S.Amdt. 165

TEXT OF AMENDMENTS

SA 111. Mr. SUNUNU submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PUBLIC HOUSING AGENCY PLANS FOR CERTAIN QUALIFIED
PUBLIC HOUSING AGENCIES.

(a) Short Title.--This section may be cited as the ``Small
Public Housing Authorities Paperwork Reduction Act''.
(b) In General.--Section 5A(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437c-1(b)) is amended by adding at
the end the following:
``(3) Exemption of certain phas from filing requirement.--
``(A) In general.--Notwithstanding paragraph (1) or any
other provision of this Act--
``(i) the requirement under paragraph (1) shall not apply
to any qualified public housing agency; and
``(ii) except as provided in subsection (e)(4)(B), any
reference in this section or any other provision of law to a
`public housing agency' shall not be considered to refer to
any qualified public housing agency, to the extent such
reference applies to the requirement to submit an annual
public housing agency plan under this subsection.
``(B) Civil rights certification.--Notwithstanding that
qualified public housing agencies are exempt under
subparagraph (A) from the requirement under this section to
prepare and submit an annual public housing plan, each
qualified public housing agency shall, on an annual basis,
make the certification described in paragraph (16) of
subsection (d), except that for purposes of such qualified
public housing agencies, such paragraph shall be applied by
substituting `the public housing program of the agency' for
`the public housing agency plan'.
``(C) Definition.--For purposes of this section, the term
`qualified public housing agency' means a public housing
agency that--
``(i) administers--

``(I) 500 or fewer public housing dwelling units; or
``(II) any number of vouchers under section 8(o) of this
Act; and

``(ii) is not designated under section 6(j)(2) as a
troubled public housing agency.''.
(c) Resident Participation.--Section 5A of the United
States Housing Act of 1937 (42 U.S.C. 1437c-1) is amended--
(1) in subsection (e), by inserting after paragraph (3) the
following:
``(4) Qualified public housing agencies.--
``(A) In general.--Except as provided in subparagraph (B),
nothing in this section may be construed to exempt a
qualified public housing agency from the requirement under
paragraph (1) to establish 1 or more resident advisory
boards. Notwithstanding that qualified public housing
agencies are exempt under subsection (b)(3)(A) from the
requirement under this section to prepare and submit an
annual public housing plan, each qualified public housing
agency shall consult with, and consider the recommendations
of the resident advisory boards for the agency, at the annual
public hearing required under subsection (f)(5), regarding
any changes to the goals, objectives, and policies of that
agency.
``(B) Applicability of waiver authority.--Paragraph (3)
shall apply to qualified public housing agencies, except that
for purposes of such qualified public housing agencies,
subparagraph (B) of such paragraph shall be applied by
substituting `the functions described in the second sentence
of paragraph (4)(A)' for `the functions described in
paragraph (2)'.
``(f) Public Hearings.--''; and
(2) in subsection (f) (as so designated by the amendment
made by paragraph (1)), by adding at the end the following:
``(5) Qualified public housing agencies.--
``(A) Requirement.--Notwithstanding that qualified public
housing agencies are exempt under subsection (b)(3)(A) from
the requirement under this section to conduct a public
hearing regarding the annual public housing plan of the
agency, each qualified public housing agency shall annually
conduct a public hearing--
``(i) to discuss any changes to the goals, objectives, and
policies of the agency; and
``(ii) to invite public comment regarding such changes.
``(B) Availability of information and notice.--Not later
than 45 days before the date of any hearing described in
subparagraph (A), a qualified public housing agency shall--
``(i) make all information relevant to the hearing and any
determinations of the agency regarding changes to the goals,
objectives, and policies of the agency to be considered at
the hearing available for inspection by the public at the
principal office of the public housing agency during normal
business hours; and
``(ii) publish a notice informing the public that--

``(I) the information is available as required under clause
(i); and
``(II) a public hearing under subparagraph (A) will be
conducted.''

______

SA 112. Mr. SUNUNU submitted an amendment intended to be proposed to
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; as follows:

At the appropriate place, insert the following:

SEC. __. RENEWAL GRANTS FOR WOMEN'S BUSINESS CENTERS.

Section 29 of the Small Business Act (15 U.S.C. 656) is
amended by adding at the end the following:
``(m) Continued Funding for Centers.--
``(1) In general.--A nonprofit organization described in
paragraph (2) shall be eligible to receive, subject to
paragraph (3), a 3-year grant under this subsection.
``(2) Applicability.--A nonprofit organization described in
this paragraph is a nonprofit organization that--
``(A) has received funding under subsections (b) and (l);
and
``(B) is not eligible under the programs under such
subsections for the first fiscal year after the end of the
period of financial assistance under subsection (l).
``(3) Application and approval criteria.--
``(A) Criteria.--The Administrator shall develop and
publish criteria for the consideration and approval of
applications by nonprofit organizations under this
subsection.
``(B) Notification.--Not later than 60 days after the date
of the deadline to submit applications for each fiscal year,
the Administrator shall approve or deny any application under
this subsection and notify the applicant for each such
application.
``(4) Award of grants.--
``(A) In general.--Subject to the availability of
appropriations, the Administrator shall make a grant for the
Federal share of the cost of activities described in the
application to each applicant approved under this subsection.
``(B) Amount.--A grant under this subsection shall be for
not less than $90,000 and not more than $150,000, for each
year of that grant.
``(C) Federal share.--The Federal share under this
subsection shall be not more than 50 percent.
``(D) Priority.--In allocating funds made available for
grants under this section, the Administrator shall give
applications under this subsection priority over first-time
applications under subsection (b).
``(5) Renewal.--The Administrator may renew a grant under
this subsection for additional 3-year periods, if the
nonprofit organization submits an application for such
renewal at such time, in such manner, and accompanied by such
information as the Administrator may establish.''.
______

SA 113. Mr. SMITH submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PERMANENT EXTENSION OF CERTAIN EDUCATION-RELATED TAX
INCENTIVES.

(a) Repeal of Sunset on Affordable Education Provisions.--
Title IX of the Economic Growth and Tax Relief Reconciliation
Act of 2001 (relating to sunset of provisions of such Act)
shall not apply to title IV of such Act (relating to
affordable education provisions).
(b) Permanent Extension of Above-the-Line Deduction for
Certain Expenses of Elementary and Secondary School
Teachers.--Subparagraph (D) of section 62(a)(2) of the
Internal Revenue Code of 1986 is amended by striking ``In the
case of taxable years beginning during 2002, 2003, 2004,
2005, 2006, or 2007, the deductions'' and inserting ``The
deductions''.
______

SA 114. Mr. THUNE (for himself and Mr. Vitter) submitted an amendment

[[Page S926]]

intended to be proposed by him to the bill H.R. 2, to amend the Fair
Labor Standards Act of 1938 to provide for an increase in the Federal
minimum wage; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

TITLE __--SMALL BUSINESS HEALTH COVERAGE

SEC. _01. SHORT TITLE.

This title may be cited as the ``Small Business Health
Improvement Act of 2007''.

SEC. _02. RULES GOVERNING ASSOCIATION HEALTH PLANS.

(a) In General.--Subtitle B of title I of the Employee
Retirement Income Security Act of 1974 is amended by adding
after part 7 the following new part:

``PART 8--RULES GOVERNING ASSOCIATION HEALTH PLANS

``SEC. 801. ASSOCIATION HEALTH PLANS.

``(a) In General.--For purposes of this part, the term
`association health plan' means a group health plan whose
sponsor is (or is deemed under this part to be) described in
subsection (b).
``(b) Sponsorship.--The sponsor of a group health plan is
described in this subsection if such sponsor--
``(1) is organized and maintained in good faith, with a
constitution and bylaws specifically stating its purpose and
providing for periodic meetings on at least an annual basis,
as a bona fide trade association, a bona fide industry
association (including a rural electric cooperative
association or a rural telephone cooperative association), a
bona fide professional association, or a bona fide chamber of
commerce (or similar bona fide business association,
including a corporation or similar organization that operates
on a cooperative basis (within the meaning of section 1381 of
the Internal Revenue Code of 1986)), for substantial purposes
other than that of obtaining or providing medical care;
``(2) is established as a permanent entity which receives
the active support of its members and requires for membership
payment on a periodic basis of dues or payments necessary to
maintain eligibility for membership in the sponsor; and
``(3) does not condition membership, such dues or payments,
or coverage under the plan on the basis of health status-
related factors with respect to the employees of its members
(or affiliated members), or the dependents of such employees,
and does not condition such dues or payments on the basis of
group health plan participation.

Any sponsor consisting of an association of entities which
meet the requirements of paragraphs (1), (2), and (3) shall
be deemed to be a sponsor described in this subsection.

``SEC. 802. CERTIFICATION OF ASSOCIATION HEALTH PLANS.

``(a) In General.--The applicable authority shall prescribe
by regulation a procedure under which, subject to subsection
(b), the applicable authority shall certify association
health plans which apply for certification as meeting the
requirements of this part.
``(b) Standards.--Under the procedure prescribed pursuant
to subsection (a), in the case of an association health plan
that provides at least one benefit option which does not
consist of health insurance coverage, the applicable
authority shall certify such plan as meeting the requirements
of this part only if the applicable authority is satisfied
that the applicable requirements of this part are met (or,
upon the date on which the plan is to commence operations,
will be met) with respect to the plan.
``(c) Requirements Applicable to Certified Plans.--An
association health plan with respect to which certification
under this part is in effect shall meet the applicable
requirements of this part, effective on the date of
certification (or, if later, on the date on which the plan is
to commence operations).
``(d) Requirements for Continued Certification.--The
applicable authority may provide by regulation for continued
certification of association health plans under this part.
``(e) Class Certification for Fully Insured Plans.--The
applicable authority shall establish a class certification
procedure for association health plans under which all
benefits consist of health insurance coverage. Under such
procedure, the applicable authority shall provide for the
granting of certification under this part to the plans in
each class of such association health plans upon appropriate
filing under such procedure in connection with plans in such
class and payment of the prescribed fee under section 807(a).
``(f) Certification of Self-Insured Association Health
Plans.--An association health plan which offers one or more
benefit options which do not consist of health insurance
coverage may be certified under this part only if such plan
consists of any of the following:
``(1) a plan which offered such coverage on the date of the
enactment of the Small Business Health Improvement Act of
2007,
``(2) a plan under which the sponsor does not restrict
membership to one or more trades and businesses or industries
and whose eligible participating employers represent a broad
cross-section of trades and businesses or industries, or
``(3) a plan whose eligible participating employers
represent one or more trades or businesses, or one or more
industries, consisting of any of the following: agriculture;
equipment and automobile dealerships; barbering and
cosmetology; certified public accounting practices; child
care; construction; dance, theatrical and orchestra
productions; disinfecting and pest control; financial
services; fishing; foodservice establishments; hospitals;
labor organizations; logging; manufacturing (metals); mining;
medical and dental practices; medical laboratories;
professional consulting services; sanitary services;
transportation (local and freight); warehousing; wholesaling/
distributing; or any other trade or business or industry
which has been indicated as having average or above-average
risk or health claims experience by reason of State rate
filings, denials of coverage, proposed premium rate levels,
or other means demonstrated by such plan in accordance with
regulations.

``SEC. 803. REQUIREMENTS RELATING TO SPONSORS AND BOARDS OF
TRUSTEES.

``(a) Sponsor.--The requirements of this subsection are met
with respect to an association health plan if the sponsor has
met (or is deemed under this part to have met) the
requirements of section 801(b) for a continuous period of not
less than 3 years ending with the date of the application for
certification under this part.
``(b) Board of Trustees.--The requirements of this
subsection are met with respect to an association health plan
if the following requirements are met:
``(1) Fiscal control.--The plan is operated, pursuant to a
trust agreement, by a board of trustees which has complete
fiscal control over the plan and which is responsible for all
operations of the plan.
``(2) Rules of operation and financial controls.--The board
of trustees has in effect rules of operation and financial
controls, based on a 3-year plan of operation, adequate to
carry out the terms of the plan and to meet all requirements
of this title applicable to the plan.
``(3) Rules governing relationship to participating
employers and to contractors.--
``(A) Board membership.--
``(i) In general.--Except as provided in clauses (ii) and
(iii), the members of the board of trustees are individuals
selected from individuals who are the owners, officers,
directors, or employees of the participating employers or who
are partners in the participating employers and actively
participate in the business.
``(ii) Limitation.--

``(I) General rule.--Except as provided in subclauses (II)
and (III), no such member is an owner, officer, director, or
employee of, or partner in, a contract administrator or other
service provider to the plan.
``(II) Limited exception for providers of services solely
on behalf of the sponsor.--Officers or employees of a sponsor
which is a service provider (other than a contract
administrator) to the plan may be members of the board if
they constitute not more than 25 percent of the membership of
the board and they do not provide services to the plan other
than on behalf of the sponsor.
``(III) Treatment of providers of medical care.--In the
case of a sponsor which is an association whose membership
consists primarily of providers of medical care, subclause
(I) shall not apply in the case of any service provider
described in subclause (I) who is a provider of medical care
under the plan.

``(iii) Certain plans excluded.--Clause (i) shall not apply
to an association health plan which is in existence on the
date of the enactment of the Small Business Health
Improvement Act of 2007.
``(B) Sole authority.--The board has sole authority under
the plan to approve applications for participation in the
plan and to contract with a service provider to administer
the day-to-day affairs of the plan.
``(c) Treatment of Franchise Networks.--In the case of a
group health plan which is established and maintained by a
franchiser for a franchise network consisting of its
franchisees--
``(1) the requirements of subsection (a) and section 801(a)
shall be deemed met if such requirements would otherwise be
met if the franchiser were deemed to be the sponsor referred
to in section 801(b), such network were deemed to be an
association described in section 801(b), and each franchisee
were deemed to be a member (of the association and the
sponsor) referred to in section 801(b); and
``(2) the requirements of section 804(a)(1) shall be deemed
met.

The Secretary may by regulation define for purposes of this
subsection the terms `franchiser', `franchise network', and
`franchisee'.

``SEC. 804. PARTICIPATION AND COVERAGE REQUIREMENTS.

``(a) Covered Employers and Individuals.--The requirements
of this subsection are met with respect to an association
health plan if, under the terms of the plan--
``(1) each participating employer must be--
``(A) a member of the sponsor,
``(B) the sponsor, or
``(C) an affiliated member of the sponsor with respect to
which the requirements of subsection (b) are met,

except that, in the case of a sponsor which is a professional
association or other individual-based association, if at
least one of the officers, directors, or employees of an
employer, or at least one of the individuals

[[Page S927]]

who are partners in an employer and who actively participates
in the business, is a member or such an affiliated member of
the sponsor, participating employers may also include such
employer; and
``(2) all individuals commencing coverage under the plan
after certification under this part must be--
``(A) active or retired owners (including self-employed
individuals), officers, directors, or employees of, or
partners in, participating employers; or
``(B) the beneficiaries of individuals described in
subparagraph (A).
``(b) Coverage of Previously Uninsured Employees.--In the
case of an association health plan in existence on the date
of the enactment of the Small Business Health Improvement Act
of 2007, an affiliated member of the sponsor of the plan may
be offered coverage under the plan as a participating
employer only if--
``(1) the affiliated member was an affiliated member on the
date of certification under this part; or
``(2) during the 12-month period preceding the date of the
offering of such coverage, the affiliated member has not
maintained or contributed to a group health plan with respect
to any of its employees who would otherwise be eligible to
participate in such association health plan.
``(c) Individual Market Unaffected.--The requirements of
this subsection are met with respect to an association health
plan if, under the terms of the plan, no participating
employer may provide health insurance coverage in the
individual market for any employee not covered under the plan
which is similar to the coverage contemporaneously provided
to employees of the employer under the plan, if such
exclusion of the employee from coverage under the plan is
based on a health status-related factor with respect to the
employee and such employee would, but for such exclusion on
such basis, be eligible for coverage under the plan.
``(d) Prohibition of Discrimination Against Employers and
Employees Eligible to Participate.--The requirements of this
subsection are met with respect to an association health plan
if--
``(1) under the terms of the plan, all employers meeting
the preceding requirements of this section are eligible to
qualify as participating employers for all geographically
available coverage options, unless, in the case of any such
employer, participation or contribution requirements of the
type referred to in section 2711 of the Public Health Service
Act are not met;
``(2) upon request, any employer eligible to participate is
furnished information regarding all coverage options
available under the plan; and
``(3) the applicable requirements of sections 701, 702, and
703 are met with respect to the plan.

``SEC. 805. OTHER REQUIREMENTS RELATING TO PLAN DOCUMENTS,
CONTRIBUTION RATES, AND BENEFIT OPTIONS.

``(a) In General.--The requirements of this section are met
with respect to an association health plan if the following
requirements are met:
``(1) Contents of governing instruments.--The instruments
governing the plan include a written instrument, meeting the
requirements of an instrument required under section
402(a)(1), which--
``(A) provides that the board of trustees serves as the
named fiduciary required for plans under section 402(a)(1)
and serves in the capacity of a plan administrator (referred
to in section 3(16)(A));
``(B) provides that the sponsor of the plan is to serve as
plan sponsor (referred to in section 3(16)(B)); and
``(C) incorporates the requirements of section 806.
``(2) Contribution rates must be nondiscriminatory.--
``(A) The contribution rates for any participating small
employer do not vary on the basis of any health status-
related factor in relation to employees of such employer or
their beneficiaries and do not vary on the basis of the type
of business or industry in which such employer is engaged.
``(B) Nothing in this title or any other provision of law
shall be construed to preclude an association health plan, or
a health insurance issuer offering health insurance coverage
in connection with an association health plan, from--
``(i) setting contribution rates based on the claims
experience of the plan; or
``(ii) varying contribution rates for small employers in a
State to the extent that such rates could vary using the same
methodology employed in such State for regulating premium
rates in the small group market with respect to health
insurance coverage offered in connection with bona fide
associations (within the meaning of section 2791(d)(3) of the
Public Health Service Act),

subject to the requirements of section 702(b) relating to
contribution rates.
``(3) Floor for number of covered individuals with respect
to certain plans.--If any benefit option under the plan does
not consist of health insurance coverage, the plan has as of
the beginning of the plan year not fewer than 1,000
participants and beneficiaries.
``(4) Marketing requirements.--
``(A) In general.--If a benefit option which consists of
health insurance coverage is offered under the plan, State-
licensed insurance agents shall be used to distribute to
small employers coverage which does not consist of health
insurance coverage in a manner comparable to the manner in
which such agents are used to distribute health insurance
coverage.
``(B) State-licensed insurance agents.--For purposes of
subparagraph (A), the term `State-licensed insurance agents'
means one or more agents who are licensed in a State and are
subject to the laws of such State relating to licensure,
qualification, testing, examination, and continuing education
of persons authorized to offer, sell, or solicit health
insurance coverage in such State.
``(5) Regulatory requirements.--Such other requirements as
the applicable authority determines are necessary to carry
out the purposes of this part, which shall be prescribed by
the applicable authority by regulation.
``(b) Ability of Association Health Plans to Design Benefit
Options.--Subject to section 514(d), nothing in this part or
any provision of State law (as defined in section 514(c)(1))
shall be construed to preclude an association health plan, or
a health insurance issuer offering health insurance coverage
in connection with an association health plan, from
exercising its sole discretion in selecting the specific
items and services consisting of medical care to be included
as benefits under such plan or coverage, except (subject to
section 514) in the case of (1) any law to the extent that it
is not preempted under section 731(a)(1) with respect to
matters governed by section 711, 712, or 713, or (2) any law
of the State with which filing and approval of a policy type
offered by the plan was initially obtained to the extent that
such law prohibits an exclusion of a specific disease from
such coverage.

``SEC. 806. MAINTENANCE OF RESERVES AND PROVISIONS FOR
SOLVENCY FOR PLANS PROVIDING HEALTH BENEFITS IN
ADDITION TO HEALTH INSURANCE COVERAGE.

``(a) In General.--The requirements of this section are met
with respect to an association health plan if--
``(1) the benefits under the plan consist solely of health
insurance coverage; or
``(2) if the plan provides any additional benefit options
which do not consist of health insurance coverage, the plan--
``(A) establishes and maintains reserves with respect to
such additional benefit options, in amounts recommended by
the qualified actuary, consisting of--
``(i) a reserve sufficient for unearned contributions;
``(ii) a reserve sufficient for benefit liabilities which
have been incurred, which have not been satisfied, and for
which risk of loss has not yet been transferred, and for
expected administrative costs with respect to such benefit
liabilities;
``(iii) a reserve sufficient for any other obligations of
the plan; and
``(iv) a reserve sufficient for a margin of error and other
fluctuations, taking into account the specific circumstances
of the plan; and
``(B) establishes and maintains aggregate and specific
excess/stop loss insurance and solvency indemnification, with
respect to such additional benefit options for which risk of
loss has not yet been transferred, as follows:
``(i) The plan shall secure aggregate excess/stop loss
insurance for the plan with an attachment point which is not
greater than 125 percent of expected gross annual claims. The
applicable authority may by regulation provide for upward
adjustments in the amount of such percentage in specified
circumstances in which the plan specifically provides for and
maintains reserves in excess of the amounts required under
subparagraph (A).
``(ii) The plan shall secure specific excess/stop loss
insurance for the plan with an attachment point which is at
least equal to an amount recommended by the plan's qualified
actuary. The applicable authority may by regulation provide
for adjustments in the amount of such insurance in specified
circumstances in which the plan specifically provides for and
maintains reserves in excess of the amounts required under
subparagraph (A).
``(iii) The plan shall secure indemnification insurance for
any claims which the plan is unable to satisfy by reason of a
plan termination.

Any person issuing to a plan insurance described in clause
(i), (ii), or (iii) of subparagraph (B) shall notify the
Secretary of any failure of premium payment meriting
cancellation of the policy prior to undertaking such a
cancellation. Any regulations prescribed by the applicable
authority pursuant to clause (i) or (ii) of subparagraph (B)
may allow for such adjustments in the required levels of
excess/stop loss insurance as the qualified actuary may
recommend, taking into account the specific circumstances of
the plan.
``(b) Minimum Surplus in Addition to Claims Reserves.--In
the case of any association health plan described in
subsection (a)(2), the requirements of this subsection are
met if the plan establishes and maintains surplus in an
amount at least equal to--
``(1) $500,000, or
``(2) such greater amount (but not greater than $2,000,000)
as may be set forth in regulations prescribed by the
applicable authority, considering the level of aggregate and
specific excess/stop loss insurance provided with

[[Page S928]]

respect to such plan and other factors related to solvency
risk, such as the plan's projected levels of participation or
claims, the nature of the plan's liabilities, and the types
of assets available to assure that such liabilities are met.
``(c) Additional Requirements.--In the case of any
association health plan described in subsection (a)(2), the
applicable authority may provide such additional requirements
relating to reserves, excess/stop loss insurance, and
indemnification insurance as the applicable authority
considers appropriate. Such requirements may be provided by
regulation with respect to any such plan or any class of such
plans.
``(d) Adjustments for Excess/Stop Loss Insurance.--The
applicable authority may provide for adjustments to the
levels of reserves otherwise required under subsections (a)
and (b) with respect to any plan or class of plans to take
into account excess/stop loss insurance provided with respect
to such plan or plans.
``(e) Alternative Means of Compliance.--The applicable
authority may permit an association health plan described in
subsection (a)(2) to substitute, for all or part of the
requirements of this section (except subsection
(a)(2)(B)(iii)), such security, guarantee, hold-harmless
arrangement, or other financial arrangement as the applicable
authority determines to be adequate to enable the plan to
fully meet all its financial obligations on a timely basis
and is otherwise no less protective of the interests of
participants and beneficiaries than the requirements for
which it is substituted. The applicable authority may take
into account, for purposes of this subsection, evidence
provided by the plan or sponsor which demonstrates an
assumption of liability with respect to the plan. Such
evidence may be in the form of a contract of indemnification,
lien, bonding, insurance, letter of credit, recourse under
applicable terms of the plan in the form of assessments of
participating employers, security, or other financial
arrangement.
``(f) Measures to Ensure Continued Payment of Benefits by
Certain Plans in Distress.--
``(1) Payments by certain plans to association health plan
fund.--
``(A) In general.--In the case of an association health
plan described in subsection (a)(2), the requirements of this
subsection are met if the plan makes payments into the
Association Health Plan Fund under this subparagraph when
they are due. Such payments shall consist of annual payments
in the amount of $5,000, and, in addition to such annual
payments, such supplemental payments as the Secretary may
determine to be necessary under paragraph (2). Payments under
this paragraph are payable to the Fund at the time determined
by the Secretary. Initial payments are due in advance of
certification under this part. Payments shall continue to
accrue until a plan's assets are distributed pursuant to a
termination procedure.
``(B) Penalties for failure to make payments.--If any
payment is not made by a plan when it is due, a late payment
charge of not more than 100 percent of the payment which was
not timely paid shall be payable by the plan to the Fund.
``(C) Continued duty of the secretary.--The Secretary shall
not cease to carry out the provisions of paragraph (2) on
account of the failure of a plan to pay any payment when due.
``(2) Payments by secretary to continue excess/stop loss
insurance coverage and indemnification insurance coverage for
certain plans.--In any case in which the applicable authority
determines that there is, or that there is reason to believe
that there will be: (A) a failure to take necessary
corrective actions under section 809(a) with respect to an
association health plan described in subsection (a)(2); or
(B) a termination of such a plan under section 809(b) or
810(b)(8) (and, if the applicable authority is not the
Secretary, certifies such determination to the Secretary),
the Secretary shall determine the amounts necessary to make
payments to an insurer (designated by the Secretary) to
maintain in force excess/stop loss insurance coverage or
indemnification insurance coverage for such plan, if the
Secretary determines that there is a reasonable expectation
that, without such payments, claims would not be satisfied by
reason of termination of such coverage. The Secretary shall,
to the extent provided in advance in appropriation Acts, pay
such amounts so determined to the insurer designated by the
Secretary.
``(3) Association health plan fund.--
``(A) In general.--There is established on the books of the
Treasury a fund to be known as the `Association Health Plan
Fund'. The Fund shall be available for making payments
pursuant to paragraph (2). The Fund shall be credited with
payments received pursuant to paragraph (1)(A), penalties
received pursuant to paragraph (1)(B); and earnings on
investments of amounts of the Fund under subparagraph (B).
``(B) Investment.--Whenever the Secretary determines that
the moneys of the fund are in excess of current needs, the
Secretary may request the investment of such amounts as the
Secretary determines advisable by the Secretary of the
Treasury in obligations issued or guaranteed by the United
States.
``(g) Excess/Stop Loss Insurance.--For purposes of this
section--
``(1) Aggregate excess/stop loss insurance.--The term
`aggregate excess/stop loss insurance' means, in connection
with an association health plan, a contract--
``(A) under which an insurer (meeting such minimum
standards as the applicable authority may prescribe by
regulation) provides for payment to the plan with respect to
aggregate claims under the plan in excess of an amount or
amounts specified in such contract;
``(B) which is guaranteed renewable; and
``(C) which allows for payment of premiums by any third
party on behalf of the insured plan.
``(2) Specific excess/stop loss insurance.--The term
`specific excess/stop loss insurance' means, in connection
with an association health plan, a contract--
``(A) under which an insurer (meeting such minimum
standards as the applicable authority may prescribe by
regulation) provides for payment to the plan with respect to
claims under the plan in connection with a covered individual
in excess of an amount or amounts specified in such contract
in connection with such covered individual;
``(B) which is guaranteed renewable; and
``(C) which allows for payment of premiums by any third
party on behalf of the insured plan.
``(h) Indemnification Insurance.--For purposes of this
section, the term `indemnification insurance' means, in
connection with an association health plan, a contract--
``(1) under which an insurer (meeting such minimum
standards as the applicable authority may prescribe by
regulation) provides for payment to the plan with respect to
claims under the plan which the plan is unable to satisfy by
reason of a termination pursuant to section 809(b) (relating
to mandatory termination);
``(2) which is guaranteed renewable and noncancellable for
any reason (except as the applicable authority may prescribe
by regulation); and
``(3) which allows for payment of premiums by any third
party on behalf of the insured plan.
``(i) Reserves.--For purposes of this section, the term
`reserves' means, in connection with an association health
plan, plan assets which meet the fiduciary standards under
part 4 and such additional requirements regarding liquidity
as the applicable authority may prescribe by regulation.
``(j) Solvency Standards Working Group.--
``(1) In general.--Within 90 days after the date of the
enactment of the Small Business Health Improvement Act of
2007, the applicable authority shall establish a Solvency
Standards Working Group. In prescribing the initial
regulations under this section, the applicable authority
shall take into account the recommendations of such Working
Group.
``(2) Membership.--The Working Group shall consist of not
more than 15 members appointed by the applicable authority.
The applicable authority shall include among persons invited
to membership on the Working Group at least one of each of
the following:
``(A) a representative of the National Association of
Insurance Commissioners;
``(B) a representative of the American Academy of
Actuaries;
``(C) a representative of the State governments, or their
interests;
``(D) a representative of existing self-insured
arrangements, or their interests;
``(E) a representative of associations of the type referred
to in section 801(b)(1), or their interests; and
``(F) a representative of multiemployer plans that are
group health plans, or their interests.

``SEC. 807. REQUIREMENTS FOR APPLICATION AND RELATED
REQUIREMENTS.

``(a) Filing Fee.--Under the procedure prescribed pursuant
to section 802(a), an association health plan shall pay to
the applicable authority at the time of filing an application
for certification under this part a filing fee in the amount
of $5,000, which shall be available in the case of the
Secretary, to the extent provided in appropriation Acts, for
the sole purpose of administering the certification
procedures applicable with respect to association health
plans.
``(b) Information to Be Included in Application for
Certification.--An application for certification under this
part meets the requirements of this section only if it
includes, in a manner and form which shall be prescribed by
the applicable authority by regulation, at least the
following information:
``(1) Identifying information.--The names and addresses
of--
``(A) the sponsor; and
``(B) the members of the board of trustees of the plan.
``(2) States in which plan intends to do business.--The
States in which participants and beneficiaries under the plan
are to be located and the number of them expected to be
located in each such State.
``(3) Bonding requirements.--Evidence provided by the board
of trustees that the bonding requirements of section 412 will
be met as of the date of the application or (if later)
commencement of operations.
``(4) Plan documents.--A copy of the documents governing
the plan (including any bylaws and trust agreements), the
summary plan description, and other material describing the
benefits that will be provided to participants and
beneficiaries under the plan.
``(5) Agreements with service providers.--A copy of any
agreements between the plan and contract administrators and
other service providers.

[[Page S929]]

``(6) Funding report.--In the case of association health
plans providing benefits options in addition to health
insurance coverage, a report setting forth information with
respect to such additional benefit options determined as of a
date within the 120-day period ending with the date of the
application, including the following:
``(A) Reserves.--A statement, certified by the board of
trustees of the plan, and a statement of actuarial opinion,
signed by a qualified actuary, that all applicable
requirements of section 806 are or will be met in accordance
with regulations which the applicable authority shall
prescribe.
``(B) Adequacy of contribution rates.--A statement of
actuarial opinion, signed by a qualified actuary, which sets
forth a description of the extent to which contribution rates
are adequate to provide for the payment of all obligations
and the maintenance of required reserves under the plan for
the 12-month period beginning with such date within such 120-
day period, taking into account the expected coverage and
experience of the plan. If the contribution rates are not
fully adequate, the statement of actuarial opinion shall
indicate the extent to which the rates are inadequate and the
changes needed to ensure adequacy.
``(C) Current and projected value of assets and
liabilities.--A statement of actuarial opinion signed by a
qualified actuary, which sets forth the current value of the
assets and liabilities accumulated under the plan and a
projection of the assets, liabilities, income, and expenses
of the plan for the 12-month period referred to in
subparagraph (B). The income statement shall identify
separately the plan's administrative expenses and claims.
``(D) Costs of coverage to be charged and other expenses.--
A statement of the costs of coverage to be charged, including
an itemization of amounts for administration, reserves, and
other expenses associated with the operation of the plan.
``(E) Other information.--Any other information as may be
determined by the applicable authority, by regulation, as
necessary to carry out the purposes of this part.
``(c) Filing Notice of Certification With States.--A
certification granted under this part to an association
health plan shall not be effective unless written notice of
such certification is filed with the applicable State
authority of each State in which at least 25 percent of the
participants and beneficiaries under the plan are located.
For purposes of this subsection, an individual shall be
considered to be located in the State in which a known
address of such individual is located or in which such
individual is employed.
``(d) Notice of Material Changes.--In the case of any
association health plan certified under this part,
descriptions of material changes in any information which was
required to be submitted with the application for the
certification under this part shall be filed in such form and
manner as shall be prescribed by the applicable authority by
regulation. The applicable authority may require by
regulation prior notice of material changes with respect to
specified matters which might serve as the basis for
suspension or revocation of the certification.
``(e) Reporting Requirements for Certain Association Health
Plans.--An association health plan certified under this part
which provides benefit options in addition to health
insurance coverage for such plan year shall meet the
requirements of section 103 by filing an annual report under
such section which shall include information described in
subsection (b)(6) with respect to the plan year and,
notwithstanding section 104(a)(1)(A), shall be filed with the
applicable authority not later than 90 days after the close
of the plan year (or on such later date as may be prescribed
by the applicable authority). The applicable authority may
require by regulation such interim reports as it considers
appropriate.
``(f) Engagement of Qualified Actuary.--The board of
trustees of each association health plan which provides
benefits options in addition to health insurance coverage and
which is applying for certification under this part or is
certified under this part shall engage, on behalf of all
participants and beneficiaries, a qualified actuary who shall
be responsible for the preparation of the materials
comprising information necessary to be submitted by a
qualified actuary under this part. The qualified actuary
shall utilize such assumptions and techniques as are
necessary to enable such actuary to form an opinion as to
whether the contents of the matters reported under this
part--
``(1) are in the aggregate reasonably related to the
experience of the plan and to reasonable expectations; and
``(2) represent such actuary's best estimate of anticipated
experience under the plan.
The opinion by the qualified actuary shall be made with
respect to, and shall be made a part of, the annual report.

``SEC. 808. NOTICE REQUIREMENTS FOR VOLUNTARY TERMINATION.

``Except as provided in section 809(b), an association
health plan which is or has been certified under this part
may terminate (upon or at any time after cessation of
accruals in benefit liabilities) only if the board of
trustees, not less than 60 days before the proposed
termination date--
``(1) provides to the participants and beneficiaries a
written notice of intent to terminate stating that such
termination is intended and the proposed termination date;
``(2) develops a plan for winding up the affairs of the
plan in connection with such termination in a manner which
will result in timely payment of all benefits for which the
plan is obligated; and
``(3) submits such plan in writing to the applicable
authority.

Actions required under this section shall be taken in such
form and manner as may be prescribed by the applicable
authority by regulation.

``SEC. 809. CORRECTIVE ACTIONS AND MANDATORY TERMINATION.

``(a) Actions to Avoid Depletion of Reserves.--An
association health plan which is certified under this part
and which provides benefits other than health insurance
coverage shall continue to meet the requirements of section
806, irrespective of whether such certification continues in
effect. The board of trustees of such plan shall determine
quarterly whether the requirements of section 806 are met. In
any case in which the board determines that there is reason
to believe that there is or will be a failure to meet such
requirements, or the applicable authority makes such a
determination and so notifies the board, the board shall
immediately notify the qualified actuary engaged by the plan,
and such actuary shall, not later than the end of the next
following month, make such recommendations to the board for
corrective action as the actuary determines necessary to
ensure compliance with section 806. Not later than 30 days
after receiving from the actuary recommendations for
corrective actions, the board shall notify the applicable
authority (in such form and manner as the applicable
authority may prescribe by regulation) of such
recommendations of the actuary for corrective action,
together with a description of the actions (if any) that the
board has taken or plans to take in response to such
recommendations. The board shall thereafter report to the
applicable authority, in such form and frequency as the
applicable authority may specify to the board, regarding
corrective action taken by the board until the requirements
of section 806 are met.
``(b) Mandatory Termination.--In any case in which--
``(1) the applicable authority has been notified under
subsection (a) (or by an issuer of excess/stop loss insurance
or indemnity insurance pursuant to section 806(a)) of a
failure of an association health plan which is or has been
certified under this part and is described in section
806(a)(2) to meet the requirements of section 806 and has not
been notified by the board of trustees of the plan that
corrective action has restored compliance with such
requirements; and
``(2) the applicable authority determines that there is a
reasonable expectation that the plan will continue to fail to
meet the requirements of section 806,

the board of trustees of the plan shall, at the direction of
the applicable authority, terminate the plan and, in the
course of the termination, take such actions as the
applicable authority may require, including satisfying any
claims referred to in section 806(a)(2)(B)(iii) and
recovering for the plan any liability under subsection
(a)(2)(B)(iii) or (e) of section 806, as necessary to ensure
that the affairs of the plan will be, to the maximum extent
possible, wound up in a manner which will result in timely
provision of all benefits for which the plan is obligated.

``SEC. 810. TRUSTEESHIP BY THE SECRETARY OF INSOLVENT
ASSOCIATION HEALTH PLANS PROVIDING HEALTH
BENEFITS IN ADDITION TO HEALTH INSURANCE
COVERAGE.

``(a) Appointment of Secretary as Trustee for Insolvent
Plans.--Whenever the Secretary determines that an association
health plan which is or has been certified under this part
and which is described in section 806(a)(2) will be unable to
provide benefits when due or is otherwise in a financially
hazardous condition, as shall be defined by the Secretary by
regulation, the Secretary shall, upon notice to the plan,
apply to the appropriate United States district court for
appointment of the Secretary as trustee to administer the
plan for the duration of the insolvency. The plan may appear
as a party and other interested persons may intervene in the
proceedings at the discretion of the court. The court shall
appoint such Secretary trustee if the court determines that
the trusteeship is necessary to protect the interests of the
participants and beneficiaries or providers of medical care
or to avoid any unreasonable deterioration of the financial
condition of the plan. The trusteeship of such Secretary
shall continue until the conditions described in the first
sentence of this subsection are remedied or the plan is
terminated.
``(b) Powers as Trustee.--The Secretary, upon appointment
as trustee under subsection (a), shall have the power--
``(1) to do any act authorized by the plan, this title, or
other applicable provisions of law to be done by the plan
administrator or any trustee of the plan;
``(2) to require the transfer of all (or any part) of the
assets and records of the plan to the Secretary as trustee;
``(3) to invest any assets of the plan which the Secretary
holds in accordance with the provisions of the plan,
regulations prescribed by the Secretary, and applicable
provisions of law;
``(4) to require the sponsor, the plan administrator, any
participating employer, and any employee organization
representing plan participants to furnish any information
with respect to the plan which the Secretary as

[[Page S930]]

trustee may reasonably need in order to administer the plan;
``(5) to collect for the plan any amounts due the plan and
to recover reasonable expenses of the trusteeship;
``(6) to commence, prosecute, or defend on behalf of the
plan any suit or proceeding involving the plan;
``(7) to issue, publish, or file such notices, statements,
and reports as may be required by the Secretary by regulation
or required by any order of the court;
``(8) to terminate the plan (or provide for its termination
in accordance with section 809(b)) and liquidate the plan
assets, to restore the plan to the responsibility of the
sponsor, or to continue the trusteeship;
``(9) to provide for the enrollment of plan participants
and beneficiaries under appropriate coverage options; and
``(10) to do such other acts as may be necessary to comply
with this title or any order of the court and to protect the
interests of plan participants and beneficiaries and
providers of medical care.
``(c) Notice of Appointment.--As soon as practicable after
the Secretary's appointment as trustee, the Secretary shall
give notice of such appointment to--
``(1) the sponsor and plan administrator;
``(2) each participant;
``(3) each participating employer; and
``(4) if applicable, each employee organization which, for
purposes of collective bargaining, represents plan
participants.
``(d) Additional Duties.--Except to the extent inconsistent
with the provisions of this title, or as may be otherwise
ordered by the court, the Secretary, upon appointment as
trustee under this section, shall be subject to the same
duties as those of a trustee under section 704 of title 11,
United States Code, and shall have the duties of a fiduciary
for purposes of this title.
``(e) Other Proceedings.--An application by the Secretary
under this subsection may be filed notwithstanding the
pendency in the same or any other court of any bankruptcy,
mortgage foreclosure, or equity receivership proceeding, or
any proceeding to reorganize, conserve, or liquidate such
plan or its property, or any proceeding to enforce a lien
against property of the plan.
``(f) Jurisdiction of Court.--
``(1) In general.--Upon the filing of an application for
the appointment as trustee or the issuance of a decree under
this section, the court to which the application is made
shall have exclusive jurisdiction of the plan involved and
its property wherever located with the powers, to the extent
consistent with the purposes of this section, of a court of
the United States having jurisdiction over cases under
chapter 11 of title 11, United States Code. Pending an
adjudication under this section such court shall stay, and
upon appointment by it of the Secretary as trustee, such
court shall continue the stay of, any pending mortgage
foreclosure, equity receivership, or other proceeding to
reorganize, conserve, or liquidate the plan, the sponsor, or
property of such plan or sponsor, and any other suit against
any receiver, conservator, or trustee of the plan, the
sponsor, or property of the plan or sponsor. Pending such
adjudication and upon the appointment by it of the Secretary
as trustee, the court may stay any proceeding to enforce a
lien against property of the plan or the sponsor or any other
suit against the plan or the sponsor.
``(2) Venue.--An action under this section may be brought
in the judicial district where the sponsor or the plan
administrator resides or does business or where any asset of
the plan is situated. A district court in which such action
is brought may issue process with respect to such action in
any other judicial district.
``(g) Personnel.--In accordance with regulations which
shall be prescribed by the Secretary, the Secretary shall
appoint, retain, and compensate accountants, actuaries, and
other professional service personnel as may be necessary in
connection with the Secretary's service as trustee under this
section.

``SEC. 811. STATE ASSESSMENT AUTHORITY.

``(a) In General.--Notwithstanding section 514, a State may
impose by law a contribution tax on an association health
plan described in section 806(a)(2), if the plan commenced
operations in such State after the date of the enactment of
the Small Business Health Improvement Act of 2007.
``(b) Contribution Tax.--For purposes of this section, the
term `contribution tax' imposed by a State on an association
health plan means any tax imposed by such State if--
``(1) such tax is computed by applying a rate to the amount
of premiums or contributions, with respect to individuals
covered under the plan who are residents of such State, which
are received by the plan from participating employers located
in such State or from such individuals;
``(2) the rate of such tax does not exceed the rate of any
tax imposed by such State on premiums or contributions
received by insurers or health maintenance organizations for
health insurance coverage offered in such State in connection
with a group health plan;
``(3) such tax is otherwise nondiscriminatory; and
``(4) the amount of any such tax assessed on the plan is
reduced by the amount of any tax or assessment otherwise
imposed by the State on premiums, contributions, or both
received by insurers or health maintenance organizations for
health insurance coverage, aggregate excess/stop loss
insurance (as defined in section 806(g)(1)), specific excess/
stop loss insurance (as defined in section 806(g)(2)), other
insurance related to the provision of medical care under the
plan, or any combination thereof provided by such insurers or
health maintenance organizations in such State in connection
with such plan.

``SEC. 812. DEFINITIONS AND RULES OF CONSTRUCTION.

``(a) Definitions.--For purposes of this part--
``(1) Group health plan.--The term `group health plan' has
the meaning provided in section 733(a)(1) (after applying
subsection (b) of this section).
``(2) Medical care.--The term `medical care' has the
meaning provided in section 733(a)(2).
``(3) Health insurance coverage.--The term `health
insurance coverage' has the meaning provided in section
733(b)(1).
``(4) Health insurance issuer.--The term `health insurance
issuer' has the meaning provided in section 733(b)(2).
``(5) Applicable authority.--The term `applicable
authority' means the Secretary, except that, in connection
with any exercise of the Secretary's authority regarding
which the Secretary is required under section 506(d) to
consult with a State, such term means the Secretary, in
consultation with such State.
``(6) Health status-related factor.--The term `health
status-related factor' has the meaning provided in section
733(d)(2).
``(7) Individual market.--
``(A) In general.--The term `individual market' means the
market for health insurance coverage offered to individuals
other than in connection with a group health plan.
``(B) Treatment of very small groups.--
``(i) In general.--Subject to clause (ii), such term
includes coverage offered in connection with a group health
plan that has fewer than 2 participants as current employees
or participants described in section 732(d)(3) on the first
day of the plan year.
``(ii) State exception.--Clause (i) shall not apply in the
case of health insurance coverage offered in a State if such
State regulates the coverage described in such clause in the
same manner and to the same extent as coverage in the small
group market (as defined in section 2791(e)(5) of the Public
Health Service Act) is regulated by such State.
``(8) Participating employer.--The term `participating
employer' means, in connection with an association health
plan, any employer, if any individual who is an employee of
such employer, a partner in such employer, or a self-employed
individual who is such employer (or any dependent, as defined
under the terms of the plan, of such individual) is or was
covered under such plan in connection with the status of such
individual as such an employee, partner, or self-employed
individual in relation to the plan.
``(9) Applicable state authority.--The term `applicable
State authority' means, with respect to a health insurance
issuer in a State, the State insurance commissioner or
official or officials designated by the State to enforce the
requirements of title XXVII of the Public Health Service Act
for the State involved with respect to such issuer.
``(10) Qualified actuary.--The term `qualified actuary'
means an individual who is a member of the American Academy
of Actuaries.
``(11) Affiliated member.--The term `affiliated member'
means, in connection with a sponsor--
``(A) a person who is otherwise eligible to be a member of
the sponsor but who elects an affiliated status with the
sponsor,
``(B) in the case of a sponsor with members which consist
of associations, a person who is a member of any such
association and elects an affiliated status with the sponsor,
or
``(C) in the case of an association health plan in
existence on the date of the enactment of the Small Business
Health Improvement Act of 2007, a person eligible to be a
member of the sponsor or one of its member associations.
``(12) Large employer.--The term `large employer' means, in
connection with a group health plan with respect to a plan
year, an employer who employed an average of at least 51
employees on business days during the preceding calendar year
and who employs at least 2 employees on the first day of the
plan year.
``(13) Small employer.--The term `small employer' means, in
connection with a group health plan with respect to a plan
year, an employer who is not a large employer.
``(b) Rules of Construction.--
``(1) Employers and employees.--For purposes of determining
whether a plan, fund, or program is an employee welfare
benefit plan which is an association health plan, and for
purposes of applying this title in connection with such plan,
fund, or program so determined to be such an employee welfare
benefit plan--
``(A) in the case of a partnership, the term `employer' (as
defined in section 3(5)) includes the partnership in relation
to the partners, and the term `employee' (as defined in
section 3(6)) includes any partner in relation to the
partnership; and
``(B) in the case of a self-employed individual, the term
`employer' (as defined in section 3(5)) and the term
`employee' (as defined in section 3(6)) shall include such
individual.
``(2) Plans, funds, and programs treated as employee
welfare benefit plans.--In the case of any plan, fund, or
program which

[[Page S931]]

was established or is maintained for the purpose of providing
medical care (through the purchase of insurance or otherwise)
for employees (or their dependents) covered thereunder and
which demonstrates to the Secretary that all requirements for
certification under this part would be met with respect to
such plan, fund, or program if such plan, fund, or program
were a group health plan, such plan, fund, or program shall
be treated for purposes of this title as an employee welfare
benefit plan on and after the date of such demonstration.''.
(b) Conforming Amendments to Preemption Rules.--
(1) Section 514(b)(6) of such Act (29 U.S.C. 1144(b)(6)) is
amended by adding at the end the following new subparagraph:
``(E) The preceding subparagraphs of this paragraph do not
apply with respect to any State law in the case of an
association health plan which is certified under part 8.''.
(2) Section 514 of such Act (29 U.S.C. 1144) is amended--
(A) in subsection (b)(4), by striking ``Subsection (a)''
and inserting ``Subsections (a) and (d)'';
(B) in subsection (b)(5), by striking ``subsection (a)'' in
subparagraph (A) and inserting ``subsection (a) of this
section and subsections (a)(2)(B) and (b) of section 805'',
and by striking ``subsection (a)'' in subparagraph (B) and
inserting ``subsection (a) of this section or subsection
(a)(2)(B) or (b) of section 805'';
(C) by redesignating subsection (d) as subsection (e); and
(D) by inserting after subsection (c) the following new
subsection:
``(d)(1) Except as provided in subsection (b)(4), the
provisions of this title shall supersede any and all State
laws insofar as they may now or hereafter preclude, or have
the effect of precluding, a health insurance issuer from
offering health insurance coverage in connection with an
association health plan which is certified under part 8.
``(2) Except as provided in paragraphs (4) and (5) of
subsection (b) of this section--
``(A) In any case in which health insurance coverage of any
policy type is offered under an association health plan
certified under part 8 to a participating employer operating
in such State, the provisions of this title shall supersede
any and all laws of such State insofar as they may preclude a
health insurance issuer from offering health insurance
coverage of the same policy type to other employers operating
in the State which are eligible for coverage under such
association health plan, whether or not such other employers
are participating employers in such plan.
``(B) In any case in which health insurance coverage of any
policy type is offered in a State under an association health
plan certified under part 8 and the filing, with the
applicable State authority (as defined in section 812(a)(9)),
of the policy form in connection with such policy type is
approved by such State authority, the provisions of this
title shall supersede any and all laws of any other State in
which health insurance coverage of such type is offered,
insofar as they may preclude, upon the filing in the same
form and manner of such policy form with the applicable State
authority in such other State, the approval of the filing in
such other State.
``(3) Nothing in subsection (b)(6)(E) or the preceding
provisions of this subsection shall be construed, with
respect to health insurance issuers or health insurance
coverage, to supersede or impair the law of any State--
``(A) providing solvency standards or similar standards
regarding the adequacy of insurer capital, surplus, reserves,
or contributions, or
``(B) relating to prompt payment of claims.
``(4) For additional provisions relating to association
health plans, see subsections (a)(2)(B) and (b) of section
805.
``(5) For purposes of this subsection, the term
`association health plan' has the meaning provided in section
801(a), and the terms `health insurance coverage',
`participating employer', and `health insurance issuer' have
the meanings provided such terms in section 812,
respectively.''.
(3) Section 514(b)(6)(A) of such Act (29 U.S.C.
1144(b)(6)(A)) is amended--
(A) in clause (i)(II), by striking ``and'' at the end;
(B) in clause (ii), by inserting ``and which does not
provide medical care (within the meaning of section
733(a)(2)),'' after ``arrangement,'', and by striking
``title.'' and inserting ``title, and''; and
(C) by adding at the end the following new clause:
``(iii) subject to subparagraph (E), in the case of any
other employee welfare benefit plan which is a multiple
employer welfare arrangement and which provides medical care
(within the meaning of section 733(a)(2)), any law of any
State which regulates insurance may apply.''.
(4) Section 514(e) of such Act (as redesignated by
paragraph (2)(C)) is amended--
(A) by striking ``Nothing'' and inserting ``(1) Except as
provided in paragraph (2), nothing''; and
(B) by adding at the end the following new paragraph:
``(2) Nothing in any other provision of law enacted on or
after the date of the enactment of the Small Business Health
Improvement Act of 2007 shall be construed to alter, amend,
modify, invalidate, impair, or supersede any provision of
this title, except by specific cross-reference to the
affected section.''.
(c) Plan Sponsor.--Section 3(16)(B) of such Act (29 U.S.C.
102(16)(B)) is amended by adding at the end the following new
sentence: ``Such term also includes a person serving as the
sponsor of an association health plan under part 8.''.
(d) Disclosure of Solvency Protections Related to Self-
Insured and Fully Insured Options Under Association Health
Plans.--Section 102(b) of such Act (29 U.S.C. 102(b)) is
amended by adding at the end the following: ``An association
health plan shall include in its summary plan description, in
connection with each benefit option, a description of the
form of solvency or guarantee fund protection secured
pursuant to this Act or applicable State law, if any.''.
(e) Savings Clause.--Section 731(c) of such Act is amended
by inserting ``or part 8'' after ``this part''.
(f) Report to the Congress Regarding Certification of Self-
Insured Association Health Plans.--Not later than January 1,
2010, the Secretary of Labor shall report to the Committee on
Education and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor, and Pensions
of the Senate the effect association health plans have had,
if any, on reducing the number of uninsured individuals.
(g) Clerical Amendment.--The table of contents in section 1
of the Employee Retirement Income Security Act of 1974 is
amended by inserting after the item relating to section 734
the following new items:

``Part 8--Rules Governing Association Health Plans

``Sec. 801. Association health plans
``Sec. 802. Certification of association health plans
``Sec. 803. Requirements relating to sponsors and boards of trustees
``Sec. 804. Participation and coverage requirements
``Sec. 805. Other requirements relating to plan documents, contribution
rates, and benefit options
``Sec. 806. Maintenance of reserves and provisions for solvency for
plans providing health benefits in addition to health
insurance coverage
``Sec. 807. Requirements for application and related requirements
``Sec. 808. Notice requirements for voluntary termination
``Sec. 809. Corrective actions and mandatory termination
``Sec. 810. Trusteeship by the Secretary of insolvent association
health plans providing health benefits in addition to
health insurance coverage
``Sec. 811. State assessment authority
``Sec. 812. Definitions and rules of construction''.

SEC. _03. CLARIFICATION OF TREATMENT OF SINGLE EMPLOYER
ARRANGEMENTS.

Section 3(40)(B) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1002(40)(B)) is amended--
(1) in clause (i), by inserting after ``control group,''
the following: ``except that, in any case in which the
benefit referred to in subparagraph (A) consists of medical
care (as defined in section 812(a)(2)), two or more trades or
businesses, whether or not incorporated, shall be deemed a
single employer for any plan year of such plan, or any fiscal
year of such other arrangement, if such trades or businesses
are within the same control group during such year or at any
time during the preceding 1-year period,'';
(2) in clause (iii), by striking ``(iii) the
determination'' and inserting the following:
``(iii)(I) in any case in which the benefit referred to in
subparagraph (A) consists of medical care (as defined in
section 812(a)(2)), the determination of whether a trade or
business is under `common control' with another trade or
business shall be determined under regulations of the
Secretary applying principles consistent and coextensive with
the principles applied in determining whether employees of
two or more trades or businesses are treated as employed by a
single employer under section 4001(b), except that, for
purposes of this paragraph, an interest of greater than 25
percent may not be required as the minimum interest necessary
for common control, or
``(II) in any other case, the determination'';
(3) by redesignating clauses (iv) and (v) as clauses (v)
and (vi), respectively; and
(4) by inserting after clause (iii) the following new
clause:
``(iv) in any case in which the benefit referred to in
subparagraph (A) consists of medical care (as defined in
section 812(a)(2)), in determining, after the application of
clause (i), whether benefits are provided to employees of two
or more employers, the arrangement shall be treated as having
only one participating employer if, after the application of
clause (i), the number of individuals who are employees and
former employees of any one participating employer and who
are covered under the arrangement is greater than 75 percent
of the aggregate number of all individuals who are employees
or former employees of participating employers and who are
covered under the arrangement,''.

SEC. _04. ENFORCEMENT PROVISIONS RELATING TO ASSOCIATION
HEALTH PLANS.

(a) Criminal Penalties for Certain Willful
Misrepresentations.--Section 501 of the Employee Retirement
Income Security Act of 1974 (29 U.S.C. 1131) is amended--
(1) by inserting ``(a)'' after ``Sec. 501.''; and

[[Page S932]]

(2) by adding at the end the following new subsection:
``(b) Any person who willfully falsely represents, to any
employee, any employee's beneficiary, any employer, the
Secretary, or any State, a plan or other arrangement
established or maintained for the purpose of offering or
providing any benefit described in section 3(1) to employees
or their beneficiaries as--
``(1) being an association health plan which has been
certified under part 8;
``(2) having been established or maintained under or
pursuant to one or more collective bargaining agreements
which are reached pursuant to collective bargaining described
in section 8(d) of the National Labor Relations Act (29
U.S.C. 158(d)) or paragraph Fourth of section 2 of the
Railway Labor Act (45 U.S.C. 152, paragraph Fourth) or which
are reached pursuant to labor-management negotiations under
similar provisions of State public employee relations laws;
or
``(3) being a plan or arrangement described in section
3(40)(A)(i),

shall, upon conviction, be imprisoned not more than 5 years,
be fined under title 18, United States Code, or both.''.
(b) Cease Activities Orders.--Section 502 of such Act (29
U.S.C. 1132) is amended by adding at the end the following
new subsection:
``(n) Association Health Plan Cease and Desist Orders.--
``(1) In general.--Subject to paragraph (2), upon
application by the Secretary showing the operation,
promotion, or marketing of an association health plan (or
similar arrangement providing benefits consisting of medical
care (as defined in section 733(a)(2))) that--
``(A) is not certified under part 8, is subject under
section 514(b)(6) to the insurance laws of any State in which
the plan or arrangement offers or provides benefits, and is
not licensed, registered, or otherwise approved under the
insurance laws of such State; or
``(B) is an association health plan certified under part 8
and is not operating in accordance with the requirements
under part 8 for such certification,

a district court of the United States shall enter an order
requiring that the plan or arrangement cease activities.
``(2) Exception.--Paragraph (1) shall not apply in the case
of an association health plan or other arrangement if the
plan or arrangement shows that--
``(A) all benefits under it referred to in paragraph (1)
consist of health insurance coverage; and
``(B) with respect to each State in which the plan or
arrangement offers or provides benefits, the plan or
arrangement is operating in accordance with applicable State
laws that are not superseded under section 514.
``(3) Additional equitable relief.--The court may grant
such additional equitable relief, including any relief
available under this title, as it deems necessary to protect
the interests of the public and of persons having claims for
benefits against the plan.''.
(c) Responsibility for Claims Procedure.--Section 503 of
such Act (29 U.S.C. 1133) is amended by inserting ``(a) In
general.--'' before ``In accordance'', and by adding at the
end the following new subsection:
``(b) Association Health Plans.--The terms of each
association health plan which is or has been certified under
part 8 shall require the board of trustees or the named
fiduciary (as applicable) to ensure that the requirements of
this section are met in connection with claims filed under
the plan.''.

SEC. __05. COOPERATION BETWEEN FEDERAL AND STATE AUTHORITIES.

Section 506 of the Employee Retirement Income Security Act
of 1974 (29 U.S.C. 1136) is amended by adding at the end the
following new subsection:
``(d) Consultation With States With Respect to Association
Health Plans.--
``(1) Agreements with states.--The Secretary shall consult
with the State recognized under paragraph (2) with respect to
an association health plan regarding the exercise of--
``(A) the Secretary's authority under sections 502 and 504
to enforce the requirements for certification under part 8;
and
``(B) the Secretary's authority to certify association
health plans under part 8 in accordance with regulations of
the Secretary applicable to certification under part 8.
``(2) Recognition of primary domicile state.--In carrying
out paragraph (1), the Secretary shall ensure that only one
State will be recognized, with respect to any particular
association health plan, as the State with which consultation
is required. In carrying out this paragraph--
``(A) in the case of a plan which provides health insurance
coverage (as defined in section 812(a)(3)), such State shall
be the State with which filing and approval of a policy type
offered by the plan was initially obtained, and
``(B) in any other case, the Secretary shall take into
account the places of residence of the participants and
beneficiaries under the plan and the State in which the trust
is maintained.''.

SEC. __06. EFFECTIVE DATE AND TRANSITIONAL AND OTHER RULES.

(a) Effective Date.--The amendments made by this title
shall take effect one year after the date of the enactment of
this Act. The Secretary of Labor shall first issue all
regulations necessary to carry out the amendments made by
this title within one year after the date of the enactment of
this Act.
(b) Treatment of Certain Existing Health Benefits
Programs.--
(1) In general.--In any case in which, as of the date of
the enactment of this Act, an arrangement is maintained in a
State for the purpose of providing benefits consisting of
medical care for the employees and beneficiaries of its
participating employers, at least 200 participating employers
make contributions to such arrangement, such arrangement has
been in existence for at least 10 years, and such arrangement
is licensed under the laws of one or more States to provide
such benefits to its participating employers, upon the filing
with the applicable authority (as defined in section
812(a)(5) of the Employee Retirement Income Security Act of
1974 (as amended by this subtitle)) by the arrangement of an
application for certification of the arrangement under part 8
of subtitle B of title I of such Act--
(A) such arrangement shall be deemed to be a group health
plan for purposes of title I of such Act;
(B) the requirements of sections 801(a) and 803(a) of the
Employee Retirement Income Security Act of 1974 shall be
deemed met with respect to such arrangement;
(C) the requirements of section 803(b) of such Act shall be
deemed met, if the arrangement is operated by a board of
directors which--
(i) is elected by the participating employers, with each
employer having one vote; and
(ii) has complete fiscal control over the arrangement and
which is responsible for all operations of the arrangement;
(D) the requirements of section 804(a) of such Act shall be
deemed met with respect to such arrangement; and
(E) the arrangement may be certified by any applicable
authority with respect to its operations in any State only if
it operates in such State on the date of certification.
The provisions of this subsection shall cease to apply with
respect to any such arrangement at such time after the date
of the enactment of this Act as the applicable requirements
of this subsection are not met with respect to such
arrangement.
(2) Definitions.--For purposes of this subsection, the
terms ``group health plan'', ``medical care'', and
``participating employer'' shall have the meanings provided
in section 812 of the Employee Retirement Income Security Act
of 1974, except that the reference in paragraph (7) of such
section to an ``association health plan'' shall be deemed a
reference to an arrangement referred to in this subsection.
______

SA 115. Mr. KYL proposed an amendment to amendment SA 100 proposed by
Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor
Standards Act of 1938 to provide for an increase in the Federal minimum
wage; as follows:

On page 4, line 21, strike ``April 1, 2008'' and insert
``January 1, 2009''.
On page 6, lines 5 and 6, strike ``April 1, 2008'' and
insert ``January 1, 2009''.
______

SA 116. Mr. ALLARD submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the end of section 2, add the following:
(c) State Flexibility.--Section 6 of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206) is amended by adding at
the end the following:
``(h) State Flexibility.--Notwithstanding any other
provision of this section, an employer shall not be required
to pay an employee a wage that is greater than the minimum
wage provided for by the law of the State in which the
employee is employed and not less than the minimum wage in
effect in that State on January 1, 2007.''.
______

SA 117. Mr. CHAMBLISS (for himself, Mr. Burr, and Mr. Isakson)
submitted an amendment intended to be proposed by him to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; as follows:

At the appropriate place, add the following new section:

SEC. __. WAGES FOR AGRICULTURAL WORKERS.

Section (6)(a)(5) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(5)) is amended to read as follows:
``(5) if such employee is employed to provide agriculture
labor or services--
``(A) not less than the minimum wage rate in effect under
paragraph (1) after December 31, 1977; or
``(B) pursuant to the provisions of section 218 of the
Immigration and Nationality Act (8 U.S.C. 1188), not less
than the greater of--
``(i) the minimum wage rate in effect under paragraph (1)
after December 31, 1977; or
``(ii) the prevailing wage established by the Occupational
Employment Statistics program, or other wage survey,
conducted by the Bureau of Labor Statistics in the county of
intended employment, for entry level workers who are employed
in agriculture in the area of the work to be performed.''.
______

SA 118. Mr. CHAMBLISS (for himself, Mr. Isakson, and Mr. Burr)
submitted an amendment intended to be proposed

[[Page S933]]

by him to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following new section:

SEC. __. WAGES FOR AGRICULTURAL WORKERS.

