shall so inform the individual for whom the verification is sought. If the individual does not contest the nonverification within the time period specified, the nonverification shall be considered final. The person or entity shall then record on the form an appropriate code which has been provided under the system to indicate a tentative nonverification. If the individual does contest the nonverification, the individual shall utilize the process for secondary verification provided under paragraph (7). The nonverification will remain tentative until a final verification or nonverification is provided by the verification system within the time period specified. In no case shall an employer terminate employment of an individual because of a failure of the individual to have identity and work eligibility confirmed under this section until a nonverification becomes final. Nothing in this clause shall apply to a termination of employment for any reason other than because of such a failure.

   Inserted: "(iii) Final verification or nonverification received.--If a final verification or nonverification is provided by the verification system regarding an individual, the person or entity shall record on the form an appropriate code that is provided under the system and that indicates a verification or nonverification of identity and work eligibility of the individual.

   Inserted: "(iv) Extension of time.--If the person or other entity in good faith attempts to make an inquiry during the time period specified and the verification system has registered that not all inquiries were received during such time, the person or entity may make an inquiry in the first subsequent working day in which the verification system registers that it has received all inquiries. If the verification system cannot receive inquiries at all times during a day, the person or entity merely has to assert that the entity attempted to make the inquiry on that day for the previous sentence to apply to such an inquiry, and does not have to provide any additional proof concerning such inquiry.

   Inserted: "(v) Consequences of nonverification.--

   Inserted: "(I) Termination or notification of continued employment.--If the person or other entity has received a final nonverification regarding an individual, the person or entity may terminate employment of the individual (or decline to recruit or refer the individual). If the person or entity does not terminate employment of the individual or proceeds to recruit or refer the individual, the person or entity shall notify the Secretary of Homeland Security of such fact through the verification system or in such other manner as the Secretary may specify.

   Inserted: "(II) Failure to notify.--If the person or entity fails to provide notice with respect to an individual as required under subclause (I), the failure is deemed to constitute a violation of subsection (a)(1)(A) with respect to that individual.

   Inserted: "(vi) Continued employment after final nonverification.--If the person or other entity continues to employ (or to recruit or refer) an individual after receiving final nonverification, a rebuttable presumption is created that the person or entity has violated subsection (a)(1)(A).";

   Inserted: (6) by amending paragraph (4) of subsection (b) to read as follows:

   Inserted: "(4) Copying and record keeping of documentation required.--

   Inserted: "(A) Lawful employment documents.--Notwithstanding any other provision of law, a person or entity shall retain a copy of each document presented by an individual to the individual or entity pursuant to this subsection. Such copy may only be used (except as otherwise permitted under law) for the purposes of complying with the requirements of this subsection and shall be maintained for a time period to be determined by the Secretary of Homeland Security.

   Inserted: "(B) Social security correspondence.--A person or entity shall maintain records of correspondence from the Commissioner of Social Security regarding name and number mismatches or no-matches and the steps taken to resolve such mismatches or no-matches. The employer shall maintain such records for a time period to be determined by the Secretary.

   Inserted: "(C) Other documents.--The Secretary may, by regulation, require additional documents to be copied and maintained."; and

   Inserted: (7) by amending paragraph (5) of subsection (b) to read as follows:

   Inserted: "(5) Use of attestation form.--A form designated by the Secretary to be used for compliance with this subsection, and any information contained in or appended to such form, may not be used for purposes other than for enforcement of this chapter or of title 18, United States Code.".

   Inserted: (b) Investigation Not a Warrantless Entry.--Section 287(e) of the Immigration and Nationality Act (8 U.S.C. 1357(e)) is amended by adding at the end the following: "An investigation authorized pursuant to subsections (b)(7) or (e) of section 274A is not a warrantless entry.".

   Inserted: (c) Effective Date.--The amendments made by this section shall take effect 2 years after the date of the enactment of this Act.

   Inserted: SEC. 313. EXPANSION OF EMPLOYMENT ELIGIBILITY VERIFICATION SYSTEM TO PREVIOUSLY HIRED INDIVIDUALS AND RECRUITING AND REFERRING.

   Inserted: (a) Application to Recruiting and Referring.--Section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended--

   Inserted: (1) in subsection (a)(1)(A), by striking "for a fee";

   Inserted: (2) in subsection (a)(1), by amending subparagraph (B) to read as follows:

   Inserted: "(B) to hire, continue to employ, or to recruit or refer for employment in the United States an individual without complying with the requirements of subsection (b).";

   Inserted: (3) in subsection (a)(2) by striking "after hiring an alien for employment in accordance with paragraph (1)," and inserting "after complying with paragraph (1),"; and

   Inserted: (4) in subsection (a)(3), as amended by section 312, is further amended by striking "hiring," and inserting "hiring, employing," each place it appears.

