In the nature of a substitute.

TEXT OF AMENDMENTS

SA 716. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 152 submitted by Mr. Ensign (for himself and Mr. Inhofe)
to the 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:

Strike after the first word, and 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 that is one day 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 177. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 153 submitted by Mr. Ensign (for himself, Mr. Sessions,
Mr. Craig, Mrs. Dole, Mr. Thomas Mr. Cornyn, Mr. Inhofe, Mr. Isakson,
and Mr. Coleman) to the 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:

Strike after the first word and 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
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

[[Page S1082]]

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 December 31, 2006.

______

SA 178. Mr. ENSIGN submitted an amendment intended to be proposed to
amendment SA 154 submitted by Mr. Ensign (for himself, Mr. DeMint, Mr.
Graham, and Mr. Coburn) to the 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:

Strike after the first word and 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 on January 1, 2008.
______

SA 179. Mr. THUNE 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 III--SMALL BUSINESS HEALTH COVERAGE

SEC. 301. SHORT TITLE.

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

SEC. 302. 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.

[[Page S1083]]

``(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 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

[[Page S1084]]

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 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

[[Page S1085]]

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.
``(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

[[Page S1086]]

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 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

[[Page S1087]]

``(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 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. 303. 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

[[Page S1088]]

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. 304. 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
(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. 305. 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. 306. 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 180. Mr. KENNEDY submitted an amendment intended to be proposed to
amendment SA 143 submitted by Mr. Sessions 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 to be inserted, insert the following:

DIVISION B--IMMIGRATION REFORM

SECTION 1001. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This division may be cited as the
``Secure America and Orderly Immigration Act''.
(b) Table of Contents.--The table of contents for this
division is as follows:

DIVISION B--IMMIGRATION REFORM

Sec. 1001. Short title; table of contents.
Sec. 1002. Findings.

TITLE I--BORDER SECURITY

Sec. 1101. Definitions.

[[Page S1089]]

Subtitle A--Border Security Strategic Planning

Sec. 1111. National Strategy for Border Security.
Sec. 1112. Reports to Congress.
Sec. 1113. Authorization of appropriations.

Subtitle B--Border Infrastructure, Technology Integration, and Security
Enhancement

Sec. 1121. Border security coordination plan.
Sec. 1122. Border security advisory committee.
Sec. 1123. Programs on the use of technologies for border security.
Sec. 1124. Combating human smuggling.
Sec. 1125. Savings clause.

Subtitle C--International Border Enforcement

Sec. 1131. North American Security Initiative.
Sec. 1132. Information sharing agreements.
Sec. 1133. Improving the security of Mexico's southern border.

TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

Sec. 1201. State criminal alien assistance program authorization of
appropriations.
Sec. 1202. Reimbursement of States for indirect costs relating to the
incarceration of illegal aliens.
Sec. 1203. Reimbursement of States for pre-conviction costs relating to
the incarceration of illegal aliens.

TITLE III--ESSENTIAL WORKER VISA PROGRAM

Sec. 1301. Essential workers.
Sec. 1302. Admission of essential workers.
Sec. 1303. Employer obligations.
Sec. 1304. Protection for workers.
Sec. 1305. Market-based numerical limitations.
Sec. 1306. Adjustment to lawful permanent resident status.
Sec. 1307. Essential Worker Visa Program Task Force.
Sec. 1308. Willing worker-willing employer electronic job registry.
Sec. 1309. Authorization of appropriations.

TITLE IV--ENFORCEMENT

Sec. 1401. Document and visa requirements.
Sec. 1402. Employment Eligibility Confirmation System.
Sec. 1403. Improved entry and exit data system.
Sec. 1404. Department of labor investigative authorities.
Sec. 1405. Protection of employment rights.
Sec. 1406. Increased fines for prohibited behavior.

TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

Sec. 1501. Labor migration facilitation programs.
Sec. 1502. Bilateral efforts with Mexico to reduce migration pressures
and costs.

TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

Sec. 1601. Elimination of existing backlogs.
Sec. 1602. Country limits.
Sec. 1603. Allocation of immigrant visas.
Sec. 1604. Relief for children and widows.
Sec. 1605. Amending the affidavit of support requirements.
Sec. 1606. Discretionary authority.
Sec. 1607. Family unity.

TITLE VII--H-5B NONIMMIGRANTS

Sec. 1701. H-5B nonimmigrants.
Sec. 1702. Adjustment of status for H-5B nonimmigrants.
Sec. 1703. Aliens not subject to direct numerical limitations.
Sec. 1704. Employer protections.
Sec. 1705. Authorization of appropriations.

TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

Sec. 1801. Right to qualified representation.
Sec. 1802. Protection of witness testimony.

TITLE IX--CIVICS INTEGRATION

Sec. 1901. Funding for the Office of Citizenship.
Sec. 1902. Civics integration grant program.

TITLE X--PROMOTING ACCESS TO HEALTH CARE

Sec. 2001. Federal reimbursement of emergency health services furnished
to undocumented aliens.
Sec. 2002. Prohibition against offset of certain medicare and medicaid
payments.
Sec. 2003. Prohibition against discrimination against aliens on the
basis of employment in hospital-based versus nonhospital-
based sites.
Sec. 2004. Binational public health infrastructure and health
insurance.

TITLE XI--MISCELLANEOUS

Sec. 2101. Submission to congress of information regarding H-5A
nonimmigrants.
Sec. 2102. H-5 nonimmigrant petitioner account.
Sec. 2103. Anti-discrimination protections.
Sec. 2104. Women and children at risk of harm.
Sec. 2105. Expansion of S visa.
Sec. 2106. Volunteers.

SEC. 1002. FINDINGS.

Congress makes the following findings:
(1) The Government of the United States has an obligation
to its citizens to secure its borders and ensure the rule of
law in its communities.
(2) The Government of the United States must strengthen
international border security efforts by dedicating adequate
and significant resources for technology, personnel, and
training for border region enforcement.
(3) Federal immigration policies must adhere to the United
States tradition as a nation of immigrants and reaffirm this
Nation's commitment to family unity, economic opportunity,
and humane treatment.
(4) Immigrants have contributed significantly to the
strength and economic prosperity of the United States and
action must be taken to ensure their fair treatment by
employers and protection against fraud and abuse.
(5) Current immigration laws and the enforcement of such
laws are ineffective and do not serve the people of the
United States, the national security interests of the United
States, or the economic prosperity of the United States.
(6) The United States cannot effectively carry out its
national security policies unless the United States
identifies undocumented immigrants and encourages them to
come forward and participate legally in the economy of the
United States.
(7) Illegal immigration fosters other illegal activity,
including human smuggling, trafficking, and document fraud,
all of which undermine the national security interests of the
United States.
(8) Illegal immigration burdens States and local
communities with hundreds of millions of dollars in
uncompensated expenses for law enforcement, health care, and
other essential services.
(9) Illegal immigration creates an underclass of workers
who are vulnerable to fraud and exploitation.
(10) Fixing the broken immigration system requires a
comprehensive approach that provides for adequate legal
channels for immigration and strong enforcement of
immigration laws which will serve the economic, social, and
security interests of the United States.
(11) Foreign governments, particularly those that share an
international border with the United States, must play a
critical role in securing international borders and deterring
illegal entry of foreign nationals into the United States.
(12) Federal immigration policy should foster economic
growth by allowing willing workers to be matched with willing
employers when no United States worker is available to take a
job.
(13) Immigration reform is a key component to achieving
effective enforcement and will allow for the best use of
security and enforcement resources to be focused on the
greatest risks.
(14) Comprehensive immigration reform and strong
enforcement of immigration laws will encourage legal
immigration, deter illegal immigration, and promote the
economic and national security interests of the United
States.

TITLE I--BORDER SECURITY

SEC. 1101. DEFINITIONS.

In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Homeland Security and Governmental
Affairs of the Senate;
(B) the Committee on the Judiciary of the Senate;
(C) the Committee on Homeland Security of the House of
Representatives; and
(D) the Committee on the Judiciary of the House of
Representatives.
(2) International border of the united states.--The term
``international border of the United States'' means the
international border between the United States and Canada and
the international border between the United States and
Mexico, including points of entry along such international
borders.
(3) Secretary.--Except as otherwise provided, the term
``Secretary'' means the Secretary of Homeland Security.
(4) Security plan.--The term ``security plan'' means a
security plan developed as part of the National Strategy for
Border Security set forth under section 111(a) for the Border
Patrol and the field offices of the Bureau of Customs and
Border Protection of the Department of Homeland Security that
has responsibility for the security of any portion of the
international border of the United States.

Subtitle A--Border Security Strategic Planning

SEC. 1111. NATIONAL STRATEGY FOR BORDER SECURITY.

(a) In General.--In conjunction with strategic homeland
security planning efforts, the Secretary shall develop,
implement, and update, as needed, a National Strategy for
Border Security that includes a security plan for the Border
Patrol and the field offices of the Bureau of Customs and
Border Protection of the Department of Homeland Security that
has responsibility for the security of any portion of the
international border of the United States.
(b) Contents.--The National Strategy for Border Security
shall include--
(1) the identification and evaluation of the points of
entry and all portions of the international border of the
United States that, in the interests of national security and
enforcement, must be protected from illegal transit;
(2) a description of the most appropriate, practical, and
cost-effective means of defending the international border of
the United

[[Page S1090]]

States against threats to security and illegal transit,
including intelligence capacities, technology, equipment,
personnel, and training needed to address security
vulnerabilities within the United States for the Border
Patrol and the field offices of the Bureau of Customs and
Border Protection that have responsibility for any portion of
the international border of the United States;
(3) risk-based priorities for assuring border security and
realistic deadlines for addressing security and enforcement
needs identified in paragraphs (1) and (2);
(4) a strategic plan that sets out agreed upon roles and
missions of Federal, State, regional, local, and tribal
authorities, including appropriate coordination among such
authorities, to enable security enforcement and border lands
management to be carried out in an efficient and effective
manner;
(5) a prioritization of research and development objectives
to enhance the security of the international border of the
United States and enforcement needs to promote such security
consistent with the provisions of subtitle B;
(6) an update of the 2001 Port of Entry Infrastructure
Assessment Study conducted by the United States Customs
Service, in consultation with the General Services
Administration;
(7) strategic interior enforcement coordination plans with
personnel of Immigration and Customs Enforcement;
(8) strategic enforcement coordination plans with overseas
personnel of the Department of Homeland Security and the
Department of State to end human smuggling and trafficking
activities;
(9) any other infrastructure or security plan or report
that the Secretary determines appropriate for inclusion;
(10) the identification of low-risk travelers and how such
identification would facilitate cross-border travel; and
(11) ways to ensure that the trade and commerce of the
United States is not diminished by efforts, activities, and
programs aimed at securing the homeland.
(c) Priority of National Strategy.--The National Strategy
for Border Security shall be the governing document for
Federal security and enforcement efforts related to securing
the international border of the United States.

SEC. 1112. REPORTS TO CONGRESS.

(a) National Strategy.--
(1) Initial submission.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall submit the
National Strategy for Border Security, including each
security plan, to the appropriate congressional committees.
Such plans shall include estimated costs of implementation
and training from a fiscal and personnel perspective and a
cost-benefit analysis of any technological security
implementations.
(2) Subsequent submissions.--After the submission required
under paragraph (1), the Secretary shall submit to the
appropriate congressional committees any revisions to the
National Strategy for Border Security, including any
revisions to a security plan, not less frequently than April
1 of each odd-numbered year. The plan shall include estimated
costs for implementation and training and a cost-benefit
analysis of technological security implementations that take
place during the time frame under evaluation.
(b) Periodic Progress Reports.--
(1) Requirement for report.--Each year, in conjunction with
the submission of the budget to Congress under section
1105(a) of title 31, United States Code, the Secretary shall
submit to the appropriate congressional committees an
assessment of the progress made on implementing the National
Strategy for Border Security, including each security plan.
(2) Content.--Each progress report submitted under this
subsection shall include any recommendations for improving
and implementing the National Strategy for Border Security,
including any recommendations for improving and implementing
a security plan.
(c) Classified Material.--
(1) In general.--Any material included in the National
Strategy for Border Security, including each security plan,
that includes information that is properly classified under
criteria established by Executive order shall be submitted to
the appropriate congressional committees in a classified
form.
(2) Unclassified version.--As appropriate, an unclassified
version of the material described in paragraph (1) shall be
provided to the appropriate congressional committees.

SEC. 1113. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary
such sums as may be necessary to carry out this subtitle for
each of the 5 fiscal years beginning with the fiscal year
after the fiscal year in which this Act was enacted.

Subtitle B--Border Infrastructure, Technology Integration, and Security
Enhancement

SEC. 1121. BORDER SECURITY COORDINATION PLAN.

(a) In General.--The Secretary shall coordinate with
Federal, State, local, and tribal authorities on law
enforcement, emergency response, and security-related
responsibilities with regard to the international border of
the United States to develop and implement a plan to ensure
that the security of such international border is not
compromised--
(1) when the jurisdiction for providing such security
changes from one such authority to another such authority;
(2) in areas where such jurisdiction is shared by more than
one such authority; or
(3) by one such authority relinquishing such jurisdiction
to another such authority pursuant to a memorandum of
understanding.
(b) Elements of Plan.--In developing the plan, the
Secretary shall consider methods to--
(1) coordinate emergency responses;
(2) improve data-sharing, communications, and technology
among the appropriate agencies;
(3) promote research and development relating to the
activities described in paragraphs (1) and (2); and
(4) combine personnel and resource assets when practicable.
(c) Report.--Not later than 1 year after implementing the
plan developed under subsection (a), the Secretary shall
transmit a report to the appropriate congressional committees
on the development and implementation of such plan.

SEC. 1122. BORDER SECURITY ADVISORY COMMITTEE.

(a) Establishment.--The Secretary is authorized to
establish a Border Security Advisory Committee (referred to
in this section as the ``Advisory Committee'') to provide
advice and recommendations to the Secretary on border
security and enforcement issues.
(b) Composition.--
(1) In general.--The members of the Advisory Committee
shall be appointed by the Secretary and shall include
representatives of--
(A) States that are adjacent to the international border of
the United States;
(B) local law enforcement agencies; community officials,
and tribal authorities of such States; and
(C) other interested parties.
(2) Membership.--The Advisory Committee shall be comprised
of members who represent a broad cross section of
perspectives.

SEC. 1123. PROGRAMS ON THE USE OF TECHNOLOGIES FOR BORDER
SECURITY.

(a) Aerial Surveillance Technologies Program.--
(1) In general.--In conjunction with the border
surveillance plan developed under section 5201 of the
Intelligence Reform and Terrorism Prevention Act of 2004
(Public Law 108-458), the Secretary, not later than 60 days
after the date of enactment of this Act, shall develop and
implement a program to fully integrate aerial surveillance
technologies to enhance the border security of the United
States.
(2) Assessment and consultation requirements.--In
developing the program under this subsection, the Secretary
shall--
(A) consider current and proposed aerial surveillance
technologies;
(B) assess the feasibility and advisability of utilizing
such technologies to address border threats, including an
assessment of the technologies considered best suited to
address respective threats;
(C) consult with the Secretary of Defense regarding any
technologies or equipment, which the Secretary may deploy
along the international border of the United States; and
(D) consult with the Administrator of the Federal Aviation
Administration regarding safety, airspace coordination and
regulation, and any other issues necessary for implementation
of the program.
(3) Additional requirements.--
(A) In general.--The program developed under this
subsection shall include the utilization of a variety of
aerial surveillance technologies in a variety of topographies
and areas, including populated and unpopulated areas located
on or near the international border of the United States, in
order to evaluate, for a range of circumstances--
(i) the significance of previous experiences with such
technologies in border security or critical infrastructure
protection;
(ii) the cost and effectiveness of various technologies for
border security, including varying levels of technical
complexity; and
(iii) liability, safety, and privacy concerns relating to
the utilization of such technologies for border security.
(B) Use of unmanned aerial vehicles.--The aerial
surveillance technologies utilized in the program shall
include unmanned aerial vehicles.
(4) Continued use of aerial surveillance technologies.--The
Secretary may continue the operation of aerial surveillance
technologies while assessing the effectiveness of their
utilization and until such time the Secretary determines
appropriate.
(5) Report.--
(A) Requirement.--Not later than 1 year after implementing
the program under this subsection, the Secretary shall submit
a report on such program to the appropriate congressional
committees.
(B) Content.--The Secretary shall include in the report
required by subparagraph (A) a description of the program
together with such recommendations as the Secretary finds
appropriate for enhancing the program.
(b) Demonstration Programs.--The Secretary is authorized,
as part of the development and implementation of the National
Strategy for Border Security, to establish and carry out
demonstration programs to strengthen communication,
information sharing, technology, security, intelligence
benefits, and enforcement activities that will protect the
international border of the United States without diminishing
international trade and commerce.

[[Page S1091]]

SEC. 1124. COMBATING HUMAN SMUGGLING.

(a) Requirement for Plan.--The Secretary shall develop and
implement a plan to improve coordination between the Bureau
of Immigration and Customs Enforcement and the Bureau of
Customs and Border Protection of the Department of Homeland
Security and any other Federal, State, local, or tribal
authorities, as determined appropriate by the Secretary, to
improve coordination efforts to combat human smuggling.
(b) Content.--In developing the plan required by subsection
(a), the Secretary shall consider--
(1) the interoperability of databases utilized to prevent
human smuggling;
(2) adequate and effective personnel training;
(3) methods and programs to effectively target networks
that engage in such smuggling;
(4) effective utilization of--
(A) visas for victims of trafficking and other crimes; and
(B) investigatory techniques, equipment, and procedures
that prevent, detect, and prosecute international money
laundering and other operations that are utilized in
smuggling;
(5) joint measures, with the Secretary of State, to enhance
intelligence sharing and cooperation with foreign governments
whose citizens are preyed on by human smugglers; and
(6) other measures that the Secretary considers appropriate
to combating human smuggling.
(c) Report.--Not later than 1 year after implementing the
plan described in subsection (a), the Secretary shall submit
to Congress a report on such plan, including any
recommendations for legislative action to improve efforts to
combating human smuggling.

SEC. 1125. SAVINGS CLAUSE.

Nothing in this subtitle or subtitle A may be construed to
provide to any State or local entity any additional authority
to enforce Federal immigration laws.

Subtitle C--International Border Enforcement

SEC. 1131. NORTH AMERICAN SECURITY INITIATIVE.

(a) In General.--The Secretary of State shall enhance the
mutual security and safety of the United States, Canada, and
Mexico by providing a framework for better management,
communication, and coordination between the Governments of
North America.
(b) Responsibilities.--In implementing the provisions of
this subtitle, the Secretary of State shall carry out all of
the activities described in this subtitle.

SEC. 1132. INFORMATION SHARING AGREEMENTS.

The Secretary of State, in coordination with the Secretary
of Homeland Security and the Government of Mexico, is
authorized to negotiate an agreement with Mexico to--
(1) cooperate in the screening of third-country nationals
using Mexico as a transit corridor for entry into the United
States; and
(2) provide technical assistance to support stronger
immigration control at the border with Mexico.

SEC. 1133. IMPROVING THE SECURITY OF MEXICO'S SOUTHERN
BORDER.