Section (6)(a)(5) of the Fair Labor Standards Act of 1938
(29 U.S.C. 206(a)(5)) is amended to read as follows:
``(5) if such employee is employed in agriculture, or is
employed to provide agriculture labor or services pursuant to
section 218 of the Immigration and Nationality Act (8 U.S.C.
1188), not less than the greater of--
``(A) the minimum wage rate in effect under paragraph (1)
after December 31, 1977; or
``(B) the prevailing wage established by the Occupational
Employment Statistics program, or other wage survey,
conducted by the Bureau of Labor Statistics in the county of
intended employment, for entry level workers who are employed
in agriculture in the area of work to be performed.''.
______

SA 119. Mr. BUNNING submitted an amendment intended to be proposed by
him to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the
bill H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide
for an increase in the Federal minimum wage; as follows:

At the appropriate place insert the following:

SEC. __. REPEAL OF 1993 INCOME TAX INCREASE ON SOCIAL
SECURITY BENEFITS.

(a) Restoration of Prior Law Formula.--Subsection (a) of
section 86 (relating to social security and tier 1 railroad
retirement benefits) is amended to read as follows:
``(a) In General.--Gross income for the taxable year of any
taxpayer described in subsection (b) (notwithstanding section
207 of the Social Security Act) includes social security
benefits in an amount equal to the lesser of--
``(1) one-half of the social security benefits received
during the taxable year, or
``(2) one-half of the excess described in subsection
(b)(1).''.
(b) Repeal of Adjusted Base Amount.--Subsection (c) of
section 86 is amended to read as follows:
``(c) Base Amount.--For purposes of this section, the term
`base amount' means--
``(1) except as otherwise provided in this subsection,
$25,000,
``(2) $32,000 in the case of a joint return, and
``(3) zero in the case of a taxpayer who--
``(A) is married as of the close of the taxable year
(within the meaning of section 7703) but does not file a
joint return for such year, and
``(B) does not live apart from his spouse at all times
during the taxable year.''.
(c) Conforming Amendments.--
(1) Subparagraph (A) of section 871(a)(3) is amended by
striking ``85 percent'' and inserting ``50 percent''.
(2)(A) Subparagraph (A) of section 121(e)(1) of the Social
Security Amendments of 1983 (Public Law 98-21) is amended--
(i) by striking ``(A) There'' and inserting ``There'';
(ii) by striking ``(i)'' immediately following ``amounts
equivalent to''; and
(iii) by striking ``, less (ii)'' and all that follows and
inserting a period.
(B) Paragraph (1) of section 121(e) of such Act is amended
by striking subparagraph (B).
(C) Paragraph (3) of section 121(e) of such Act is amended
by striking subparagraph (B) and by redesignating
subparagraph (C) as subparagraph (B).
(D) Paragraph (2) of section 121(e) of such Act is amended
in the first sentence by striking ``paragraph (1)(A)'' and
inserting ``paragraph (1)''.
(d) Effective Dates.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply
to taxable years beginning after December 31, 2007.
(2) Subsection (c)(1).--The amendment made by subsection
(c)(1) shall apply to benefits paid after December 31, 2007.
(3) Subsection (c)(2).--The amendments made by subsection
(c)(2) shall apply to tax liabilities for taxable years
beginning after December 31, 2007.

SEC. __. MAINTENANCE OF TRANSFERS TO HOSPITAL INSURANCE TRUST
FUND.

There are hereby appropriated to the Federal Hospital
Insurance Trust Fund established under section 1817 of the
Social Security Act (42 U.S.C. 1395i) amounts equal to the
reduction in revenues to the Treasury by reason of the
enactment of this Act. Amounts appropriated by the preceding
sentence shall be transferred from the general fund at such
times and in such manner as to replicate to the extent
possible the transfers which would have occurred to such
Trust Fund had this Act not been enacted.
______

SA 120. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. 201. EXTENSION AND MODIFICATIONS OF INCREASED EXPENSING
FOR SMALL BUSINESSES.

(a) Extension.--Section 179 (relating to election to
expense certain depreciable business assets) is amended by
striking ``2010'' each place it appears and inserting
``2011''.
(b) Increase in Limit and Phaseout Threshold for Expensing
for Small Business.--
(1) In general.--Paragraph (1) of section 179(b) of the
Internal Revenue Code of 1986 (relating to dollar
limitation), as amended by subsection (a), is amended by
striking ``$25,000 ($100,000 in the case of taxable years
beginning after 2002 and before 2011)'' and inserting
``$25,000 ($150,000 in the case of taxable years beginning
after 2007 and before 2011)''.
(2) Increase in qualifying investment at which phaseout
begins.--Paragraph (2) of section 179(b) of such Code
(relating to reduction in limitation), as amended by
subsection (a), is amended by striking ``$200,000 ($400,000
in the case of taxable years beginning after 2002 and before
2011)'' and inserting ``$200,000 ($600,000 in the case of
taxable years beginning after 2007 and before 2011)''.
(3) Inflation adjustments.--Section 179(b)(5)(A) of such
Code (relating to inflation adjustments), as amended by
subsection (a), is amended--
(A) in the matter preceding clause (i)--
(i) by striking ``after 2003 and before 2011'' and
inserting ``after 2008 and before 2011'', and
(ii) by striking ``the $100,000 and $400,000 amounts'' and
inserting ``the $150,000 and $600,000 amounts'', and
(B) in clause (ii), by striking ``calendar year 2002'' and
inserting ``calendar year 2007''.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2007.

______

SA 121. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. 201. EXTENSION AND MODIFICATIONS OF INCREASED EXPENSING
FOR SMALL BUSINESSES.

(a) Extension.--Section 179 (relating to election to
expense certain depreciable business assets) is amended by
striking ``2010'' each place it appears and inserting
``2011''.
(b) Increase in Limit and Phaseout Threshold for Expensing
for Small Business.--
(1) In general.--Paragraph (1) of section 179(b) of the
Internal Revenue Code of 1986 (relating to dollar
limitation), as amended by subsection (a), is amended by
striking ``$25,000 ($100,000 in the case of taxable years
beginning after 2002 and before 2011)'' and inserting
``$25,000 ($150,000 in the case of taxable years beginning
after 2007 and before 2011)''.
(2) Increase in qualifying investment at which phaseout
begins.--Paragraph (2) of section 179(b) of such Code
(relating to reduction in limitation), as amended by
subsection (a), is amended by striking ``$200,000 ($400,000
in the case of taxable years beginning after 2002 and before
2011)'' and inserting ``$200,000 ($600,000 in the case of
taxable years beginning after 2007 and before 2011)''.
(3) Inflation adjustments.--Section 179(b)(5)(A) of such
Code (relating to inflation adjustments), as amended by
subsection (a), is amended--
(A) in the matter preceding clause (i)--
(i) by striking ``after 2003 and before 2011'' and
inserting ``after 2008 and before 2011'', and
(ii) by striking ``the $100,000 and $400,000 amounts'' and
inserting ``the $150,000 and $600,000 amounts'', and
(B) in clause (ii), by striking ``calendar year 2002'' and
inserting ``calendar year 2007''.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after December 31,
2007.

______

SA 122. Ms. SNOWE (for herself and Mrs. Lincoln) submitted an
amendment intended to be proposed by her to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE YEAR
ENDING IN A MONTH FROM APRIL TO NOVEMBER.

(a) In General.--Part I of subchapter E of chapter 1
(relating to accounting periods) is amended by inserting
after section 444 the following new section:

``SEC. 444A. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE
YEAR ENDING IN A MONTH FROM APRIL TO NOVEMBER.

``(a) General Rule.--A qualified small business may elect
to have a taxable year, other than the required taxable year,
which ends on the last day of any of the months of

[[Page S934]]

April through November (or at the end of an equivalent annual
period (varying from 52 to 53 weeks)).
``(b) Years for Which Election Effective.--An election
under subsection (a)--
``(1) shall be made not later than the due date (including
extensions thereof) for filing the return of tax for the
first taxable year of the qualified small business, and
``(2) shall be effective for such first taxable year or
period and for all succeeding taxable years of such qualified
small business until such election is terminated under
subsection (c).
``(c) Termination.--
``(1) In general.--An election under subsection (a) shall
be terminated on the earliest of--
``(A) the first day of the taxable year following the
taxable year for which the entity fails to meet the gross
receipts test,
``(B) the date on which the entity fails to qualify as an S
corporation, or
``(C) the date on which the entity terminates.
``(2) Gross receipts test.--For purposes of paragraph (1),
an entity fails to meet the gross receipts test if the entity
fails to meet the gross receipts test of section 448(c).
``(3) Effect of termination.--An entity with respect to
which an election is terminated under this subsection shall
determine its taxable year for subsequent taxable years under
any other method that would be permitted under subtitle A.
``(4) Income inclusion and deduction rules for period after
termination.--If the termination of an election under
paragraph (1) results in a short taxable year--
``(A) items relating to net profits for the period
beginning on the day after its last fiscal year-end and
ending on the day before the beginning of the taxable year
determined under paragraph (3) shall be includible in income
ratably over the 4 taxable years following the year of
termination, or (if fewer) the number of taxable years equal
to the fiscal years for which the election under this section
was in effect, and
``(B) items relating to net losses for such period shall be
deductible in the first taxable year after the taxable year
with respect to which the election terminated.
``(d) Definitions.--For purposes of this section--
``(1) Qualified small business.--The term `qualified small
business' means an entity--
``(A)(i) for which an election under section 1362(a) is in
effect for the first taxable year or period of such entity
and for all subsequent years, or
``(ii) which is treated as a partnership for the first
taxable year or period of such entity for Federal income tax
purposes,
``(B) which conducts an active trade or business or which
would qualify for an election to amortize start-up
expenditures under section 195, and
``(C) which is a start-up business.
``(2) Start-up business.--For purposes of paragraph (1)(C),
an entity shall be treated as a start-up business so long as
not more than 75 percent of the entity is owned by any person
or persons who previously conducted a similar trade or
business at any time within the 1-year period ending on the
date on which such entity is formed. For purposes of the
preceding sentence, a person and any other person bearing a
relationship to such person specified in section 267(b) or
707(b)(1) shall be treated as one person, and sections 267(b)
and 707(b)(1) shall be applied as if section 267(c)(4)
provided that the family of an individual consists of the
individual's spouse and the individual's children under the
age of 21.
``(3) Required taxable year.--The term `required taxable
year' has the meaning given to such term by section 444(e).
``(e) Tiered Structures.--The Secretary shall prescribe
rules similar to the rules of section 444(d)(3) to eliminate
abuse of this section through the use of tiered
structures.''.
(b) Conforming Amendment.--Section 444(a)(1) is amended by
striking ``section'' and inserting ``section and section
444A''.
(c) Clerical Amendment.--The table of sections for part I
of subchapter E of chapter 1 is amended by inserting after
the item relating to section 444 the following new item:

``Sec. 444A. Qualified small businesses election of taxable year ending
in a month from April to November.''.

(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.

______

SA 123. Ms. SNOWE (for herself and Mrs. Lincoln) submitted an
amendment intended to be proposed by her to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE YEAR
ENDING IN A MONTH FROM APRIL TO NOVEMBER.

(a) In General.--Part I of subchapter E of chapter 1
(relating to accounting periods) is amended by inserting
after section 444 the following new section:

``SEC. 444A. QUALIFIED SMALL BUSINESSES ELECTION OF TAXABLE
YEAR ENDING IN A MONTH FROM APRIL TO NOVEMBER.

``(a) General Rule.--A qualified small business may elect
to have a taxable year, other than the required taxable year,
which ends on the last day of any of the months of April
through November (or at the end of an equivalent annual
period (varying from 52 to 53 weeks)).
``(b) Years for Which Election Effective.--An election
under subsection (a)--
``(1) shall be made not later than the due date (including
extensions thereof) for filing the return of tax for the
first taxable year of the qualified small business, and
``(2) shall be effective for such first taxable year or
period and for all succeeding taxable years of such qualified
small business until such election is terminated under
subsection (c).
``(c) Termination.--
``(1) In general.--An election under subsection (a) shall
be terminated on the earliest of--
``(A) the first day of the taxable year following the
taxable year for which the entity fails to meet the gross
receipts test,
``(B) the date on which the entity fails to qualify as an S
corporation, or
``(C) the date on which the entity terminates.
``(2) Gross receipts test.--For purposes of paragraph (1),
an entity fails to meet the gross receipts test if the entity
fails to meet the gross receipts test of section 448(c).
``(3) Effect of termination.--An entity with respect to
which an election is terminated under this subsection shall
determine its taxable year for subsequent taxable years under
any other method that would be permitted under subtitle A.
``(4) Income inclusion and deduction rules for period after
termination.--If the termination of an election under
paragraph (1) results in a short taxable year--
``(A) items relating to net profits for the period
beginning on the day after its last fiscal year-end and
ending on the day before the beginning of the taxable year
determined under paragraph (3) shall be includible in income
ratably over the 4 taxable years following the year of
termination, or (if fewer) the number of taxable years equal
to the fiscal years for which the election under this section
was in effect, and
``(B) items relating to net losses for such period shall be
deductible in the first taxable year after the taxable year
with respect to which the election terminated.
``(d) Definitions.--For purposes of this section--
``(1) Qualified small business.--The term `qualified small
business' means an entity--
``(A)(i) for which an election under section 1362(a) is in
effect for the first taxable year or period of such entity
and for all subsequent years, or
``(ii) which is treated as a partnership for the first
taxable year or period of such entity for Federal income tax
purposes,
``(B) which conducts an active trade or business or which
would qualify for an election to amortize start-up
expenditures under section 195, and
``(C) which is a start-up business.
``(2) Start-up business.--For purposes of paragraph (1)(C),
an entity shall be treated as a start-up business so long as
not more than 75 percent of the entity is owned by any person
or persons who previously conducted a similar trade or
business at any time within the 1-year period ending on the
date on which such entity is formed. For purposes of the
preceding sentence, a person and any other person bearing a
relationship to such person specified in section 267(b) or
707(b)(1) shall be treated as one person, and sections 267(b)
and 707(b)(1) shall be applied as if section 267(c)(4)
provided that the family of an individual consists of the
individual's spouse and the individual's children under the
age of 21.
``(3) Required taxable year.--The term `required taxable
year' has the meaning given to such term by section 444(e).
``(e) Tiered Structures.--The Secretary shall prescribe
rules similar to the rules of section 444(d)(3) to eliminate
abuse of this section through the use of tiered
structures.''.
(b) Conforming Amendment.--Section 444(a)(1) is amended by
striking ``section'' and inserting ``section and section
444A''.
(c) Clerical Amendment.--The table of sections for part I
of subchapter E of chapter 1 is amended by inserting after
the item relating to section 444 the following new item:

``Sec. 444A. Qualified small businesses election of taxable year ending
in a month from April to November.''.

(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.

______

SA 124. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. ESTABLISHMENT OF SIMPLE CAFETERIA PLANS FOR SMALL
BUSINESSES.

(a) In General.--Section 125 (relating to cafeteria plans)
is amended by redesignating

[[Page S935]]

subsections (h) and (i) as subsections (i) and (j),
respectively, and by inserting after subsection (g) the
following new subsection:
``(h) Simple Cafeteria Plans for Small Businesses.--
``(1) In general.--An eligible employer maintaining a
simple cafeteria plan with respect to which the requirements
of this subsection are met for any year shall be treated as
meeting any applicable nondiscrimination requirement with
respect to benefits provided under the plan during such year.
``(2) Simple cafeteria plan.--For purposes of this
subsection, the term `simple cafeteria plan' means a
cafeteria plan--
``(A) which is established and maintained by an eligible
employer, and
``(B) with respect to which the contribution requirements
of paragraph (3), and the eligibility and participation
requirements of paragraph (4), are met.
``(3) Contributions requirements.--
``(A) In general.--The requirements of this paragraph are
met if, under the plan--
``(i) the employer makes matching contributions on behalf
of each employee who is eligible to participate in the plan
and who is not a highly compensated or key employee in an
amount equal to the elective plan contributions of the
employee to the plan to the extent the employee's elective
plan contributions do not exceed 3 percent of the employee's
compensation, or
``(ii) the employer is required, without regard to whether
an employee makes any elective plan contribution, to make a
contribution to the plan on behalf of each employee who is
not a highly compensated or key employee and who is eligible
to participate in the plan in an amount equal to at least 2
percent of the employee's compensation.
``(B) Matching contributions on behalf of highly
compensated and key employees.--The requirements of
subparagraph (A)(i) shall not be treated as met if, under the
plan, the rate of matching contribution with respect to any
elective plan contribution of a highly compensated or key
employee at any rate of contribution is greater than that
with respect to an employee who is not a highly compensated
or key employee.
``(C) Special rules.--
``(i) Time for making contributions.--An employer shall not
be treated as failing to meet the requirements of this
paragraph with respect to any elective plan contributions of
any compensation, or employer contributions required under
this paragraph with respect to any compensation, if such
contributions are made no later than the 15th day of the
month following the last day of the calendar quarter which
includes the date of payment of the compensation.
``(ii) Form of contributions.--Employer contributions
required under this paragraph may be made either to the plan
to provide benefits offered under the plan or to any person
as payment for providing benefits offered under the plan.
``(iii) Additional contributions.--Subject to subparagraph
(B), nothing in this paragraph shall be treated as
prohibiting an employer from making contributions to the plan
in addition to contributions required under subparagraph (A).
``(D) Definitions.--For purposes of this paragraph--
``(i) Elective plan contribution.--The term `elective plan
contribution' means any amount which is contributed at the
election of the employee and which is not includible in gross
income by reason of this section.
``(ii) Highly compensated employee.--The term `highly
compensated employee' has the meaning given such term by
section 414(q).
``(iii) Key employee.--The term `key employee' has the
meaning given such term by section 416(i).
``(4) Minimum eligibility and participation requirements.--
``(A) In general.--The requirements of this paragraph shall
be treated as met with respect to any year if, under the
plan--
``(i) all employees who had at least 1,000 hours of service
for the preceding plan year are eligible to participate, and
``(ii) each employee eligible to participate in the plan
may, subject to terms and conditions applicable to all
participants, elect any benefit available under the plan.
``(B) Certain employees may be excluded.--For purposes of
subparagraph (A)(i), an employer may elect to exclude under
the plan employees--
``(i) who have less than 1 year of service with the
employer as of any day during the plan year,
``(ii) who have not attained the age of 21 before the close
of a plan year,
``(iii) who are covered under an agreement which the
Secretary of Labor finds to be a collective bargaining
agreement if there is evidence that the benefits covered
under the cafeteria plan were the subject of good faith
bargaining between employee representatives and the employer,
or
``(iv) who are described in section 410(b)(3)(C) (relating
to nonresident aliens working outside the United States).

A plan may provide a shorter period of service or younger age
for purposes of clause (i) or (ii).
``(5) Eligible employer.--For purposes of this subsection--
``(A) In general.--The term `eligible employer' means, with
respect to any year, any employer if such employer employed
an average of 100 or fewer employees on business days during
either of the 2 preceding years. For purposes of this
subparagraph, a year may only be taken into account if the
employer was in existence throughout the year.
``(B) Employers not in existence during preceding year.--If
an employer was not in existence throughout the preceding
year, the determination under subparagraph (A) shall be based
on the average number of employees that it is reasonably
expected such employer will employ on business days in the
current year.
``(C) Growing employers retain treatment as small
employer.--If--
``(i) an employer was an eligible employer for any year (a
`qualified year'), and
``(ii) such employer establishes a simple cafeteria plan
for its employees for such year,

then, notwithstanding the fact the employer fails to meet the
requirements of subparagraph (A) for any subsequent year,
such employer shall be treated as an eligible employer for
such subsequent year with respect to employees (whether or
not employees during a qualified year) of any trade or
business which was covered by the plan during any qualified
year. This subparagraph shall cease to apply if the employer
employs an average of 200 more employees on business days
during any year preceding any such subsequent year.
``(D) Special rules.--The rules of section 220(c)(4)(D)
shall apply for purposes of this paragraph.
``(6) Applicable nondiscrimination requirement.--For
purposes of this subsection, the term `applicable
nondiscrimination requirement' means any requirement under
subsection (b) of this section, section 79(d), section
105(h), or paragraph (2), (3), (4), or (8) of section 129(d).
``(7) Compensation.--The term `compensation' has the
meaning given such term by section 414(s).''
(b) Effective Date.--The amendments made by this section
shall apply to years beginning after December 31, 2006.
______

SA 125. Ms. SNOWE submitted an amendment intended to be proposed by
her to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. ESTABLISHMENT OF SIMPLE CAFETERIA PLANS FOR SMALL
BUSINESSES.

(a) In General.--Section 125 (relating to cafeteria plans)
is amended by redesignating subsections (h) and (i) as
subsections (i) and (j), respectively, and by inserting after
subsection (g) the following new subsection:
``(h) Simple Cafeteria Plans for Small Businesses.--
``(1) In general.--An eligible employer maintaining a
simple cafeteria plan with respect to which the requirements
of this subsection are met for any year shall be treated as
meeting any applicable nondiscrimination requirement with
respect to benefits provided under the plan during such year.
``(2) Simple cafeteria plan.--For purposes of this
subsection, the term `simple cafeteria plan' means a
cafeteria plan--
``(A) which is established and maintained by an eligible
employer, and
``(B) with respect to which the contribution requirements
of paragraph (3), and the eligibility and participation
requirements of paragraph (4), are met.
``(3) Contributions requirements.--
``(A) In general.--The requirements of this paragraph are
met if, under the plan--
``(i) the employer makes matching contributions on behalf
of each employee who is eligible to participate in the plan
and who is not a highly compensated or key employee in an
amount equal to the elective plan contributions of the
employee to the plan to the extent the employee's elective
plan contributions do not exceed 3 percent of the employee's
compensation, or
``(ii) the employer is required, without regard to whether
an employee makes any elective plan contribution, to make a
contribution to the plan on behalf of each employee who is
not a highly compensated or key employee and who is eligible
to participate in the plan in an amount equal to at least 2
percent of the employee's compensation.
``(B) Matching contributions on behalf of highly
compensated and key employees.--The requirements of
subparagraph (A)(i) shall not be treated as met if, under the
plan, the rate of matching contribution with respect to any
elective plan contribution of a highly compensated or key
employee at any rate of contribution is greater than that
with respect to an employee who is not a highly compensated
or key employee.
``(C) Special rules.--
``(i) Time for making contributions.--An employer shall not
be treated as failing to meet the requirements of this
paragraph with respect to any elective plan contributions of
any compensation, or employer contributions required under
this paragraph with respect to any compensation, if such
contributions are made no later than the 15th day of the
month following the last day of the calendar quarter which
includes the date of payment of the compensation.
``(ii) Form of contributions.--Employer contributions
required under this paragraph

[[Page S936]]

may be made either to the plan to provide benefits offered
under the plan or to any person as payment for providing
benefits offered under the plan.
``(iii) Additional contributions.--Subject to subparagraph
(B), nothing in this paragraph shall be treated as
prohibiting an employer from making contributions to the plan
in addition to contributions required under subparagraph (A).
``(D) Definitions.--For purposes of this paragraph--
``(i) Elective plan contribution.--The term `elective plan
contribution' means any amount which is contributed at the
election of the employee and which is not includible in gross
income by reason of this section.
``(ii) Highly compensated employee.--The term `highly
compensated employee' has the meaning given such term by
section 414(q).
``(iii) Key employee.--The term `key employee' has the
meaning given such term by section 416(i).
``(4) Minimum eligibility and participation requirements.--
``(A) In general.--The requirements of this paragraph shall
be treated as met with respect to any year if, under the
plan--
``(i) all employees who had at least 1,000 hours of service
for the preceding plan year are eligible to participate, and
``(ii) each employee eligible to participate in the plan
may, subject to terms and conditions applicable to all
participants, elect any benefit available under the plan.
``(B) Certain employees may be excluded.--For purposes of
subparagraph (A)(i), an employer may elect to exclude under
the plan employees--
``(i) who have less than 1 year of service with the
employer as of any day during the plan year,
``(ii) who have not attained the age of 21 before the close
of a plan year,
``(iii) who are covered under an agreement which the
Secretary of Labor finds to be a collective bargaining
agreement if there is evidence that the benefits covered
under the cafeteria plan were the subject of good faith
bargaining between employee representatives and the employer,
or
``(iv) who are described in section 410(b)(3)(C) (relating
to nonresident aliens working outside the United States).

A plan may provide a shorter period of service or younger age
for purposes of clause (i) or (ii).
``(5) Eligible employer.--For purposes of this subsection--
``(A) In general.--The term `eligible employer' means, with
respect to any year, any employer if such employer employed
an average of 100 or fewer employees on business days during
either of the 2 preceding years. For purposes of this
subparagraph, a year may only be taken into account if the
employer was in existence throughout the year.
``(B) Employers not in existence during preceding year.--If
an employer was not in existence throughout the preceding
year, the determination under subparagraph (A) shall be based
on the average number of employees that it is reasonably
expected such employer will employ on business days in the
current year.
``(C) Growing employers retain treatment as small
employer.--If--
``(i) an employer was an eligible employer for any year (a
`qualified year'), and
``(ii) such employer establishes a simple cafeteria plan
for its employees for such year,

then, notwithstanding the fact the employer fails to meet the
requirements of subparagraph (A) for any subsequent year,
such employer shall be treated as an eligible employer for
such subsequent year with respect to employees (whether or
not employees during a qualified year) of any trade or
business which was covered by the plan during any qualified
year. This subparagraph shall cease to apply if the employer
employs an average of 200 more employees on business days
during any year preceding any such subsequent year.
``(D) Special rules.--The rules of section 220(c)(4)(D)
shall apply for purposes of this paragraph.
``(6) Applicable nondiscrimination requirement.--For
purposes of this subsection, the term `applicable
nondiscrimination requirement' means any requirement under
subsection (b) of this section, section 79(d), section
105(h), or paragraph (2), (3), (4), or (8) of section 129(d).
``(7) Compensation.--The term `compensation' has the
meaning given such term by section 414(s).''
(b) Effective Date.--The amendments made by this section
shall apply to years beginning after December 31, 2006.
______

SA 126. Mr. FEINGOLD submitted an amendment intended to be proposed
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. HEALTH PROFESSIONS TRAINING DEMONSTRATION PROJECT.

Section 171 of the Workforce Investment Act of 1998 (29
U.S.C. 2916) is amended by adding at the end the following:
``(e) Health Professions Training Demonstration Project.--
``(1) Definitions.--In this subsection:
``(A) Covered community.--The term `covered community'
means a community or region that--
``(i) has experienced a significant percentage decline in
positions in the manufacturing or service sectors; and
``(ii)(I) is eligible for designation under section 332 of
the Public Health Service Act (42 U.S.C. 254e) as a health
professional shortage area;
``(II) is eligible to be served by a health center under
section 330 or a grantee under section 330(h) (relating to
homeless individuals) of the Public Health Service Act (42
U.S.C. 254b, 254b(h));
``(III) has a shortage of personal health services, as
determined under criteria issued by the Secretary of Health
and Human Services under section 1861(aa)(2) of the Social
Security Act (relating to rural health clinics) (42 U.S.C.
1395x(aa)(2)); or
``(IV) is designated by a Governor (in consultation with
the medical community) as a shortage area or medically
underserved community.
``(B) Covered worker.--The term `covered worker' means an
individual who--
``(i)(I) has been terminated or laid off, or who has
received a notice of termination or layoff, from employment
in a manufacturing or service sector;
``(II)(aa) is eligible for or has exhausted entitlement to
unemployment compensation; or
``(bb) has been employed for a duration sufficient to
demonstrate, to the appropriate entity at a one-stop center
referred to in section 134(c), attachment to the workforce,
but is not eligible for unemployment compensation due to
insufficient earnings or having performed services for an
employer that were not covered under a State unemployment
compensation law; and
``(III) is unlikely to return to a previous industry or
occupation; or
``(ii)(I) has been terminated or laid off, or has received
a notice of termination or layoff, from employment in a
manufacturing or service sector as a result of any permanent
closure of, or any substantial layoff at, a plant, facility,
or enterprise; or
``(II) is employed in a manufacturing or service sector at
a facility at which the employer has made a general
announcement that such facility will close within 180 days.
``(C) Health care professional.--The term `health care
professional'--
``(i) means an individual who is involved with--

``(I) the delivery of health care services, or related
services, pertaining to--

``(aa) the identification, evaluation, and prevention of
diseases, disorders, or injuries; or
``(bb) home-based or community-based long-term care;

``(II) the delivery of dietary and nutrition services; or
``(III) rehabilitation and health systems management; and

``(ii) includes nurses, home health aides, nursing
assistants, physician assistants, dental hygienists,
diagnostic medical sonographers, dietitians, medical
technologists, occupational therapists, physical therapists,
radiographers, respiratory therapists, emergency medical
service technicians, speech-language pathologists, and
specific occupational needs of the community served by the
eligible entities as defined in section (e)(4) of this Act.
``(2) Establishment of project.--In accordance with
subsection (b), the Secretary shall establish and carry out a
health professions training demonstration project.
``(3) Grants.--In carrying out the project, the Secretary,
after consultation with the Secretary of Health and Human
Services, shall make grants to eligible entities to enable
the entities to carry out programs in covered communities to
train covered workers for employment as health care
professionals. The Secretary shall make each grant in an
amount of not less than $100,000 and not more than $500,000.
``(4) Eligible entities.--Notwithstanding subsection
(b)(2)(B), to be eligible to receive a grant under this
subsection to carry out a program in a covered community, an
entity shall be a partnership that is--
``(A) under the direction of a local workforce investment
board established under section 117 that is serving the
covered community; and
``(B) composed of members serving the covered community,
such as--
``(i) a 4-year institution of higher education;
``(ii) an accredited community college;
``(iii) an accredited vocational or technical school;
``(iv) a health clinic or hospital;
``(v) a home-based or community-based long-term care
facility or program; or
``(vi) a health care facility administered by the Secretary
of Veterans Affairs.
``(5) Applications.--To be eligible to receive a grant
under this subsection, an entity shall submit an application
to the Secretary at such time, in such manner, and containing
such information as the Secretary may require, including, at
a minimum--
``(A) a proposal to use the grant funds to establish or
expand a training program in order to train covered workers
for employment as health care professionals or
paraprofessionals;
``(B) information demonstrating the need for the training
and support services to be provided through the program;
``(C) information describing the manner in which the entity
will expend the grant funds,

[[Page S937]]

and the activities to be carried out with the funds;
``(D) information demonstrating that the entity meets the
requirements of paragraph (4); and
``(E) with respect to training programs carried out by the
applicant, information--
``(i) on the graduation rates of the programs involved;
``(ii) on the retention measures carried out by the
applicant;
``(iii) on the length of time necessary to complete the
training programs of the applicant; and
``(iv) on the number of qualified trainees that are refused
admittance into the training programs because of lack of
capacity.
``(6) Selection.--In making grants under paragraph (3), the
Secretary, after consultation with the Secretary of Health
and Human Services, shall--
``(A) consider the date submitted by the applicant under
paragraph (5)(E); and
``(B) select--
``(i) eligible entities submitting applications that meet
such criteria as the Secretary of Labor determines to be
appropriate; and
``(ii) among such entities, the eligible entities serving
the covered communities with the greatest need for the grants
and the greatest potential to benefit from the grants.
``(7) Use of funds.--
``(A) In general.--An entity that receives a grant under
this subsection shall use the funds made available through
the grant for training and support services that meet the
needs described in the application submitted under paragraph
(5), which may include--
``(i) increasing capacity, subject to subparagraph (B)(i),
at an educational institution or training center to train
individuals for employment as health professionals, such as
by--

``(I) expanding a facility, subject to subparagraph
(B)(ii);
``(II) expanding course offerings;
``(III) hiring faculty;
``(IV) providing a student loan repayment program for the
faculty;
``(V) establishing or expanding clinical education
opportunities;
``(VI) purchasing equipment, such as computers, books,
clinical supplies, or a patient simulator; or
``(VII) conducting recruitment; or

``(ii) providing support services for covered workers
participating in the training, such as--

``(I) providing tuition assistance;
``(II) establishing or expanding distance education
programs;
``(III) providing transportation assistance; or
``(IV) providing child care.

``(B) Limitation.--To be eligible to use the funds to
expand a facility, the eligible entity shall demonstrate to
the Secretary in an application submitted under paragraph (5)
that the entity can increase the capacity described in
subparagraph (E)(iv) of such facility only by expanding the
facility.
``(8) Funding.--Of the amounts appropriated to, and
available at the discretion of, the Secretary or the
Secretary of Health and Human Services for programmatic and
administrative expenditures, a total of $25,000,000 shall be
used to establish and carry out the demonstration project
described in paragraph (2) in accordance with this
subsection.''.

______

SA 127. Mr. FEINGOLD submitted an amendment intended to be proposed
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the end, add the following:

SEC. 4. ANNUAL REPORT ON ACQUISITIONS OF ARTICLES, MATERIALS,
AND SUPPLIES MANUFACTURED OUTSIDE THE UNITED
STATES.

Section 2 of the Buy American Act (41 U.S.C. 10a) is
amended--
(1) by striking ``Notwithstanding'' and inserting the
following:
``(a) In General.--Notwithstanding''; and
(2) by adding at the end the following:
``(b) Reports.--
``(1) In general.--Not later than 180 days after the end of
each fiscal year, the head of each Federal agency shall
submit a report to Congress on the amount of the acquisitions
made by the agency of articles, materials, or supplies
purchased from entities that manufacture the articles,
materials, or supplies outside of the United States in that
fiscal year.
``(2) Contents of report.--The report required by paragraph
(1) shall separately include--
``(A) the dollar value of any articles, materials, or
supplies that were manufactured outside the United States;
``(B) an itemized list of all waivers granted with respect
to such articles, materials, or supplies under this Act, and
a citation to the treaty, international agreement, or other
law under which each waiver was granted;
``(C) if any articles, materials, or supplies were acquired
from entities that manufacture articles, materials, or
supplies outside the United States, the specific exception
under this section that was used to purchase such articles,
materials, or supplies; and
``(D) a summary of--
``(i) the total procurement funds expended on articles,
materials, and supplies manufactured inside the United
States; and
``(ii) the total procurement funds expended on articles,
materials, and supplies manufactured outside the United
States.
``(3) Public availability.--The head of each Federal agency
submitting a report under paragraph (1) shall make the report
publicly available to the maximum extent practicable.
``(4) Exception for intelligence community.--This
subsection shall not apply to acquisitions made by an agency,
or component thereof, that is an element of the intelligence
community as specified in, or designated under, section 3(4)
of the National Security Act of 1947 (50 U.S.C. 401a(4)).''.

______

SA 128. Mr. KERRY (for himself and Ms. Snowe) submitted an amendment
intended to be proposed by him to the bill H.R. 2, to amend the Fair
Labor Standards Act of 1938 to provide for an increase in the Federal
minimum wage; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. SMALL BUSINESS REGULATORY ASSISTANCE.

(a) Purpose.--The purpose of this section is to establish a
4-year pilot program to--
(1) provide confidential assistance to small business
concerns;
(2) provide small business concerns with the information
necessary to improve their rate of compliance with Federal
and State regulations derived from Federal law;
(3) create a partnership among Federal agencies to increase
outreach efforts to small business concerns with respect to
regulatory compliance;
(4) provide a mechanism for unbiased feedback to Federal
agencies on the regulatory environment for small business
concerns; and
(5) expand the services delivered by the Small Business
Development Centers under section 21(c)(3)(H) of the Small
Business Act to improve access to programs to assist small
business concerns with regulatory compliance.
(b) Definitions.--In this section, the following
definitions shall apply:
(1) Administration.--The term ``Administration'' means the
Small Business Administration.
(2) Administrator.--The term ``Administrator'' means the
Administrator of the Administration, acting through the
Associate Administrator for Small Business Development
Centers.
(3) Association.--The term ``association'' means the
association established pursuant to section 21(a)(3)(A) of
the Small Business Act (15 U.S.C. 648(a)(3)(A)) representing
a majority of Small Business Development Centers.
(4) Participating small business development center.--The
term ``participating Small Business Development Center''
means a Small Business Development Center participating in
the pilot program established under this section.
(5) Regulatory compliance assistance.--The term
``regulatory compliance assistance'' means assistance
provided by a Small Business Development Center to a small
business concern to assist and facilitate the concern in
complying with Federal and State regulatory requirements
derived from Federal law.
(6) Small business development center.--The term ``Small
Business Development Center'' means a Small Business
Development Center described in section 21 of the Small
Business Act (15 U.S.C. 648).
(7) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, the Virgin Islands, American Samoa, and Guam.
(c) Small Business Regulatory Assistance Pilot Program.--
(1) Authority.--In accordance with this section, the
Administrator shall establish a pilot program to provide
regulatory compliance assistance to small business concerns
through participating Small Business Development Centers.
(2) Small business development centers.--
(A) In general.--In carrying out the pilot program
established under this section, the Administrator shall enter
into arrangements with participating Small Business
Development Centers under which such Centers shall--
(i) provide access to information and resources, including
current Federal and State nonpunitive compliance and
technical assistance programs similar to those established
under section 507 of the Clean Air Act Amendments of 1990 (42
U.S.C. 7661f);
(ii) conduct training and educational activities;
(iii) offer confidential, free-of-charge, one-on-one, in-
depth counseling to the owners and operators of small
business concerns regarding compliance with Federal and State
regulations derived from Federal law, provided that such
counseling is not considered to be the practice of law in a
State in which a Small Business Development Center is located
or in which such counseling is conducted;
(iv) provide technical assistance;
(v) give referrals to experts and other providers of
compliance assistance who meet such standards for
educational, technical, and professional competency as are
established by the Administrator; and

[[Page S938]]

(vi) form partnerships with Federal compliance programs.
(B) Reports.--Each participating Small Business Development
Center shall transmit to the Administrator and the Chief
Counsel for Advocacy of the Administration, as the
Administrator may direct, a quarterly report that includes--
(i) a summary of the regulatory compliance assistance
provided by the Center under the pilot program;
(ii) the number of small business concerns assisted under
the pilot program; and
(iii) for every fourth report, any regulatory compliance
information based on Federal law that a Federal or State
agency has provided to the Center during the preceding year
and requested that it be disseminated to small business
concerns.
(3) Eligibility.--A Small Business Development Center shall
be eligible to receive assistance under the pilot program
established under this section only if such Center is
certified under section 21(k)(2) of the Small Business Act
(15 U.S.C. 648(k)(2)).
(4) Selection of participating state programs.--
(A) Groupings.--
(i) Consultation.--In consultation with the association,
and giving substantial weight to the recommendations of the
association, the Administrator shall select the Small
Business Development Center Programs of 2 States from each of
the groups of States described in clauses (ii) through (xi)
to participate in the pilot program established under this
section.
(ii) Group 1.--Group 1 shall consist of Maine,
Massachusetts, New Hampshire, Connecticut, Vermont, and Rhode
Island.
(iii) Group 2.--Group 2 shall consist of New York, New
Jersey, Puerto Rico, and the Virgin Islands.
(iv) Group 3.--Group 3 shall consist of Pennsylvania,
Maryland, West Virginia, Virginia, the District of Columbia,
and Delaware.
(v) Group 4.--Group 4 shall consist of Georgia, Alabama,
North Carolina, South Carolina, Mississippi, Florida,
Kentucky, and Tennessee.
(vi) Group 5.--Group 5 shall consist of Illinois, Ohio,
Michigan, Indiana, Wisconsin, and Minnesota.
(vii) Group 6.--Group 6 shall consist of Texas, New Mexico,
Arkansas, Oklahoma, and Louisiana.
(viii) Group 7.--Group 7 shall consist of Missouri, Iowa,
Nebraska, and Kansas.
(ix) Group 8.--Group 8 shall consist of Colorado, Wyoming,
North Dakota, South Dakota, Montana, and Utah.
(x) Group 9.--Group 9 shall consist of California, Guam,
American Samoa, Hawaii, Nevada, and Arizona.
(xi) Group 10.--Group 10 shall consist of Washington,
Alaska, Idaho, and Oregon.
(B) Deadline for selection.--The Administrator shall make
selections under this paragraph not later than 60 days after
the date of publication of final regulations under subsection
(d).
(C) Coordination to avoid duplication with other
programs.--In selecting Small Business Development Center
Programs under this paragraph, the Administrator shall give a
preference to any such program that has a plan for consulting
with Federal and State agencies to ensure that any assistance
provided under this section is not duplicated by a Federal or
State program.
(5) Matching requirement.--Subparagraphs (A) and (B) of
section 21(a)(4) of the Small Business Act (15 U.S.C.
648(a)(4)) shall apply to assistance made available under the
pilot program established under this section.
(6) Grant amounts.--Each State program selected to receive
a grant under paragraph (4) shall be eligible to receive a
grant in an amount equal to--
(A) not less than $150,000 per fiscal year; and
(B) not more than $300,000 per fiscal year.
(7) Evaluation and report.--The Comptroller General of the
United States shall--
(A) not later than 30 months after the date of disbursement
of the first grant under the pilot program established under
this section, initiate an evaluation of the pilot program;
and
(B) not later than 6 months after the date of the
initiation of the evaluation under subparagraph (A), transmit
to the Administrator, the Committee on Small Business and
Entrepreneurship of the Senate, and the Committee on Small
Business of the House of Representatives, a report
containing--
(i) the results of the evaluation; and
(ii) any recommendations as to whether the pilot program,
with or without modification, should be extended to include
the participation of all Small Business Development Centers.
(8) Authorization of appropriations.--
(A) In general.--There are authorized to be appropriated to
carry out this section--
(i) $5,000,000 for the first fiscal year beginning after
the date of enactment of this Act; and
(ii) $5,000,000 for each of the 3 fiscal years following
the fiscal year described in clause (i).
(B) Limitation on use of other funds.--The Administrator
may carry out the pilot program established under this
section only with amounts appropriated in advance
specifically to carry out this section.
(9) Termination.--The Small Business Regulatory Assistance
Pilot Program established under this section shall terminate
4 years after the date of disbursement of the first grant
under the pilot program.
(d) Rulemaking.--After providing notice and an opportunity
for comment, and after consulting with the association (but
not later than 180 days after the date of enactment of this
Act), the Administrator shall promulgate final regulations to
carry out this section, including regulations that
establish--
(1) priorities for the types of assistance to be provided
under the pilot program established under this section;
(2) standards relating to educational, technical, and
support services to be provided by participating Small
Business Development Centers;
(3) standards relating to any national service delivery and
support function to be provided by the association under the
pilot program;
(4) standards relating to any work plan that the
Administrator may require a participating Small Business
Development Center to develop; and
(5) standards relating to the educational, technical, and
professional competency of any expert or other assistance
provider to whom a small business concern may be referred for
compliance assistance under the pilot program.
______

SA 129. Mr. INHOFE submitted an amendment intended to be proposed to
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place insert the following:

SEC. ___. MODIFICATION OF DETERMINATION OF EXCLUSION FOR
TRACTORS WEIGHING NOT MORE THAN 19,500 POUNDS
FROM FEDERAL EXCISE TAX ON HEAVY TRUCKS AND
TRAILERS.

(a) In General.--Subparagraph (B) of section 4051(a)(4) is
amended to read as follows:
``(B) the gross combined weight (as determined by the
Secretary) of such tractor, in combination with a trailer or
a semitrailer, does not exceed the tractor's gross vehicle
weight by 26,000 pounds or more.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the amendment made by
section 11112(a) of Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users.
______

SA 130. Mr. VOINOVICH submitted an amendment intended to be proposed
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place insert the following:

SEC. __. EXTENSION OF WORK OPPORTUNITY TAX CREDIT TO
QUALIFIED RESTAURANT EMPLOYEES.

(a) In General.--Section 51(d)(1) of the Internal Revenue
Code of 1986 is amended by striking ``or'' at the end of
subparagraph (H), by striking the period at the end of
subparagraph (I) and inserting ``, or'', and by adding at the
end the following new subparagraph:
``(J) a qualified restaurant employee.''.
(b) Qualified Restaurant Employee.--Section 51(d) of the
Internal Revenue Code of 1986 is amended by redesignating
paragraphs (11) through (13) as paragraphs (12) through (14),
respectively, and by inserting after paragraph (10) the
following new paragraph:
``(11) Qualified restaurant employee.--
``(A) In general.--The term `qualified restaurant employee'
means any individual--
``(i) who performs services in a restaurant where tipping
is not customary,
``(ii) who is not exempt under the Fair Labor Standards Act
and earns at least the Federal minimum wage, and
``(iii) who is certified by the employer during the hiring
process as having attained age 16 but not 20 on the hiring
date.
``(B) Special rule for determining amount of credit.--For
purposes of applying this subpart to wages paid or incurred
to any qualified restaurant employee, subsection (b)(3) shall
be applied by substituting `$3,000' for `$6,000'.''.
(c) Special Rule for Certifications.--Subparagraph (A) of
section 51(d)(14) of the Internal Revenue Code of 1986, as
redesignated by subsection (b), is amended by inserting ``,
other than an individual described in paragraph (11),'' after
``An individual''.
(d) Nonqualifying Rehires.--Paragraph (2) of section 51(i)
of the Internal Revenue Code of 1986 is amended to read as
follows:
``(2) Nonqualifying rehires.--
``(A) In general.--No wages shall be taken into account
under subsection (a) with respect to any individual, other
than an individual described in subsection (d)(11), if, prior
to the hiring date of such individual, such individual had
been employed by the employer at any time.
``(B) Qualified restaurant employees.--In the case of an
individual described in subsection (d)(11), no wages shall be
taken into account under subsection (a) if, prior to the
hiring date of such individual, such individual had been
employed by the employer within the prior 90 day period.''.
(e) Minimum Employment Periods.--Section 51(i)(3) of the
Internal Revenue Code of

[[Page S939]]

1986 is amended by adding at the end the following new
subparagraph:
``(C) Nonapplication to qualified restaurant employees.--
Subparagraphs (A) and (B) shall not apply to an individual
described in subsection (d)(11).''.
(f) Effective Date.--The amendments made by this section
shall apply to individuals who begin work for the employer
after the date of the enactment of this Act.
______

SA 131. Mr. VOINOVICH submitted an amendment intended to be proposed
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place insert the following:

SEC. ___. DEDUCTIBILITY OF INTEREST EXPENSE INCURRED BY
ELECTING SMALL BUSINESS TRUST TO ACQUIRE S
CORPORATION STOCK.

(a) In General.--Subparagraph (C) of section 641(c)(2) of
the Internal Revenue Code of 1986 (relating to modifications)
is amended by inserting after clause (iii) the following new
clause:
``(iv) Any interest expense incurred to acquire stock in an
S corporation.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.
______

SA 132. Mr. SMITH (for himself and Mr. Schumer) submitted an
amendment intended to be proposed by him to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. EXPANSION OF DEDUCTION FOR HEALTH INSURANCE COSTS OF
SELF-EMPLOYED INDIVIDUALS.

(a) In General.--Paragraph (1) of section 162(l) of the
Internal Revenue Code of 1986 (relating to special rules for
health insurance costs of self-employed individuals) is
amended to read as follows:
``(1) Allowance of deduction.--In the case of a taxpayer
who is an employee within the meaning of section 401(c)(1),
there shall be allowed as a deduction under this section an
amount equal to the amount paid during the taxable year for
insurance which constitutes medical care for--
``(A) the taxpayer,
``(B) the taxpayer's spouse,
``(C) the taxpayer's dependents,
``(D) any individual--
``(i) who was not the spouse, determined without regard to
section 7703, of the taxpayer at any time during the taxable
year of the taxpayer,
``(ii) who--

``(I) has not attained the age of 19 as of the close of the
calendar year in which the taxable year of the taxpayer
begins, or
``(II) is a student who has not attained the age of 24 as
of the close of such calendar year,

``(iii) who, for the taxable year of the taxpayer, has the
same principal place of abode as the taxpayer and is a member
of the taxpayer's household, and
``(iv) with respect to whom the taxpayer provides over one-
half of the individual's support for the calendar year in
which the taxpayer's taxable year begins, and
``(E) an individual--
``(i) who is designated by the taxpayer for purposes of
this paragraph,
``(ii) who is not the spouse or qualifying child of such
taxpayer or any other taxpayer for any taxable year beginning
in the calendar year in which the taxpayer's taxable year
begins, and
``(iii) who, for the taxable year of the taxpayer, has the
same principal place of abode as the taxpayer and is a member
of the taxpayer's household.

For purposes of subparagraph (E)(i), not more than 1 person
may be designated by the taxpayer for any taxable year.''.
(b) Conforming Amendment.--Subparagraph (B) of section
162(l)(2) of the Internal Revenue Code of 1986 is amended by
striking ``or of the spouse of the taxpayer'' and inserting
``, of the spouse of the taxpayer, or of any individual
described in paragraph (1)(E)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
______

SA 133. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. STATE MINIMUM WAGE.

Section 6 of the Fair Labor Standards Act of 1938 (29
U.S.C. 206) is amended by adding at the end the following:
``(h)(1) An employer in a State that adopts a minimum wage
law that conforms to the requirements of paragraph (2) shall
not be required to pay the employer's employees at the
minimum wage prescribed by subsection (a)(1).
``(2) Paragraph (1) shall apply in a State that adopts a
minimum wage law that--
``(A) sets a rate that is not less than $5.15 an hour; and
``(B) applies that rate to not fewer than the employees
performing work within the State who would otherwise be
covered by the minimum wage rate prescribed by subsection
(a)(1).
``(3) In the case of a State that does not have a State law
that conforms to the requirements of paragraph (2), an
increase in the minimum wage rate prescribed by subsection
(a)(1) that is enacted on or after the date of enactment of
the Fair Minimum Wage Act of 2007 shall go into effect in
such State 6 months after the first day of the first
legislative session of the State legislature in which a State
law described in paragraph (2) may be considered.''.
______

SA 134. Mr. COBURN submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. STATE MINIMUM WAGE.

Section 6 of the Fair Labor Standards Act of 1938 (29
U.S.C. 206) is amended by adding at the end the following:
``(h)(1) An employer in a State that adopts a minimum wage
law that conforms to the requirements of paragraph (2) shall
not be required to pay the employer's employees at the
minimum wage prescribed by subsection (a)(1).
``(2) Paragraph (1) shall apply in a State that adopts a
minimum wage law that--
``(A) sets a rate that is not less than $5.15 an hour; and
``(B) applies that rate to not fewer than the employees
performing work within the State who would otherwise be
covered by the minimum wage rate prescribed by subsection
(a)(1).
``(3) In the case of a State that does not have a State law
that conforms to the requirements of paragraph (2), an
increase in the minimum wage rate prescribed by subsection
(a)(1) that is enacted on or after the date of enactment of
the Fair Minimum Wage Act of 2007 shall go into effect in
such State 6 months after the first day of the first
legislative session of the State legislature in which a State
law described in paragraph (2) may be considered.''.
______

SA 135. Mr. CORNYN submitted an amendment intended to be proposed to
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. ___. REPEAL OF FEDERAL UNEMPLOYMENT SURTAX.

(a) In General.--Section 3301 (relating to rate of Federal
unemployment tax) is amended by striking ``or'' at the end of
paragraph (1), by redesignating paragraph (2) as paragraph
(3), and by inserting after paragraph (1) the following new
paragraph:
``(2) in the case of wages paid in calendar year 2007--
``(A) 6.2 percent in the case of wages for any portion of
the year ending before April 1, and
``(B) 6.0 percent in the case of wages for any portion of
the year beginning after March 31; or''.
(b) Conforming Amendment.--Section 3301(1) of such Code is
amended by striking ``2007'' and inserting ``2006''.
(c) Effective Date.--The amendments made by this section
shall apply to wages paid after December 31, 2006.
______

SA 136. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. REPEAL OF FEDERAL UNEMPLOYMENT SURTAX.

(a) In General.--Section 3301 (relating to rate of Federal
unemployment tax) is amended by striking ``or'' at the end of
paragraph (1), by redesignating paragraph (2) as paragraph
(3), and by inserting after paragraph (1) the following new
paragraph:
``(2) in the case of wages paid in calendar year 2007--
``(A) 6.2 percent in the case of wages for any portion of
the year ending before April 1, and
``(B) 6.0 percent in the case of wages for any portion of
the year beginning after March 31; or''.
(b) Conforming Amendment.--Section 3301(1) of such Code is
amended by striking ``2007'' and inserting ``2006''.
(c) Effective Date.--The amendments made by this section
shall apply to wages paid after December 31, 2006.
______

SA 137. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the

[[Page S940]]

Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. EMPLOYER-PROVIDED OFF-PREMISES HEALTH CLUB SERVICES.

(a) Treatment as Fringe Benefit.--Subparagraph (A) of
section 132(j)(4) of the Internal Revenue Code of 1986
(relating to on-premises gyms and other athletic facilities)
is amended to read as follows:
``(A) In general.--Gross income shall not include--
``(i) the value of any on-premises athletic facility
provided by an employer to its employees, and
``(ii) in the case of any taxable year beginning in 2007,
so much of the fees, dues, or membership expenses paid by an
employer to an athletic or fitness facility described in
subparagraph (C) on behalf of its employees as does not
exceed $900 per employee per year.''.
(b) Athletic Facilities Described.--Paragraph (4) of
section 132(j) of the Internal Revenue Code of 1986 (relating
to special rules) is amended by adding at the end the
following new subparagraph:
``(C) Certain athletic or fitness facilities described.--
For purposes of subparagraph (A)(ii), an athletic or fitness
facility described in this subparagraph is a facility--
``(i) which provides instruction in a program of physical
exercise, offers facilities for the preservation,
maintenance, encouragement, or development of physical
fitness, or is the site of such a program of a State or local
government,
``(ii) which is not a private club owned and operated by
its members,
``(iii) which does not offer golf, hunting, sailing, or
riding facilities,
``(iv) whose health or fitness facility is not incidental
to its overall function and purpose, and
``(v) which is fully compliant with the State of
jurisdiction and Federal anti-discrimination laws.''.
(c) Exclusion Applies to Highly Compensated Employees Only
if No Discrimination.--Section 132(j)(1) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``Paragraphs (1) and (2) of subsection
(a)'' and inserting ``Subsections (a)(1), (a)(2), and
(j)(4)'', and
(2) by striking the heading thereof through ``(2) apply''
and inserting ``Certain exclusions apply''.
(d) Employer Deduction for Dues to Certain Athletic
Facilities.--
(1) In general.--Paragraph (3) of section 274(a) of the
Internal Revenue Code of 1986 (relating to denial of
deduction for club dues) is amended by adding at the end the
following new sentence: ``The preceding sentence shall not
apply to so much of the fees, dues, or membership expenses
paid in any taxable year beginning in 2007 to athletic or
fitness facilities (within the meaning of section
132(j)(4)(C)) as does not exceed $900 per employee per
year.''.
(2) Conforming amendment.--The last sentence of section
274(e)(4) of such Code is amended by inserting ``the first
sentence of'' before ``subsection (a)(3)''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
______

SA 138. Mr. CORNYN submitted an amendment intended to be proposed to
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. EMPLOYER-PROVIDED OFF-PREMISES HEALTH CLUB SERVICES.

(a) Treatment as Fringe Benefit.--Subparagraph (A) of
section 132(j)(4) of the Internal Revenue Code of 1986
(relating to on-premises gyms and other athletic facilities)
is amended to read as follows:
``(A) In general.--Gross income shall not include--
``(i) the value of any on-premises athletic facility
provided by an employer to its employees, and
``(ii) in the case of any taxable year beginning in 2007,
so much of the fees, dues, or membership expenses paid by an
employer to an athletic or fitness facility described in
subparagraph (C) on behalf of its employees as does not
exceed $900 per employee per year.''.
(b) Athletic Facilities Described.--Paragraph (4) of
section 132(j) of the Internal Revenue Code of 1986 (relating
to special rules) is amended by adding at the end the
following new subparagraph:
``(C) Certain athletic or fitness facilities described.--
For purposes of subparagraph (A)(ii), an athletic or fitness
facility described in this subparagraph is a facility--
``(i) which provides instruction in a program of physical
exercise, offers facilities for the preservation,
maintenance, encouragement, or development of physical
fitness, or is the site of such a program of a State or local
government,
``(ii) which is not a private club owned and operated by
its members,
``(iii) which does not offer golf, hunting, sailing, or
riding facilities,
``(iv) whose health or fitness facility is not incidental
to its overall function and purpose, and
``(v) which is fully compliant with the State of
jurisdiction and Federal anti-discrimination laws.''.
(c) Exclusion Applies to Highly Compensated Employees Only
if No Discrimination.--Section 132(j)(1) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``Paragraphs (1) and (2) of subsection
(a)'' and inserting ``Subsections (a)(1), (a)(2), and
(j)(4)'', and
(2) by striking the heading thereof through ``(2) apply''
and inserting ``Certain exclusions apply''.
(d) Employer Deduction for Dues to Certain Athletic
Facilities.--
(1) In general.--Paragraph (3) of section 274(a) of the
Internal Revenue Code of 1986 (relating to denial of
deduction for club dues) is amended by adding at the end the
following new sentence: ``The preceding sentence shall not
apply to so much of the fees, dues, or membership expenses
paid in any taxable year beginning in 2007 to athletic or
fitness facilities (within the meaning of section
132(j)(4)(C)) as does not exceed $900 per employee per
year.''.
(2) Conforming amendment.--The last sentence of section
274(e)(4) of such Code is amended by inserting ``the first
sentence of'' before ``subsection (a)(3)''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
______

SA 139. Mr. CORNYN submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. REPEAL OF EGTRRA AND JGTRRA SUNSETS.

(a) EGTRRA.--The Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended by striking title IX.
(b) JGTRRA.--Title III of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 is amended by striking section
303.
______

SA 140. Mr. CORNYN submitted an amendment intended to be proposed to
amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. REPEAL OF EGTRRA AND JGTRRA SUNSETS.

(a) EGTRRA.--The Economic Growth and Tax Relief
Reconciliation Act of 2001 is amended by striking title IX.
(b) JGTRRA.--Title III of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 is amended by striking section
303.
______

SA 141. Mr. SESSIONS submitted an amendment intended to be proposed
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

(a) Penalties for Unlawful Employment of Aliens.--Section
274A of the Immigration and Nationality Act (8 U.S.C. 1324a)
is amended--
(1) in subsection (e)(4)--
(A) in subparagraph (A)(i), by striking ``not less than
$250 and not more than $2,000'' and inserting ``not less than
$5000 and not more than $7,500'';
(B) in subparagraph (A)(ii), by striking ``not less than
$2,000 and not more than $5,000'' and inserting ``not less
than $10,000 and not more than $15,000''; and
(C) in subparagraph (A)(iii), by striking ``not less than
$3,000 and not more than $10,000'' and inserting ``not less
than $25,000 and not more than $40,00'';
(2) in subsection (e)(5)--
(A) by inserting ``, subject to paragraph (10),'' after
``in an amount'';
(B) by striking ``$100 and not more than $1,000'' and
inserting ``$1,000 and not more than $25,000''; and
(C) by adding at the end the following sentence:
``Providing information to the basic pilot program described
in section 403(a) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note)
that the person or entity knows or reasonably believes to be
false, shall be treated as a violation of subsection
(a)(1)(A) and shall not qualify for the exemption provided by
(e)(10).'';
(3) by adding at the end of subsection (e) the following
new paragraph:
``(10) Exemption from penalty for employers participating
in the basic pilot program.--In the case of imposition of a
civil penalty under paragraph (4)(A) with respect to a
violation of subsection (a)(1)(A) or (a)(2) for hiring or
continuation of employment by an employer and in the case of
imposition of a civil penalty under paragraph (5) for a
violation of subsection (a)(1)(B) for

[[Page S941]]

hiring or recruitment or referral by a person or entity, the
penalty otherwise imposed shall be waived if the violator
establishes that it was voluntarily participating in the
basic pilot electronic verification program at the time of
the offense.'';
(4) by amending paragraph (1) of subsection (f) to read as
follows:
``(1) Criminal penalty.--Any person or entity which engages
in a pattern or practice of violations of paragraph (1) or
(2) of subsection (a) shall be fined not less than $3,000 and
more than $50,000 for each unauthorized alien with respect to
which such a violation occurs, imprisoned for not less than
one year, or both, notwithstanding the provisions of any
other Federal law relating to fine levels.''; and
(5) in subsection (f)(2), by striking ``Attorney General''
each place it appears and inserting ``Secretary of Homeland
Security''.
(b) Retention and Use of Employment Eligibility
Verification Documents.--
(1) Retention.--Section 274A(b) of the Immigration and
Nationality Act (8 U.S.C. 1324a(b)) is amended by striking
paragraph (4) and inserting the following:
``(4) Copying and retention of documentation.--
``(A) In general.--A person or entity required to examine a
document described in subparagraph (B), (C), or (D) of
paragraph (1) or receive an attestation described in
paragraph (2) shall retain a paper, microfiche, microfilm, or
electronic version of each such document and attestation,
indicate that each such version is a copied document, and
make such versions available for inspection by an officer of
the Department of Homeland Security or 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 the
period beginning on the date of the hiring, or recruiting or
referring for a fee, of the individual and ending--
``(i) in the case of the recruiting or referral for a fee
(without hiring) of an individual, 5 years after the date of
the recruiting or referral; or
``(ii) in the case of the hiring of an individual the later
of--

``(I) 5 years after the date of such hiring; or
``(II) 1 year after the date the individual's employment is
terminated.

``(B) Other records.--Such person or entity shall maintain
records of any action taken and copies of any correspondence
written or received with respect to the verification of an
individual's identity or eligibility for employment in the
United States.''.
(2) Limitation on use of retained documents.--Paragraph (5)
of section 274A(b) of the Immigration and Nationality Act (8
U.S.C. 1324a(b)) is amended--
(A) in the heading, by striking ``Limitation on use of
attestation form'' and inserting ``Attestation form'';
(B) by redesignating such paragraph (5) as subparagraph
(A);
(C) by indenting such subparagraph, as so designated, six
ems from the left margin;
(D) by inserting before such subparagraph, as so
designated, the following:
``(5) Limitation on use.--''; and
(E) by inserting after such subparagraph, as so designated,
the following new subparagraph:
``(B) Retained documents.--A person or entity required to
retain versions of documents or attestations or maintain
records under paragraph (4) shall use any such version,
attestation, or record only for the purposes of complying
with the requirements of this subsection, except as otherwise
permitted under law.''.
(c) Extension of the Basic Pilot Program.--Section 403(a)
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended
by adding at the end the following new paragraph:
``(5) Individuals covered.--Notwithstanding any other
provision of this title, a person or other entity that elects
to participate in the basic pilot program shall follow the
procedures described in paragraphs (1) thorough (4) for each
individual who the person or entity hires (or recruits or
refers) for employment and for each individual who is
employed by the person or entity.''.

SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

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:
``(10) Prohibition on award of government contracts,
grants, and agreements.--
``(A) Employers with no contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subparagraph
(C), if an employer who does not hold a Federal contract,
grant, or cooperative agreement is determined to have
violated this section, the employer shall be debarred from
the receipt of a Federal contract, grant, or cooperative
agreement for a period of 7 years.
``(ii) Placement on excluded list.--The Secretary of
Homeland Security or the Attorney General shall advise the
Administrator of General Services of the debarment of an
employer under clause (i) 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 7 years.
``(iii) Waiver.--

``(I) Authority.--The Administrator of General Services, in
consultation with the Secretary of Homeland Security and the
Attorney General, may waive operation of clause (i) or may
limit the duration or scope of a debarment under clause (i)
if such waiver or limitation is necessary to national defense
or in the interest of national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternative action under this clause
shall not be judicially reviewed.