   Inserted: (b) Employment Eligibility Verification for Previously Hired Individuals.--Section 274A(b) of such Act (8 U.S.C. 1324a(b)), as amended by section 311(a), is amended by adding at the end the following new paragraph:

   Inserted: "(8) Use of employment eligibility verification system for previously hired individuals.--

   Inserted: "(A) On a voluntary basis.--Beginning on the date that is 2 years after the date of the enactment of the Employment Security Act of 2006 and until the date specified in subparagraph (B)(iii), a person or entity may make an inquiry, as provided in paragraph (7), using the verification system to seek verification of the identity and employment eligibility of any individual employed by the person or entity, as long as it is done on a nondiscriminatory basis.

   Inserted: "(B) On a mandatory basis.--

   Inserted: "(i) Initial compliance.--A person or entity described in clause (ii) shall make an inquiry as provided in paragraph (7), using the verification system to seek verification of the identity and employment eligibility of all individuals employed by the person or entity who have not been previously subject to an inquiry by the person or entity by the date 3 years after the date of the enactment of the Employment Security Act of 2006.

   Inserted: "(ii) Person or entity covered.--A person or entity is described in this clause if it is a Federal, State, or local governmental body (including the Armed Forces of the United States), or if it employs individuals working in a location that is a Federal, State, or local government building, a military base, a nuclear energy site, a weapon site, an airport, or that contains critical infrastructure (as defined in section 1016(e) of the Critical Infrastructure Protection Act of 2001 (42 U.S.C. 5195c(e))), but only to the extent of such individuals.

   Inserted: "(iii) Subsequent compliance.--All persons and entities other than a person or entity described in clause (ii) shall make an inquiry, as provided in paragraph (7), using the verification system to seek verification of the identity and employment eligibility of all individuals employed by the person or entity that have not been previously subject to an inquiry by the person or entity by the date 6 years after the date of the enactment of the Employment Security Act of 2006.".

   Inserted: SEC. 314. EXTENSION OF PREEMPTION TO REQUIRED CONSTRUCTION OF DAY LABORER SHELTERS.

   Inserted: Paragraph 274A(h)(2) of the Immigration and Nationality Act (8 U.S.C. 1324a(h)(2)) is amended--

   Inserted: (1) by striking "imposing", and inserting a dash and "(A) imposing";

   Inserted: (2) by striking the period at the end and inserting "; and"; and

   Inserted: (3) by adding at the end the following:

   Inserted: "(B) Requiring as a condition of conducting, continuing, or expanding a business that a business entity--

   "(i) provide, build, fund, or maintain a shelter, structure, or designated area for use by day laborers at or near its place of business; or

   "(ii) take other steps that facilitate the employment of day laborers by others.[inserted: ".]

   Struck: "(j) 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(w).

   Struck: "(k) Definitions.--In this section:

   Struck: "(1) Employer.--The term 'employer' means any person or entity, including any entity of the Government of the United States, hiring, recruiting, or referring an individual for employment in the United States.

   Struck: "(2) Secretary.--Except as otherwise provided, the term 'Secretary' means the Secretary of Homeland Security.

   Show 83 more struck paragraphsShow less

   Struck: "(3) 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--

   Struck: "(A) an alien lawfully admitted for permanent residence; or

   Struck: "(B) authorized to be so employed by this Act or by the Secretary.".

   Struck: (b) Conforming Amendments.--

   Struck: (1) Amendments.--

   Struck: (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.

   Struck: (B) Repeal of reporting requirements.--

   Struck: (i) Report on earnings of aliens not authorized to work.--Subsection (c) of section 290 (8 U.S.C. 1360) is repealed.

   Struck: (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.

   Struck: (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).

   Struck: (c) Technical Amendments.--

   Struck: (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".

   Struck: (2) Document requirements.--Section 274B (8 U.S.C. 1324b) is amended--

   Struck: (A) in subsections (a)(6) and (g)(2)(B), by striking "274A(b)" and inserting "274A(d)"; and

   Struck: (B) in subsection (g)(2)(B)(ii), by striking "274A(b)(5)" and inserting "274A(d)".

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

   Struck: "(I)(i) The Commissioner of Social Security shall 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 paragraphs (2)(B) and (2)(C) of such subsection--

   Struck: "(I) a determination of whether the name 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 in order to confirm the validity of the information provided;

   Struck: "(II) a determination of whether such social security account number was issued to such individual;

   Struck: "(III) determination of the citizenship status associated with such name and social security account number, according to the records maintained by the Commissioner;

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

   Struck: "(V) a determination of whether the name and number is blocked in accordance with clause (ii); and

   Struck: "(VI) a confirmation notice or a nonconfirmation notice described in such paragraph (2)(B) or (2)(C), in a manner that ensures that other information maintained by the Commissioner is not disclosed or released to employers through the System.

   Struck: "(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.

   Struck: "(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, 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.".