(a) Technical Assistance.--The Secretary of State, in
coordination with the Secretary of Homeland Security, the
Canadian Department of Foreign Affairs, and the Government of
Mexico, shall establish a program to--
(1) assess the specific needs of the governments of Central
American countries in maintaining the security of the borders
of such countries;
(2) use the assessment made under paragraph (1) to
determine the financial and technical support needed by the
governments of Central American countries from Canada,
Mexico, and the United States to meet such needs;
(3) provide technical assistance to the governments of
Central American countries to secure issuance of passports
and travel documents by such countries; and
(4) encourage the governments of Central American countries
to--
(A) control alien smuggling and trafficking;
(B) prevent the use and manufacture of fraudulent travel
documents; and
(C) share relevant information with Mexico, Canada, and the
United States.
(b) Immigration.--The Secretary of Homeland Security, in
consultation with the Secretary of State and appropriate
officials of the governments of Central American countries
shall provide robust law enforcement assistance to such
governments that specifically addresses migratory issues to
increase the ability of such governments to dismantle human
smuggling organizations and gain tighter control over the
border.
(c) Border Security Between Mexico and Guatemala or
Belize.--The Secretary of State, in consultation with the
Secretary of Homeland Security, the Government of Mexico, and
appropriate officials of the Governments of Guatemala,
Belize, and neighboring contiguous countries, shall establish
a program to provide needed equipment, technical assistance,
and vehicles to manage, regulate, and patrol the
international border between Mexico and Guatemala and between
Mexico and Belize.
(d) Tracking Central American Gangs.--The Secretary of
State, in coordination with the Secretary of Homeland
Security, the Director of the Federal Bureau of
Investigation, the Government of Mexico, and appropriate
officials of the governments of Central American countries,
shall--
(1) assess the direct and indirect impact on the United
States and Central America on deporting violent criminal
aliens;
(2) establish a program and database to track Central
American gang activities, focusing on the identification of
returning criminal deportees;
(3) devise an agreed-upon mechanism for notification
applied prior to deportation and for support for
reintegration of these deportees; and
(4) devise an agreement to share all relevant information
with the appropriate agencies of Mexico and other Central
American countries.

TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

SEC. 1201. STATE CRIMINAL ALIEN ASSISTANCE PROGRAM
AUTHORIZATION OF APPROPRIATIONS.

Section 241(i) of the Immigration and Nationality Act (8
U.S.C. 1231(i)) is amended by striking paragraphs (5) and (6)
and inserting the following:
``(5) Authorization of appropriations.--
``(A) In general.--There are authorized to be appropriated
to carry out this subsection--
``(i) such sums as may be necessary for fiscal year 2005;
``(ii) $750,000,000 for fiscal year 2006;
``(iii) $850,000,000 for fiscal year 2007; and
``(iv) $950,000,000 for each of the fiscal years 2008
through 2011.
``(B) Limitation on use of funds.--Amounts appropriated
pursuant to subparagraph (A) that are distributed to a State
or political subdivision of a State, including a
municipality, may be used only for correctional purposes.''.

SEC. 1202. REIMBURSEMENT OF STATES FOR INDIRECT COSTS
RELATING TO THE INCARCERATION OF ILLEGAL
ALIENS.

Section 501 of the Immigration Reform and Control Act of
1986 (8 U.S.C. 1365) is amended--
(1) in subsection (a)--
(A) by striking ``for the costs'' and inserting the
following: ``for--
``(1) the costs''; and
(B) by striking ``such State.'' and inserting the
following: ``such State; and
``(2) the indirect costs related to the imprisonment
described in paragraph (1).''; and
(2) by striking subsections (c) through (e) and inserting
the following:
``(c) Manner of Allotment of Reimbursements.--
Reimbursements under this section shall be allotted in a
manner that gives special consideration for any State that--
``(1) shares a border with Mexico or Canada; or
``(2) includes within the State an area in which a large
number of undocumented aliens reside relative to the general
population of that area.
``(d) Definitions.--As used in this section:
``(1) Indirect costs.--The term `indirect costs' includes--
``(A) court costs, county attorney costs, detention costs,
and criminal proceedings expenditures that do not involve
going to trial;
``(B) indigent defense costs; and
``(C) unsupervised probation costs.
``(2) State.--The term `State' has the meaning given such
term in section 101(a)(36) of the Immigration and Nationality
Act.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated $200,000,000 for each of the
fiscal years 2005 through 2011 to carry out subsection
(a)(2).''.

SEC. 1203. REIMBURSEMENT OF STATES FOR PRE-CONVICTION COSTS
RELATING TO THE INCARCERATION OF ILLEGAL
ALIENS.

Section 241(i)(3)(A) of the Immigration and Nationality Act
(8 U.S.C. 1231(i)(3)(a) is amended by inserting ``charged
with or'' before ``convicted.''

TITLE III--ESSENTIAL WORKER VISA PROGRAM

SEC. 1301. ESSENTIAL WORKERS.

Section 101(a)(15)(H) of the Immigration and Nationality
Act (8 U.S.C. 1101(a)(15)(H)) is amended--
(1) by striking ``(H) an alien (i)(b)'' and inserting the
following:
``(H) an alien--
``(i)(b)'';
(2) by striking ``or (ii)(a)'' and inserting the following:
``(ii)(a)'';
(3) by striking ``or (iii)'' and inserting the following:
``(iii)''; and
(4) by adding at the end the following:
``(v)(a) subject to section 218A, having residence in a
foreign country, which the alien has no intention of
abandoning, who is coming temporarily to the United States to
initially perform labor or services (other than those
occupation classifications covered under the provisions of
clause (i)(b) or (ii)(a) or subparagraph (L), (O), (P), or
(R)); or.''.

SEC. 1302. ADMISSION OF ESSENTIAL WORKERS.

(a) In General.--Chapter 2 of title II of the Immigration
and Nationality Act (8 U.S.C. 1181 et seq.) is amended by
inserting after section 218 the following:

``ADMISSION OF TEMPORARY H-5A WORKERS

``Sec. 218A.  (a) The Secretary of State may grant a
temporary visa to a nonimmigrant described in section
101(a)(15)(H)(v)(a) who demonstrates an intent to perform
labor or services in the United States (other than those
occupational classifications covered

[[Page S1092]]

under the provisions of clause (i)(b) or (ii)(a) of section
101(a)(15)(H) or subparagraph (L), (O), (P), or (R)) of
section 101(a)(15).
``(b) Requirements for Admission.--In order to be eligible
for nonimmigrant status under section 101(a)(15)(H)(v)(a), an
alien shall meet the following requirements:
``(1) Eligibility to work.--The alien shall establish that
the alien is capable of performing the labor or services
required for an occupation under section 101(a)(15)(H)(v).
``(2) Evidence of employment.--The alien's evidence of
employment shall be provided through the Employment
Eligibility Confirmation System established under section
274E or in accordance with requirements issued by the
Secretary of State, in consultation with the Secretary of
Homeland Security. In carrying out this paragraph, the
Secretary may consider evidence from employers, employer
associations, and labor representatives.
``(3) Fee.--The alien shall pay a $500 application fee to
apply for the visa in addition to the cost of processing and
adjudicating such application. Nothing in this paragraph
shall be construed to affect consular procedures for charging
reciprocal fees.
``(4) Medical examination.--The alien shall undergo a
medical examination (including a determination of
immunization status) at the alien's expense, that conforms to
generally accepted standards of medical practice.
``(c) Grounds of Inadmissibility.--
``(1) In general.--In determining an alien's admissibility
as a nonimmigrant under section 101(a)(15)(H)(v)(a)--
``(A) paragraphs (5), (6) (except for subparagraph (E)),
(7), (9), and (10)(B) of section 212(a) may be waived for
conduct that occurred before the date on which the Secure
America and Orderly Immigration Act was introduced;
``(B) the Secretary of Homeland Security may not waive--
``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of
section 212(a)(2) (relating to criminals);
``(ii) section 212(a)(3) (relating to security and related
grounds); or
``(iii) subparagraph (A) or (C) of section 212(a)(10)
(relating to polygamists and child abductors);
``(C) for conduct that occurred before the date on which
the Secure America and Orderly Immigration Act was
introduced, the Secretary of Homeland Security may waive the
application of any provision of section 212(a) not listed in
subparagraph (B) on behalf of an individual alien for
humanitarian purposes, to ensure family unity, or when such
waiver is otherwise in the public interest; and
``(D) nothing in this paragraph shall be construed as
affecting the authority of the Secretary of Homeland Security
to waive the provisions of section 212(a).
``(2) Waiver fine.--An alien who is granted a waiver under
subparagraph (1) shall pay a $1,500 fine upon approval of the
alien's visa application.
``(3) Applicability of other provisions.--Sections 240B(d)
and 241(a)(5) shall not apply to an alien who initially seeks
admission as a nonimmigrant under section
101(a)(15)(H)(v)(a).
``(4) Renewal of authorized admission and subsequent
admissions.--An alien seeking renewal of authorized admission
or subsequent admission as a nonimmigrant under section
101(a)(15)(H)(v)(a) shall establish that the alien is not
inadmissible under section 212(a).
``(d) Period of Authorized Admission.--
``(1) Initial period.--The initial period of authorized
admission as a nonimmigrant described in section
101(a)(15)(H)(v)(a) shall be 3 years.
``(2) Renewals.--The alien may seek an extension of the
period described in paragraph (1) for 1 additional 3-year
period.
``(3) Loss of employment.--
``(A) In general.--Subject to subsection (c), the period of
authorized admission of a nonimmigrant alien under section
101(a)(15)(H)(v)(a) shall terminate if the nonimmigrant is
unemployed for 45 or more consecutive days.
``(B) Return to foreign residence.--Any alien whose period
of authorized admission terminates under subparagraph (A)
shall be required to return to the country of the alien's
nationality or last residence.
``(C) Period of visa validity.--Any alien, whose period of
authorized admission terminates under subparagraph (A), who
returns to the country of the alien's nationality or last
residence under subparagraph (B), may reenter the United
States on the basis of the same visa to work for an employer,
if the alien has complied with the requirements of subsection
(b)(1).
``(4) Visits outside united states.--
``(A) In general.--Under regulations established by the
Secretary of Homeland Security, a nonimmigrant alien under
section 101(a)(15)(H)(v)(a)--
``(i) may travel outside of the United States; and
``(ii) may be readmitted without having to obtain a new
visa if the period of authorized admission has not expired.
``(B) Effect on period of authorized admission.--Time spent
outside the United States under subparagraph (A) shall not
extend the period of authorized admission in the United
States.
``(e) Portability.--A nonimmigrant alien described in this
section, who was previously issued a visa or otherwise
provided nonimmigrant status under section
101(a)(15)(H)(v)(a), may accept new employment with a
subsequent employer.
``(f) Waiver of Rights Prohibited.--A nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) may not be required
to waive any rights or protections under the Secure America
and Orderly Immigration Act.
``(g) Change of Address.--An alien having nonimmigrant
status described in section 101(a)(15)(H)(v)(a) shall comply
by either electronic or paper notification with the change of
address reporting requirements under section 265.
``(h) Bar to Future Visas for Violations.--
``(1) In general.--Any alien having the nonimmigrant status
described in section 101(a)(15)(H)(v)(a) shall not be
eligible to renew such nonimmigrant status if the alien
willfully violates any material term or condition of such
status.
``(2) Waiver.--The alien may apply for a waiver of the
application of subparagraph (A) for technical violations,
inadvertent errors, or violations for which the alien was not
at fault.
``(i) Collection of Fees.--All fees collected under this
section shall be deposited in the Treasury in accordance with
section 286(w).''.
(b) Conforming Amendment Regarding Presumption of
Nonimmigrant Status.--Section 214(b) of the Immigration and
Nationality Act (8 U.S.C. 1184(b)) is amended by inserting
``(H)(v)(a),'' after ``(H)(i),''.
(c) Clerical Amendment.--The table of contents for the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by inserting after the item relating to section 218
the following:

``Sec. 218A. Admission of temporary H-5A workers.''.

SEC. 1303. EMPLOYER OBLIGATIONS.

Employers employing a nonimmigrant described in section
101(a)(15)(H)(v)(a) of the Immigration and Nationality Act,
as added by section 1301, shall comply with all applicable
Federal, State, and local laws, including--
(1) laws affecting migrant and seasonal agricultural
workers; and
(2) the requirements under section 274E of such Act, as
added by section 1402.

SEC. 1304. PROTECTION FOR WORKERS.

Section 218A of the Immigration and Nationality Act, as
added by section 1302, is amended by adding at the end the
following:
``(h) Application of Labor and Other Laws.--
``(1) Definitions.--As used in this subsection and in
subsections (i) through (k):
``(A) Employ; employee; employer.--The terms `employ',
`employee', and `employer' have the meanings given such terms
in section 3 of the Fair Labor Standards Act of 1938 (29
U.S.C. 203).
``(B) Foreign labor contractor.--The term `foreign labor
contractor' means any person who for any compensation or
other valuable consideration paid or promised to be paid,
performs any foreign labor contracting activity.
``(C) Foreign labor contracting activity.--The term
`foreign labor contracting activity' means recruiting,
soliciting, hiring, employing, or furnishing, an individual
who resides outside of the United States for employment in
the United States as a nonimmigrant alien described in
section 101(a)(15)(H)(v)(a).
``(2) Coverage.--Notwithstanding any other provision of
law--
``(A) a nonimmigrant alien described in section
101(a)(15)(H)(v)(a) is prohibited from being treated as an
independent contractor; and
``(B) no person may treat a nonimmigrant alien described in
section 101(a)(15)(H)(v)(a) as an independent contractor.
``(3) Applicability of laws.--A nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) shall not be denied
any right or any remedy under Federal, State, or local labor
or employment law that would be applicable to a United States
worker employed in a similar position with the employer
because of the alien's status as a nonimmigrant worker.
``(4) Tax responsibilities.--With respect to each employed
nonimmigrant alien described in section 101(a)(15)(H)(v)(a),
an employer shall comply with all applicable Federal, State,
and local tax and revenue laws.
``(5) Nondiscrimination in employment.--An employer shall
provide nonimmigrants issued a visa under this section with
the same wages, benefits, and working conditions that are
provided by the employer to United States workers similarly
employed in the same occupation and the same place of
employment.
``(6) No replacement of striking employees.--An employer
may not hire a nonimmigrant alien described in section
101(a)(15)(H)(v)(a) as a replacement worker if there is a
strike or lockout in the course of a labor dispute in the
occupational classification at the place of employment.
``(7) Waiver of rights prohibited.--A nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) may not be required
to waive any rights or protections under the Secure America
and Orderly Immigration Act. Nothing under this provision
shall be construed to affect the interpretation of other
laws.
``(8) No threatening of employees.--It shall be a violation
of this section for an employer who has filed a petition
under section

[[Page S1093]]

203(b) to threaten the alien beneficiary of such a petition
with withdrawal of the application, or to withdraw such a
petition in retaliation for the beneficiary's exercise of a
right protected by the Secure America and Orderly Immigration
Act.
``(9) Whistleblower protection.--It shall be unlawful for
an employer or a labor contractor of a nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) to intimidate,
threaten, restrain, coerce, retaliate, discharge, or in any
other manner, discriminate against an employee or former
employee because the employee or former employee--
``(A) discloses information to the employer or any other
person that the employee or former employee reasonably
believes demonstrates a violation of Secure America and
Orderly Immigration Act.
``(B) cooperates or seeks to cooperate in an investigation
or other proceeding concerning compliance with the
requirements of the Secure America and Orderly Immigration
Act.
``(i) Labor Recruiters.--
``(1) In general.--Each employer that engages in foreign
labor contracting activity and each foreign labor contractor
shall ascertain and disclose to each such worker who is
recruited for employment the following information at the
time of the worker's recruitment:
``(A) The place of employment.
``(B) The compensation for the employment.
``(C) A description of employment activities.
``(D) The period of employment.
``(E) Any other employee benefit to be provided and any
costs to be charged for each benefit.
``(F) Any travel or transportation expenses to be assessed.
``(G) The existence of any labor organizing effort, strike,
lockout, or other labor dispute at the place of employment.
``(H) The existence of any arrangement with any owner,
employer, foreign contractor, or its agent where such person
receives a commission from the provision of items or services
to workers.
``(I) The extent to which workers will be compensated
through workers' compensation, private insurance, or
otherwise for injuries or death, including work related
injuries and death, during the period of employment and, if
so, the name of the State workers' compensation insurance
carrier or the name of the policyholder of the private
insurance, the name and the telephone number of each person
who must be notified of an injury or death, and the time
period within which such notice must be given.
``(J) Any education or training to be provided or required,
including the nature and cost of such training, who will pay
such costs, and whether the training is a condition of
employment, continued employment, or future employment.
``(K) A statement, in a form specified by the Secretary of
Labor, describing the protections of this Act for workers
recruited abroad.
``(2) False or misleading information.--No foreign labor
contractor or employer who engages in foreign labor
contracting activity shall knowingly provide material false
or misleading information to any worker concerning any matter
required to be disclosed in paragraph (1).
``(3) Languages.--The information required to be disclosed
under paragraph (1) shall be provided in writing in English
or, as necessary and reasonable, in the language of the
worker being recruited. The Department of Labor shall make
forms available in English, Spanish, and other languages, as
necessary, which may be used in providing workers with
information required under this section.
``(4) Fees.--A person conducting a foreign labor
contracting activity shall not assess any fee to a worker for
such foreign labor contracting activity.
``(5) Terms.--No employer or foreign labor contractor
shall, without justification, violate the terms of any
agreement made by that contractor or employer regarding
employment under this program.
``(6) Travel costs.--If the foreign labor contractor or
employer charges the employee for transportation such
transportation costs shall be reasonable.
``(7) Other worker protections.--
``(A) Notification.--Every 2 years, each employer shall
notify the Secretary of Labor of the identity of any foreign
labor contractor engaged by the employer in any foreign labor
contractor activity for or on behalf of the employer.
``(B) Registration of foreign labor contractors.--
``(i) In general.--No person shall engage in foreign labor
recruiting activity unless such person has a certificate of
registration from the Secretary of Labor specifying the
activities that such person is authorized to perform. An
employer who retains the services of a foreign labor
contractor shall only use those foreign labor contractors who
are registered under this subparagraph.
``(ii) Issuance.--The Secretary shall promulgate
regulations to establish an efficient electronic process for
the investigation and approval of an application for a
certificate of registration of foreign labor contractors not
later than 14 days after such application is filed. Such
process shall include requirements under paragraphs (1), (4),
and (5) of section 1812 of title 29, United States Code, an
expeditious means to update registrations and renew
certificates and any other requirements the Secretary may
prescribe.
``(iii) Term.--Unless suspended or revoked, a certificate
under this subparagraph shall be valid for 2 years.
``(iv) Refusal to issue; revocation; suspension.--In
accordance with regulations promulgated by the Secretary of
Labor, the Secretary may refuse to issue or renew, or may
suspend or revoke, a certificate of registration under this
subparagraph. The justification for such refusal, suspension,
or revocation may include the following:

``(I) The application or holder of the certification has
knowingly made a material misrepresentation in the
application for such certificate.
``(II) The applicant for or holder of the certification is
not the real party in interest in the application or
certificate of registration and the real party in interest is
a person who has been refused issuance or renewal of a
certificate, has had a certificate suspended or revoked, or
does not qualify for a certificate under this paragraph.
``(III) The applicant for or holder of the certification
has failed to comply with the Secure America and Orderly
Immigration Act.