``(B) Employers with contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subclause
(C), an employer who holds a Federal contract, grant, or
cooperative agreement and is determined to have violated this
section shall be debarred from the receipt of new Federal
contracts, grants, or cooperative agreements for a period of
10 years.
``(ii) Notice to agencies.--Prior to debarring the employer
under clause (i), the Secretary of Homeland Security, 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 10 years.
``(iii) Waiver.--

``(I) Authority.--After consideration of the views of any
agency or department that holds a contract, grant, or
cooperative agreement with the employer, the Administrator of
General Services, in consultation with the Secretary of
Homeland Security and the Attorney General, may waive
operation of clause (i) or may limit the duration or scope of
the debarment under clause (i) if such waiver or limitation
is necessary to the national defense or in the interest of
national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternate action under this clause
shall not be judicially reviewed.

``(C) Exemption from penalty for employers participating in
the basic pilot program.--In the case of imposition on an
employer of a debarment from the receipt of a Federal
contract, grant, or cooperative agreement under subparagraph
(A) or (B), that penalty shall be waived if the employer
establishes that the employer was voluntarily participating
in the basic pilot program under section 403(a) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) at the time of the violations
of this section that resulted in the debarment.''.
______

SA 142. Mr. SESSIONS submitted an amendment intended to be proposed
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

(a) Penalties for Unlawful Employment of Aliens.--Section
274A of the Immigration and Nationality Act (8 U.S.C. 1324a)
is amended--
(1) in subsection (e)(4)--
(A) in subparagraph (A)(i), by striking ``not less than
$250 and not more than $2,000'' and inserting ``not less than
$5000 and not more than $7,500'';
(B) in subparagraph (A)(ii), by striking ``not less than
$2,000 and not more than $5,000'' and inserting ``not less
than $10,000 and not more than $15,000''; and
(C) in subparagraph (A)(iii), by striking ``not less than
$3,000 and not more than $10,000'' and inserting ``not less
than $25,000 and not more than $40,00'';
(2) in subsection (e)(5)--
(A) by inserting ``, subject to paragraph (10),'' after
``in an amount'';
(B) by striking ``$100 and not more than $1,000'' and
inserting ``$1,000 and not more than $25,000''; and
(C) by adding at the end the following sentence:
``Providing information to the basic pilot program described
in section 403(a) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note)
that the person or entity knows or reasonably believes to be
false, shall be treated as a violation of subsection
(a)(1)(A) and shall not qualify for the exemption provided by
(e)(10).'';
(3) by adding at the end of subsection (e) the following
new paragraph:
``(10) Exemption from penalty for employers participating
in the basic pilot program.--In the case of imposition of a

[[Page S942]]

civil penalty under paragraph (4)(A) with respect to a
violation of subsection (a)(1)(A) or (a)(2) for hiring or
continuation of employment by an employer and in the case of
imposition of a civil penalty under paragraph (5) for a
violation of subsection (a)(1)(B) for hiring or recruitment
or referral by a person or entity, the penalty otherwise
imposed shall be waived if the violator establishes that it
was voluntarily participating in the basic pilot electronic
verification program at the time of the offense.'';
(4) by amending paragraph (1) of subsection (f) to read as
follows:
``(1) Criminal penalty.--Any person or entity which engages
in a pattern or practice of violations of paragraph (1) or
(2) of subsection (a) shall be fined not less than $3,000 and
more than $50,000 for each unauthorized alien with respect to
which such a violation occurs, imprisoned for not less than
one year, or both, notwithstanding the provisions of any
other Federal law relating to fine levels.''; and
(5) in subsection (f)(2), by striking ``Attorney General''
each place it appears and inserting ``Secretary of Homeland
Security''.
(b) Retention and Use of Employment Eligibility
Verification Documents.--
(1) Retention.--Section 274A(b) of the Immigration and
Nationality Act (8 U.S.C. 1324a(b)) is amended by striking
paragraph (4) and inserting the following:
``(4) Copying and retention of documentation.--
``(A) In general.--A person or entity required to examine a
document described in subparagraph (B), (C), or (D) of
paragraph (1) or receive an attestation described in
paragraph (2) shall retain a paper, microfiche, microfilm, or
electronic version of each such document and attestation,
indicate that each such version is a copied document, and
make such versions available for inspection by an officer of
the Department of Homeland Security or 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 the
period beginning on the date of the hiring, or recruiting or
referring for a fee, of the individual and ending--
``(i) in the case of the recruiting or referral for a fee
(without hiring) of an individual, 5 years after the date of
the recruiting or referral; or
``(ii) in the case of the hiring of an individual the later
of--

``(I) 5 years after the date of such hiring; or
``(II) 1 year after the date the individual's employment is
terminated.

``(B) Other records.--Such person or entity shall maintain
records of any action taken and copies of any correspondence
written or received with respect to the verification of an
individual's identity or eligibility for employment in the
United States.''.
(2) Limitation on use of retained documents.--Paragraph (5)
of section 274A(b) of the Immigration and Nationality Act (8
U.S.C. 1324a(b)) is amended--
(A) in the heading, by striking ``Limitation on use of
attestation form'' and inserting ``Attestation form'';
(B) by redesignating such paragraph (5) as subparagraph
(A);
(C) by indenting such subparagraph, as so designated, six
ems from the left margin;
(D) by inserting before such subparagraph, as so
designated, the following:
``(5) Limitation on use.--''; and
(E) by inserting after such subparagraph, as so designated,
the following new subparagraph:
``(B) Retained documents.--A person or entity required to
retain versions of documents or attestations or maintain
records under paragraph (4) shall use any such version,
attestation, or record only for the purposes of complying
with the requirements of this subsection, except as otherwise
permitted under law.''.
(c) Extension of the Basic Pilot Program.--Section 403(a)
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended
by adding at the end the following new paragraph:
``(5) Individuals covered.--Notwithstanding any other
provision of this title, a person or other entity that elects
to participate in the basic pilot program shall follow the
procedures described in paragraphs (1) thorough (4) for each
individual who the person or entity hires (or recruits or
refers) for employment and for each individual who is
employed by the person or entity.''.

SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

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:
``(10) Prohibition on award of government contracts,
grants, and agreements.--
``(A) Employers with no contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subparagraph
(C), if an employer who does not hold a Federal contract,
grant, or cooperative agreement is determined to have
violated this section, the employer shall be debarred from
the receipt of a Federal contract, grant, or cooperative
agreement for a period of 7 years.
``(ii) Placement on excluded list.--The Secretary of
Homeland Security or the Attorney General shall advise the
Administrator of General Services of the debarment of an
employer under clause (i) 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 7 years.
``(iii) Waiver.--

``(I) Authority.--The Administrator of General Services, in
consultation with the Secretary of Homeland Security and the
Attorney General, may waive operation of clause (i) or may
limit the duration or scope of a debarment under clause (i)
if such waiver or limitation is necessary to national defense
or in the interest of national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternative action under this clause
shall not be judicially reviewed.

``(B) Employers with contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subclause
(C), an employer who holds a Federal contract, grant, or
cooperative agreement and is determined to have violated this
section shall be debarred from the receipt of new Federal
contracts, grants, or cooperative agreements for a period of
10 years.
``(ii) Notice to agencies.--Prior to debarring the employer
under clause (i), the Secretary of Homeland Security, 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 10 years.
``(iii) Waiver.--

``(I) Authority.--After consideration of the views of any
agency or department that holds a contract, grant, or
cooperative agreement with the employer, the Administrator of
General Services, in consultation with the Secretary of
Homeland Security and the Attorney General, may waive
operation of clause (i) or may limit the duration or scope of
the debarment under clause (i) if such waiver or limitation
is necessary to the national defense or in the interest of
national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternate action under this clause
shall not be judicially reviewed.

``(C) Exemption from penalty for employers participating in
the basic pilot program.--In the case of imposition on an
employer of a debarment from the receipt of a Federal
contract, grant, or cooperative agreement under subparagraph
(A) or (B), that penalty shall be waived if the employer
establishes that the employer was voluntarily participating
in the basic pilot program under section 403(a) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) at the time of the violations
of this section that resulted in the debarment.''.
______

SA 143. Mr. SESSIONS submitted an amendment intended to be proposed
by him to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the end, add the following:

TITLE II--UNLAWFUL EMPLOYMENT OF ALIENS

SEC. 201. UNLAWFUL EMPLOYMENT OF ALIENS.

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

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

``(a) Making Employment of Unauthorized Aliens Unlawful.--
``(1) In general.--It is unlawful for an employer--
``(A) to hire, or to recruit or refer for a fee, an alien
for employment in the United States knowing, or with reckless
disregard, that the alien is an unauthorized alien with
respect to such employment; or
``(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).
``(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.
``(3) Use of labor through contract.--
``(A) In general.--An employer who uses a contract,
subcontract, or exchange to obtain the labor of an alien in
the United States knowing, or with reckless disregard--
``(i) that the alien is an unauthorized alien with respect
to performing such labor, shall be considered to have hired
the alien in violation of paragraph (1)(A); or
``(ii) that the person hiring such alien failed to comply
with the requirements of

[[Page S943]]

subsections (c) and (d) shall be considered to have hired the
alien in violation of paragraph (1)(B).
``(B) Information sharing.--The person hiring the alien
shall provide to the employer, who obtains the labor of the
alien, the employer identification number assigned to such
person by the Commissioner of Internal Revenue. Failure to
provide such number shall be considered a recordkeeping
violation under subsection (e)(4)(B).
``(C) Reporting requirement.--The employer shall submit to
the Electronic Verification System established under
subsection (d), in a manner prescribed by the Secretary, the
employer identification number provided by the person hiring
the alien. Failure to submit such number shall be considered
a recordkeeping violation under subsection (e)(4)(B).
``(D) Enforcement.--The Secretary shall implement
procedures to utilize the information obtained under
subparagraphs (B) and (C) to identify employers who use a
contract, subcontract, or exchange to obtain the labor of an
alien from another person, where such person hiring such
alien fails to comply with the requirements of subsections
(c) and (d).
``(4) Defense.--
``(A) In general.--Subject to subparagraph (B), an employer
that establishes that the employer has complied in good faith
with the requirements of subsections (c) and (d) has
established an affirmative defense that the employer has not
violated paragraph (1)(A) with respect to such hiring,
recruiting, or referral.
``(B) Exception.--Until the date that an employer is
required to participate in the Electronic Employment
Verification System under subsection (d) or is participating
in such System on a voluntary basis, the employer may
establish an affirmative defense under subparagraph (A) by
complying with the requirements of subsection (c).
``(b) Order of Internal Review and Certification of
Compliance.--
``(1) Authority to require certification.--If the Secretary
has reasonable cause to believe that an employer has failed
to comply with this section, the Secretary is authorized, at
any time, to require that the employer certify that the
employer is in compliance with this section, or has
instituted a program to come into compliance.
``(2) Content of certification.--Not later than 60 days
after the date an employer receives a request for a
certification under paragraph (1) the employer shall certify
under penalty of perjury that--
``(A) the employer is in compliance with the requirements
of subsections (c) and (d); or
``(B) that the employer has instituted a program to come
into compliance with such requirements.
``(3) Extension.--The 60-day period referred to in
paragraph (2), may be extended by the Secretary for good
cause, at the request of the employer.
``(4) Publication.--The Secretary is authorized to publish
in the Federal Register standards or methods for
certification under paragraph (1) and for specific
recordkeeping practices with respect to such certification,
and procedures for the audit of any records related to such
certification.
``(c) Document Verification Requirements.--An employer
hiring, or recruiting or referring for a fee, an individual
for employment in the United States shall verify that the
individual is eligible for such employment by meeting the
following requirements:
``(1) Attestation by employer.--
``(A) Requirements.--
``(i) In general.--The employer shall attest, under penalty
of perjury and on a form prescribed by the Secretary, that
the employer has verified the identity and eligibility for
employment of the individual by examining a document
described in subparagraph (B).
``(ii) Signature requirements.--An attestation required by
clause (i) may be manifested by a handwritten or electronic
signature.
``(iii) Standards for examination.--The employer has
complied with the requirement of this paragraph with respect
to examination of documentation if a reasonable person would
conclude that the document examined is genuine and relates to
the individual whose identity and eligibility for employment
in the United States is being verified. If the individual
provides a document sufficient to meet the requirements of
this paragraph, nothing in this paragraph shall be construed
as requiring an employer to solicit any other document or as
requiring the individual to produce any other document.
``(B) Identification documents.--A document described in
this subparagraph is--
``(i) in the case of an individual who is a national of the
United States--

``(I) a United States passport; or
``(II) a driver's license or identity card issued by a
State, the Commonwealth of the Northern Mariana Islands, or
an outlying possession of the United States that satisfies
the requirements of division B of Public Law 109-13 (119
Stat. 302);

``(ii) in the case of an alien lawfully admitted for
permanent residence in the United States, a permanent
resident card, as specified by the Secretary;
``(iii) in the case of an alien who is authorized under
this Act or by the Secretary to be employed in the United
States, an employment authorization card, as specified by the
Secretary that--

``(I) contains a photograph of the individual or other
identifying information, including name, date of birth,
gender, and address; and
``(II) contains security features to make the document
resistant to tampering, counterfeiting, and fraudulent use;

``(iv) in the case of an individual who is unable to obtain
a document described in clause (i), (ii), or (iii), a
document designated by the Secretary that--

``(I) contains a photograph of the individual or other
identifying information, including name, date of birth,
gender, and address; and
``(II) contains security features to make the document
resistant to tampering, counterfeiting, and fraudulent use;
or

``(v) until the date that an employer is required to
participate in the Electronic Employment Verification System
under subsection (d) or is participating in such System on a
voluntary basis, a document, or a combination of documents,
of such type that, as of the date of the enactment of the
Fair Minimum Wage Act of 2007, the Secretary had established
by regulation were sufficient for purposes of this section.
``(C) Authority to prohibit use of certain documents.--
``(i) Authority.--If the Secretary finds that a document or
class of documents described in subparagraph (B) is not
reliable to establish identity or is being used fraudulently
to an unacceptable degree, the Secretary shall prohibit, or
impose conditions, on the use of such document or class of
documents for purposes of this subsection.
``(ii) Requirement for publication.--The Secretary shall
publish notice of any findings under clause (i) in the
Federal Register.
``(2) Attestation of employee.--
``(A) Requirements.--
``(i) In general.--The individual shall attest, under
penalty of perjury on the form described in paragraph
(1)(A)(i), that the individual is a national of the United
States, an alien lawfully admitted for permanent residence,
or an alien who is authorized under this Act or by the
Secretary to be hired, or to be recruited or referred for a
fee, in the United States.
``(ii) Signature for examination.--An attestation required
by clause (i) may be manifested by a handwritten or
electronic signature.
``(B) Penalties.--An individual who falsely represents that
the individual is eligible for employment in the United
States in an attestation required by subparagraph (A) shall,
for each such violation, be subject to a fine of not more
than $5,000, a term of imprisonment not to exceed 3 years, or
both.
``(3) Retention of attestation.--The employer shall retain
a paper, microfiche, microfilm, or electronic version of the
attestations made under paragraph (1) and (2) and make such
attestations available for inspection by an officer of the
Department of Homeland Security, any other person designated
by the Secretary, the Special Counsel for Immigration-Related
Unfair Employment Practices of the Department of Justice, or
the Secretary of Labor during a period beginning on the date
of the hiring, or recruiting or referring for a fee, of the
individual and ending--
``(A) in the case of the recruiting or referral for a fee
(without hiring) of an individual, 5 years after the date of
the recruiting or referral; or
``(B) in the case of the hiring of an individual the later
of--
``(i) 5 years after the date of such hiring;
``(ii) 1 year after the date the individual's employment is
terminated; or
``(iii) in the case of an employer or class of employers, a
period that is less than the applicable period described in
clause (i) or (ii) if the Secretary reduces such period for
such employer or class of employers.
``(4) Document retention and recordkeeping requirements.--
``(A) Retention of documents.--Notwithstanding any other
provision of law, an employer shall retain, for the
applicable period described in paragraph (3), the following
documents:
``(i) In general.--The employer shall copy all documents
presented by an individual described in paragraph (1)(B) and
shall retain paper, microfiche, microfilm, or electronic
copies of such documents. Such copies shall be designated as
copied documents.
``(ii) Other documents.--The employer shall maintain
records of any action taken and copies of any correspondence
written or received with respect to the verification of an
individual's identity or eligibility for employment in the
United States.
``(B) Use of retained documents.--An employer shall use
copies retained under clause (i) or (ii) of subparagraph (A)
only for the purposes of complying with the requirements of
this subsection, except as otherwise permitted under law.
``(5) Penalties.--An employer that fails to comply with the
recordkeeping requirements of this subsection shall be
subject to the penalties described in subsection (e)(4)(B).
``(6) No authorization of national identification cards.--
Nothing in this section may be construed to authorize,
directly or indirectly, the issuance, use, or establishment
of a national identification card.
``(d) Electronic Employment Verification System.--
``(1) Requirement for system.--The Secretary, in
cooperation with the Commissioner of Social Security, shall
implement an Electronic Employment Verification System
(referred to in this subsection as the `System') to determine
whether--

[[Page S944]]

``(A) the identifying information submitted by an
individual is consistent with the information maintained by
the Secretary or the Commissioner of Social Security; and
``(B) such individual is eligible for employment in the
United States.
``(2) Requirement for participation.--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 not less than $400,000,000 have been appropriated
and made available to implement this subsection.
``(3) Other participation in system.--Notwithstanding
paragraph (2), the Secretary has the authority--
``(A) to permit any employer that is not required to
participate in the System under paragraph (2) to participate
in the System on a voluntary basis; and
``(B) to require any employer or class of employers to
participate on a priority basis in the System with respect to
individuals employed as of, or hired after, the date of
enactment of the Fair Minimum Wage Act of 2007--
``(i) if the Secretary designates such employer or class of
employers as a critical employer based on an assessment of
homeland security or national security needs; or
``(ii) if the Secretary has reasonable cause to believe
that the employer has engaged in material violations of
paragraph (1), (2), or (3) of subsection (a).
``(4) Requirement to notify.--The Secretary shall notify
the employer or class of employers in writing regarding the
requirement for participation in the System under paragraph
(3)(B) not less than 60 days prior to the effective date of
such requirement. Such notice shall include the training
materials described in paragraph (8)(E)(v).
``(5) Registration of employers.--An employer shall
register the employer's participation in the System in the
manner prescribed by the Secretary prior to the date the
employer is required or permitted to submit information with
respect to an employee under this subsection.
``(6) Additional guidance.--A registered employer shall be
permitted to utilize any technology that is consistent with
this section and with any regulation or guidance from the
Secretary to streamline the procedures to facilitate
compliance with--
``(A) the attestation requirement in subsection (c); and
``(B) the employment eligibility verification requirements
in this subsection.
``(7) Consequence of failure to participate.--If an
employer is required to participate in the System and fails
to comply with the requirements of the System with respect to
an employee--
``(A) such failure shall be treated as a violation of
subsection (a)(1)(B); and
``(B) a rebuttable presumption is created that the employer
has violated subsection (a)(1)(A), however, such presumption
may not apply to a prosecution under subsection (f)(1).
``(8) Design and operation of system.--
``(A) In general.--The Secretary shall, through the
System--
``(i) respond to each inquiry made by a registered employer
through the Internet or other electronic media, or over a
toll-free telephone line regarding an individual's identity
and eligibility for employment in the United States; and
``(ii) maintain a record of each such inquiry and the
information provided in response to such inquiry.
``(B) Initial inquiry.--
``(i) Information required.--A registered employer shall,
with respect to the hiring, or recruiting or referring for a
fee, any individual for employment in the United States,
obtain from the individual and record on the form described
in subsection (c)(1)(A)(i)--

``(I) the individual's name and date of birth and, if the
individual was born in the United States, the State in which
such individual was born;
``(II) the individual's social security account number;
``(III) the employment identification number of the
individual's employer during any one of the 5 most recently
completed calendar years; and
``(IV) in the case of an individual who does not attest
that the individual is a national of the United States under
subsection (c)(1)(A)(i), such alien identification or
authorization number that the Secretary shall require.

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

``(I) not later than 3 days after the date of the hiring,
or recruiting or referring for a fee, of the individual (as
the case may be); or
``(II) in the case of an employee hired by a critical
employer designated by the Secretary under paragraph (3)(B)
at such time as the Secretary shall specify.

``(iii) EIN requirements.--

``(I) Requirement to provide.--An employer shall provide
the employer identification number issued to such employer to
the individual, upon request, for purposes of providing the
information under clause (i)(III).
``(II) Requirement to affirmatively state a lack of recent
employment.--An individual providing information under clause
(i)(III) who was not employed in the United States during any
of the 5 most recently completed calendar years shall
affirmatively state on the form described in subsection
(c)(1)(A)(i) that no employer identification number is
provided because the individual was not employed in the
United States during such period.

``(C) Initial response.--Not later than 10 days after an
employer submits an inquiry to the System regarding an
individual, the Secretary shall provide, through the System,
to the employer--
``(i) if the System is able to confirm the individual's
identity and eligibility for employment in the United States,
a confirmation notice, including the appropriate codes on
such confirmation notice; or
``(ii) if the System is unable to confirm the individual's
identity or eligibility for employment in the United States,
and after a secondary manual verification has been conducted,
a tentative nonconfirmation notice, including the appropriate
codes on such tentative nonconfirmation notice.
``(D) Confirmation or nonconfirmation.--
``(i) Confirmation upon initial inquiry.--If an employer
receives a confirmation notice under paragraph (C)(i) for an
individual, the employer shall record, on the form described
in subsection (c)(1)(A)(i), the appropriate code provided in
such notice.
``(ii) Tentative nonconfirmation.--If an employer receives
a tentative nonconfirmation notice under paragraph (C)(ii)
for an individual, the employer shall inform such individual
of the issuance of such notice in writing, on a form
prescribed by the Secretary not later than 3 days after
receiving such notice. Such individual shall acknowledge
receipt of such notice in writing on the form described in
subsection (c)(1)(A)(i).
``(iii) No contest.--If the individual does not contest the
tentative nonconfirmation notice within 10 days of receiving
notice from the individual's employer, the notice shall
become final and the employer shall record on the form
described in subsection (1)(A)(i), the appropriate code
provided through the System to indicate the individual did
not contest the tentative nonconfirmation. An individual's
failure to contest a tentative nonconfirmation shall not be
considered an admission of guilt with respect to any
violation of this Act or any other provision of law.
``(iv) Contest.--If the individual contests the tentative
nonconfirmation notice, the individual shall submit
appropriate information to contest such notice under the
procedures established in subparagraph (E)(iii) not later
than 10 days after receiving the notice from the individual's
employer.
``(v) Effective period of tentative nonconfirmation
notice.--A tentative nonconfirmation notice shall remain in
effect until such notice becomes final under clause (iii), or
the earlier of--

``(I) a final confirmation notice or final nonconfirmation
notice is issued through the System; or
``(II) 30 days after the individual contests a tentative
nonconfirmation under clause (iv).

``(vi) Automatic final notice.--

``(I) In general.--If a final notice is not issued within
the 30-day period described in clause (v)(II), the Secretary
shall automatically provide to the employer, through the
System, the appropriate code indicating a final notice.
``(II) Period prior to initial certification.--During the
period beginning on the date of the enactment of the Fair
Minimum Wage Act of 2007 and ending on the date the Secretary
submits the initial report described in subparagraph (E)(ii),
an automatic notice issued under subclause (I) shall be a
final confirmation notice.
``(III) Period after initial certification.--After the date
that the Secretary submits the initial report described in
subparagraph (E)(ii), an automatic notice issued under
subclause (I) shall be a final confirmation notice unless the
most recent such report includes a certification that the
System is able to correctly issue, within the period
beginning on the date an employer submits an inquiry to the
System and ending on the date an automatic default notice
would be issued by the System, 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. If the most recent such report includes such a
certification, the automatic notice issued under subclause
(I) shall be a final nonconfirmation notice.
``(IV) Additional authority.--Notwithstanding the second
sentence of subclause (III), the Secretary shall have the
authority to issue a final confirmation notice for an
individual who would be subject to a final nonconfirmation
notice under such sentence. In such a case, the Secretary
shall determine the individual's eligibility for employment
in the United States and record the results of such
determination in the System within 12 months.

``(vii) Effective period of final notice.--A final
confirmation notice issued under this paragraph for an
individual shall remain in effect--

``(I) during any continuous period of employment of such
individual by such employer, unless the Secretary determines
the final confirmation was the result of identity fraud; or
``(II) in the case of an alien authorized to be employed in
the United States for a temporary period, during such period.

``(viii) Prohibition on termination.--An employer may not
terminate the employment of an individual based on a
tentative

[[Page S945]]

nonconfirmation notice until such notice becomes final under
clause (iii) or a final nonconfirmation notice is issued for
the individual by the System. Nothing in this clause shall
prohibit the termination of employment for any reason other
than such tentative nonconfirmation.
``(ix) Recording of contest resolution.--The employer shall
record on the form described in subsection (c)(1)(A)(i) the
appropriate code that is provided through the System to
indicate a final confirmation notice or final nonconfirmation
notice.
``(x) 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).
``(E) Responsibilities of the secretary.--
``(i) In general.--The Secretary shall establish a
reliable, secure method to provide through the System, within
the time periods required by this subsection--

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

``(ii) Annual report and certification.--Not later than the
date that is 24 months after the date that not less than
$400,000,000 have been appropriated and made available to the
Secretary to implement this subsection, and annually
thereafter, the Secretary shall submit to Congress a report
that includes--

``(I) an assessment of whether the System is able to
correctly issue, within the period described in subparagraph
(D)(v)(II), a final notice in at least 99 percent of the
cases in which the final notice relates to an individual who
is eligible for employment in the United States (excluding an
individual who fails to contest a tentative nonconfirmation
notice); and
``(II) if the assessment under subclause (I) is that the
System is able to correctly issue within the specified time
period a final notice in at least 99 percent of the cases
described in such subclause, a certification of such
assessment.

``(iii) Contest and self-verification.--The Secretary in
consultation with the Commissioner of Social Security, shall
establish procedures to permit an individual who contests a
tentative or final nonconfirmation notice, or seeks to verify
the individual's own employment eligibility prior to
obtaining or changing employment, to contact the appropriate
agency and, in a timely manner, correct or update the
information used by the System.
``(iv) Information to employee.--The Secretary shall
develop a written form for employers to provide to
individuals who receive a tentative or final nonconfirmation
notice. Such form shall be made available in a language other
than English, as necessary and reasonable, and shall
include--

``(I) information about the reason for such notice;
``(II) the right to contest such notice;
``(III) contact information for the appropriate agency and
instructions for initiating such contest; and
``(IV) a 24-hour toll-free telephone number to respond to
inquiries related to such notice.

``(v) Training materials.--The Secretary shall make
available or provide to the employer, upon request, not later
than 60 days prior to such employer's participation in the
System, appropriate training materials to facilitate
compliance with this subsection, and sections 274B(a)(7) and
274C(a).
``(F) Responsibilities of the commissioner of social
security.--The responsibilities of the Commissioner of Social
Security with respect to the System are set out in section
205(c)(2) of the Social Security Act.
``(9) Protection from liability.--No employer that
participates in the System shall be liable under any law for
any employment-related action taken with respect to an
individual in good faith reliance on information provided by
the System.
``(10) Administrative review.--
``(A) In general.--An individual who is terminated from
employment as a result of a final nonconfirmation notice may,
not later than 60 days after the date of such termination,
file an appeal of such notice.
``(B) Procedures.--The Secretary and Commissioner of Social
Security shall develop procedures to review appeals filed
under subparagraph (A) and to make final determinations on
such appeals.
``(C) Review for errors.--If a final determination on an
appeal filed under subparagraph (A) results in a confirmation
of an individual's eligibility to work in the United States,
the administrative review process shall require the Secretary
to determine if the final nonconfirmation notice issued for
the individual was the result of--
``(i) an error or negligence on the part of an employee or
official operating or responsible for the System;
``(ii) the decision rules, processes, or procedures
utilized by the System; or
``(iii) erroneous system information that was not the
result of acts or omissions of the individual.
``(D) Compensation for error.--
``(i) In general.--If the Secretary makes a determination
under subparagraph (C) that the final nonconfirmation notice
issued for an individual was not caused by an act or omission
of the individual, the Secretary shall compensate the
individual for lost wages.
``(ii) Calculation of lost wages.--Lost wages shall be
calculated based on the wage rate and work schedule that
prevailed prior to termination. The individual shall be
compensated for wages lost beginning on the first scheduled
work day after employment was terminated and ending 180 days
after completion of the administrative review process
described in this paragraph or the day after the individual
is reinstated or obtains employment elsewhere, whichever
occurs first.
``(E) Limitation on compensation.--For purposes of
determining an individual's compensation for the loss of
employment, such compensation shall not include any period in
which the individual was ineligible for employment in the
United States.
``(F) Source of funds.--Compensation or reimbursement
provided under this paragraph shall not be provided from
funds appropriated in annual appropriations Acts to the
Secretary for the Department of Homeland Security.
``(11) Judicial review.--
``(A) In general.--After the Secretary makes a final
determination on an appeal filed by an individual under the
administrative review process described in paragraph (10),
the individual may obtain judicial review of such
determination by a civil action commenced not later than 60
days after the date of such decision, or such further time as
the Secretary may allow.
``(B) Jurisdiction.--A civil action for such judicial
review shall be brought in the district court of the United
States for the judicial district in which the plaintiff
resides, or has a principal place of business, or, if the
plaintiff does not reside or have a principal place of
business within any such judicial district, in the District
Court of the United States for the District of Columbia.
``(C) Answer.--As part of the Secretary's answer to a
complaint for such judicial review, the Secretary shall file
a certified copy of the administrative record compiled during
the administrative review under paragraph (10), including the
evidence upon which the findings and decision complained of
are based. The court shall have power to enter, upon the
pleadings and transcript of the record, a judgment affirming
or reversing the result of that administrative review, with
or without remanding the cause for a rehearing.
``(D) Compensation for error.--
``(i) In general.--In cases in which such judicial review
reverses the final determination of the Secretary made under
paragraph (10), the court shall compensate the individual for
lost wages.
``(ii) Calculation of lost wages.--Lost wages shall be
calculated based on the wage rate and work scheduled that
prevailed prior to termination. The individual shall be
compensated for wages lost beginning on the first scheduled
work day after employment was terminated and ending 180 days
after completion of the judicial review described in this
paragraph or the day after the individual is reinstated or
obtains employment elsewhere, whichever occurs first.
``(12) Limitation on collection and use of data.--
``(A) Limitation on collection of data.--
``(i) In general.--The System shall collect and maintain
only the minimum data necessary to facilitate the successful
operation of the System, and in no case shall the data be
other than--

``(I) information necessary to register employers under
paragraph (5);
``(II) information necessary to initiate and respond to
inquiries or contests under paragraph (8);
``(III) information necessary to establish and enforce
compliance with paragraphs (5) and (8);
``(IV) information necessary to detect and prevent
employment related identity fraud; and
``(V) such other information the Secretary determines is
necessary, subject to a 180 day notice and comment period in
the Federal Register.

``(ii) Penalties.--Any officer, employee, or contractor who
willfully and knowingly collects and maintains data in the
System other than data described in clause (i) shall be
guilty of a misdemeanor and fined not more than $1,000 for
each violation.
``(B) Limitation on use of data.--Whoever willfully and
knowingly accesses, discloses, or uses any information
obtained or maintained by the System--
``(i) for the purpose of committing identity fraud, or
assisting another person in committing identity fraud, as
defined in section 1028 of title 18, United States Code;
``(ii) for the purpose of unlawfully obtaining employment
in the United States or unlawfully obtaining employment in
the United States for any other person; or
``(iii) for any purpose other than as provided for under
any provision of law;

[[Page S946]]

shall be guilty of a felony and upon conviction shall be
fined under title 18, United States Code, or imprisoned for
not more than 5 years, or both.
``(C) Exceptions.--Nothing in subparagraph (A) or (B) may
be construed to limit the collection, maintenance, or use of
data by the Commissioner of Internal Revenue or the
Commissioner of Social Security as provided by law.
``(13) 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.
``(14) Annual gao study and report.--
``(A) Requirement.--The Comptroller General of the United
States shall conduct an annual study of the System.
``(B) Purpose.--The study shall evaluate the accuracy,
efficiency, integrity, and impact of the System.
``(C) Report.--Not later than the date that is 24 months
after the date that not less than $400,000,000 have been
appropriated and made available to the Secretary to implement
this subsection, and annually thereafter, the Comptroller
General shall submit to Congress a report containing the
findings of the study carried out under this paragraph. Each
such report shall include, at a minimum, the following:
``(i) An assessment of the annual report and certification
described in paragraph (8)(E)(ii).
``(ii) An assessment of System performance with respect to
the rate at which individuals who are eligible for employment
in the United States are correctly approved within each of
the periods specified in paragraph (8), including a separate
assessment of such rate for nationals and aliens.
``(iii) An assessment of the privacy and security of the
System and its effects on identity fraud or the misuse of
personal data.
``(iv) An assessment of the effects of the System on the
employment of unauthorized aliens.
``(v) An assessment of the effects of the System, including
the effects of tentative confirmations, on unfair
immigration-related employment practices and employment
discrimination based on national origin or citizenship
status.
``(vi) An assessment of whether the Secretary and the
Commissioner of Social Security have adequate resources to
carry out the duties and responsibilities of this section.
``(e) Compliance.--
``(1) Complaints and investigations.--The Secretary shall
establish procedures--
``(A) for individuals and entities to file complaints
regarding potential violations of subsection (a);
``(B) for the investigation of such complaints that the
Secretary determines are appropriate to investigate; and
``(C) for the investigation of other violations of
subsection (a) that the Secretary determines is appropriate.
``(2) Authority in investigations.--
``(A) In general.--In conducting investigations and
hearings under this subsection, officers and employees of the
Department of Homeland Security--
``(i) shall have reasonable access to examine evidence
regarding any employer being investigated; and
``(ii) if designated by the Secretary, may compel by
subpoena the attendance of witnesses and the production of
evidence at any designated place in an investigation or case
under this subsection.
``(B) Failure to cooperate.--In case of refusal to obey a
subpoena lawfully issued under subparagraph (A)(ii), the
Secretary may request that the Attorney General apply in an
appropriate district court of the United States for an order
requiring compliance with such subpoena, and any failure to
obey such order may be punished by such court as contempt.
``(C) Department of labor.--The Secretary of Labor shall
have the investigative authority provided under section 11(a)
of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)) to
ensure compliance with the provisions of this section.
``(3) Compliance procedures.--
``(A) Prepenalty notice.--If the Secretary has reasonable
cause to believe that there has been a violation of a
requirement of this section and determines that further
proceedings related to such violation are warranted, the
Secretary shall issue to the employer concerned a written
notice of the Secretary's intention to issue a claim for a
fine or other penalty. Such notice shall--
``(i) describe the violation;
``(ii) specify the laws and regulations allegedly violated;
``(iii) specify the amount of fines or other penalties to
be imposed;
``(iv) disclose the material facts which establish the
alleged violation; and
``(v) inform such employer that the employer shall have a
reasonable opportunity to make representations as to why a
claim for a monetary or other penalty should not be imposed.
``(B) Remission or mitigation of penalties.--
``(i) Review by secretary.--If the Secretary determines
that such fine or other penalty was incurred erroneously, or
determines the existence of such mitigating circumstances as
to justify the remission or mitigation of such fine or
penalty, the Secretary may remit or mitigate such fine or
other penalty on the terms and conditions as the Secretary
determines are reasonable and just, or order termination of
any proceedings related to the notice.
``(ii) Applicability.--This subparagraph may not apply to
an employer that has or is engaged in a pattern or practice
of violations of paragraph (1), (2), or (3) of subsection (a)
or of any other requirements of this section.
``(C) Penalty claim.--After considering evidence and
representations offered by the employer, the Secretary shall
determine whether there was a violation and promptly issue a
written final determination setting forth the findings of
fact and conclusions of law on which the determination is
based and the appropriate penalty.
``(4) Civil penalties.--
``(A) Hiring or continuing to employ unauthorized aliens.--
Any employer that violates any provision of paragraph (1),
(2), or (3) of subsection (a) shall pay civil penalties as
follows:
``(i) Pay a civil penalty of not less than $500 and not
more than $4,000 for each unauthorized alien with respect to
each such violation.
``(ii) If the employer has previously been fined 1 time
during the 12-month period preceding the violation 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.
``(iii) If the employer has previously been fined more than
1 time during the 24-month period preceding the violation
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.
``(B) Recordkeeping or verification practices.--Any
employer that violates or fails to comply with the
recordkeeping requirements of subsections (a), (c), and (d),
shall pay a civil penalty as follows:
``(i) Pay a civil penalty of not less than $200 and not
more than $2,000 for each such violation.
``(ii) If the employer has previously been fined 1 time
during the 12-month period preceding the violation under this
subparagraph, pay a civil penalty of not less than $400 and
not more than $4,000 for each such violation.
``(iii) If the employer has previously been fined more than
1 time during the 24-month period preceding the violation
under this subparagraph or has failed to comply with a
previously issued and final order related to such
requirements, pay a civil penalty of not less than $600 and
not more than $6,000 for each such violation.
``(C) Other penalties.--Notwithstanding subparagraphs (A)
and (B), the Secretary may impose additional penalties for
violations, including violations of cease and desist orders,
specially designed compliance plans to prevent further
violations, suspended fines to take effect in the event of a
further violation, and in appropriate cases, the criminal
penalty described in subsection (f).
``(5) Judicial review.--An employer adversely affected by a
final determination may, within 45 days after the date the
final determination is issued, file a petition in any
appropriate district court of the United States. The filing
of a petition as provided in this paragraph shall stay the
Secretary's determination until entry of judgment by the
court. The burden shall be on the employer to show that the
final determination was not supported by substantial
evidence. The Secretary is authorized to require that the
petitioner provide, prior to filing for review, security for
payment of fines and penalties through bond or other
guarantee of payment acceptable to the Secretary.
``(6) Enforcement of orders.--If an employer fails to
comply with a final determination issued against that
employer under this subsection, and the final determination
is not subject to review as provided in paragraph (5), the
Attorney General may file suit to enforce compliance with the
final determination, not earlier than 46 days and not later
than 180 days after the date the final determination is
issued, in any appropriate district court of the United
States. In any such suit, the validity and appropriateness of
the final determination shall not be subject to review.
``(7) Recovery of costs and attorney's fees.--In any appeal
brought under paragraph (5) or suit brought under paragraph
(6) of this section the employer shall be entitled to recover
from the Secretary reasonable costs and attorney's fees if
such employer substantially prevails on the merits of the
case. Such an award of attorney's fees may not exceed
$25,000. Any such costs and attorney's fees assessed against
the Secretary shall be charged against the operating expenses
of the Department for the fiscal year in which the assessment
is made, and may not be reimbursed from any other source.
``(f) Criminal Penalties and Injunctions for Pattern or
Practice Violations.--
``(1) Criminal penalty.--An employer that engages in a
pattern or practice of knowing violations of subsection
(a)(1)(A) or (a)(2) shall be fined not more than $20,000 for
each unauthorized alien with respect to whom such a violation
occurs, imprisoned for not

[[Page S947]]

more than 3 years for the entire pattern or practice, or
both.
``(2) Enjoining of pattern or practice violations.--If the
Secretary or the Attorney General has reasonable cause to
believe that an employer is engaged in a pattern or practice
of employment, recruitment, or referral in violation of
paragraph (1)(A) or (2) of subsection (a), the Attorney
General may bring a civil action in the appropriate district
court of the United States requesting a permanent or
temporary injunction, restraining order, or other order
against the employer, as the Secretary deems necessary.
``(g) Adjustment for Inflation.--All penalties and
limitations on the recovery of costs and attorney's fees in
this section shall be increased every 4 years beginning
January 2010 to reflect the percentage increase in the
consumer price index for all urban consumers (all items; U.S.
city average) for the 48 month period ending with September
of the year preceding the year such adjustment is made. Any
adjustment under this subparagraph shall be rounded to the
nearest dollar.
``(h) Prohibition of Indemnity Bonds.--
``(1) Prohibition.--It is unlawful for an employer, in the
hiring, recruiting, or 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.
``(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).
``(i) Prohibition on Award of Government Contracts, Grants,
and Agreements.--
``(1) Employers with no contracts, grants, or agreements.--
``(A) In general.--If an employer who does not hold a
Federal contract, grant, or cooperative agreement is
determined by the Secretary to be a repeat violator of this
section or is convicted of a crime under this section, the
employer shall be debarred from the receipt of a Federal
contract, grant, or cooperative agreement for a period of 5
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 5 years.
``(B) Waiver.--The Administrator of General Services, in
consultation with the Secretary and the Attorney General, may
waive operation of this subsection or may limit the duration
or scope of the debarment.
``(2) Employers with contracts, grants, or agreements.--
``(A) In general.--An employer who holds a Federal
contract, grant, or cooperative agreement and is determined
by the Secretary to be a repeat violator of this section or
is convicted of a crime under this section, shall be debarred
from the receipt of new Federal contracts, grants, or
cooperative agreements for a period of 5 years.
``(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 5 years.
``(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 5 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.
``(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.
``(j) Miscellaneous Provisions.--
``(1) Documentation.--In providing documentation or
endorsement of authorization of aliens eligible to be
employed in the United States, the Secretary shall provide
that any limitations with respect to the period or type of
employment or employer shall be conspicuously stated on the
documentation or endorsement (other than aliens lawfully
admitted for permanent residence).
``(2) Preemption.--The provisions of this section preempt
any State or local law 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.
``(k) Deposit of Amounts Received.--Except as otherwise
specified, civil penalties collected under this section shall
be deposited by the Secretary into the Employer Compliance
Fund established under section 286(w).
``(l) Definitions.--In this section:
``(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.
``(2) Secretary.--Except as otherwise provided, the term
`Secretary' means the Secretary of Homeland Security.
``(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--
``(A) an alien lawfully admitted for permanent residence;
or
``(B) authorized to be so employed by this Act or by the
Secretary.''.
(b) Conforming Amendments.--
(1) Amendments.--
(A) Repeal of basic pilot.--Sections 401, 402, 403, 404,
and 405 of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (division C of Public Law 104-208;
8 U.S.C. 1324a note) are repealed.
(B) Repeal of reporting requirements.--
(i) Report on earnings of aliens not authorized to work.--
Subsection (c) of section 290 of the Immigration and
Nationality Act (8 U.S.C. 1360) is repealed.
(ii) Report on fraudulent use of social security account
numbers.--Subsection (b) of section 414 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(division C of Public Law 104-208; 8 U.S.C. 1360 note) is
repealed.
(2) Construction.--Nothing in this subsection or in
subsection (d) of section 274A of the Immigration and
Nationality Act, as amended by subsection (a), may be
construed to limit the authority of the Secretary of Homeland
Security to allow or continue to allow the participation of
employers who participated in the basic pilot program under
sections 401, 402, 403, 404, and 405 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(division C of Public Law 104-208; 8 U.S.C. 1324a note) in
the Electronic Employment Verification System established
pursuant to such subsection (d).
(c) Technical Amendments.--
(1) Definition of unauthorized alien.--The Immigration and
Nationality Act is amended in sections 218(i)(1) (8 U.S.C.
1188(i)(1)), 245(c)(8) (8 U.S.C. 1255(c)(8)), 274(a)(3)(B)(i)
(8 U.S.C. 1324(a)(3)(B)(i)), and 274B(a)(1) (8 U.S.C.
1324b(a)(1)) are amended by striking ``274A(h)(3)'' and
inserting ``274A''.
(2) Document requirements.--Section 274B of the Immigration
and Nationality Act (8 U.S.C. 1324b) is amended--
(A) in subsections (a)(6) and (g)(2)(B), by striking
``274A(b)'' and inserting ``274A(c) and (d)''; and
(B) in subsection (g)(2)(B)(ii), by striking ``274A(b)(5)''
and inserting ``274A(c)''.
(d) Amendments to the Social Security Act.--Section
205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is
amended by adding at the end the following new subparagraphs:
``(I)(i) The Commissioner of Social Security shall, subject
to the provisions of section 201(f)(2) of the Fair Minimum
Wage Act of 2007, establish a reliable, secure method to
provide through the Electronic Employment Verification System
established pursuant to subsection (d) of section 274A of the
Immigration and Nationality Act (referred to in this
subparagraph as the `System'), within the time periods
required by paragraph (8) of such subsection--
``(I) a determination of whether the name, date of birth,
employer identification number, 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;
``(II) a determination of the citizenship status associated
with such name and social security account number, according
to the records maintained by the Commissioner;
``(III) a determination of whether the name and number
belongs to an individual who is deceased, according to the
records maintained by the Commissioner;
``(IV) a determination of whether the name and number is
blocked in accordance with clause (ii); and
``(V) a confirmation notice or a nonconfirmation notice
described in such paragraph (8), in a manner that ensures
that other information maintained by the Commissioner is not
disclosed or released to employers through the System.
``(ii) The Commissioner of Social Security shall prevent
the fraudulent or other misuse of a social security account
number by establishing procedures under which an individual
who has been assigned a social security account number may
block the use of such number under the System and remove such
block.
``(J) In assigning social security account numbers to
aliens who are authorized to work in the United States under
section 218A of the Immigration and Nationality Act, the
Commissioner of Social Security shall, to

[[Page S948]]

the maximum extent practicable, assign such numbers by
employing the enumeration procedure administered jointly by
the Commissioner, the Secretary of State, and the
Secretary.''.
(e) Disclosure of Certain Taxpayer Identity Information.--
(1) In general.--Section 6103(l) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(21) Disclosure of certain taxpayer identity information
by social security administration to department of homeland
security.--
``(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:
``(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 during
calendar year 2006, 2007, or 2008 which contains--

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

``(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, based
on a comparison with information submitted by the Secretary
of Homeland Security, contains evidence of identity fraud due
to the multiple use of the same taxpayer identifying number
(assigned under section 6109) of an employee (within the
meaning of section 6051).
``(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 which the Commissioner of Social
Security has reason to believe, based on a comparison with
information submitted by the Secretary of Homeland Security,
contains evidence of such person's failure to register and
participate in the Electronic Employment Verification System
authorized under section 274A(d) of the Immigration and
Nationality Act (hereafter in this paragraph referred to as
the `System').
``(iv) Disclosure of information regarding new employees of
nonparticipating employers.--Taxpayer identity information of
all employees (within the meaning of section 6051) hired
after the date a person identified in clause (iii) is
required to participate in the System under section
274A(d)(2) or section 274A(d)(3)(B) of the Immigration and
Nationality Act.
``(v) Disclosure of information regarding employees of
certain designated employers.--Taxpayer identity information
of all employees (within the meaning of section 6051) of each
person who is required to participate in the System under
section 274A(d)(3)(B) of the Immigration and Nationality Act.
``(vi) Disclosure of new hire taxpayer identity
information.--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--

``(I) the date such person begins to participate in the
System, or
``(II) the date of the request immediately preceding the
most recent request under this clause,

ending with the date of the most recent request under this
clause.
``(B) Restriction on disclosure.--The Commissioner of
Social Security shall disclose taxpayer identity information
under subparagraph (A) only for purposes of, and to the
extent necessary in--
``(i) establishing and enforcing employer participation in
the System,
``(ii) carrying out, including through civil administrative
and civil judicial proceedings, of sections 212, 217, 235,
237, 238, 274A, 274B, and 274C of the Immigration and
Nationality Act, and
``(iii) the civil operation of the Alien Terrorist Removal
Court.
``(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.
``(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.''.
(2) Compliance by dhs contractors with confidentiality
safeguards.--
(A) In general.--Section 6103(p) of such Code is amended by
adding at the end the following new paragraph:
``(9) Disclosure to dhs contractors.--Notwithstanding any
other provision of this section, no return or return
information shall be disclosed to any contractor of the
Department of Homeland Security unless such Department, to
the satisfaction of the Secretary--
``(A) has requirements in effect which require each such
contractor which would have access to returns or return
information to provide safeguards (within the meaning of
paragraph (4)) to protect the confidentiality of such returns
or return information,
``(B) agrees to conduct an on-site review every 3 years
(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,
``(C) submits the findings of the most recent review
conducted under subparagraph (B) to the Secretary as part of
the report required by paragraph (4)(E), and
``(D) certifies to the Secretary for the most recent annual
period that such contractor is in compliance with all such
requirements.
``The certification required by subparagraph (D) shall
include the name and address of each contractor, a
description of the contract or agreement with such
contractor, and the duration of such contract or
agreement.''.
(3) Conforming amendments.--
(A) Section 6103(a)(3) of such Code is amended by striking
``or (20)'' and inserting ``(20), or (21)''.
(B) Section 6103(p)(3)(A) of such Code is amended by adding
at the end the following new sentence: ``The Commissioner of
Social Security shall provide to the Secretary such
information as the Secretary may require in carrying out this
paragraph with respect to return information inspected or
disclosed under the authority of subsection (l)(21).''.
(C) Section 6103(p)(4) of such Code is amended--
(i) by striking ``or (17)'' both places it appears and
inserting ``(17), or (21)'', and
(ii) by striking ``or (20)'' each place it appears and
inserting ``(20), or (21)''.
(D) Section 6103(p)(8)(B) of such Code is amended by
inserting ``or paragraph (9)'' after ``subparagraph (A)''.
(E) Section 7213(a)(2) of such Code is amended by striking
``or (20)'' and inserting ``(20), or (21)''.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Homeland Security such sums as are necessary
to carry out the amendments made by this section.
(2) Limitation on verification responsibilities of
commissioner of social security.--The Commissioner of Social
Security is authorized to perform activities with respect to
carrying out the Commissioner's responsibilities in this
title or the amendments made by this title, but only to the
extent 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.
(g) Effective Dates.--
(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.
(2) Subsection (e).--
(A) In general.--The amendments made by subsection (e)
shall apply to disclosures made after the date of the
enactment of this Act.
(B) Certifications.--The first certification under section
6103(p)(9)(D) of the Internal Revenue Code of 1986, as added
by subsection (e)(2), shall be made with respect to calendar
year 2008.

SEC. 202. EMPLOYER COMPLIANCE FUND.

Section 286 of the Immigration and Nationality Act (8
U.S.C. 1356) is amended by adding at the end the following
new subsection:
``(w) Employer Compliance Fund.--
``(1) In general.--There is established in the general fund
of the Treasury, a separate account, which shall be known as
the `Employer Compliance Fund' (referred to in this
subsection as the `Fund').
``(2) Deposits.--There shall be deposited as offsetting
receipts into the Fund all civil monetary penalties collected
by the Secretary of Homeland Security under section 274A.
``(3) Purpose.--Amounts refunded to the Secretary from the
Fund shall be used for the purposes of enhancing and
enforcing employer compliance with section 274A.
``(4) Availability of funds.--Amounts deposited into the
Fund shall remain available until expended and shall be
refunded out of the Fund by the Secretary of the Treasury, at
least on a quarterly basis, to the Secretary of Homeland
Security.''.

SEC. 203. ADDITIONAL WORKSITE ENFORCEMENT AND FRAUD DETECTION
AGENTS.

(a) Increase in Number of Personnel.--The Secretary of
Homeland Security shall, subject to the availability of
appropriations for such purpose, annually increase, by not
less than 2,200, the number of personnel of the Bureau of
Immigration and Customs Enforcement during the 5-year period
beginning on the date of the enactment of this Act.
(b) Use of Personnel.--The Secretary of Homeland Security
shall ensure that not less than 25 percent of all the hours
expended by personnel of the Bureau of Immigration and
Customs Enforcement shall be used to enforce compliance with
sections 274A and 274C of the Immigration and Nationality Act
(8 U.S.C. 1324a and 1324c).
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Homeland Security for
each

[[Page S949]]

of the fiscal years 2008 through 2012 such sums as may be
necessary to carry out this section.

SEC. 204. CLARIFICATION OF INELIGIBILITY FOR
MISREPRESENTATION.

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

SEC. 205. ANTIDISCRIMINATION PROTECTIONS.

(a) Application of Prohibition of Discrimination to
Verification System.--Section 274B(a)(1) of the Immigration
and Nationality Act (8 U.S.C. 1324b(a)(1)) is amended by
inserting ``, the verification of the individual's work
authorization through the Electronic Employment Verification
System described in section 274A(d),'' after ``the individual
for employment''.
(b) Classes of Aliens as Protected Individuals.--Section
274B(a)(3)(B) of the Immigration and Nationality Act (8
U.S.C. 1324b(a)(3)(B)) is amended to read as follows:
``(B) is an alien who is--
``(i) lawfully admitted for permanent residence;
``(ii) granted the status of an alien lawfully admitted for
temporary residence under section 210(a) or 245(a)(1);
``(iii) admitted as a refugee under section 207;
``(iv) granted asylum under section 208;
``(v) granted the status of a nonimmigrant under section
101(a)(15)(H)(ii)(c);
``(vi) granted temporary protected status under section
244; or
``(vii) granted parole under section 212(d)(5).''.
(c) Requirements for Electronic Employment Verification.--
Section 274B(a) of the Immigration and Nationality Act (8
U.S.C. 1324b(a)) is amended by adding at the end the
following:
``(7) Antidiscrimination requirements of the electronic
employment verification system.--It is an unfair immigration-
related employment practice for a person or other entity, in
the course of the electronic verification process described
in section 274A(d)--
``(A) to terminate or undertake any adverse employment
action due to a tentative nonconfirmation;
``(B) to use the verification system for screening of an
applicant prior to an offer of employment;
``(C) except as described in section 274A(d)(3)(B), to use
the verification system for a current employee after the
first 3 days of employment, or for the reverification of an
employee after the employee has satisfied the process
described in section 274A(d); or
``(D) to require an individual to make an inquiry under the
self-verification procedures established in section
274A(d)(8)(E)(iii).''.
(d) Increase in Civil Money Penalties.--Section 274B(g)(2)
of the Immigration and Nationality Act (8 U.S.C. 1324b(g)(2))
is amended--
(1) in subparagraph (B)(iv)--
(A) in subclause (I), by striking ``$250 and not more than
$2,000'' and inserting ``$1,000 and not more than $4,000'';
(B) in subclause (II), by striking ``$2,000 and not more
than $5,000'' and inserting ``$4,000 and not more than
$10,000'';
(C) in subclause (III), by striking ``$3,000 and not more
than $10,000'' and inserting ``$6,000 and not more than
$20,000''; and
(D) in subclause (IV), by striking ``$100 and not more than
$1,000'' and inserting ``$500 and not more than $5,000''.
(e) Increased Funding of Information Campaign.--Section
274B(l)(3) of the Immigration and Nationality Act (8 U.S.C.
1324b(l)(3)) is amended by inserting ``and an additional
$40,000,000 for each of fiscal years 2008 through 2010''
before the period at the end.
(f) Effective Date.--The amendments made by this section
shall take effect on the date that is 180 days after the date
of the enactment of this Act and shall apply to violations
occurring on or after such date.
______

SA 144. Mr. SESSIONS submitted an amendment intended to be proposed
to amendment SA 100 proposed by Mr. Reid (for Mr. Baucus) to the bill
H.R. 2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the end, add the following:

TITLE II--UNLAWFUL EMPLOYMENT OF ALIENS

SEC. 201. UNLAWFUL EMPLOYMENT OF ALIENS.

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

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

``(a) Making Employment of Unauthorized Aliens Unlawful.--
``(1) In general.--It is unlawful for an employer--
``(A) to hire, or to recruit or refer for a fee, an alien
for employment in the United States knowing, or with reckless
disregard, that the alien is an unauthorized alien with
respect to such employment; or
``(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).
``(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.
``(3) Use of labor through contract.--
``(A) In general.--An employer who uses a contract,
subcontract, or exchange to obtain the labor of an alien in
the United States knowing, or with reckless disregard--
``(i) that the alien is an unauthorized alien with respect
to performing such labor, shall be considered to have hired
the alien in violation of paragraph (1)(A); or
``(ii) that the person hiring such alien failed to comply
with the requirements of subsections (c) and (d) shall be
considered to have hired the alien in violation of paragraph
(1)(B).
``(B) Information sharing.--The person hiring the alien
shall provide to the employer, who obtains the labor of the
alien, the employer identification number assigned to such
person by the Commissioner of Internal Revenue. Failure to
provide such number shall be considered a recordkeeping
violation under subsection (e)(4)(B).
``(C) Reporting requirement.--The employer shall submit to
the Electronic Verification System established under
subsection (d), in a manner prescribed by the Secretary, the
employer identification number provided by the person hiring
the alien. Failure to submit such number shall be considered
a recordkeeping violation under subsection (e)(4)(B).
``(D) Enforcement.--The Secretary shall implement
procedures to utilize the information obtained under
subparagraphs (B) and (C) to identify employers who use a
contract, subcontract, or exchange to obtain the labor of an
alien from another person, where such person hiring such
alien fails to comply with the requirements of subsections
(c) and (d).
``(4) Defense.--
``(A) In general.--Subject to subparagraph (B), an employer
that establishes that the employer has complied in good faith
with the requirements of subsections (c) and (d) has
established an affirmative defense that the employer has not
violated paragraph (1)(A) with respect to such hiring,
recruiting, or referral.
``(B) Exception.--Until the date that an employer is
required to participate in the Electronic Employment
Verification System under subsection (d) or is participating
in such System on a voluntary basis, the employer may
establish an affirmative defense under subparagraph (A) by
complying with the requirements of subsection (c).
``(b) Order of Internal Review and Certification of
Compliance.--
``(1) Authority to require certification.--If the Secretary
has reasonable cause to believe that an employer has failed
to comply with this section, the Secretary is authorized, at
any time, to require that the employer certify that the
employer is in compliance with this section, or has
instituted a program to come into compliance.
``(2) Content of certification.--Not later than 60 days
after the date an employer receives a request for a
certification under paragraph (1) the employer shall certify
under penalty of perjury that--
``(A) the employer is in compliance with the requirements
of subsections (c) and (d); or
``(B) that the employer has instituted a program to come
into compliance with such requirements.
``(3) Extension.--The 60-day period referred to in
paragraph (2), may be extended by the Secretary for good
cause, at the request of the employer.
``(4) Publication.--The Secretary is authorized to publish
in the Federal Register standards or methods for
certification under paragraph (1) and for specific
recordkeeping practices with respect to such certification,
and procedures for the audit of any records related to such
certification.
``(c) Document Verification Requirements.--An employer
hiring, or recruiting or referring for a fee, an individual
for employment in the United States shall verify that the
individual is eligible for such employment by meeting the
following requirements:
``(1) Attestation by employer.--
``(A) Requirements.--
``(i) In general.--The employer shall attest, under penalty
of perjury and on a form prescribed by the Secretary, that
the employer has verified the identity and eligibility for
employment of the individual by examining a document
described in subparagraph (B).
``(ii) Signature requirements.--An attestation required by
clause (i) may be manifested by a handwritten or electronic
signature.
``(iii) Standards for examination.--The employer has
complied with the requirement of this paragraph with respect
to examination of documentation if a reasonable person would
conclude that the document examined is genuine and relates to
the individual whose identity and eligibility for employment
in the United States is being verified. If the individual
provides a document sufficient to meet the requirements of
this paragraph, nothing in this paragraph shall be construed
as requiring an employer to solicit any other document or as
requiring the individual to produce any other document.
``(B) Identification documents.--A document described in
this subparagraph is--
``(i) in the case of an individual who is a national of the
United States--

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

[[Page S950]]

possession of the United States that satisfies the
requirements of division B of Public Law 109-13 (119 Stat.
302);

``(ii) in the case of an alien lawfully admitted for
permanent residence in the United States, a permanent
resident card, as specified by the Secretary;
``(iii) in the case of an alien who is authorized under
this Act or by the Secretary to be employed in the United
States, an employment authorization card, as specified by the
Secretary that--

``(I) contains a photograph of the individual or other
identifying information, including name, date of birth,
gender, and address; and
``(II) contains security features to make the document
resistant to tampering, counterfeiting, and fraudulent use;

``(iv) in the case of an individual who is unable to obtain
a document described in clause (i), (ii), or (iii), a
document designated by the Secretary that--

``(I) contains a photograph of the individual or other
identifying information, including name, date of birth,
gender, and address; and
``(II) contains security features to make the document
resistant to tampering, counterfeiting, and fraudulent use;
or

``(v) until the date that an employer is required to
participate in the Electronic Employment Verification System
under subsection (d) or is participating in such System on a
voluntary basis, a document, or a combination of documents,
of such type that, as of the date of the enactment of the
Fair Minimum Wage Act of 2007, the Secretary had established
by regulation were sufficient for purposes of this section.
``(C) Authority to prohibit use of certain documents.--
``(i) Authority.--If the Secretary finds that a document or
class of documents described in subparagraph (B) is not
reliable to establish identity or is being used fraudulently
to an unacceptable degree, the Secretary shall prohibit, or
impose conditions, on the use of such document or class of
documents for purposes of this subsection.
``(ii) Requirement for publication.--The Secretary shall
publish notice of any findings under clause (i) in the
Federal Register.
``(2) Attestation of employee.--
``(A) Requirements.--
``(i) In general.--The individual shall attest, under
penalty of perjury on the form described in paragraph
(1)(A)(i), that the individual is a national of the United
States, an alien lawfully admitted for permanent residence,
or an alien who is authorized under this Act or by the
Secretary to be hired, or to be recruited or referred for a
fee, in the United States.
``(ii) Signature for examination.--An attestation required
by clause (i) may be manifested by a handwritten or
electronic signature.
``(B) Penalties.--An individual who falsely represents that
the individual is eligible for employment in the United
States in an attestation required by subparagraph (A) shall,
for each such violation, be subject to a fine of not more
than $5,000, a term of imprisonment not to exceed 3 years, or
both.
``(3) Retention of attestation.--The employer shall retain
a paper, microfiche, microfilm, or electronic version of the
attestations made under paragraph (1) and (2) and make such
attestations available for inspection by an officer of the
Department of Homeland Security, any other person designated
by the Secretary, the Special Counsel for Immigration-Related
Unfair Employment Practices of the Department of Justice, or
the Secretary of Labor during a period beginning on the date
of the hiring, or recruiting or referring for a fee, of the
individual and ending--
``(A) in the case of the recruiting or referral for a fee
(without hiring) of an individual, 5 years after the date of
the recruiting or referral; or
``(B) in the case of the hiring of an individual the later
of--
``(i) 5 years after the date of such hiring;
``(ii) 1 year after the date the individual's employment is
terminated; or
``(iii) in the case of an employer or class of employers, a
period that is less than the applicable period described in
clause (i) or (ii) if the Secretary reduces such period for
such employer or class of employers.
``(4) Document retention and recordkeeping requirements.--
``(A) Retention of documents.--Notwithstanding any other
provision of law, an employer shall retain, for the
applicable period described in paragraph (3), the following
documents:
``(i) In general.--The employer shall copy all documents
presented by an individual described in paragraph (1)(B) and
shall retain paper, microfiche, microfilm, or electronic
copies of such documents. Such copies shall be designated as
copied documents.
``(ii) Other documents.--The employer shall maintain
records of any action taken and copies of any correspondence
written or received with respect to the verification of an
individual's identity or eligibility for employment in the
United States.
``(B) Use of retained documents.--An employer shall use
copies retained under clause (i) or (ii) of subparagraph (A)
only for the purposes of complying with the requirements of
this subsection, except as otherwise permitted under law.
``(5) Penalties.--An employer that fails to comply with the
recordkeeping requirements of this subsection shall be
subject to the penalties described in subsection (e)(4)(B).
``(6) No authorization of national identification cards.--
Nothing in this section may be construed to authorize,
directly or indirectly, the issuance, use, or establishment
of a national identification card.
``(d) Electronic Employment Verification System.--
``(1) Requirement for system.--The Secretary, in
cooperation with the Commissioner of Social Security, shall
implement an Electronic Employment Verification System
(referred to in this subsection as the `System') to determine
whether--
``(A) the identifying information submitted by an
individual is consistent with the information maintained by
the Secretary or the Commissioner of Social Security; and
``(B) such individual is eligible for employment in the
United States.
``(2) Requirement for participation.--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 not less than $400,000,000 have been appropriated
and made available to implement this subsection.
``(3) Other participation in system.--Notwithstanding
paragraph (2), the Secretary has the authority--
``(A) to permit any employer that is not required to
participate in the System under paragraph (2) to participate
in the System on a voluntary basis; and
``(B) to require any employer or class of employers to
participate on a priority basis in the System with respect to
individuals employed as of, or hired after, the date of
enactment of the Fair Minimum Wage Act of 2007--
``(i) if the Secretary designates such employer or class of
employers as a critical employer based on an assessment of
homeland security or national security needs; or
``(ii) if the Secretary has reasonable cause to believe
that the employer has engaged in material violations of
paragraph (1), (2), or (3) of subsection (a).
``(4) Requirement to notify.--The Secretary shall notify
the employer or class of employers in writing regarding the
requirement for participation in the System under paragraph
(3)(B) not less than 60 days prior to the effective date of
such requirement. Such notice shall include the training
materials described in paragraph (8)(E)(v).
``(5) Registration of employers.--An employer shall
register the employer's participation in the System in the
manner prescribed by the Secretary prior to the date the
employer is required or permitted to submit information with
respect to an employee under this subsection.
``(6) Additional guidance.--A registered employer shall be
permitted to utilize any technology that is consistent with
this section and with any regulation or guidance from the
Secretary to streamline the procedures to facilitate
compliance with--
``(A) the attestation requirement in subsection (c); and
``(B) the employment eligibility verification requirements
in this subsection.
``(7) Consequence of failure to participate.--If an
employer is required to participate in the System and fails
to comply with the requirements of the System with respect to
an employee--
``(A) such failure shall be treated as a violation of
subsection (a)(1)(B); and
``(B) a rebuttable presumption is created that the employer
has violated subsection (a)(1)(A), however, such presumption
may not apply to a prosecution under subsection (f)(1).
``(8) Design and operation of system.--
``(A) In general.--The Secretary shall, through the
System--
``(i) respond to each inquiry made by a registered employer
through the Internet or other electronic media, or over a
toll-free telephone line regarding an individual's identity
and eligibility for employment in the United States; and
``(ii) maintain a record of each such inquiry and the
information provided in response to such inquiry.
``(B) Initial inquiry.--
``(i) Information required.--A registered employer shall,
with respect to the hiring, or recruiting or referring for a
fee, any individual for employment in the United States,
obtain from the individual and record on the form described
in subsection (c)(1)(A)(i)--

``(I) the individual's name and date of birth and, if the
individual was born in the United States, the State in which
such individual was born;
``(II) the individual's social security account number;
``(III) the employment identification number of the
individual's employer during any one of the 5 most recently
completed calendar years; and
``(IV) in the case of an individual who does not attest
that the individual is a national of the United States under
subsection (c)(1)(A)(i), such alien identification or
authorization number that the Secretary shall require.