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

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

   Struck: "(21) Disclosure of certain taxpayer identity information by social security administration to department of homeland security.--

   Struck: "(A) In general.--From taxpayer identity information which has been disclosed to the Social Security Administration and upon written request by the Secretary of Homeland Security, the Commissioner of Social Security shall disclose directly to officers, employees, and contractors of the Department of Homeland Security the following information:

   Struck: "(i) Disclosure of employer no match notices.--Taxpayer identity information of each person who has filed an information return required by reason of section 6051 who has received written notice from the Commissioner of Social Security during calendar year 2005, 2006, or 2007 that such person reported remuneration on such a return--

   Struck: "(I) with more than 100 names and taxpayer identifying numbers of employees (within the meaning of such section) that did not match the records maintained by the Commissioner of Social Security, or

   Struck: "(II) with more than 10 names of employees (within the meaning of such section) with the same taxpayer identifying number.

   Struck: "(ii) Disclosure of information regarding use of duplicate employee taxpayer identifying information.--Taxpayer identity information of each person who has filed an information return required by reason of section 6051 which the Commissioner of Social Security has reason to believe is the result of identity fraud due to the use by multiple persons filing such returns of the same taxpayer identifying number (assigned under section 6109) of an employee (within the meaning of section 6051).

   Struck: "(iii) Disclosure of information regarding nonparticipating employers.--Taxpayer identity information of each person who has filed an information return required by reason of section 6051 and for which the Commissioner of Social Security has reason to believe is not recorded as participating 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').

   Struck: "(iv) Disclosure of information regarding new employees of nonparticipating employers.-- Upon certification by the Secretary of Homeland Security that each person identified by such request based on the records of the Department of Homeland Security is not recorded as participating in the System, taxpayer identity information of all employees (within the meaning of section 6051) of such person hired after the date which such person is required to participate in the System under section 274A(d)(3)(B) of the Immigration and Nationality Act.

   Struck: "(v) Disclosure of information regarding employees of certain designated employers.-- Upon certification by the Secretary of Homeland Security that each person identified by such request based on the records of the Department of Homeland Security is designated by the Secretary of Homeland Security under section 274A(d)(3)(A) of the Immigration and Nationality Act or is required by the Secretary of Homeland Security to participate in the System under section 274A(d)(4)(B) of such Act, taxpayer identity information of all employees (within the meaning of section 6051) of such person.

   Struck: "(vi) Disclosure of new hire taxpayer identity information.--Taxpayer identity information of each person participating in the System and taxpayer identity information of all employees (within the meaning of section 6051) of such person hired during the period beginning with the later of--

   Struck: "(I) the earlier of the date such person volunteers to participate in the System or the date such person is required to participate in the System, or

   Struck: "(II) the date of the request immediately preceding the most recent request under this clause.

   Struck: "(B) Restriction on disclosure.--The Commissioner of Social Security shall disclose taxpayer identity information under subparagraph (A) only for purposes of, and to the extent necessary in--

   Struck: "(i) establishing and enforcing employer participation in the System,

   Struck: "(ii) carrying out, including through civil administrative and civil judicial proceedings, of sections 212, 217, 235, 237, 238, 274A, and 274C of the Immigration and Nationality Act, and

   Struck: "(iii) the civil operation of the Alien Terrorist Removal Court.

   Struck: "(C) Reimbursement.--The Commissioner of Social Security shall prescribe a reasonable fee schedule for furnishing taxpayer identity information under this paragraph and collect such fees in advance from the Secretary of Homeland Security.

   Struck: "(D) Termination.--This paragraph shall not apply to any request made after the date which is 3 years after the date of the enactment of this paragraph.".

   Struck: (2) Compliance by dhs contractors with confidentiality safeguards.--

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

   Struck: "(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--

   Struck: "(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,

   Struck: "(B) agrees to conduct an on-site review every 3 years (mid-point review in the case of contracts or agreements of less than 1 year in duration) of each contractor to determine compliance with such requirements,

   Struck: "(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

   Struck: "(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.".

   Struck: (3) Conforming amendments.--

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

   Struck: (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).".

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

   Struck: (i) by striking "or (17)" both places it appears and inserting "(17), or (21)", and

   Struck: (ii) by striking "or (20)" each place it appears and inserting "(20), or (21)".

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

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

   Struck: (f) Authorization of Appropriations.--

   Struck: (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.

   Struck: (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 the Secretary of Homeland Security has provided, in advance, funds 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.

   Struck: (g) Effective Dates.--

   Struck: (1) In general.--The amendments made by subsections (a), (b), (c), and (d) shall take effect on the date that is 180 days after the date of the enactment of this Act.

   Struck: (2) Subsection (e).--

   Struck: (A) In general.--The amendments made by subsection (e) shall apply to disclosures made after the date of the enactment of this Act.

   Struck: (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 2007.