``(C) Remedy for violations.--An employer engaging in
foreign labor contracting activity and a foreign labor
contractor that violates the provisions of this subsection
shall be subject to remedies for foreign labor contractor
violations under subsections (j) and (k). If a foreign labor
contractor acting as an agent of an employer violates any
provision of this subsection, the employer shall also be
subject to remedies under subsections (j) and (k). An
employer that violates a provision of this subsection
relating to employer obligations shall be subject to remedies
under this subsections (j) and (k).
``(D) Employer notification.--An employer shall notify the
Secretary of Labor any time the employer becomes aware of a
violation of this subsection by a foreign labor recruiter.
``(E) Written agreements.--No foreign labor contractor
shall violate the terms of any written agreements made with
an employer relating to any contracting activity or worker
protection under this subsection.
``(F) Bonding requirement.--The Secretary of Labor may
require a foreign labor contractor under this subsection to
post a bond in an amount sufficient to ensure the protection
of individuals recruited by the foreign labor contractor. The
Secretary may consider the extent to which the foreign labor
contractor has sufficient ties to the United States to
adequately enforce this subsection.
``(j) Enforcement.--
``(1) In general.--The Secretary of Labor shall prescribe
regulations for the receipt, investigation, and disposition
of complaints by an aggrieved person respecting a violation
of this section.
``(2) Definition.--As used in this subsection, an
`aggrieved person' is a person adversely affected by the
alleged violation, including--
``(A) a worker whose job, wages, or working conditions are
adversely affected by the violation; and
``(B) a representative for workers whose jobs, wages, or
working conditions are adversely affected by the violation
who brings a complaint on behalf of such worker.
``(3) Filing deadline.--No investigation or hearing shall
be conducted on a complaint concerning a violation under this
section unless the complaint was filed not later than 12
months after the date of such violation.
``(4) Reasonable cause.--The Secretary of Labor shall
conduct an investigation under this subsection if there is
reasonable cause to believe that a violation of this section
has occurred. The process established under this subsection
shall provide that, not later than 30 days after a complaint
is filed, the Secretary shall determine if there is
reasonable cause to find such a violation.
``(5) Notice and hearing.--
``(A) In general.--Not later than 60 days after the
Secretary of Labor makes a determination of reasonable cause
under paragraph (4), the Secretary shall issue a notice to
the interested parties and offer an opportunity for a hearing
on the complaint, in accordance with section 556 of title 5,
United States Code.
``(B) Complaint.--If the Secretary of Labor, after
receiving a complaint under this subsection, does not offer
the aggrieved party or organization an opportunity for a
hearing under subparagraph (A), the Secretary shall notify
the aggrieved party or organization of such determination and
the aggrieved party or organization may seek a hearing on the
complaint in accordance with such section 556.
``(C) Hearing deadline.--Not later than 60 days after the
date of a hearing under this paragraph, the Secretary of
Labor shall make a finding on the matter in accordance with
paragraph (6).
``(6) Attorneys' fees.--A complainant who prevails with
respect to a claim under this subsection shall be entitled to
an award of reasonable attorneys' fees and costs.
``(7) Power of the secretary.--The Secretary may bring an
action in any court of competent jurisdiction--
``(A) to seek remedial action, including injunctive relief;
``(B) to recover the damages described in subsection (k);
or
``(C) to ensure compliance with terms and conditions
described in subsection (i).
``(8) Solicitor of labor.--Except as provided in section
518(a) of title 28, United

[[Page S1094]]

States Code, the Solicitor of Labor may appear for and
represent the Secretary of Labor in any civil litigation
brought under this subsection. All such litigation shall be
subject to the direction and control of the Attorney General.
``(9) Procedures in addition to other rights of
employees.--The rights and remedies provided to workers under
this section are in addition to, and not in lieu of, any
other contractual or statutory rights and remedies of the
workers, and are not intended to alter or affect such rights
and remedies.
``(k) Penalties.--
``(1) In general.--If, after notice and an opportunity for
a hearing, the Secretary of Labor finds a violation of
subsection (h) or (i), the Secretary may impose
administrative remedies and penalties, including--
``(A) back wages;
``(B) fringe benefits; and
``(C) civil monetary penalties.
``(2) Civil penalties.--The Secretary of Labor may impose,
as a civil penalty--
``(A) for a violation of subsection (h)--
``(i) a fine in an amount not to exceed $2,000 per
violation per affected worker;
``(ii) if the violation was willful violation, a fine in an
amount not to exceed $5,000 per violation per affected
worker;
``(iii) if the violation was willful and if in the course
of such violation a United States worker was harmed, a fine
in an amount not to exceed $25,000 per violation per affected
worker; and
``(B) for a violation of subsection (i)--
``(i) a fine in an amount not less than $500 and not more
than $4,000 per violation per affected worker;
``(ii) if the violation was willful, a fine in an amount
not less than $2,000 and not more than $5,000 per violation
per affected worker; and
``(iii) if the violation was willful and if in the course
of such violation a United States worker was harmed, a fine
in an amount not less than $6,000 and not more than $35,000
per violation per affected worker.
``(3) Use of civil penalties.--All penalties collected
under this subsection shall be deposited in the Treasury in
accordance with section 286(w).
``(4) Criminal penalties.--If a willful and knowing
violation of subsection (i) causes extreme physical or
financial harm to an individual, the person in violation of
such subsection may be imprisoned for not more than 6 months,
fined not more than $35,000 fine, or both.''.

SEC. 1305. MARKET-BASED NUMERICAL LIMITATIONS.

Section 214(g) of the Immigration and Nationality Act (8
U.S.C. 1184(g)) is amended--
(1) in paragraph (1)--
(A) by striking ``(beginning with fiscal year 1992)'';
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(C) under section 101(a)(15)(H)(v)(a), may not exceed--
``(i) 400,000 for the first fiscal year in which the
program is implemented;
``(ii) in any subsequent fiscal year--

``(I) if the total number of visas allocated for that
fiscal year are allotted within the first quarter of that
fiscal year, then an additional 20 percent of the allocated
number shall be made available immediately and the allocated
amount for the following fiscal year shall increase by 20
percent of the original allocated amount in the prior fiscal
year;
``(II) if the total number of visas allocated for that
fiscal year are allotted within the second quarter of that
fiscal year, then an additional 15 percent of the allocated
number shall be made available immediately and the allocated
amount for the following fiscal year shall increase by 15
percent of the original allocated amount in the prior fiscal
year;
``(III) if the total number of visas allocated for that
fiscal year are allotted within the third quarter of that
fiscal year, then an additional 10 percent of the allocated
number shall be made available immediately and the allocated
amount for the following fiscal year shall increase by 10
percent of the original allocated amount in the prior fiscal
year;
``(IV) if the total number of visas allocated for that
fiscal year are allotted within the last quarter of that
fiscal year, then the allocated amount for the following
fiscal year shall increase by 10 percent of the original
allocated amount in the prior fiscal year; and
``(V) with the exception of the first subsequent fiscal
year to the fiscal year in which the program is implemented,
if fewer visas were allotted the previous fiscal year than
the number of visas allocated for that year and the reason
was not due to processing delays or delays in promulgating
regulations, then the allocated amount for the following
fiscal year shall decrease by 10 percent of the allocated
amount in the prior fiscal year.''; and

(2) by adding at the end the following:
``(9)(A) Of the total number of visas allocated for each
fiscal year under paragraph (1)(C)--
``(i) 50,000 visas shall be allocated to qualifying
counties; and
``(ii) any of the visas allocated under clause (i) that are
not issued by June 30 of such fiscal year, may be made
available to any qualified applicant.
``(B) In this paragraph, the term `qualifying county' means
any county that--
``(i) that is outside a metropolitan statistical area; and
``(ii) during the 20-year-period ending on the last day of
the calendar year preceding the date of enactment of the
Secure America and Orderly Immigration Act, experienced a net
out-migration of inhabitants from the county of at least 10
percent of the population of the county at the beginning of
such period.
``(10) In allocating visas under this subsection, the
Secretary of State may take any additional measures necessary
to deter illegal immigration.''.

SEC. 1306. ADJUSTMENT TO LAWFUL PERMANENT RESIDENT STATUS.

Section 245 of the Immigration and Nationality Act (8
U.S.C. 1255) is amended by adding at the end the following:
``(n)(1) For purposes of adjustment of status under
subsection (a), employment-based immigrant visas shall be
made available to an alien having nonimmigrant status
described in section 101(a)(15)(H)(v)(a) upon the filing of a
petition for such a visa--
``(A) by the alien's employer; or
``(B) by the alien, if the alien has maintained such
nonimmigrant status in the United States for a cumulative
total of 4 years.
``(2) An alien having nonimmigrant status described in
section 101(a)(15)(H)(v)(a) may not apply for adjustment of
status under this section unless the alien--
``(A) is physically present in the United States; and
``(B) the alien establishes that the alien--
``(i) meets the requirements of section 312; or
``(ii) is satisfactorily pursuing a course of study to
achieve such an understanding of English and knowledge and
understanding of the history and government of the United
States.
``(3) An alien who demonstrates that the alien meets the
requirements of section 312 may be considered to have
satisfied the requirements of that section for purposes of
becoming naturalized as a citizen of the United States under
title III.
``(4) Filing a petition under paragraph (1) on behalf of an
alien or otherwise seeking permanent residence in the United
States for such alien shall not constitute evidence of the
alien's ineligibility for nonimmigrant status under section
101(a)(15)(H)(v)(a).
``(5) The limitation under section 302(d) regarding the
period of authorized stay shall not apply to any alien having
nonimmigrant status under section 101(a)(15)(H)(v)(a) if--
``(A) a labor certification petition filed under section
203(b) on behalf of such alien is pending; or
``(B) an immigrant visa petition filed under section 204(b)
on behalf of such alien is pending.
``(6) The Secretary of Homeland Security shall extend the
stay of an alien who qualifies for an exemption under
paragraph (5) in 1-year increments until a final decision is
made on the alien's lawful permanent residence.
``(7) Nothing in this subsection shall be construed to
prevent an alien having nonimmigrant status described in
section 101(a)(15)(H)(v)(a) from filing an application for
adjustment of status under this section in accordance with
any other provision of law.''.

SEC. 1307. ESSENTIAL WORKER VISA PROGRAM TASK FORCE.

(a) Establishment of Task Force.--
(1) In general.--There is established a task force to be
known as the Essential Worker Visa Program Task Force
(referred to in this section as the ``Task Force'').
(2) Purposes.--The purposes of the Task Force are--
(A) to study the Essential Worker Visa Program (referred to
in this section as the ``Program'') established under this
title; and
(B) to make recommendations to Congress with respect to
such program.
(3) Membership.--The Task Force shall be composed of 10
members, of whom--
(A) 1 shall be appointed by the President and shall serve
as chairman of the Task Force;
(B) 1 shall be appointed by the leader of the Democratic
Party in the Senate, in consultation with the leader of the
Democratic Party in the House of Representatives, and shall
serve as vice chairman of the Task Force;
(C) 2 shall be appointed by the majority leader of the
Senate;
(D) 2 shall be appointed by the minority leader of the
Senate;
(E) 2 shall be appointed by the Speaker of the House of
Representatives; and
(F) 2 shall be appointed by the minority leader of the
House of Representatives.
(4) Qualifications.--
(A) In general.--Members of the Task Force shall be--
(i) individuals with expertise in economics, demography,
labor, business, or immigration or other pertinent
qualifications or experience; and
(ii) representative of a broad cross-section of
perspectives within the United States, including the public
and private sectors and academia;
(B) Political affiliation.--Not more than 5 members of the
Task Force may be members of the same political party.
(C) Nongovernmental appointees.--An individual appointed to
the Task Force may not be an officer or employee of the
Federal Government or of any State or local government.
(5) Deadline for appointment.--All members of the Task
Force shall be appointed not later than 6 months after the
Program has been implemented.
(6) Vacancies.--Any vacancy in the Task Force shall not
affect its powers, but shall be

[[Page S1095]]

filled in the same manner in which the original appointment
was made.
(7) Meetings.--
(A) Initial meeting.--The Task Force shall meet and begin
the operations of the Task Force as soon as practicable.
(B) Subsequent meetings.--After its initial meeting, the
Task Force shall meet upon the call of the chairman or a
majority of its members.
(8) Quorum.--Six members of the Task Force shall constitute
a quorum.
(b) Duties.--The Task Force shall examine and make
recommendations regarding the Program, including
recommendations regarding--
(1) the development and implementation of the Program;
(2) the criteria for the admission of temporary workers
under the Program;
(3) the formula for determining the yearly numerical
limitations of the Program;
(4) the impact of the Program on immigration;
(5) the impact of the Program on the United States
workforce and United States businesses; and
(6) any other matters regarding the Program that the Task
Force considers appropriate.
(c) Information and Assistance From Federal Agencies.--
(1) Information from federal agencies.--The Task Force may
seek directly from any Federal department or agency such
information, including suggestions, estimates, and
statistics, as the Task Force considers necessary to carry
out the provisions of this section. Upon request of the Task
Force, the head of such department or agency shall furnish
such information to the Task Force.
(2) Assistance from federal agencies.--The Administrator of
General Services shall, on a reimbursable base, provide the
Task Force with administrative support and other services for
the performance of the Task Force's functions. The
departments and agencies of the United States may provide the
Task Force with such services, funds, facilities, staff, and
other support services as they determine advisable and as
authorized by law.
(d) Reports.--
(1) Initial report.--Not later than 2 years after the
Program has been implemented, the Task Force shall submit a
report to Congress, the Secretary of State, the Secretary of
Labor, and the Secretary of Homeland Security that contains--
(A) findings with respect to the duties of the Task Force;
(B) recommendations for improving the Program; and
(C) suggestions for legislative or administrative action to
implement the Task Force recommendations.
(2) Final report.--Not later than 4 years after the
submission of the initial report under paragraph (1), the
Task Force shall submit a final report to Congress, the
Secretary of State, the Secretary of Labor, and the Secretary
of Homeland Security that contains additional findings,
recommendations, and suggestions, as described in paragraph
(1).

SEC. 1308. WILLING WORKER-WILLING EMPLOYER ELECTRONIC JOB
REGISTRY.

(a) Establishment.--The Secretary of Labor shall direct the
coordination and modification of the national system of
public labor exchange services (commonly known as ``America's
Job Bank'') in existence on the date of enactment of this Act
to provide information on essential worker employment
opportunities available to United States workers and
nonimmigrant workers under section 101(a)(15)(H)(v)(a) of the
Immigration and Nationality Act, as added by this Act.
(b) Recruitment of United States Workers.--Before the
completion of evidence of employment for a potential
nonimmigrant worker under section 101(a)(15)(H)(v)(a) of the
Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(v)(a), an employer shall attest that the
employer has posted in the Job Registry for not less than 30
days in order to recruit United States workers. An employer
shall maintain records for not less than 1 year demonstrating
why United States workers who applied were not hired.
(c) Oversight and Maintenance of Records.--The Secretary of
Labor shall maintain electronic job registry records, as
established by regulation, for the purpose of audit or
investigation.
(d) Access to Job Registry.--
(1) Circulation in interstate employment service system.--
The Secretary of Labor shall ensure that job opportunities
advertised on the electronic job registry established under
this section are accessible by the State workforce agencies,
which may further disseminate job opportunity information to
other interested parties.
(2) Internet.--The Secretary of Labor shall ensure that the
Internet-based electronic job registry established or
approved under this section may be accessed by workers,
employers, labor organizations, and other interested parties.

SEC. 1309. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary of
State such sums as may be necessary to carry out this title
and the amendments made by this title for the period
beginning on the date of enactment of this Act and ending on
the last day of the sixth fiscal year beginning after the
effective date of the regulations promulgated by the
Secretary to implement this title.

TITLE IV--ENFORCEMENT

SEC. 1401. DOCUMENT AND VISA REQUIREMENTS.

(a) In General.--Section 221(a) of the Immigration and
Nationality Act (8 U.S.C. 1201(a)) is amended by adding at
the end the following:
``(3) Visas and Immigration Related Document
Requirements.--
``(A) Visas issued by the Secretary of State and
immigration related documents issued by the Secretary of
State or the Secretary of Homeland Security shall comply with
authentication and biometric standards recognized by domestic
and international standards organizations.
``(B) Such visas and documents shall--
``(i) be machine-readable and tamper-resistant;
``(ii) use biometric identifiers that are consistent with
the requirements of section 303 of the Enhanced Border
Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1732),
and represent the benefits and status set forth in such
section;
``(iii) comply with the biometric and document identifying
standards established by the International Civil Aviation
Organization; and
``(iv) be compatible with the United States Visitor and
Immigrant Status Indicator Technology and the employment
verification system established under section 274E.
``(C) The information contained on the visas or immigration
related documents described in subparagraph (B) shall
include--
``(i) the alien's name, date and place of birth, alien
registration or visa number, and, if applicable, social
security number;
``(ii) the alien's citizenship and immigration status in
the United States; and
``(iii) the date that such alien's authorization to work in
the United States expires, if appropriate.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date that is 6 months after the date
of enactment of this Act.

SEC. 1402. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

(a) In General.--Chapter 8 of title II of the Immigration
and Nationality Act (8 U.S.C. 1321 et seq.) is amended by
inserting after section 274D the following:

``EMPLOYMENT ELIGIBILITY

``Sec. 274E.  (a) Employment Eligibility Confirmation
System.--
``(1) In general.--The Commissioner of Social Security, in
consultation and coordination with the Secretary of Homeland
Security, shall establish an Employment Eligibility
Confirmation System (referred to in this section as the
`System') through which the Commissioner responds to
inquiries made by employers who have hired individuals
concerning each individual's identity and employment
authorization.
``(2) Maintenance of records.--The Commissioner shall
electronically maintain records by which compliance under the
System may be verified.
``(3) Objectives of the system.--The System shall--
``(A) facilitate the eventual transition for all businesses
from the employer verification system established in section
274A with the System;
``(B) utilize, as a central feature of the System, machine-
readable documents that contain encrypted electronic
information to verify employment eligibility; and
``(C) provide for the evidence of employment required under
section 218A.
``(4) Initial response.--The System shall provide--
``(A) confirmation or a tentative nonconfirmation of an
individual's identity and employment eligibility not later
than 1 working day after the initial inquiry; and
``(B) an appropriate code indicating such confirmation or
tentative nonconfirmation.
``(5) Secondary verification process in case of tentative
nonconfirmation.--
``(A) Establishment.--For cases of tentative
nonconfirmation, the Commissioner of Social Security, in
consultation and coordination with the Secretary of Homeland
Security, shall establish a secondary verification process.
The employer shall make the secondary verification inquiry
not later than 10 days after receiving a tentative
nonconfirmation.
``(B) Discrepancies.--If an employee chooses to contest a
secondary nonconfirmation, the employer shall provide the
employee with a referral letter and instruct the employee to
visit an office of the Department of Homeland Security or the
Social Security Administration to resolve the discrepancy not
later than 10 working days after the receipt of such referral
letter in order to obtain confirmation.
``(C) Failure to contest.--An individual's failure to
contest a confirmation shall not constitute knowledge (as
defined in section 274a.1(l) of title 8, Code of Federal
Regulations.
``(6) Design and operation of system.--The System shall be
designed, implemented, and operated--
``(A) to maximize its reliability and ease of use
consistent with protecting the privacy and security of the
underlying information through technical and physical
safeguards;
``(B) to allow employers to verify that a newly hired
individual is authorized to be employed;
``(C) to permit individuals to--
``(i) view their own records in order to ensure the
accuracy of such records; and
``(ii) contact the appropriate agency to correct any errors
through an expedited process