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

``(I) not later than 3 days after the date of the hiring,
or recruiting or referring for a fee, of the individual (as
the case may be); or

[[Page S951]]

``(II) in the case of an employee hired by a critical
employer designated by the Secretary under paragraph (3)(B)
at such time as the Secretary shall specify.

``(iii) EIN requirements.--

``(I) Requirement to provide.--An employer shall provide
the employer identification number issued to such employer to
the individual, upon request, for purposes of providing the
information under clause (i)(III).
``(II) Requirement to affirmatively state a lack of recent
employment.--An individual providing information under clause
(i)(III) who was not employed in the United States during any
of the 5 most recently completed calendar years shall
affirmatively state on the form described in subsection
(c)(1)(A)(i) that no employer identification number is
provided because the individual was not employed in the
United States during such period.

``(C) Initial response.--Not later than 10 days after an
employer submits an inquiry to the System regarding an
individual, the Secretary shall provide, through the System,
to the employer--
``(i) if the System is able to confirm the individual's
identity and eligibility for employment in the United States,
a confirmation notice, including the appropriate codes on
such confirmation notice; or
``(ii) if the System is unable to confirm the individual's
identity or eligibility for employment in the United States,
and after a secondary manual verification has been conducted,
a tentative nonconfirmation notice, including the appropriate
codes on such tentative nonconfirmation notice.
``(D) Confirmation or nonconfirmation.--
``(i) Confirmation upon initial inquiry.--If an employer
receives a confirmation notice under paragraph (C)(i) for an
individual, the employer shall record, on the form described
in subsection (c)(1)(A)(i), the appropriate code provided in
such notice.
``(ii) Tentative nonconfirmation.--If an employer receives
a tentative nonconfirmation notice under paragraph (C)(ii)
for an individual, the employer shall inform such individual
of the issuance of such notice in writing, on a form
prescribed by the Secretary not later than 3 days after
receiving such notice. Such individual shall acknowledge
receipt of such notice in writing on the form described in
subsection (c)(1)(A)(i).
``(iii) No contest.--If the individual does not contest the
tentative nonconfirmation notice within 10 days of receiving
notice from the individual's employer, the notice shall
become final and the employer shall record on the form
described in subsection (1)(A)(i), the appropriate code
provided through the System to indicate the individual did
not contest the tentative nonconfirmation. An individual's
failure to contest a tentative nonconfirmation shall not be
considered an admission of guilt with respect to any
violation of this Act or any other provision of law.
``(iv) Contest.--If the individual contests the tentative
nonconfirmation notice, the individual shall submit
appropriate information to contest such notice under the
procedures established in subparagraph (E)(iii) not later
than 10 days after receiving the notice from the individual's
employer.
``(v) Effective period of tentative nonconfirmation
notice.--A tentative nonconfirmation notice shall remain in
effect until such notice becomes final under clause (iii), or
the earlier of--

``(I) a final confirmation notice or final nonconfirmation
notice is issued through the System; or
``(II) 30 days after the individual contests a tentative
nonconfirmation under clause (iv).

``(vi) Automatic final notice.--

``(I) In general.--If a final notice is not issued within
the 30-day period described in clause (v)(II), the Secretary
shall automatically provide to the employer, through the
System, the appropriate code indicating a final notice.
``(II) Period prior to initial certification.--During the
period beginning on the date of the enactment of the Fair
Minimum Wage Act of 2007 and ending on the date the Secretary
submits the initial report described in subparagraph (E)(ii),
an automatic notice issued under subclause (I) shall be a
final confirmation notice.
``(III) Period after initial certification.--After the date
that the Secretary submits the initial report described in
subparagraph (E)(ii), an automatic notice issued under
subclause (I) shall be a final confirmation notice unless the
most recent such report includes a certification that the
System is able to correctly issue, within the period
beginning on the date an employer submits an inquiry to the
System and ending on the date an automatic default notice
would be issued by the System, 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. If the most recent such report includes such a
certification, the automatic notice issued under subclause
(I) shall be a final nonconfirmation notice.
``(IV) Additional authority.--Notwithstanding the second
sentence of subclause (III), the Secretary shall have the
authority to issue a final confirmation notice for an
individual who would be subject to a final nonconfirmation
notice under such sentence. In such a case, the Secretary
shall determine the individual's eligibility for employment
in the United States and record the results of such
determination in the System within 12 months.

``(vii) Effective period of final notice.--A final
confirmation notice issued under this paragraph for an
individual shall remain in effect--

``(I) during any continuous period of employment of such
individual by such employer, unless the Secretary determines
the final confirmation was the result of identity fraud; or
``(II) in the case of an alien authorized to be employed in
the United States for a temporary period, during such period.

``(viii) 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 (iii) or a final nonconfirmation notice is
issued for the individual by the System. Nothing in this
clause shall prohibit the termination of employment for any
reason other than such tentative nonconfirmation.
``(ix) Recording of contest resolution.--The employer shall
record on the form described in subsection (c)(1)(A)(i) the
appropriate code that is provided through the System to
indicate a final confirmation notice or final nonconfirmation
notice.
``(x) 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).
``(E) Responsibilities of the secretary.--
``(i) In general.--The Secretary shall establish a
reliable, secure method to provide through the System, within
the time periods required by this subsection--

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

``(ii) Annual report and certification.--Not later than the
date that is 24 months after the date that not less than
$400,000,000 have been appropriated and made available to the
Secretary to implement this subsection, and annually
thereafter, the Secretary shall submit to Congress a report
that includes--

``(I) an assessment of whether the System is able to
correctly issue, within the period described in subparagraph
(D)(v)(II), a final notice in at least 99 percent of the
cases in which the final notice relates to an individual who
is eligible for employment in the United States (excluding an
individual who fails to contest a tentative nonconfirmation
notice); and
``(II) if the assessment under subclause (I) is that the
System is able to correctly issue within the specified time
period a final notice in at least 99 percent of the cases
described in such subclause, a certification of such
assessment.

``(iii) Contest and self-verification.--The Secretary in
consultation with the Commissioner of Social Security, shall
establish procedures to permit an individual who contests a
tentative or final nonconfirmation notice, or seeks to verify
the individual's own employment eligibility prior to
obtaining or changing employment, to contact the appropriate
agency and, in a timely manner, correct or update the
information used by the System.
``(iv) Information to employee.--The Secretary shall
develop a written form for employers to provide to
individuals who receive a tentative or final nonconfirmation
notice. Such form shall be made available in a language other
than English, as necessary and reasonable, and shall
include--

``(I) information about the reason for such notice;
``(II) the right to contest such notice;
``(III) contact information for the appropriate agency and
instructions for initiating such contest; and
``(IV) a 24-hour toll-free telephone number to respond to
inquiries related to such notice.

``(v) Training materials.--The Secretary shall make
available or provide to the employer, upon request, not later
than 60 days prior to such employer's participation in the
System, appropriate training materials to facilitate
compliance with this subsection, and sections 274B(a)(7) and
274C(a).
``(F) Responsibilities of the commissioner of social
security.--The responsibilities of the Commissioner of Social
Security with respect to the System are set out in section
205(c)(2) of the Social Security Act.
``(9) Protection from liability.--No employer that
participates in the System shall be liable under any law for
any employment-related action taken with respect to an
individual in good faith reliance on information provided by
the System.
``(10) Administrative review.--
``(A) In general.--An individual who is terminated from
employment as a result of a final nonconfirmation notice may,
not later

[[Page S952]]

than 60 days after the date of such termination, file an
appeal of such notice.
``(B) Procedures.--The Secretary and Commissioner of Social
Security shall develop procedures to review appeals filed
under subparagraph (A) and to make final determinations on
such appeals.
``(C) Review for errors.--If a final determination on an
appeal filed under subparagraph (A) results in a confirmation
of an individual's eligibility to work in the United States,
the administrative review process shall require the Secretary
to determine if the final nonconfirmation notice issued for
the individual was the result of--
``(i) an error or negligence on the part of an employee or
official operating or responsible for the System;
``(ii) the decision rules, processes, or procedures
utilized by the System; or
``(iii) erroneous system information that was not the
result of acts or omissions of the individual.
``(D) Compensation for error.--
``(i) In general.--If the Secretary makes a determination
under subparagraph (C) that the final nonconfirmation notice
issued for an individual was not caused by an act or omission
of the individual, the Secretary shall compensate the
individual for lost wages.
``(ii) Calculation of lost wages.--Lost wages shall be
calculated based on the wage rate and work schedule that
prevailed prior to termination. The individual shall be
compensated for wages lost beginning on the first scheduled
work day after employment was terminated and ending 180 days
after completion of the administrative review process
described in this paragraph or the day after the individual
is reinstated or obtains employment elsewhere, whichever
occurs first.
``(E) Limitation on compensation.--For purposes of
determining an individual's compensation for the loss of
employment, such compensation shall not include any period in
which the individual was ineligible for employment in the
United States.
``(F) Source of funds.--Compensation or reimbursement
provided under this paragraph shall not be provided from
funds appropriated in annual appropriations Acts to the
Secretary for the Department of Homeland Security.
``(11) Judicial review.--
``(A) In general.--After the Secretary makes a final
determination on an appeal filed by an individual under the
administrative review process described in paragraph (10),
the individual may obtain judicial review of such
determination by a civil action commenced not later than 60
days after the date of such decision, or such further time as
the Secretary may allow.
``(B) Jurisdiction.--A civil action for such judicial
review shall be brought in the district court of the United
States for the judicial district in which the plaintiff
resides, or has a principal place of business, or, if the
plaintiff does not reside or have a principal place of
business within any such judicial district, in the District
Court of the United States for the District of Columbia.
``(C) Answer.--As part of the Secretary's answer to a
complaint for such judicial review, the Secretary shall file
a certified copy of the administrative record compiled during
the administrative review under paragraph (10), including the
evidence upon which the findings and decision complained of
are based. The court shall have power to enter, upon the
pleadings and transcript of the record, a judgment affirming
or reversing the result of that administrative review, with
or without remanding the cause for a rehearing.
``(D) Compensation for error.--
``(i) In general.--In cases in which such judicial review
reverses the final determination of the Secretary made under
paragraph (10), the court shall compensate the individual for
lost wages.
``(ii) Calculation of lost wages.--Lost wages shall be
calculated based on the wage rate and work scheduled that
prevailed prior to termination. The individual shall be
compensated for wages lost beginning on the first scheduled
work day after employment was terminated and ending 180 days
after completion of the judicial review described in this
paragraph or the day after the individual is reinstated or
obtains employment elsewhere, whichever occurs first.
``(12) Limitation on collection and use of data.--
``(A) Limitation on collection of data.--
``(i) In general.--The System shall collect and maintain
only the minimum data necessary to facilitate the successful
operation of the System, and in no case shall the data be
other than--

``(I) information necessary to register employers under
paragraph (5);
``(II) information necessary to initiate and respond to
inquiries or contests under paragraph (8);
``(III) information necessary to establish and enforce
compliance with paragraphs (5) and (8);
``(IV) information necessary to detect and prevent
employment related identity fraud; and
``(V) such other information the Secretary determines is
necessary, subject to a 180 day notice and comment period in
the Federal Register.

``(ii) Penalties.--Any officer, employee, or contractor who
willfully and knowingly collects and maintains data in the
System other than data described in clause (i) shall be
guilty of a misdemeanor and fined not more than $1,000 for
each violation.
``(B) Limitation on use of data.--Whoever willfully and
knowingly accesses, discloses, or uses any information
obtained or maintained by the System--
``(i) for the purpose of committing identity fraud, or
assisting another person in committing identity fraud, as
defined in section 1028 of title 18, United States Code;
``(ii) for the purpose of unlawfully obtaining employment
in the United States or unlawfully obtaining employment in
the United States for any other person; or
``(iii) for any purpose other than as provided for under
any provision of law;
shall be guilty of a felony and upon conviction shall be
fined under title 18, United States Code, or imprisoned for
not more than 5 years, or both.
``(C) Exceptions.--Nothing in subparagraph (A) or (B) may
be construed to limit the collection, maintenance, or use of
data by the Commissioner of Internal Revenue or the
Commissioner of Social Security as provided by law.
``(13) 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.
``(14) Annual gao study and report.--
``(A) Requirement.--The Comptroller General of the United
States shall conduct an annual study of the System.
``(B) Purpose.--The study shall evaluate the accuracy,
efficiency, integrity, and impact of the System.
``(C) Report.--Not later than the date that is 24 months
after the date that not less than $400,000,000 have been
appropriated and made available to the Secretary to implement
this subsection, and annually thereafter, the Comptroller
General shall submit to Congress a report containing the
findings of the study carried out under this paragraph. Each
such report shall include, at a minimum, the following:
``(i) An assessment of the annual report and certification
described in paragraph (8)(E)(ii).
``(ii) An assessment of System performance with respect to
the rate at which individuals who are eligible for employment
in the United States are correctly approved within each of
the periods specified in paragraph (8), including a separate
assessment of such rate for nationals and aliens.
``(iii) An assessment of the privacy and security of the
System and its effects on identity fraud or the misuse of
personal data.
``(iv) An assessment of the effects of the System on the
employment of unauthorized aliens.
``(v) An assessment of the effects of the System, including
the effects of tentative confirmations, on unfair
immigration-related employment practices and employment
discrimination based on national origin or citizenship
status.
``(vi) An assessment of whether the Secretary and the
Commissioner of Social Security have adequate resources to
carry out the duties and responsibilities of this section.
``(e) Compliance.--
``(1) Complaints and investigations.--The Secretary shall
establish procedures--
``(A) for individuals and entities to file complaints
regarding potential violations of subsection (a);
``(B) for the investigation of such complaints that the
Secretary determines are appropriate to investigate; and
``(C) for the investigation of other violations of
subsection (a) that the Secretary determines is appropriate.
``(2) Authority in investigations.--
``(A) In general.--In conducting investigations and
hearings under this subsection, officers and employees of the
Department of Homeland Security--
``(i) shall have reasonable access to examine evidence
regarding any employer being investigated; and
``(ii) if designated by the Secretary, may compel by
subpoena the attendance of witnesses and the production of
evidence at any designated place in an investigation or case
under this subsection.
``(B) Failure to cooperate.--In case of refusal to obey a
subpoena lawfully issued under subparagraph (A)(ii), the
Secretary may request that the Attorney General apply in an
appropriate district court of the United States for an order
requiring compliance with such subpoena, and any failure to
obey such order may be punished by such court as contempt.
``(C) Department of labor.--The Secretary of Labor shall
have the investigative authority provided under section 11(a)
of the Fair Labor Standards Act of 1938 (29 U.S.C. 211(a)) to
ensure compliance with the provisions of this section.
``(3) Compliance procedures.--
``(A) Prepenalty notice.--If the Secretary has reasonable
cause to believe that there has been a violation of a
requirement of this section and determines that further
proceedings related to such violation are warranted, the
Secretary shall issue to the employer concerned a written
notice of the Secretary's intention to issue a claim for a
fine or other penalty. Such notice shall--
``(i) describe the violation;

[[Page S953]]

``(ii) specify the laws and regulations allegedly violated;
``(iii) specify the amount of fines or other penalties to
be imposed;
``(iv) disclose the material facts which establish the
alleged violation; and
``(v) inform such employer that the employer shall have a
reasonable opportunity to make representations as to why a
claim for a monetary or other penalty should not be imposed.
``(B) Remission or mitigation of penalties.--
``(i) Review by secretary.--If the Secretary determines
that such fine or other penalty was incurred erroneously, or
determines the existence of such mitigating circumstances as
to justify the remission or mitigation of such fine or
penalty, the Secretary may remit or mitigate such fine or
other penalty on the terms and conditions as the Secretary
determines are reasonable and just, or order termination of
any proceedings related to the notice.
``(ii) Applicability.--This subparagraph may not apply to
an employer that has or is engaged in a pattern or practice
of violations of paragraph (1), (2), or (3) of subsection (a)
or of any other requirements of this section.
``(C) Penalty claim.--After considering evidence and
representations offered by the employer, the Secretary shall
determine whether there was a violation and promptly issue a
written final determination setting forth the findings of
fact and conclusions of law on which the determination is
based and the appropriate penalty.
``(4) Civil penalties.--
``(A) Hiring or continuing to employ unauthorized aliens.--
Any employer that violates any provision of paragraph (1),
(2), or (3) of subsection (a) shall pay civil penalties as
follows:
``(i) Pay a civil penalty of not less than $500 and not
more than $4,000 for each unauthorized alien with respect to
each such violation.
``(ii) If the employer has previously been fined 1 time
during the 12-month period preceding the violation 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.
``(iii) If the employer has previously been fined more than
1 time during the 24-month period preceding the violation
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.
``(B) Recordkeeping or verification practices.--Any
employer that violates or fails to comply with the
recordkeeping requirements of subsections (a), (c), and (d),
shall pay a civil penalty as follows:
``(i) Pay a civil penalty of not less than $200 and not
more than $2,000 for each such violation.
``(ii) If the employer has previously been fined 1 time
during the 12-month period preceding the violation under this
subparagraph, pay a civil penalty of not less than $400 and
not more than $4,000 for each such violation.
``(iii) If the employer has previously been fined more than
1 time during the 24-month period preceding the violation
under this subparagraph or has failed to comply with a
previously issued and final order related to such
requirements, pay a civil penalty of not less than $600 and
not more than $6,000 for each such violation.
``(C) Other penalties.--Notwithstanding subparagraphs (A)
and (B), the Secretary may impose additional penalties for
violations, including violations of cease and desist orders,
specially designed compliance plans to prevent further
violations, suspended fines to take effect in the event of a
further violation, and in appropriate cases, the criminal
penalty described in subsection (f).
``(5) Judicial review.--An employer adversely affected by a
final determination may, within 45 days after the date the
final determination is issued, file a petition in any
appropriate district court of the United States. The filing
of a petition as provided in this paragraph shall stay the
Secretary's determination until entry of judgment by the
court. The burden shall be on the employer to show that the
final determination was not supported by substantial
evidence. The Secretary is authorized to require that the
petitioner provide, prior to filing for review, security for
payment of fines and penalties through bond or other
guarantee of payment acceptable to the Secretary.
``(6) Enforcement of orders.--If an employer fails to
comply with a final determination issued against that
employer under this subsection, and the final determination
is not subject to review as provided in paragraph (5), the
Attorney General may file suit to enforce compliance with the
final determination, not earlier than 46 days and not later
than 180 days after the date the final determination is
issued, in any appropriate district court of the United
States. In any such suit, the validity and appropriateness of
the final determination shall not be subject to review.
``(7) Recovery of costs and attorney's fees.--In any appeal
brought under paragraph (5) or suit brought under paragraph
(6) of this section the employer shall be entitled to recover
from the Secretary reasonable costs and attorney's fees if
such employer substantially prevails on the merits of the
case. Such an award of attorney's fees may not exceed
$25,000. Any such costs and attorney's fees assessed against
the Secretary shall be charged against the operating expenses
of the Department for the fiscal year in which the assessment
is made, and may not be reimbursed from any other source.
``(f) Criminal Penalties and Injunctions for Pattern or
Practice Violations.--
``(1) Criminal penalty.--An employer that engages in a
pattern or practice of knowing violations of subsection
(a)(1)(A) or (a)(2) shall be fined not more than $20,000 for
each unauthorized alien with respect to whom such a violation
occurs, imprisoned for not more than 3 years for the entire
pattern or practice, or both.
``(2) Enjoining of pattern or practice violations.--If the
Secretary or the Attorney General has reasonable cause to
believe that an employer is engaged in a pattern or practice
of employment, recruitment, or referral in violation of
paragraph (1)(A) or (2) of subsection (a), the Attorney
General may bring a civil action in the appropriate district
court of the United States requesting a permanent or
temporary injunction, restraining order, or other order
against the employer, as the Secretary deems necessary.
``(g) Adjustment for Inflation.--All penalties and
limitations on the recovery of costs and attorney's fees in
this section shall be increased every 4 years beginning
January 2010 to reflect the percentage increase in the
consumer price index for all urban consumers (all items; U.S.
city average) for the 48 month period ending with September
of the year preceding the year such adjustment is made. Any
adjustment under this subparagraph shall be rounded to the
nearest dollar.
``(h) Prohibition of Indemnity Bonds.--
``(1) Prohibition.--It is unlawful for an employer, in the
hiring, recruiting, or 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.
``(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).
``(i) Prohibition on Award of Government Contracts, Grants,
and Agreements.--
``(1) Employers with no contracts, grants, or agreements.--
``(A) In general.--If an employer who does not hold a
Federal contract, grant, or cooperative agreement is
determined by the Secretary to be a repeat violator of this
section or is convicted of a crime under this section, the
employer shall be debarred from the receipt of a Federal
contract, grant, or cooperative agreement for a period of 5
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 5 years.
``(B) Waiver.--The Administrator of General Services, in
consultation with the Secretary and the Attorney General, may
waive operation of this subsection or may limit the duration
or scope of the debarment.
``(2) Employers with contracts, grants, or agreements.--
``(A) In general.--An employer who holds a Federal
contract, grant, or cooperative agreement and is determined
by the Secretary to be a repeat violator of this section or
is convicted of a crime under this section, shall be debarred
from the receipt of new Federal contracts, grants, or
cooperative agreements for a period of 5 years.
``(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 5 years.
``(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 5 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.
``(3) Suspension.--Indictments for violations of this
section or adequate evidence of

[[Page S954]]

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.
``(j) Miscellaneous Provisions.--
``(1) Documentation.--In providing documentation or
endorsement of authorization of aliens eligible to be
employed in the United States, the Secretary shall provide
that any limitations with respect to the period or type of
employment or employer shall be conspicuously stated on the
documentation or endorsement (other than aliens lawfully
admitted for permanent residence).
``(2) Preemption.--The provisions of this section preempt
any State or local law 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.
``(k) Deposit of Amounts Received.--Except as otherwise
specified, civil penalties collected under this section shall
be deposited by the Secretary into the Employer Compliance
Fund established under section 286(w).
``(l) Definitions.--In this section:
``(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.
``(2) Secretary.--Except as otherwise provided, the term
`Secretary' means the Secretary of Homeland Security.
``(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--
``(A) an alien lawfully admitted for permanent residence;
or
``(B) authorized to be so employed by this Act or by the
Secretary.''.
(b) Conforming Amendments.--
(1) Amendments.--
(A) Repeal of basic pilot.--Sections 401, 402, 403, 404,
and 405 of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (division C of Public Law 104-208;
8 U.S.C. 1324a note) are repealed.
(B) Repeal of reporting requirements.--
(i) Report on earnings of aliens not authorized to work.--
Subsection (c) of section 290 of the Immigration and
Nationality Act (8 U.S.C. 1360) is repealed.
(ii) Report on fraudulent use of social security account
numbers.--Subsection (b) of section 414 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(division C of Public Law 104-208; 8 U.S.C. 1360 note) is
repealed.
(2) Construction.--Nothing in this subsection or in
subsection (d) of section 274A of the Immigration and
Nationality Act, as amended by subsection (a), may be
construed to limit the authority of the Secretary of Homeland
Security to allow or continue to allow the participation of
employers who participated in the basic pilot program under
sections 401, 402, 403, 404, and 405 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(division C of Public Law 104-208; 8 U.S.C. 1324a note) in
the Electronic Employment Verification System established
pursuant to such subsection (d).
(c) Technical Amendments.--
(1) Definition of unauthorized alien.--The Immigration and
Nationality Act is amended in sections 218(i)(1) (8 U.S.C.
1188(i)(1)), 245(c)(8) (8 U.S.C. 1255(c)(8)), 274(a)(3)(B)(i)
(8 U.S.C. 1324(a)(3)(B)(i)), and 274B(a)(1) (8 U.S.C.
1324b(a)(1)) are amended by striking ``274A(h)(3)'' and
inserting ``274A''.
(2) Document requirements.--Section 274B of the Immigration
and Nationality Act (8 U.S.C. 1324b) is amended--
(A) in subsections (a)(6) and (g)(2)(B), by striking
``274A(b)'' and inserting ``274A(c) and (d)''; and
(B) in subsection (g)(2)(B)(ii), by striking ``274A(b)(5)''
and inserting ``274A(c)''.
(d) Amendments to the Social Security Act.--Section
205(c)(2) of the Social Security Act (42 U.S.C. 405(c)(2)) is
amended by adding at the end the following new subparagraphs:
``(I)(i) The Commissioner of Social Security shall, subject
to the provisions of section 201(f)(2) of the Fair Minimum
Wage Act of 2007, establish a reliable, secure method to
provide through the Electronic Employment Verification System
established pursuant to subsection (d) of section 274A of the
Immigration and Nationality Act (referred to in this
subparagraph as the `System'), within the time periods
required by paragraph (8) of such subsection--
``(I) a determination of whether the name, date of birth,
employer identification number, 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;
``(II) a determination of the citizenship status associated
with such name and social security account number, according
to the records maintained by the Commissioner;
``(III) a determination of whether the name and number
belongs to an individual who is deceased, according to the
records maintained by the Commissioner;
``(IV) a determination of whether the name and number is
blocked in accordance with clause (ii); and
``(V) a confirmation notice or a nonconfirmation notice
described in such paragraph (8), in a manner that ensures
that other information maintained by the Commissioner is not
disclosed or released to employers through the System.
``(ii) The Commissioner of Social Security shall prevent
the fraudulent or other misuse of a social security account
number by establishing procedures under which an individual
who has been assigned a social security account number may
block the use of such number under the System and remove such
block.
``(J) In assigning social security account numbers to
aliens who are authorized to work in the United States under
section 218A of the Immigration and Nationality Act, the
Commissioner of Social Security shall, 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.''.
(e) Disclosure of Certain Taxpayer Identity Information.--
(1) In general.--Section 6103(l) of the Internal Revenue
Code of 1986 is amended by adding at the end the following
new paragraph:
``(21) Disclosure of certain taxpayer identity information
by social security administration to department of homeland
security.--
``(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:
``(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 during
calendar year 2006, 2007, or 2008 which contains--

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

``(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, based
on a comparison with information submitted by the Secretary
of Homeland Security, contains evidence of identity fraud due
to the multiple use of the same taxpayer identifying number
(assigned under section 6109) of an employee (within the
meaning of section 6051).
``(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 which the Commissioner of Social
Security has reason to believe, based on a comparison with
information submitted by the Secretary of Homeland Security,
contains evidence of such person's failure to register and
participate in the Electronic Employment Verification System
authorized under section 274A(d) of the Immigration and
Nationality Act (hereafter in this paragraph referred to as
the `System').
``(iv) Disclosure of information regarding new employees of
nonparticipating employers.--Taxpayer identity information of
all employees (within the meaning of section 6051) hired
after the date a person identified in clause (iii) is
required to participate in the System under section
274A(d)(2) or section 274A(d)(3)(B) of the Immigration and
Nationality Act.
``(v) Disclosure of information regarding employees of
certain designated employers.--Taxpayer identity information
of all employees (within the meaning of section 6051) of each
person who is required to participate in the System under
section 274A(d)(3)(B) of the Immigration and Nationality Act.
``(vi) Disclosure of new hire taxpayer identity
information.--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--

``(I) the date such person begins to participate in the
System, or
``(II) the date of the request immediately preceding the
most recent request under this clause,

ending with the date of the most recent request under this
clause.
``(B) Restriction on disclosure.--The Commissioner of
Social Security shall disclose taxpayer identity information
under subparagraph (A) only for purposes of, and to the
extent necessary in--
``(i) establishing and enforcing employer participation in
the System,
``(ii) carrying out, including through civil administrative
and civil judicial proceedings, of sections 212, 217, 235,
237, 238, 274A, 274B, and 274C of the Immigration and
Nationality Act, and
``(iii) the civil operation of the Alien Terrorist Removal
Court.
``(C) Reimbursement.--The Commissioner of Social Security
shall prescribe a reasonable fee schedule for furnishing
taxpayer identity information under this paragraph

[[Page S955]]

and collect such fees in advance from the Secretary of
Homeland Security.
``(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.''.
(2) Compliance by dhs contractors with confidentiality
safeguards.--
(A) In general.--Section 6103(p) of such Code is amended by
adding at the end the following new paragraph:
``(9) Disclosure to dhs contractors.--Notwithstanding any
other provision of this section, no return or return
information shall be disclosed to any contractor of the
Department of Homeland Security unless such Department, to
the satisfaction of the Secretary--
``(A) has requirements in effect which require each such
contractor which would have access to returns or return
information to provide safeguards (within the meaning of
paragraph (4)) to protect the confidentiality of such returns
or return information,
``(B) agrees to conduct an on-site review every 3 years
(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,
``(C) submits the findings of the most recent review
conducted under subparagraph (B) to the Secretary as part of
the report required by paragraph (4)(E), and
``(D) certifies to the Secretary for the most recent annual
period that such contractor is in compliance with all such
requirements.
``The certification required by subparagraph (D) shall
include the name and address of each contractor, a
description of the contract or agreement with such
contractor, and the duration of such contract or
agreement.''.
(3) Conforming amendments.--
(A) Section 6103(a)(3) of such Code is amended by striking
``or (20)'' and inserting ``(20), or (21)''.
(B) Section 6103(p)(3)(A) of such Code is amended by adding
at the end the following new sentence: ``The Commissioner of
Social Security shall provide to the Secretary such
information as the Secretary may require in carrying out this
paragraph with respect to return information inspected or
disclosed under the authority of subsection (l)(21).''.
(C) Section 6103(p)(4) of such Code is amended--
(i) by striking ``or (17)'' both places it appears and
inserting ``(17), or (21)'', and
(ii) by striking ``or (20)'' each place it appears and
inserting ``(20), or (21)''.
(D) Section 6103(p)(8)(B) of such Code is amended by
inserting ``or paragraph (9)'' after ``subparagraph (A)''.
(E) Section 7213(a)(2) of such Code is amended by striking
``or (20)'' and inserting ``(20), or (21)''.
(f) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated to
the Secretary of Homeland Security such sums as are necessary
to carry out the amendments made by this section.
(2) Limitation on verification responsibilities of
commissioner of social security.--The Commissioner of Social
Security is authorized to perform activities with respect to
carrying out the Commissioner's responsibilities in this
title or the amendments made by this title, but only to the
extent 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.
(g) Effective Dates.--
(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.
(2) Subsection (e).--
(A) In general.--The amendments made by subsection (e)
shall apply to disclosures made after the date of the
enactment of this Act.
(B) Certifications.--The first certification under section
6103(p)(9)(D) of the Internal Revenue Code of 1986, as added
by subsection (e)(2), shall be made with respect to calendar
year 2008.

SEC. 202. EMPLOYER COMPLIANCE FUND.

Section 286 of the Immigration and Nationality Act (8
U.S.C. 1356) is amended by adding at the end the following
new subsection:
``(w) Employer Compliance Fund.--
``(1) In general.--There is established in the general fund
of the Treasury, a separate account, which shall be known as
the `Employer Compliance Fund' (referred to in this
subsection as the `Fund').
``(2) Deposits.--There shall be deposited as offsetting
receipts into the Fund all civil monetary penalties collected
by the Secretary of Homeland Security under section 274A.
``(3) Purpose.--Amounts refunded to the Secretary from the
Fund shall be used for the purposes of enhancing and
enforcing employer compliance with section 274A.
``(4) Availability of funds.--Amounts deposited into the
Fund shall remain available until expended and shall be
refunded out of the Fund by the Secretary of the Treasury, at
least on a quarterly basis, to the Secretary of Homeland
Security.''.

SEC. 203. ADDITIONAL WORKSITE ENFORCEMENT AND FRAUD DETECTION
AGENTS.

(a) Increase in Number of Personnel.--The Secretary of
Homeland Security shall, subject to the availability of
appropriations for such purpose, annually increase, by not
less than 2,200, the number of personnel of the Bureau of
Immigration and Customs Enforcement during the 5-year period
beginning on the date of the enactment of this Act.
(b) Use of Personnel.--The Secretary of Homeland Security
shall ensure that not less than 25 percent of all the hours
expended by personnel of the Bureau of Immigration and
Customs Enforcement shall be used to enforce compliance with
sections 274A and 274C of the Immigration and Nationality Act
(8 U.S.C. 1324a and 1324c).
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of Homeland Security for
each of the fiscal years 2008 through 2012 such sums as may
be necessary to carry out this section.

SEC. 204. CLARIFICATION OF INELIGIBILITY FOR
MISREPRESENTATION.

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

SEC. 205. ANTIDISCRIMINATION PROTECTIONS.

(a) Application of Prohibition of Discrimination to
Verification System.--Section 274B(a)(1) of the Immigration
and Nationality Act (8 U.S.C. 1324b(a)(1)) is amended by
inserting ``, the verification of the individual's work
authorization through the Electronic Employment Verification
System described in section 274A(d),'' after ``the individual
for employment''.
(b) Classes of Aliens as Protected Individuals.--Section
274B(a)(3)(B) of the Immigration and Nationality Act (8
U.S.C. 1324b(a)(3)(B)) is amended to read as follows:
``(B) is an alien who is--
``(i) lawfully admitted for permanent residence;
``(ii) granted the status of an alien lawfully admitted for
temporary residence under section 210(a) or 245(a)(1);
``(iii) admitted as a refugee under section 207;
``(iv) granted asylum under section 208;
``(v) granted the status of a nonimmigrant under section
101(a)(15)(H)(ii)(c);
``(vi) granted temporary protected status under section
244; or
``(vii) granted parole under section 212(d)(5).''.
(c) Requirements for Electronic Employment Verification.--
Section 274B(a) of the Immigration and Nationality Act (8
U.S.C. 1324b(a)) is amended by adding at the end the
following:
``(7) Antidiscrimination requirements of the electronic
employment verification system.--It is an unfair immigration-
related employment practice for a person or other entity, in
the course of the electronic verification process described
in section 274A(d)--
``(A) to terminate or undertake any adverse employment
action due to a tentative nonconfirmation;
``(B) to use the verification system for screening of an
applicant prior to an offer of employment;
``(C) except as described in section 274A(d)(3)(B), to use
the verification system for a current employee after the
first 3 days of employment, or for the reverification of an
employee after the employee has satisfied the process
described in section 274A(d); or
``(D) to require an individual to make an inquiry under the
self-verification procedures established in section
274A(d)(8)(E)(iii).''.
(d) Increase in Civil Money Penalties.--Section 274B(g)(2)
of the Immigration and Nationality Act (8 U.S.C. 1324b(g)(2))
is amended--
(1) in subparagraph (B)(iv)--
(A) in subclause (I), by striking ``$250 and not more than
$2,000'' and inserting ``$1,000 and not more than $4,000'';
(B) in subclause (II), by striking ``$2,000 and not more
than $5,000'' and inserting ``$4,000 and not more than
$10,000'';
(C) in subclause (III), by striking ``$3,000 and not more
than $10,000'' and inserting ``$6,000 and not more than
$20,000''; and
(D) in subclause (IV), by striking ``$100 and not more than
$1,000'' and inserting ``$500 and not more than $5,000''.
(e) Increased Funding of Information Campaign.--Section
274B(l)(3) of the Immigration and Nationality Act (8 U.S.C.
1324b(l)(3)) is amended by inserting ``and an additional
$40,000,000 for each of fiscal years 2008 through 2010''
before the period at the end.
(f) Effective Date.--The amendments made by this section
shall take effect on the date that is 180 days after the date
of the enactment of this Act and shall apply to violations
occurring on or after such date.

______

SA 145. Mr. SESSIONS (for himself, Mr. Inhofe, and Mr. Grassley)
submitted an amendment intended to be proposed by him to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

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:
``(10) Prohibition on award of government contracts,
grants, and agreements.--

[[Page S956]]

``(A) Employers with no contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subparagraph
(C), if an employer who does not hold a Federal contract,
grant, or cooperative agreement is determined to have
violated this section, the employer shall be debarred from
the receipt of a Federal contract, grant, or cooperative
agreement for a period of 7 years.
``(ii) Placement on excluded list.--The Secretary of
Homeland Security or the Attorney General shall advise the
Administrator of General Services of the debarment of an
employer under clause (i) 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 7 years.
``(iii) Waiver.--

``(I) Authority.--The Administrator of General Services, in
consultation with the Secretary of Homeland Security and the
Attorney General, may waive operation of clause (i) or may
limit the duration or scope of a debarment under clause (i)
if such waiver or limitation is necessary to national defense
or in the interest of national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternative action under this clause
shall not be judicially reviewed.

``(B) Employers with contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subclause
(C), an employer who holds a Federal contract, grant, or
cooperative agreement and is determined to have violated this
section shall be debarred from the receipt of new Federal
contracts, grants, or cooperative agreements for a period of
10 years.
``(ii) Notice to agencies.--Prior to debarring the employer
under clause (i), the Secretary of Homeland Security, 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 10 years.
``(iii) Waiver.--

``(I) Authority.--After consideration of the views of any
agency or department that holds a contract, grant, or
cooperative agreement with the employer, the Administrator of
General Services, in consultation with the Secretary of
Homeland Security and the Attorney General, may waive
operation of clause (i) or may limit the duration or scope of
the debarment under clause (i) if such waiver or limitation
is necessary to the national defense or in the interest of
national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternate action under this clause
shall not be judicially reviewed.

``(C) Exemption from penalty for employers participating in
the basic pilot program.--In the case of imposition on an
employer of a debarment from the receipt of a Federal
contract, grant, or cooperative agreement under subparagraph
(A) or (B), that penalty shall be waived if the employer
establishes that the employer was voluntarily participating
in the basic pilot program under section 403(a) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) at the time of the violations
of this section that resulted in the debarment.''.
______

SA 146. Mr. SESSIONS (for himself and Mr. Inhofe) submitted an
amendment intended to be proposed by him to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

(a) Penalties for Unlawful Employment of Aliens.--Section
274A of the Immigration and Nationality Act (8 U.S.C. 1324a)
is amended--
(1) in subsection (e)(4)--
(A) in subparagraph (A)(i), by striking ``not less than
$250 and not more than $2,000'' and inserting ``not less than
$5000 and not more than $7,500'';
(B) in subparagraph (A)(ii), by striking ``not less than
$2,000 and not more than $5,000'' and inserting ``not less
than $10,000 and not more than $15,000''; and
(C) in subparagraph (A)(iii), by striking ``not less than
$3,000 and not more than $10,000'' and inserting ``not less
than $25,000 and not more than $40,00'';
(2) in subsection (e)(5)--
(A) by inserting ``, subject to paragraph (10),'' after
``in an amount'';
(B) by striking ``$100 and not more than $1,000'' and
inserting ``$1,000 and not more than $25,000''; and
(C) by adding at the end the following sentence:
``Providing information to the basic pilot program described
in section 403(a) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note)
that the person or entity knows or reasonably believes to be
false, shall be treated as a violation of subsection
(a)(1)(A) and shall not qualify for the exemption provided by
(e)(10).'';
(3) by adding at the end of subsection (e) the following
new paragraph:
``(10) Exemption from penalty for employers participating
in the basic pilot program.--In the case of imposition of a
civil penalty under paragraph (4)(A) with respect to a
violation of subsection (a)(1)(A) or (a)(2) for hiring or
continuation of employment by an employer and in the case of
imposition of a civil penalty under paragraph (5) for a
violation of subsection (a)(1)(B) for hiring or recruitment
or referral by a person or entity, the penalty otherwise
imposed shall be waived if the violator establishes that it
was voluntarily participating in the basic pilot electronic
verification program at the time of the offense.'';
(4) by amending paragraph (1) of subsection (f) to read as
follows:
``(1) Criminal penalty.--Any person or entity which engages
in a pattern or practice of violations of paragraph (1) or
(2) of subsection (a) shall be fined not less than $3,000 and
more than $50,000 for each unauthorized alien with respect to
which such a violation occurs, imprisoned for not less than
one year, or both, notwithstanding the provisions of any
other Federal law relating to fine levels.''; and
(5) in subsection (f)(2), by striking ``Attorney General''
each place it appears and inserting ``Secretary of Homeland
Security''.
(b) Retention and Use of Employment Eligibility
Verification Documents.--
(1) Retention.--Section 274A(b) of the Immigration and
Nationality Act (8 U.S.C. 1324a(b)) is amended by striking
paragraph (4) and inserting the following:
``(4) Copying and retention of documentation.--
``(A) In general.--A person or entity required to examine a
document described in subparagraph (B), (C), or (D) of
paragraph (1) or receive an attestation described in
paragraph (2) shall retain a paper, microfiche, microfilm, or
electronic version of each such document and attestation,
indicate that each such version is a copied document, and
make such versions available for inspection by an officer of
the Department of Homeland Security or 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 the
period beginning on the date of the hiring, or recruiting or
referring for a fee, of the individual and ending--
``(i) in the case of the recruiting or referral for a fee
(without hiring) of an individual, 5 years after the date of
the recruiting or referral; or
``(ii) in the case of the hiring of an individual the later
of--

``(I) 5 years after the date of such hiring; or
``(II) 1 year after the date the individual's employment is
terminated.

``(B) Other records.--Such person or entity shall maintain
records of any action taken and copies of any correspondence
written or received with respect to the verification of an
individual's identity or eligibility for employment in the
United States.''.
(2) Limitation on use of retained documents.--Paragraph (5)
of section 274A(b) of the Immigration and Nationality Act (8
U.S.C. 1324a(b)) is amended--
(A) in the heading, by striking ``Limitation on use of
attestation form'' and inserting ``Attestation form'';
(B) by redesignating such paragraph (5) as subparagraph
(A);
(C) by indenting such subparagraph, as so designated, six
ems from the left margin;
(D) by inserting before such subparagraph, as so
designated, the following:
``(5) Limitation on use.--''; and
(E) by inserting after such subparagraph, as so designated,
the following new subparagraph:
``(B) Retained documents.--A person or entity required to
retain versions of documents or attestations or maintain
records under paragraph (4) shall use any such version,
attestation, or record only for the purposes of complying
with the requirements of this subsection, except as otherwise
permitted under law.''.
(c) Extension of the Basic Pilot Program.--Section 403(a)
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended
by adding at the end the following new paragraph:
``(5) Individuals covered.--Notwithstanding any other
provision of this title, a person or other entity that elects
to participate in the basic pilot program shall follow the
procedures described in paragraphs (1) thorough (4) for each
individual who the person or entity hires (or recruits or
refers) for employment and for each individual who is
employed by the person or entity.''.

[[Page S957]]

______

SA 147. Mr. SESSIONS (for himself and Mr. Inhofe) submitted an
amendment intended to be proposed to amendment SA 100 proposed by Mr.
Reid (for Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor
Standards Act of 1938 to provide for an increase in the Federal minimum
wage; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. RESPONSIBLE EMPLOYER REQUIREMENTS.

(a) Penalties for Unlawful Employment of Aliens.--Section
274A of the Immigration and Nationality Act (8 U.S.C. 1324a)
is amended--
(1) in subsection (e)(4)--
(A) in subparagraph (A)(i), by striking ``not less than
$250 and not more than $2,000'' and inserting ``not less than
$5000 and not more than $7,500'';
(B) in subparagraph (A)(ii), by striking ``not less than
$2,000 and not more than $5,000'' and inserting ``not less
than $10,000 and not more than $15,000''; and
(C) in subparagraph (A)(iii), by striking ``not less than
$3,000 and not more than $10,000'' and inserting ``not less
than $25,000 and not more than $40,00'';
(2) in subsection (e)(5)--
(A) by inserting ``, subject to paragraph (10),'' after
``in an amount'';
(B) by striking ``$100 and not more than $1,000'' and
inserting ``$1,000 and not more than $25,000''; and
(C) by adding at the end the following sentence:
``Providing information to the basic pilot program described
in section 403(a) of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note)
that the person or entity knows or reasonably believes to be
false, shall be treated as a violation of subsection
(a)(1)(A) and shall not qualify for the exemption provided by
(e)(10).'';
(3) by adding at the end of subsection (e) the following
new paragraph:
``(10) Exemption from penalty for employers participating
in the basic pilot program.--In the case of imposition of a
civil penalty under paragraph (4)(A) with respect to a
violation of subsection (a)(1)(A) or (a)(2) for hiring or
continuation of employment by an employer and in the case of
imposition of a civil penalty under paragraph (5) for a
violation of subsection (a)(1)(B) for hiring or recruitment
or referral by a person or entity, the penalty otherwise
imposed shall be waived if the violator establishes that it
was voluntarily participating in the basic pilot electronic
verification program at the time of the offense.'';
(4) by amending paragraph (1) of subsection (f) to read as
follows:
``(1) Criminal penalty.--Any person or entity which engages
in a pattern or practice of violations of paragraph (1) or
(2) of subsection (a) shall be fined not less than $3,000 and
more than $50,000 for each unauthorized alien with respect to
which such a violation occurs, imprisoned for not less than
one year, or both, notwithstanding the provisions of any
other Federal law relating to fine levels.''; and
(5) in subsection (f)(2), by striking ``Attorney General''
each place it appears and inserting ``Secretary of Homeland
Security''.
(b) Retention and Use of Employment Eligibility
Verification Documents.--
(1) Retention.--Section 274A(b) of the Immigration and
Nationality Act (8 U.S.C. 1324a(b)) is amended by striking
paragraph (4) and inserting the following:
``(4) Copying and retention of documentation.--
``(A) In general.--A person or entity required to examine a
document described in subparagraph (B), (C), or (D) of
paragraph (1) or receive an attestation described in
paragraph (2) shall retain a paper, microfiche, microfilm, or
electronic version of each such document and attestation,
indicate that each such version is a copied document, and
make such versions available for inspection by an officer of
the Department of Homeland Security or 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 the
period beginning on the date of the hiring, or recruiting or
referring for a fee, of the individual and ending--
``(i) in the case of the recruiting or referral for a fee
(without hiring) of an individual, 5 years after the date of
the recruiting or referral; or
``(ii) in the case of the hiring of an individual the later
of--

``(I) 5 years after the date of such hiring; or
``(II) 1 year after the date the individual's employment is
terminated.

``(B) Other records.--Such person or entity shall maintain
records of any action taken and copies of any correspondence
written or received with respect to the verification of an
individual's identity or eligibility for employment in the
United States.''.
(2) Limitation on use of retained documents.--Paragraph (5)
of section 274A(b) of the Immigration and Nationality Act (8
U.S.C. 1324a(b)) is amended--
(A) in the heading, by striking ``Limitation on use of
attestation form'' and inserting ``Attestation form'';
(B) by redesignating such paragraph (5) as subparagraph
(A);
(C) by indenting such subparagraph, as so designated, six
ems from the left margin;
(D) by inserting before such subparagraph, as so
designated, the following:
``(5) Limitation on use.--''; and
(E) by inserting after such subparagraph, as so designated,
the following new subparagraph:
``(B) Retained documents.--A person or entity required to
retain versions of documents or attestations or maintain
records under paragraph (4) shall use any such version,
attestation, or record only for the purposes of complying
with the requirements of this subsection, except as otherwise
permitted under law.''.
(c) Extension of the Basic Pilot Program.--Section 403(a)
of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended
by adding at the end the following new paragraph:
``(5) Individuals covered.--Notwithstanding any other
provision of this title, a person or other entity that elects
to participate in the basic pilot program shall follow the
procedures described in paragraphs (1) thorough (4) for each
individual who the person or entity hires (or recruits or
refers) for employment and for each individual who is
employed by the person or entity.''.

______

SA 148. Mr. SESSIONS (for himself, Mr. Inhofe, and Mr. Grassley)
submitted an amendment intended to be proposed to amendment SA 100
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the
Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. RESPONSIBLE GOVERNMENT CONTRACTOR REQUIREMENTS.

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:
``(10) Prohibition on award of government contracts,
grants, and agreements.--
``(A) Employers with no contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subparagraph
(C), if an employer who does not hold a Federal contract,
grant, or cooperative agreement is determined to have
violated this section, the employer shall be debarred from
the receipt of a Federal contract, grant, or cooperative
agreement for a period of 7 years.
``(ii) Placement on excluded list.--The Secretary of
Homeland Security or the Attorney General shall advise the
Administrator of General Services of the debarment of an
employer under clause (i) 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 7 years.
``(iii) Waiver.--

``(I) Authority.--The Administrator of General Services, in
consultation with the Secretary of Homeland Security and the
Attorney General, may waive operation of clause (i) or may
limit the duration or scope of a debarment under clause (i)
if such waiver or limitation is necessary to national defense
or in the interest of national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House of Representatives immediate notice of
such waiver or limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternative action under this clause
shall not be judicially reviewed.

``(B) Employers with contracts, grants, or agreements.--
``(i) In general.--Subject to clause (iii) and subclause
(C), an employer who holds a Federal contract, grant, or
cooperative agreement and is determined to have violated this
section shall be debarred from the receipt of new Federal
contracts, grants, or cooperative agreements for a period of
10 years.
``(ii) Notice to agencies.--Prior to debarring the employer
under clause (i), the Secretary of Homeland Security, 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 10 years.
``(iii) Waiver.--

``(I) Authority.--After consideration of the views of any
agency or department that holds a contract, grant, or
cooperative agreement with the employer, the Administrator of
General Services, in consultation with the Secretary of
Homeland Security and the Attorney General, may waive
operation of clause (i) or may limit the duration or scope of
the debarment under clause (i) if such waiver or limitation
is necessary to the national defense or in the interest of
national security.
``(II) Notification to congress.--If the Administrator
grants a waiver or limitation described in subclause (I), the
Administrator shall submit to each member of the Committee on
the Judiciary of the Senate and of the Committee on the
Judiciary of the House

[[Page S958]]

of Representatives immediate notice of such waiver or
limitation.
``(III) Prohibition on judicial review.--The decision of
whether to debar or take alternate action under this clause
shall not be judicially reviewed.

``(C) Exemption from penalty for employers participating in
the basic pilot program.--In the case of imposition on an
employer of a debarment from the receipt of a Federal
contract, grant, or cooperative agreement under subparagraph
(A) or (B), that penalty shall be waived if the employer
establishes that the employer was voluntarily participating
in the basic pilot program under section 403(a) of the
Illegal Immigration Reform and Immigrant Responsibility Act
of 1996 (8 U.S.C. 1324a note) at the time of the violations
of this section that resulted in the debarment.''.

______

SA 149. Mr. ENSIGN (for himself and Mr. Inhofe) submitted an
amendment intended to be proposed by him to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. PRECLUSION OF SOCIAL SECURITY CREDITS PRIOR TO
ENUMERATION.

(a) Insured Status.--Section 214 of the Social Security Act
(42 U.S.C. 414) is amended by adding at the end, the
following new subsection:
``(d)(1) Except as provided in paragraph (2), no quarter of
coverage shall be credited for purposes of this section if,
with respect to any individual who is assigned a social
security account number on or after the date of enactment of
the Fair Minimum Wage Act of 2007, such quarter of coverage
is earned prior to the year in which such social security
account number is assigned.
``(2) Paragraph (1) shall not apply with respect to any
quarter of coverage earned by an individual who, at such time
such quarter of coverage is earned, satisfies the criterion
specified in subsection (c)(2).''.
(b) Benefit Computation.--Section 215(e) of such Act (42
U.S.C. 415(e)) is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) in computing the average indexed monthly earnings of
an individual who is assigned a social security account
number on or after the date of enactment of the Fair Minimum
Wage Act of 2007, there shall not be counted any wages or
self-employment income for which no quarter of coverage may
be credited to such individual as a result of the application
of section 214(d).''.

______

SA 150. Mr. ENSIGN (for himself, Mr. Sessions, Mr. Craig, Mrs. Dole,
Mr. Thomas, Mr. Cornyn, Mr. Inhofe, Mr. Isakson, and Mr. Coleman)
submitted an amendment intended to be proposed by him to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. TRANSMITTAL AND APPROVAL OF TOTALIZATION AGREEMENTS.

(a) In General.--Section 233(e) of the Social Security Act
(42 U.S.C. 433(e)) is amended to read as follows:
``(e)(1) Any agreement to establish a totalization
arrangement which is entered into with another country under
this section shall enter into force with respect to the
United States if (and only if)--
``(A) the President, at least 90 calendar days before the
date on which the President enters into the agreement,
notifies each House of Congress of the President's intention
to enter into the agreement, and promptly thereafter
publishes notice of such intention in the Federal Register,
``(B) the President transmits the text of such agreement to
each House of Congress as provided in paragraph (2), and
``(C) an approval resolution regarding such agreement has
passed both Houses of Congress and has been enacted into law.
``(2)(A) Whenever an agreement referred to in paragraph (1)
is entered into, the President shall transmit to each House
of Congress a document setting forth the final legal text of
such agreement and including a report by the President in
support of such agreement. The President's report shall
include the following:
``(i) An estimate by the Chief Actuary of the Social
Security Administration of the effect of the agreement, in
the short term and in the long term, on the receipts and
disbursements under the social security system established by
this title.
``(ii) A statement of any administrative action proposed to
implement the agreement and how such action will change or
affect existing law.
``(iii) A statement describing whether and how the
agreement changes provisions of an agreement previously
negotiated.
``(iv) A statement describing how and to what extent the
agreement makes progress in achieving the purposes, policies,
and objectives of this title.
``(v) An estimate by the Chief Actuary of the Social
Security Administration, working in consultation with the
Comptroller General of the United States, of the number of
individuals who may become eligible for any benefits under
this title or who may otherwise be affected by the agreement.
``(vi) An assessment of the integrity of the retirement
data and records (including birth, death, and marriage
records) of the other country that is the subject of the
agreement.
``(vii) An assessment of the ability of such country to
track and monitor recipients of benefits under such
agreement.
``(B) If any separate agreement or other understanding with
another country (whether oral or in writing) relating to an
agreement to establish a totalization arrangement under this
section is not disclosed to Congress in the transmittal to
Congress under this paragraph of the agreement to establish a
totalization arrangement, then such separate agreement or
understanding shall not be considered to be part of the
agreement approved by Congress under this section and shall
have no force and effect under United States law.
``(3) For purposes of this subsection, the term `approval
resolution' means a joint resolution, the matter after the
resolving clause of which is as follows: `That the proposed
agreement entered into pursuant to section 233 of the Social
Security Act between the United States and _______
establishing totalization arrangements between the social
security system established by title II of such Act and the
social security system of _______, transmitted to Congress by
the President on ______, is hereby approved.', the first two
blanks therein being filled with the name of the country with
which the United States entered into the agreement, and the
third blank therein being filled with the date of the
transmittal of the agreement to Congress.
``(4) Whenever a document setting forth an agreement
entered into under this section and the President's report in
support of the agreement is transmitted to Congress pursuant
to paragraph (2), copies of such document shall be delivered
to both Houses of Congress on the same day and shall be
delivered to the Clerk of the House of Representatives if the
House is not in session and to the Secretary of the Senate if
the Senate is not in session.
``(5) On the day on which a document setting forth the
agreement is transmitted to the House of Representatives and
the Senate pursuant to paragraph (1), an approval resolution
with respect to such agreement shall be introduced (by
request) in the House by the majority leader of the House,
for himself or herself and the minority leader of the House,
or by Members of the House designated by the majority leader
and minority leader of the House; and shall be introduced (by
request) in the Senate by the majority leader of the Senate,
for himself or herself and the minority leader of the Senate,
or by Members of the Senate designated by the majority leader
and minority leader of the Senate. If either House is not in
session on the day on which such an agreement is transmitted,
the approval resolution with respect to such agreement shall
be introduced in that House, as provided in the preceding
sentence, on the first day thereafter on which that House is
in session. The resolution introduced in the House of
Representatives shall be referred to the Committee on Ways
and Means and the resolution introduced in the Senate shall
be referred to the Committee on Finance.''.
(b) Additional Reports and Evaluations.--Section 233 of the
Social Security Act (42 U.S.C. 433) is amended by adding at
the end the following new subsections:
``(f) Biennial SSA Report on Impact of Totalization
Agreements.--
``(1) Report.--For any totalization agreement transmitted
to Congress on or after January 1, 2007, the Commissioner of
Social Security shall submit a report to Congress and the
Comptroller General that--
``(A) compares the estimates contained in the report
submitted to Congress under clauses (i) and (v) of subsection
(e)(2)(A) with respect to that agreement with the actual
number of individuals affected by the agreement and the
actual effect of the agreement on social security system
receipts and disbursements; and
``(B) contains recommendations for adjusting the methods
used to make the estimates.
``(2) Dates for submission.--The report required under this
subsection shall be provided not later than 2 years after the
effective date of the totalization agreement that is the
subject of the report and biennially thereafter.
``(g) GAO Evaluation and Report.--
``(1) Evaluation of initial report on impact of
totalization agreements.--With respect to each initial report
regarding a totalization agreement submitted under subsection
(f), the Comptroller General of the United States shall
conduct an evaluation of the report that includes--
``(A) an evaluation of the procedures used for making the
estimates required by subsection (e)(2)(A);
``(B) an evaluation of the procedures used for determining
the actual number of individuals affected by the agreement
and the effects of the totalization agreement on receipts and
disbursements under the social security system; and
``(C) such recommendations as the Comptroller General
determines appropriate.
``(2) Report.--Not later than 1 year after the date of
submission of an initial report regarding a totalization
agreement under subsection (f), the Comptroller General shall

[[Page S959]]

submit to Congress a report setting forth the results of the
evaluation conducted under paragraph (1).
``(3) Data collection.--The Commissioner of Social Security
shall collect and maintain the data necessary for the
Comptroller General of the United States to conduct the
evaluation required by paragraph (1).''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to agreements establishing
totalization arrangements entered into under section 233 of
the Social Security Act which are transmitted to Congress on
or after January 1, 2007.
______

SA 151. Mr. ENSIGN (for himself, Mr. DeMint, Mr. Graham, Mr. Coburn)
submitted an amendment intended to be proposed by him to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. NON-GROUP HIGH DEDUCTIBLE HEALTH PLAN PREMIUMS
OPTIONS.

(a) In General.--Section 223(d)(2)(C) of the Internal
Revenue Code of 1986 (relating to exceptions) is amended by
striking ``or'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, or'', and
by adding at the end the following new clause:
``(v) a high deductible health plan, other than a group
health plan (as defined in section 5000(b)(1)).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.
______

SA 152. Mr. ENSIGN (for himself and Mr. Inhofe submitted an amendment
intended to be proposed to amendment SA 100 proposed by Mr. Reid (for
Mr. Baucus) to the bill H.R. 2, to amend the Fair Labor Standards Act
of 1938 to provide for an increase in the Federal minimum wage; as
follows:
At the appropriate place, insert the following:

SEC. __. PRECLUSION OF SOCIAL SECURITY CREDITS PRIOR TO
ENUMERATION.

(a) Insured Status.--Section 214 of the Social Security Act
(42 U.S.C. 414) is amended by adding at the end, the
following new subsection:
``(d)(1) Except as provided in paragraph (2), no quarter of
coverage shall be credited for purposes of this section if,
with respect to any individual who is assigned a social
security account number on or after the date of enactment of
the Fair Minimum Wage Act of 2007, such quarter of coverage
is earned prior to the year in which such social security
account number is assigned.
``(2) Paragraph (1) shall not apply with respect to any
quarter of coverage earned by an individual who, at such time
such quarter of coverage is earned, satisfies the criterion
specified in subsection (c)(2).''.
(b) Benefit Computation.--Section 215(e) of such Act (42
U.S.C. 415(e)) is amended--
(1) by striking ``and'' at the end of paragraph (1);
(2) by striking the period at the end of paragraph (2) and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(3) in computing the average indexed monthly earnings of
an individual who is assigned a social security account
number on or after the date of enactment of the Fair Minimum
Wage Act of 2007, there shall not be counted any wages or
self-employment income for which no quarter of coverage may
be credited to such individual as a result of the application
of section 214(d).''.
______

SA 153. Mr. ENSIGN (for himself, Mr. Sessions, Mr. Craig, Mrs. Dole,
Mr. Thomas, Mr. Cornyn, Mr. Inhofe, Mr. Isakson, and Mr. Coleman)
submitted an amendment intended to be proposed to amendment SA 100
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the
Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; as follows:

At the appropriate place, insert the following:

SEC. __. TRANSMITTAL AND APPROVAL OF TOTALIZATION AGREEMENTS.