   Struck: SEC. 302. EMPLOYER COMPLIANCE FUND.

   Struck: Section 286 (8 U.S.C. 1356) is amended by adding at the end the following new subsection:

   Struck: "(w) Employer Compliance Fund.--

   Struck: "(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').

   Struck: "(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.

   Struck: "(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.

   Struck: "(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.".

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

   Struck: (a) Worksite Enforcement.--

   Struck: (1) Increase in number of investigators.--The Secretary shall, subject to the availability of appropriations for such purpose, annually increase, by not less than 2,000, the number of positions for investigators dedicated to enforcing compliance with sections 274 and 274A of the Immigration and Nationality Act (8 U.S.C. 1324, and 1324a) during the 5-year period beginning on the date of the enactment of this Act.

   Struck: (2) Use of enforcement personnel.--The Secretary shall ensure that not less than 20 percent of all the hours expended by personnel of the Bureau of Immigration and Customs Enforcement of the Department to enforce the immigration and customs laws shall be used to enforce compliance with section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a), as amended by section 301(a).

   Struck: (b) Fraud Detection.--The Secretary shall, subject to the availability of appropriations for such purpose, increase by not less than 1,000 the number of positions for agents of the Bureau of Immigration and Customs Enforcement dedicated to immigration fraud detection during the 5-year period beginning on the date of the enactment of this Act.

   Struck: (c) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary for each of the fiscal years 2007 through 2011 such sums as may be necessary to carry out this section.

   Struck: SEC. 304. CLARIFICATION OF INELIGIBILITY FOR MISREPRESENTATION.

   Struck: 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".

   Inserted: SEC. 315. BASIC PILOT PROGRAM.

   Inserted: Section 401(b) of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended by striking "at the end of the 11-year period beginning on the first day the pilot program is in effect" and inserting "2 years after the date of the enactment of the Employment Security Act of 2006".

   Inserted: SEC. 316. PROTECTION FOR UNITED STATES WORKERS AND INDIVIDUALS REPORTING IMMIGRATION LAW VIOLATIONS.

   Inserted: Section 274B(a) of the Immigration and Nationality Act (8 U.S.C. 1324b(a)) is amended by adding at the end the following:

   Inserted: "(7) Protection of right to report.--Notwithstanding any other provision of law, the rights protected by this subsection include the right of any individual to report a violation or suspected violation of any immigration law to the Secretary of Homeland Security or a law enforcement agency.".

   Inserted: SEC. 317. PENALTIES.

   Inserted: (a) Civil and Criminal Penalties.--Section 274A(e)(4) of the Immigration and Nationality Act (8 U.S.C. 1324a(e)(4)) is amended to read:

   Inserted: "(4) Civil and criminal penalties.--

   Inserted: "(A) Knowingly hiring unauthorized aliens.--Any person or entity that violates subsection (a)(1)(A) shall--

   Inserted: "(i) in the case of a first offense, be fined $10,000 for each unauthorized alien;

   Inserted: "(ii) (in the case of a second offense, be fined $50,000 for each unauthorized alien; and

   Inserted: "(iii) in the case of a third or subsequent offense, be fined in accordance with title 18, United States Code, imprisoned not less than 1 year and not more than 3 years, or both.

   Show 119 more inserted paragraphsShow less

   Inserted: "(B) Continuing employment of unauthorized aliens.--Any person or entity that violates subsection (a)(2) shall be fined in accordance of title 18, United States Code, imprisoned not less than 1 year and not more than 3 years, or both.".

   Inserted: (b) Paperwork or Verification Violations.--Section 274A(e)(5) of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended to read:

   Inserted: "(5) Paperwork or verification violations.--Any person or entity that violates subsection (a)(1)(B) shall--

   Inserted: "(A) in the case of a first offense, be fined $1,000 for each violation;

   Inserted: "(B) in the case of a second violation, be fined $5,000 for each violation; and

   Inserted: "(C) in the case of a third and subsequent violation, be fined $10,000 for each such violation.".

   Inserted: (c) Government Contracts.--Section 274A(e) of the Immigration and Nationality Act (8 U.S.C. 1324a(e)) is amended by adding at the end the following new paragraph:

   Inserted: "(10) Government contracts.--

   Inserted: "(A) Employers.--

   Inserted: "(i) In general.--If the Secretary of Homeland Secretary determines that a person or entity that employs an alien is a repeat violator of this section or is convicted of a crime under this section, such person or entity shall be debarred from the receipt of a Federal contract, grant, or cooperative agreement for a period of 2 years. The Secretary of Homeland Security 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 2-year period.

   Inserted: "(ii) Waiver.--The Administrator of General Services, in consultation with the Secretary of Homeland Security and Attorney General, may waive the application of this subparagraph or may limit the duration or scope of the debarment imposed under it.