[[Page S1096]]

established by the Commissioner of Social Security, in
consultation and coordination with the Secretary of Homeland
Security; and
``(D) to prevent discrimination based on national origin or
citizenship status under section 274B.
``(7) Unlawful uses of system.--It shall be an unlawful
immigration-related employment practice--
``(A) for employers or other third parties to use the
System selectively or without authorization;
``(B) to use the System prior to an offer of employment;
``(C) to use the System to exclude certain individuals from
consideration for employment as a result of a perceived
likelihood that additional verification will be required,
beyond what is required for most job applicants;
``(D) to use the System to deny certain employment
benefits, otherwise interfere with the labor rights of
employees, or any other unlawful employment practice; or
``(E) to take adverse action against any person, including
terminating or suspending an employee who has received a
tentative nonconfirmation.
``(b) Employment Eligibility Database.--
``(1) Requirement.--The Commissioner of Social Security, in
consultation and coordination with the Secretary of Homeland
Security and other appropriate agencies, shall design,
implement, and maintain an Employment Eligibility Database
(referred to in this section as the `Database') as described
in this subsection.
``(2) Data.--The Database shall include, for each
individual who is not a citizen or national of the United
States, but is authorized or seeking authorization to be
employed in the United States, the individual's--
``(A) country of origin;
``(B) immigration status;
``(C) employment eligibility;
``(D) occupation;
``(E) metropolitan statistical area of employment;
``(F) annual compensation paid;
``(G) period of employment eligibility;
``(H) employment commencement date; and
``(I) employment termination date.
``(3) Reverification of employment eligibility.--The
Commissioner of Social Security shall prescribe, by
regulation, a system to annually reverify the employment
eligibility of each individual described in this section--
``(A) by utilizing the machine-readable documents described
in section 221(a)(3); or
``(B) if machine-readable documents are not available, by
telephonic or electronic communication.
``(4) Confidentiality.--
``(A) Access to database.--No officer or employee of any
agency or department of the United States, other than
individuals responsible for the verification of employment
eligibility or for the evaluation of the employment
verification program at the Social Security Administration,
the Department of Homeland Security, and the Department of
Labor, may have access to any information contained in the
Database.
``(B) Protection from unauthorized disclosure.--Information
in the Database shall be adequately protected against
unauthorized disclosure for other purposes, as provided in
regulations established by the Commissioner of Social
Security, in consultation with the Secretary of Homeland
Security and the Secretary of Labor.
``(5) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be necessary
to design, implement, and maintain the Database.
``(c) Gradual Implementation.--The Commissioner of Social
Security, in coordination with the Secretary of Homeland
Security and the Secretary of Labor shall develop a plan to
phase all workers into the Database and phase out the
employer verification system established in section 274A over
a period of time that the Commissioner determines to be
appropriate.
``(d) Employer Responsibilities.--Each employer shall--
``(1) notify employees and prospective employees of the use
of the System and that the System may be used for immigration
enforcement purposes;
``(2) verify the identification and employment
authorization status for newly hired individuals described in
section 101(a)(15)(H)(v)(a) not later than 3 days after the
date of hire;
``(3) use--
``(A) a machine-readable document described in subsection
(a)(3)(B); or
``(B) the telephonic or electronic system to access the
Database;
``(4) provide, for each employer hired, the occupation,
metropolitan statistical area of employment, and annual
compensation paid;
``(5) retain the code received indicating confirmation or
nonconfirmation, for use in investigations described in
section 212(n)(2); and
``(6) provide a copy of the employment verification receipt
to such employees.
``(e) Good-Faith Compliance.--
``(1) Affirmative defense.--A person or entity that
establishes good faith compliance with the requirements of
this section with respect to the employment of an individual
in the United States has established an affirmative defense
that the person or entity has not violated this section.
``(2) Limitation.--Paragraph (1) shall not apply if a
person or entity engages in an unlawful immigration-related
employment practice described in subsection (a)(7).''.
(b) Interim Directive.--Before the implementation of the
Employment Eligibility Confirmation System (referred to in
this section as the ``System'') established under section
274E of the Immigration and Nationality Act, as added by
subsection (a), the Commissioner of Social Security, in
coordination with the Secretary of Homeland Security, shall,
to the maximum extent practicable, implement an interim
system to confirm employment eligibility that is consistent
with the provisions of such section.
(c) Reports.--
(1) In general.--Not later than 3 months after the last day
of the second year and of the third year that the System is
in effect, the Comptroller General of the United States shall
submit to the Committee on the Judiciary of the Senate and
the Committee on the Judiciary of the House of
Representatives a report on the System.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) an assessment of the impact of the System on the
employment of unauthorized workers;
(B) an assessment of the accuracy of the Employment
Eligibility Database maintained by the Department of Homeland
Security and Social Security Administration databases, and
timeliness and accuracy of responses from the Department of
Homeland Security and the Social Security Administration to
employers;
(C) an assessment of the privacy, confidentiality, and
system security of the System;
(D) assess whether the System is being implemented in a
nondiscriminatory manner; and
(E) include recommendations on whether or not the System
should be modified.

SEC. 1403. IMPROVED ENTRY AND EXIT DATA SYSTEM.

Section 110 of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1365a) is amended--
(1) by striking ``Attorney General'' each place it appears
and inserting ``Secretary of Homeland Security'';
(2) in subsection (b)--
(A) in paragraph (1)(C), by striking ``Justice'' and
inserting ``Homeland Security'';
(B) in paragraph (4), by striking ``and'' at the end;
(C) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(6) collects the biometric machine-readable information
from an alien's visa or immigration-related document
described in section 221(a)(3) of the Immigration and
Nationality Act (8 U.S.C. 1201(a)(3) at the time an alien
arrives in the United States and at the time an alien departs
from the United States to determine if such alien is
entering, or is present in, the United States unlawfully.'';
and
(3) in subsection (f)(1), by striking ``Departments of
Justice and State'' and inserting ``Department of Homeland
Security and the Department of State''.

SEC. 1404. DEPARTMENT OF LABOR INVESTIGATIVE AUTHORITIES.

Section 212(n)(2) of the Immigration and Nationality Act (8
U.S.C. 1182(n)(2)) is amended--
(1) by redesignating subparagraph (H) as subparagraph (J);
and
(2) by inserting after subparagraph (G) the following:
``(H)(i) The Secretary of Labor may initiate an
investigation of any employer that employs nonimmigrants
described in section 101(a)(15)(H)(v)(a) if the Secretary, or
the Secretary's designee--
``(I) certifies that reasonable cause exists to believe
that the employer is out of compliance with the Secure
America and Orderly Immigration Act or section 274E; and
``(II) approves the commencement of the investigation.
``(ii) In determining whether reasonable cause exists to
initiate an investigation under this section, the Secretary
shall--
``(I) monitor the Willing Worker-Willing Employer
Electronic Job Registry;
``(II) monitor the Employment Eligibility Confirmation
System, taking into consideration whether--
``(aa) an employer's submissions to the System generate a
high volume of tentative nonconfirmation responses relative
to other comparable employers;
``(bb) an employer rarely or never screens hired
individuals;
``(cc) individuals employed by an employer rarely or never
pursue a secondary verification process as established in
section 274E; or
``(dd) any other indicators of illicit, inappropriate or
discriminatory use of the System, especially those described
in section 274E(a)(6)(D), exist; and
``(III) consider any additional evidence that the Secretary
determines appropriate.
``(iii) Absent other evidence of noncompliance, an
investigation under this subparagraph should not be initiated
for lack of completeness or obvious inaccuracies by the
employer in complying with section 101(a)(15)(H)(v)(a).''.

SEC. 1405. PROTECTION OF EMPLOYMENT RIGHTS.

The Secretary and the Secretary of Homeland Security shall
establish a process under which a nonimmigrant worker
described in clause (ii)(b) or (v)(a) of section
101(a)(15)(H) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(H)) who files a nonfrivolous

[[Page S1097]]

complaint regarding a violation of this section and is
otherwise eligible to remain and work in the United States
may be allowed to seek other appropriate employment in the
United States with an employer for a period not to exceed the
maximum period of stay authorized for that nonimmigrant
classification.

SEC. 1406. INCREASED FINES FOR PROHIBITED BEHAVIOR.

Section 274B(g)(2)(B)(iv) of the Immigration and
Nationality Act (8 U.S.C. 1324b(g)(2)(B)(iv)) is amended--
(1) in subclause (I), by striking ``not less than $250 and
not more than $2,000'' and inserting ``not less than $500 and
not more than $4,000'';
(2) in subclause (II), by striking ``not less than $2,000
and not more than $5,000'' and inserting ``not less than
$4,000 and not more than $10,000''; and
(3) in subclause (III), by striking ``not less than $3,000
and not more than $10,000'' and inserting ``not less than
$6,000 and not more than $20,000''.

TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

SEC. 1501. LABOR MIGRATION FACILITATION PROGRAMS.

(a) Authority for Program.--
(1) In general.--The Secretary of State is authorized to
enter into an agreement to establish and administer a labor
migration facilitation program jointly with the appropriate
official of a foreign government whose citizens participate
in the temporary worker program authorized under section
101(a)(15)(H)(v)(a) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(H)(v)(a)).
(2) Priority.--In establishing programs under subsection
(a), the Secretary of State shall place a priority on
establishing such programs with foreign governments that have
a large number of nationals working as temporary workers in
the United States under such section 101(a)(15)(H)(v)(a). The
Secretary shall enter into such agreements not later than 3
months after the date of enactment of this Act or as soon
thereafter as is practicable.
(3) Elements of program.--A program established under
paragraph (1) may provide for--
(A) the Secretary of State, in conjunction with the
Secretary of Homeland Security and the Secretary of Labor, to
confer with a foreign government--
(i) to establish and implement a program to assist
temporary workers from such a country to obtain nonimmigrant
status under such section 101(a)(15)(H)(v)(a);
(ii) to establish programs to create economic incentives
for aliens to return to their home country;
(B) the foreign government to monitor the participation of
its nationals in such a temporary worker program, including
departure from and return to a foreign country;
(C) the foreign government to develop and promote a
reintegration program available to such individuals upon
their return from the United States;
(D) the foreign government to promote or facilitate travel
of such individuals between the country of origin and the
United States; and
(E) any other matters that the foreign government and
United States find appropriate to enable such individuals to
maintain strong ties to their country of origin.

SEC. 1502. BILATERAL EFFORTS WITH MEXICO TO REDUCE MIGRATION
PRESSURES AND COSTS.

(a) Findings.--Congress makes the following findings:
(1) Migration from Mexico to the United States is directly
linked to the degree of economic opportunity and the standard
of living in Mexico.
(2) Mexico comprises a prime source of migration to the
United States.
(3) Remittances from Mexican citizens working in the United
States reached a record high of nearly $17,000,000,000 in
2004.
(4) Migration patterns may be reduced from Mexico to the
United States by addressing the degree of economic
opportunity available to Mexican citizens.
(5) Many Mexican assets are held extra-legally and cannot
be readily used as collateral for loans.
(6) A majority of Mexican businesses are small or medium
size with limited access to financial capital.
(7) These factors constitute a major impediment to broad-
based economic growth in Mexico.
(8) Approximately 20 percent of Mexico's population works
in agriculture, with the majority of this population working
on small farms and few on large commercial enterprises.
(9) The Partnership for Prosperity is a bilateral
initiative launched jointly by the President of the United
States and the President of Mexico in 2001, which aims to
boost the social and economic standards of Mexican citizens,
particularly in regions where economic growth has lagged and
emigration has increased.
(10) The Presidents of Mexico and the United States and the
Prime Minister of Canada, at their trilateral summit on March
23, 2005, agreed to promote economic growth, competitiveness,
and quality of life in the agreement on Security and
Prosperity Partnership of North America.
(b) Sense of Congress Regarding Partnership for
Prosperity.--It is the sense of Congress that the United
States and Mexico should accelerate the implementation of the
Partnership for Prosperity to help generate economic growth
and improve the standard of living in Mexico, which will lead
to reduced migration, by--
(1) increasing access for poor and under served populations
in Mexico to the financial services sector, including credit
unions;
(2) assisting Mexican efforts to formalize its extra-legal
sector, including the issuance of formal land titles, to
enable Mexican citizens to use their assets to procure
capital;
(3) facilitating Mexican efforts to establish an effective
rural lending system for small- and medium-sized farmers that
will--
(A) provide long term credit to borrowers;
(B) develop a viable network of regional and local
intermediary lending institutions; and
(C) extend financing for alternative rural economic
activities beyond direct agricultural production;
(4) expanding efforts to reduce the transaction costs of
remittance flows in order to increase the pool of savings
available to help finance domestic investment in Mexico;
(5) encouraging Mexican corporations to adopt
internationally recognized corporate governance practices,
including anti-corruption and transparency principles;
(6) enhancing Mexican efforts to strengthen governance at
all levels, including efforts to improve transparency and
accountability, and to eliminate corruption, which is the
single biggest obstacle to development;
(7) assisting the Government of Mexico in implementing all
provisions of the Inter-American Convention Against
Corruption (ratified by Mexico on May 27, 1997) and urging
the Government of Mexico to participate fully in the
Convention's formal implementation monitoring mechanism;
(8) helping the Government of Mexico to strengthen
education and training opportunities throughout the country,
with a particular emphasis on improving rural education; and
(9) encouraging the Government of Mexico to create
incentives for persons who have migrated to the United States
to return to Mexico.
(c) Sense of Congress Regarding Bilateral Partnership on
Health Care.--It is the sense of Congress that the Government
of the United States and the Government of Mexico should
enter into a partnership to examine uncompensated and
burdensome health care costs incurred by the United States
due to legal and illegal immigration, including--
(1) increasing health care access for poor and under served
populations in Mexico;
(2) assisting Mexico in increasing its emergency and trauma
health care facilities along the border, with emphasis on
expanding prenatal care in the United States-Mexico border
region;
(3) facilitating the return of stable, incapacitated
workers temporarily employed in the United States to Mexico
in order to receive extended, long-term care in their home
country; and
(4) helping the Government of Mexico to establish a program
with the private sector to cover the health care needs of
Mexican nationals temporarily employed in the United States.

TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

SEC. 1601. ELIMINATION OF EXISTING BACKLOGS.

(a) Family-Sponsored Immigrants.--Section 201(c) of the
Immigration and Nationality Act (8 U.S.C. 1151(c)) is amended
to read as follows:
``(c) Worldwide Level of Family-Sponsored Immigrants.--The
worldwide level of family-sponsored immigrants under this
subsection for a fiscal year is equal to the sum of--
``(1) 480,000;
``(2) the difference between the maximum number of visas
authorized to be issued under this subsection during the
previous fiscal year and the number of visas issued during
the previous fiscal year; and
``(3) the difference between--
``(A) the maximum number of visas authorized to be issued
under this subsection during fiscal years 2001 through 2005
minus the number of visas issued under this subsection during
those years; and
``(B) the number of visas described in subparagraph (A)
that were issued after fiscal year 2005.''.
(b) Employment-Based Immigrants.--Section 201(d) of the
Immigration and Nationality Act (8 U.S.C. 1151(d)) is amended
to read as follows:
``(d) Worldwide Level of Employment-Based Immigrants.--The
worldwide level of employment-based immigrants under this
subsection for a fiscal year is equal to the sum of--
``(1) 290,000;
``(2) the difference between the maximum number of visas
authorized to be issued under this subsection during the
previous fiscal year and the number of visas issued during
the previous fiscal year; and
``(3) the difference between--
``(A) the maximum number of visas authorized to be issued
under this subsection during fiscal years 2001 through 2005
and the number of visa numbers issued under this subsection
during those years; and
``(B) the number of visas described in subparagraph (A)
that were issued after fiscal year 2005.''.

SEC. 1602. COUNTRY LIMITS.

Section 202(a) of the Immigration and Nationality Act (8
U.S.C. 1152(a)) is amended--
(1) in paragraph (2)--

[[Page S1098]]

(A) by striking ``, (4), and (5)'' and inserting ``and
(4)''; and
(B) by striking ``7 percent (in the case of a single
foreign state) or 2 percent'' and inserting ``10 percent (in
the case of a single foreign state) or 5 percent''; and
(2) by striking paragraph (5).

SEC. 1603. ALLOCATION OF IMMIGRANT VISAS.

(a) Preference Allocation for Family-Sponsored
Immigrants.--Section 203(a) of the Immigration and
Nationality Act (8 U.S.C. 1153(a)) is amended to read as
follows:
``(a) Preference Allocations for Family-Sponsored
Immigrants.--Aliens subject to the worldwide level specified
in section 201(c) for family-sponsored immigrants shall be
allocated visas as follows:
``(1) Unmarried sons and daughters of citizens.--Qualified
immigrants who are the unmarried sons or daughters of
citizens of the United States shall be allocated visas in a
quantity not to exceed 10 percent of such worldwide level
plus any visas not required for the class specified in
paragraph (4).
``(2) Spouses and unmarried sons and daughters of permanent
resident aliens.--Visas in a quantity not to exceed 50
percent of such worldwide level plus any visas not required
for the class specified in paragraph (1) shall be allocated
to qualified immigrants--
``(A) who are the spouses or children of an alien lawfully
admitted for permanent residence, which visas shall
constitute not less than 77 percent of the visas allocated
under this paragraph; or
``(B) who are the unmarried sons or daughters of an alien
lawfully admitted for permanent residence.
``(3) Married sons and daughters of citizens.--Qualified
immigrants who are the married sons and daughters of citizens
of the United States shall be allocated visas in a quantity
not to exceed 10 percent of such worldwide level plus any
visas not required for the classes specified in paragraphs
(1) and (2).
``(4) Brothers and sisters of citizens.--Qualified
immigrants who are the brothers or sisters of citizens of the
United States who are at least 21 years of age shall be
allocated visas in a quantity not to exceed 30 percent of the
worldwide level plus any visas not required for the classes
specified in paragraphs (1) through (3).''.
(b) Preference Allocation for Employment-Based
Immigrants.--Section 203(b) of the Immigration and
Nationality Act (8 U.S.C. 1153(b)) is amended--
(1) in paragraph (1), by striking ``28.6 percent'' and
inserting ``20 percent'';
(2) in paragraph (2)(A), by striking ``28.6 percent'' and
inserting ``20 percent'';
(3) in paragraph (3)(A)--
(A) by striking ``28.6 percent'' and inserting ``35
percent''; and
(B) by striking clause (iii);
(4) by striking paragraph (4);
(5) by redesignating paragraph (5) as paragraph (4);
(6) in paragraph (4)(A), as redesignated, by striking ``7.1
percent'' and inserting ``5 percent'';
(7) by inserting after paragraph (4), as redesignated, the
following:
``(5) Other workers.--Visas shall be made available, in a
number not to exceed 30 percent of such worldwide level, plus
any visa numbers not required for the classes specified in
paragraphs (1) through (4), to qualified immigrants who are
capable, at the time of petitioning for classification under
this paragraph, of performing unskilled labor that is not of
a temporary or seasonal nature, for which qualified workers
are determined to be unavailable in the United States, or to
nonimmigrants under section 101(a)(15)(H)(v)(a).''; and
(8) by striking paragraph (6).
(c) Conforming Amendments.--
(1) Definition of special immigrant.--Section 101(a)(27)(M)
of the Immigration and Nationality Act (8 U.S.C.
1101(a)(27)(M)) is amended by striking ``subject to the
numerical limitations of section 203(b)(4),''.
(2) Repeal of temporary reduction in workers' visas.--
Section 203(e) of the Nicaraguan Adjustment and Central
American Relief Act (8 U.S.C. 1153 note) is repealed.

SEC. 1604. RELIEF FOR CHILDREN AND WIDOWS.