(a) In General.--Section 233(e) of the Social Security Act
(42 U.S.C. 433(e)) is amended to read as follows:
``(e)(1) Any agreement to establish a totalization
arrangement which is entered into with another country under
this section shall enter into force with respect to the
United States if (and only if)--
``(A) the President, at least 90 calendar days before the
date on which the President enters into the agreement,
notifies each House of Congress of the President's intention
to enter into the agreement, and promptly thereafter
publishes notice of such intention in the Federal Register,
``(B) the President transmits the text of such agreement to
each House of Congress as provided in paragraph (2), and
``(C) an approval resolution regarding such agreement has
passed both Houses of Congress and has been enacted into law.
``(2)(A) Whenever an agreement referred to in paragraph (1)
is entered into, the President shall transmit to each House
of Congress a document setting forth the final legal text of
such agreement and including a report by the President in
support of such agreement. The President's report shall
include the following:
``(i) An estimate by the Chief Actuary of the Social
Security Administration of the effect of the agreement, in
the short term and in the long term, on the receipts and
disbursements under the social security system established by
this title.
``(ii) A statement of any administrative action proposed to
implement the agreement and how such action will change or
affect existing law.
``(iii) A statement describing whether and how the
agreement changes provisions of an agreement previously
negotiated.
``(iv) A statement describing how and to what extent the
agreement makes progress in achieving the purposes, policies,
and objectives of this title.
``(v) An estimate by the Chief Actuary of the Social
Security Administration, working in consultation with the
Comptroller General of the United States, of the number of
individuals who may become eligible for any benefits under
this title or who may otherwise be affected by the agreement.
``(vi) An assessment of the integrity of the retirement
data and records (including birth, death, and marriage
records) of the other country that is the subject of the
agreement.
``(vii) An assessment of the ability of such country to
track and monitor recipients of benefits under such
agreement.
``(B) If any separate agreement or other understanding with
another country (whether oral or in writing) relating to an
agreement to establish a totalization arrangement under this
section is not disclosed to Congress in the transmittal to
Congress under this paragraph of the agreement to establish a
totalization arrangement, then such separate agreement or
understanding shall not be considered to be part of the
agreement approved by Congress under this section and shall
have no force and effect under United States law.
``(3) For purposes of this subsection, the term `approval
resolution' means a joint resolution, the matter after the
resolving clause of which is as follows: `That the proposed
agreement entered into pursuant to section 233 of the Social
Security Act between the United States and _______
establishing totalization arrangements between the social
security system established by title II of such Act and the
social security system of _______, transmitted to Congress by
the President on ______, is hereby approved.', the first two
blanks therein being filled with the name of the country with
which the United States entered into the agreement, and the
third blank therein being filled with the date of the
transmittal of the agreement to Congress.
``(4) Whenever a document setting forth an agreement
entered into under this section and the President's report in
support of the agreement is transmitted to Congress pursuant
to paragraph (2), copies of such document shall be delivered
to both Houses of Congress on the same day and shall be
delivered to the Clerk of the House of Representatives if the
House is not in session and to the Secretary of the Senate if
the Senate is not in session.
``(5) On the day on which a document setting forth the
agreement is transmitted to the House of Representatives and
the Senate pursuant to paragraph (1), an approval resolution
with respect to such agreement shall be introduced (by
request) in the House by the majority leader of the House,
for himself or herself and the minority leader of the House,
or by Members of the House designated by the majority leader
and minority leader of the House; and shall be introduced (by
request) in the Senate by the majority leader of the Senate,
for himself or herself and the minority leader of the Senate,
or by Members of the Senate designated by the majority leader
and minority leader of the Senate. If either House is not in
session on the day on which such an agreement is transmitted,
the approval resolution with respect to such agreement shall
be introduced in that House, as provided in the preceding
sentence, on the first day thereafter on which that House is
in session. The resolution introduced in the House of
Representatives shall be referred to the Committee on Ways
and Means and the resolution introduced in the Senate shall
be referred to the Committee on Finance.''.
(b) Additional Reports and Evaluations.--Section 233 of the
Social Security Act (42 U.S.C. 433) is amended by adding at
the end the following new subsections:
``(f) Biennial SSA Report on Impact of Totalization
Agreements.--
``(1) Report.--For any totalization agreement transmitted
to Congress on or after January 1, 2007, the Commissioner of
Social Security shall submit a report to Congress and the
Comptroller General that--
``(A) compares the estimates contained in the report
submitted to Congress under clauses (i) and (v) of subsection
(e)(2)(A) with respect to that agreement with the actual
number of individuals affected by the agreement and the
actual effect of the agreement on social security system
receipts and disbursements; and
``(B) contains recommendations for adjusting the methods
used to make the estimates.
``(2) Dates for submission.--The report required under this
subsection shall be provided not later than 2 years after the
effective date of the totalization agreement that

[[Page S960]]

is the subject of the report and biennially thereafter.
``(g) GAO Evaluation and Report.--
``(1) Evaluation of initial report on impact of
totalization agreements.--With respect to each initial report
regarding a totalization agreement submitted under subsection
(f), the Comptroller General of the United States shall
conduct an evaluation of the report that includes--
``(A) an evaluation of the procedures used for making the
estimates required by subsection (e)(2)(A);
``(B) an evaluation of the procedures used for determining
the actual number of individuals affected by the agreement
and the effects of the totalization agreement on receipts and
disbursements under the social security system; and
``(C) such recommendations as the Comptroller General
determines appropriate.
``(2) Report.--Not later than 1 year after the date of
submission of an initial report regarding a totalization
agreement under subsection (f), the Comptroller General shall
submit to Congress a report setting forth the results of the
evaluation conducted under paragraph (1).
``(3) Data collection.--The Commissioner of Social Security
shall collect and maintain the data necessary for the
Comptroller General of the United States to conduct the
evaluation required by paragraph (1).''.
(c) Effective Date.--The amendments made by this section
shall apply with respect to agreements establishing
totalization arrangements entered into under section 233 of
the Social Security Act which are transmitted to Congress on
or after January 1, 2007.
______

SA 154. Mr. ENSIGN (for himself, Mr. DeMint, Mr. Graham, and Mr.
Coburn) submitted an amendment intended to be proposed to amendment SA
100 proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; as follows:

At the appropriate place, insert the following:

SEC. __. NON-GROUP HIGH DEDUCTIBLE HEALTH PLAN PREMIUMS
OPTIONS.

(a) In General.--Section 223(d)(2)(C) of the Internal
Revenue Code of 1986 (relating to exceptions) is amended by
striking ``or'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, or'', and
by adding at the end the following new clause:
``(v) a high deductible health plan, other than a group
health plan (as defined in section 5000(b)(1)).''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2007.
______

SA 155. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE
COVERAGE.

(a) Specification of Constitutional Authority for Enactment
of Law.--This section is enacted pursuant to the power
granted Congress under article I, section 8, clause 3, of the
United States Constitution.
(b) Cooperative Governing of Individual Health Insurance
Coverage.--
(1) In general.--Title XXVII of the Public Health Service
Act (42 U.S.C. 300gg et seq.) is amended by adding at the end
the following new part:

``PART D--COOPERATIVE GOVERNING OF INDIVIDUAL HEALTH INSURANCE COVERAGE

``SEC. 2795. DEFINITIONS.

``In this part:
``(1) Primary state.--The term `primary State' means, with
respect to individual health insurance coverage offered by a
health insurance issuer, the State designated by the issuer
as the State whose covered laws shall govern the health
insurance issuer in the sale of such coverage under this
part. An issuer, with respect to a particular policy, may
only designate one such State as its primary State with
respect to all such coverage it offers. Such an issuer may
not change the designated primary State with respect to
individual health insurance coverage once the policy is
issued, except that such a change may be made upon renewal of
the policy. With respect to such designated State, the issuer
is deemed to be doing business in that State.
``(2) Secondary state.--The term `secondary State' means,
with respect to individual health insurance coverage offered
by a health insurance issuer, any State that is not the
primary State. In the case of a health insurance issuer that
is selling a policy in, or to a resident of, a secondary
State, the issuer is deemed to be doing business in that
secondary State.
``(3) Health insurance issuer.--The term `health insurance
issuer' has the meaning given such term in section
2791(b)(2), except that such an issuer must be licensed in
the primary State and be qualified to sell individual health
insurance coverage in that State.
``(4) Individual health insurance coverage.--The term
`individual health insurance coverage' means health insurance
coverage offered in the individual market, as defined in
section 2791(e)(1).
``(5) Applicable state authority.--The term `applicable
State authority' means, with respect to a health insurance
issuer in a State, the State insurance commissioner or
official or officials designated by the State to enforce the
requirements of this title for the State with respect to the
issuer.
``(6) Hazardous financial condition.--The term `hazardous
financial condition' means that, based on its present or
reasonably anticipated financial condition, a health
insurance issuer is unlikely to be able--
``(A) to meet obligations to policyholders with respect to
known claims and reasonably anticipated claims; or
``(B) to pay other obligations in the normal course of
business.
``(7) Covered laws.--The term `covered laws' means the
laws, rules, regulations, agreements, and orders governing
the insurance business pertaining to--
``(A) individual health insurance coverage issued by a
health insurance issuer;
``(B) the offer, sale, and issuance of individual health
insurance coverage to an individual; and
``(C) the provision to an individual in relation to
individual health insurance coverage of--
``(i) health care and insurance related services;
``(ii) management, operations, and investment activities of
a health insurance issuer; and
``(iii) loss control and claims administration for a health
insurance issuer with respect to liability for which the
issuer provides insurance.
``(8) State.--The term `State' means only the 50 States and
the District of Columbia.
``(9) Unfair claims settlement practices.--The term `unfair
claims settlement practices' means only the following
practices:
``(A) Knowingly misrepresenting to claimants and insured
individuals relevant facts or policy provisions relating to
coverage at issue.
``(B) Failing to acknowledge with reasonable promptness
pertinent communications with respect to claims arising under
policies.
``(C) Failing to adopt and implement reasonable standards
for the prompt investigation and settlement of claims arising
under policies.
``(D) Failing to effectuate prompt, fair, and equitable
settlement of claims submitted in which liability has become
reasonably clear.
``(E) Refusing to pay claims without conducting a
reasonable investigation.
``(F) Failing to affirm or deny coverage of claims within a
reasonable period of time after having completed an
investigation related to those claims.
``(10) Fraud and abuse.--The term `fraud and abuse' means
an act or omission committed by a person who, knowingly and
with intent to defraud, commits, or conceals any material
information concerning, one or more of the following:
``(A) Presenting, causing to be presented or preparing with
knowledge or belief that it will be presented to or by an
insurer, a reinsurer, broker or its agent, false information
as part of, in support of or concerning a fact material to
one or more of the following:
``(i) An application for the issuance or renewal of an
insurance policy or reinsurance contract.
``(ii) The rating of an insurance policy or reinsurance
contract.
``(iii) A claim for payment or benefit pursuant to an
insurance policy or reinsurance contract.
``(iv) Premiums paid on an insurance policy or reinsurance
contract.
``(v) Payments made in accordance with the terms of an
insurance policy or reinsurance contract.
``(vi) A document filed with the commissioner or the chief
insurance regulatory official of another jurisdiction.
``(vii) The financial condition of an insurer or reinsurer.
``(viii) The formation, acquisition, merger,
reconsolidation, dissolution or withdrawal from one or more
lines of insurance or reinsurance in all or part of a State
by an insurer or reinsurer.
``(ix) The issuance of written evidence of insurance.
``(x) The reinstatement of an insurance policy.
``(B) Solicitation or acceptance of new or renewal
insurance risks on behalf of an insurer, reinsurer, or other
person engaged in the business of insurance by a person who
knows or should know that the insurer or other person
responsible for the risk is insolvent at the time of the
transaction.
``(C) Transaction of the business of insurance in violation
of laws requiring a license, certificate of authority, or
other legal authority for the transaction of the business of
insurance.
``(D) Attempt to commit, aiding or abetting in the
commission of, or conspiracy to commit the acts or omissions
specified in this paragraph.

``SEC. 2796. APPLICATION OF LAW.

``(a) In General.--The covered laws of the primary State
shall apply to individual health insurance coverage offered
by a

[[Page S961]]

health insurance issuer in the primary State and in any
secondary State, but only if the coverage and issuer comply
with the conditions of this section with respect to the
offering of coverage in any secondary State.
``(b) Exemptions From Covered Laws in a Secondary State.--
Except as provided in this section, a health insurance issuer
with respect to its offer, sale, renewal, and issuance of
individual health insurance coverage in any secondary State
is exempt from any covered laws of the secondary State (and
any rules, regulations, agreements, or orders sought or
issued by such State under or related to such covered laws)
to the extent that such laws would--
``(1) make unlawful, or regulate, directly or indirectly,
the operation of the health insurance issuer operating in the
secondary State, except that any secondary State may require
such an issuer--
``(A) to pay, on a nondiscriminatory basis, applicable
premium and other taxes (including high risk pool
assessments) which are levied on insurers and surplus lines
insurers, brokers, or policyholders under the laws of the
State;
``(B) to register with and designate the State insurance
commissioner as its agent solely for the purpose of receiving
service of legal documents or process;
``(C) to submit to an examination of its financial
condition by the State insurance commissioner in any State in
which the issuer is doing business to determine the issuer's
financial condition, if--
``(i) the State insurance commissioner of the primary State
has not done an examination within the period recommended by
the National Association of Insurance Commissioners; and
``(ii) any such examination is conducted in accordance with
the examiners' handbook of the National Association of
Insurance Commissioners and is coordinated to avoid
unjustified duplication and unjustified repetition;
``(D) to comply with a lawful order issued--
``(i) in a delinquency proceeding commenced by the State
insurance commissioner if there has been a finding of
financial impairment under subparagraph (C); or
``(ii) in a voluntary dissolution proceeding;
``(E) to comply with an injunction issued by a court of
competent jurisdiction, upon a petition by the State
insurance commissioner alleging that the issuer is in
hazardous financial condition;
``(F) to participate, on a nondiscriminatory basis, in any
insurance insolvency guaranty association or similar
association to which a health insurance issuer in the State
is required to belong;
``(G) to comply with any State law regarding fraud and
abuse (as defined in section 2795(10)), except that if the
State seeks an injunction regarding the conduct described in
this subparagraph, such injunction must be obtained from a
court of competent jurisdiction; or
``(H) to comply with any State law regarding unfair claims
settlement practices (as defined in section 2795(9));
``(2) require any individual health insurance coverage
issued by the issuer to be countersigned by an insurance
agent or broker residing in that Secondary State; or
``(3) otherwise discriminate against the issuer issuing
insurance in both the primary State and in any secondary
State.
``(c) Clear and Conspicuous Disclosure.--A health insurance
issuer shall provide the following notice, in 12-point bold
type, in any insurance coverage offered in a secondary State
under this part by such a health insurance issuer and at
renewal of the policy, with the 5 blank spaces therein being
appropriately filled with the name of the health insurance
issuer, the name of primary State, the name of the secondary
State, the name of the secondary State, and the name of the
secondary State, respectively, for the coverage concerned:

`This policy is issued by _____ and is governed by the laws
and regulations of the State of _____, and it has met all the
laws of that State as determined by that State's Department
of Insurance. This policy may be less expensive than others
because it is not subject to all of the insurance laws and
regulations of the State of _____, including coverage of some
services or benefits mandated by the law of the State of
_____. Additionally, this policy is not subject to all of the
consumer protection laws or restrictions on rate changes of
the State of _____. As with all insurance products, before
purchasing this policy, you should carefully review the
policy and determine what health care services the policy
covers and what benefits it provides, including any
exclusions, limitations, or conditions for such services or
benefits.'.
``(d) Prohibition on Certain Reclassifications and Premium
Increases.--
``(1) In general.--For purposes of this section, a health
insurance issuer that provides individual health insurance
coverage to an individual under this part in a primary or
secondary State may not upon renewal--
``(A) move or reclassify the individual insured under the
health insurance coverage from the class such individual is
in at the time of issue of the contract based on the health-
status related factors of the individual; or
``(B) increase the premiums assessed the individual for
such coverage based on a health status-related factor or
change of a health status-related factor or the past or
prospective claim experience of the insured individual.
``(2) Construction.--Nothing in paragraph (1) shall be
construed to prohibit a health insurance issuer--
``(A) from terminating or discontinuing coverage or a class
of coverage in accordance with subsections (b) and (c) of
section 2742;
``(B) from raising premium rates for all policy holders
within a class based on claims experience;
``(C) from changing premiums or offering discounted
premiums to individuals who engage in wellness activities at
intervals prescribed by the issuer, if such premium changes
or incentives--
``(i) are disclosed to the consumer in the insurance
contract;
``(ii) are based on specific wellness activities that are
not applicable to all individuals; and
``(iii) are not obtainable by all individuals to whom
coverage is offered;
``(D) from reinstating lapsed coverage; or
``(E) from retroactively adjusting the rates charged an
individual insured individual if the initial rates were set
based on material misrepresentation by the individual at the
time of issue.
``(e) Prior Offering of Policy in Primary State.--A health
insurance issuer may not offer for sale individual health
insurance coverage in a secondary State unless that coverage
is currently offered for sale in the primary State.
``(f) Licensing of Agents or Brokers for Health Insurance
Issuers.--Any State may require that a person acting, or
offering to act, as an agent or broker for a health insurance
issuer with respect to the offering of individual health
insurance coverage obtain a license from that State, except
that a State many not impose any qualification or requirement
which discriminates against a nonresident agent or broker.
``(g) Documents for Submission to State Insurance
Commissioner.--Each health insurance issuer issuing
individual health insurance coverage in both primary and
secondary States shall submit--
``(1) to the insurance commissioner of each State in which
it intends to offer such coverage, before it may offer
individual health insurance coverage in such State--
``(A) a copy of the plan of operation or feasibility study
or any similar statement of the policy being offered and its
coverage (which shall include the name of its primary State
and its principal place of business);
``(B) written notice of any change in its designation of
its primary State; and
``(C) written notice from the issuer of the issuer's
compliance with all the laws of the primary State; and
``(2) to the insurance commissioner of each secondary State
in which it offers individual health insurance coverage, a
copy of the issuer's quarterly financial statement submitted
to the primary State, which statement shall be certified by
an independent public accountant and contain a statement of
opinion on loss and loss adjustment expense reserves made
by--
``(A) a member of the American Academy of Actuaries; or
``(B) a qualified loss reserve specialist.
``(h) Power of Courts To Enjoin Conduct.--Nothing in this
section shall be construed to affect the authority of any
Federal or State court to enjoin--
``(1) the solicitation or sale of individual health
insurance coverage by a health insurance issuer to any person
or group who is not eligible for such insurance; or
``(2) the solicitation or sale of individual health
insurance coverage by, or operation of, a health insurance
issuer that is in hazardous financial condition.
``(i) State Powers To Enforce State Laws.--
``(1) In general.--Subject to the provisions of subsection
(b)(1)(G) (relating to injunctions) and paragraph (2),
nothing in this section shall be construed to affect the
authority of any State to make use of any of its powers to
enforce the laws of such State with respect to which a health
insurance issuer is not exempt under subsection (b).
``(2) Courts of competent jurisdiction.--If a State seeks
an injunction regarding the conduct described in paragraphs
(1) and (2) of subsection (h), such injunction must be
obtained from a Federal or State court of competent
jurisdiction.
``(j) States' Authority To Sue.--Nothing in this section
shall affect the authority of any State to bring action in
any Federal or State court.
``(k) Generally Applicable Laws.--Nothing in this section
shall be construed to affect the applicability of State laws
generally applicable to persons or corporations.

``SEC. 2797. PRIMARY STATE MUST MEET FEDERAL FLOOR BEFORE
ISSUER MAY SELL INTO SECONDARY STATES.

``A health insurance issuer may not offer, sell, or issue
individual health insurance coverage in a secondary State if
the primary State does not meet the following requirements:
``(1) The State insurance commissioner must use a risk-
based capital formula for the determination of capital and
surplus requirements for all health insurance issuers.
``(2) The State must have legislation or regulations in
place establishing an independent review process for
individuals who are covered by individual health insurance
coverage unless the issuer provides an independent review
mechanism functionally equivalent (as determined by the
primary State insurance commissioner or official) to

[[Page S962]]

that prescribed in the `Health Carrier External Review Model
Act' of the National Association of Insurance Commissioners
for all individuals who purchase insurance coverage under the
terms of this part.

``SEC. 2798. ENFORCEMENT.

``(a) In General.--Subject to subsection (b), with respect
to specific individual health insurance coverage the primary
State for such coverage has sole jurisdiction to enforce the
primary State's covered laws in the primary State and any
secondary State.
``(b) Secondary State's Authority.--Nothing in subsection
(a) shall be construed to affect the authority of a secondary
State to enforce its laws as set forth in the exception
specified in section 2796(b)(1).
``(c) Court Interpretation.--In reviewing action initiated
by the applicable secondary State authority, the court of
competent jurisdiction shall apply the covered laws of the
primary State.
``(d) Notice of Compliance Failure.--In the case of
individual health insurance coverage offered in a secondary
State that fails to comply with the covered laws of the
primary State, the applicable State authority of the
secondary State may notify the applicable State authority of
the primary State.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to individual health insurance coverage offered,
issued, or sold after the date of the enactment of this Act.
(c) Severability.--If any provision of this section or the
application of such provision to any person or circumstance
is held to be unconstitutional, the remainder of this section
and the application of the provisions of such to any other
person or circumstance shall not be affected.

SEC. __. DISPOSITION OF UNUSED HEALTH BENEFITS IN CAFETERIA
PLANS AND FLEXIBLE SPENDING ARRANGEMENTS.

(a) In General.--Section 125 of the Internal Revenue Code
of 1986 (relating to cafeteria plans) is amended by
redesignating subsections (h) and (i) as subsections (i) and
(j), respectively, and by inserting after subsection (g) the
following:
``(h) Contributions of Certain Unused Health Benefits.--
``(1) In general.--For purposes of this title, a plan or
other arrangement shall not fail to be treated as a cafeteria
plan solely because qualified benefits under such plan
include a health flexible spending arrangement under which
not more than $500 of unused health benefits may be--
``(A) carried forward to the succeeding plan year of such
health flexible spending arrangement, or
``(B) to the extent permitted by section 106(d),
contributed by the employer to a health savings account (as
defined in section 223(d)) maintained for the benefit of the
employee.
``(2) Health flexible spending arrangement.--For purposes
of this subsection, the term `health flexible spending
arrangement' means a flexible spending arrangement (as
defined in section 106(c)) that is a qualified benefit and
only permits reimbursement for expenses for medical care (as
defined in section 213(d)(1), without regard to subparagraphs
(C) and (D) thereof).
``(3) Unused health benefits.--For purposes of this
subsection, with respect to an employee, the term `unused
health benefits' means the excess of--
``(A) the maximum amount of reimbursement allowable to the
employee for a plan year under a health flexible spending
arrangement, over
``(B) the actual amount of reimbursement for such year
under such arrangement.''.
(b) Repeal of FSA Termination Provision.--
(1) In general.--Subsection (e) of section 106 of the
Internal Revenue Code of 1986, as added by the Tax Relief and
Health Care Act of 2006, is amended by striking ``health
flexible spending arrangement or'' each place it appears.
(2) Conforming amendments.--
(A) The heading of section 106(e) of such Code is amended
by striking ``FSA or''.
(B) Section 223(c)(1)(B)(iii)(II) of such Code, as added by
the Tax Relief and Health Care Act of 2006, is amended to
read as follows:

``(II) the balance of such arrangement is contributed by
the employer to a health savings account of the individual
under section 125(h)(1)(B), in accordance with rules
prescribed by the Secretary.''.

(c) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2010.

SEC. __. EXPANSION OF USE OF HEALTH SAVINGS ACCOUNTS FOR
HEALTH INSURANCE PREMIUM PAYMENTS FOR CERTAIN
HIGH DEDUCTIBLE HEALTH PLANS.

(a) In General.--Subparagraph (C) of section 223(d)(2) of
the Internal Revenue Code of 1986 (relating to qualified
medical expenses) is amended by striking ``or'' at the end of
clause (iii), by striking the period at the end of clause
(iv), and by adding at the end the following new clause:
``(v) any high deductible health plan other than a group
health plan (as defined in section 5000(b)(1)).''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2006.
______

SA 156. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. DISPOSITION OF UNUSED HEALTH BENEFITS IN CAFETERIA
PLANS AND FLEXIBLE SPENDING ARRANGEMENTS.

(a) In General.--Section 125 of the Internal Revenue Code
of 1986 (relating to cafeteria plans) is amended by
redesignating subsections (h) and (i) as subsections (i) and
(j), respectively, and by inserting after subsection (g) the
following:
``(h) Contributions of Certain Unused Health Benefits.--
``(1) In general.--For purposes of this title, a plan or
other arrangement shall not fail to be treated as a cafeteria
plan solely because qualified benefits under such plan
include a health flexible spending arrangement under which
not more than $500 of unused health benefits may be--
``(A) carried forward to the succeeding plan year of such
health flexible spending arrangement, or
``(B) to the extent permitted by section 106(d),
contributed by the employer to a health savings account (as
defined in section 223(d)) maintained for the benefit of the
employee.
``(2) Health flexible spending arrangement.--For purposes
of this subsection, the term `health flexible spending
arrangement' means a flexible spending arrangement (as
defined in section 106(c)) that is a qualified benefit and
only permits reimbursement for expenses for medical care (as
defined in section 213(d)(1), without regard to subparagraphs
(C) and (D) thereof).
``(3) Unused health benefits.--For purposes of this
subsection, with respect to an employee, the term `unused
health benefits' means the excess of--
``(A) the maximum amount of reimbursement allowable to the
employee for a plan year under a health flexible spending
arrangement, over
``(B) the actual amount of reimbursement for such year
under such arrangement.''.
(b) Repeal of FSA Termination Provision.--
(1) In general.--Subsection (e) of section 106 of the
Internal Revenue Code of 1986, as added by the Tax Relief and
Health Care Act of 2006, is amended by striking ``health
flexible spending arrangement or'' each place it appears.
(2) Conforming amendments.--
(A) The heading of section 106(e) of such Code is amended
by striking ``FSA or''.
(B) Section 223(c)(1)(B)(iii)(II) of such Code, as added by
the Tax Relief and Health Care Act of 2006, is amended to
read as follows:

``(II) the balance of such arrangement is contributed by
the employer to a health savings account of the individual
under section 125(h)(1)(B), in accordance with rules
prescribed by the Secretary.''.

(c) Effective Date.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2010.
______

SA 157. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

In section 2 of the bill, strike subsection (a) and insert
the following:
(a) In General.--Section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to
read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) beginning on the 60th day after the date of enactment
of the Fair Minimum Wage Act of 2007, an amount equal to the
minimum wage in effect on such date in the State in which
such employee is employed (whether as a result of the
application of Federal or State law) increased by $0.70;
``(B) beginning 12 months after that 60th day, the amount
that would be determined under subparagraph (A) by
substituting `$1.40' for `$0.70'; and
``(C) beginning 24 months after that 60th day, the amount
that would be determined under subparagraph (A) by
substituting `$2.10' for `$0.70';''.
______

SA 158. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

In section 101 of the amendment, strike subsection (a) and
insert the following:
(a) In General.--Section 6(a)(1) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 206(a)(1)) is amended to
read as follows:
``(1) except as otherwise provided in this section, not
less than--
``(A) beginning on the 60th day after the date of enactment
of the Fair Minimum Wage Act of 2007, an amount equal to the
minimum wage in effect on such date in the State in which
such employee is employed (whether as a result of the
application of Federal or State law) increased by $0.70;
``(B) beginning 12 months after that 60th day, the amount
that would be determined under subparagraph (A) by
substituting `$1.40' for `$0.70'; and

[[Page S963]]

``(C) beginning 24 months after that 60th day, the amount
that would be determined under subparagraph (A) by
substituting `$2.10' for `$0.70';''.
______

SA 159. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PROTECTION OF WORKERS' POLITICAL RIGHTS.

Title III of the Labor Management Relations Act, 1947 (29
U.S.C. 185 et seq.) is amended by adding at the end the
following:

``SEC. 304. PROTECTION OF WORKER'S POLITICAL RIGHTS.

``(a) Prohibition.--Except with the separate, prior,
written, voluntary authorization of an individual, it shall
be unlawful for any labor organization to collect from or
assess its members or nonmembers any dues, initiation fee, or
other payment if any part of such dues, fee, or payment will
be used to lobby members of Congress or Congressional staff
for the purpose of influencing legislation.
``(b) Authorization.--An authorization described in
subsection (a) shall remain in effect until revoked and may
be revoked at any time.''.
______

SA 160. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. DEFERRED PAYMENT OF TAX BY CERTAIN SMALL BUSINESSES.

(a) In General.--Subchapter B of chapter 62 (relating to
extensions of time for payment of tax) is amended by adding
at the end the following new section:

``SEC. 6168. EXTENSION OF TIME FOR PAYMENT OF TAX FOR CERTAIN
SMALL BUSINESSES.

``(a) In General.--An eligible small business may elect to
pay the tax imposed by chapter 1 in 4 equal installments.
``(b) Limitation.--The maximum amount of tax which may be
paid in installments under this section for any taxable year
shall not exceed whichever of the following is the least:
``(1) The tax imposed by chapter 1 for the taxable year.
``(2) The amount contributed by the taxpayer into a BRIDGE
Account during such year.
``(3) The excess of $250,000 over the aggregate amount of
tax for which an election under this section was made by the
taxpayer (or any predecessor) for all prior taxable years.
``(c) Eligible Small Business.--For purposes of this
section--
``(1) In general.--The term `eligible small business'
means, with respect to any taxable year, any person if--
``(A) such person meets the active business requirements of
section 1202(e) throughout such taxable year,
``(B) the taxpayer has gross receipts of $10,000,000 or
less for the taxable year,
``(C) the gross receipts of the taxpayer for such taxable
year are at least 10 percent greater than the average annual
gross receipts of the taxpayer (or any predecessor) for the 2
prior taxable years, and
``(D) the taxpayer uses an accrual method of accounting.
``(2) Certain rules to apply.--Rules similar to the rules
of paragraphs (2) and (3) of section 448(c) shall apply for
purposes of this subsection.
``(d) Date for Payment of Installments; Time for Payment of
Interest.--
``(1) Date for payment of installments.--
``(A) In general.--If an election is made under this
section for any taxable year, the first installment shall be
paid on or before the due date for such installment and each
succeeding installment shall be paid on or before the date
which is 1 year after the date prescribed by this paragraph
for payment of the preceding installment.
``(B) Due date for first installment.--The due date for the
first installment for a taxable year shall be whichever of
the following is the earliest:
``(i) The date selected by the taxpayer.
``(ii) The date which is 2 years after the date prescribed
by section 6151(a) for payment of the tax for such taxable
year.
``(2) Time for payment of interest.--If the time for
payment of any amount of tax has been extended under this
section--
``(A) Interest for period before due date of first
installment.--Interest payable under section 6601 on any
unpaid portion of such amount attributable to the period
before the due date for the first installment shall be paid
annually.
``(B) Interest during installment period.--Interest payable
under section 6601 on any unpaid portion of such amount
attributable to any period after such period shall be paid at
the same time as, and as a part of, each installment payment
of the tax.
``(C) Interest in the case of certain deficiencies.--In the
case of a deficiency to which subsection (e)(3) applies for a
taxable year which is assessed after the due date for the
first installment for such year, interest attributable to the
period before such due date, and interest assigned under
subparagraph (B) to any installment the date for payment of
which has arrived on or before the date of the assessment of
the deficiency, shall be paid upon notice and demand from the
Secretary.
``(e) Special Rules.--
``(1) Application of limitation to partners and s
corporation shareholders.--
``(A) In general.--In applying this section to a
partnership which is an eligible small business--
``(i) the election under subsection (a) shall be made by
the partnership,
``(ii) the amount referred to in subsection (b)(1) shall be
the sum of each partner's tax which is attributable to items
of the partnership and assuming the highest marginal rate
under section 1, and
``(iii) the partnership shall be treated as the taxpayer
referred to in paragraphs (2) and (3) of subsection (b).
``(B) Overall limitation also applied at partner level.--In
the case of a partner in a partnership, the limitation under
subsection (b)(3) shall be applied at the partnership and
partner levels.
``(C) Similar rules for s corporations.--Rules similar to
the rules of subparagraphs (A) and (B) shall apply to
shareholders in an S corporation.
``(2) Acceleration of payment in certain cases.--
``(A) In general.--If--
``(i) the taxpayer ceases to meet the requirement of
subsection (c)(1)(A), or
``(ii) there is an ownership change with respect to the
taxpayer,
then the extension of time for payment of tax provided in
subsection (a) shall cease to apply, and the unpaid portion
of the tax payable in installments shall be paid on or before
the due date for filing the return of tax imposed by chapter
1 for the first taxable year following such cessation.
``(B) Ownership change.--For purposes of subparagraph, in
the case of a corporation, the term `ownership change' has
the meaning given to such term by section 382. Rules similar
to the rules applicable under the preceding sentence shall
apply to a partnership.
``(3) Proration of deficiency to installments.--Rules
similar to the rules of section 6166(e) shall apply for
purposes of this section.
``(f) BRIDGE Account.--For purposes of this section--
``(1) In general.--The term `BRIDGE Account' means a trust
created or organized in the United States for the exclusive
benefit of an eligible small business, but only if the
written governing instrument creating the trust meets the
following requirements:
``(A) No contribution will be accepted for any taxable year
in excess of the amount allowed as a deferral under
subsection (b) for such year.
``(B) The trustee is a bank (as defined in section 408(n))
or another person who demonstrates to the satisfaction of the
Secretary that the manner in which such person will
administer the trust will be consistent with the requirements
of this section.
``(C) The assets of the trust consist entirely of cash or
of obligations which have adequate stated interest (as
defined in section 1274(c)(2)) and which pay such interest
not less often than annually.
``(D) The assets of the trust will not be commingled with
other property except in a common trust fund or common
investment fund.
``(E) Amounts in the trust may be used only--
``(i) as security for a loan to the business or for
repayment of such loan, or
``(ii) to pay the installments under this section.
``(2) Account taxed as grantor trust.--The grantor of a
BRIDGE Account shall be treated for purposes of this title as
the owner of such Account and shall be subject to tax thereon
in accordance with subpart E of part I of subchapter J of
this chapter (relating to grantors and others treated as
substantial owners).
``(3) Time when payments deemed made.--For purposes of this
section, a taxpayer shall be deemed to have made a payment to
a BRIDGE Account on the last day of a taxable year if such
payment is made on account of such taxable year and is made
within 3\1/2\ months after the close of such taxable year.
``(g) Reports.--The Secretary may require such reporting as
the Secretary determines to be appropriate to carry out this
section.
``(h) Application of Section.--This section shall apply to
taxes imposed for taxable years beginning after December 31,
2010, and before January 1, 2015.''
(b) Priority of Lender.--Subsection (b) of section 6323 is
amended by adding at the end the following new paragraph:
``(11) Loans secured by bridge accounts.--With respect to a
BRIDGE account (as defined in section 6168(f)) with any bank
(as defined in section 408(n)), to the extent of any loan
made by such bank without actual notice or knowledge of the
existence of such lien, as against such bank, if such loan is
secured by such account.''
(c) Clerical Amendment.--The table of sections for
subchapter B of chapter 62 is amended by adding at the end
the following new item:

``Sec. 6168. Extension of time for payment of tax for certain small
businesses.''.

[[Page S964]]

(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2010.
(e) Study by General Accounting Office.--
(1) Study.--In consultation with the Secretary of the
Treasury, the Comptroller General of the United States shall
undertake a study to evaluate the applicability (including
administrative aspects) and impact of the BRIDGE Act of 2007
including how it affects the capital funding needs of
businesses under the Act and number of businesses
benefitting.
(2) Report.--Not later than March 31, 2014, the Comptroller
General shall transmit to the Committee on Ways and Means of
the House of Representatives and the Committee on Finance of
the Senate a written report presenting the results of the
study conducted pursuant to this subsection, together with
such recommendations for legislative or administrative
changes as the Comptroller General determines are
appropriate.
______

SA 161. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. FLEXIBLE SCHEDULE PROGRAMS.

(a) Prohibition of Use of Flexible Schedules for Federal
Employees Until Flexible Schedules Are Available to Private
Employees.--
(1) Prohibition of use of flexible schedules for federal
employees.--Notwithstanding any provision of subchapter II of
chapter 61 of title 5, United States Code, no agency may
establish, administer, or use any flexible schedule program
authorized under section 6122 of that title.
(2) Effective date.--Paragraph (1) shall take effect 1 year
after the date of enactment of this Act, unless during such 1
year period, the Secretary of Labor submits certification to
the Office of Personnel Management that a statute has been
enacted that allows employers covered by the Fair Labor
Standards Act of 1938 to provide for the use of a flexible
schedule similar to the flexible schedule program authorized
under section 6122 of title 5, United States Code, for
employees engaged in commerce or in the production of goods
for commerce.
(b) Termination of Prohibition.--If the prohibition under
subsection (a) takes effect, that subsection shall cease to
have any force or effect on the date that the Secretary of
Labor submits a certification described in subsection (a)(2)
to the Office of Personnel Management.
______

SA 162. Mr. DeMINT submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. ENTERPRISE ENGAGED IN COMMERCE.

(a) Annual Gross Volume of Sales.--Section 3(s)(1)(A)(ii)
of the Fair Labor Standards Act of 1938 (29 U.S.C.
203(s)(1)(A)(ii)) is amended by striking ``$500,000'' and
inserting ``$1,080,000''.
(b) Applicability of Minimum Wage.--Section 6 of the Fair
Labor Standards Act of 1938 (20 U.S.C. 206) is amended--
(1) in subsection (a), by striking ``is engaged in commerce
or in the production of goods for commerce, or''; and
(2) in subsection (b), by striking ``is engaged in commerce
or in the production of goods for commerce, or''.
______

SA 163. Ms. SNOWE (for herself and Mr. Feingold) submitted an
amendment intended to be proposed by her to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ___. EQUAL ACCESS FOR SMALL PARTIES IN CIVIL AND
ADMINISTRATIVE PROCEEDINGS.

(a) Eligibility of Small Businesses for Fee Award.--
(1) Administrative proceedings.--
(A) In general.--Section 504(b)(1)(B)(ii) of title 5,
United States Code, is amended by striking ``$7,000,000'' and
inserting ``$10,000,000''.
(B) Adjustment in net worth limitation.--Section 504(b) of
title 5, United States Code, is amended by adding at the end
the following:
``(3) Beginning on January 1 of the 5th year following the
date of enactment of this paragraph, and on January 1 every 5
years thereafter, the dollar amount under paragraph
(1)(B)(ii) shall be adjusted by the Producer Price Index as
determined by the Secretary of the Treasury, in collaboration
with the Bureau of Labor Statistics.''.
(2) Judicial proceedings.--
(A) In general.--Section 2412(d)(2)(B)(ii) of title 28,
United States Code, is amended by striking ``$7,000,000'' and
inserting ``$10,000,000''.
(B) Adjustment in net worth limitation.--Section 2412(d) of
title 28, United States Code, is amended by adding at the end
the following:
``(5) Beginning on January 1 of the 5th year following the
date of enactment of this paragraph, and on January 1 every 5
years thereafter, the dollar amount under paragraph
(2)(B)(ii) shall be adjusted by the Producer Price Index as
determined by the Secretary of the Treasury, in collaboration
with the Bureau of Labor Statistics.''.
(b) Elimination of Rate Cap.--
(1) Administrative proceedings.--Section 504(b)(1)(A) of
title 5, United States Code, is amended--
(A) by striking ``(i)''; and
(B) by striking ``by the agency involved'' and all that
follows through ``a higher fee'' and inserting ``by the
agency involved''.
(2) Judicial proceedings.--Section 2412(d)(2)(A) of title
28, United States Code, is amended--
(A) by striking ``(i)''; and
(B) by striking ``by the United States'' and all that
follows through ``a higher fee'' and inserting ``by the
United States''.
(c) Applicability.--The amendments made by this section
shall--
(1) take effect 30 days after the date of the enactment of
this Act; and
(2) apply to any proceeding pending on, or commenced on or
after, the effective date of this section.
______

SA 164. Ms. SNOWE submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. REGULATORY FLEXIBILITY REFORM FOR SMALL BUSINESSES.

(a) Requirements Providing for More Detailed Analyses.--
(1) Initial regulatory flexibility analysis.--Section 603
of title 5, United States Code, is amended by adding at the
end the following:
``(d) An agency shall notify the Chief Counsel for Advocacy
of the Small Business Administration of any draft rules that
may have a significant economic impact on a substantial
number of small entities either--
``(1) when the agency submits a draft rule to the Office of
Information and Regulatory Affairs at the Office of
Management and Budget under Executive Order 12866, if that
order requires such submission; or
``(2) if no submission to the Office of Information and
Regulatory Affairs is so required, at a reasonable time prior
to publication of the rule by the agency.''.
(2) Final regulatory flexibility analysis.--
(A) Inclusion of response to comments on certification of
proposed rule.--Section 604(a)(2) of title 5, United States
Code, is amended by inserting ``(or certification of the
proposed rule under section 605(b))'' after ``initial
regulatory flexibility analysis''.
(B) Inclusion of response to comments filed by chief
counsel for advocacy.--Section 604(a) of title 5, United
States Code, is amended by redesignating paragraphs (3), (4),
and (5) as paragraphs (4), (5), and (6), respectively, and
inserting after paragraph (2) the following:
``(3) the response of the agency to any comments filed by
the Chief Counsel for Advocacy of the Small Business
Administration in response to the proposed rule, and a
detailed statement of any changes made to the proposed rule
in the final rule as a result of such comments;''.
(C) Publication of analysis on web site, etc.--Section
604(b) of title 5, United States Code, is amended to read as
follows:
``(b) The agency shall make copies of the final regulatory
flexibility analysis available to the public, including
placement of the entire analysis on the agency's Web site,
and shall publish in the Federal Register the final
regulatory flexibility analysis, or a summary thereof that
includes the telephone number, mailing address, and link to
the Web site where the complete analysis may be obtained.''.
(3) Cross-references to other analyses.--Section 605(a) of
title 5, United States Code, is amended to read as follows:
``(a) A Federal agency shall be treated as satisfying any
requirement regarding the content of an agenda or regulatory
flexibility analysis under section 602, 603, or 604, if such
agency provides in such agenda or analysis a cross-reference
to the specific portion of another agenda or analysis that is
required by any other law and which satisfies such
requirement.''.
(4) Certifications.--The second sentence of section 605(b)
of title 5, United States Code, is amended--
(A) by inserting ``detailed'' before ``statement''; and
(B) by inserting ``and legal'' after ``factual''.
(5) Quantification requirements.--Section 607 of title 5,
United States Code, is amended to read as follows:

``Sec. 607. Quantification requirements

``In complying with sections 603 and 604, an agency shall
provide--
``(1) a quantifiable or numerical description of the
effects of the proposed or final rule and alternatives to the
proposed or final rule; or

[[Page S965]]

``(2) a more general descriptive statement and a detailed
statement explaining why quantification is not practicable or
reliable.''.
(b) Technical and Conforming Amendments.--
(1) Heading.--The heading of section 605 of title 5, United
States Code, is amended to read as follows:

``Sec. 605. Incorporations by reference and certifications''.

(2) Table of sections.--The table of sections for chapter 6
of title 5, United States Code, is amended--
(A) by striking the item relating to section 605 and
inserting the following:

``605. Incorporations by reference and certifications.''; and

(B) by striking the item relating to section 607 and
inserting the following:

``607. Quantification requirements.''.
______

SA 165. Mr. SMITH (for himself and Mr. Bingaman) submitted an
amendment intended to be proposed by him to the bill H.R. 2, to amend
the Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. ___. TREATMENT OF CERTAIN PENSION PLANS OF INDIAN TRIBAL
GOVERNMENTS.

(a) Amendment to Internal Revenue Code of 1986.--The last
sentence of section 414(d) of the Internal Revenue Code of
1986 (definition of governmental plan) is amended to read as
follows: ``The term `governmental plan' includes a plan
established or maintained for its employees by an Indian
tribal government (as defined in section 7701(a)(40)), a
subdivision of an Indian tribal government (determined in
accordance with section 7871(d)), an agency instrumentality
(or subdivision) of an Indian tribal government, or an entity
established under Federal, State, or tribal law which is
wholly owned or controlled by any of the foregoing.''.
(b) Amendments to Employee Retirement Income Security Act
of 1974.--
(1) In general.--The last sentence of section 3(32) of the
Employee Retirement Income Security Act of 1974 (29 U.S.C.
1002(32)) is amended to read as follows: ``The term
`governmental plan' includes a plan established or maintained
for its employees by an Indian tribal government (as defined
in section 7701(a)(40) of the Internal Revenue Code of 1986),
a subdivision of an Indian tribal government (determined in
accordance with section 7871(d) of such Code), an agency
instrumentality (or subdivision) of an Indian tribal
government, or an entity established under Federal, State, or
tribal law that is wholly owned or controlled by any of the
foregoing.''.
(2) Conforming amendments.--
(A) Paragraph (14) of section 4021(b) of such Act (29
U.S.C. 1321(b)(14)) is amended to read as follows:
``(14) established or maintained for its employees by an
Indian tribal government (as defined in section 7701(a)(40)
of the Internal Revenue Code of 1986), a subdivision of an
Indian tribal government (determined in accordance with
section 7871(d) of such Code), an agency instrumentality (or
subdivision) of an Indian tribal government, or an entity
established under Federal, State, or tribal law that is
wholly owned or controlled by any of the foregoing.''.
(B) Section 4021(b)(2) of such Act (29 U.S.C. 1321(b)(2) is
amended by striking ``or which is described in the last
sentence of section 3(32)''.
(c) Effective Date.--The amendments made by this section
shall take effect as if included in section 906 of the
Pension Protection Act of 2006.
______

SA 166. Mr. SMITH submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. EXPANSION OF DEDUCTION FOR HEALTH INSURANCE COSTS OF
SELF-EMPLOYED INDIVIDUALS.

(a) In General.--Paragraph (1) of section 162(l) of the
Internal Revenue Code of 1986 (relating to special rules for
health insurance costs of self-employed individuals) is
amended to read as follows:
``(1) Allowance of deduction.--In the case of a taxpayer
who is an employee within the meaning of section 401(c)(1),
there shall be allowed as a deduction under this section an
amount equal to the amount paid during the taxable year for
insurance which constitutes medical care for--
``(A) the taxpayer,
``(B) the taxpayer's spouse,
``(C) the taxpayer's dependents,
``(D) any individual--
``(i) who was not the spouse, determined without regard to
section 7703, of the taxpayer at any time during the taxable
year of the taxpayer,
``(ii) who--

``(I) has not attained the age of 19 as of the close of the
calendar year in which the taxable year of the taxpayer
begins, or
``(II) is a student who has not attained the age of 24 as
of the close of such calendar year,

``(iii) who, for the taxable year of the taxpayer, has the
same principal place of abode as the taxpayer and is a member
of the taxpayer's household, and
``(iv) with respect to whom the taxpayer provides over one-
half of the individual's support for the calendar year in
which the taxpayer's taxable year begins, and
``(E) an individual--
``(i) who is designated by the taxpayer for purposes of
this paragraph,
``(ii) who is not the spouse or qualifying child of such
taxpayer or any other taxpayer for any taxable year beginning
in the calendar year in which the taxpayer's taxable year
begins, and
``(iii) who, for the taxable year of the taxpayer, has the
same principal place of abode as the taxpayer and is a member
of the taxpayer's household.
For purposes of subparagraph (E)(i), not more than 1 person
may be designated by the taxpayer for any taxable year.''.
(b) Conforming Amendment.--Subparagraph (B) of section
162(l)(2) of the Internal Revenue Code of 1986 is amended by
striking ``or of the spouse of the taxpayer'' and inserting
``, of the spouse of the taxpayer, or of any individual
described in paragraph (1)(E)''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.
______

SA 167. Mrs. FEINSTEIN (for herself and Mr. Craig) submitted an
amendment intended to be proposed to amendment SA 118 submitted by Mr.
Chambliss (for himself, Mr. Isakson, and Mr. Burr) and intended to be
proposed to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

TITLE II--AGJOBS ACT OF 2007

SEC. 201. SHORT TITLE.

This title may be cited as the ``Agricultural Job
Opportunities, Benefits, and Security Act of 2007'' or the
``AgJOBS Act of 2007''.

SEC. 202. DEFINITIONS.

In this title:
(1) Agricultural employment.--The term ``agricultural
employment'' means any service or activity that is considered
to be agricultural under section 3(f) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural
labor under section 3121(g) of the Internal Revenue Code of
1986 or the performance of agricultural labor or services
described in section 101(a)(15)(H)(ii)(a) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(a)).
(2) Blue card status.--The term ``blue card status'' means
the status of an alien who has been lawfully admitted into
the United States for temporary residence under section
211(a).
(3) Department.--The term ``Department'' means the
Department of Homeland Security.
(4) Employer.--The term ``employer'' means any person or
entity, including any farm labor contractor and any
agricultural association, that employs workers in
agricultural employment.
(5) Secretary.--Except as otherwise provided, the term
``Secretary'' means the Secretary of Homeland Security.
(6) Temporary.--A worker is employed on a ``temporary''
basis when the employment is intended not to exceed 10
months.
(7) Work day.--The term ``work day'' means any day in which
the individual is employed 5.75 or more hours in agricultural
employment.

Subtitle A--Pilot Program for Earned Status Adjustment of Agricultural
Workers

PART I--BLUE CARD STATUS

SEC. 211. REQUIREMENTS FOR BLUE CARD STATUS.

(a) Requirement to Grant Blue Card Status.--Notwithstanding
any other provision of law, the Secretary shall, pursuant to
the requirements of this section, grant blue card status to
an alien who qualifies under this section if the Secretary
determines that the alien--
(1) has performed agricultural employment in the United
States for at least 863 hours or 150 work days during the 24-
month period ending on December 31, 2006;
(2) applied for such status during the 18-month application
period beginning on the first day of the seventh month that
begins after the date of enactment of this Act;
(3) is otherwise admissible to the United States under
section 212 of the Immigration and Nationality Act (8 U.S.C.
1182), except as otherwise provided under section 215(b); and
(4) has not been convicted of any felony or a misdemeanor,
an element of which involves bodily injury, threat of serious
bodily injury, or harm to property in excess of $500.
(b) Authorized Travel.--An alien who is granted blue card
status is authorized to travel outside the United States
(including commuting to the United States from a residence in
a foreign country) in the same manner as an alien lawfully
admitted for permanent residence.
(c) Authorized Employment.--The Secretary shall provide an
alien who is granted

[[Page S966]]

blue card status an employment authorized endorsement or
other appropriate work permit, in the same manner as an alien
lawfully admitted for permanent residence.
(d) Termination of Blue Card Status.--
(1) In general.--The Secretary may terminate blue card
status granted to an alien under this section only if the
Secretary determines that the alien is deportable.
(2) Grounds for termination of blue card status.--Before
any alien becomes eligible for adjustment of status under
section 213, the Secretary may deny adjustment to permanent
resident status and provide for termination of the blue card
status granted such alien under paragraph (1) if--
(A) the Secretary finds, by a preponderance of the
evidence, that the adjustment to blue card status was the
result of fraud or willful misrepresentation (as described in
section 212(a)(6)(C)(i) of the Immigration and Nationality
Act (8 U.S.C. 1182(a)(6)(C)(i)); or
(B) the alien--
(i) commits an act that makes the alien inadmissible to the
United States as an immigrant, except as provided under
section 215(b);
(ii) is convicted of a felony or 3 or more misdemeanors
committed in the United States;
(iii) is convicted of an offense, an element of which
involves bodily injury, threat of serious bodily injury, or
harm to property in excess of $500; or
(iv) fails to perform the agricultural employment required
under section 213(a)(1)(A) unless the alien was unable to
work in agricultural employment due to the extraordinary
circumstances described in section 213(a)(3).
(e) Record of Employment.--
(1) In general.--Each employer of an alien granted blue
card status under this section shall annually--
(A) provide a written record of employment to the alien;
and
(B) provide a copy of such record to the Secretary.
(2) Sunset.--The obligation under paragraph (1) shall
terminate on the date that is 6 years after the date of the
enactment of this Act.
(f) Required Features of Identity Card.--The Secretary
shall provide each alien granted blue card status, and the
spouse and any child of each such alien residing in the
United States, with a card that contains--
(1) an encrypted, machine-readable, electronic
identification strip that is unique to the alien to whom the
card is issued;
(2) biometric identifiers, including fingerprints and a
digital photograph; and
(3) physical security features designed to prevent
tampering, counterfeiting, or duplication of the card for
fraudulent purposes.
(g) Fine.--An alien granted blue card status shall pay a
fine of $100 to the Secretary.
(h) Maximum Number.--The Secretary may not issue more than
1,500,000 blue cards during the 5-year period beginning on
the date of the enactment of this Act.

SEC. 212. TREATMENT OF ALIENS GRANTED BLUE CARD STATUS.

(a) In General.--Except as otherwise provided under this
section, an alien granted blue card status shall be
considered to be an alien lawfully admitted for permanent
residence for purposes of any law other than any provision of
the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(b) Delayed Eligibility for Certain Federal Public
Benefits.--An alien granted blue card status shall not be
eligible, by reason of such status, for any form of
assistance or benefit described in section 403(a) of the
Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1613(a)) until 5 years after the date
on which the alien is granted an adjustment of status under
section 213.
(c) Terms of Employment.--
(1) Prohibition.--No alien granted blue card status may be
terminated from employment by any employer during the period
of blue card status except for just cause.
(2) Treatment of complaints.--
(A) Establishment of process.--The Secretary shall
establish a process for the receipt, initial review, and
disposition of complaints by aliens granted blue card status
who allege that they have been terminated without just cause.
No proceeding shall be conducted under this paragraph with
respect to a termination unless the Secretary determines that
the complaint was filed not later than 6 months after the
date of the termination.
(B) Initiation of arbitration.--If the Secretary finds that
an alien has filed a complaint in accordance with
subparagraph (A) and there is reasonable cause to believe
that the alien was terminated from employment without just
cause, the Secretary shall initiate binding arbitration
proceedings by requesting the Federal Mediation and
Conciliation Service to appoint a mutually agreeable
arbitrator from the roster of arbitrators maintained by such
Service for the geographical area in which the employer is
located. The procedures and rules of such Service shall be
applicable to the selection of such arbitrator and to such
arbitration proceedings. The Secretary shall pay the fee and
expenses of the arbitrator, subject to the availability of
appropriations for such purpose.
(C) Arbitration proceedings.--The arbitrator shall conduct
the proceeding under this paragraph in accordance with the
policies and procedures promulgated by the American
Arbitration Association applicable to private arbitration of
employment disputes. The arbitrator shall make findings
respecting whether the termination was for just cause. The
arbitrator may not find that the termination was for just
cause unless the employer so demonstrates by a preponderance
of the evidence. If the arbitrator finds that the termination
was not for just cause, the arbitrator shall make a specific
finding of the number of days or hours of work lost by the
employee as a result of the termination. The arbitrator shall
have no authority to order any other remedy, including
reinstatement, back pay, or front pay to the affected
employee. Not later than 30 days after the date of the
conclusion of the arbitration proceeding, the arbitrator
shall transmit the findings in the form of a written opinion
to the parties to the arbitration and the Secretary. Such
findings shall be final and conclusive, and no official or
court of the United States shall have the power or
jurisdiction to review any such findings.
(D) Effect of arbitration findings.--If the Secretary
receives a finding of an arbitrator that an employer has
terminated the employment of an alien who is granted blue
card status without just cause, the Secretary shall credit
the alien for the number of days or hours of work not
performed during such period of termination for the purpose
of determining if the alien meets the qualifying employment
requirement of section 213(a).
(E) Treatment of attorney's fees.--Each party to an
arbitration under this paragraph shall bear the cost of their
own attorney's fees for the arbitration.
(F) Nonexclusive remedy.--The complaint process provided
for in this paragraph is in addition to any other rights an
employee may have in accordance with applicable law.
(G) Effect on other actions or proceedings.--Any finding of
fact or law, judgment, conclusion, or final order made by an
arbitrator in the proceeding before the Secretary shall not
be conclusive or binding in any separate or subsequent action
or proceeding between the employee and the employee's current
or prior employer brought before an arbitrator,
administrative agency, court, or judge of any State or the
United States, regardless of whether the prior action was
between the same or related parties or involved the same
facts, except that the arbitrator's specific finding of the
number of days or hours of work lost by the employee as a
result of the employment termination may be referred to the
Secretary pursuant to subparagraph (D).
(3) Civil penalties.--
(A) In general.--If the Secretary finds, after notice and
opportunity for a hearing, that an employer of an alien
granted blue card status has failed to provide the record of
employment required under section 211(e) or has provided a
false statement of material fact in such a record, the
employer shall be subject to a civil money penalty in an
amount not to exceed $1,000 per violation.
(B) Limitation.--The penalty applicable under subparagraph
(A) for failure to provide records shall not apply unless the
alien has provided the employer with evidence of employment
authorization granted under this section.

SEC. 213. ADJUSTMENT TO PERMANENT RESIDENCE.

(a) In General.--Except as provided in subsection (b), the
Secretary shall adjust the status of an alien granted blue
card status to that of an alien lawfully admitted for
permanent residence if the Secretary determines that the
following requirements are satisfied:
(1) Qualifying employment.--
(A) In general.--Subject to subparagraph (B), the alien has
performed at least--
(i) 5 years of agricultural employment in the United States
for at least 100 work days per year, during the 5-year period
beginning on the date of the enactment of this Act; or
(ii) 3 years of agricultural employment in the United
States for at least 150 work days per year, during the 3-year
period beginning on the date of the enactment of this Act.
(B) 4-year period of employment.--An alien shall be
considered to meet the requirements of subparagraph (A) if
the alien has performed 4 years of agricultural employment in
the United States for at least 150 work days during 3 years
of those 4 years and at least 100 work days during the
remaining year, during the 4-year period beginning on the
date of the enactment of this Act.
(2) Proof.--An alien may demonstrate compliance with the
requirement under paragraph (1) by submitting--
(A) the record of employment described in section 211(e);
or
(B) such documentation as may be submitted under section
214(c).
(3) Extraordinary circumstances.--In determining whether an
alien has met the requirement of paragraph (1)(A), the
Secretary may credit the alien with not more than 12
additional months to meet the requirement of that
subparagraph if the alien was unable to work in agricultural
employment due to--
(A) pregnancy, injury, or disease, if the alien can
establish such pregnancy, disabling injury, or disease
through medical records;
(B) illness, disease, or other special needs of a minor
child, if the alien can establish such illness, disease, or
special needs through medical records; or
(C) severe weather conditions that prevented the alien from
engaging in agricultural employment for a significant period
of time.
(4) Application period.--The alien applies for adjustment
of status not later than 7

[[Page S967]]

years after the date of the enactment of this Act.
(5) Fine.--The alien pays a fine of $400 to the Secretary.
(b) Grounds for Denial of Adjustment of Status.--The
Secretary may deny an alien granted blue card status an
adjustment of status under this section and provide for
termination of such blue card status if--
(1) the Secretary finds by a preponderance of the evidence
that the adjustment to blue card status was the result of
fraud or willful misrepresentation, as described in section
212(a)(6)(C)(i) of the Immigration and Nationality Act (8
U.S.C. 1182(a)(6)(C)(i)); or
(2) the alien--
(A) commits an act that makes the alien inadmissible to the
United States under section 212 of the Immigration and
Nationality Act (8 U.S.C. 1182), except as provided under
section 215(b);
(B) is convicted of a felony or 3 or more misdemeanors
committed in the United States; or
(C) is convicted of an offense, an element of which
involves bodily injury, threat of serious bodily injury, or
harm to property in excess of $500.
(c) Grounds for Removal.--Any alien granted blue card
status who does not apply for adjustment of status under this
section before the expiration of the application period
described in subsection (a)(4) or who fails to meet the other
requirements of subsection (a) by the end of the application
period, is deportable and may be removed under section 240 of
the Immigration and Nationality Act (8 U.S.C. 1229a).
(d) Payment of Taxes.--
(1) In general.--Not later than the date on which an
alien's status is adjusted under this section, the alien
shall establish that the alien does not owe any applicable
Federal tax liability by establishing that--
(A) no such tax liability exists;
(B) all such outstanding tax liabilities have been paid; or
(C) the alien has entered into an agreement for payment of
all outstanding liabilities with the Internal Revenue
Service.
(2) Applicable federal tax liability.--In paragraph (1) the
term ``applicable Federal tax liability'' means liability for
Federal taxes, including penalties and interest, owed for any
year during the period of employment required under
subsection (a)(1) for which the statutory period for
assessment of any deficiency for such taxes has not expired.
(3) IRS cooperation.--The Secretary of the Treasury shall
establish rules and procedures under which the Commissioner
of Internal Revenue shall provide documentation to an alien
upon request to establish the payment of all taxes required
by this subsection.
(e) Spouses and Minor Children.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary shall confer the status of lawful
permanent resident on the spouse and minor child of an alien
granted any adjustment of status under subsection (a),
including any individual who was a minor child on the date
such alien was granted blue card status, if the spouse or
minor child applies for such status, or if the principal
alien includes the spouse or minor child in an application
for adjustment of status to that of a lawful permanent
resident.
(2) Treatment of spouses and minor children.--
(A) Granting of status and removal.--The Secretary may
grant derivative status to the alien spouse and any minor
child residing in the United States of an alien granted blue
card status and shall not remove such derivative spouse or
child during the period that the alien granted blue card
status maintains such status, except as provided in paragraph
(3). A grant of derivative status to such a spouse or child
under this subparagraph shall not decrease the number of
aliens who may receive blue card status under subsection (h)
of section 211.
(B) Travel.--The derivative spouse and any minor child of
an alien granted blue card status may travel outside the
United States in the same manner as an alien lawfully
admitted for permanent residence.
(C) Employment.--The derivative spouse of an alien granted
blue card status may apply to the Secretary for a work permit
to authorize such spouse to engage in any lawful employment
in the United States while such alien maintains blue card
status.
(3) Grounds for denial of adjustment of status and
removal.--The Secretary may deny an alien spouse or child
adjustment of status under paragraph (1) and may remove such
spouse or child under section 240 of the Immigration and
Nationality Act (8 U.S.C. 1229a) if the spouse or child--
(A) commits an act that makes the alien spouse or child
inadmissible to the United States under section 212 of such
Act (8 U.S.C. 1182), except as provided under section 215(b);
(B) is convicted of a felony or 3 or more misdemeanors
committed in the United States; or
(C) is convicted of an offense, an element of which
involves bodily injury, threat of serious bodily injury, or
harm to property in excess of $500.

SEC. 214. APPLICATIONS.