   Inserted: "(iii) Prohibition on judicial review.--Any proposed debarment that is predicated on an administrative determination of liability for civil penalty by the Secretary of Homeland Security or the Attorney General may not be reviewable in any debarment proceeding. The decision of whether to debar or take alternation may not be reviewed by any court.

   Inserted: "(B) Contractors and recipients.--

   Inserted: "(i) In general.--If the Secretary of Homeland Security determines that a person or entity that employs an alien and holds a Federal contract, grant, or cooperative agreement is a repeat violator of this section or is convicted of a crime under this section, such person or entity shall be debarred from the receipt of a Federal contract, grant, or cooperative agreement for a period of 2 years. Prior to debarring the employer, the Secretary of Homeland Security, in cooperation with the Administrator of General Services, shall advise the head of each agency holding such a contract, grant, or cooperative agreement with person or entity of the Government's intention to debar the employer from the receipt of new Federal contracts, grants, or cooperative agreements for a period of 2 years.

   Inserted: "(ii) Waiver.--After consideration of the views of the head of each such agency, the Secretary of Homeland Security may, in lieu of debarring the employer from the receipt of new a Federal contract, grant, or cooperative agreement for a period of 2 years, waive application of this subparagraph, 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.

   Inserted: "(iii) Prohibition on review.--Any proposed debarment that is predicated on an administrative determination of liability for civil penalty by the Secretary of Homeland Security or the Attorney General may not be reviewable in any debarment proceeding. The decision of whether to debar or take alternation may not be reviewed by any court.

   Inserted: "(C) Cause for suspension.--Indictments for violations of this section or adequate evidence of actions that could form the basis for debarment under this paragraph shall be considered a cause for suspension under the procedures and standards for suspension prescribed by the Federal Acquisition Regulation.

   Inserted: "(D) Applicability.--The provisions of this paragraph shall apply to any Federal contract, grant, or cooperative agreement that is effective on or after the date of the enactment of the Employment Security Act of 2006.".

   Inserted: (d) Criminal Penalties for Pattern or Practice Violations.--Section 274A(f)(1) of the Immigration and Nationality Act (8 U.S.C. 1324a(f)(1)) is amended to read as follows:

   Inserted: "(1) Criminal penalty.--Any person or entity engages in a pattern or practice of violations of subsection (a)(1) or (2) shall be fined not more than $50,000 for each unauthorized alien with respect to which such a violation occurs, imprisoned for not less than 3 years and not more than 5 years, or both, notwithstanding the provisions of any other Federal law relating to fine levels. The amount of the gross proceeds of such violation, and any property traceable to such proceeds, shall be seized and subject to forfeiture under title 18, United States Code.".

   Inserted: (e) Authority of the Secretary of Homeland Security.--Subsections (b)(2) and (f)(2) of section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) are amended by striking "Attorney General" each place it appears and inserting "Secretary of Homeland Security".

   Inserted: Subtitle C--Work Eligibility Verification Reform in the Social Security Administration SEC. 321. VERIFICATION RESPONSIBILITIES OF THE COMMISSIONER OF SOCIAL SECURITY.

   Inserted: 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, however 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.

   Inserted: SEC. 322. NOTIFICATION BY COMMISSIONER OF FAILURE TO CORRECT SOCIAL SECURITY INFORMATION.

   Inserted: The Commissioner of Social Security shall promptly notify the Secretary of Homeland Security of the failure of any individual to provide, upon any request of the Commissioner made pursuant to section 205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)), evidence necessary, under such section to--

   Inserted: (1) establish the age, citizenship, immigration or work eligibility status of the individual;

   Inserted: (2) establish such individual's true identity; or

   Inserted: (3) determine which (if any) social security account number has previously been assigned to such individual.

   Inserted: SEC. 323. RESTRICTION ON ACCESS AND USE.

   Inserted: 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 subparagraph:

   Inserted: "(I)(i) Access to any information contained in the Employment Eligibility Verification System established section 274A(b)(7) of the Immigration and Nationality Act, shall be prohibited for any purpose other than the administration or enforcement of Federal immigration, social security, and tax laws, any provision of title 18, United States Code, or as otherwise authorized by Federal law.

   Inserted: "(ii) No person or entity may use the information in such Employment Eligibility Verification System for any purpose other than as permitted by Federal law.

   Inserted: "(iii) Whoever knowingly uses, discloses, publishes, or permits the unauthorized use of information in such Employment Eligibility Verification System in violation of clause (i) or (ii) shall be fined not more than $10,000 per individual injured by such violation. The Commissioner of Social Security shall establish procedure to ensure that 60 percent of any fine imposed under this clause is awarded to the individual injured by such violation.".

   Inserted: SEC. 324. SHARING OF INFORMATION WITH THE COMMISSIONER OF INTERNAL REVENUE SERVICE.