(a) In General.--Section 201(b)(2)(A)(i) of the Immigration
and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)) is amended by
striking ``spouses, and parents of a citizen of the United
States'' and inserting ``(and their children who are
accompanying or following to join them), the spouses (and
their children who are accompanying or following to join
them), and the parents of a citizen of the United States (and
their children who are accompanying or following to join
them)''.
(b) Petition.--Section 204(a)(1)(A)(ii) of the Immigration
and Nationality Act (8 U.S.C. 1154 (a)(1)(A)(ii) is amended
by inserting ``or an alien child or alien parent described in
the third sentence of section 201(b)(2)(A)(i)'' after
``section 201(b)(2)(A)(i)''.
(c) Adjustment of Status.--Section 245 of the Immigration
and Nationality Act (8 U.S.C. 1255) is amended by adding at
the end the following:
``(n) Applications for Adjustment of Status by Surviving
Spouses, Children, and Parents.--
``(1) In general.--Notwithstanding subsections (a) and (c)
(except subsection (c)(6)), any alien described in paragraph
(2) who applied for adjustment of status prior to the death
of the qualifying relative, may have such application
adjudicated as if such death had not occurred.
``(2) Alien described.--An alien described in this
paragraph is an alien who--
``(A) is an immediate relative (as defined in section
201(b)(2)(A)(i));
``(B) is a family-sponsored immigrant (as described in
subsection (a) or (d) of section 203);
``(C) is a derivative beneficiary of an employment-based
immigrant under section 203(b), as described in section
203(d); or
``(D) is a derivative beneficiary of a diversity immigrant
(as described in section 203(c)).''.
(d) Transition Period.--Notwithstanding a denial of an
application for adjustment of status not more than 2 years
before the date of enactment of this Act, in the case of an
alien whose qualifying relative died before the date of
enactment of this Act, such application may be renewed by the
alien through a motion to reopen, without fee, filed not
later than 1 year after the date of enactment of this Act.

SEC. 1605. AMENDING THE AFFIDAVIT OF SUPPORT REQUIREMENTS.

Section 213A of the Immigration and Nationality Act (8
U.S.C. 1183a) is amended--
(1) in subsection (a)(1)(A), by striking ``125'' and
inserting ``100''; and
(2) in subsection (f), by striking ``125'' each place it
appears and inserting ``100''.

SEC. 1606. DISCRETIONARY AUTHORITY.

Section 212(i) of the Immigration and Nationality Act (8
U.S.C. 1182(i)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2)(A) The Secretary of Homeland Security may waive the
application of subsection (a)(6)(C)--
``(i) in the case of an immigrant who is the spouse,
parent, son, or daughter of a United States citizen or of an
alien lawfully admitted for permanent residence, if the
Secretary of Homeland Security determines that the refusal of
admission to the United States of such immigrant alien would
result in extreme hardship to the citizen or lawfully
resident spouse, child, son, daughter, or parent of such an
alien; or
``(ii) in the case of an alien granted classification under
clause (iii) or (iv) of section 204(a)(1)(A) or clause (ii)
or (iii) of section 204(a)(1)(B), the alien demonstrates
extreme hardship to the alien or the alien's parent or child
if, such parent or child is a United States citizen, a lawful
permanent resident, or a qualified alien.
``(B) An alien who is granted a waiver under subparagraph
(A) shall pay a $2,000 fine.''.

SEC. 1607. FAMILY UNITY.

Section 212(a)(9) of the Immigration and Nationality Act (8
U.S.C. 1182(a)(9)) is amended--
(1) in subparagraph (B)(iii)(I), by striking ``18'' and
inserting ``21''; and
(2) in subparagraph (C)(ii)--
(A) by redesignating subclauses (1) and (2) as subclauses
(I) and (II); and
(B) in subclause (II), as redesignated, by redesignating
items (A), (B), (C), and (D) as items (aa), (bb), (cc), and
(dd); and
(3) by adding at the end the following:
``(D) Waiver.--
``(i) In general.--The Secretary may waive the application
of subparagraphs (B) and (C) for an alien who is a
beneficiary of a petition filed under sections 201 and 203 if
such petition was filed on or before the date of introduction
of Secure America and Orderly Immigration Act.
``(ii) Fine.--An alien who is granted a waiver under clause
(i) shall pay a $2,000 fine.''.

TITLE VII--H-5B NONIMMIGRANTS

SEC. 1701. H-5B NONIMMIGRANTS.

(a) In General.--Chapter 5 of title II of the Immigration
and Nationality Act (8 U.S.C. 1255 et seq.) is amended by
adding after section 250 the following:

``H-5B NONIMMIGRANTS

``Sec. 250A.  (a) In General.--The Secretary of Homeland
Security shall adjust the status of an alien to that of a
nonimmigrant under section 101(a)(15)(H)(v)(b) if the alien--
``(1) submits an application for such adjustment; and
``(2) meets the requirements of this section.
``(b) Presence in the United States.--The alien shall
establish that the alien--
``(1) was present in the United States before the date on
which the Secure America and Orderly Immigration Act was
introduced, and has been continuously in the United States
since such date; and
``(2) was not legally present in the United States on the
date on which the Secure America and Orderly Immigration Act
was introduced under any classification set forth in section
101(a)(15).
``(c) Spouses and Children.--Notwithstanding any other
provision of law, the Secretary of Homeland Security shall,
if the person is otherwise eligible under subsection (b)--
``(1) adjust the status to that of a nonimmigrant under
section 101(a)(15)(H)(v)(b) for, or provide a nonimmigrant
visa to, the spouse or child of an alien who is provided
nonimmigrant status under section 101(a)(15)(H)(v)(b); or
``(2) adjust the status to that of a nonimmigrant under
section 101(a)(15)(H)(v)(b) for an alien who, before the date
on which the Secure America and Orderly Immigration Act was
introduced in Congress, was the spouse or child of an alien
who is provided nonimmigrant status under section

[[Page S1099]]

101(a)(15)(H)(v)(b), or is eligible for such status, if--
``(A) the termination of the qualifying relationship was
connected to domestic violence; and
``(B) the spouse or child has been battered or subjected to
extreme cruelty by the spouse or parent alien who is provided
nonimmigrant status under section 101(a)(15)(H)(v)(b).
``(d) Other Criteria.--
``(1) In general.--An alien may be granted nonimmigrant
status under section 101(a)(15)(H)(v)(b), or granted status
as the spouse or child of an alien eligible for such status
under subsection (c), if the alien establishes that the
alien--
``(A) is not inadmissible to the United States under
section 212(a), except as provided in paragraph (2); or
``(B) has not ordered, incited, assisted, or otherwise
participated in the persecution of any person on account of
race, religion, nationality, membership in a particular
social group, or political opinion.
``(2) Grounds of inadmissibility.--In determining an
alien's admissibility under paragraph (1)(A)--
``(A) paragraphs (5), (6)(A), (6)(B), (6)(C), (6)(F),
(6)(G), (7), (9), and (10)(B) of section 212(a) shall not
apply for conduct that occurred before the date on which the
Secure America and Orderly Immigration Act was introduced;
``(B) the Secretary of Homeland Security may not waive--
``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of
section 212(a)(2) (relating to criminals);
``(ii) section 212(a)(3) (relating to security and related
grounds); or
``(iii) subparagraph (A) or (C) of section 212(a)(10)
(relating to polygamists and child abductors);
``(C) for conduct that occurred before the date on which
the Secure America and Orderly Immigration Act was
introduced, the Secretary of Homeland Security may waive the
application of any provision of section 212(a) not listed in
subparagraph (B) on behalf of an individual alien for
humanitarian purposes, to ensure family unity, or when such
waiver is otherwise in the public interest; and
``(D) nothing in this paragraph shall be construed as
affecting the authority of the Secretary of Homeland Security
other than under this paragraph to waive the provisions of
section 212(a).
``(3) Applicability of other provisions.--Sections 240B(d)
and 241(a)(5) shall not apply to an alien who is applying for
adjustment of status in accordance with this title for
conduct that occurred before the date on which the Secure
America and Orderly Immigration Act was introduced.
``(e) Employment.--
``(1) In general.--The Secretary of Homeland Security may
not adjust the status of an alien to that of a nonimmigrant
under section 101(a)(15)(H)(v)(b) unless the alien
establishes that the alien--
``(A) was employed in the United States, whether full time,
part time, seasonally, or self-employed, before the date on
which the Secure America and Orderly Immigration Act was
introduced; and
``(B) has been employed in the United States since that
date.
``(2) Evidence of employment.--
``(A) Conclusive documents.--An alien may conclusively
establish employment status in compliance with paragraph (1)
by submitting to the Secretary of Homeland Security records
demonstrating such employment maintained by--
``(i) the Social Security Administration, Internal Revenue
Service, or by any other Federal, State, or local government
agency;
``(ii) an employer; or
``(iii) a labor union, day labor center, or an organization
that assists workers in matters related to employment.
``(B) Other documents.--An alien who is unable to submit a
document described in clauses (i) through (iii) of
subparagraph (A) may satisfy the requirement in paragraph (1)
by submitting to the Secretary at least 2 other types of
reliable documents that provide evidence of employment,
including--
``(i) bank records;
``(ii) business records;
``(iii) sworn affidavits from nonrelatives who have direct
knowledge of the alien's work; or
``(iv) remittance records.
``(3) Intent of congress.--It is the intent of Congress
that the requirement in this subsection be interpreted and
implemented in a manner that recognizes and takes into
account the difficulties encountered by aliens in obtaining
evidence of employment due to the undocumented status of the
alien.
``(4) Burden of proof.--An alien described in paragraph (1)
who is applying for adjustment of status under this section
has the burden of proving by a preponderance of the evidence
that the alien has satisfied the requirements of this
subsection. An alien may meet such burden of proof by
producing sufficient evidence to demonstrate such employment
as a matter of reasonable inference.
``(f) Special Rules for Minors and Individuals Who Entered
as Minors.--The employment requirements under this section
shall not apply to any alien under 21 years of age.
``(g) Education Permitted.--An alien may satisfy the
employment requirements under this section, in whole or in
part, by full-time attendance at--
``(1) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)); or
``(2) a secondary school (as defined in section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801)).
``(h) Security and Law Enforcement Background Checks.--
``(1) Submission of fingerprints.--An alien may not be
granted nonimmigrant status under section
101(a)(15)(H)(v)(b), or granted status as the spouse or child
of an alien eligible for such status under subsection (c),
unless the alien submits fingerprints in accordance with
procedures established by the Secretary of Homeland Security.
``(2) Background checks.--The Secretary of Homeland
Security shall utilize fingerprints and other data provided
by the alien to conduct a background check of such alien
relating to criminal, national security, or other law
enforcement actions that would render the alien ineligible
for adjustment of status as described in this section.
``(3) Expeditious processing.--The background checks
required under paragraph (2) shall be conducted as
expeditiously as possible.
``(i) Period of Authorized Stay and Application Fee and
Fine.--
``(1) Period of authorized stay.--
``(A) In general.--The period of authorized stay for a
nonimmigrant described in section 101(a)(15)(H)(v)(b) shall
be 6 years.
``(B) Limitation.--The Secretary of Homeland Security may
not authorize a change from such nonimmigrant classification
to any other immigrant or nonimmigrant classification until
the termination of the 6-year period described in
subparagraph (A). The Secretary may only extend such period
to accommodate the processing of an application for
adjustment of status under section 245B.
``(2) Application fee.--The Secretary of Homeland Security
shall impose a fee for filing an application for adjustment
of status under this section. Such fee shall be sufficient to
cover the administrative and other expenses incurred in
connection with the review of such applications.
``(3) Fines.--
``(A) In general.--In addition to the fee required under
paragraph (2), the Secretary of Homeland Security may accept
an application for adjustment of status under this section
only if the alien pays a $1,000 fine.
``(B) Exception.--Fines paid under this paragraph shall not
be required from an alien under the age of 21.
``(4) Collection of fees and fines.--All fees and fines
collected under this section shall be deposited in the
Treasury in accordance with section 286(w).
``(j) Treatment of Applicants.--
``(1) In general.--An alien who files an application under
this section, including the alien's spouse or child--
``(A) shall be granted employment authorization pending
final adjudication of the alien's application for adjustment
of status;
``(B) shall be granted permission to travel abroad;
``(C) may not be detained, determined inadmissible or
deportable, or removed pending final adjudication of the
alien's application for adjustment of status, unless the
alien, through conduct or criminal conviction, becomes
ineligible for such adjustment of status; and
``(D) may not be considered an unauthorized alien (as
defined in section 274A(h)(3)) until employment authorization
under subparagraph (A) is denied.
``(2) Before application period.--If an alien is
apprehended after the date of enactment of this section, but
before the promulgation of regulations pursuant to this
section, and the alien can establish prima facie eligibility
as a nonimmigrant under section 101(a)(15)(H)(v)(b), the
Secretary of Homeland Security shall provide the alien with a
reasonable opportunity, after promulgation of regulations, to
file an application for adjustment.
``(3) During certain proceedings.--Notwithstanding any
provision of this Act, an alien who is in removal proceedings
shall have an opportunity to apply for adjustment of status
under this title unless a final administrative determination
has been made.
``(4) Relationships of application to certain orders.--An
alien who is present in the United States and has been
ordered excluded, deported, removed, or ordered to depart
voluntarily from the United States under any provision of
this Act may, notwithstanding such order, apply for
adjustment of status in accordance with this section. Such an
alien shall not be required to file a separate motion to
reopen, reconsider, or vacate the exclusion, deportation,
removal, or voluntary departure order. If the Secretary of
Homeland Security grants the application, the Secretary shall
cancel such order. If the Secretary of Homeland Security
renders a final administrative decision to deny the
application, such order shall be effective and enforceable to
the same extent as if the application had not been made.
``(k) Administrative and Judicial Review.--
``(1) Administrative review.--
``(A) Single level of administrative appellate review.--The
Secretary of Homeland Security shall establish an appellate
authority within the United States Citizenship and
Immigration Services to provide for

[[Page S1100]]

a single level of administrative appellate review of a
determination respecting an application for adjustment of
status under this section.
``(B) Standard for review.--Administrative appellate review
referred to in subparagraph (A) shall be based solely upon
the administrative record established at the time of the
determination on the application and upon the presentation of
additional or newly discovered evidence during the time of
the pending appeal.
``(2) Judicial review.--
``(A) In general.--There shall be judicial review in the
Federal courts of appeal of the denial of an application for
adjustment of status under this section. Notwithstanding any
other provision of law, the standard for review of such a
denial shall be governed by subparagraph (B).
``(B) Standard for judicial review.--Judicial review of a
denial of an application under this section shall be based
solely upon the administrative record established at the time
of the review. The findings of fact and other determinations
contained in the 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.
``(C) Jurisdiction of courts.--
``(i) In general.--Notwithstanding any other provision of
law, the district courts of the United States shall have
jurisdiction over any cause or claim arising from a pattern
or practice of the Secretary of Homeland Security in the
operation or implementation of this section that is
arbitrary, capricious, or otherwise contrary to law, and may
order any appropriate relief.
``(ii) Remedies.--A district court may order any
appropriate relief under clause (i) if the court determines
that resolution of such cause or claim will serve judicial
and administrative efficiency or that a remedy would
otherwise not be reasonably available or practicable.
``(3) Stay of removal.--Aliens seeking administrative or
judicial review under this subsection shall not be removed
from the United States until a final decision is rendered
establishing ineligibility under this section.
``(l) Confidentiality of Information.--
``(1) In general.--Except as otherwise provided in this
subsection, no Federal agency or bureau, nor any officer,
employee, or agent of such agency or bureau, may--
``(A) use the information furnished by the applicant
pursuant to an application filed under this section for any
purpose other than to make a determination on the
application;
``(B) make any publication through which the information
furnished by any particular applicant can be identified; or
``(C) permit anyone other than the sworn officers and
employees of such agency or bureau to examine individual
applications.
``(2) Required disclosures.--The Secretary of Homeland
Security shall provide the information furnished pursuant to
an application filed under this section, and any other
information derived from such furnished information, to a
duly recognized law enforcement entity in connection with a
criminal investigation or prosecution or a national security
investigation or prosecution, in each instance about an
individual suspect or group of suspects, when such
information is requested in writing by such entity.
``(3) Criminal penalty.--Any person who knowingly uses,
publishes, or permits information to be examined in violation
of this subsection shall be fined not more than $10,000.
``(m) Penalties for False Statements in Applications.--
``(1) Criminal penalty.--
``(A) Violation.--It shall be unlawful for any person--
``(i) to file or assist in filing an application for
adjustment of status under this section and knowingly and
willfully falsify, misrepresent, conceal, or cover up a
material fact or make any false, fictitious, or fraudulent
statements or representations, or make or use any false
writing or document knowing the same to contain any false,
fictitious, or fraudulent statement or entry; or
``(ii) to create or supply a false writing or document for
use in making such an application.
``(B) Penalty.--Any person who violates subparagraph (A)
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).
``(3) Exception.--Notwithstanding paragraphs (1) and (2),
any alien or other entity (including an employer or union)
that submits an employment record that contains incorrect
data that the alien used in order to obtain such employment
before the date on which the Secure America and Orderly
Immigration Act is introduced, shall not, on that ground, be
determined to have violated this section.''.
(b) Clerical Amendment.--The table of contents for the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by inserting after the item relating to section 250
the following:

``Sec. 250A. H-5B nonimmigrants.''.

SEC. 1702. ADJUSTMENT OF STATUS FOR H-5B NONIMMIGRANTS.

(a) In General.--Chapter 5 of title II of the Immigration
and Nationality Act (8 U.S.C. 1255 et seq.) is amended by
inserting after section 245A the following:

``ADJUSTMENT OF STATUS OF FORMER H-5B NONIMMIGRANT TO THAT OF PERSON
ADMITTED FOR LAWFUL PERMANENT RESIDENCE

``Sec. 245B.  (a) Requirements.--The Secretary shall adjust
the status of an alien from nonimmigrant status under section
101(a)(15)(H)(v)(b) to that of an alien lawfully admitted for
permanent residence under this section if the alien satisfies
the following requirements:
``(1) Completion of employment or education requirement.--
The alien establishes that the alien has been employed in the
United States, either full time, part time, seasonally, or
self-employed, or has met the education requirements of
subsection (f) or (g) of section 250A during the period
required by section 250A(e).
``(2) Rulemaking.--The Secretary shall establish
regulations for the timely filing and processing of
applications for adjustment of status for nonimmigrants under
section 101(a)(15)(H)(v)(b).
``(3) Application and fee.--The alien who applies for
adjustment of status under this section shall pay the
following:
``(A) Application fee.--An alien who files an application
under section 245B of the Immigration and Nationality Act,
shall pay an application fee, set by the Secretary.
``(B) Additional fine.--Before the adjudication of an
application for adjustment of status filed under this
section, an alien who is at least 21 years of age shall pay a
fine of $1,000.
``(4) Admissible under immigration laws.--The alien
establishes that the alien is not inadmissible under section
212(a), except for any provision of that section that is not
applicable or waived under section 250A(d)(2).
``(5) Medical examination.--The alien shall undergo, at the
alien's expense, an appropriate medical examination
(including a determination of immunization status) that
conforms to generally accepted professional standards of
medical practice.
``(6) Payment of income taxes.--
``(A) In general.--Not later than the date on which status
is adjusted under this section, the alien shall establish the
payment of all Federal income taxes owed for employment
during the period of employment required by section 250A(e)
by establishing that--
``(i) no such tax liability exists;
``(ii) all outstanding liabilities have been met; or
``(iii) the alien has entered into an agreement for payment
of all outstanding liabilities with the Internal Revenue
Service.
``(B) IRS cooperation.--The Commissioner of Internal
Revenue shall provide documentation to an alien upon request
to establish the payment of all income taxes required by this
paragraph.
``(7) Basic citizenship skills.--
``(A) In general.--Except as provided in subparagraph (B),
the alien shall establish that the alien--
``(i) meets the requirements of section 312; or
``(ii) is satisfactorily pursuing a course of study to
achieve such an understanding of English and knowledge and
understanding of the history and government of the United
States.
``(B) Relation to naturalization examination.--An alien who
demonstrates that the alien meets the requirements of section
312 may be considered to have satisfied the requirements of
that section for purposes of becoming naturalized as a
citizen of the United States under title III.
``(8) Security and law enforcement background checks.--The
Secretary shall conduct a security and law enforcement
background check in accordance with procedures described in
section 250A(h).
``(9) Military selective service.--The alien shall
establish that if the alien is within the age period required
under the Military Selective Service Act (50 U.S.C. App. 451
et seq.), that such alien has registered under that Act.
``(b) Treatment of Spouses and Children.--
``(1) Adjustment of status.--Notwithstanding any other
provision of law, the Secretary of Homeland Security shall--
``(A) adjust the status to that of a lawful permanent
resident under this section, or provide an immigrant visa to
the spouse or child of an alien who adjusts status to that of
a permanent resident under this section; or
``(B) adjust the status to that of a lawful permanent
resident under this section for an alien who was the spouse
or child of an alien who adjusts status or is eligible to
adjust status to that of a permanent resident under section
245B in accordance with subsection (a), if--
``(i) the termination of the qualifying relationship was
connected to domestic violence; and
``(ii) the spouse or child has been battered or subjected
to extreme cruelty by the spouse or parent who adjusts status
to that of a permanent resident under this section.
``(2) Application of other law.--In acting on applications
filed under this subsection with respect to aliens who have
been battered or subjected to extreme cruelty, the Secretary
of Homeland Security shall apply the provisions of section
204(a)(1)(J) and the protections, prohibitions, and penalties
under section 384 of the Illegal Immigration

[[Page S1101]]

Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.
1367).
``(c) Judicial Review; Confidentiality; Penalties.--
Subsections (n), (o), and (p) of section 250A shall apply to
this section.''.
(b) Clerical Amendment.--The table of contents for the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by inserting after the item relating to section 245A
the following:

``Sec. 245B. Adjustment of status of former H-5B nonimmigrant to that
of person admitted for lawful permanent residence.''.