(a) Submission.--The Secretary shall provide that--
(1) applications for blue card status under section 211 may
be submitted--
(A) to the Secretary if the applicant is represented by an
attorney or a nonprofit religious, charitable, social
service, or similar organization recognized by the Board of
Immigration Appeals under section 292.2 of title 8, Code of
Federal Regulations; or
(B) to a qualified designated entity if the applicant
consents to the forwarding of the application to the
Secretary; and
(2) applications for adjustment of status under section 213
shall be filed directly with the Secretary.
(b) Qualified Designated Entity Defined.--In this section,
the term ``qualified designated entity'' means--
(1) a qualified farm labor organization or an association
of employers designated by the Secretary; or
(2) any such other person designated by the Secretary if
that Secretary determines such person is qualified and has
substantial experience, demonstrated competence, and has a
history of long-term involvement in the preparation and
submission of applications for adjustment of status under
section 209, 210, or 245 of the Immigration and Nationality
Act (8 U.S.C. 1159, 1160, and 1255), the Act entitled ``An
Act to adjust the status of Cuban refugees to that of lawful
permanent residents of the United States, and for other
purposes'', approved November 2, 1966 (Public Law 89-732; 8
U.S.C. 1255 note), Public Law 95-145 (8 U.S.C. 1255 note), or
the Immigration Reform and Control Act of 1986 (Public Law
99-603; 100 Stat. 3359) or any amendment made by that Act.
(c) Proof of Eligibility.--
(1) In general.--An alien may establish that the alien
meets the requirement of section 211(a)(1) or 213(a)(1)
through government employment records or records supplied by
employers or collective bargaining organizations, and other
reliable documentation as the alien may provide. The
Secretary shall establish special procedures to properly
credit work in cases in which an alien was employed under an
assumed name.
(2) Documentation of work history.--
(A) Burden of proof.--An alien applying for status under
section 211(a) or 213(a) has the burden of proving by a
preponderance of the evidence that the alien has worked the
requisite number of hours or days required under section
211(a)(1) or 213(a)(1), as applicable.
(B) Timely production of records.--If an employer or farm
labor contractor employing such an alien has kept proper and
adequate records respecting such employment, the alien's
burden of proof under subparagraph (A) may be met by securing
timely production of those records under regulations to be
promulgated by the Secretary.
(C) Sufficient evidence.--An alien may meet the burden of
proof under subparagraph (A) to establish that the alien has
performed the days or hours of work required by section
211(a)(1) or 213(a)(1) by producing sufficient evidence to
show the extent of that employment as a matter of just and
reasonable inference.
(d) Applications Submitted to Qualified Designated
Entities.--
(1) Requirements.--Each qualified designated entity shall
agree--
(A) to forward to the Secretary an application submitted to
that entity pursuant to subsection (a)(1)(B) if the applicant
has consented to such forwarding;
(B) not to forward to the Secretary any such application if
the applicant has not consented to such forwarding; and
(C) to assist an alien in obtaining documentation of the
alien's work history, if the alien requests such assistance.
(2) No authority to make determinations.--No qualified
designated entity may make a determination required by this
subtitle to be made by the Secretary.
(e) Limitation on Access to Information.--Files and records
collected or compiled by a qualified designated entity for
the purposes of this section are confidential and the
Secretary shall not have access to such a file or record
relating to an alien without the consent of the alien, except
as allowed by a court order issued pursuant to subsection
(f).
(f) Confidentiality of Information.--
(1) In general.--Except as otherwise provided in this
section, the Secretary or any other official or employee of
the Department or a bureau or agency of the Department is
prohibited from--
(A) using information furnished by the applicant pursuant
to an application filed under this title, the information
provided by an applicant to a qualified designated entity, or
any information provided by an employer or former employer
for any purpose other than to make a determination on the
application or for imposing the penalties described in
subsection (g);
(B) making any publication in which the information
furnished by any particular individual can be identified; or
(C) permitting a person other than a sworn officer or
employee of the Department or a bureau or agency of the
Department or, with respect to applications filed with a
qualified designated entity, that qualified designated
entity, to examine individual applications.
(2) Required disclosures.--The Secretary shall provide the
information furnished under this title or any other
information derived from such furnished information to--
(A) a duly recognized law enforcement entity in connection
with a criminal investigation or prosecution, if such
information is requested in writing by such entity; or
(B) an official coroner, for purposes of affirmatively
identifying a deceased individual, whether or not the death
of such individual resulted from a crime.
(3) Construction.--

[[Page S968]]

(A) In general.--Nothing in this subsection shall be
construed to limit the use, or release, for immigration
enforcement purposes or law enforcement purposes, of
information contained in files or records of the Department
pertaining to an application filed under this section, other
than information furnished by an applicant pursuant to the
application, or any other information derived from the
application, that is not available from any other source.
(B) Criminal convictions.--Notwithstanding any other
provision of this subsection, information concerning whether
the alien applying for blue card status under section 211 or
an adjustment of status under section 213 has been convicted
of a crime at any time may be used or released for
immigration enforcement or law enforcement purposes.
(4) Crime.--Any person who knowingly uses, publishes, or
permits information to be examined in violation of this
subsection shall be subject to a fine in an amount not to
exceed $10,000.
(g) Penalties for False Statements in Applications.--
(1) Criminal penalty.--Any person who--
(A) files an application for blue card status under section
211 or an adjustment of status under section 213 and
knowingly and willfully falsifies, conceals, or covers up a
material fact or makes any false, fictitious, or fraudulent
statements or representations, or makes or uses any false
writing or document knowing the same to contain any false,
fictitious, or fraudulent statement or entry; or
(B) creates or supplies a false writing or document for use
in making such an application,
shall be fined in accordance with title 18, United States
Code, imprisoned not more than 5 years, or both.
(2) Inadmissibility.--An alien who is convicted of a crime
under paragraph (1) shall be considered to be inadmissible to
the United States on the ground described in section
212(a)(6)(C)(i) of the Immigration and Nationality Act (8
U.S.C. 1182(a)(6)(C)(i)).
(h) Eligibility for Legal Services.--Section 504(a)(11) of
Public Law 104-134 (110 Stat. 1321-53 et seq.) shall not be
construed to prevent a recipient of funds under the Legal
Services Corporation Act (42 U.S.C. 2996 et seq.) from
providing legal assistance directly related to an application
for blue card status under section 211 or an adjustment of
status under section 213.
(i) Application Fees.--
(1) Fee schedule.--The Secretary shall provide for a
schedule of fees that--
(A) shall be charged for the filing of an application for
blue card status under section 211 or for an adjustment of
status under section 213; and
(B) may be charged by qualified designated entities to help
defray the costs of services provided to such applicants.
(2) Prohibition on excess fees by qualified designated
entities.--A qualified designated entity may not charge any
fee in excess of, or in addition to, the fees authorized
under paragraph (1)(B) for services provided to applicants.
(3) Disposition of fees.--
(A) In general.--There is established in the general fund
of the Treasury a separate account, which shall be known as
the ``Agricultural Worker Immigration Status Adjustment
Account''. Notwithstanding any other provision of law, there
shall be deposited as offsetting receipts into the account
all fees collected under paragraph (1)(A).
(B) Use of fees for application processing.--Amounts
deposited in the ``Agricultural Worker Immigration Status
Adjustment Account'' shall remain available to the Secretary
until expended for processing applications for blue card
status under section 211 or an adjustment of status under
section 213.

SEC. 215. WAIVER OF NUMERICAL LIMITATIONS AND CERTAIN GROUNDS
FOR INADMISSIBILITY.

(a) Numerical Limitations Do Not Apply.--The numerical
limitations of sections 201 and 202 of the Immigration and
Nationality Act (8 U.S.C. 1151 and 1152) shall not apply to
the adjustment of aliens to lawful permanent resident status
under section 213.
(b) Waiver of Certain Grounds of Inadmissibility.--In the
determination of an alien's eligibility for status under
section 211(a) or an alien's eligibility for adjustment of
status under section 213(b)(2)(A) the following rules shall
apply:
(1) Grounds of exclusion not applicable.--The provisions of
paragraphs (5), (6)(A), (7), and (9) of section 212(a) of the
Immigration and Nationality Act (8 U.S.C. 1182(a)) shall not
apply.
(2) Waiver of other grounds.--
(A) In general.--Except as provided in subparagraph (B),
the Secretary may waive any other provision of such section
212(a) in the case of individual aliens for humanitarian
purposes, to ensure family unity, or if otherwise in the
public interest.
(B) Grounds that may not be waived.--Paragraphs (2)(A),
(2)(B), (2)(C), (3), and (4) of such section 212(a) may not
be waived by the Secretary under subparagraph (A).
(C) Construction.--Nothing in this paragraph shall be
construed as affecting the authority of the Secretary other
than under this subparagraph to waive provisions of such
section 212(a).
(3) Special rule for determination of public charge.--An
alien is not ineligible for blue card status under section
211 or an adjustment of status under section 213 by reason of
a ground of inadmissibility under section 212(a)(4) of the
Immigration and Nationality Act (8 U.S.C. 1182(a)(4)) if the
alien demonstrates a history of employment in the United
States evidencing self-support without reliance on public
cash assistance.
(c) Temporary Stay of Removal and Work Authorization for
Certain Applicants.--
(1) Before application period.--Effective on the date of
enactment of this Act, the Secretary shall provide that, in
the case of an alien who is apprehended before the beginning
of the application period described in section 211(a)(2) and
who can establish a nonfrivolous case of eligibility for blue
card status (but for the fact that the alien may not apply
for such status until the beginning of such period), until
the alien has had the opportunity during the first 30 days of
the application period to complete the filing of an
application for blue card status, the alien--
(A) may not be removed; and
(B) shall be granted authorization to engage in employment
in the United States and be provided an employment authorized
endorsement or other appropriate work permit for such
purpose.
(2) During application period.--The Secretary shall provide
that, in the case of an alien who presents a nonfrivolous
application for blue card status during the application
period described in section 211(a)(2), including an alien who
files such an application within 30 days of the alien's
apprehension, and until a final determination on the
application has been made in accordance with this section,
the alien--
(A) may not be removed; and
(B) shall be granted authorization to engage in employment
in the United States and be provided an employment authorized
endorsement or other appropriate work permit for such
purpose.

SEC. 216. ADMINISTRATIVE AND JUDICIAL REVIEW.

(a) In General.--There shall be no administrative or
judicial review of a determination respecting an application
for blue card status under section 211 or adjustment of
status under section 213 except in accordance with this
section.
(b) Administrative Review.--
(1) Single level of administrative appellate review.--The
Secretary shall establish an appellate authority to provide
for a single level of administrative appellate review of such
a determination.
(2) Standard for review.--Such administrative appellate
review shall be based solely upon the administrative record
established at the time of the determination on the
application and upon such additional or newly discovered
evidence as may not have been available at the time of the
determination.
(c) Judicial Review.--
(1) Limitation to review of removal.--There shall be
judicial review of such a determination only in the judicial
review of an order of removal under section 242 of the
Immigration and Nationality Act (8 U.S.C. 1252).
(2) Standard for judicial review.--Such judicial review
shall be based solely upon the administrative record
established at the time of the review by the appellate
authority and the findings of fact and determinations
contained in such record shall be conclusive unless the
applicant can establish abuse of discretion or that the
findings are directly contrary to clear and convincing facts
contained in the record considered as a whole.

SEC. 217. USE OF INFORMATION.

Beginning not later than the first day of the application
period described in section 211(a)(2), the Secretary, in
cooperation with qualified designated entities (as that term
is defined in section 214(b)), shall broadly disseminate
information respecting the benefits that aliens may receive
under this subtitle and the requirements that an alien is
required to meet to receive such benefits.

SEC. 218. REGULATIONS, EFFECTIVE DATE, AUTHORIZATION OF
APPROPRIATIONS.

(a) Regulations.--The Secretary shall issue regulations to
implement this subtitle not later than the first day of the
seventh month that begins after the date of enactment of this
Act.
(b) Effective Date.--This subtitle shall take effect on the
date that regulations required by subsection (a) are issued,
regardless of whether such regulations are issued on an
interim basis or on any other basis.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as may be
necessary to implement this subtitle, including any sums
needed for costs associated with the initiation of such
implementation, for fiscal years 2007 and 2008.

PART II--CORRECTION OF SOCIAL SECURITY RECORDS

SEC. 221. CORRECTION OF SOCIAL SECURITY RECORDS.

(a) In General.--Section 208(e)(1) of the Social Security
Act (42 U.S.C. 408(e)(1)) is amended--
(1) in subparagraph (B)(ii), by striking ``or'' at the end;
(2) in subparagraph (C), by inserting ``or'' at the end;
(3) by inserting after subparagraph (C) the following:
``(D) who is granted blue card status under the
Agricultural Job Opportunity, Benefits, and Security Act of
2007,''; and
(4) by striking ``1990.'' and inserting ``1990, or in the
case of an alien described in subparagraph (D), if such
conduct is alleged to

[[Page S969]]

have occurred before the date on which the alien was granted
blue card status.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the first day of the seventh month that
begins after the date of the enactment of this Act.

Subtitle B--Reform of H-2A Worker Program

SEC. 231. AMENDMENT TO THE IMMIGRATION AND NATIONALITY ACT.

(a) In General.--Title II of the Immigration and
Nationality Act (8 U.S.C. 1151 et seq.) is amended by
striking section 218 and inserting the following:

``SEC. 218. H-2A EMPLOYER APPLICATIONS.

``(a) Applications to the Secretary of Labor.--
``(1) In general.--No alien may be admitted to the United
States as an H-2A worker, or otherwise provided status as an
H-2A worker, unless the employer has filed with the Secretary
of Labor an application containing--
``(A) the assurances described in subsection (b);
``(B) a description of the nature and location of the work
to be performed;
``(C) the anticipated period (expected beginning and ending
dates) for which the workers will be needed; and
``(D) the number of job opportunities in which the employer
seeks to employ the workers.
``(2) Accompanied by job offer.--Each application filed
under paragraph (1) shall be accompanied by a copy of the job
offer describing the wages and other terms and conditions of
employment and the bona fide occupational qualifications that
shall be possessed by a worker to be employed in the job
opportunity in question.
``(b) Assurances for Inclusion in Applications.--The
assurances referred to in subsection (a)(1) are the
following:
``(1) Job opportunities covered by collective bargaining
agreements.--With respect to a job opportunity that is
covered under a collective bargaining agreement:
``(A) Union contract described.--The job opportunity is
covered by a union contract which was negotiated at arm's
length between a bona fide union and the employer.
``(B) Strike or lockout.--The specific job opportunity for
which the employer is requesting an H-2A worker is not vacant
because the former occupant is on strike or being locked out
in the course of a labor dispute.
``(C) Notification of bargaining representatives.--The
employer, at the time of filing the application, has provided
notice of the filing under this paragraph to the bargaining
representative of the employer's employees in the
occupational classification at the place or places of
employment for which aliens are sought.
``(D) Temporary or seasonal job opportunities.--The job
opportunity is temporary or seasonal.
``(E) Offers to united states workers.--The employer has
offered or will offer the job to any eligible United States
worker who applies and is equally or better qualified for the
job for which the nonimmigrant is, or the nonimmigrants are,
sought and who will be available at the time and place of
need.
``(F) Provision of insurance.--If the job opportunity is
not covered by the State workers' compensation law, the
employer will provide, at no cost to the worker, insurance
covering injury and disease arising out of, and in the course
of, the worker's employment which will provide benefits at
least equal to those provided under the State's workers'
compensation law for comparable employment.
``(2) Job opportunities not covered by collective
bargaining agreements.--With respect to a job opportunity
that is not covered under a collective bargaining agreement:
``(A) Strike or lockout.--The specific job opportunity for
which the employer has applied for an H-2A worker is not
vacant because the former occupant is on strike or being
locked out in the course of a labor dispute.
``(B) Temporary or seasonal job opportunities.--The job
opportunity is temporary or seasonal.
``(C) Benefit, wage, and working conditions.--The employer
will provide, at a minimum, the benefits, wages, and working
conditions required by section 218A to all workers employed
in the job opportunities for which the employer has applied
for an H-2A worker under subsection (a) and to all other
workers in the same occupation at the place of employment.
``(D) Nondisplacement of united states workers.--The
employer did not displace and will not displace a United
States worker employed by the employer during the period of
employment and for a period of 30 days preceding the period
of employment in the occupation at the place of employment
for which the employer has applied for an H-2A worker.
``(E) Requirements for placement of the nonimmigrant with
other employers.--The employer will not place the
nonimmigrant with another employer unless--
``(i) the nonimmigrant performs duties in whole or in part
at 1 or more worksites owned, operated, or controlled by such
other employer;
``(ii) there are indicia of an employment relationship
between the nonimmigrant and such other employer; and
``(iii) the employer has inquired of the other employer as
to whether, and has no actual knowledge or notice that,
during the period of employment and for a period of 30 days
preceding the period of employment, the other employer has
displaced or intends to displace a United States worker
employed by the other employer in the occupation at the place
of employment for which the employer seeks approval to employ
H-2A workers.
``(F) Statement of liability.--The application form shall
include a clear statement explaining the liability under
subparagraph (E) of an employer if the other employer
described in such subparagraph displaces a United States
worker as described in such subparagraph.
``(G) Provision of insurance.--If the job opportunity is
not covered by the State workers' compensation law, the
employer will provide, at no cost to the worker, insurance
covering injury and disease arising out of and in the course
of the worker's employment which will provide benefits at
least equal to those provided under the State's workers'
compensation law for comparable employment.
``(H) Employment of united states workers.--
``(i) Recruitment.--The employer has taken or will take the
following steps to recruit United States workers for the job
opportunities for which the H-2A nonimmigrant is, or H-2A
nonimmigrants are, sought:

``(I) Contacting former workers.--The employer shall make
reasonable efforts through the sending of a letter by United
States Postal Service mail, or otherwise, to contact any
United States worker the employer employed during the
previous season in the occupation at the place of intended
employment for which the employer is applying for workers and
has made the availability of the employer's job opportunities
in the occupation at the place of intended employment known
to such previous workers, unless the worker was terminated
from employment by the employer for a lawful job-related
reason or abandoned the job before the worker completed the
period of employment of the job opportunity for which the
worker was hired.
``(II) Filing a job offer with the local office of the
state employment security agency.--Not later than 28 days
before the date on which the employer desires to employ an H-
2A worker in a temporary or seasonal agricultural job
opportunity, the employer shall submit a copy of the job
offer described in subsection (a)(2) to the local office of
the State employment security agency which serves the area of
intended employment and authorize the posting of the job
opportunity on `America's Job Bank' or other electronic job
registry, except that nothing in this subclause shall require
the employer to file an interstate job order under section
653 of title 20, Code of Federal Regulations.
``(III) Advertising of job opportunities.--Not later than
14 days before the date on which the employer desires to
employ an H-2A worker in a temporary or seasonal agricultural
job opportunity, the employer shall advertise the
availability of the job opportunities for which the employer
is seeking workers in a publication in the local labor market
that is likely to be patronized by potential farm workers.
``(IV) Emergency procedures.--The Secretary of Labor shall,
by regulation, provide a procedure for acceptance and
approval of applications in which the employer has not
complied with the provisions of this subparagraph because the
employer's need for H-2A workers could not reasonably have
been foreseen.

``(ii) Job offers.--The employer has offered or will offer
the job to any eligible United States worker who applies and
is equally or better qualified for the job for which the
nonimmigrant is, or nonimmigrants are, sought and who will be
available at the time and place of need.
``(iii) Period of employment.--The employer will provide
employment to any qualified United States worker who applies
to the employer during the period beginning on the date on
which the H-2A worker departs for the employer's place of
employment and ending on the date on which 50 percent of the
period of employment for which the H-2A worker who is in the
job was hired has elapsed, subject to the following
requirements:

``(I) Prohibition.--No person or entity shall willfully and
knowingly withhold United States workers before the arrival
of H-2A workers in order to force the hiring of United States
workers under this clause.
``(II) Complaints.--Upon receipt of a complaint by an
employer that a violation of subclause (I) has occurred, the
Secretary of Labor shall immediately investigate. The
Secretary of Labor shall, within 36 hours of the receipt of
the complaint, issue findings concerning the alleged
violation. If the Secretary of Labor finds that a violation
has occurred, the Secretary of Labor shall immediately
suspend the application of this clause with respect to that
certification for that date of need.
``(III) Placement of united states workers.--Before
referring a United States worker to an employer during the
period described in the matter preceding subclause (I), the
Secretary of Labor shall make all reasonable efforts to place
the United States worker in an open job acceptable to the
worker, if there are other job offers pending with the job
service that offer similar job opportunities in the area of
intended employment.

[[Page S970]]

``(iv) Statutory construction.--Nothing in this
subparagraph shall be construed to prohibit an employer from
using such legitimate selection criteria relevant to the type
of job that are normal or customary to the type of job
involved so long as such criteria are not applied in a
discriminatory manner.
``(c) Applications by Associations on Behalf of Employer
Members.--
``(1) In general.--An agricultural association may file an
application under subsection (a) on behalf of 1 or more of
its employer members that the association certifies in its
application has or have agreed in writing to comply with the
requirements of this section and sections 218A, 218B, and
218C.
``(2) Treatment of associations acting as employers.--If an
association filing an application under paragraph (1) is a
joint or sole employer of the temporary or seasonal
agricultural workers requested on the application, the
certifications granted under subsection (e)(2)(B) to the
association may be used for the certified job opportunities
of any of its producer members named on the application, and
such workers may be transferred among such producer members
to perform the agricultural services of a temporary or
seasonal nature for which the certifications were granted.
``(d) Withdrawal of Applications.--
``(1) In general.--An employer may withdraw an application
filed pursuant to subsection (a), except that if the employer
is an agricultural association, the association may withdraw
an application filed pursuant to subsection (a) with respect
to 1 or more of its members. To withdraw an application, the
employer or association shall notify the Secretary of Labor
in writing, and the Secretary of Labor shall acknowledge in
writing the receipt of such withdrawal notice. An employer
who withdraws an application under subsection (a), or on
whose behalf an application is withdrawn, is relieved of the
obligations undertaken in the application.
``(2) Limitation.--An application may not be withdrawn
while any alien provided status under section
101(a)(15)(H)(ii)(a) pursuant to such application is employed
by the employer.
``(3) Obligations under other statutes.--Any obligation
incurred by an employer under any other law or regulation as
a result of the recruitment of United States workers or H-2A
workers under an offer of terms and conditions of employment
required as a result of making an application under
subsection (a) is unaffected by withdrawal of such
application.
``(e) Review and Approval of Applications.--
``(1) Responsibility of employers.--The employer shall make
available for public examination, within 1 working day after
the date on which an application under subsection (a) is
filed, at the employer's principal place of business or
worksite, a copy of each such application (and such
accompanying documents as are necessary).
``(2) Responsibility of the secretary of labor.--
``(A) Compilation of list.--The Secretary of Labor shall
compile, on a current basis, a list (by employer and by
occupational classification) of the applications filed under
subsection (a). Such list shall include the wage rate, number
of workers sought, period of intended employment, and date of
need. The Secretary of Labor shall make such list available
for examination in the District of Columbia.
``(B) Review of applications.--The Secretary of Labor shall
review such an application only for completeness and obvious
inaccuracies. Unless the Secretary of Labor finds that the
application is incomplete or obviously inaccurate, the
Secretary of Labor shall certify that the intending employer
has filed with the Secretary of Labor an application as
described in subsection (a). Such certification shall be
provided within 7 days of the filing of the application.''

``SEC. 218A. H-2A EMPLOYMENT REQUIREMENTS.

``(a) Preferential Treatment of Aliens Prohibited.--
Employers seeking to hire United States workers shall offer
the United States workers no less than the same benefits,
wages, and working conditions that the employer is offering,
intends to offer, or will provide to H-2A workers.
Conversely, no job offer may impose on United States workers
any restrictions or obligations which will not be imposed on
the employer's H-2A workers.
``(b) Minimum Benefits, Wages, and Working Conditions.--
Except in cases where higher benefits, wages, or working
conditions are required by the provisions of subsection (a),
in order to protect similarly employed United States workers
from adverse effects with respect to benefits, wages, and
working conditions, every job offer which shall accompany an
application under section 218(b)(2) shall include each of the
following benefit, wage, and working condition provisions:
``(1) Requirement to provide housing or a housing
allowance.--
``(A) In general.--An employer applying under section
218(a) for H-2A workers shall offer to provide housing at no
cost to all workers in job opportunities for which the
employer has applied under that section and to all other
workers in the same occupation at the place of employment,
whose place of residence is beyond normal commuting distance.
``(B) Type of housing.--In complying with subparagraph (A),
an employer may, at the employer's election, provide housing
that meets applicable Federal standards for temporary labor
camps or secure housing that meets applicable local standards
for rental or public accommodation housing or other
substantially similar class of habitation, or in the absence
of applicable local standards, State standards for rental or
public accommodation housing or other substantially similar
class of habitation. In the absence of applicable local or
State standards, Federal temporary labor camp standards shall
apply.
``(C) Family housing.--If it is the prevailing practice in
the occupation and area of intended employment to provide
family housing, family housing shall be provided to workers
with families who request it.
``(D) Workers engaged in the range production of
livestock.--The Secretary of Labor shall issue regulations
that address the specific requirements for the provision of
housing to workers engaged in the range production of
livestock.
``(E) Limitation.--Nothing in this paragraph shall be
construed to require an employer to provide or secure housing
for persons who were not entitled to such housing under the
temporary labor certification regulations in effect on June
1, 1986.
``(F) Charges for housing.--
``(i) Charges for public housing.--If public housing
provided for migrant agricultural workers under the auspices
of a local, county, or State government is secured by an
employer, and use of the public housing unit normally
requires charges from migrant workers, such charges shall be
paid by the employer directly to the appropriate individual
or entity affiliated with the housing's management.
``(ii) Deposit charges.--Charges in the form of deposits
for bedding or other similar incidentals related to housing
shall not be levied upon workers by employers who provide
housing for their workers. An employer may require a worker
found to have been responsible for damage to such housing
which is not the result of normal wear and tear related to
habitation to reimburse the employer for the reasonable cost
of repair of such damage.
``(G) Housing allowance as alternative.--
``(i) In general.--If the requirement set out in clause
(ii) is satisfied, the employer may provide a reasonable
housing allowance instead of offering housing under
subparagraph (A). Upon the request of a worker seeking
assistance in locating housing, the employer shall make a
good faith effort to assist the worker in identifying and
locating housing in the area of intended employment. An
employer who offers a housing allowance to a worker, or
assists a worker in locating housing which the worker
occupies, pursuant to this clause shall not be deemed a
housing provider under section 203 of the Migrant and
Seasonal Agricultural Worker Protection Act (29 U.S.C. 1823)
solely by virtue of providing such housing allowance. No
housing allowance may be used for housing which is owned or
controlled by the employer.
``(ii) Certification.--The requirement of this clause is
satisfied if the Governor of the State certifies to the
Secretary of Labor that there is adequate housing available
in the area of intended employment for migrant farm workers
and H-2A workers who are seeking temporary housing while
employed in agricultural work. Such certification shall
expire after 3 years unless renewed by the Governor of the
State.
``(iii) Amount of allowance.--

``(I) Nonmetropolitan counties.--If the place of employment
of the workers provided an allowance under this subparagraph
is a nonmetropolitan county, the amount of the housing
allowance under this subparagraph shall be equal to the
statewide average fair market rental for existing housing for
nonmetropolitan counties for the State, as established by the
Secretary of Housing and Urban Development pursuant to
section 8(c) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an
assumption of 2 persons per bedroom.
``(II) Metropolitan counties.--If the place of employment
of the workers provided an allowance under this paragraph is
in a metropolitan county, the amount of the housing allowance
under this subparagraph shall be equal to the statewide
average fair market rental for existing housing for
metropolitan counties for the State, as established by the
Secretary of Housing and Urban Development pursuant to
section 8(c) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an
assumption of 2 persons per bedroom.

``(2) Reimbursement of transportation.--
``(A) To place of employment.--A worker who completes 50
percent of the period of employment of the job opportunity
for which the worker was hired shall be reimbursed by the
employer for the cost of the worker's transportation and
subsistence from the place from which the worker came to work
for the employer (or place of last employment, if the worker
traveled from such place) to the place of employment.
``(B) From place of employment.--A worker who completes the
period of employment for the job opportunity involved shall
be reimbursed by the employer for the cost of the worker's
transportation and subsistence from the place of employment
to the place from which the worker, disregarding intervening
employment, came to work for the employer, or to the place of
next employment, if the worker has contracted with a
subsequent employer who has not agreed to

[[Page S971]]

provide or pay for the worker's transportation and
subsistence to such subsequent employer's place of
employment.
``(C) Limitation.--
``(i) Amount of reimbursement.--Except as provided in
clause (ii), the amount of reimbursement provided under
subparagraph (A) or (B) to a worker or alien shall not exceed
the lesser of--

``(I) the actual cost to the worker or alien of the
transportation and subsistence involved; or
``(II) the most economical and reasonable common carrier
transportation charges and subsistence costs for the distance
involved.

``(ii) Distance traveled.--No reimbursement under
subparagraph (A) or (B) shall be required if the distance
traveled is 100 miles or less, or the worker is not residing
in employer-provided housing or housing secured through an
allowance as provided in paragraph (1)(G).
``(D) Early termination.--If the worker is laid off or
employment is terminated for contract impossibility (as
described in paragraph (4)(D)) before the anticipated ending
date of employment, the employer shall provide the
transportation and subsistence required by subparagraph (B)
and, notwithstanding whether the worker has completed 50
percent of the period of employment, shall provide the
transportation reimbursement required by subparagraph (A).
``(E) Transportation between living quarters and
worksite.--The employer shall provide transportation between
the worker's living quarters and the employer's worksite
without cost to the worker, and such transportation will be
in accordance with applicable laws and regulations.
``(3) Required wages.--
``(A) In general.--An employer applying for workers under
section 218(a) shall offer to pay, and shall pay, all workers
in the occupation for which the employer has applied for
workers, not less (and is not required to pay more) than the
greater of the prevailing wage in the occupation in the area
of intended employment or the adverse effect wage rate. No
worker shall be paid less than the greater of the hourly wage
prescribed under section 6(a)(1) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable State
minimum wage.
``(B) Limitation.--Effective on the date of the enactment
of the Agricultural Job Opportunities, Benefits, and Security
Act of 2007 and continuing for 3 years thereafter, no adverse
effect wage rate for a State may be more than the adverse
effect wage rate for that State in effect on January 1, 2003,
as established by section 655.107 of title 20, Code of
Federal Regulations.
``(C) Required wages after 3-year freeze.--
``(i) First adjustment.--If Congress does not set a new
wage standard applicable to this section before the first
March 1 that is not less than 3 years after the date of
enactment of this section, the adverse effect wage rate for
each State beginning on such March 1 shall be the wage rate
that would have resulted if the adverse effect wage rate in
effect on January 1, 2003, had been annually adjusted,
beginning on March 1, 2006, by the lesser of--

``(I) the 12-month percentage change in the Consumer Price
Index for All Urban Consumers between December of the second
preceding year and December of the preceding year; and
``(II) 4 percent.

``(ii) Subsequent annual adjustments.--Beginning on the
first March 1 that is not less than 4 years after the date of
enactment of this section, and each March 1 thereafter, the
adverse effect wage rate then in effect for each State shall
be adjusted by the lesser of--

``(I) the 12-month percentage change in the Consumer Price
Index for All Urban Consumers between December of the second
preceding year and December of the preceding year; and
``(II) 4 percent.

``(D) Deductions.--The employer shall make only those
deductions from the worker's wages that are authorized by law
or are reasonable and customary in the occupation and area of
employment. The job offer shall specify all deductions not
required by law which the employer will make from the
worker's wages.
``(E) Frequency of pay.--The employer shall pay the worker
not less frequently than twice monthly, or in accordance with
the prevailing practice in the area of employment, whichever
is more frequent.
``(F) Hours and earnings statements.--The employer shall
furnish to the worker, on or before each payday, in 1 or more
written statements--
``(i) the worker's total earnings for the pay period;
``(ii) the worker's hourly rate of pay, piece rate of pay,
or both;
``(iii) the hours of employment which have been offered to
the worker (broken out by hours offered in accordance with
and over and above the \3/4\ guarantee described in paragraph
(4);
``(iv) the hours actually worked by the worker;
``(v) an itemization of the deductions made from the
worker's wages; and
``(vi) if piece rates of pay are used, the units produced
daily.
``(G) Report on wage protections.--Not later than December
31, 2009, the Comptroller General of the United States shall
prepare and transmit to the Secretary of Labor, the Committee
on the Judiciary of the Senate, and Committee on the
Judiciary of the House of Representatives, a report that
addresses--
``(i) whether the employment of H-2A or unauthorized aliens
in the United States agricultural workforce has depressed
United States farm worker wages below the levels that would
otherwise have prevailed if alien farm workers had not been
employed in the United States;
``(ii) whether an adverse effect wage rate is necessary to
prevent wages of United States farm workers in occupations in
which H-2A workers are employed from falling below the wage
levels that would have prevailed in the absence of the
employment of H-2A workers in those occupations;
``(iii) whether alternative wage standards, such as a
prevailing wage standard, would be sufficient to prevent
wages in occupations in which H-2A workers are employed from
falling below the wage level that would have prevailed in the
absence of H-2A employment;
``(iv) whether any changes are warranted in the current
methodologies for calculating the adverse effect wage rate
and the prevailing wage; and
``(v) recommendations for future wage protection under this
section.
``(H) Commission on wage standards.--
``(i) Establishment.--There is established the Commission
on Agricultural Wage Standards under the H-2A program (in
this subparagraph referred to as the `Commission').
``(ii) Composition.--The Commission shall consist of 10
members as follows:

``(I) Four representatives of agricultural employers and 1
representative of the Department of Agriculture, each
appointed by the Secretary of Agriculture.
``(II) Four representatives of agricultural workers and 1
representative of the Department of Labor, each appointed by
the Secretary of Labor.

``(iii) Functions.--The Commission shall conduct a study
that shall address--

``(I) whether the employment of H-2A or unauthorized aliens
in the United States agricultural workforce has depressed
United States farm worker wages below the levels that would
otherwise have prevailed if alien farm workers had not been
employed in the United States;
``(II) whether an adverse effect wage rate is necessary to
prevent wages of United States farm workers in occupations in
which H-2A workers are employed from falling below the wage
levels that would have prevailed in the absence of the
employment of H-2A workers in those occupations;
``(III) whether alternative wage standards, such as a
prevailing wage standard, would be sufficient to prevent
wages in occupations in which H-2A workers are employed from
falling below the wage level that would have prevailed in the
absence of H-2A employment;
``(IV) whether any changes are warranted in the current
methodologies for calculating the adverse effect wage rate
and the prevailing wage rate; and
``(V) recommendations for future wage protection under this
section.

``(iv) Final report.--Not later than December 31, 2009, the
Commission shall submit a report to the Congress setting
forth the findings of the study conducted under clause (iii).
``(v) Termination date.--The Commission shall terminate
upon submitting its final report.
``(4) Guarantee of employment.--
``(A) Offer to worker.--The employer shall guarantee to
offer the worker employment for the hourly equivalent of at
least \3/4\ of the work days of the total period of
employment, beginning with the first work day after the
arrival of the worker at the place of employment and ending
on the expiration date specified in the job offer. For
purposes of this subparagraph, the hourly equivalent means
the number of hours in the work days as stated in the job
offer and shall exclude the worker's Sabbath and Federal
holidays. If the employer affords the United States or H-2A
worker less employment than that required under this
paragraph, the employer shall pay such worker the amount
which the worker would have earned had the worker, in fact,
worked for the guaranteed number of hours.
``(B) Failure to work.--Any hours which the worker fails to
work, up to a maximum of the number of hours specified in the
job offer for a work day, when the worker has been offered an
opportunity to do so, and all hours of work actually
performed (including voluntary work in excess of the number
of hours specified in the job offer in a work day, on the
worker's Sabbath, or on Federal holidays) may be counted by
the employer in calculating whether the period of guaranteed
employment has been met.
``(C) Abandonment of employment, termination for cause.--If
the worker voluntarily abandons employment before the end of
the contract period, or is terminated for cause, the worker
is not entitled to the `\3/4\ guarantee' described in
subparagraph (A).
``(D) Contract impossibility.--If, before the expiration of
the period of employment specified in the job offer, the
services of the worker are no longer required for reasons
beyond the control of the employer due to any form of natural
disaster, including a flood, hurricane, freeze, earthquake,
fire, drought, plant or animal disease or pest infestation,
or regulatory drought, before the guarantee

[[Page S972]]

in subparagraph (A) is fulfilled, the employer may terminate
the worker's employment. In the event of such termination,
the employer shall fulfill the employment guarantee in
subparagraph (A) for the work days that have elapsed from the
first work day after the arrival of the worker to the
termination of employment. In such cases, the employer will
make efforts to transfer the United States worker to other
comparable employment acceptable to the worker. If such
transfer is not effected, the employer shall provide the
return transportation required in paragraph (2)(D).
``(5) Motor vehicle safety.--
``(A) Mode of transportation subject to coverage.--
``(i) In general.--Except as provided in clauses (iii) and
(iv), this subsection applies to any H-2A employer that uses
or causes to be used any vehicle to transport an H-2A worker
within the United States.
``(ii) Defined term.--In this paragraph, the term `uses or
causes to be used'--

``(I) applies only to transportation provided by an H-2A
employer to an H-2A worker, or by a farm labor contractor to
an H-2A worker at the request or direction of an H-2A
employer; and
``(II) does not apply to--

``(aa) transportation provided, or transportation
arrangements made, by an H-2A worker, unless the employer
specifically requested or arranged such transportation; or
``(bb) car pooling arrangements made by H-2A workers
themselves, using 1 of the workers' own vehicles, unless
specifically requested by the employer directly or through a
farm labor contractor.
``(iii) Clarification.--Providing a job offer to an H-2A
worker that causes the worker to travel to or from the place
of employment, or the payment or reimbursement of the
transportation costs of an H-2A worker by an H-2A employer,
shall not constitute an arrangement of, or participation in,
such transportation.
``(iv) Agricultural machinery and equipment excluded.--This
subsection does not apply to the transportation of an H-2A
worker on a tractor, combine, harvester, picker, or other
similar machinery or equipment while such worker is actually
engaged in the planting, cultivating, or harvesting of
agricultural commodities or the care of livestock or poultry
or engaged in transportation incidental thereto.
``(v) Common carriers excluded.--This subsection does not
apply to common carrier motor vehicle transportation in which
the provider holds itself out to the general public as
engaging in the transportation of passengers for hire and
holds a valid certification of authorization for such
purposes from an appropriate Federal, State, or local agency.
``(B) Applicability of standards, licensing, and insurance
requirements.--
``(i) In general.--When using, or causing to be used, any
vehicle for the purpose of providing transportation to which
this subparagraph applies, each employer shall--

``(I) ensure that each such vehicle conforms to the
standards prescribed by the Secretary of Labor under section
401(b) of the Migrant and Seasonal Agricultural Worker
Protection Act (29 U.S.C. 1841(b)) and other applicable
Federal and State safety standards;
``(II) ensure that each driver has a valid and appropriate
license, as provided by State law, to operate the vehicle;
and
``(III) have an insurance policy or a liability bond that
is in effect which insures the employer against liability for
damage to persons or property arising from the ownership,
operation, or causing to be operated, of any vehicle used to
transport any H-2A worker.

``(ii) Amount of insurance required.--The level of
insurance required shall be determined by the Secretary of
Labor pursuant to regulations to be issued under this
subsection.
``(iii) Effect of workers' compensation coverage.--If the
employer of any H-2A worker provides workers' compensation
coverage for such worker in the case of bodily injury or
death as provided by State law, the following adjustments in
the requirements of subparagraph (B)(i)(III) relating to
having an insurance policy or liability bond apply:

``(I) No insurance policy or liability bond shall be
required of the employer, if such workers are transported
only under circumstances for which there is coverage under
such State law.
``(II) An insurance policy or liability bond shall be
required of the employer for circumstances under which
coverage for the transportation of such workers is not
provided under such State law.

``(c) Compliance With Labor Laws.--An employer shall assure
that, except as otherwise provided in this section, the
employer will comply with all applicable Federal, State, and
local labor laws, including laws affecting migrant and
seasonal agricultural workers, with respect to all United
States workers and alien workers employed by the employer,
except that a violation of this assurance shall not
constitute a violation of the Migrant and Seasonal
Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.).
``(d) Copy of Job Offer.--The employer shall provide to the
worker, not later than the day the work commences, a copy of
the employer's application and job offer described in section
218(a), or, if the employer will require the worker to enter
into a separate employment contract covering the employment
in question, such separate employment contract.
``(e) Range Production of Livestock.--Nothing in this
section, section 218, or section 218B shall preclude the
Secretary of Labor and the Secretary from continuing to apply
special procedures and requirements to the admission and
employment of aliens in occupations involving the range
production of livestock.

``SEC. 218B. PROCEDURE FOR ADMISSION AND EXTENSION OF STAY OF
H-2A WORKERS.

``(a) Petitioning for Admission.--An employer, or an
association acting as an agent or joint employer for its
members, that seeks the admission into the United States of
an H-2A worker may file a petition with the Secretary. The
petition shall be accompanied by an accepted and currently
valid certification provided by the Secretary of Labor under
section 218(e)(2)(B) covering the petitioner.
``(b) Expedited Adjudication by the Secretary.--The
Secretary shall establish a procedure for expedited
adjudication of petitions filed under subsection (a) and
within 7 working days shall, by fax, cable, or other means
assuring expedited delivery, transmit a copy of notice of
action on the petition to the petitioner and, in the case of
approved petitions, to the appropriate immigration officer at
the port of entry or United States consulate (as the case may
be) where the petitioner has indicated that the alien
beneficiary (or beneficiaries) will apply for a visa or
admission to the United States.
``(c) Criteria for Admissibility.--
``(1) In general.--An H-2A worker shall be considered
admissible to the United States if the alien is otherwise
admissible under this section, section 218, and section 218A,
and the alien is not ineligible under paragraph (2).
``(2) Disqualification.--An alien shall be considered
inadmissible to the United States and ineligible for
nonimmigrant status under section 101(a)(15)(H)(ii)(a) if the
alien has, at any time during the past 5 years--
``(A) violated a material provision of this section,
including the requirement to promptly depart the United
States when the alien's authorized period of admission under
this section has expired; or
``(B) otherwise violated a term or condition of admission
into the United States as a nonimmigrant, including
overstaying the period of authorized admission as such a
nonimmigrant.
``(3) Waiver of ineligibility for unlawful presence.--
``(A) In general.--An alien who has not previously been
admitted into the United States pursuant to this section, and
who is otherwise eligible for admission in accordance with
paragraphs (1) and (2), shall not be deemed inadmissible by
virtue of section 212(a)(9)(B). If an alien described in the
preceding sentence is present in the United States, the alien
may apply from abroad for H-2A status, but may not be granted
that status in the United States.
``(B) Maintenance of waiver.--An alien provided an initial
waiver of ineligibility pursuant to subparagraph (A) shall
remain eligible for such waiver unless the alien violates the
terms of this section or again becomes ineligible under
section 212(a)(9)(B) by virtue of unlawful presence in the
United States after the date of the initial waiver of
ineligibility pursuant to subparagraph (A).
``(d) Period of Admission.--
``(1) In general.--The alien shall be admitted for the
period of employment in the application certified by the
Secretary of Labor pursuant to section 218(e)(2)(B), not to
exceed 10 months, supplemented by a period of not more than 1
week before the beginning of the period of employment for the
purpose of travel to the worksite and a period of 14 days
following the period of employment for the purpose of
departure or extension based on a subsequent offer of
employment, except that--
``(A) the alien is not authorized to be employed during
such 14-day period except in the employment for which the
alien was previously authorized; and
``(B) the total period of employment, including such 14-day
period, may not exceed 10 months.
``(2) Construction.--Nothing in this subsection shall limit
the authority of the Secretary to extend the stay of the
alien under any other provision of this Act.
``(e) Abandonment of Employment.--
``(1) In general.--An alien admitted or provided status
under section 101(a)(15)(H)(ii)(a) who abandons the
employment which was the basis for such admission or status
shall be considered to have failed to maintain nonimmigrant
status as an H-2A worker and shall depart the United States
or be subject to removal under section 237(a)(1)(C)(i).
``(2) Report by employer.--The employer, or association
acting as agent for the employer, shall notify the Secretary
not later than 7 days after an H-2A worker prematurely
abandons employment.
``(3) Removal by the secretary.--The Secretary shall
promptly remove from the United States any H-2A worker who
violates any term or condition of the worker's nonimmigrant
status.
``(4) Voluntary termination.--Notwithstanding paragraph
(1), an alien may voluntarily terminate his or her employment
if the alien promptly departs the United States upon
termination of such employment.
``(f) Replacement of Alien.--
``(1) In general.--Upon presentation of the notice to the
Secretary required by subsection (e)(2), the Secretary of
State shall

[[Page S973]]

promptly issue a visa to, and the Secretary shall admit into
the United States, an eligible alien designated by the
employer to replace an H-2A worker--
``(A) who abandons or prematurely terminates employment; or
``(B) whose employment is terminated after a United States
worker is employed pursuant to section 218(b)(2)(H)(iii), if
the United States worker voluntarily departs before the end
of the period of intended employment or if the employment
termination is for a lawful job-related reason.
``(2) Construction.--Nothing in this subsection is intended
to limit any preference required to be accorded United States
workers under any other provision of this Act.
``(g) Identification Document.--
``(1) In general.--Each alien authorized to be admitted
under section 101(a)(15)(H)(ii)(a) shall be provided an
identification and employment eligibility document to verify
eligibility for employment in the United States and verify
the alien's identity.
``(2) Requirements.--No identification and employment
eligibility document may be issued which does not meet the
following requirements:
``(A) The document shall be capable of reliably determining
whether--
``(i) the individual with the identification and employment
eligibility document whose eligibility is being verified is
in fact eligible for employment;
``(ii) the individual whose eligibility is being verified
is claiming the identity of another person; and
``(iii) the individual whose eligibility is being verified
is authorized to be admitted into, and employed in, the
United States as an H-2A worker.
``(B) The document shall be in a form that is resistant to
counterfeiting and to tampering.
``(C) The document shall--
``(i) be compatible with other databases of the Secretary
for the purpose of excluding aliens from benefits for which
they are not eligible and determining whether the alien is
unlawfully present in the United States; and
``(ii) be compatible with law enforcement databases to
determine if the alien has been convicted of criminal
offenses.
``(h) Extension of Stay of H-2A Aliens in the United
States.--
``(1) Extension of stay.--If an employer seeks approval to
employ an H-2A alien who is lawfully present in the United
States, the petition filed by the employer or an association
pursuant to subsection (a), shall request an extension of the
alien's stay and a change in the alien's employment.
``(2) Limitation on filing a petition for extension of
stay.--A petition may not be filed for an extension of an
alien's stay--
``(A) for a period of more than 10 months; or
``(B) to a date that is more than 3 years after the date of
the alien's last admission to the United States under this
section.
``(3) Work authorization upon filing a petition for
extension of stay.--
``(A) In general.--An alien who is lawfully present in the
United States may commence the employment described in a
petition under paragraph (1) on the date on which the
petition is filed.
``(B) Definition.--For purposes of subparagraph (A), the
term `file' means sending the petition by certified mail via
the United States Postal Service, return receipt requested,
or delivered by guaranteed commercial delivery which will
provide the employer with a documented acknowledgment of the
date of receipt of the petition.
``(C) Handling of petition.--The employer shall provide a
copy of the employer's petition to the alien, who shall keep
the petition with the alien's identification and employment
eligibility document as evidence that the petition has been
filed and that the alien is authorized to work in the United
States.
``(D) Approval of petition.--Upon approval of a petition
for an extension of stay or change in the alien's authorized
employment, the Secretary shall provide a new or updated
employment eligibility document to the alien indicating the
new validity date, after which the alien is not required to
retain a copy of the petition.
``(4) Limitation on employment authorization of aliens
without valid identification and employment eligibility
document.--An expired identification and employment
eligibility document, together with a copy of a petition for
extension of stay or change in the alien's authorized
employment that complies with the requirements of paragraph
(1), shall constitute a valid work authorization document for
a period of not more than 60 days beginning on the date on
which such petition is filed, after which time only a
currently valid identification and employment eligibility
document shall be acceptable.
``(5) Limitation on an individual's stay in status.--
``(A) Maximum period.--The maximum continuous period of
authorized status as an H-2A worker (including any
extensions) is 3 years.
``(B) Requirement to remain outside the united states.--
``(i) In general.--Subject to clause (ii), in the case of
an alien outside the United States whose period of authorized
status as an H-2A worker (including any extensions) has
expired, the alien may not again apply for admission to the
United States as an H-2A worker unless the alien has remained
outside the United States for a continuous period equal to at
least \1/5\ the duration of the alien's previous period of
authorized status as an H-2A worker (including any
extensions).
``(ii) Exception.--Clause (i) shall not apply in the case
of an alien if the alien's period of authorized status as an
H-2A worker (including any extensions) was for a period of
not more than 10 months and such alien has been outside the
United States for at least 2 months during the 12 months
preceding the date the alien again is applying for admission
to the United States as an H-2A worker.
``(i) Special Rules for Aliens Employed as Sheepherders,
Goat Herders, or Dairy Workers.--Notwithstanding any
provision of the Agricultural Job Opportunities, Benefits,
and Security Act of 2007, an alien admitted under section
101(a)(15)(H)(ii)(a) for employment as a sheepherder, goat
herder, or dairy worker--
``(1) may be admitted for an initial period of 12 months;
``(2) subject to subsection (j)(5), may have such initial
period of admission extended for a period of up to 3 years;
and
``(3) shall not be subject to the requirements of
subsection (h)(5) (relating to periods of absence from the
United States).
``(j) Adjustment to Lawful Permanent Resident Status for
Aliens Employed as Sheepherders, Goat Herders, or Dairy
Workers.--
``(1) Eligible alien.--For purposes of this subsection, the
term `eligible alien' means an alien--
``(A) having nonimmigrant status under section
101(a)(15)(H)(ii)(a) based on employment as a sheepherder,
goat herder, or dairy worker;
``(B) who has maintained such nonimmigrant status in the
United States for a cumulative total of 36 months (excluding
any period of absence from the United States); and
``(C) who is seeking to receive an immigrant visa under
section 203(b)(3)(A)(iii).
``(2) Classification petition.--In the case of an eligible
alien, the petition under section 204 for classification
under section 203(b)(3)(A)(iii) may be filed by--
``(A) the alien's employer on behalf of the eligible alien;
or
``(B) the eligible alien.
``(3) No labor certification required.--Notwithstanding
section 203(b)(3)(C), no determination under section
212(a)(5)(A) is required with respect to an immigrant visa
described in paragraph (1)(C) for an eligible alien.
``(4) Effect of petition.--The filing of a petition
described in paragraph (2) or an application for adjustment
of status based on the approval of such a petition shall not
constitute evidence of an alien's ineligibility for
nonimmigrant status under section 101(a)(15)(H)(ii)(a).
``(5) Extension of stay.--The Secretary shall extend the
stay of an eligible alien having a pending or approved
classification petition described in paragraph (2) in 1-year
increments until a final determination is made on the alien's
eligibility for adjustment of status to that of an alien
lawfully admitted for permanent residence.
``(6) Construction.--Nothing in this subsection shall be
construed to prevent an eligible alien from seeking
adjustment of status in accordance with any other provision
of law.

``SEC. 218C. WORKER PROTECTIONS AND LABOR STANDARDS
ENFORCEMENT.

``(a) Enforcement Authority.--
``(1) Investigation of complaints.--
``(A) Aggrieved person or third-party complaints.--The
Secretary of Labor shall establish a process for the receipt,
investigation, and disposition of complaints respecting a
petitioner's failure to meet a condition specified in section
218(b), or an employer's misrepresentation of material facts
in an application under section 218(a). Complaints may be
filed by any aggrieved person or organization (including
bargaining representatives). No investigation or hearing
shall be conducted on a complaint concerning such a failure
or misrepresentation unless the complaint was filed not later
than 12 months after the date of the failure, or
misrepresentation, respectively. The Secretary of Labor shall
conduct an investigation under this subparagraph if there is
reasonable cause to believe that such a failure or
misrepresentation has occurred.
``(B) Determination on complaint.--Under such process, the
Secretary of Labor shall provide, within 30 days after the
date such a complaint is filed, for a determination as to
whether or not a reasonable basis exists to make a finding
described in subparagraph (C), (D), (E), or (G). If the
Secretary of Labor determines that such a reasonable basis
exists, the Secretary of Labor shall provide for notice of
such determination to the interested parties and an
opportunity for a hearing on the complaint, in accordance
with section 556 of title 5, United States Code, within 60
days after the date of the determination. If such a hearing
is requested, the Secretary of Labor shall make a finding
concerning the matter not later than 60 days after the date
of the hearing. In the case of similar complaints respecting
the same applicant, the Secretary of Labor may consolidate
the hearings under this subparagraph on such complaints.
``(C) Failures to meet conditions.--If the Secretary of
Labor finds, after notice and opportunity for a hearing, a
failure to meet a condition of paragraph (1)(A), (1)(B),
(1)(D), (1)(F), (2)(A), (2)(B), or (2)(G) of section 218(b),
a substantial failure to meet a condition of paragraph
(1)(C), (1)(E), (2)(C), (2)(D),

[[Page S974]]

(2)(E), or (2)(H) of section 218(b), or a material
misrepresentation of fact in an application under section
218(a)--
``(i) the Secretary of Labor shall notify the Secretary of
such finding and may, in addition, impose such other
administrative remedies (including civil money penalties in
an amount not to exceed $1,000 per violation) as the
Secretary of Labor determines to be appropriate; and
``(ii) the Secretary may disqualify the employer from the
employment of aliens described in section
101(a)(15)(H)(ii)(a) for a period of 1 year.
``(D) Willful failures and willful misrepresentations.--If
the Secretary of Labor finds, after notice and opportunity
for hearing, a willful failure to meet a condition of section
218(b), a willful misrepresentation of a material fact in an
application under section 218(a), or a violation of
subsection (d)(1)--
``(i) the Secretary of Labor shall notify the Secretary of
such finding and may, in addition, impose such other
administrative remedies (including civil money penalties in
an amount not to exceed $5,000 per violation) as the
Secretary of Labor determines to be appropriate;
``(ii) the Secretary of Labor may seek appropriate legal or
equitable relief to effectuate the purposes of subsection
(d)(1); and
``(iii) the Secretary may disqualify the employer from the
employment of H-2A workers for a period of 2 years.
``(E) Displacement of united states workers.--If the
Secretary of Labor finds, after notice and opportunity for
hearing, a willful failure to meet a condition of section
218(b) or a willful misrepresentation of a material fact in
an application under section 218(a), in the course of which
failure or misrepresentation the employer displaced a United
States worker employed by the employer during the period of
employment on the employer's application under section 218(a)
or during the period of 30 days preceding such period of
employment--
``(i) the Secretary of Labor shall notify the Secretary of
such finding and may, in addition, impose such other
administrative remedies (including civil money penalties in
an amount not to exceed $15,000 per violation) as the
Secretary of Labor determines to be appropriate; and
``(ii) the Secretary may disqualify the employer from the
employment of H-2A workers for a period of 3 years.
``(F) Limitations on civil money penalties.--The Secretary
of Labor shall not impose total civil money penalties with
respect to an application under section 218(a) in excess of
$90,000.
``(G) Failures to pay wages or required benefits.--If the
Secretary of Labor finds, after notice and opportunity for a
hearing, that the employer has failed to pay the wages, or
provide the housing allowance, transportation, subsistence
reimbursement, or guarantee of employment, required under
section 218A(b), the Secretary of Labor shall assess payment
of back wages, or other required benefits, due any United
States worker or H-2A worker employed by the employer in the
specific employment in question. The back wages or other
required benefits under section 218A(b) shall be equal to the
difference between the amount that should have been paid and
the amount that actually was paid to such worker.
``(2) Statutory construction.--Nothing in this section
shall be construed as limiting the authority of the Secretary
of Labor to conduct any compliance investigation under any
other labor law, including any law affecting migrant and
seasonal agricultural workers, or, in the absence of a
complaint under this section, under section 218 or 218A.
``(b) Rights Enforceable by Private Right of Action.--H-2A
workers may enforce the following rights through the private
right of action provided in subsection (c), and no other
right of action shall exist under Federal or State law to
enforce such rights:
``(1) The providing of housing or a housing allowance as
required under section 218A(b)(1).
``(2) The reimbursement of transportation as required under
section 218A(b)(2).
``(3) The payment of wages required under section
218A(b)(3) when due.
``(4) The benefits and material terms and conditions of
employment expressly provided in the job offer described in
section 218(a)(2), not including the assurance to comply with
other Federal, State, and local labor laws described in
section 218A(c), compliance with which shall be governed by
the provisions of such laws.
``(5) The guarantee of employment required under section
218A(b)(4).
``(6) The motor vehicle safety requirements under section
218A(b)(5).
``(7) The prohibition of discrimination under subsection
(d)(2).
``(c) Private Right of Action.--
``(1) Mediation.--Upon the filing of a complaint by an H-2A
worker aggrieved by a violation of rights enforceable under
subsection (b), and within 60 days of the filing of proof of
service of the complaint, a party to the action may file a
request with the Federal Mediation and Conciliation Service
to assist the parties in reaching a satisfactory resolution
of all issues involving all parties to the dispute. Upon a
filing of such request and giving of notice to the parties,
the parties shall attempt mediation within the period
specified in subparagraph (B).
``(A) Mediation services.--The Federal Mediation and
Conciliation Service shall be available to assist in
resolving disputes arising under subsection (b) between H-2A
workers and agricultural employers without charge to the
parties.
``(B) 90-day limit.--The Federal Mediation and Conciliation
Service may conduct mediation or other nonbinding dispute
resolution activities for a period not to exceed 90 days
beginning on the date on which the Federal Mediation and
Conciliation Service receives the request for assistance
unless the parties agree to an extension of this period of
time.
``(C) Authorization.--
``(i) In general.--Subject to clause (ii), there are
authorized to be appropriated to the Federal Mediation and
Conciliation Service $500,000 for each fiscal year to carry
out this section.
``(ii) Mediation.--Notwithstanding any other provision of
law, the Director of the Federal Mediation and Conciliation
Service is authorized to conduct the mediation or other
dispute resolution activities from any other appropriated
funds available to the Director and to reimburse such
appropriated funds when the funds are appropriated pursuant
to this authorization, such reimbursement to be credited to
appropriations currently available at the time of receipt.
``(2) Maintenance of civil action in district court by
aggrieved person.--An H-2A worker aggrieved by a violation of
rights enforceable under subsection (b) by an agricultural
employer or other person may file suit in any district court
of the United States having jurisdiction over the parties,
without regard to the amount in controversy, without regard
to the citizenship of the parties, and without regard to the
exhaustion of any alternative administrative remedies under
this Act, not later than 3 years after the date the violation
occurs.
``(3) Election.--An H-2A worker who has filed an
administrative complaint with the Secretary of Labor may not
maintain a civil action under paragraph (2) unless a
complaint based on the same violation filed with the
Secretary of Labor under subsection (a)(1) is withdrawn
before the filing of such action, in which case the rights
and remedies available under this subsection shall be
exclusive.
``(4) Preemption of state contract rights.--Nothing in this
Act shall be construed to diminish the rights and remedies of
an H-2A worker under any other Federal or State law or
regulation or under any collective bargaining agreement,
except that no court or administrative action shall be
available under any State contract law to enforce the rights
created by this Act.
``(5) Waiver of rights prohibited.--Agreements by employees
purporting to waive or modify their rights under this Act
shall be void as contrary to public policy, except that a
waiver or modification of the rights or obligations in favor
of the Secretary of Labor shall be valid for purposes of the
enforcement of this Act. The preceding sentence may not be
construed to prohibit agreements to settle private disputes
or litigation.
``(6) Award of damages or other equitable relief.--
``(A) If the court finds that the respondent has
intentionally violated any of the rights enforceable under
subsection (b), it shall award actual damages, if any, or
equitable relief.
``(B) Any civil action brought under this section shall be
subject to appeal as provided in chapter 83 of title 28,
United States Code.
``(7) Workers' compensation benefits; exclusive remedy.--
``(A) Notwithstanding any other provision of this section,
where a State's workers' compensation law is applicable and
coverage is provided for an H-2A worker, the workers'
compensation benefits shall be the exclusive remedy for the
loss of such worker under this section in the case of bodily
injury or death in accordance with such State's workers'
compensation law.
``(B) The exclusive remedy prescribed in subparagraph (A)
precludes the recovery under paragraph (6) of actual damages
for loss from an injury or death but does not preclude other
equitable relief, except that such relief shall not include
back or front pay or in any manner, directly or indirectly,
expand or otherwise alter or affect--
``(i) a recovery under a State workers' compensation law;
or
``(ii) rights conferred under a State workers' compensation
law.
``(8) Tolling of statute of limitations.--If it is
determined under a State workers' compensation law that the
workers' compensation law is not applicable to a claim for
bodily injury or death of an H-2A worker, the statute of
limitations for bringing an action for actual damages for
such injury or death under subsection (c) shall be tolled for
the period during which the claim for such injury or death
under such State workers' compensation law was pending. The
statute of limitations for an action for actual damages or
other equitable relief arising out of the same transaction or
occurrence as the injury or death of the H-2A worker shall be
tolled for the period during which the claim for such injury
or death was pending under the State workers' compensation
law.
``(9) Preclusive effect.--Any settlement by an H-2A worker
and an H-2A employer or any person reached through the
mediation process required under subsection (c)(1) shall
preclude any right of action arising out of the same facts
between the parties in any Federal or State court or
administrative proceeding, unless specifically provided
otherwise in the settlement agreement.

[[Page S975]]

``(10) Settlements.--Any settlement by the Secretary of
Labor with an H-2A employer on behalf of an H-2A worker of a
complaint filed with the Secretary of Labor under this
section or any finding by the Secretary of Labor under
subsection (a)(1)(B) shall preclude any right of action
arising out of the same facts between the parties under any
Federal or State court or administrative proceeding, unless
specifically provided otherwise in the settlement agreement.
``(d) Discrimination Prohibited.--
``(1) In general.--It is a violation of this subsection for
any person who has filed an application under section 218(a),
to intimidate, threaten, restrain, coerce, blacklist,
discharge, or in any other manner discriminate against an
employee (which term, for purposes of this subsection,
includes a former employee and an applicant for employment)
because the employee has disclosed information to the
employer, or to any other person, that the employee
reasonably believes evidences a violation of section 218 or
218A or any rule or regulation pertaining to section 218 or
218A, or because the employee cooperates or seeks to
cooperate in an investigation or other proceeding concerning
the employer's compliance with the requirements of section
218 or 218A or any rule or regulation pertaining to either of
such sections.
``(2) Discrimination against h-2a workers.--It is a
violation of this subsection for any person who has filed an
application under section 218(a), to intimidate, threaten,
restrain, coerce, blacklist, discharge, or in any manner
discriminate against an H-2A employee because such worker
has, with just cause, filed a complaint with the Secretary of
Labor regarding a denial of the rights enumerated and
enforceable under subsection (b) or instituted, or caused to
be instituted, a private right of action under subsection (c)
regarding the denial of the rights enumerated under
subsection (b), or has testified or is about to testify in
any court proceeding brought under subsection (c).
``(e) Authorization To Seek Other Appropriate Employment.--
The Secretary of Labor and the Secretary shall establish a
process under which an H-2A worker who files a complaint
regarding a violation of subsection (d) and is otherwise
eligible to remain and work in the United States may be
allowed to seek other appropriate employment in the United
States for a period not to exceed the maximum period of stay
authorized for such nonimmigrant classification.
``(f) Role of Associations.--
``(1) Violation by a member of an association.--An employer
on whose behalf an application is filed by an association
acting as its agent is fully responsible for such
application, and for complying with the terms and conditions
of sections 218 and 218A, as though the employer had filed
the application itself. If such an employer is determined,
under this section, to have committed a violation, the
penalty for such violation shall apply only to that member of
the association unless the Secretary of Labor determines that
the association or other member participated in, had
knowledge, or reason to know, of the violation, in which case
the penalty shall be invoked against the association or other
association member as well.
``(2) Violations by an association acting as an employer.--
If an association filing an application as a sole or joint
employer is determined to have committed a violation under
this section, the penalty for such violation shall apply only
to the association unless the Secretary of Labor determines
that an association member or members participated in or had
knowledge, or reason to know of the violation, in which case
the penalty shall be invoked against the association member
or members as well.