   Inserted: Section 205(c)(2)(H) of the Social Security Act (42 U.S.C. 405(c)(2)(H)) is amended to read as follows:

   Inserted: "(H) The Commissioner of Social Security shall share with the Secretary of the Treasury--

   Inserted: "(i) the information obtained by the Commissioner pursuant to the second sentence of subparagraph (B)(ii) and to subparagraph (C)(ii) for the purpose of administering those sections of the Internal Revenue Code of 1986 that grant tax benefits based on support or residence of children; and

   Inserted: "(ii) information relating to the detection of wages or income from self-employment of unauthorized aliens (as defined by section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a)), or the investigation of false statements or fraud by such persons incident to the administration of immigration, social security, or tax laws of the United States.

   Inserted: Information disclosed under this subparagraph shall be solely for the use of the officers and employees to whom such information is disclosed in such response or investigation.".

   Inserted: SEC. 325. SHARING OF INFORMATION WITH THE SECRETARY OF HOMELAND SECURITY.

   Inserted: (a) Amendment to the Social Security Act.--Section 205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)), as amended by section 423, is amended by adding at the end the following new subparagraph:

   Inserted: "(J) Upon the issuance of a social security account number under subparagraph (B) to any individual or the issuance of a Social Security card under subparagraph (G) to any individual, the Commissioner of social security shall transmit to the Secretary of Homeland Security such information received by the Commissioner in the individual's application for such number or such card as the Secretary of Homeland Security determines necessary and appropriate for administration of the immigration laws of the United States.".

   Inserted: (b) Amendments to the Immigration and Nationality Act.--

   Inserted: (1) Forms and procedures.--Section 264(f) of the Immigration and Nationality Act (8 U.S.C. 1304(f)) is amended to read as follows:

   Inserted: "(f) Notwithstanding any other provision of law (including section 6103 of the Internal Revenue Code of 1986), the Secretary of Homeland Security, Secretary of Labor and the Attorney General are authorized to require any individual to provide the individual's own social security account number for purposes of inclusion in any record of the individual maintained by any of any such Secretary or the Attorney General, or for inclusion on any application, document, or form provided under or required by the immigration laws.".

   Inserted: (2) Central file.--Section 290(c) of the Immigration and Nationality Act (8 U.S.C. 1360(c)) is amended by striking paragraph (2) and inserting the following new paragraphs:

   Inserted: "(2) Notwithstanding any other provision of law (including section 6103 of the Internal Revenue Code of 1986) earnings are reported on or after January 1, 1997, to the Commissioner of Social Security on a social security account number issued to an alien who is not authorized to work in the United States, the Commissioner shall provide the Secretary of Homeland Security with information regarding the name, date of birth, and address of the alien, the name and address of the person reporting the earnings, and the amount of the earnings. The information shall be provided in an electronic form agreed upon by the Commissioner and the Secretary.

   Inserted: "(3) Notwithstanding any other provision of law (including section 6103 of the Internal Revenue Code of 1986), the Commissioner of Social Security shall provide the Secretary of Homeland Security information regarding the name, date of birth, and address of an individual, as well as the name and address of the person reporting the earnings, in any case where a social security account number does not match the name in the Social Security Administration record. The information shall be provided in an electronic form agreed upon by the Commissioner and the Secretary for the sole purpose of enforcing the immigration laws. The Secretary, in consultation with the Commissioner, may limit or modify these requirements as appropriate to identify those cases posing the highest possibility of fraudulent use of social security account numbers related to violation of the immigration laws.

   Inserted: "(4) Notwithstanding any other provision of law (including section 6103 of the Internal Revenue Code of 1986), the Commissioner of Social Security shall provide the Secretary of Homeland Security information regarding the name, date of birth, and address of an individual, as well as the name and address of the person reporting the earnings, in any case where the individual has more than one person reporting earnings for the individual during a single tax year and where a social security number was used with multiple names. The information shall be provided in an electronic form agreed upon by the Commissioner and the Secretary for the sole purpose of enforcing the immigration laws. The Secretary, in consultation with the Commissioner, may limit or modify these requirements as appropriate to identify those cases posing the highest possibility of fraudulent use of social security account numbers related to violation of the immigration laws.

   Inserted: "(5)(A) The Commissioner of Social Security shall perform, at the request of the Secretary of Homeland Security, any search or manipulation of records held by the Commissioner, so long as the Secretary certifies that the purpose of the search or manipulation is to obtain information likely to assist in identifying individuals (and their employers) who--

   Inserted: "(i) are using false names or social security numbers; who are sharing among multiple individuals a single valid name and social security number;

   Inserted: "(ii) are using the social security number of persons who are deceased, too young to work or not authorized to work; or

   Inserted: "(iii) are otherwise engaged in a violation of the immigration laws.