SEC. 1703. ALIENS NOT SUBJECT TO DIRECT NUMERICAL
LIMITATIONS.

Section 201(b)(1) of the Immigration and Nationality Act (8
U.S.C. 1151(b)(1)) is amended--
(1) in subparagraph (A), by striking ``subparagraph (A) or
(B) of''; and
(2) by adding at the end the following:
``(F) Aliens whose status is adjusted from the status
described in section 101(a)(15)(H)(v)(b).''.

SEC. 1704. EMPLOYER PROTECTIONS.

(a) Immigration Status of Alien.--Employers of aliens
applying for adjustment of status under section 245B or 250A
of the Immigration and Nationality Act, as added by this
title, shall not be subject to civil and criminal tax
liability relating directly to the employment of such alien
prior to such alien receiving employment authorization under
this title.
(b) Provision of Employment Records.--Employers that
provide unauthorized aliens with copies of employment records
or other evidence of employment pursuant to an application
for adjustment of status under section 245B or 250A of the
Immigration and Nationality Act or any other application or
petition pursuant to any other immigration law, shall not be
subject to civil and criminal liability under section 274A of
such Act for employing such unauthorized aliens.
(c) Applicability of Other Law.--Nothing in this section
may be used to shield an employer from liability under
section 274B of the Immigration and Nationality Act (8 U.S.C.
1324b) or any other labor or employment law.

SEC. 1705. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated to
the Secretary of Homeland Security such sums as may be
necessary to carry out this title and the amendments made by
this title.
(b) Availability of Funds.--Funds appropriated pursuant
subsection (a) shall remain available until expended.
(c) Sense of Congress.--It is the sense of Congress that
funds authorized to be appropriated under subsection (a)
should be directly appropriated so as to facilitate the
orderly and timely commencement of the processing of
applications filed under sections 245B and 250A of the
Immigration and Nationality Act, as added by this Act.

TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

SEC. 1801. RIGHT TO QUALIFIED REPRESENTATION.

Section 292 of the Immigration and Nationality Act (8
U.S.C. 1362) is amended to read as follows:

``RIGHT TO QUALIFIED REPRESENTATION IN IMMIGRATION MATTERS

``Sec. 292.  (a) Authorized Representatives in Immigration
Matters.--Only the following individuals are authorized to
represent an individual in an immigration matter before any
Federal agency or entity:
``(1) An attorney.
``(2) A law student who is enrolled in an accredited law
school, or a graduate of an accredited law school who is not
admitted to the bar, if--
``(A) the law student or graduate is appearing at the
request of the individual to be represented;
``(B) in the case of a law student, the law student has
filed a statement that the law student is participating,
under the direct supervision of a faculty member, attorney,
or accredited representative, in a legal aid program or
clinic conducted by a law school or nonprofit organization,
and that the law student is appearing without direct or
indirect remuneration from the individual the law student
represents;
``(C) in the case of a graduate, the graduate has filed a
statement that the graduate is appearing under the
supervision of an attorney or accredited representative and
that the graduate is appearing without direct or indirect
remuneration from the individual the graduate represents; and
``(D) the law student's or graduate's appearance is--
``(i) permitted by the official before whom the law student
or graduate wishes to appear; and
``(ii) accompanied by the supervising faculty member,
attorney, or accredited representative, to the extent
required by such official.
``(3) Any reputable individual, if--
``(A) the individual is appearing on an individual case
basis, at the request of the individual to be represented;
``(B) the individual is appearing without direct or
indirect remuneration and the individual files a written
declaration to that effect, except as described in
subparagraph (D);
``(C) the individual has a pre-existing relationship or
connection with the individual entitled to representation,
such as a relative, neighbor, clergyman, business associate,
or personal friend, except that this requirement may be
waived, as a matter of administrative discretion, in cases
where adequate representation would not otherwise be
available; and
``(D) if making a personal appearance on behalf of another
individual, the appearance is permitted by the official
before whom the individual wishes to appear, except that such
permission shall not be granted with respect to any
individual who regularly engages in immigration and
naturalization practice or preparation, or holds himself or
herself out to the public as qualified to do so.
``(4) An individual representing a recognized organization
(as described in subsection (f)) who has been approved to
serve as an accredited representative by the Board of
Immigration Appeals under subsection (f)(2).
``(5) An accredited official, in the United States, of the
government to which an alien owes allegiance, if the official
appears solely in his or her official capacity and with the
consent of the person to be represented.
``(6) An individual who is licensed to practice law and is
in good standing in a court of general jurisdiction of the
country in which the individual resides and who is engaged in
such practice, if the person represents persons only in
matters outside the United States and that the official
before whom such person wishes to appear allows such
representation, as a matter of discretion.
``(7) An attorney, or an organization represented by an
attorney, may appear, on a case-by-case basis, as amicus
curiae, if the Board of Immigration Appeals grants such
permission and the public interest will be served by such
appearance.
``(b) Former Employees.--No individual previously employed
by the Department of Justice, Department of State, Department
of Labor, or Department of Homeland Security may be permitted
to act as an authorized representative under this section, if
such authorization would violate any other applicable
provision of Federal law or regulation. In addition, any
application for such authorization must disclose any prior
employment by or contract with such agencies for services of
any nature.
``(c) Advertising.--Only an attorney or an individual
approved under subsection (f)(2) as an accredited
representative may advertise or otherwise hold themselves out
as being able to provide representation in an immigration
matter. This provision shall in no way be deemed to diminish
any Federal or State law to regulate, control, or enforce
laws regarding such advertisement, solicitation, or offer of
representation.
``(d) Removal Proceedings.--In any proceeding for the
removal of an individual from the United States and in any
appeal proceedings from such proceeding, the individual shall
have the privilege, as the individual shall choose, of being
represented (at no expense to the Government) by an
individual described in subsection (a). Representation by an
individual other than a person described in subsection (a)
may cause the representative to be subject to civil penalties
or such other penalties as may be applicable.
``(e) Benefits Filings.--In any filing or submission for an
immigration related benefit or a determination related to the
immigration status of an individual made to the Department of
Homeland Security, the Department of Labor, or the Department
of State, the individual shall have the privilege, as the
individual shall choose, of being represented (at no expense
to the Government) by an individual described in subsection
(a). Representation by an individual other than an individual
described in subsection (a) is cause for the representative
to be subject to civil or criminal penalties, as may be
applicable.
``(f) Recognized Organizations and Accredited
Representatives.--
``(1) Recognized organizations.--
``(A) In general.--The Board of Immigration Appeals may
determine that a person is a recognized organization if such
person--
``(i) is a nonprofit religious, charitable, social service,
or similar organization established in the United States
that--

``(I) is recognized by the Board of Immigration Appeals;
and
``(II) is authorized to designate a representative to
appear in an immigration matter before the Department of
Homeland Security or the Executive Office for Immigration
Review of the Department of Justice; and

``(ii) demonstrates to the Board that such person--

``(I) makes only nominal charges and assesses no excessive
membership dues for individuals given assistance; and
``(II) has at its disposal adequate knowledge, information,
and experience.

``(B) Bonding.--The Board, in its discretion, may impose a
bond requirement on new organizations seeking recognition.
``(C) Reporting obligations.--Recognized organizations
shall promptly notify the Board when the organization no
longer meets the requirements for recognition or when an
accredited representative employed by the recognized
organization ceases to be employed by the recognized
organization.
``(2) Accredited representatives.--The Board of Immigration
Appeals shall approve any qualified individual designated by
a recognized organization to serve as an accredited
representative. Such individual must be employed by the
recognized organization and must meet all requirements set
forth in this section and in the accompanying regulations to
be authorized to represent individuals in

[[Page S1102]]

an immigration matter. Accredited representatives, through
their recognized organizations, must certify their continuing
eligibility for accreditation every 3 years with the Board of
Immigration Appeals. Accredited representatives who fail to
comply with these requirements shall not have authority to
represent persons in an immigration matter for the recognized
organization.
``(g) Prohibited Acts.--An individual, other than an
individual authorized to represent an individual under this
section, may not--
``(1) directly or indirectly provide or offer
representation regarding an immigration matter for
compensation or contribution;
``(2) advertise or solicit representation in an immigration
matter;
``(3) retain any compensation provided for a prohibited act
described in paragraph (1) or (2), regardless of whether any
petition, application, or other document was filed with any
government agency or entity and regardless of whether a
petition, application, or other document was prepared or
represented to have been prepared by such individual;
``(4) represent directly or indirectly that the individual
is an attorney or supervised by or affiliated with an
attorney, when such representation is false; or
``(5) violate any applicable civil or criminal statute or
regulation of a State regarding the provision of
representation by providing or offering to provide
immigration or immigration-related assistance referenced in
this subsection.
``(h) Civil Enforcement.--
``(1) In general.--Any person, or any entity acting for the
interests of itself, its members, or the general public
(including a Federal law enforcement official or agency or
law enforcement official or agency of any State or political
subdivision of a State), that has reason to believe that any
person is being or has been injured by reason of a violation
of subsection (g) may commence a civil action in any court of
competent jurisdiction.
``(2) Remedies.--
``(A) Damages.--In any civil action brought under this
subsection, if the court finds that the defendant has
violated subsection (g), it shall award actual damages, plus
the greater of--
``(i) an amount treble the amount of actual damages; or
``(ii) $1,000 per violation.
``(B) Injunctive relief.--The court may award appropriate
injunctive relief, including temporary, preliminary, or
permanent injunctive relief, and restitution. Injunctive
relief may include, where appropriate, an order temporarily
or permanently enjoining the defendant from providing any
service to any person in any immigration matter. The court
may make such orders or judgments, including the appointment
of a receiver, as may be necessary to prevent the commission
of any act described in subsection (g).
``(C) Attorney's fees.--The court shall also grant a
prevailing plaintiff reasonable attorney's fees and costs,
including expert witness fees.
``(D) Civil penalties.--The court may also assess a civil
penalty not exceeding $50,000 for a first violation, and not
exceeding $100,000 for subsequent violations.
``(E) Cumulative remedies.--Unless otherwise expressly
provided, the remedies or penalties provided under this
paragraph are cumulative to each other and to the remedies or
penalties available under all other Federal laws or laws of
the jurisdiction where the violation occurred.
``(3) Nonpreemption.--Nothing in this subsection shall be
construed to preempt any other private right of action or any
right of action pursuant to the laws of any jurisdiction.
``(4) Discovery.--Information obtained through discovery in
a civil action under this subsection shall not be used in any
criminal action. Upon the request of any party to a civil
action under this subsection, any part of the court file that
makes reference to information discovered in a civil action
under this subsection may be sealed.
``(i) Nonpreemption of More Protective State and Local
Laws.--The provisions of this section supersede laws,
regulations, and municipal ordinances of any State only to
the extent such laws, regulations, and municipal ordinances
impede the application of any provision of this section. Any
State or political subdivision of a State may impose
requirements supplementing those imposed by this section.
``(j) Definitions.--As used in this section--
``(1) the term `attorney' means a person who--
``(A) is a member in good standing of the bar of the
highest court of a State; and
``(B) is not under any order of any court suspending,
enjoining, restraining, disbarring, or otherwise restricting
such person in the practice of law;
``(2) the term `compensation' means money, property, labor,
promise of payment, or any other consideration provided
directly or indirectly to an individual
``(3) the term `immigration matter' means any proceeding,
filing, or action affecting the immigration or citizenship
status of any person, which arises under any immigration or
nationality law, Executive order, Presidential proclamation,
or action of any Federal agency;
``(4) the term `representation', when used with respect to
the representation of a person, includes--
``(A) the appearance, either in person or through the
preparation or filing of any brief or other document, paper,
application, or petition on behalf of another person or
client, before any Federal agency or officer; and
``(B) the study of the facts of a case and the applicable
laws, coupled with the giving of advice and auxiliary
activities, including the incidental preparation of papers;
and
``(5) the term `State' includes a State or an outlying
possession of the United States.''.

SEC. 1802. PROTECTION OF WITNESS TESTIMONY.

(a) Definition.--Section 101(a)(15)(U)(i) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(i)) is
amended--
(1) by inserting in subclause (I) after the phrase ``clause
(iii)'' the following: ``or has suffered substantial
financial, physical, or mental harm as the result of a
prohibited act described in section 292;''
(2) by inserting in subclause (II) after the phrase
``clause (iii)'' the following: ``or section 292'';
(3) by inserting in subclause (III) after the phrase
``clause (iii)'' the following: ``or section 292''; and
(4) by inserting in subclause (IV) after the phrase
``clause (iii)'' the following: ``or section 292''.
(b) Admission of Nonimmigrants.--Section 214(p) of the
Immigration and Nationality Act of (8 U.S.C. 1184(p)) is
amended--
(1) in paragraph (1), by inserting ``or section 274E''
after ``section 101(a)(15)(U)(iii)'' each place it appears;
and
(2) in paragraph (2)(A), by striking ``10,000'' and
inserting ``15,000''.

TITLE IX--CIVICS INTEGRATION

SEC. 1901. FUNDING FOR THE OFFICE OF CITIZENSHIP.

(a) Authorization.--The Secretary of Homeland Security,
acting through the Director of the Bureau of Citizenship and
Immigration Services, is authorized to establish the United
States Citizenship Foundation (referred to in this section as
the ``Foundation''), an organization duly incorporated in the
District of Columbia, exclusively for charitable and
educational purposes to support the functions of the Office
of Citizenship (as described in section 451(f)(2) of the
Homeland Security Act of 2002 (6 U.S.C. 271(f)(2)).
(b) Gifts.--
(1) To foundation.--The Foundation may solicit, accept, and
make gifts of money and other property in accordance with
section 501(c)(3) of the Internal Revenue Code of 1986.
(2) From foundation.--The Office of Citizenship may accept
gifts from the Foundation to support the functions of the
Office.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the mission of the Office of Citizenship.

SEC. 1902. CIVICS INTEGRATION GRANT PROGRAM.

(a) In General.--The Secretary of Homeland Security shall
establish a competitive grant program to fund--
(1) efforts by entities certified by the Office of
Citizenship to provide civics and English as a second
language courses; or
(2) other activities approved by the Secretary to promote
civics and English as a second language.
(b) Acceptance of Gifts.--The Secretary may accept and use
gifts from the United States Citizenship Foundation for
grants under this section.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.

TITLE X--PROMOTING ACCESS TO HEALTH CARE

SEC. 2001. FEDERAL REIMBURSEMENT OF EMERGENCY HEALTH SERVICES
FURNISHED TO UNDOCUMENTED ALIENS.

Section 1011 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (42 U.S.C. 1395dd
note) is amended--
(1) by striking ``2008'' and inserting ``2011''; and
(2) in subsection (c)(5), by adding at the end the
following:
``(D) Nonimmigrants described in section 101(a)(15)(H)(v)
of the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(v)''.

SEC. 2002. PROHIBITION AGAINST OFFSET OF CERTAIN MEDICARE AND
MEDICAID PAYMENTS.

Payments made under section 1011 of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003
(42 U.S.C. 1395dd note)--
(1) shall not be considered ``third party coverage'' for
the purposes of section 1923 of the Social Security Act (42
U.S.C. 1396r-4); and
(2) shall not impact payments made under such section of
the Social Security Act.

SEC. 2003. PROHIBITION AGAINST DISCRIMINATION AGAINST ALIENS
ON THE BASIS OF EMPLOYMENT IN HOSPITAL-BASED
VERSUS NONHOSPITAL-BASED SITES.

Section 214(l)(1)(C) of the Immigrant and Nationality Act
(8 U.S.C. 1184(l)(1)(C) is amended--
(1) in clause (i), by striking ``and'' at the end; and
(2) by adding at the end the following:
``(iii) such interested Federal agency or interested State
agency, in determining which aliens will be eligible for such
waivers, does not utilize selection criteria, other than as
described in this subsection, that discriminate on the basis
of the alien's employment in a hospital-based versus
nonhospital-based facility or organization; and''.

[[Page S1103]]

SEC. 2004. BINATIONAL PUBLIC HEALTH INFRASTRUCTURE AND HEALTH
INSURANCE.

(a) Study.--
(1) In general.--The Secretary of Health and Human Services
shall contract with the Institute of Medicine of the National
Academies (referred to in this section as the ``Institute'')
to study binational public health infrastructure and health
insurance efforts.
(2) Input.--In conducting the study under paragraph (1),
the Institute shall solicit input from border health experts
and health insurance companies.
(b) Report.--
(1) In general.--Not later than 1 year after the date on
which the Secretary of Health and Human Services enters into
a contract under subsection (a), the Institute shall submit a
report concerning the study conducted under subsection (a) to
the Secretary of Health and Human Services and the
appropriate committees of Congress.
(2) Contents.--The report submitted under paragraph (1)
shall include the recommendations of the Institute on ways to
expand or improve binational public health infrastructure and
health insurance efforts.

TITLE XI--MISCELLANEOUS

SEC. 2101. SUBMISSION TO CONGRESS OF INFORMATION REGARDING H-
5A NONIMMIGRANTS.