``SEC. 218D. DEFINITIONS.

``For purposes of this section and section 218, 218A, 218B,
and 218C:
``(1) Agricultural employment.--The term `agricultural
employment' means any service or activity that is considered
to be agricultural under section 3(f) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural
labor under section 3121(g) of the Internal Revenue Code of
1986 or the performance of agricultural labor or services
described in section 101(a)(15)(H)(ii)(a).
``(2) Bona fide union.--The term `bona fide union' means
any organization in which employees participate and which
exists for the purpose of dealing with employers concerning
grievances, labor disputes, wages, rates of pay, hours of
employment, or other terms and conditions of work for
agricultural employees. Such term does not include an
organization formed, created, administered, supported,
dominated, financed, or controlled by an employer or employer
association or its agents or representatives.
``(3) Displace.--The term `displace', in the case of an
application with respect to 1 or more H-2A workers by an
employer, means laying off a United States worker from a job
for which the H-2A worker or workers is or are sought.
``(4) Eligible.--The term `eligible', when used with
respect to an individual, means an individual who is not an
unauthorized alien (as defined in section 274A).
``(5) Employer.--The term `employer' means any person or
entity, including any farm labor contractor and any
agricultural association, that employs workers in
agricultural employment.
``(6) H-2A employer.--The term `H-2A employer' means an
employer who seeks to hire 1 or more nonimmigrant aliens
described in section 101(a)(15)(H)(ii)(a).
``(7) H-2A worker.--The term `H-2A worker' means a
nonimmigrant described in section 101(a)(15)(H)(ii)(a).
``(8) Job opportunity.--The term `job opportunity' means a
job opening for temporary or seasonal full-time employment at
a place in the United States to which United States workers
can be referred.
``(9) Laying off.--
``(A) In general.--The term `laying off', with respect to a
worker--
``(i) means to cause the worker's loss of employment, other
than through a discharge for inadequate performance,
violation of workplace rules, cause, voluntary departure,
voluntary retirement, contract impossibility (as described in
section 218A(b)(4)(D)), or temporary suspension of employment
due to weather, markets, or other temporary conditions; but
``(ii) does not include any situation in which the worker
is offered, as an alternative to such loss of employment, a
similar employment opportunity with the same employer (or, in
the case of a placement of a worker with another employer
under section 218(b)(2)(E), with either employer described in
such section) at equivalent or higher compensation and
benefits than the position from which the employee was
discharged, regardless of whether or not the employee accepts
the offer.
``(B) Statutory construction.--Nothing in this paragraph is
intended to limit an employee's rights under a collective
bargaining agreement or other employment contract.
``(10) Regulatory drought.--The term `regulatory drought'
means a decision subsequent to the filing of the application
under section 218 by an entity not under the control of the
employer making such filing which restricts the employer's
access to water for irrigation purposes and reduces or limits
the employer's ability to produce an agricultural commodity,
thereby reducing the need for labor.
``(11) Seasonal.--Labor is performed on a `seasonal' basis
if--
``(A) ordinarily, it pertains to or is of the kind
exclusively performed at certain seasons or periods of the
year; and
``(B) from its nature, it may not be continuous or carried
on throughout the year.
``(12) Secretary.--Except as otherwise provided, the term
`Secretary' means the Secretary of Homeland Security.
``(13) Temporary.--A worker is employed on a `temporary'
basis where the employment is intended not to exceed 10
months.
``(14) United states worker.--The term `United States
worker' means any worker, whether a national of the United
States, an alien lawfully admitted for permanent residence,
or any other alien, who is authorized to work in the job
opportunity within the United States, except an alien
admitted or otherwise provided status under section
101(a)(15)(H)(ii)(a).''.
(b) Table of Contents.--The table of contents of the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by striking the item relating to section 218 and
inserting the following:

``Sec. 218. H-2A employer applications.
``Sec. 218A. H-2A employment requirements.
``Sec. 218B. Procedure for admission and extension of stay of H-2A
workers.
``Sec. 218C. Worker protections and labor standards enforcement.
``Sec. 218D. Definitions.''.

Subtitle C--Miscellaneous Provisions

SEC. 241. DETERMINATION AND USE OF USER FEES.

(a) Schedule of Fees.--The Secretary shall establish and
periodically adjust a schedule of fees for the employment of
aliens pursuant to the amendment made by section 231(a) of
this Act and a collection process for such fees from
employers. Such fees shall be the only fees chargeable to
employers for services provided under such amendment.
(b) Determination of Schedule.--
(1) In general.--The schedule under subsection (a) shall
reflect a fee rate based on the number of job opportunities
indicated in the employer's application under section 218 of
the Immigration and Nationality Act, as amended by section
231 of this Act, and sufficient to provide for the direct
costs of providing services related to an employer's
authorization to employ aliens pursuant to the amendment made
by section 231(a) of this Act, to include the certification
of eligible employers, the issuance of documentation, and the
admission of eligible aliens.
(2) Procedure.--
(A) In general.--In establishing and adjusting such a
schedule, the Secretary shall comply with Federal cost
accounting and fee setting standards.
(B) Publication and comment.--The Secretary shall publish
in the Federal Register an initial fee schedule and
associated collection process and the cost data or estimates
upon which such fee schedule is based, and any subsequent
amendments thereto, pursuant to which public comment shall be
sought and a final rule issued.
(c) Use of Proceeds.--Notwithstanding any other provision
of law, all proceeds resulting from the payment of the fees
pursuant to the amendment made by section 231(a) of this Act
shall be available without further appropriation and shall
remain available without fiscal year limitation to reimburse
the Secretary, the Secretary of State, and the Secretary of
Labor for the costs of carrying out sections 218 and 218B of
the Immigration and Nationality Act, as amended and

[[Page S976]]

added, respectively, by section 231 of this Act, and the
provisions of this title.

SEC. 242. REGULATIONS.

(a) Requirement for the Secretary to Consult.--The
Secretary shall consult with the Secretary of Labor and the
Secretary of Agriculture during the promulgation of all
regulations to implement the duties of the Secretary under
this title and the amendments made by this title.
(b) Requirement for the Secretary of State to Consult.--The
Secretary of State shall consult with the Secretary, the
Secretary of Labor, and the Secretary of Agriculture on all
regulations to implement the duties of the Secretary of State
under this title and the amendments made by this title.
(c) Requirement for the Secretary of Labor to Consult.--The
Secretary of Labor shall consult with the Secretary of
Agriculture and the Secretary on all regulations to implement
the duties of the Secretary of Labor under this title and the
amendments made by this title.
(d) Deadline for Issuance of Regulations.--All regulations
to implement the duties of the Secretary, the Secretary of
State, and the Secretary of Labor created under sections 218,
218A, 218B, 218C, and 218D of the Immigration and Nationality
Act, as amended or added by section 231 of this Act, shall
take effect on the effective date of section 231 and shall be
issued not later than 1 year after the date of enactment of
this Act.

SEC. 243. REPORTS TO CONGRESS.

(a) Annual Report.--Not later than September 30 of each
year, the Secretary shall submit a report to Congress that
identifies, for the previous year--
(1) the number of job opportunities approved for employment
of aliens admitted under section 101(a)(15)(H)(ii)(a) of the
Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(ii)(a)), and the number of workers actually
admitted, disaggregated by State and by occupation;
(2) the number of such aliens reported to have abandoned
employment pursuant to subsection 218B(e)(2) of such Act;
(3) the number of such aliens who departed the United
States within the period specified in subsection 218B(d) of
such Act;
(4) the number of aliens who applied for adjustment of
status pursuant to section 211(a);
(5) the number of such aliens whose status was adjusted
under section 211(a);
(6) the number of aliens who applied for permanent
residence pursuant to section 213(c); and
(7) the number of such aliens who were approved for
permanent residence pursuant section 213(c).
(b) Implementation Report.--Not later than 180 days after
the date of the enactment of this Act, the Secretary shall
prepare and submit to Congress a report that describes the
measures being taken and the progress made in implementing
this Act.

SEC. 244. EFFECTIVE DATE.

Except as otherwise provided, sections 231 and 241 shall
take effect 1 year after the date of the enactment of this
Act.
______

SA 168. Mrs. FEINSTEIN (for herself and Mr. Craig) submitted an
amendment intended to be proposed to amendment SA 117 submitted by Mr.
Chambliss (for himself, Mr. Burr, and Mr. Isakson) and intended to be
proposed to the bill H.R. 2, to amend the Fair Labor Standards Act of
1938 to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

TITLE II--AGJOBS ACT OF 2007

SEC. 201. SHORT TITLE.

This title may be cited as the ``Agricultural Job
Opportunities, Benefits, and Security Act of 2007'' or the
``AgJOBS Act of 2007''.

SEC. 202. DEFINITIONS.

In this title:
(1) Agricultural employment.--The term ``agricultural
employment'' means any service or activity that is considered
to be agricultural under section 3(f) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural
labor under section 3121(g) of the Internal Revenue Code of
1986 or the performance of agricultural labor or services
described in section 101(a)(15)(H)(ii)(a) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(15)(H)(ii)(a)).
(2) Blue card status.--The term ``blue card status'' means
the status of an alien who has been lawfully admitted into
the United States for temporary residence under section
211(a).
(3) Department.--The term ``Department'' means the
Department of Homeland Security.
(4) Employer.--The term ``employer'' means any person or
entity, including any farm labor contractor and any
agricultural association, that employs workers in
agricultural employment.
(5) Secretary.--Except as otherwise provided, the term
``Secretary'' means the Secretary of Homeland Security.
(6) Temporary.--A worker is employed on a ``temporary''
basis when the employment is intended not to exceed 10
months.
(7) Work day.--The term ``work day'' means any day in which
the individual is employed 5.75 or more hours in agricultural
employment.

Subtitle A--Pilot Program for Earned Status Adjustment of Agricultural
Workers

PART I--BLUE CARD STATUS

SEC. 211. REQUIREMENTS FOR BLUE CARD STATUS.

(a) Requirement to Grant Blue Card Status.--Notwithstanding
any other provision of law, the Secretary shall, pursuant to
the requirements of this section, grant blue card status to
an alien who qualifies under this section if the Secretary
determines that the alien--
(1) has performed agricultural employment in the United
States for at least 863 hours or 150 work days during the 24-
month period ending on December 31, 2006;
(2) applied for such status during the 18-month application
period beginning on the first day of the seventh month that
begins after the date of enactment of this Act;
(3) is otherwise admissible to the United States under
section 212 of the Immigration and Nationality Act (8 U.S.C.
1182), except as otherwise provided under section 215(b); and
(4) has not been convicted of any felony or a misdemeanor,
an element of which involves bodily injury, threat of serious
bodily injury, or harm to property in excess of $500.
(b) Authorized Travel.--An alien who is granted blue card
status is authorized to travel outside the United States
(including commuting to the United States from a residence in
a foreign country) in the same manner as an alien lawfully
admitted for permanent residence.
(c) Authorized Employment.--The Secretary shall provide an
alien who is granted blue card status an employment
authorized endorsement or other appropriate work permit, in
the same manner as an alien lawfully admitted for permanent
residence.
(d) Termination of Blue Card Status.--
(1) In general.--The Secretary may terminate blue card
status granted to an alien under this section only if the
Secretary determines that the alien is deportable.
(2) Grounds for termination of blue card status.--Before
any alien becomes eligible for adjustment of status under
section 213, the Secretary may deny adjustment to permanent
resident status and provide for termination of the blue card
status granted such alien under paragraph (1) if--
(A) the Secretary finds, by a preponderance of the
evidence, that the adjustment to blue card status was the
result of fraud or willful misrepresentation (as described in
section 212(a)(6)(C)(i) of the Immigration and Nationality
Act (8 U.S.C. 1182(a)(6)(C)(i)); or
(B) the alien--
(i) commits an act that makes the alien inadmissible to the
United States as an immigrant, except as provided under
section 215(b);
(ii) is convicted of a felony or 3 or more misdemeanors
committed in the United States;
(iii) is convicted of an offense, an element of which
involves bodily injury, threat of serious bodily injury, or
harm to property in excess of $500; or
(iv) fails to perform the agricultural employment required
under section 213(a)(1)(A) unless the alien was unable to
work in agricultural employment due to the extraordinary
circumstances described in section 213(a)(3).
(e) Record of Employment.--
(1) In general.--Each employer of an alien granted blue
card status under this section shall annually--
(A) provide a written record of employment to the alien;
and
(B) provide a copy of such record to the Secretary.
(2) Sunset.--The obligation under paragraph (1) shall
terminate on the date that is 6 years after the date of the
enactment of this Act.
(f) Required Features of Identity Card.--The Secretary
shall provide each alien granted blue card status, and the
spouse and any child of each such alien residing in the
United States, with a card that contains--
(1) an encrypted, machine-readable, electronic
identification strip that is unique to the alien to whom the
card is issued;
(2) biometric identifiers, including fingerprints and a
digital photograph; and
(3) physical security features designed to prevent
tampering, counterfeiting, or duplication of the card for
fraudulent purposes.
(g) Fine.--An alien granted blue card status shall pay a
fine of $100 to the Secretary.
(h) Maximum Number.--The Secretary may not issue more than
1,500,000 blue cards during the 5-year period beginning on
the date of the enactment of this Act.

SEC. 212. TREATMENT OF ALIENS GRANTED BLUE CARD STATUS.

(a) In General.--Except as otherwise provided under this
section, an alien granted blue card status shall be
considered to be an alien lawfully admitted for permanent
residence for purposes of any law other than any provision of
the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(b) Delayed Eligibility for Certain Federal Public
Benefits.--An alien granted blue card status shall not be
eligible, by reason of such status, for any form of
assistance or benefit described in section 403(a) of the
Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (8 U.S.C. 1613(a)) until 5 years after the date
on which the alien is granted an adjustment of status under
section 213.
(c) Terms of Employment.--
(1) Prohibition.--No alien granted blue card status may be
terminated from employment by any employer during the period
of blue card status except for just cause.

[[Page S977]]

(2) Treatment of complaints.--
(A) Establishment of process.--The Secretary shall
establish a process for the receipt, initial review, and
disposition of complaints by aliens granted blue card status
who allege that they have been terminated without just cause.
No proceeding shall be conducted under this paragraph with
respect to a termination unless the Secretary determines that
the complaint was filed not later than 6 months after the
date of the termination.
(B) Initiation of arbitration.--If the Secretary finds that
an alien has filed a complaint in accordance with
subparagraph (A) and there is reasonable cause to believe
that the alien was terminated from employment without just
cause, the Secretary shall initiate binding arbitration
proceedings by requesting the Federal Mediation and
Conciliation Service to appoint a mutually agreeable
arbitrator from the roster of arbitrators maintained by such
Service for the geographical area in which the employer is
located. The procedures and rules of such Service shall be
applicable to the selection of such arbitrator and to such
arbitration proceedings. The Secretary shall pay the fee and
expenses of the arbitrator, subject to the availability of
appropriations for such purpose.
(C) Arbitration proceedings.--The arbitrator shall conduct
the proceeding under this paragraph in accordance with the
policies and procedures promulgated by the American
Arbitration Association applicable to private arbitration of
employment disputes. The arbitrator shall make findings
respecting whether the termination was for just cause. The
arbitrator may not find that the termination was for just
cause unless the employer so demonstrates by a preponderance
of the evidence. If the arbitrator finds that the termination
was not for just cause, the arbitrator shall make a specific
finding of the number of days or hours of work lost by the
employee as a result of the termination. The arbitrator shall
have no authority to order any other remedy, including
reinstatement, back pay, or front pay to the affected
employee. Not later than 30 days after the date of the
conclusion of the arbitration proceeding, the arbitrator
shall transmit the findings in the form of a written opinion
to the parties to the arbitration and the Secretary. Such
findings shall be final and conclusive, and no official or
court of the United States shall have the power or
jurisdiction to review any such findings.
(D) Effect of arbitration findings.--If the Secretary
receives a finding of an arbitrator that an employer has
terminated the employment of an alien who is granted blue
card status without just cause, the Secretary shall credit
the alien for the number of days or hours of work not
performed during such period of termination for the purpose
of determining if the alien meets the qualifying employment
requirement of section 213(a).
(E) Treatment of attorney's fees.--Each party to an
arbitration under this paragraph shall bear the cost of their
own attorney's fees for the arbitration.
(F) Nonexclusive remedy.--The complaint process provided
for in this paragraph is in addition to any other rights an
employee may have in accordance with applicable law.
(G) Effect on other actions or proceedings.--Any finding of
fact or law, judgment, conclusion, or final order made by an
arbitrator in the proceeding before the Secretary shall not
be conclusive or binding in any separate or subsequent action
or proceeding between the employee and the employee's current
or prior employer brought before an arbitrator,
administrative agency, court, or judge of any State or the
United States, regardless of whether the prior action was
between the same or related parties or involved the same
facts, except that the arbitrator's specific finding of the
number of days or hours of work lost by the employee as a
result of the employment termination may be referred to the
Secretary pursuant to subparagraph (D).
(3) Civil penalties.--
(A) In general.--If the Secretary finds, after notice and
opportunity for a hearing, that an employer of an alien
granted blue card status has failed to provide the record of
employment required under section 211(e) or has provided a
false statement of material fact in such a record, the
employer shall be subject to a civil money penalty in an
amount not to exceed $1,000 per violation.
(B) Limitation.--The penalty applicable under subparagraph
(A) for failure to provide records shall not apply unless the
alien has provided the employer with evidence of employment
authorization granted under this section.

SEC. 213. ADJUSTMENT TO PERMANENT RESIDENCE.

(a) In General.--Except as provided in subsection (b), the
Secretary shall adjust the status of an alien granted blue
card status to that of an alien lawfully admitted for
permanent residence if the Secretary determines that the
following requirements are satisfied:
(1) Qualifying employment.--
(A) In general.--Subject to subparagraph (B), the alien has
performed at least--
(i) 5 years of agricultural employment in the United States
for at least 100 work days per year, during the 5-year period
beginning on the date of the enactment of this Act; or
(ii) 3 years of agricultural employment in the United
States for at least 150 work days per year, during the 3-year
period beginning on the date of the enactment of this Act.
(B) 4-year period of employment.--An alien shall be
considered to meet the requirements of subparagraph (A) if
the alien has performed 4 years of agricultural employment in
the United States for at least 150 work days during 3 years
of those 4 years and at least 100 work days during the
remaining year, during the 4-year period beginning on the
date of the enactment of this Act.
(2) Proof.--An alien may demonstrate compliance with the
requirement under paragraph (1) by submitting--
(A) the record of employment described in section 211(e);
or
(B) such documentation as may be submitted under section
214(c).
(3) Extraordinary circumstances.--In determining whether an
alien has met the requirement of paragraph (1)(A), the
Secretary may credit the alien with not more than 12
additional months to meet the requirement of that
subparagraph if the alien was unable to work in agricultural
employment due to--
(A) pregnancy, injury, or disease, if the alien can
establish such pregnancy, disabling injury, or disease
through medical records;
(B) illness, disease, or other special needs of a minor
child, if the alien can establish such illness, disease, or
special needs through medical records; or
(C) severe weather conditions that prevented the alien from
engaging in agricultural employment for a significant period
of time.
(4) Application period.--The alien applies for adjustment
of status not later than 7 years after the date of the
enactment of this Act.
(5) Fine.--The alien pays a fine of $400 to the Secretary.
(b) Grounds for Denial of Adjustment of Status.--The
Secretary may deny an alien granted blue card status an
adjustment of status under this section and provide for
termination of such blue card status if--
(1) the Secretary finds by a preponderance of the evidence
that the adjustment to blue card status was the result of
fraud or willful misrepresentation, as described in section
212(a)(6)(C)(i) of the Immigration and Nationality Act (8
U.S.C. 1182(a)(6)(C)(i)); or
(2) the alien--
(A) commits an act that makes the alien inadmissible to the
United States under section 212 of the Immigration and
Nationality Act (8 U.S.C. 1182), except as provided under
section 215(b);
(B) is convicted of a felony or 3 or more misdemeanors
committed in the United States; or
(C) is convicted of an offense, an element of which
involves bodily injury, threat of serious bodily injury, or
harm to property in excess of $500.
(c) Grounds for Removal.--Any alien granted blue card
status who does not apply for adjustment of status under this
section before the expiration of the application period
described in subsection (a)(4) or who fails to meet the other
requirements of subsection (a) by the end of the application
period, is deportable and may be removed under section 240 of
the Immigration and Nationality Act (8 U.S.C. 1229a).
(d) Payment of Taxes.--
(1) In general.--Not later than the date on which an
alien's status is adjusted under this section, the alien
shall establish that the alien does not owe any applicable
Federal tax liability by establishing that--
(A) no such tax liability exists;
(B) all such outstanding tax liabilities have been paid; or
(C) the alien has entered into an agreement for payment of
all outstanding liabilities with the Internal Revenue
Service.
(2) Applicable federal tax liability.--In paragraph (1) the
term ``applicable Federal tax liability'' means liability for
Federal taxes, including penalties and interest, owed for any
year during the period of employment required under
subsection (a)(1) for which the statutory period for
assessment of any deficiency for such taxes has not expired.
(3) IRS cooperation.--The Secretary of the Treasury shall
establish rules and procedures under which the Commissioner
of Internal Revenue shall provide documentation to an alien
upon request to establish the payment of all taxes required
by this subsection.
(e) Spouses and Minor Children.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary shall confer the status of lawful
permanent resident on the spouse and minor child of an alien
granted any adjustment of status under subsection (a),
including any individual who was a minor child on the date
such alien was granted blue card status, if the spouse or
minor child applies for such status, or if the principal
alien includes the spouse or minor child in an application
for adjustment of status to that of a lawful permanent
resident.
(2) Treatment of spouses and minor children.--
(A) Granting of status and removal.--The Secretary may
grant derivative status to the alien spouse and any minor
child residing in the United States of an alien granted blue
card status and shall not remove such derivative spouse or
child during the period that the alien granted blue card
status maintains such status, except as provided in paragraph
(3). A grant of derivative status to such a spouse or child
under this subparagraph shall not decrease the number of
aliens who may receive blue card status under subsection (h)
of section 211.
(B) Travel.--The derivative spouse and any minor child of
an alien granted blue card status may travel outside the
United States

[[Page S978]]

in the same manner as an alien lawfully admitted for
permanent residence.
(C) Employment.--The derivative spouse of an alien granted
blue card status may apply to the Secretary for a work permit
to authorize such spouse to engage in any lawful employment
in the United States while such alien maintains blue card
status.
(3) Grounds for denial of adjustment of status and
removal.--The Secretary may deny an alien spouse or child
adjustment of status under paragraph (1) and may remove such
spouse or child under section 240 of the Immigration and
Nationality Act (8 U.S.C. 1229a) if the spouse or child--
(A) commits an act that makes the alien spouse or child
inadmissible to the United States under section 212 of such
Act (8 U.S.C. 1182), except as provided under section 215(b);
(B) is convicted of a felony or 3 or more misdemeanors
committed in the United States; or
(C) is convicted of an offense, an element of which
involves bodily injury, threat of serious bodily injury, or
harm to property in excess of $500.

SEC. 214. APPLICATIONS.

(a) Submission.--The Secretary shall provide that--
(1) applications for blue card status under section 211 may
be submitted--
(A) to the Secretary if the applicant is represented by an
attorney or a nonprofit religious, charitable, social
service, or similar organization recognized by the Board of
Immigration Appeals under section 292.2 of title 8, Code of
Federal Regulations; or
(B) to a qualified designated entity if the applicant
consents to the forwarding of the application to the
Secretary; and
(2) applications for adjustment of status under section 213
shall be filed directly with the Secretary.
(b) Qualified Designated Entity Defined.--In this section,
the term ``qualified designated entity'' means--
(1) a qualified farm labor organization or an association
of employers designated by the Secretary; or
(2) any such other person designated by the Secretary if
that Secretary determines such person is qualified and has
substantial experience, demonstrated competence, and has a
history of long-term involvement in the preparation and
submission of applications for adjustment of status under
section 209, 210, or 245 of the Immigration and Nationality
Act (8 U.S.C. 1159, 1160, and 1255), the Act entitled ``An
Act to adjust the status of Cuban refugees to that of lawful
permanent residents of the United States, and for other
purposes'', approved November 2, 1966 (Public Law 89-732; 8
U.S.C. 1255 note), Public Law 95-145 (8 U.S.C. 1255 note), or
the Immigration Reform and Control Act of 1986 (Public Law
99-603; 100 Stat. 3359) or any amendment made by that Act.
(c) Proof of Eligibility.--
(1) In general.--An alien may establish that the alien
meets the requirement of section 211(a)(1) or 213(a)(1)
through government employment records or records supplied by
employers or collective bargaining organizations, and other
reliable documentation as the alien may provide. The
Secretary shall establish special procedures to properly
credit work in cases in which an alien was employed under an
assumed name.
(2) Documentation of work history.--
(A) Burden of proof.--An alien applying for status under
section 211(a) or 213(a) has the burden of proving by a
preponderance of the evidence that the alien has worked the
requisite number of hours or days required under section
211(a)(1) or 213(a)(1), as applicable.
(B) Timely production of records.--If an employer or farm
labor contractor employing such an alien has kept proper and
adequate records respecting such employment, the alien's
burden of proof under subparagraph (A) may be met by securing
timely production of those records under regulations to be
promulgated by the Secretary.
(C) Sufficient evidence.--An alien may meet the burden of
proof under subparagraph (A) to establish that the alien has
performed the days or hours of work required by section
211(a)(1) or 213(a)(1) by producing sufficient evidence to
show the extent of that employment as a matter of just and
reasonable inference.
(d) Applications Submitted to Qualified Designated
Entities.--
(1) Requirements.--Each qualified designated entity shall
agree--
(A) to forward to the Secretary an application submitted to
that entity pursuant to subsection (a)(1)(B) if the applicant
has consented to such forwarding;
(B) not to forward to the Secretary any such application if
the applicant has not consented to such forwarding; and
(C) to assist an alien in obtaining documentation of the
alien's work history, if the alien requests such assistance.
(2) No authority to make determinations.--No qualified
designated entity may make a determination required by this
subtitle to be made by the Secretary.
(e) Limitation on Access to Information.--Files and records
collected or compiled by a qualified designated entity for
the purposes of this section are confidential and the
Secretary shall not have access to such a file or record
relating to an alien without the consent of the alien, except
as allowed by a court order issued pursuant to subsection
(f).
(f) Confidentiality of Information.--
(1) In general.--Except as otherwise provided in this
section, the Secretary or any other official or employee of
the Department or a bureau or agency of the Department is
prohibited from--
(A) using information furnished by the applicant pursuant
to an application filed under this title, the information
provided by an applicant to a qualified designated entity, or
any information provided by an employer or former employer
for any purpose other than to make a determination on the
application or for imposing the penalties described in
subsection (g);
(B) making any publication in which the information
furnished by any particular individual can be identified; or
(C) permitting a person other than a sworn officer or
employee of the Department or a bureau or agency of the
Department or, with respect to applications filed with a
qualified designated entity, that qualified designated
entity, to examine individual applications.
(2) Required disclosures.--The Secretary shall provide the
information furnished under this title or any other
information derived from such furnished information to--
(A) a duly recognized law enforcement entity in connection
with a criminal investigation or prosecution, if such
information is requested in writing by such entity; or
(B) an official coroner, for purposes of affirmatively
identifying a deceased individual, whether or not the death
of such individual resulted from a crime.
(3) Construction.--
(A) In general.--Nothing in this subsection shall be
construed to limit the use, or release, for immigration
enforcement purposes or law enforcement purposes, of
information contained in files or records of the Department
pertaining to an application filed under this section, other
than information furnished by an applicant pursuant to the
application, or any other information derived from the
application, that is not available from any other source.
(B) Criminal convictions.--Notwithstanding any other
provision of this subsection, information concerning whether
the alien applying for blue card status under section 211 or
an adjustment of status under section 213 has been convicted
of a crime at any time may be used or released for
immigration enforcement or law enforcement purposes.
(4) Crime.--Any person who knowingly uses, publishes, or
permits information to be examined in violation of this
subsection shall be subject to a fine in an amount not to
exceed $10,000.
(g) Penalties for False Statements in Applications.--
(1) Criminal penalty.--Any person who--
(A) files an application for blue card status under section
211 or an adjustment of status under section 213 and
knowingly and willfully falsifies, conceals, or covers up a
material fact or makes any false, fictitious, or fraudulent
statements or representations, or makes or uses any false
writing or document knowing the same to contain any false,
fictitious, or fraudulent statement or entry; or
(B) creates or supplies a false writing or document for use
in making such an application,

shall be fined in accordance with title 18, United States
Code, imprisoned not more than 5 years, or both.
(2) Inadmissibility.--An alien who is convicted of a crime
under paragraph (1) shall be considered to be inadmissible to
the United States on the ground described in section
212(a)(6)(C)(i) of the Immigration and Nationality Act (8
U.S.C. 1182(a)(6)(C)(i)).
(h) Eligibility for Legal Services.--Section 504(a)(11) of
Public Law 104-134 (110 Stat. 1321-53 et seq.) shall not be
construed to prevent a recipient of funds under the Legal
Services Corporation Act (42 U.S.C. 2996 et seq.) from
providing legal assistance directly related to an application
for blue card status under section 211 or an adjustment of
status under section 213.
(i) Application Fees.--
(1) Fee schedule.--The Secretary shall provide for a
schedule of fees that--
(A) shall be charged for the filing of an application for
blue card status under section 211 or for an adjustment of
status under section 213; and
(B) may be charged by qualified designated entities to help
defray the costs of services provided to such applicants.
(2) Prohibition on excess fees by qualified designated
entities.--A qualified designated entity may not charge any
fee in excess of, or in addition to, the fees authorized
under paragraph (1)(B) for services provided to applicants.
(3) Disposition of fees.--
(A) In general.--There is established in the general fund
of the Treasury a separate account, which shall be known as
the ``Agricultural Worker Immigration Status Adjustment
Account''. Notwithstanding any other provision of law, there
shall be deposited as offsetting receipts into the account
all fees collected under paragraph (1)(A).
(B) Use of fees for application processing.--Amounts
deposited in the ``Agricultural Worker Immigration Status
Adjustment Account'' shall remain available to the Secretary
until expended for processing applications for blue card
status under section 211 or an adjustment of status under
section 213.

[[Page S979]]

SEC. 215. WAIVER OF NUMERICAL LIMITATIONS AND CERTAIN GROUNDS
FOR INADMISSIBILITY.

(a) Numerical Limitations Do Not Apply.--The numerical
limitations of sections 201 and 202 of the Immigration and
Nationality Act (8 U.S.C. 1151 and 1152) shall not apply to
the adjustment of aliens to lawful permanent resident status
under section 213.
(b) Waiver of Certain Grounds of Inadmissibility.--In the
determination of an alien's eligibility for status under
section 211(a) or an alien's eligibility for adjustment of
status under section 213(b)(2)(A) the following rules shall
apply:
(1) Grounds of exclusion not applicable.--The provisions of
paragraphs (5), (6)(A), (7), and (9) of section 212(a) of the
Immigration and Nationality Act (8 U.S.C. 1182(a)) shall not
apply.
(2) Waiver of other grounds.--
(A) In general.--Except as provided in subparagraph (B),
the Secretary may waive any other provision of such section
212(a) in the case of individual aliens for humanitarian
purposes, to ensure family unity, or if otherwise in the
public interest.
(B) Grounds that may not be waived.--Paragraphs (2)(A),
(2)(B), (2)(C), (3), and (4) of such section 212(a) may not
be waived by the Secretary under subparagraph (A).
(C) Construction.--Nothing in this paragraph shall be
construed as affecting the authority of the Secretary other
than under this subparagraph to waive provisions of such
section 212(a).
(3) Special rule for determination of public charge.--An
alien is not ineligible for blue card status under section
211 or an adjustment of status under section 213 by reason of
a ground of inadmissibility under section 212(a)(4) of the
Immigration and Nationality Act (8 U.S.C. 1182(a)(4)) if the
alien demonstrates a history of employment in the United
States evidencing self-support without reliance on public
cash assistance.
(c) Temporary Stay of Removal and Work Authorization for
Certain Applicants.--
(1) Before application period.--Effective on the date of
enactment of this Act, the Secretary shall provide that, in
the case of an alien who is apprehended before the beginning
of the application period described in section 211(a)(2) and
who can establish a nonfrivolous case of eligibility for blue
card status (but for the fact that the alien may not apply
for such status until the beginning of such period), until
the alien has had the opportunity during the first 30 days of
the application period to complete the filing of an
application for blue card status, the alien--
(A) may not be removed; and
(B) shall be granted authorization to engage in employment
in the United States and be provided an employment authorized
endorsement or other appropriate work permit for such
purpose.
(2) During application period.--The Secretary shall provide
that, in the case of an alien who presents a nonfrivolous
application for blue card status during the application
period described in section 211(a)(2), including an alien who
files such an application within 30 days of the alien's
apprehension, and until a final determination on the
application has been made in accordance with this section,
the alien--
(A) may not be removed; and
(B) shall be granted authorization to engage in employment
in the United States and be provided an employment authorized
endorsement or other appropriate work permit for such
purpose.

SEC. 216. ADMINISTRATIVE AND JUDICIAL REVIEW.

(a) In General.--There shall be no administrative or
judicial review of a determination respecting an application
for blue card status under section 211 or adjustment of
status under section 213 except in accordance with this
section.
(b) Administrative Review.--
(1) Single level of administrative appellate review.--The
Secretary shall establish an appellate authority to provide
for a single level of administrative appellate review of such
a determination.
(2) Standard for review.--Such administrative appellate
review shall be based solely upon the administrative record
established at the time of the determination on the
application and upon such additional or newly discovered
evidence as may not have been available at the time of the
determination.
(c) Judicial Review.--
(1) Limitation to review of removal.--There shall be
judicial review of such a determination only in the judicial
review of an order of removal under section 242 of the
Immigration and Nationality Act (8 U.S.C. 1252).
(2) Standard for judicial review.--Such judicial review
shall be based solely upon the administrative record
established at the time of the review by the appellate
authority and the findings of fact and determinations
contained in such record shall be conclusive unless the
applicant can establish abuse of discretion or that the
findings are directly contrary to clear and convincing facts
contained in the record considered as a whole.

SEC. 217. USE OF INFORMATION.

Beginning not later than the first day of the application
period described in section 211(a)(2), the Secretary, in
cooperation with qualified designated entities (as that term
is defined in section 214(b)), shall broadly disseminate
information respecting the benefits that aliens may receive
under this subtitle and the requirements that an alien is
required to meet to receive such benefits.

SEC. 218. REGULATIONS, EFFECTIVE DATE, AUTHORIZATION OF
APPROPRIATIONS.

(a) Regulations.--The Secretary shall issue regulations to
implement this subtitle not later than the first day of the
seventh month that begins after the date of enactment of this
Act.
(b) Effective Date.--This subtitle shall take effect on the
date that regulations required by subsection (a) are issued,
regardless of whether such regulations are issued on an
interim basis or on any other basis.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as may be
necessary to implement this subtitle, including any sums
needed for costs associated with the initiation of such
implementation, for fiscal years 2007 and 2008.

PART II--CORRECTION OF SOCIAL SECURITY RECORDS

SEC. 221. CORRECTION OF SOCIAL SECURITY RECORDS.

(a) In General.--Section 208(e)(1) of the Social Security
Act (42 U.S.C. 408(e)(1)) is amended--
(1) in subparagraph (B)(ii), by striking ``or'' at the end;
(2) in subparagraph (C), by inserting ``or'' at the end;
(3) by inserting after subparagraph (C) the following:
``(D) who is granted blue card status under the
Agricultural Job Opportunity, Benefits, and Security Act of
2007,''; and
(4) by striking ``1990.'' and inserting ``1990, or in the
case of an alien described in subparagraph (D), if such
conduct is alleged to have occurred before the date on which
the alien was granted blue card status.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on the first day of the seventh month that
begins after the date of the enactment of this Act.

Subtitle B--Reform of H-2A Worker Program

SEC. 231. AMENDMENT TO THE IMMIGRATION AND NATIONALITY ACT.

(a) In General.--Title II of the Immigration and
Nationality Act (8 U.S.C. 1151 et seq.) is amended by
striking section 218 and inserting the following:

``SEC. 218. H-2A EMPLOYER APPLICATIONS.

``(a) Applications to the Secretary of Labor.--
``(1) In general.--No alien may be admitted to the United
States as an H-2A worker, or otherwise provided status as an
H-2A worker, unless the employer has filed with the Secretary
of Labor an application containing--
``(A) the assurances described in subsection (b);
``(B) a description of the nature and location of the work
to be performed;
``(C) the anticipated period (expected beginning and ending
dates) for which the workers will be needed; and
``(D) the number of job opportunities in which the employer
seeks to employ the workers.
``(2) Accompanied by job offer.--Each application filed
under paragraph (1) shall be accompanied by a copy of the job
offer describing the wages and other terms and conditions of
employment and the bona fide occupational qualifications that
shall be possessed by a worker to be employed in the job
opportunity in question.
``(b) Assurances for Inclusion in Applications.--The
assurances referred to in subsection (a)(1) are the
following:
``(1) Job opportunities covered by collective bargaining
agreements.--With respect to a job opportunity that is
covered under a collective bargaining agreement:
``(A) Union contract described.--The job opportunity is
covered by a union contract which was negotiated at arm's
length between a bona fide union and the employer.
``(B) Strike or lockout.--The specific job opportunity for
which the employer is requesting an H-2A worker is not vacant
because the former occupant is on strike or being locked out
in the course of a labor dispute.
``(C) Notification of bargaining representatives.--The
employer, at the time of filing the application, has provided
notice of the filing under this paragraph to the bargaining
representative of the employer's employees in the
occupational classification at the place or places of
employment for which aliens are sought.
``(D) Temporary or seasonal job opportunities.--The job
opportunity is temporary or seasonal.
``(E) Offers to united states workers.--The employer has
offered or will offer the job to any eligible United States
worker who applies and is equally or better qualified for the
job for which the nonimmigrant is, or the nonimmigrants are,
sought and who will be available at the time and place of
need.
``(F) Provision of insurance.--If the job opportunity is
not covered by the State workers' compensation law, the
employer will provide, at no cost to the worker, insurance
covering injury and disease arising out of, and in the course
of, the worker's employment which will provide benefits at
least equal to those provided under the State's workers'
compensation law for comparable employment.
``(2) Job opportunities not covered by collective
bargaining agreements.--With

[[Page S980]]

respect to a job opportunity that is not covered under a
collective bargaining agreement:
``(A) Strike or lockout.--The specific job opportunity for
which the employer has applied for an H-2A worker is not
vacant because the former occupant is on strike or being
locked out in the course of a labor dispute.
``(B) Temporary or seasonal job opportunities.--The job
opportunity is temporary or seasonal.
``(C) Benefit, wage, and working conditions.--The employer
will provide, at a minimum, the benefits, wages, and working
conditions required by section 218A to all workers employed
in the job opportunities for which the employer has applied
for an H-2A worker under subsection (a) and to all other
workers in the same occupation at the place of employment.
``(D) Nondisplacement of united states workers.--The
employer did not displace and will not displace a United
States worker employed by the employer during the period of
employment and for a period of 30 days preceding the period
of employment in the occupation at the place of employment
for which the employer has applied for an H-2A worker.
``(E) Requirements for placement of the nonimmigrant with
other employers.--The employer will not place the
nonimmigrant with another employer unless--
``(i) the nonimmigrant performs duties in whole or in part
at 1 or more worksites owned, operated, or controlled by such
other employer;
``(ii) there are indicia of an employment relationship
between the nonimmigrant and such other employer; and
``(iii) the employer has inquired of the other employer as
to whether, and has no actual knowledge or notice that,
during the period of employment and for a period of 30 days
preceding the period of employment, the other employer has
displaced or intends to displace a United States worker
employed by the other employer in the occupation at the place
of employment for which the employer seeks approval to employ
H-2A workers.
``(F) Statement of liability.--The application form shall
include a clear statement explaining the liability under
subparagraph (E) of an employer if the other employer
described in such subparagraph displaces a United States
worker as described in such subparagraph.
``(G) Provision of insurance.--If the job opportunity is
not covered by the State workers' compensation law, the
employer will provide, at no cost to the worker, insurance
covering injury and disease arising out of and in the course
of the worker's employment which will provide benefits at
least equal to those provided under the State's workers'
compensation law for comparable employment.
``(H) Employment of united states workers.--
``(i) Recruitment.--The employer has taken or will take the
following steps to recruit United States workers for the job
opportunities for which the H-2A nonimmigrant is, or H-2A
nonimmigrants are, sought:

``(I) Contacting former workers.--The employer shall make
reasonable efforts through the sending of a letter by United
States Postal Service mail, or otherwise, to contact any
United States worker the employer employed during the
previous season in the occupation at the place of intended
employment for which the employer is applying for workers and
has made the availability of the employer's job opportunities
in the occupation at the place of intended employment known
to such previous workers, unless the worker was terminated
from employment by the employer for a lawful job-related
reason or abandoned the job before the worker completed the
period of employment of the job opportunity for which the
worker was hired.
``(II) Filing a job offer with the local office of the
state employment security agency.--Not later than 28 days
before the date on which the employer desires to employ an H-
2A worker in a temporary or seasonal agricultural job
opportunity, the employer shall submit a copy of the job
offer described in subsection (a)(2) to the local office of
the State employment security agency which serves the area of
intended employment and authorize the posting of the job
opportunity on `America's Job Bank' or other electronic job
registry, except that nothing in this subclause shall require
the employer to file an interstate job order under section
653 of title 20, Code of Federal Regulations.
``(III) Advertising of job opportunities.--Not later than
14 days before the date on which the employer desires to
employ an H-2A worker in a temporary or seasonal agricultural
job opportunity, the employer shall advertise the
availability of the job opportunities for which the employer
is seeking workers in a publication in the local labor market
that is likely to be patronized by potential farm workers.
``(IV) Emergency procedures.--The Secretary of Labor shall,
by regulation, provide a procedure for acceptance and
approval of applications in which the employer has not
complied with the provisions of this subparagraph because the
employer's need for H-2A workers could not reasonably have
been foreseen.

``(ii) Job offers.--The employer has offered or will offer
the job to any eligible United States worker who applies and
is equally or better qualified for the job for which the
nonimmigrant is, or nonimmigrants are, sought and who will be
available at the time and place of need.
``(iii) Period of employment.--The employer will provide
employment to any qualified United States worker who applies
to the employer during the period beginning on the date on
which the H-2A worker departs for the employer's place of
employment and ending on the date on which 50 percent of the
period of employment for which the H-2A worker who is in the
job was hired has elapsed, subject to the following
requirements:

``(I) Prohibition.--No person or entity shall willfully and
knowingly withhold United States workers before the arrival
of H-2A workers in order to force the hiring of United States
workers under this clause.
``(II) Complaints.--Upon receipt of a complaint by an
employer that a violation of subclause (I) has occurred, the
Secretary of Labor shall immediately investigate. The
Secretary of Labor shall, within 36 hours of the receipt of
the complaint, issue findings concerning the alleged
violation. If the Secretary of Labor finds that a violation
has occurred, the Secretary of Labor shall immediately
suspend the application of this clause with respect to that
certification for that date of need.
``(III) Placement of united states workers.--Before
referring a United States worker to an employer during the
period described in the matter preceding subclause (I), the
Secretary of Labor shall make all reasonable efforts to place
the United States worker in an open job acceptable to the
worker, if there are other job offers pending with the job
service that offer similar job opportunities in the area of
intended employment.

``(iv) Statutory construction.--Nothing in this
subparagraph shall be construed to prohibit an employer from
using such legitimate selection criteria relevant to the type
of job that are normal or customary to the type of job
involved so long as such criteria are not applied in a
discriminatory manner.
``(c) Applications by Associations on Behalf of Employer
Members.--
``(1) In general.--An agricultural association may file an
application under subsection (a) on behalf of 1 or more of
its employer members that the association certifies in its
application has or have agreed in writing to comply with the
requirements of this section and sections 218A, 218B, and
218C.
``(2) Treatment of associations acting as employers.--If an
association filing an application under paragraph (1) is a
joint or sole employer of the temporary or seasonal
agricultural workers requested on the application, the
certifications granted under subsection (e)(2)(B) to the
association may be used for the certified job opportunities
of any of its producer members named on the application, and
such workers may be transferred among such producer members
to perform the agricultural services of a temporary or
seasonal nature for which the certifications were granted.
``(d) Withdrawal of Applications.--
``(1) In general.--An employer may withdraw an application
filed pursuant to subsection (a), except that if the employer
is an agricultural association, the association may withdraw
an application filed pursuant to subsection (a) with respect
to 1 or more of its members. To withdraw an application, the
employer or association shall notify the Secretary of Labor
in writing, and the Secretary of Labor shall acknowledge in
writing the receipt of such withdrawal notice. An employer
who withdraws an application under subsection (a), or on
whose behalf an application is withdrawn, is relieved of the
obligations undertaken in the application.
``(2) Limitation.--An application may not be withdrawn
while any alien provided status under section
101(a)(15)(H)(ii)(a) pursuant to such application is employed
by the employer.
``(3) Obligations under other statutes.--Any obligation
incurred by an employer under any other law or regulation as
a result of the recruitment of United States workers or H-2A
workers under an offer of terms and conditions of employment
required as a result of making an application under
subsection (a) is unaffected by withdrawal of such
application.
``(e) Review and Approval of Applications.--
``(1) Responsibility of employers.--The employer shall make
available for public examination, within 1 working day after
the date on which an application under subsection (a) is
filed, at the employer's principal place of business or
worksite, a copy of each such application (and such
accompanying documents as are necessary).
``(2) Responsibility of the secretary of labor.--
``(A) Compilation of list.--The Secretary of Labor shall
compile, on a current basis, a list (by employer and by
occupational classification) of the applications filed under
subsection (a). Such list shall include the wage rate, number
of workers sought, period of intended employment, and date of
need. The Secretary of Labor shall make such list available
for examination in the District of Columbia.
``(B) Review of applications.--The Secretary of Labor shall
review such an application only for completeness and obvious
inaccuracies. Unless the Secretary of Labor finds

[[Page S981]]

that the application is incomplete or obviously inaccurate,
the Secretary of Labor shall certify that the intending
employer has filed with the Secretary of Labor an application
as described in subsection (a). Such certification shall be
provided within 7 days of the filing of the application.''

``SEC. 218A. H-2A EMPLOYMENT REQUIREMENTS.

``(a) Preferential Treatment of Aliens Prohibited.--
Employers seeking to hire United States workers shall offer
the United States workers no less than the same benefits,
wages, and working conditions that the employer is offering,
intends to offer, or will provide to H-2A workers.
Conversely, no job offer may impose on United States workers
any restrictions or obligations which will not be imposed on
the employer's H-2A workers.
``(b) Minimum Benefits, Wages, and Working Conditions.--
Except in cases where higher benefits, wages, or working
conditions are required by the provisions of subsection (a),
in order to protect similarly employed United States workers
from adverse effects with respect to benefits, wages, and
working conditions, every job offer which shall accompany an
application under section 218(b)(2) shall include each of the
following benefit, wage, and working condition provisions:
``(1) Requirement to provide housing or a housing
allowance.--
``(A) In general.--An employer applying under section
218(a) for H-2A workers shall offer to provide housing at no
cost to all workers in job opportunities for which the
employer has applied under that section and to all other
workers in the same occupation at the place of employment,
whose place of residence is beyond normal commuting distance.
``(B) Type of housing.--In complying with subparagraph (A),
an employer may, at the employer's election, provide housing
that meets applicable Federal standards for temporary labor
camps or secure housing that meets applicable local standards
for rental or public accommodation housing or other
substantially similar class of habitation, or in the absence
of applicable local standards, State standards for rental or
public accommodation housing or other substantially similar
class of habitation. In the absence of applicable local or
State standards, Federal temporary labor camp standards shall
apply.
``(C) Family housing.--If it is the prevailing practice in
the occupation and area of intended employment to provide
family housing, family housing shall be provided to workers
with families who request it.
``(D) Workers engaged in the range production of
livestock.--The Secretary of Labor shall issue regulations
that address the specific requirements for the provision of
housing to workers engaged in the range production of
livestock.
``(E) Limitation.--Nothing in this paragraph shall be
construed to require an employer to provide or secure housing
for persons who were not entitled to such housing under the
temporary labor certification regulations in effect on June
1, 1986.
``(F) Charges for housing.--
``(i) Charges for public housing.--If public housing
provided for migrant agricultural workers under the auspices
of a local, county, or State government is secured by an
employer, and use of the public housing unit normally
requires charges from migrant workers, such charges shall be
paid by the employer directly to the appropriate individual
or entity affiliated with the housing's management.
``(ii) Deposit charges.--Charges in the form of deposits
for bedding or other similar incidentals related to housing
shall not be levied upon workers by employers who provide
housing for their workers. An employer may require a worker
found to have been responsible for damage to such housing
which is not the result of normal wear and tear related to
habitation to reimburse the employer for the reasonable cost
of repair of such damage.
``(G) Housing allowance as alternative.--
``(i) In general.--If the requirement set out in clause
(ii) is satisfied, the employer may provide a reasonable
housing allowance instead of offering housing under
subparagraph (A). Upon the request of a worker seeking
assistance in locating housing, the employer shall make a
good faith effort to assist the worker in identifying and
locating housing in the area of intended employment. An
employer who offers a housing allowance to a worker, or
assists a worker in locating housing which the worker
occupies, pursuant to this clause shall not be deemed a
housing provider under section 203 of the Migrant and
Seasonal Agricultural Worker Protection Act (29 U.S.C. 1823)
solely by virtue of providing such housing allowance. No
housing allowance may be used for housing which is owned or
controlled by the employer.
``(ii) Certification.--The requirement of this clause is
satisfied if the Governor of the State certifies to the
Secretary of Labor that there is adequate housing available
in the area of intended employment for migrant farm workers
and H-2A workers who are seeking temporary housing while
employed in agricultural work. Such certification shall
expire after 3 years unless renewed by the Governor of the
State.
``(iii) Amount of allowance.--

``(I) Nonmetropolitan counties.--If the place of employment
of the workers provided an allowance under this subparagraph
is a nonmetropolitan county, the amount of the housing
allowance under this subparagraph shall be equal to the
statewide average fair market rental for existing housing for
nonmetropolitan counties for the State, as established by the
Secretary of Housing and Urban Development pursuant to
section 8(c) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an
assumption of 2 persons per bedroom.
``(II) Metropolitan counties.--If the place of employment
of the workers provided an allowance under this paragraph is
in a metropolitan county, the amount of the housing allowance
under this subparagraph shall be equal to the statewide
average fair market rental for existing housing for
metropolitan counties for the State, as established by the
Secretary of Housing and Urban Development pursuant to
section 8(c) of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)), based on a 2-bedroom dwelling unit and an
assumption of 2 persons per bedroom.

``(2) Reimbursement of transportation.--
``(A) To place of employment.--A worker who completes 50
percent of the period of employment of the job opportunity
for which the worker was hired shall be reimbursed by the
employer for the cost of the worker's transportation and
subsistence from the place from which the worker came to work
for the employer (or place of last employment, if the worker
traveled from such place) to the place of employment.
``(B) From place of employment.--A worker who completes the
period of employment for the job opportunity involved shall
be reimbursed by the employer for the cost of the worker's
transportation and subsistence from the place of employment
to the place from which the worker, disregarding intervening
employment, came to work for the employer, or to the place of
next employment, if the worker has contracted with a
subsequent employer who has not agreed to provide or pay for
the worker's transportation and subsistence to such
subsequent employer's place of employment.
``(C) Limitation.--
``(i) Amount of reimbursement.--Except as provided in
clause (ii), the amount of reimbursement provided under
subparagraph (A) or (B) to a worker or alien shall not exceed
the lesser of--

``(I) the actual cost to the worker or alien of the
transportation and subsistence involved; or
``(II) the most economical and reasonable common carrier
transportation charges and subsistence costs for the distance
involved.

``(ii) Distance traveled.--No reimbursement under
subparagraph (A) or (B) shall be required if the distance
traveled is 100 miles or less, or the worker is not residing
in employer-provided housing or housing secured through an
allowance as provided in paragraph (1)(G).
``(D) Early termination.--If the worker is laid off or
employment is terminated for contract impossibility (as
described in paragraph (4)(D)) before the anticipated ending
date of employment, the employer shall provide the
transportation and subsistence required by subparagraph (B)
and, notwithstanding whether the worker has completed 50
percent of the period of employment, shall provide the
transportation reimbursement required by subparagraph (A).
``(E) Transportation between living quarters and
worksite.--The employer shall provide transportation between
the worker's living quarters and the employer's worksite
without cost to the worker, and such transportation will be
in accordance with applicable laws and regulations.
``(3) Required wages.--
``(A) In general.--An employer applying for workers under
section 218(a) shall offer to pay, and shall pay, all workers
in the occupation for which the employer has applied for
workers, not less (and is not required to pay more) than the
greater of the prevailing wage in the occupation in the area
of intended employment or the adverse effect wage rate. No
worker shall be paid less than the greater of the hourly wage
prescribed under section 6(a)(1) of the Fair Labor Standards
Act of 1938 (29 U.S.C. 206(a)(1)) or the applicable State
minimum wage.
``(B) Limitation.--Effective on the date of the enactment
of the Agricultural Job Opportunities, Benefits, and Security
Act of 2007 and continuing for 3 years thereafter, no adverse
effect wage rate for a State may be more than the adverse
effect wage rate for that State in effect on January 1, 2003,
as established by section 655.107 of title 20, Code of
Federal Regulations.
``(C) Required wages after 3-year freeze.--
``(i) First adjustment.--If Congress does not set a new
wage standard applicable to this section before the first
March 1 that is not less than 3 years after the date of
enactment of this section, the adverse effect wage rate for
each State beginning on such March 1 shall be the wage rate
that would have resulted if the adverse effect wage rate in
effect on January 1, 2003, had been annually adjusted,
beginning on March 1, 2006, by the lesser of--

``(I) the 12-month percentage change in the Consumer Price
Index for All Urban Consumers between December of the second
preceding year and December of the preceding year; and
``(II) 4 percent.

``(ii) Subsequent annual adjustments.--Beginning on the
first March 1 that is not less than 4 years after the date of
enactment of this section, and each March 1 thereafter, the
adverse effect wage rate then in effect

[[Page S982]]

for each State shall be adjusted by the lesser of--

``(I) the 12-month percentage change in the Consumer Price
Index for All Urban Consumers between December of the second
preceding year and December of the preceding year; and
``(II) 4 percent.

``(D) Deductions.--The employer shall make only those
deductions from the worker's wages that are authorized by law
or are reasonable and customary in the occupation and area of
employment. The job offer shall specify all deductions not
required by law which the employer will make from the
worker's wages.
``(E) Frequency of pay.--The employer shall pay the worker
not less frequently than twice monthly, or in accordance with
the prevailing practice in the area of employment, whichever
is more frequent.
``(F) Hours and earnings statements.--The employer shall
furnish to the worker, on or before each payday, in 1 or more
written statements--
``(i) the worker's total earnings for the pay period;
``(ii) the worker's hourly rate of pay, piece rate of pay,
or both;
``(iii) the hours of employment which have been offered to
the worker (broken out by hours offered in accordance with
and over and above the \3/4\ guarantee described in paragraph
(4);
``(iv) the hours actually worked by the worker;
``(v) an itemization of the deductions made from the
worker's wages; and
``(vi) if piece rates of pay are used, the units produced
daily.
``(G) Report on wage protections.--Not later than December
31, 2009, the Comptroller General of the United States shall
prepare and transmit to the Secretary of Labor, the Committee
on the Judiciary of the Senate, and Committee on the
Judiciary of the House of Representatives, a report that
addresses--
``(i) whether the employment of H-2A or unauthorized aliens
in the United States agricultural workforce has depressed
United States farm worker wages below the levels that would
otherwise have prevailed if alien farm workers had not been
employed in the United States;
``(ii) whether an adverse effect wage rate is necessary to
prevent wages of United States farm workers in occupations in
which H-2A workers are employed from falling below the wage
levels that would have prevailed in the absence of the
employment of H-2A workers in those occupations;
``(iii) whether alternative wage standards, such as a
prevailing wage standard, would be sufficient to prevent
wages in occupations in which H-2A workers are employed from
falling below the wage level that would have prevailed in the
absence of H-2A employment;
``(iv) whether any changes are warranted in the current
methodologies for calculating the adverse effect wage rate
and the prevailing wage; and
``(v) recommendations for future wage protection under this
section.
``(H) Commission on wage standards.--
``(i) Establishment.--There is established the Commission
on Agricultural Wage Standards under the H-2A program (in
this subparagraph referred to as the `Commission').
``(ii) Composition.--The Commission shall consist of 10
members as follows:

``(I) Four representatives of agricultural employers and 1
representative of the Department of Agriculture, each
appointed by the Secretary of Agriculture.
``(II) Four representatives of agricultural workers and 1
representative of the Department of Labor, each appointed by
the Secretary of Labor.

``(iii) Functions.--The Commission shall conduct a study
that shall address--

``(I) whether the employment of H-2A or unauthorized aliens
in the United States agricultural workforce has depressed
United States farm worker wages below the levels that would
otherwise have prevailed if alien farm workers had not been
employed in the United States;
``(II) whether an adverse effect wage rate is necessary to
prevent wages of United States farm workers in occupations in
which H-2A workers are employed from falling below the wage
levels that would have prevailed in the absence of the
employment of H-2A workers in those occupations;
``(III) whether alternative wage standards, such as a
prevailing wage standard, would be sufficient to prevent
wages in occupations in which H-2A workers are employed from
falling below the wage level that would have prevailed in the
absence of H-2A employment;
``(IV) whether any changes are warranted in the current
methodologies for calculating the adverse effect wage rate
and the prevailing wage rate; and
``(V) recommendations for future wage protection under this
section.

``(iv) Final report.--Not later than December 31, 2009, the
Commission shall submit a report to the Congress setting
forth the findings of the study conducted under clause (iii).
``(v) Termination date.--The Commission shall terminate
upon submitting its final report.
``(4) Guarantee of employment.--
``(A) Offer to worker.--The employer shall guarantee to
offer the worker employment for the hourly equivalent of at
least \3/4\ of the work days of the total period of
employment, beginning with the first work day after the
arrival of the worker at the place of employment and ending
on the expiration date specified in the job offer. For
purposes of this subparagraph, the hourly equivalent means
the number of hours in the work days as stated in the job
offer and shall exclude the worker's Sabbath and Federal
holidays. If the employer affords the United States or H-2A
worker less employment than that required under this
paragraph, the employer shall pay such worker the amount
which the worker would have earned had the worker, in fact,
worked for the guaranteed number of hours.
``(B) Failure to work.--Any hours which the worker fails to
work, up to a maximum of the number of hours specified in the
job offer for a work day, when the worker has been offered an
opportunity to do so, and all hours of work actually
performed (including voluntary work in excess of the number
of hours specified in the job offer in a work day, on the
worker's Sabbath, or on Federal holidays) may be counted by
the employer in calculating whether the period of guaranteed
employment has been met.
``(C) Abandonment of employment, termination for cause.--If
the worker voluntarily abandons employment before the end of
the contract period, or is terminated for cause, the worker
is not entitled to the `\3/4\ guarantee' described in
subparagraph (A).
``(D) Contract impossibility.--If, before the expiration of
the period of employment specified in the job offer, the
services of the worker are no longer required for reasons
beyond the control of the employer due to any form of natural
disaster, including a flood, hurricane, freeze, earthquake,
fire, drought, plant or animal disease or pest infestation,
or regulatory drought, before the guarantee in subparagraph
(A) is fulfilled, the employer may terminate the worker's
employment. In the event of such termination, the employer
shall fulfill the employment guarantee in subparagraph (A)
for the work days that have elapsed from the first work day
after the arrival of the worker to the termination of
employment. In such cases, the employer will make efforts to
transfer the United States worker to other comparable
employment acceptable to the worker. If such transfer is not
effected, the employer shall provide the return
transportation required in paragraph (2)(D).
``(5) Motor vehicle safety.--
``(A) Mode of transportation subject to coverage.--
``(i) In general.--Except as provided in clauses (iii) and
(iv), this subsection applies to any H-2A employer that uses
or causes to be used any vehicle to transport an H-2A worker
within the United States.
``(ii) Defined term.--In this paragraph, the term `uses or
causes to be used'--

``(I) applies only to transportation provided by an H-2A
employer to an H-2A worker, or by a farm labor contractor to
an H-2A worker at the request or direction of an H-2A
employer; and
``(II) does not apply to--

``(aa) transportation provided, or transportation
arrangements made, by an H-2A worker, unless the employer
specifically requested or arranged such transportation; or
``(bb) car pooling arrangements made by H-2A workers
themselves, using 1 of the workers' own vehicles, unless
specifically requested by the employer directly or through a
farm labor contractor.
``(iii) Clarification.--Providing a job offer to an H-2A
worker that causes the worker to travel to or from the place
of employment, or the payment or reimbursement of the
transportation costs of an H-2A worker by an H-2A employer,
shall not constitute an arrangement of, or participation in,
such transportation.
``(iv) Agricultural machinery and equipment excluded.--This
subsection does not apply to the transportation of an H-2A
worker on a tractor, combine, harvester, picker, or other
similar machinery or equipment while such worker is actually
engaged in the planting, cultivating, or harvesting of
agricultural commodities or the care of livestock or poultry
or engaged in transportation incidental thereto.
``(v) Common carriers excluded.--This subsection does not
apply to common carrier motor vehicle transportation in which
the provider holds itself out to the general public as
engaging in the transportation of passengers for hire and
holds a valid certification of authorization for such
purposes from an appropriate Federal, State, or local agency.
``(B) Applicability of standards, licensing, and insurance
requirements.--
``(i) In general.--When using, or causing to be used, any
vehicle for the purpose of providing transportation to which
this subparagraph applies, each employer shall--

``(I) ensure that each such vehicle conforms to the
standards prescribed by the Secretary of Labor under section
401(b) of the Migrant and Seasonal Agricultural Worker
Protection Act (29 U.S.C. 1841(b)) and other applicable
Federal and State safety standards;
``(II) ensure that each driver has a valid and appropriate
license, as provided by State law, to operate the vehicle;
and
``(III) have an insurance policy or a liability bond that
is in effect which insures the employer against liability for
damage to persons or property arising from the ownership,
operation, or causing to be operated, of any vehicle used to
transport any H-2A worker.

[[Page S983]]

``(ii) Amount of insurance required.--The level of
insurance required shall be determined by the Secretary of
Labor pursuant to regulations to be issued under this
subsection.
``(iii) Effect of workers' compensation coverage.--If the
employer of any H-2A worker provides workers' compensation
coverage for such worker in the case of bodily injury or
death as provided by State law, the following adjustments in
the requirements of subparagraph (B)(i)(III) relating to
having an insurance policy or liability bond apply:

``(I) No insurance policy or liability bond shall be
required of the employer, if such workers are transported
only under circumstances for which there is coverage under
such State law.
``(II) An insurance policy or liability bond shall be
required of the employer for circumstances under which
coverage for the transportation of such workers is not
provided under such State law.