   Inserted: "(B) The Commissioner shall provide the results of such search or manipulation to the Secretary, notwithstanding any other provision of law (including section 6103 of the Internal Revenue Code of 1986). The Secretary shall transfer to the Commissioner the funds necessary to cover the additional cost directly incurred by the Commissioner in carrying out the searches or manipulations reported by the Secretary.".

   Inserted: Subtitle D--Sharing of Information SEC. 331. SHARING OF INFORMATION WITH THE SECRETARY OF HOMELAND SECURITY AND THE COMMISSIONER OF SOCIAL SECURITY.

   Inserted: (a) Amendment to the Internal Revenue Code of 1986.--Section 6103(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

   Inserted: "(9) Disclosure of information relating to violations of federal immigration law.--

   Inserted: "(A) Upon receipt by the Secretary of the Treasury of a written request, by the Secretary of Homeland Security or Commissioner of Social Security, the Secretary of the Treasury shall disclose return information to officers and employees of the Department of Homeland Security and the Social Security Administration who are personally and directly engaged in--

   Inserted: "(i) preparation for any judicial or administrative civil or criminal enforcement proceeding against an alien under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), other than the adjudication of any application for a change in immigration status or other benefit by such alien, or

   Inserted: "(ii) preparation for a civil or criminal enforcement proceeding against a citizen or national of the United States under section 274, 274A, or 274C of the Immigration and Nationality Act (8 U.S.C. 1324, 1324a, or 1324c), or

   Inserted: "(iii) any investigation which may result in the proceedings enumerated in clauses (i) and (ii) above.

   Inserted: "(B) Limitation on use and retention of tax return information.--

   Inserted: "(i) Information disclosed under this paragraph shall be solely for the use of the officers and employees to whom such information is disclosed in such response or investigation.

   Inserted: "(ii) Should the proceeding for which such information has been disclosed not commence within 3 years after the date on which the information has been disclosed by the Secretary, the information shall be returned to the Secretary in its entirety, and shall not be retained in any form by the requestor, unless the taxpayer is notified in writing as to the information that has been retained.".

   Inserted: (b) Amendment to the Immigration and Nationality Act.--Section 274A of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended by adding at the end the following new subsection:

   Inserted: "(i) No-Match Notice.--

   Inserted: "(1) No-match notice defined.--In this subsection, the term 'no-match notice' means a written notice from the Commissioner of Social Security to an employer reporting earnings on a Form W-2 that an employee name or corresponding social security account number fail to match records maintained by the Commissioner.

   Inserted: "(2) Provision of information.--

   Inserted: "(A) Requirement to provide.--Notwithstanding any other provision of law (including section 6103 of the Internal Revenue Code of 1986), the Commissioner shall provide the Secretary of Homeland Security with information relating to employers who have received no-match notices and, upon request, with such additional information as the Secretary certifies is necessary to administer or enforce the immigration laws.

   Inserted: "(B) Form of information.--The information shall be provided in an electronic form agreed upon by the Commissioner and the Secretary.

   Inserted: "(C) Use of information.--A no-match notice received by the Secretary from the Commissioner may be used as evidence in any civil or criminal proceeding.

   Inserted: "(3) Other authorities.--

   Inserted: "(A) Verification requirement.--The Secretary, in consultation with the Commissioner, is authorized to establish by regulation requirements for verifying the identity and work authorization of an employee who is the subject of a no-match notice.

   Inserted: "(B) Penalties.--The Secretary is authorized to establish by regulation penalties for failure to comply with this subsection.

   Inserted: "(C) Limitation on authorities.--This authority in this subsection is provided in aid of the Secretary's authority to administer and enforce the immigration laws, and nothing in this subsection shall be construed to authorize the Secretary to establish any regulation regarding the administration or enforcement of laws otherwise relating to taxation or the Social Security system.".

   Inserted: Subtitle E--Identification Document Integrity SEC. 341. CONSULAR IDENTIFICATION DOCUMENTS.

   Inserted: (a) Acceptance of Foreign Identification Documents.--

   Inserted: (1) In general.--Subject to paragraph (3), for purposes of personal identification, no agency, commission, entity, or agent of the executive or legislative branches of the Federal Government may accept, acknowledge, recognize, or rely on any identification document issued by the government of a foreign country, unless otherwise mandated by Federal law.

   Inserted: (2) Agent defined.--In this section, the term "agent" shall include the following:

   Inserted: (A) A Federal contractor or grantee.

   Inserted: (B) An institution or entity exempted from Federal income taxation under the Internal Revenue Code of 1986.

   Inserted: (C) A financial institution required to ask for identification under section 5318(l) of title 31, United States Code.