(a) Ensuring Accurate Count.--The Secretary of State and
the Secretary of Homeland Security shall maintain an accurate
count of the number of aliens subject to the numerical
limitations under section 214(g)(1)(C) of the Immigration and
Nationality Act (8 U.S.C. 1184(g)(1)(C)) who are issued visas
or otherwise provided nonimmigrant status.
(b) Provision of Information.--
(1) Quarterly notification.--Beginning with the first
fiscal year after regulations are promulgated to implement
this Act, the Secretary of State and the Secretary of
Homeland Security shall submit quarterly reports to the
Committee on the Judiciary of the Senate and the Committee on
the Judiciary of the House of Representatives containing the
numbers of aliens who were issued visas or otherwise provided
nonimmigrant status under section 101(a)(15)(H)(v)(a) of the
Immigrant and Nationality Act (8 U.S.C. 1101(a)(15)(H)(v)(a))
during the preceding 3-month period.
(2) Annual submission.--Beginning with the first fiscal
year after regulations are promulgated to implement this Act,
the Secretary of Homeland Security shall submit annual
reports to the Committee on the Judiciary of the Senate and
the Committee on the Judiciary of the House of
Representatives, containing information on the countries of
origin and occupations of, geographic area of employment in
the United States, and compensation paid to, aliens who were
issued visas or otherwise provided nonimmigrant status under
such section 101(a)(15)(H)(v)(a). The Secretary shall compile
such reports based on the data reported by employers to the
Employment Eligibility Confirmation System established in
section 402.

SEC. 2102. H-5 NONIMMIGRANT PETITIONER ACCOUNT.

Section 286 of the Immigration and Nationality Act (8
U.S.C. 1356) is amended by adding at the end the following:
``(w)(1) There is established in the general fund of the
Treasury of the United States an account, which shall be
known as the `H-5 Nonimmigrant Petitioner Account'.
``(2) There shall be deposited as offsetting receipts into
the H-5 Nonimmigrant Petitioners Account--
``(A) all fees collected under section 218A; and
``(B) all fines collected under section 212(n)(2)(I).
``(3) Of the fees and fines deposited into the H-5
Nonimmigrant Petitioner Account--
``(A) 53 percent shall remain available to the Secretary of
Homeland Security for efforts related to the adjudication and
implementation of the H-5 visa programs described in sections
221(a) and 250A and any other efforts necessary to carry out
the provisions of the Secure America and Orderly Immigration
Act and the amendments made by such Act, of which the
Secretary shall allocate--
``(i) 10 percent shall remain available to the Secretary of
Homeland Security for the border security efforts described
in title I of the Secure America and Orderly Immigration Act.
``(ii) not more than 1 percent to promote public awareness
of the H-5 visa program, to protect migrants from fraud, and
to combat the unauthorized practice of law described in title
III of the Secure America and Orderly Immigration Act;
``(iii) not more than 1 percent to the Office of
Citizenship to promote civics integration activities
described in section 901 of the Secure America and Orderly
Immigration Act; and
``(iv) 2 percent for the Civics Integration Grant Program
under section 902 of the Secure America and Orderly
Immigration Act.
``(B) 15 percent shall remain available to the Secretary of
Labor for the enforcement of labor standards in those
geographic and occupational areas in which H-5A visa holders
are likely to be employed and for other enforcement efforts
under the Secure America and Orderly Immigration Act;
``(C) 15 percent shall remain available to the Commissioner
of Social Security for the creation and maintenance of the
Employment Eligibility Confirmation System described in
section 402 of the Secure America and Orderly Immigration
Act;
``(D) 15 percent shall remain available to the Secretary of
State to carry out any necessary provisions of the Secure
America and Orderly Immigration Act; and
``(E) 2 percent shall remain available to the Secretary of
Health and Human Services for the reimbursement of hospitals
serving individuals working under programs established in
this Act.''.

SEC. 2103. ANTI-DISCRIMINATION PROTECTIONS.

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; or
``(v) granted the status of nonimmigrant under section
101(a)(15)(H)(v).''.

SEC. 2104. WOMEN AND CHILDREN AT RISK OF HARM.

(a) Certain Children and Women at Risk of Harm.--Section
101(a)(27) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(27)) is amended--
(1) in subparagraph (L), by inserting a semicolon at the
end;
(2) in subparagraph (M), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(N) subject to subsection (j), an immigrant who is not
present in the United States--
``(i) who is--

``(I) referred to a consular, immigration, or other
designated official by a United States Government agency, an
international organization, or recognized nongovernmental
entity designated by the Secretary of State for purposes of
such referrals; and
``(II) determined by such official to be a minor under 18
years of age (as determined under subsection (j)(5))--

``(aa) for whom no parent or legal guardian is able to
provide adequate care;
``(bb) who faces a credible fear of harm related to his or
her age;
``(cc) who lacks adequate protection from such harm; and
``(dd) for whom it has been determined to be in his or her
best interests to be admitted to the United States; or
``(ii) who is--

``(I) referred to a consular or immigration official by a
United States Government agency, an international
organization or recognized nongovernmental entity designated
by the Secretary of State for purposes of such referrals; and
``(II) determined by such official to be a female who has--

``(aa) a credible fear of harm related to her sex; and
``(bb) a lack of adequate protection from such harm.''.
(b) Statutory Construction.--Section 101 of the Immigration
and Nationality Act (8 U.S.C. 1101) is amended by adding at
the end the following:
``(j)(1) No natural parent or prior adoptive parent of any
alien provided special immigrant status under subsection
(a)(27)(N)(i) shall thereafter, by virtue of such parentage,
be accorded any right, privilege, or status under this Act.
``(2)(A) No alien who qualifies for a special immigrant
visa under subsection (a)(27)(N)(ii) may apply for derivative
status or petition for any spouse who is represented by the
alien as missing, deceased, or the source of harm at the time
of the alien's application and admission. The Secretary of
Homeland Security may waive this requirement for an alien who
demonstrates that the alien's representations regarding the
spouse were bona fide.
``(B) An alien who qualifies for a special immigrant visa
under subsection (a)(27)(N) may apply for derivative status
or petition for any sibling under the age of 18 years or
children under the age of 18 years of any such alien, if
accompanying or following to join the alien. For purposes of
this subparagraph, a determination of age shall be made using
the age of the alien on the date the petition is filed with
the Department of Homeland Security.
``(3) An alien who qualifies for a special immigrant visa
under subsection (a)(27)(N) shall be treated in the same
manner as a refugee solely for purposes of section 412.
``(4) The provisions of paragraphs (4), (5), and (7)(A) of
section 212(a) shall not be applicable to any alien seeking
admission to the United States under subsection (a)(27)(N),
and the Secretary of Homeland Security may waive any other
provision of such section (other than paragraph (2)(C) or
subparagraph (A), (B), (C), or (E) of paragraph (3)) with
respect to such an alien for humanitarian purposes, to assure
family unity, or when it is otherwise in the public interest.
Any such waiver by the Secretary of Homeland Security shall
be in writing and shall be granted only on an individual
basis following an investigation. The Secretary of Homeland
Security shall provide for the annual reporting to Congress
of the number of waivers granted under this paragraph in the
previous fiscal year and a summary of the reasons for
granting such waivers.
``(5) For purposes of subsection (a)(27)(N)(i)(II), a
determination of age shall be made using the age of the alien
on the

[[Page S1104]]

date on which the alien was referred to the consular,
immigration, or other designated official.
``(6) The Secretary of Homeland Security shall waive any
application fee for a special immigrant visa for an alien
described in section 101(a)(27)(N).''.
(c) Allocation of Special Immigrant Visas.--Section
203(b)(4) of the Immigration Nationality Act (8 U.S.C.
1153(b)(4)) is amended by striking ``(A) or (B) thereof'' and
inserting ``(A), (B), or (N) of such section''.
(d) Expedited Process.--Not later than 45 days after the
date of referral to a consular, immigration, or other
designated official as described in section 101(a)(27)(N) of
the Immigration and Nationality Act, as added by subsection
(a), special immigrant status shall be adjudicated and, if
granted, the alien shall be--
(1) paroled to the United States pursuant to section
212(d)(5) of that Act (8 U.S.C. 1182(d)(5)); and
(2) allowed to apply for adjustment of status to permanent
residence under section 245 of that Act (8 U.S.C. 1255) not
later than 1 year after the alien's arrival in the United
States.
(e) Requirement Prior to Entry Into the Untied States.--
(1) Database search.--An alien may not be admitted to the
United States under this section or an amendment made by this
section until the Secretary of Homeland Security has ensured
that a search of each database maintained by an agency or
department of the United States has been conducted to
determine whether such alien is ineligible to be admitted to
the Untied States on criminal, security, or related grounds.
(2) Cooperation and schedule.--The Secretary of Homeland
Security and the head of each appropriate agency or
department of the United States shall work cooperatively to
ensure that each database search required by paragraph (1) is
completed not later than 45 days after the date on which an
alien files a petition seeking a special immigration visa
under section 101(a)(27)(N) of the Immigration and
Nationality Act, as added by subsection (a).
(f) Requirement After Entry Into the United States.--
(1) Requirement to submit fingerprints.--
(A) In general.--Not later than 30 days after the date that
an alien enters the United States under this section or an
amendment made by this section, the alien shall be
fingerprinted and submit to the Secretary of Homeland
Security such fingerprints and any other personal biometric
data required by the Secretary.
(B) Other requirements.--The Secretary of Homeland Security
may prescribe regulations that permit fingerprints submitted
by an alien under section 262 of the Immigration and
Nationality Act (8 U.S.C. 1302) or any other provision of law
to satisfy the requirement to submit fingerprints under
subparagraph (A).
(2) Database search.--The Secretary of Homeland Security
shall ensure that a search of each database that contains
fingerprints that is maintained by an agency or department of
the United States be conducted to determine whether such
alien is ineligible for an adjustment of status under any
provision of the Immigration and Nationality Act (8 U.S.C.
1101 et seq.) on criminal, security, or related grounds.
(3) Cooperation and schedule.--The Secretary of Homeland
Security and the head of each appropriate agency or
department of the United States shall work cooperatively to
ensure that each database search required under paragraph (2)
is completed not later than 180 days after the date on which
the alien enters the United States.
(4) Administrative and judicial review.--
(A) Administrative review.--An alien who is admitted to the
United States under this section or an amendment made by this
section who is determined to be ineligible for an adjustment
of status pursuant to section 212 of the Immigration and
Nationality Act (8 U.S.C. 1182) may appeal such a
determination through the Administrative Appeals Office of
the Bureau of Citizenship and Immigration Services of the
Department of Homeland Security. The Secretary of Homeland
Security shall ensure that a determination on such appeal is
made not later than 60 days after the date on which the
appeal is filed.
(B) Judicial review.--Nothing in this section, or in an
amendment made by this section, may preclude application of
section 242(a)(2)(B) of the Immigration and Nationality Act
(8 U.S.C. 1252(a)(2)(B)).
(g) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary of Homeland
Security shall report to the Committee on the Judiciary of
the Senate and the Committee on the Judiciary of the House of
Representatives on the progress of the implementation of this
section and the amendments made by this section, including--
(1) data related to the implementation of this section and
the amendments made by this section;
(2) data regarding the number of placements of females and
children who faces a credible fear of harm as referred to in
section 101(a)(27)(N) of the Immigration and Nationality Act,
as added by subsection (a); and
(3) any other information that the Secretary of Homeland
Security determines to be appropriate.
(h) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section and the amendments made by this section.

SEC. 2105. EXPANSION OF S VISA.

(a) Expansion of S Visa Classification.--Section
101(a)(15)(S) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(S)) is amended--
(1) in clause (i)--
(A) by striking ``Attorney General'' each place that term
appears and inserting ``Secretary of Homeland Security''; and
(B) by striking ``or'' at the end; and
(2) in clause (ii)--
(A) by striking ``Attorney General'' and inserting
``Secretary of Homeland Security''; and
(B) by striking ``1956,'' and all that follows through
``the alien;'' and inserting the following: ``1956; or
``(iii) who the Secretary of Homeland Security and the
Secretary of State, in consultation with the Director of
Central Intelligence, jointly determine--
``(I) is in possession of critical reliable information
concerning the activities of governments or organizations, or
their agents, representatives, or officials, with respect to
weapons of mass destruction and related delivery systems, if
such governments or organizations are at risk of developing,
selling, or transferring such weapons or related delivery
systems; and
``(II) is willing to supply or has supplied, fully and in
good faith, information described in subclause (I) to
appropriate persons within the United States Government;

and, if the Secretary of Homeland Security (or with respect
to clause (ii), the Secretary of State and the Secretary of
Homeland Security jointly) considers it to be appropriate,
the spouse, married and unmarried sons and daughters, and
parents of an alien described in clause (i), (ii), or (iii)
if accompanying, or following to join, the alien;''.
(b) Numerical Limitation.--Section 214(k)(1) of the
Immigration and Nationality Act (8 U.S.C. 1184(k)(1)) is
amended to read as follows:
``(1) The number of aliens who may be provided a visa as
nonimmigrants under section 101(a)(15)(S) in any fiscal year
may not exceed 3,500.''.

SEC. 2106. VOLUNTEERS.

It is not a violation of clauses (ii), (iii), or (iv) of
subparagraph (A) for a religious denomination described in
section 101(a)(27)(C)(i) or an affiliated religious
organization described in section 101(a)(27)(C)(ii)(III), or
their agents or officers, to encourage, invite, call, allow,
or enable an alien, who is already present in the United
States in violation of law to carry on the violation
described in section 101(a)(27)(C)(ii)(I), as a volunteer who
is not compensated as an employee, notwithstanding the
provision of room, board, travel, and other basic living
expenses.

______

SA 181. Mr. KENNEDY submitted an amendment intended to be proposed to
amendment SA 144 submitted by Mr. Sessions and intended to be proposed
to the 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:

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

DIVISION B--IMMIGRATION REFORM

SECTION 1001. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This division may be cited as the
``Secure America and Orderly Immigration Act''.
(b) Table of Contents.--The table of contents for this
division is as follows:

DIVISION B--IMMIGRATION REFORM

Sec. 1001. Short title; table of contents.
Sec. 1002. Findings.

TITLE I--BORDER SECURITY

Sec. 1101. Definitions.

Subtitle A--Border Security Strategic Planning

Sec. 1111. National Strategy for Border Security.
Sec. 1112. Reports to Congress.
Sec. 1113. Authorization of appropriations.

Subtitle B--Border Infrastructure, Technology Integration, and Security
Enhancement

Sec. 1121. Border security coordination plan.
Sec. 1122. Border security advisory committee.
Sec. 1123. Programs on the use of technologies for border security.
Sec. 1124. Combating human smuggling.
Sec. 1125. Savings clause.

Subtitle C--International Border Enforcement

Sec. 1131. North American Security Initiative.
Sec. 1132. Information sharing agreements.
Sec. 1133. Improving the security of Mexico's southern border.

TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

Sec. 1201. State criminal alien assistance program authorization of
appropriations.
Sec. 1202. Reimbursement of States for indirect costs relating to the
incarceration of illegal aliens.
Sec. 1203. Reimbursement of States for pre-conviction costs relating to
the incarceration of illegal aliens.

[[Page S1105]]

TITLE III--ESSENTIAL WORKER VISA PROGRAM

Sec. 1301. Essential workers.
Sec. 1302. Admission of essential workers.
Sec. 1303. Employer obligations.
Sec. 1304. Protection for workers.
Sec. 1305. Market-based numerical limitations.
Sec. 1306. Adjustment to lawful permanent resident status.
Sec. 1307. Essential Worker Visa Program Task Force.
Sec. 1308. Willing worker-willing employer electronic job registry.
Sec. 1309. Authorization of appropriations.

TITLE IV--ENFORCEMENT

Sec. 1401. Document and visa requirements.
Sec. 1402. Employment Eligibility Confirmation System.
Sec. 1403. Improved entry and exit data system.
Sec. 1404. Department of labor investigative authorities.
Sec. 1405. Protection of employment rights.
Sec. 1406. Increased fines for prohibited behavior.

TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

Sec. 1501. Labor migration facilitation programs.
Sec. 1502. Bilateral efforts with Mexico to reduce migration pressures
and costs.

TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

Sec. 1601. Elimination of existing backlogs.
Sec. 1602. Country limits.
Sec. 1603. Allocation of immigrant visas.
Sec. 1604. Relief for children and widows.
Sec. 1605. Amending the affidavit of support requirements.
Sec. 1606. Discretionary authority.
Sec. 1607. Family unity.

TITLE VII--H-5B NONIMMIGRANTS

Sec. 1701. H-5B nonimmigrants.
Sec. 1702. Adjustment of status for H-5B nonimmigrants.
Sec. 1703. Aliens not subject to direct numerical limitations.
Sec. 1704. Employer protections.
Sec. 1705. Authorization of appropriations.

TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

Sec. 1801. Right to qualified representation.
Sec. 1802. Protection of witness testimony.

TITLE IX--CIVICS INTEGRATION

Sec. 1901. Funding for the Office of Citizenship.
Sec. 1902. Civics integration grant program.

TITLE X--PROMOTING ACCESS TO HEALTH CARE

Sec. 2001. Federal reimbursement of emergency health services furnished
to undocumented aliens.
Sec. 2002. Prohibition against offset of certain medicare and medicaid
payments.
Sec. 2003. Prohibition against discrimination against aliens on the
basis of employment in hospital-based versus nonhospital-
based sites.
Sec. 2004. Binational public health infrastructure and health
insurance.

TITLE XI--MISCELLANEOUS

Sec. 2101. Submission to congress of information regarding H-5A
nonimmigrants.
Sec. 2102. H-5 nonimmigrant petitioner account.
Sec. 2103. Anti-discrimination protections.
Sec. 2104. Women and children at risk of harm.
Sec. 2105. Expansion of S visa.
Sec. 2106. Volunteers.

SEC. 1002. FINDINGS.

Congress makes the following findings:
(1) The Government of the United States has an obligation
to its citizens to secure its borders and ensure the rule of
law in its communities.
(2) The Government of the United States must strengthen
international border security efforts by dedicating adequate
and significant resources for technology, personnel, and
training for border region enforcement.
(3) Federal immigration policies must adhere to the United
States tradition as a nation of immigrants and reaffirm this
Nation's commitment to family unity, economic opportunity,
and humane treatment.
(4) Immigrants have contributed significantly to the
strength and economic prosperity of the United States and
action must be taken to ensure their fair treatment by
employers and protection against fraud and abuse.
(5) Current immigration laws and the enforcement of such
laws are ineffective and do not serve the people of the
United States, the national security interests of the United
States, or the economic prosperity of the United States.
(6) The United States cannot effectively carry out its
national security policies unless the United States
identifies undocumented immigrants and encourages them to
come forward and participate legally in the economy of the
United States.
(7) Illegal immigration fosters other illegal activity,
including human smuggling, trafficking, and document fraud,
all of which undermine the national security interests of the
United States.
(8) Illegal immigration burdens States and local
communities with hundreds of millions of dollars in
uncompensated expenses for law enforcement, health care, and
other essential services.
(9) Illegal immigration creates an underclass of workers
who are vulnerable to fraud and exploitation.
(10) Fixing the broken immigration system requires a
comprehensive approach that provides for adequate legal
channels for immigration and strong enforcement of
immigration laws which will serve the economic, social, and
security interests of the United States.
(11) Foreign governments, particularly those that share an
international border with the United States, must play a
critical role in securing international borders and deterring
illegal entry of foreign nationals into the United States.
(12) Federal immigration policy should foster economic
growth by allowing willing workers to be matched with willing
employers when no United States worker is available to take a
job.
(13) Immigration reform is a key component to achieving
effective enforcement and will allow for the best use of
security and enforcement resources to be focused on the
greatest risks.
(14) Comprehensive immigration reform and strong
enforcement of immigration laws will encourage legal
immigration, deter illegal immigration, and promote the
economic and national security interests of the United
States.

TITLE I--BORDER SECURITY

SEC. 1101. DEFINITIONS.