``(c) Compliance With Labor Laws.--An employer shall assure
that, except as otherwise provided in this section, the
employer will comply with all applicable Federal, State, and
local labor laws, including laws affecting migrant and
seasonal agricultural workers, with respect to all United
States workers and alien workers employed by the employer,
except that a violation of this assurance shall not
constitute a violation of the Migrant and Seasonal
Agricultural Worker Protection Act (29 U.S.C. 1801 et seq.).
``(d) Copy of Job Offer.--The employer shall provide to the
worker, not later than the day the work commences, a copy of
the employer's application and job offer described in section
218(a), or, if the employer will require the worker to enter
into a separate employment contract covering the employment
in question, such separate employment contract.
``(e) Range Production of Livestock.--Nothing in this
section, section 218, or section 218B shall preclude the
Secretary of Labor and the Secretary from continuing to apply
special procedures and requirements to the admission and
employment of aliens in occupations involving the range
production of livestock.

``SEC. 218B. PROCEDURE FOR ADMISSION AND EXTENSION OF STAY OF
H-2A WORKERS.

``(a) Petitioning for Admission.--An employer, or an
association acting as an agent or joint employer for its
members, that seeks the admission into the United States of
an H-2A worker may file a petition with the Secretary. The
petition shall be accompanied by an accepted and currently
valid certification provided by the Secretary of Labor under
section 218(e)(2)(B) covering the petitioner.
``(b) Expedited Adjudication by the Secretary.--The
Secretary shall establish a procedure for expedited
adjudication of petitions filed under subsection (a) and
within 7 working days shall, by fax, cable, or other means
assuring expedited delivery, transmit a copy of notice of
action on the petition to the petitioner and, in the case of
approved petitions, to the appropriate immigration officer at
the port of entry or United States consulate (as the case may
be) where the petitioner has indicated that the alien
beneficiary (or beneficiaries) will apply for a visa or
admission to the United States.
``(c) Criteria for Admissibility.--
``(1) In general.--An H-2A worker shall be considered
admissible to the United States if the alien is otherwise
admissible under this section, section 218, and section 218A,
and the alien is not ineligible under paragraph (2).
``(2) Disqualification.--An alien shall be considered
inadmissible to the United States and ineligible for
nonimmigrant status under section 101(a)(15)(H)(ii)(a) if the
alien has, at any time during the past 5 years--
``(A) violated a material provision of this section,
including the requirement to promptly depart the United
States when the alien's authorized period of admission under
this section has expired; or
``(B) otherwise violated a term or condition of admission
into the United States as a nonimmigrant, including
overstaying the period of authorized admission as such a
nonimmigrant.
``(3) Waiver of ineligibility for unlawful presence.--
``(A) In general.--An alien who has not previously been
admitted into the United States pursuant to this section, and
who is otherwise eligible for admission in accordance with
paragraphs (1) and (2), shall not be deemed inadmissible by
virtue of section 212(a)(9)(B). If an alien described in the
preceding sentence is present in the United States, the alien
may apply from abroad for H-2A status, but may not be granted
that status in the United States.
``(B) Maintenance of waiver.--An alien provided an initial
waiver of ineligibility pursuant to subparagraph (A) shall
remain eligible for such waiver unless the alien violates the
terms of this section or again becomes ineligible under
section 212(a)(9)(B) by virtue of unlawful presence in the
United States after the date of the initial waiver of
ineligibility pursuant to subparagraph (A).
``(d) Period of Admission.--
``(1) In general.--The alien shall be admitted for the
period of employment in the application certified by the
Secretary of Labor pursuant to section 218(e)(2)(B), not to
exceed 10 months, supplemented by a period of not more than 1
week before the beginning of the period of employment for the
purpose of travel to the worksite and a period of 14 days
following the period of employment for the purpose of
departure or extension based on a subsequent offer of
employment, except that--
``(A) the alien is not authorized to be employed during
such 14-day period except in the employment for which the
alien was previously authorized; and
``(B) the total period of employment, including such 14-day
period, may not exceed 10 months.
``(2) Construction.--Nothing in this subsection shall limit
the authority of the Secretary to extend the stay of the
alien under any other provision of this Act.
``(e) Abandonment of Employment.--
``(1) In general.--An alien admitted or provided status
under section 101(a)(15)(H)(ii)(a) who abandons the
employment which was the basis for such admission or status
shall be considered to have failed to maintain nonimmigrant
status as an H-2A worker and shall depart the United States
or be subject to removal under section 237(a)(1)(C)(i).
``(2) Report by employer.--The employer, or association
acting as agent for the employer, shall notify the Secretary
not later than 7 days after an H-2A worker prematurely
abandons employment.
``(3) Removal by the secretary.--The Secretary shall
promptly remove from the United States any H-2A worker who
violates any term or condition of the worker's nonimmigrant
status.
``(4) Voluntary termination.--Notwithstanding paragraph
(1), an alien may voluntarily terminate his or her employment
if the alien promptly departs the United States upon
termination of such employment.
``(f) Replacement of Alien.--
``(1) In general.--Upon presentation of the notice to the
Secretary required by subsection (e)(2), the Secretary of
State shall promptly issue a visa to, and the Secretary shall
admit into the United States, an eligible alien designated by
the employer to replace an H-2A worker--
``(A) who abandons or prematurely terminates employment; or
``(B) whose employment is terminated after a United States
worker is employed pursuant to section 218(b)(2)(H)(iii), if
the United States worker voluntarily departs before the end
of the period of intended employment or if the employment
termination is for a lawful job-related reason.
``(2) Construction.--Nothing in this subsection is intended
to limit any preference required to be accorded United States
workers under any other provision of this Act.
``(g) Identification Document.--
``(1) In general.--Each alien authorized to be admitted
under section 101(a)(15)(H)(ii)(a) shall be provided an
identification and employment eligibility document to verify
eligibility for employment in the United States and verify
the alien's identity.
``(2) Requirements.--No identification and employment
eligibility document may be issued which does not meet the
following requirements:
``(A) The document shall be capable of reliably determining
whether--
``(i) the individual with the identification and employment
eligibility document whose eligibility is being verified is
in fact eligible for employment;
``(ii) the individual whose eligibility is being verified
is claiming the identity of another person; and
``(iii) the individual whose eligibility is being verified
is authorized to be admitted into, and employed in, the
United States as an H-2A worker.
``(B) The document shall be in a form that is resistant to
counterfeiting and to tampering.
``(C) The document shall--
``(i) be compatible with other databases of the Secretary
for the purpose of excluding aliens from benefits for which
they are not eligible and determining whether the alien is
unlawfully present in the United States; and
``(ii) be compatible with law enforcement databases to
determine if the alien has been convicted of criminal
offenses.
``(h) Extension of Stay of H-2A Aliens in the United
States.--
``(1) Extension of stay.--If an employer seeks approval to
employ an H-2A alien who is lawfully present in the United
States, the petition filed by the employer or an association
pursuant to subsection (a), shall request an extension of the
alien's stay and a change in the alien's employment.
``(2) Limitation on filing a petition for extension of
stay.--A petition may not be filed for an extension of an
alien's stay--
``(A) for a period of more than 10 months; or
``(B) to a date that is more than 3 years after the date of
the alien's last admission to the United States under this
section.
``(3) Work authorization upon filing a petition for
extension of stay.--
``(A) In general.--An alien who is lawfully present in the
United States may commence the employment described in a
petition under paragraph (1) on the date on which the
petition is filed.
``(B) Definition.--For purposes of subparagraph (A), the
term `file' means sending the petition by certified mail via
the United States Postal Service, return receipt requested,
or delivered by guaranteed commercial delivery which will
provide the employer with a documented acknowledgment of the
date of receipt of the petition.
``(C) Handling of petition.--The employer shall provide a
copy of the employer's petition to the alien, who shall keep
the petition

[[Page S984]]

with the alien's identification and employment eligibility
document as evidence that the petition has been filed and
that the alien is authorized to work in the United States.
``(D) Approval of petition.--Upon approval of a petition
for an extension of stay or change in the alien's authorized
employment, the Secretary shall provide a new or updated
employment eligibility document to the alien indicating the
new validity date, after which the alien is not required to
retain a copy of the petition.
``(4) Limitation on employment authorization of aliens
without valid identification and employment eligibility
document.--An expired identification and employment
eligibility document, together with a copy of a petition for
extension of stay or change in the alien's authorized
employment that complies with the requirements of paragraph
(1), shall constitute a valid work authorization document for
a period of not more than 60 days beginning on the date on
which such petition is filed, after which time only a
currently valid identification and employment eligibility
document shall be acceptable.
``(5) Limitation on an individual's stay in status.--
``(A) Maximum period.--The maximum continuous period of
authorized status as an H-2A worker (including any
extensions) is 3 years.
``(B) Requirement to remain outside the united states.--
``(i) In general.--Subject to clause (ii), in the case of
an alien outside the United States whose period of authorized
status as an H-2A worker (including any extensions) has
expired, the alien may not again apply for admission to the
United States as an H-2A worker unless the alien has remained
outside the United States for a continuous period equal to at
least \1/5\ the duration of the alien's previous period of
authorized status as an H-2A worker (including any
extensions).
``(ii) Exception.--Clause (i) shall not apply in the case
of an alien if the alien's period of authorized status as an
H-2A worker (including any extensions) was for a period of
not more than 10 months and such alien has been outside the
United States for at least 2 months during the 12 months
preceding the date the alien again is applying for admission
to the United States as an H-2A worker.
``(i) Special Rules for Aliens Employed as Sheepherders,
Goat Herders, or Dairy Workers.--Notwithstanding any
provision of the Agricultural Job Opportunities, Benefits,
and Security Act of 2007, an alien admitted under section
101(a)(15)(H)(ii)(a) for employment as a sheepherder, goat
herder, or dairy worker--
``(1) may be admitted for an initial period of 12 months;
``(2) subject to subsection (j)(5), may have such initial
period of admission extended for a period of up to 3 years;
and
``(3) shall not be subject to the requirements of
subsection (h)(5) (relating to periods of absence from the
United States).
``(j) Adjustment to Lawful Permanent Resident Status for
Aliens Employed as Sheepherders, Goat Herders, or Dairy
Workers.--
``(1) Eligible alien.--For purposes of this subsection, the
term `eligible alien' means an alien--
``(A) having nonimmigrant status under section
101(a)(15)(H)(ii)(a) based on employment as a sheepherder,
goat herder, or dairy worker;
``(B) who has maintained such nonimmigrant status in the
United States for a cumulative total of 36 months (excluding
any period of absence from the United States); and
``(C) who is seeking to receive an immigrant visa under
section 203(b)(3)(A)(iii).
``(2) Classification petition.--In the case of an eligible
alien, the petition under section 204 for classification
under section 203(b)(3)(A)(iii) may be filed by--
``(A) the alien's employer on behalf of the eligible alien;
or
``(B) the eligible alien.
``(3) No labor certification required.--Notwithstanding
section 203(b)(3)(C), no determination under section
212(a)(5)(A) is required with respect to an immigrant visa
described in paragraph (1)(C) for an eligible alien.
``(4) Effect of petition.--The filing of a petition
described in paragraph (2) or an application for adjustment
of status based on the approval of such a petition shall not
constitute evidence of an alien's ineligibility for
nonimmigrant status under section 101(a)(15)(H)(ii)(a).
``(5) Extension of stay.--The Secretary shall extend the
stay of an eligible alien having a pending or approved
classification petition described in paragraph (2) in 1-year
increments until a final determination is made on the alien's
eligibility for adjustment of status to that of an alien
lawfully admitted for permanent residence.
``(6) Construction.--Nothing in this subsection shall be
construed to prevent an eligible alien from seeking
adjustment of status in accordance with any other provision
of law.

``SEC. 218C. WORKER PROTECTIONS AND LABOR STANDARDS
ENFORCEMENT.

``(a) Enforcement Authority.--
``(1) Investigation of complaints.--
``(A) Aggrieved person or third-party complaints.--The
Secretary of Labor shall establish a process for the receipt,
investigation, and disposition of complaints respecting a
petitioner's failure to meet a condition specified in section
218(b), or an employer's misrepresentation of material facts
in an application under section 218(a). Complaints may be
filed by any aggrieved person or organization (including
bargaining representatives). No investigation or hearing
shall be conducted on a complaint concerning such a failure
or misrepresentation unless the complaint was filed not later
than 12 months after the date of the failure, or
misrepresentation, respectively. The Secretary of Labor shall
conduct an investigation under this subparagraph if there is
reasonable cause to believe that such a failure or
misrepresentation has occurred.
``(B) Determination on complaint.--Under such process, the
Secretary of Labor shall provide, within 30 days after the
date such a complaint is filed, for a determination as to
whether or not a reasonable basis exists to make a finding
described in subparagraph (C), (D), (E), or (G). If the
Secretary of Labor determines that such a reasonable basis
exists, the Secretary of Labor shall provide for notice of
such determination to the interested parties and an
opportunity for a hearing on the complaint, in accordance
with section 556 of title 5, United States Code, within 60
days after the date of the determination. If such a hearing
is requested, the Secretary of Labor shall make a finding
concerning the matter not later than 60 days after the date
of the hearing. In the case of similar complaints respecting
the same applicant, the Secretary of Labor may consolidate
the hearings under this subparagraph on such complaints.
``(C) Failures to meet conditions.--If the Secretary of
Labor finds, after notice and opportunity for a hearing, a
failure to meet a condition of paragraph (1)(A), (1)(B),
(1)(D), (1)(F), (2)(A), (2)(B), or (2)(G) of section 218(b),
a substantial failure to meet a condition of paragraph
(1)(C), (1)(E), (2)(C), (2)(D), (2)(E), or (2)(H) of section
218(b), or a material misrepresentation of fact in an
application under section 218(a)--
``(i) the Secretary of Labor shall notify the Secretary of
such finding and may, in addition, impose such other
administrative remedies (including civil money penalties in
an amount not to exceed $1,000 per violation) as the
Secretary of Labor determines to be appropriate; and
``(ii) the Secretary may disqualify the employer from the
employment of aliens described in section
101(a)(15)(H)(ii)(a) for a period of 1 year.
``(D) Willful failures and willful misrepresentations.--If
the Secretary of Labor finds, after notice and opportunity
for hearing, a willful failure to meet a condition of section
218(b), a willful misrepresentation of a material fact in an
application under section 218(a), or a violation of
subsection (d)(1)--
``(i) the Secretary of Labor shall notify the Secretary of
such finding and may, in addition, impose such other
administrative remedies (including civil money penalties in
an amount not to exceed $5,000 per violation) as the
Secretary of Labor determines to be appropriate;
``(ii) the Secretary of Labor may seek appropriate legal or
equitable relief to effectuate the purposes of subsection
(d)(1); and
``(iii) the Secretary may disqualify the employer from the
employment of H-2A workers for a period of 2 years.
``(E) Displacement of united states workers.--If the
Secretary of Labor finds, after notice and opportunity for
hearing, a willful failure to meet a condition of section
218(b) or a willful misrepresentation of a material fact in
an application under section 218(a), in the course of which
failure or misrepresentation the employer displaced a United
States worker employed by the employer during the period of
employment on the employer's application under section 218(a)
or during the period of 30 days preceding such period of
employment--
``(i) the Secretary of Labor shall notify the Secretary of
such finding and may, in addition, impose such other
administrative remedies (including civil money penalties in
an amount not to exceed $15,000 per violation) as the
Secretary of Labor determines to be appropriate; and
``(ii) the Secretary may disqualify the employer from the
employment of H-2A workers for a period of 3 years.
``(F) Limitations on civil money penalties.--The Secretary
of Labor shall not impose total civil money penalties with
respect to an application under section 218(a) in excess of
$90,000.
``(G) Failures to pay wages or required benefits.--If the
Secretary of Labor finds, after notice and opportunity for a
hearing, that the employer has failed to pay the wages, or
provide the housing allowance, transportation, subsistence
reimbursement, or guarantee of employment, required under
section 218A(b), the Secretary of Labor shall assess payment
of back wages, or other required benefits, due any United
States worker or H-2A worker employed by the employer in the
specific employment in question. The back wages or other
required benefits under section 218A(b) shall be equal to the
difference between the amount that should have been paid and
the amount that actually was paid to such worker.
``(2) Statutory construction.--Nothing in this section
shall be construed as limiting the authority of the Secretary
of Labor to conduct any compliance investigation under any
other labor law, including any law affecting migrant and
seasonal agricultural workers, or, in the absence of a
complaint under this section, under section 218 or 218A.

[[Page S985]]

``(b) Rights Enforceable by Private Right of Action.--H-2A
workers may enforce the following rights through the private
right of action provided in subsection (c), and no other
right of action shall exist under Federal or State law to
enforce such rights:
``(1) The providing of housing or a housing allowance as
required under section 218A(b)(1).
``(2) The reimbursement of transportation as required under
section 218A(b)(2).
``(3) The payment of wages required under section
218A(b)(3) when due.
``(4) The benefits and material terms and conditions of
employment expressly provided in the job offer described in
section 218(a)(2), not including the assurance to comply with
other Federal, State, and local labor laws described in
section 218A(c), compliance with which shall be governed by
the provisions of such laws.
``(5) The guarantee of employment required under section
218A(b)(4).
``(6) The motor vehicle safety requirements under section
218A(b)(5).
``(7) The prohibition of discrimination under subsection
(d)(2).
``(c) Private Right of Action.--
``(1) Mediation.--Upon the filing of a complaint by an H-2A
worker aggrieved by a violation of rights enforceable under
subsection (b), and within 60 days of the filing of proof of
service of the complaint, a party to the action may file a
request with the Federal Mediation and Conciliation Service
to assist the parties in reaching a satisfactory resolution
of all issues involving all parties to the dispute. Upon a
filing of such request and giving of notice to the parties,
the parties shall attempt mediation within the period
specified in subparagraph (B).
``(A) Mediation services.--The Federal Mediation and
Conciliation Service shall be available to assist in
resolving disputes arising under subsection (b) between H-2A
workers and agricultural employers without charge to the
parties.
``(B) 90-day limit.--The Federal Mediation and Conciliation
Service may conduct mediation or other nonbinding dispute
resolution activities for a period not to exceed 90 days
beginning on the date on which the Federal Mediation and
Conciliation Service receives the request for assistance
unless the parties agree to an extension of this period of
time.
``(C) Authorization.--
``(i) In general.--Subject to clause (ii), there are
authorized to be appropriated to the Federal Mediation and
Conciliation Service $500,000 for each fiscal year to carry
out this section.
``(ii) Mediation.--Notwithstanding any other provision of
law, the Director of the Federal Mediation and Conciliation
Service is authorized to conduct the mediation or other
dispute resolution activities from any other appropriated
funds available to the Director and to reimburse such
appropriated funds when the funds are appropriated pursuant
to this authorization, such reimbursement to be credited to
appropriations currently available at the time of receipt.
``(2) Maintenance of civil action in district court by
aggrieved person.--An H-2A worker aggrieved by a violation of
rights enforceable under subsection (b) by an agricultural
employer or other person may file suit in any district court
of the United States having jurisdiction over the parties,
without regard to the amount in controversy, without regard
to the citizenship of the parties, and without regard to the
exhaustion of any alternative administrative remedies under
this Act, not later than 3 years after the date the violation
occurs.
``(3) Election.--An H-2A worker who has filed an
administrative complaint with the Secretary of Labor may not
maintain a civil action under paragraph (2) unless a
complaint based on the same violation filed with the
Secretary of Labor under subsection (a)(1) is withdrawn
before the filing of such action, in which case the rights
and remedies available under this subsection shall be
exclusive.
``(4) Preemption of state contract rights.--Nothing in this
Act shall be construed to diminish the rights and remedies of
an H-2A worker under any other Federal or State law or
regulation or under any collective bargaining agreement,
except that no court or administrative action shall be
available under any State contract law to enforce the rights
created by this Act.
``(5) Waiver of rights prohibited.--Agreements by employees
purporting to waive or modify their rights under this Act
shall be void as contrary to public policy, except that a
waiver or modification of the rights or obligations in favor
of the Secretary of Labor shall be valid for purposes of the
enforcement of this Act. The preceding sentence may not be
construed to prohibit agreements to settle private disputes
or litigation.
``(6) Award of damages or other equitable relief.--
``(A) If the court finds that the respondent has
intentionally violated any of the rights enforceable under
subsection (b), it shall award actual damages, if any, or
equitable relief.
``(B) Any civil action brought under this section shall be
subject to appeal as provided in chapter 83 of title 28,
United States Code.
``(7) Workers' compensation benefits; exclusive remedy.--
``(A) Notwithstanding any other provision of this section,
where a State's workers' compensation law is applicable and
coverage is provided for an H-2A worker, the workers'
compensation benefits shall be the exclusive remedy for the
loss of such worker under this section in the case of bodily
injury or death in accordance with such State's workers'
compensation law.
``(B) The exclusive remedy prescribed in subparagraph (A)
precludes the recovery under paragraph (6) of actual damages
for loss from an injury or death but does not preclude other
equitable relief, except that such relief shall not include
back or front pay or in any manner, directly or indirectly,
expand or otherwise alter or affect--
``(i) a recovery under a State workers' compensation law;
or
``(ii) rights conferred under a State workers' compensation
law.
``(8) Tolling of statute of limitations.--If it is
determined under a State workers' compensation law that the
workers' compensation law is not applicable to a claim for
bodily injury or death of an H-2A worker, the statute of
limitations for bringing an action for actual damages for
such injury or death under subsection (c) shall be tolled for
the period during which the claim for such injury or death
under such State workers' compensation law was pending. The
statute of limitations for an action for actual damages or
other equitable relief arising out of the same transaction or
occurrence as the injury or death of the H-2A worker shall be
tolled for the period during which the claim for such injury
or death was pending under the State workers' compensation
law.
``(9) Preclusive effect.--Any settlement by an H-2A worker
and an H-2A employer or any person reached through the
mediation process required under subsection (c)(1) shall
preclude any right of action arising out of the same facts
between the parties in any Federal or State court or
administrative proceeding, unless specifically provided
otherwise in the settlement agreement.
``(10) Settlements.--Any settlement by the Secretary of
Labor with an H-2A employer on behalf of an H-2A worker of a
complaint filed with the Secretary of Labor under this
section or any finding by the Secretary of Labor under
subsection (a)(1)(B) shall preclude any right of action
arising out of the same facts between the parties under any
Federal or State court or administrative proceeding, unless
specifically provided otherwise in the settlement agreement.
``(d) Discrimination Prohibited.--
``(1) In general.--It is a violation of this subsection for
any person who has filed an application under section 218(a),
to intimidate, threaten, restrain, coerce, blacklist,
discharge, or in any other manner discriminate against an
employee (which term, for purposes of this subsection,
includes a former employee and an applicant for employment)
because the employee has disclosed information to the
employer, or to any other person, that the employee
reasonably believes evidences a violation of section 218 or
218A or any rule or regulation pertaining to section 218 or
218A, or because the employee cooperates or seeks to
cooperate in an investigation or other proceeding concerning
the employer's compliance with the requirements of section
218 or 218A or any rule or regulation pertaining to either of
such sections.
``(2) Discrimination against h-2a workers.--It is a
violation of this subsection for any person who has filed an
application under section 218(a), to intimidate, threaten,
restrain, coerce, blacklist, discharge, or in any manner
discriminate against an H-2A employee because such worker
has, with just cause, filed a complaint with the Secretary of
Labor regarding a denial of the rights enumerated and
enforceable under subsection (b) or instituted, or caused to
be instituted, a private right of action under subsection (c)
regarding the denial of the rights enumerated under
subsection (b), or has testified or is about to testify in
any court proceeding brought under subsection (c).
``(e) Authorization To Seek Other Appropriate Employment.--
The Secretary of Labor and the Secretary shall establish a
process under which an H-2A worker who files a complaint
regarding a violation of subsection (d) and is otherwise
eligible to remain and work in the United States may be
allowed to seek other appropriate employment in the United
States for a period not to exceed the maximum period of stay
authorized for such nonimmigrant classification.
``(f) Role of Associations.--
``(1) Violation by a member of an association.--An employer
on whose behalf an application is filed by an association
acting as its agent is fully responsible for such
application, and for complying with the terms and conditions
of sections 218 and 218A, as though the employer had filed
the application itself. If such an employer is determined,
under this section, to have committed a violation, the
penalty for such violation shall apply only to that member of
the association unless the Secretary of Labor determines that
the association or other member participated in, had
knowledge, or reason to know, of the violation, in which case
the penalty shall be invoked against the association or other
association member as well.
``(2) Violations by an association acting as an employer.--
If an association filing an application as a sole or joint
employer is determined to have committed a violation under
this section, the penalty for such violation shall apply only
to the association unless the Secretary of Labor determines
that an association member or members participated in or had
knowledge, or reason to

[[Page S986]]

know of the violation, in which case the penalty shall be
invoked against the association member or members as well.

``SEC. 218D. DEFINITIONS.

``For purposes of this section and section 218, 218A, 218B,
and 218C:
``(1) Agricultural employment.--The term `agricultural
employment' means any service or activity that is considered
to be agricultural under section 3(f) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 203(f)) or agricultural
labor under section 3121(g) of the Internal Revenue Code of
1986 or the performance of agricultural labor or services
described in section 101(a)(15)(H)(ii)(a).
``(2) Bona fide union.--The term `bona fide union' means
any organization in which employees participate and which
exists for the purpose of dealing with employers concerning
grievances, labor disputes, wages, rates of pay, hours of
employment, or other terms and conditions of work for
agricultural employees. Such term does not include an
organization formed, created, administered, supported,
dominated, financed, or controlled by an employer or employer
association or its agents or representatives.
``(3) Displace.--The term `displace', in the case of an
application with respect to 1 or more H-2A workers by an
employer, means laying off a United States worker from a job
for which the H-2A worker or workers is or are sought.
``(4) Eligible.--The term `eligible', when used with
respect to an individual, means an individual who is not an
unauthorized alien (as defined in section 274A).
``(5) Employer.--The term `employer' means any person or
entity, including any farm labor contractor and any
agricultural association, that employs workers in
agricultural employment.
``(6) H-2A employer.--The term `H-2A employer' means an
employer who seeks to hire 1 or more nonimmigrant aliens
described in section 101(a)(15)(H)(ii)(a).
``(7) H-2A worker.--The term `H-2A worker' means a
nonimmigrant described in section 101(a)(15)(H)(ii)(a).
``(8) Job opportunity.--The term `job opportunity' means a
job opening for temporary or seasonal full-time employment at
a place in the United States to which United States workers
can be referred.
``(9) Laying off.--
``(A) In general.--The term `laying off', with respect to a
worker--
``(i) means to cause the worker's loss of employment, other
than through a discharge for inadequate performance,
violation of workplace rules, cause, voluntary departure,
voluntary retirement, contract impossibility (as described in
section 218A(b)(4)(D)), or temporary suspension of employment
due to weather, markets, or other temporary conditions; but
``(ii) does not include any situation in which the worker
is offered, as an alternative to such loss of employment, a
similar employment opportunity with the same employer (or, in
the case of a placement of a worker with another employer
under section 218(b)(2)(E), with either employer described in
such section) at equivalent or higher compensation and
benefits than the position from which the employee was
discharged, regardless of whether or not the employee accepts
the offer.
``(B) Statutory construction.--Nothing in this paragraph is
intended to limit an employee's rights under a collective
bargaining agreement or other employment contract.
``(10) Regulatory drought.--The term `regulatory drought'
means a decision subsequent to the filing of the application
under section 218 by an entity not under the control of the
employer making such filing which restricts the employer's
access to water for irrigation purposes and reduces or limits
the employer's ability to produce an agricultural commodity,
thereby reducing the need for labor.
``(11) Seasonal.--Labor is performed on a `seasonal' basis
if--
``(A) ordinarily, it pertains to or is of the kind
exclusively performed at certain seasons or periods of the
year; and
``(B) from its nature, it may not be continuous or carried
on throughout the year.
``(12) Secretary.--Except as otherwise provided, the term
`Secretary' means the Secretary of Homeland Security.
``(13) Temporary.--A worker is employed on a `temporary'
basis where the employment is intended not to exceed 10
months.
``(14) United states worker.--The term `United States
worker' means any worker, whether a national of the United
States, an alien lawfully admitted for permanent residence,
or any other alien, who is authorized to work in the job
opportunity within the United States, except an alien
admitted or otherwise provided status under section
101(a)(15)(H)(ii)(a).''.
(b) Table of Contents.--The table of contents of the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by striking the item relating to section 218 and
inserting the following:

``Sec. 218. H-2A employer applications.
``Sec. 218A. H-2A employment requirements.
``Sec. 218B. Procedure for admission and extension of stay of H-2A
workers.
``Sec. 218C. Worker protections and labor standards enforcement.
``Sec. 218D. Definitions.''.

Subtitle C--Miscellaneous Provisions

SEC. 241. DETERMINATION AND USE OF USER FEES.

(a) Schedule of Fees.--The Secretary shall establish and
periodically adjust a schedule of fees for the employment of
aliens pursuant to the amendment made by section 231(a) of
this Act and a collection process for such fees from
employers. Such fees shall be the only fees chargeable to
employers for services provided under such amendment.
(b) Determination of Schedule.--
(1) In general.--The schedule under subsection (a) shall
reflect a fee rate based on the number of job opportunities
indicated in the employer's application under section 218 of
the Immigration and Nationality Act, as amended by section
231 of this Act, and sufficient to provide for the direct
costs of providing services related to an employer's
authorization to employ aliens pursuant to the amendment made
by section 231(a) of this Act, to include the certification
of eligible employers, the issuance of documentation, and the
admission of eligible aliens.
(2) Procedure.--
(A) In general.--In establishing and adjusting such a
schedule, the Secretary shall comply with Federal cost
accounting and fee setting standards.
(B) Publication and comment.--The Secretary shall publish
in the Federal Register an initial fee schedule and
associated collection process and the cost data or estimates
upon which such fee schedule is based, and any subsequent
amendments thereto, pursuant to which public comment shall be
sought and a final rule issued.
(c) Use of Proceeds.--Notwithstanding any other provision
of law, all proceeds resulting from the payment of the fees
pursuant to the amendment made by section 231(a) of this Act
shall be available without further appropriation and shall
remain available without fiscal year limitation to reimburse
the Secretary, the Secretary of State, and the Secretary of
Labor for the costs of carrying out sections 218 and 218B of
the Immigration and Nationality Act, as amended and added,
respectively, by section 231 of this Act, and the provisions
of this title.

SEC. 242. REGULATIONS.

(a) Requirement for the Secretary to Consult.--The
Secretary shall consult with the Secretary of Labor and the
Secretary of Agriculture during the promulgation of all
regulations to implement the duties of the Secretary under
this title and the amendments made by this title.
(b) Requirement for the Secretary of State to Consult.--The
Secretary of State shall consult with the Secretary, the
Secretary of Labor, and the Secretary of Agriculture on all
regulations to implement the duties of the Secretary of State
under this title and the amendments made by this title.
(c) Requirement for the Secretary of Labor to Consult.--The
Secretary of Labor shall consult with the Secretary of
Agriculture and the Secretary on all regulations to implement
the duties of the Secretary of Labor under this title and the
amendments made by this title.
(d) Deadline for Issuance of Regulations.--All regulations
to implement the duties of the Secretary, the Secretary of
State, and the Secretary of Labor created under sections 218,
218A, 218B, 218C, and 218D of the Immigration and Nationality
Act, as amended or added by section 231 of this Act, shall
take effect on the effective date of section 231 and shall be
issued not later than 1 year after the date of enactment of
this Act.

SEC. 243. REPORTS TO CONGRESS.

(a) Annual Report.--Not later than September 30 of each
year, the Secretary shall submit a report to Congress that
identifies, for the previous year--
(1) the number of job opportunities approved for employment
of aliens admitted under section 101(a)(15)(H)(ii)(a) of the
Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(ii)(a)), and the number of workers actually
admitted, disaggregated by State and by occupation;
(2) the number of such aliens reported to have abandoned
employment pursuant to subsection 218B(e)(2) of such Act;
(3) the number of such aliens who departed the United
States within the period specified in subsection 218B(d) of
such Act;
(4) the number of aliens who applied for adjustment of
status pursuant to section 211(a);
(5) the number of such aliens whose status was adjusted
under section 211(a);
(6) the number of aliens who applied for permanent
residence pursuant to section 213(c); and
(7) the number of such aliens who were approved for
permanent residence pursuant section 213(c).
(b) Implementation Report.--Not later than 180 days after
the date of the enactment of this Act, the Secretary shall
prepare and submit to Congress a report that describes the
measures being taken and the progress made in implementing
this Act.

SEC. 244. EFFECTIVE DATE.

Except as otherwise provided, sections 231 and 241 shall
take effect 1 year after the date of the enactment of this
Act.
______

SA 169. Mr. ALLARD submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the end, add the following new section:

[[Page S987]]

SEC. 4. SHARING OF SOCIAL SECURITY DATA FOR IMMIGRATION
ENFORCEMENT PURPOSES.

(a) Social Security Account Numbers.--Section 264(f) of the
Immigration and Nationality Act (8 U.S.C. 1304(f)) is amended
to read as follows:
``(f) Notwithstanding any other provision of law (including
section 6103 of the Internal Revenue Code of 1986), the
Secretary of Homeland Security, the Secretary of Labor, and
the Attorney General are authorized to require any individual
to provide his or her own social security account number for
purposes of inclusion in any record of the individual
maintained by either such Secretary or the Attorney General,
or of inclusion in any application, document, or form
provided under or required by the immigration laws.''.
(b) Exchange of Information.--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:
``(2)(A) Notwithstanding any other provision of law
(including section 6103 of the Internal Revenue Code of 1986)
if earnings are reported on or after January 1, 1997, to the
Social Security Administration on a social security account
number issued to an alien not authorized to work in the
United States, the Commissioner of Social Security 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.
``(B) The information described in subparagraph (A) shall
be provided in an electronic form agreed upon by the
Commissioner and the Secretary.
``(3)(A) Notwithstanding any other provision of law
(including section 6103 of the Internal Revenue Code of
1986), if a social security account number was used with
multiple names, the Commissioner of Social Security shall
provide the Secretary of Homeland Security with information
regarding the name, date of birth, and address of each
individual who used that social security account number, and
the name and address of the person reporting the earnings for
an individual who used that social security account number.
``(B) The information described in subparagraph (A) shall
be provided in an electronic form agreed upon by the
Commissioner and the Secretary for the sole purpose of
enforcing the immigration laws.
``(C) The Secretary, in consultation with the Commissioner,
may limit or modify the requirements of this paragraph, as
appropriate, to identify the cases posing the highest
possibility of fraudulent use of social security account
numbers related to violation of the immigration laws.
``(4)(A) Notwithstanding any other provision of law
(including section 6103 of the Internal Revenue Code of
1986), if more than one person reports earnings for an
individual during a single tax year, the Commissioner of
Social Security shall provide the Secretary of Homeland
Security information regarding the name, date of birth, and
address of the individual, and the name and address of the
each person reporting earnings for that individual.
``(B) The information described in subparagraph (A) shall
be provided in an electronic form agreed upon by the
Commissioner and the Secretary for the sole purpose of
enforcing the immigration laws.
``(C) The Secretary, in consultation with the Commissioner,
may limit or modify the requirements of this paragraph, as
appropriate, to identify the cases posing the highest
possibility of fraudulent use of social security account
numbers related to violation of the immigration laws.
``(5)(A) The Commissioner of Social Security shall perform,
at the request to the Secretary of Homeland Security, any
search or manipulation of records held by the Commissioner if
the Secretary certifies that the purpose of the search or
manipulation is to obtain information that is likely to
assist in identifying individuals (and their employers) who
are using false names or social security numbers, who are
sharing a single valid name and social security number among
multiple individuals, who are using the social security
number of a person who is deceased, too young to work, or not
authorized to work, or who are otherwise engaged in a
violation of the immigration laws. The Commissioner shall
provide the results of such search or manipulation to the
Secretary, notwithstanding any other provision law (including
section 6103 of the Internal Revenue Code of 1986).
``(B) The Secretary shall transfer to the Commissioner the
funds necessary to cover the costs directly incurred by the
Commissioner in carrying out each search or manipulation
requested by the Secretary under subparagraph (A).''.
(c) False Claims of Citizenship by Nationals of the United
States.--Section 212(a)(6)(C)(ii)(I) of the Immigration and
Nationality Act (8 U.S.C. 1182(a)(6)(C)(ii)(I)) is amended by
inserting ``or national'' after ``citizen''.
______

SA 170. Mr. GREGG (for himself, Mr. Sununu, and Mr. Isakson)
submitted an amendment intended to be proposed by him to the bill H.R.
2, to amend the Fair Labor Standards Act of 1938 to provide for an
increase in the Federal minimum wage; which was ordered to lie on the
table; as follows:

At the appropriate place, insert the following:

SEC. __. EMPLOYEE OPTION TIME.

(a) Biweekly Work Programs.--
(1) In general.--The Fair Labor Standards Act of 1938 is
amended by inserting after section 13 (29 U.S.C. 213) the
following:

``SEC. 13A. BIWEEKLY WORK PROGRAMS.

``(a) Voluntary Participation.--
``(1) Option of employee.--Except as provided in paragraph
(2), no employee may be required to participate in a program
described in this section. Participation in a program
described in this section may not be a condition of
employment.
``(2) Collective bargaining agreement.--In a case in which
a valid collective bargaining agreement exists between an
employer and the labor organization that has been certified
or recognized as the representative of the employees of the
employer under applicable law, an employee may only be
required to participate in such a program in accordance with
the agreement.
``(b) Biweekly Work Programs.--
``(1) In general.--Notwithstanding section 7, an employer
may establish biweekly work programs that--
``(A) allow the use of a biweekly work schedule--
``(i) that consists of a basic work requirement of not more
than 80 hours, over a 2-week period; and
``(ii) in which more than 40 hours of the work requirement
may occur in a week of the period, except that no more than
10 hours may be shifted between the 2 weeks involved; and
``(B) provides that an employee participating in the
program is compensated for overtime hours in accordance with
paragraph (4).
``(2) Conditions.--An employer may carry out a biweekly
work program described in paragraph (1) for employees only
pursuant to the following:
``(A) Agreement.--The program may be carried out only in
accordance with--
``(i) applicable provisions of a collective bargaining
agreement between the employer and the labor organization
that has been certified or recognized as the representative
of the employees under applicable law; or
``(ii) in the case of an employee who is not represented by
a labor organization described in clause (i), a written
agreement arrived at between the employer and employee before
the performance of the work involved if the agreement was
entered into knowingly and voluntarily by such employee and
was not a condition of employment.
``(B) Statement of voluntary participation.--The program
shall apply to an employee described in subparagraph (A)(ii)
if such employee has affirmed, in a written statement that is
made, kept, and preserved in accordance with section 11(c),
that the employee has voluntarily chosen to participate in
the program.
``(C) Minimum service.--No employee may participate, or
agree to participate, in the program unless the employee has
been employed for at least 12 months by the employer, and for
at least 1,250 hours of service with the employer during the
previous 12-month period.
``(3) Compensation for hours in schedule.--Notwithstanding
section 7, in the case of an employee participating in such a
biweekly work program, the employee shall be compensated for
each hour in such a biweekly work schedule at a rate not less
than the regular rate at which the employee is employed.
``(4) Overtime compensation provision.--An employee
participating in such a biweekly work program shall be
compensated for each overtime hour at a rate not less than
one and one-half times the regular rate at which the employee
is employed, in accordance with section 7(a)(1).
``(5) Discontinuance of program or withdrawal.--
``(A) Discontinuance of program.--An employer that has
established a biweekly work program under paragraph (1) may
discontinue the program for employees described in paragraph
(2)(A)(ii) after providing 30 days' written notice to the
employees who are subject to an agreement described in
paragraph (2)(A)(ii).
``(B) Withdrawal.--An employee may withdraw an agreement
described in paragraph (2)(A)(ii) at the end of any 2-week
period described in paragraph (1)(A)(i), by submitting a
written notice of withdrawal to the employer of the employee.
``(c) Prohibition of Coercion.--
``(1) In general.--An employer shall not directly or
indirectly intimidate, threaten, or coerce, or attempt to
intimidate, threaten, or coerce, any employee for the purpose
of interfering with the rights of the employee under this
section to elect or not to elect to work a biweekly work
schedule.
``(2) Definition.--In paragraph (1), the term `intimidate,
threaten, or coerce' includes promising to confer or
conferring any benefit (such as appointment, promotion, or
compensation) or effecting or threatening to effect any
reprisal (such as deprivation of appointment, promotion, or
compensation).
``(d) Definitions.--In this section:
``(1) Basic work requirement.--The term `basic work
requirement' means the number of hours, excluding overtime
hours, that an employee is required to work or is required to
account for by leave or otherwise.

[[Page S988]]

``(2) Collective bargaining.--The term `collective
bargaining' means the performance of the mutual obligation of
the representative of an employer and the labor organization
that has been certified or recognized as the representative
of the employees of the employer under applicable law to meet
at reasonable times and to consult and bargain in a good-
faith effort to reach agreement with respect to the
conditions of employment affecting such employees and to
execute, if requested by either party, a written document
incorporating any collective bargaining agreement reached,
but the obligation referred to in this paragraph shall not
compel either party to agree to a proposal or to make a
concession.
``(3) Collective bargaining agreement.--The term
`collective bargaining agreement' means an agreement entered
into as a result of collective bargaining.
``(4) Employee.--The term `employee' means an individual--
``(A) who is an employee (as defined in section 3);
``(B) who is not an employee of a public agency; and
``(C) to whom section 7(a) applies.
``(5) Employer.--The term `employer' does not include a
public agency.
``(6) Overtime hours.--The term `overtime hours' when used
with respect to biweekly work programs under subsection (b),
means all hours worked in excess of the biweekly work
schedule involved, in excess of the allotted 50 hours a week,
or in excess of the allotted 80 hours in the 2-week period
involved, that are requested in advance by an employer.
``(7) Regular rate.--The term `regular rate' has the
meaning given the term in section 7(e).''.
(2) Remedies.--
(A) Prohibitions.--Section 15(a)(3) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
(i) by inserting ``(A)'' after ``(3)'';
(ii) by adding ``or'' after the semicolon; and
(iii) by adding at the end the following:
``(B) to violate any of the provisions of section 13A;''.
(B) Remedies and sanctions.--Section 16 of the Fair Labor
Standards Act of 1938 (29 U.S.C. 216) is amended--
(i) in subsection (c)--

(I) in the first sentence--

(aa) by inserting after ``7 of this Act'' the following:
``, or of the appropriate legal or monetary equitable relief
owing to any employee or employees under section 13A''; and
(bb) by striking ``wages or unpaid overtime compensation
and'' and inserting ``wages, unpaid overtime compensation, or
legal or monetary equitable relief, as appropriate, and'';

(II) in the second sentence, by striking ``wages or
overtime compensation and'' and inserting ``wages, unpaid
overtime compensation, or legal or monetary equitable relief,
as appropriate, and''; and
(III) in the third sentence--

(aa) by inserting after ``first sentence of such
subsection'' the following: ``, or the second sentence of
such subsection in the event of a violation of section
13A,''; and
(bb) by striking ``wages or unpaid overtime compensation
under sections 6 and 7 or'' and inserting ``wages, unpaid
overtime compensation, or legal or monetary equitable relief,
as appropriate, or''; and
(ii) in subsection (e)--

(I) in the second sentence, by striking ``section 6 or 7''
and inserting ``section 6, 7, or 13A''; and
(II) in the fourth sentence, in paragraph (3), by striking
``15(a)(4) or'' and inserting ``15(a)(4), a violation of
section 15(a)(3)(B), or''.

(3) Notice to employees.--Not later than 30 days after the
date of enactment of this section, the Secretary of Labor
shall revise the materials the Secretary provides, under
regulations contained in section 516.4 of title 29, Code of
Federal Regulations, to employers for purposes of a notice
explaining the Fair Labor Standards Act of 1938 (29 U.S.C.
201 et seq.) to employees so that the notice reflects the
amendments made to the Act by this section.
(b) Congressional Coverage.--Section 203 of the
Congressional Accountability Act of 1995 (2 U.S.C. 1313) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``and section 12(c)'' and
inserting ``section 12(c), and section 13A''; and
(B) by striking paragraph (3);
(2) in subsection (b)--
(A) by striking ``The remedy'' and inserting the following:
``(1) In general.--Except as provided in paragraph (2), the
remedy''; and
(B) by adding at the end the following:
``(2) Biweekly work programs and flexible credit hours
programs.--The remedy for a violation of subsection (a)
relating to the requirements of section 13A of the Fair Labor
Standards Act of 1938 shall be such remedy as would be
appropriate if awarded under sections 16 and 17 of such Act
(29 U.S.C. 216, 217) for such a violation.''; and
(3) in subsection (c), by striking paragraph (4).
(c) Termination.--The authority provided by this section
and the amendments made by this section terminates 5 years
after the date of enactment of this section.
______

SA 171. Mr. GREGG (for himself, Mr. Sununu, and Mr. Isakson)
submitted an amendment intended to be proposed to amendment SA 100
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 2, to amend the
Fair Labor Standards Act of 1938 to provide for an increase in the
Federal minimum wage; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC. __. EMPLOYEE OPTION TIME.

(a) Biweekly Work Programs.--
(1) In general.--The Fair Labor Standards Act of 1938 is
amended by inserting after section 13 (29 U.S.C. 213) the
following:

``SEC. 13A. BIWEEKLY WORK PROGRAMS.

``(a) Voluntary Participation.--
``(1) Option of employee.--Except as provided in paragraph
(2), no employee may be required to participate in a program
described in this section. Participation in a program
described in this section may not be a condition of
employment.
``(2) Collective bargaining agreement.--In a case in which
a valid collective bargaining agreement exists between an
employer and the labor organization that has been certified
or recognized as the representative of the employees of the
employer under applicable law, an employee may only be
required to participate in such a program in accordance with
the agreement.
``(b) Biweekly Work Programs.--
``(1) In general.--Notwithstanding section 7, an employer
may establish biweekly work programs that--
``(A) allow the use of a biweekly work schedule--
``(i) that consists of a basic work requirement of not more
than 80 hours, over a 2-week period; and
``(ii) in which more than 40 hours of the work requirement
may occur in a week of the period, except that no more than
10 hours may be shifted between the 2 weeks involved; and
``(B) provides that an employee participating in the
program is compensated for overtime hours in accordance with
paragraph (4).
``(2) Conditions.--An employer may carry out a biweekly
work program described in paragraph (1) for employees only
pursuant to the following:
``(A) Agreement.--The program may be carried out only in
accordance with--
``(i) applicable provisions of a collective bargaining
agreement between the employer and the labor organization
that has been certified or recognized as the representative
of the employees under applicable law; or
``(ii) in the case of an employee who is not represented by
a labor organization described in clause (i), a written
agreement arrived at between the employer and employee before
the performance of the work involved if the agreement was
entered into knowingly and voluntarily by such employee and
was not a condition of employment.
``(B) Statement of voluntary participation.--The program
shall apply to an employee described in subparagraph (A)(ii)
if such employee has affirmed, in a written statement that is
made, kept, and preserved in accordance with section 11(c),
that the employee has voluntarily chosen to participate in
the program.
``(C) Minimum service.--No employee may participate, or
agree to participate, in the program unless the employee has
been employed for at least 12 months by the employer, and for
at least 1,250 hours of service with the employer during the
previous 12-month period.
``(3) Compensation for hours in schedule.--Notwithstanding
section 7, in the case of an employee participating in such a
biweekly work program, the employee shall be compensated for
each hour in such a biweekly work schedule at a rate not less
than the regular rate at which the employee is employed.
``(4) Overtime compensation provision.--An employee
participating in such a biweekly work program shall be
compensated for each overtime hour at a rate not less than
one and one-half times the regular rate at which the employee
is employed, in accordance with section 7(a)(1).
``(5) Discontinuance of program or withdrawal.--
``(A) Discontinuance of program.--An employer that has
established a biweekly work program under paragraph (1) may
discontinue the program for employees described in paragraph
(2)(A)(ii) after providing 30 days' written notice to the
employees who are subject to an agreement described in
paragraph (2)(A)(ii).
``(B) Withdrawal.--An employee may withdraw an agreement
described in paragraph (2)(A)(ii) at the end of any 2-week
period described in paragraph (1)(A)(i), by submitting a
written notice of withdrawal to the employer of the employee.
``(c) Prohibition of Coercion.--
``(1) In general.--An employer shall not directly or
indirectly intimidate, threaten, or coerce, or attempt to
intimidate, threaten, or coerce, any employee for the purpose
of interfering with the rights of the employee under this
section to elect or not to elect to work a biweekly work
schedule.
``(2) Definition.--In paragraph (1), the term `intimidate,
threaten, or coerce' includes promising to confer or
conferring any benefit (such as appointment, promotion, or
compensation) or effecting or threatening to effect any
reprisal (such as deprivation of appointment, promotion, or
compensation).
``(d) Definitions.--In this section:
``(1) Basic work requirement.--The term `basic work
requirement' means the number of hours, excluding overtime
hours, that an

[[Page S989]]

employee is required to work or is required to account for by
leave or otherwise.
``(2) Collective bargaining.--The term `collective
bargaining' means the performance of the mutual obligation of
the representative of an employer and the labor organization
that has been certified or recognized as the representative
of the employees of the employer under applicable law to meet
at reasonable times and to consult and bargain in a good-
faith effort to reach agreement with respect to the
conditions of employment affecting such employees and to
execute, if requested by either party, a written document
incorporating any collective bargaining agreement reached,
but the obligation referred to in this paragraph shall not
compel either party to agree to a proposal or to make a
concession.
``(3) Collective bargaining agreement.--The term
`collective bargaining agreement' means an agreement entered
into as a result of collective bargaining.
``(4) Employee.--The term `employee' means an individual--
``(A) who is an employee (as defined in section 3);
``(B) who is not an employee of a public agency; and
``(C) to whom section 7(a) applies.
``(5) Employer.--The term `employer' does not include a
public agency.
``(6) Overtime hours.--The term `overtime hours' when used
with respect to biweekly work programs under subsection (b),
means all hours worked in excess of the biweekly work
schedule involved, in excess of the allotted 50 hours a week,
or in excess of the allotted 80 hours in the 2-week period
involved, that are requested in advance by an employer.
``(7) Regular rate.--The term `regular rate' has the
meaning given the term in section 7(e).''.
(2) Remedies.--
(A) Prohibitions.--Section 15(a)(3) of the Fair Labor
Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
(i) by inserting ``(A)'' after ``(3)'';
(ii) by adding ``or'' after the semicolon; and
(iii) by adding at the end the following:
``(B) to violate any of the provisions of section 13A;''.
(B) Remedies and sanctions.--Section 16 of the Fair Labor
Standards Act of 1938 (29 U.S.C. 216) is amended--
(i) in subsection (c)--

(I) in the first sentence--

(aa) by inserting after ``7 of this Act'' the following:
``, or of the appropriate legal or monetary equitable relief
owing to any employee or employees under section 13A''; and
(bb) by striking ``wages or unpaid overtime compensation
and'' and inserting ``wages, unpaid overtime compensation, or
legal or monetary equitable relief, as appropriate, and'';

(II) in the second sentence, by striking ``wages or
overtime compensation and'' and inserting ``wages, unpaid
overtime compensation, or legal or monetary equitable relief,
as appropriate, and''; and
(III) in the third sentence--

(aa) by inserting after ``first sentence of such
subsection'' the following: ``, or the second sentence of
such subsection in the event of a violation of section
13A,''; and
(bb) by striking ``wages or unpaid overtime compensation
under sections 6 and 7 or'' and inserting ``wages, unpaid
overtime compensation, or legal or monetary equitable relief,
as appropriate, or''; and
(ii) in subsection (e)--

(I) in the second sentence, by striking ``section 6 or 7''
and inserting ``section 6, 7, or 13A''; and
(II) in the fourth sentence, in paragraph (3), by striking
``15(a)(4) or'' and inserting ``15(a)(4), a violation of
section 15(a)(3)(B), or''.

(3) Notice to employees.--Not later than 30 days after the
date of enactment of this section, the Secretary of Labor
shall revise the materials the Secretary provides, under
regulations contained in section 516.4 of title 29, Code of
Federal Regulations, to employers for purposes of a notice
explaining the Fair Labor Standards Act of 1938 (29 U.S.C.
201 et seq.) to employees so that the notice reflects the
amendments made to the Act by this section.
(b) Congressional Coverage.--Section 203 of the
Congressional Accountability Act of 1995 (2 U.S.C. 1313) is
amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``and section 12(c)'' and
inserting ``section 12(c), and section 13A''; and
(B) by striking paragraph (3);
(2) in subsection (b)--
(A) by striking ``The remedy'' and inserting the following:
``(1) In general.--Except as provided in paragraph (2), the
remedy''; and
(B) by adding at the end the following:
``(2) Biweekly work programs and flexible credit hours
programs.--The remedy for a violation of subsection (a)
relating to the requirements of section 13A of the Fair Labor
Standards Act of 1938 shall be such remedy as would be
appropriate if awarded under sections 16 and 17 of such Act
(29 U.S.C. 216, 217) for such a violation.''; and
(3) in subsection (c), by striking paragraph (4).
(c) Termination.--The authority provided by this section
and the amendments made by this section terminates 5 years
after the date of enactment of this section.
______

SA 172. Mr. ROBERTS submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place insert the following:

SEC. __. AGRICULTURAL CHEMICALS SECURITY CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended
by adding at the end the following new section:

``SEC. 45O. AGRICULTURAL CHEMICALS SECURITY CREDIT.

``(a) In General.--For purposes of section 38, in the case
of an eligible agricultural business, the agricultural
chemicals security credit determined under this section for
the taxable year is 30 percent of the qualified security
expenditures for the taxable year.
``(b) Facility Limitation.--The amount of the credit
determined under subsection (a) with respect to any facility
for any taxable year shall not exceed--
``(1) $100,000, reduced by
``(2) the aggregate amount of credits determined under
subsection (a) with respect to such facility for the 5 prior
taxable years.
``(c) Annual Limitation.--The amount of the credit
determined under subsection (a) with respect to any taxpayer
for any taxable year shall not exceed $2,000,000.
``(d) Qualified Chemical Security Expenditure.--For
purposes of this section, the term `qualified chemical
security expenditure' means, with respect to any eligible
agricultural business for any taxable year, any amount paid
or incurred by such business during such taxable year for--
``(1) employee security training and background checks,
``(2) limitation and prevention of access to controls of
specified agricultural chemicals stored at the facility,
``(3) tagging, locking tank valves, and chemical additives
to prevent the theft of specified agricultural chemicals or
to render such chemicals unfit for illegal use,
``(4) protection of the perimeter of specified agricultural
chemicals,
``(5) installation of security lighting, cameras, recording
equipment, and intrusion detection sensors,
``(6) implementation of measures to increase computer or
computer network security,
``(7) conducting a security vulnerability assessment,
``(8) implementing a site security plan, and
``(9) such other measures for the protection of specified
agricultural chemicals as the Secretary may identify in
regulation.

Amounts described in the preceding sentence shall be taken
into account only to the extent that such amounts are paid or
incurred for the purpose of protecting specified agricultural
chemicals.
``(e) Eligible Agricultural Business.--For purposes of this
section, the term `eligible agricultural business' means any
person in the trade or business of--
``(1) selling agricultural products, including specified
agricultural chemicals, at retail predominantly to farmers
and ranchers, or
``(2) manufacturing, formulating, distributing, or aerially
applying specified agricultural chemicals.
``(f) Specified Agricultural Chemical.--For purposes of
this section, the term `specified agricultural chemical'
means--
``(1) any fertilizer commonly used in agricultural
operations which is listed under--
``(A) section 302(a)(2) of the Emergency Planning and
Community Right-to-Know Act of 1986,
``(B) section 101 of part 172 of title 49, Code of Federal
Regulations, or
``(C) part 126, 127, or 154 of title 33, Code of Federal
Regulations, and
``(2) any pesticide (as defined in section 2(u) of the
Federal Insecticide, Fungicide, and Rodenticide Act),
including all active and inert ingredients thereof, which is
customarily used on crops grown for food, feed, or fiber.
``(g) Controlled Groups.--Rules similar to the rules of
paragraphs (1) and (2) of section 41(f) shall apply for
purposes of this section.
``(h) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
the purposes of this section, including regulations which--
``(1) provide for the proper treatment of amounts which are
paid or incurred for purpose of protecting any specified
agricultural chemical and for other purposes, and
``(2) provide for the treatment of related properties as
one facility for purposes of subsection (b).
``(i) Termination.--This section shall not apply to any
amount paid or incurred after December 31, 2010.''.
(b) Credit Allowed as Part of General Business Credit.--
Section 38(b) is amended by striking ``plus'' at the end of
paragraph (30), by striking the period at the end of
paragraph (31) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(32) in the case of an eligible agricultural business (as
defined in section 45O(e)), the agricultural chemicals
security credit determined under section 45O(a).''.
(c) Denial of Double Benefit.--Section 280C is amended by
adding at the end the following new subsection:

[[Page S990]]

``(f) Credit for Security of Agricultural Chemicals.--No
deduction shall be allowed for that portion of the expenses
(otherwise allowable as a deduction) taken into account in
determining the credit under section 45O for the taxable year
which is equal to the amount of the credit determined for
such taxable year under section 45O(a).''.
(d) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
adding at the end the following new item:

``Sec. 45O. Agricultural chemicals security credit.''.

(e) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after December 31,
2006.
______

SA 173. Mr. KERRY submitted an amendment intended to be proposed to
amendment SA 112 submitted by Mr. Sununu to the amendment SA 100
proposed by Mr. Reid (Mr. Baucus) to the bill H.R. 2, to amend the Fair
Labor Standards Act of 1938 to provide for an increase in the Federal
minimum wage; which was ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

SEC. __. SUSTAINABILITY PROGRAM.

(a) In General.--Section 29(l) of the Small Business Act
(15 U.S.C. 656(l)) is amended--
(1) in the subsection heading, by striking ``Pilot'';
(2) in paragraph (1), by striking ``4-year pilot''; and
(3) in paragraph (5), by striking ``pilot''.
(b) Conforming Amendments.--Section 29(k) of the Small
Business Act (15 U.S.C. 656(k)) is amended--
(1) in paragraph (1), by striking ``pilot'';
(2) in paragraph (4)--
(A) in the paragraph heading, by striking ``pilot'';
(B) in subparagraph (A), by adding at the end the
following:
``(v) For fiscal years 2007 and 2008, not less than 41
percent.''; and
(C) in the heading for subparagraph (B), by striking
``pilot''.
______

SA 174. Mr. KERRY submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. SUSTAINABILITY PROGRAM.

(a) In General.--Section 29(l) of the Small Business Act
(15 U.S.C. 656(l)) is amended--
(1) in the subsection heading, by striking ``Pilot'';
(2) in paragraph (1), by striking ``4-year pilot''; and
(3) in paragraph (5), by striking ``pilot''.
(b) Conforming Amendments.--Section 29(k) of the Small
Business Act (15 U.S.C. 656(k)) is amended--
(1) in paragraph (1), by striking ``pilot'';
(2) in paragraph (4)--
(A) in the paragraph heading, by striking ``pilot'';
(B) in subparagraph (A), by adding at the end the
following:
``(v) For fiscal years 2007 and 2008, not less than 41
percent.''; and
(C) in the heading for subparagraph (B), by striking
``pilot''.
______

SA 175. Mr. HATCH submitted an amendment intended to be proposed by
him to the bill H.R. 2, to amend the Fair Labor Standards Act of 1938
to provide for an increase in the Federal minimum wage; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. PROVISIONS TO IMPROVE AND EXPAND THE AVAILABILITY OF
HEALTH SAVINGS ACCOUNTS.

(a) Provisions Relating to Eligibility to Contribute to
HSAs.--
(1) Individuals eligible for reimbursement under spouse's
flexible spending arrangement.--Section 223(c)(1) (defining
eligible individual) is amended by adding at the end the
following new subparagraph:
``(C) Special rule for certain flexible spending
arrangements.--For purposes of subparagraph (A)(ii), an
individual shall not be treated as covered under a health
plan described in such subparagraph merely because the
individual is covered under a flexible spending arrangement
(within the meaning of section 106(c)(2)) which is maintained
by an employer of the spouse of the individual, but only if--
``(i) the employer is not also the employer of the
individual, and
``(ii) the individual certifies to the employer and to the
Secretary (in such form and manner as the Secretary may
prescribe) that the individual and the individual's spouse
will not accept reimbursement under the arrangement for any
expenses for medical care provided to the individual.''.
(2) Individuals over age 65 automatically enrolled in
medicare part a.--Section 223(b)(7) (relating to contribution
limitation on medicare eligible individuals) is amended by
adding at the end the following new sentence: ``This
paragraph shall not apply to any individual during any period
the individual's only entitlement to such benefits is an
entitlement to hospital insurance benefits under part A of
title XVIII of such Act pursuant to an automatic enrollment
for such hospital insurance benefits under the regulations
under section 226(a)(1) of such Act.''
(3) Individuals eligible for certain veterans benefits.--
Section 223(c)(1) (defining eligible individual), as amended
by subsection (a), is amended by adding at the end the
following new subparagraph:
``(D) Special rule for individuals eligible for certain
veterans benefits.--For purposes of subparagraph (A)(ii), an
individual shall not be treated as covered under a health
plan described in such subparagraph merely because the
individual receives periodic hospital care or medical
services for a service-connected disability under any law
administered by the Secretary of Veterans Affairs but only if
the individual is not eligible to receive such care or
services for any condition other than a service-connected
disability.''.
(b) Family Plan May Have Individual Annual Deductible
Limit.--Section 223(c)(2) (defining high deductible health
plan) is amended by adding at the end the following new
subparagraph:
``(E) Special rule for family coverage.--A health plan
providing family coverage shall not fail to meet the
requirements of subparagraph (A)(i)(II) merely because the
plan elects to provide both--
``(i) an aggregate annual deductible limit for all
individuals covered by the plan which is not less than the
amount in effect under subparagraph (A)(i)(II), and
``(ii) an annual deductible limit for each individual
covered by the plan which is not less than the amount in
effect under subparagraph (A)(i)(I).''.
(c) Definition of Qualified Medical Expenses.--
(1) Premiums for low premium health plans treated as
qualified medical expenses.--Subparagraph (C) of section
223(d)(2) is amended by striking ``or'' at the end of clause
(iii), by striking the period at the end of clause (iv) and
inserting ``, or'', and by adding at the end the following
new clause:
``(v) a high deductible health plan, but only if the
expenses are for coverage for a month with respect to which
the account beneficiary is an eligible individual by reason
of the coverage under the plan.''.
(2) Special rule for certain medical expenses incurred
before establishment of account.--Paragraph (2) of section
223(d) is amended by adding at the end the following new
subparagraph:
``(D) Certain medical expenses incurred before
establishment of account treated as qualified.--An expense
shall not fail to be treated as a qualified medical expense
solely because such expense was incurred before the
establishment of the health savings account if such expense
was incurred--
``(i) during either--

``(I) the taxable year in which the health savings account
was established, or
``(II) the preceding taxable year in the case of a health
savings account established after the taxable year in which
such expense was incurred but before the time prescribed by
law for filing the return for such taxable year (not
including extensions thereof), and

``(ii) for medical care of an individual during a period
that such individual was an eligible individual.

For purposes of clause (ii), an individual shall be treated
as an eligible individual for any portion of a month the
individual is described in subsection (c)(1), determined
without regard to whether the individual is covered under a
high deductible health plan on the 1st day of such month.''.
(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2007.

____________________