   Inserted: (3) Exceptions.--

   Inserted: (A) In general.--An individual who is not a citizen or national of the United States may present for purposes of personal identification an official identification document issued by the government of a foreign country or other foreign identification document recognized pursuant to a treaty entered into by the United States, if--

   Inserted: (i) such individual simultaneously presents valid verifiable documentation of lawful presence in the United States issued by the appropriate agency of the Federal Government;

   Inserted: (ii) reporting a violation of law or seeking government assistance in an emergency;

   Inserted: (iii) the document presented is a passport issued to a citizen or national of a country that participates in the visa waiver program established under section 217 of the Immigration and Nationality Act (8 U.S.C. 1187) by the government of such country; or

   Inserted: (iv) such use is expressly permitted another provision of Federal law.

   Inserted: (B) Nonapplication.--The provisions of paragraph (1) shall not apply to--

   Inserted: (i) inspections of alien applicants for admission to the United States; or

   Inserted: (ii) verification of personal identification of persons outside the United States.

   Inserted: (4) Listing of acceptable documents.--The Secretary of Homeland Security shall issue and maintain an updated public listing, compiled in consultation with the Secretary of State, and including sample facsimiles, of all acceptable Federal documents that satisfy the requirements of paragraph (3)(A).

   Inserted: (b) Establishment of Personal Identity.--Section 274C(a) of the Immigration and Nationality Act (8 U.S.C. 1324c(a)) is amended--

   Inserted: (1) in paragraph (5), by striking "or" at the end;

   Inserted: (2) in paragraph (6), by striking the period at the end and inserting a comma and "or"; and

   Inserted: (3) by inserting after paragraph (6) the following new paragraph:

   Inserted: "(7) to use to establish personal identity, before any agent of the Federal Government, or before any agency of the Federal Government or of a State or any political subdivision therein, a travel or identification document issued by a foreign government that is not accepted by the Secretary of Homeland Security to establish personal identity for purposes of admission to the United States at a port of entry, except--

   Inserted: "(A) in the case of a person who is not a citizen of the United States--

   Inserted: "(i) the person simultaneously presents valid verifiable documentation of lawful presence in the United States issued by an agency of the Federal Government;

   Inserted: "(ii) the person is reporting a violation of law or seeking government assistance in an emergency; or

   Inserted: "(iii) such use is expressly permitted by Federal law.".

   Inserted: SEC. 342. MACHINE-READABLE TAMPER-RESISTANT IMMIGRATION DOCUMENTS.

   Inserted: (a) In General.--Section 303 of the Enhanced Border Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1732) is amended--

   Inserted: (1) in the heading, by striking "ENTRY AND EXIT DOCUMENTS" and inserting "TRAVEL, ENTRY, AND EVIDENCE OF STATUS DOCUMENTS";

   Inserted: (2) in subsection (b)(1)--

   Inserted: (A) by striking "Not later than October 26, 2004, the Attorney General" and inserting "The Secretary of Homeland Security"; and

   Inserted: (B) by striking "visas and" each place it appears and inserting "visas, evidence of status, and";

   Inserted: (3) by striking subsection (d) and inserting the following:

   Inserted: "(d) Other Documents.--Not later than October 26, 2007, every document, other than an interim document, issued by the Secretary of Homeland Security, which may be used as evidence of immigrant, nonimmigrant, parole, asylee, or refugee status, shall be machine-readable, tamper-resistant, and incorporate a biometric identifier to allow the Secretary of Homeland Security to electronically verify the identity and status of the alien.

   Inserted: "(e) Funding.--

   Inserted: "(1) Authorization of appropriation.--There are authorized to be appropriated such sums as may be necessary to carry out this section, including reimbursements to international and domestic standards organizations.

   Inserted: "(2) Fee.--During any fiscal year for which appropriations sufficient to issue documents described in subsection (d) are not made pursuant to law, the Secretary of Homeland Security is authorized to implement and collect a fee sufficient to cover the direct cost of issuance of such document from the alien to whom the document will be issued.

   Inserted: "(3) Exception.--The fee described in paragraph (2) may not be levied against nationals of a foreign country if the Secretary of Homeland has determined that the total estimated population of such country who are unlawfully present in the United States does not exceed 3,000 aliens.".

   Inserted: (b) Technical Amendment.--The table of contents in section 1(b) of the Enhanced Border Security and Visa Entry Reform Act of 2002 (Public Law 107-173; 116 Stat. 543) is amended by striking the item relating to section 303 and inserting the following:

   Inserted: "Sec. 303. Machine-readable, tamper-resistant travel, entry, and evidence of status documents.".

   Inserted: Subtitle F--Effective Date; Authorization of Appropriations SEC. 351. EFFECTIVE DATE.

   Inserted: Except as otherwise specially provided in this Act, the provisions of this title shall take effect not later than 45 days after the date of the enactment of this Act.

   Inserted: SEC. 352. AUTHORIZATION OF APPROPRIATIONS.

   Inserted: In addition to amounts otherwise authorized to be appropriated, there are authorized to be appropriated such sums as may be necessary for each of fiscal years 2007 through 2011 to carry out this title.

   Original wording

   Strike title III and insert the following:

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As printed