In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Homeland Security and Governmental
Affairs of the Senate;
(B) the Committee on the Judiciary of the Senate;
(C) the Committee on Homeland Security of the House of
Representatives; and
(D) the Committee on the Judiciary of the House of
Representatives.
(2) International border of the united states.--The term
``international border of the United States'' means the
international border between the United States and Canada and
the international border between the United States and
Mexico, including points of entry along such international
borders.
(3) Secretary.--Except as otherwise provided, the term
``Secretary'' means the Secretary of Homeland Security.
(4) Security plan.--The term ``security plan'' means a
security plan developed as part of the National Strategy for
Border Security set forth under section 111(a) for the Border
Patrol and the field offices of the Bureau of Customs and
Border Protection of the Department of Homeland Security that
has responsibility for the security of any portion of the
international border of the United States.

Subtitle A--Border Security Strategic Planning

SEC. 1111. NATIONAL STRATEGY FOR BORDER SECURITY.

(a) In General.--In conjunction with strategic homeland
security planning efforts, the Secretary shall develop,
implement, and update, as needed, a National Strategy for
Border Security that includes a security plan for the Border
Patrol and the field offices of the Bureau of Customs and
Border Protection of the Department of Homeland Security that
has responsibility for the security of any portion of the
international border of the United States.
(b) Contents.--The National Strategy for Border Security
shall include--
(1) the identification and evaluation of the points of
entry and all portions of the international border of the
United States that, in the interests of national security and
enforcement, must be protected from illegal transit;
(2) a description of the most appropriate, practical, and
cost-effective means of defending the international border of
the United States against threats to security and illegal
transit, including intelligence capacities, technology,
equipment, personnel, and training needed to address security
vulnerabilities within the United States for the Border
Patrol and the field offices of the Bureau of Customs and
Border Protection that have responsibility for any portion of
the international border of the United States;
(3) risk-based priorities for assuring border security and
realistic deadlines for addressing security and enforcement
needs identified in paragraphs (1) and (2);
(4) a strategic plan that sets out agreed upon roles and
missions of Federal, State, regional, local, and tribal
authorities, including appropriate coordination among such
authorities, to enable security enforcement and border lands
management to be carried out in an efficient and effective
manner;
(5) a prioritization of research and development objectives
to enhance the security of the international border of the
United States and enforcement needs to promote such security
consistent with the provisions of subtitle B;
(6) an update of the 2001 Port of Entry Infrastructure
Assessment Study conducted by the United States Customs
Service, in consultation with the General Services
Administration;
(7) strategic interior enforcement coordination plans with
personnel of Immigration and Customs Enforcement;

[[Page S1106]]

(8) strategic enforcement coordination plans with overseas
personnel of the Department of Homeland Security and the
Department of State to end human smuggling and trafficking
activities;
(9) any other infrastructure or security plan or report
that the Secretary determines appropriate for inclusion;
(10) the identification of low-risk travelers and how such
identification would facilitate cross-border travel; and
(11) ways to ensure that the trade and commerce of the
United States is not diminished by efforts, activities, and
programs aimed at securing the homeland.
(c) Priority of National Strategy.--The National Strategy
for Border Security shall be the governing document for
Federal security and enforcement efforts related to securing
the international border of the United States.

SEC. 1112. REPORTS TO CONGRESS.

(a) National Strategy.--
(1) Initial submission.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall submit the
National Strategy for Border Security, including each
security plan, to the appropriate congressional committees.
Such plans shall include estimated costs of implementation
and training from a fiscal and personnel perspective and a
cost-benefit analysis of any technological security
implementations.
(2) Subsequent submissions.--After the submission required
under paragraph (1), the Secretary shall submit to the
appropriate congressional committees any revisions to the
National Strategy for Border Security, including any
revisions to a security plan, not less frequently than April
1 of each odd-numbered year. The plan shall include estimated
costs for implementation and training and a cost-benefit
analysis of technological security implementations that take
place during the time frame under evaluation.
(b) Periodic Progress Reports.--
(1) Requirement for report.--Each year, in conjunction with
the submission of the budget to Congress under section
1105(a) of title 31, United States Code, the Secretary shall
submit to the appropriate congressional committees an
assessment of the progress made on implementing the National
Strategy for Border Security, including each security plan.
(2) Content.--Each progress report submitted under this
subsection shall include any recommendations for improving
and implementing the National Strategy for Border Security,
including any recommendations for improving and implementing
a security plan.
(c) Classified Material.--
(1) In general.--Any material included in the National
Strategy for Border Security, including each security plan,
that includes information that is properly classified under
criteria established by Executive order shall be submitted to
the appropriate congressional committees in a classified
form.
(2) Unclassified version.--As appropriate, an unclassified
version of the material described in paragraph (1) shall be
provided to the appropriate congressional committees.

SEC. 1113. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary
such sums as may be necessary to carry out this subtitle for
each of the 5 fiscal years beginning with the fiscal year
after the fiscal year in which this Act was enacted.

Subtitle B--Border Infrastructure, Technology Integration, and Security
Enhancement

SEC. 1121. BORDER SECURITY COORDINATION PLAN.

(a) In General.--The Secretary shall coordinate with
Federal, State, local, and tribal authorities on law
enforcement, emergency response, and security-related
responsibilities with regard to the international border of
the United States to develop and implement a plan to ensure
that the security of such international border is not
compromised--
(1) when the jurisdiction for providing such security
changes from one such authority to another such authority;
(2) in areas where such jurisdiction is shared by more than
one such authority; or
(3) by one such authority relinquishing such jurisdiction
to another such authority pursuant to a memorandum of
understanding.
(b) Elements of Plan.--In developing the plan, the
Secretary shall consider methods to--
(1) coordinate emergency responses;
(2) improve data-sharing, communications, and technology
among the appropriate agencies;
(3) promote research and development relating to the
activities described in paragraphs (1) and (2); and
(4) combine personnel and resource assets when practicable.
(c) Report.--Not later than 1 year after implementing the
plan developed under subsection (a), the Secretary shall
transmit a report to the appropriate congressional committees
on the development and implementation of such plan.

SEC. 1122. BORDER SECURITY ADVISORY COMMITTEE.

(a) Establishment.--The Secretary is authorized to
establish a Border Security Advisory Committee (referred to
in this section as the ``Advisory Committee'') to provide
advice and recommendations to the Secretary on border
security and enforcement issues.
(b) Composition.--
(1) In general.--The members of the Advisory Committee
shall be appointed by the Secretary and shall include
representatives of--
(A) States that are adjacent to the international border of
the United States;
(B) local law enforcement agencies; community officials,
and tribal authorities of such States; and
(C) other interested parties.
(2) Membership.--The Advisory Committee shall be comprised
of members who represent a broad cross section of
perspectives.

SEC. 1123. PROGRAMS ON THE USE OF TECHNOLOGIES FOR BORDER
SECURITY.

(a) Aerial Surveillance Technologies Program.--
(1) In general.--In conjunction with the border
surveillance plan developed under section 5201 of the
Intelligence Reform and Terrorism Prevention Act of 2004
(Public Law 108-458), the Secretary, not later than 60 days
after the date of enactment of this Act, shall develop and
implement a program to fully integrate aerial surveillance
technologies to enhance the border security of the United
States.
(2) Assessment and consultation requirements.--In
developing the program under this subsection, the Secretary
shall--
(A) consider current and proposed aerial surveillance
technologies;
(B) assess the feasibility and advisability of utilizing
such technologies to address border threats, including an
assessment of the technologies considered best suited to
address respective threats;
(C) consult with the Secretary of Defense regarding any
technologies or equipment, which the Secretary may deploy
along the international border of the United States; and
(D) consult with the Administrator of the Federal Aviation
Administration regarding safety, airspace coordination and
regulation, and any other issues necessary for implementation
of the program.
(3) Additional requirements.--
(A) In general.--The program developed under this
subsection shall include the utilization of a variety of
aerial surveillance technologies in a variety of topographies
and areas, including populated and unpopulated areas located
on or near the international border of the United States, in
order to evaluate, for a range of circumstances--
(i) the significance of previous experiences with such
technologies in border security or critical infrastructure
protection;
(ii) the cost and effectiveness of various technologies for
border security, including varying levels of technical
complexity; and
(iii) liability, safety, and privacy concerns relating to
the utilization of such technologies for border security.
(B) Use of unmanned aerial vehicles.--The aerial
surveillance technologies utilized in the program shall
include unmanned aerial vehicles.
(4) Continued use of aerial surveillance technologies.--The
Secretary may continue the operation of aerial surveillance
technologies while assessing the effectiveness of their
utilization and until such time the Secretary determines
appropriate.
(5) Report.--
(A) Requirement.--Not later than 1 year after implementing
the program under this subsection, the Secretary shall submit
a report on such program to the appropriate congressional
committees.
(B) Content.--The Secretary shall include in the report
required by subparagraph (A) a description of the program
together with such recommendations as the Secretary finds
appropriate for enhancing the program.
(b) Demonstration Programs.--The Secretary is authorized,
as part of the development and implementation of the National
Strategy for Border Security, to establish and carry out
demonstration programs to strengthen communication,
information sharing, technology, security, intelligence
benefits, and enforcement activities that will protect the
international border of the United States without diminishing
international trade and commerce.

SEC. 1124. COMBATING HUMAN SMUGGLING.

(a) Requirement for Plan.--The Secretary shall develop and
implement a plan to improve coordination between the Bureau
of Immigration and Customs Enforcement and the Bureau of
Customs and Border Protection of the Department of Homeland
Security and any other Federal, State, local, or tribal
authorities, as determined appropriate by the Secretary, to
improve coordination efforts to combat human smuggling.
(b) Content.--In developing the plan required by subsection
(a), the Secretary shall consider--
(1) the interoperability of databases utilized to prevent
human smuggling;
(2) adequate and effective personnel training;
(3) methods and programs to effectively target networks
that engage in such smuggling;
(4) effective utilization of--
(A) visas for victims of trafficking and other crimes; and
(B) investigatory techniques, equipment, and procedures
that prevent, detect, and prosecute international money
laundering and other operations that are utilized in
smuggling;
(5) joint measures, with the Secretary of State, to enhance
intelligence sharing and cooperation with foreign governments
whose citizens are preyed on by human smugglers; and

[[Page S1107]]

(6) other measures that the Secretary considers appropriate
to combating human smuggling.
(c) Report.--Not later than 1 year after implementing the
plan described in subsection (a), the Secretary shall submit
to Congress a report on such plan, including any
recommendations for legislative action to improve efforts to
combating human smuggling.

SEC. 1125. SAVINGS CLAUSE.

Nothing in this subtitle or subtitle A may be construed to
provide to any State or local entity any additional authority
to enforce Federal immigration laws.

Subtitle C--International Border Enforcement

SEC. 1131. NORTH AMERICAN SECURITY INITIATIVE.

(a) In General.--The Secretary of State shall enhance the
mutual security and safety of the United States, Canada, and
Mexico by providing a framework for better management,
communication, and coordination between the Governments of
North America.
(b) Responsibilities.--In implementing the provisions of
this subtitle, the Secretary of State shall carry out all of
the activities described in this subtitle.

SEC. 1132. INFORMATION SHARING AGREEMENTS.

The Secretary of State, in coordination with the Secretary
of Homeland Security and the Government of Mexico, is
authorized to negotiate an agreement with Mexico to--
(1) cooperate in the screening of third-country nationals
using Mexico as a transit corridor for entry into the United
States; and
(2) provide technical assistance to support stronger
immigration control at the border with Mexico.

SEC. 1133. IMPROVING THE SECURITY OF MEXICO'S SOUTHERN
BORDER.

(a) Technical Assistance.--The Secretary of State, in
coordination with the Secretary of Homeland Security, the
Canadian Department of Foreign Affairs, and the Government of
Mexico, shall establish a program to--
(1) assess the specific needs of the governments of Central
American countries in maintaining the security of the borders
of such countries;
(2) use the assessment made under paragraph (1) to
determine the financial and technical support needed by the
governments of Central American countries from Canada,
Mexico, and the United States to meet such needs;
(3) provide technical assistance to the governments of
Central American countries to secure issuance of passports
and travel documents by such countries; and
(4) encourage the governments of Central American countries
to--
(A) control alien smuggling and trafficking;
(B) prevent the use and manufacture of fraudulent travel
documents; and
(C) share relevant information with Mexico, Canada, and the
United States.
(b) Immigration.--The Secretary of Homeland Security, in
consultation with the Secretary of State and appropriate
officials of the governments of Central American countries
shall provide robust law enforcement assistance to such
governments that specifically addresses migratory issues to
increase the ability of such governments to dismantle human
smuggling organizations and gain tighter control over the
border.
(c) Border Security Between Mexico and Guatemala or
Belize.--The Secretary of State, in consultation with the
Secretary of Homeland Security, the Government of Mexico, and
appropriate officials of the Governments of Guatemala,
Belize, and neighboring contiguous countries, shall establish
a program to provide needed equipment, technical assistance,
and vehicles to manage, regulate, and patrol the
international border between Mexico and Guatemala and between
Mexico and Belize.
(d) Tracking Central American Gangs.--The Secretary of
State, in coordination with the Secretary of Homeland
Security, the Director of the Federal Bureau of
Investigation, the Government of Mexico, and appropriate
officials of the governments of Central American countries,
shall--
(1) assess the direct and indirect impact on the United
States and Central America on deporting violent criminal
aliens;
(2) establish a program and database to track Central
American gang activities, focusing on the identification of
returning criminal deportees;
(3) devise an agreed-upon mechanism for notification
applied prior to deportation and for support for
reintegration of these deportees; and
(4) devise an agreement to share all relevant information
with the appropriate agencies of Mexico and other Central
American countries.

TITLE II--STATE CRIMINAL ALIEN ASSISTANCE

SEC. 1201. STATE CRIMINAL ALIEN ASSISTANCE PROGRAM
AUTHORIZATION OF APPROPRIATIONS.

Section 241(i) of the Immigration and Nationality Act (8
U.S.C. 1231(i)) is amended by striking paragraphs (5) and (6)
and inserting the following:
``(5) Authorization of appropriations.--
``(A) In general.--There are authorized to be appropriated
to carry out this subsection--
``(i) such sums as may be necessary for fiscal year 2005;
``(ii) $750,000,000 for fiscal year 2006;
``(iii) $850,000,000 for fiscal year 2007; and
``(iv) $950,000,000 for each of the fiscal years 2008
through 2011.
``(B) Limitation on use of funds.--Amounts appropriated
pursuant to subparagraph (A) that are distributed to a State
or political subdivision of a State, including a
municipality, may be used only for correctional purposes.''.

SEC. 1202. REIMBURSEMENT OF STATES FOR INDIRECT COSTS
RELATING TO THE INCARCERATION OF ILLEGAL
ALIENS.

Section 501 of the Immigration Reform and Control Act of
1986 (8 U.S.C. 1365) is amended--
(1) in subsection (a)--
(A) by striking ``for the costs'' and inserting the
following: ``for--
``(1) the costs''; and
(B) by striking ``such State.'' and inserting the
following: ``such State; and
``(2) the indirect costs related to the imprisonment
described in paragraph (1).''; and
(2) by striking subsections (c) through (e) and inserting
the following:
``(c) Manner of Allotment of Reimbursements.--
Reimbursements under this section shall be allotted in a
manner that gives special consideration for any State that--
``(1) shares a border with Mexico or Canada; or
``(2) includes within the State an area in which a large
number of undocumented aliens reside relative to the general
population of that area.
``(d) Definitions.--As used in this section:
``(1) Indirect costs.--The term `indirect costs' includes--
``(A) court costs, county attorney costs, detention costs,
and criminal proceedings expenditures that do not involve
going to trial;
``(B) indigent defense costs; and
``(C) unsupervised probation costs.
``(2) State.--The term `State' has the meaning given such
term in section 101(a)(36) of the Immigration and Nationality
Act.
``(e) Authorization of Appropriations.--There are
authorized to be appropriated $200,000,000 for each of the
fiscal years 2005 through 2011 to carry out subsection
(a)(2).''.

SEC. 1203. REIMBURSEMENT OF STATES FOR PRE-CONVICTION COSTS
RELATING TO THE INCARCERATION OF ILLEGAL
ALIENS.

Section 241(i)(3)(A) of the Immigration and Nationality Act
(8 U.S.C. 1231(i)(3)(a) is amended by inserting ``charged
with or'' before ``convicted.''

TITLE III--ESSENTIAL WORKER VISA PROGRAM

SEC. 1301. ESSENTIAL WORKERS.

Section 101(a)(15)(H) of the Immigration and Nationality
Act (8 U.S.C. 1101(a)(15)(H)) is amended--
(1) by striking ``(H) an alien (i)(b)'' and inserting the
following:
``(H) an alien--
``(i)(b)'';
(2) by striking ``or (ii)(a)'' and inserting the following:
``(ii)(a)'';
(3) by striking ``or (iii)'' and inserting the following:
``(iii)''; and
(4) by adding at the end the following:
``(v)(a) subject to section 218A, having residence in a
foreign country, which the alien has no intention of
abandoning, who is coming temporarily to the United States to
initially perform labor or services (other than those
occupation classifications covered under the provisions of
clause (i)(b) or (ii)(a) or subparagraph (L), (O), (P), or
(R)); or.''.

SEC. 1302. ADMISSION OF ESSENTIAL WORKERS.

(a) In General.--Chapter 2 of title II of the Immigration
and Nationality Act (8 U.S.C. 1181 et seq.) is amended by
inserting after section 218 the following:

``ADMISSION OF TEMPORARY H-5A WORKERS

``Sec. 218A.  (a) The Secretary of State may grant a
temporary visa to a nonimmigrant described in section
101(a)(15)(H)(v)(a) who demonstrates an intent to perform
labor or services in the United States (other than those
occupational classifications covered under the provisions of
clause (i)(b) or (ii)(a) of section 101(a)(15)(H) or
subparagraph (L), (O), (P), or (R)) of section 101(a)(15).
``(b) Requirements for Admission.--In order to be eligible
for nonimmigrant status under section 101(a)(15)(H)(v)(a), an
alien shall meet the following requirements:
``(1) Eligibility to work.--The alien shall establish that
the alien is capable of performing the labor or services
required for an occupation under section 101(a)(15)(H)(v).
``(2) Evidence of employment.--The alien's evidence of
employment shall be provided through the Employment
Eligibility Confirmation System established under section
274E or in accordance with requirements issued by the
Secretary of State, in consultation with the Secretary of
Homeland Security. In carrying out this paragraph, the
Secretary may consider evidence from employers, employer
associations, and labor representatives.
``(3) Fee.--The alien shall pay a $500 application fee to
apply for the visa in addition to the cost of processing and
adjudicating such application. Nothing in this paragraph
shall be construed to affect consular procedures for charging
reciprocal fees.
``(4) Medical examination.--The alien shall undergo a
medical examination (including a determination of
immunization status) at the alien's expense, that conforms to
generally accepted standards of medical practice.

[[Page S1108]]

``(c) Grounds of Inadmissibility.--
``(1) In general.--In determining an alien's admissibility
as a nonimmigrant under section 101(a)(15)(H)(v)(a)--
``(A) paragraphs (5), (6) (except for subparagraph (E)),
(7), (9), and (10)(B) of section 212(a) may be waived for
conduct that occurred before the date on which the Secure
America and Orderly Immigration Act was introduced;
``(B) the Secretary of Homeland Security may not waive--
``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of
section 212(a)(2) (relating to criminals);
``(ii) section 212(a)(3) (relating to security and related
grounds); or
``(iii) subparagraph (A) or (C) of section 212(a)(10)
(relating to polygamists and child abductors);
``(C) for conduct that occurred before the date on which
the Secure America and Orderly Immigration Act was
introduced, the Secretary of Homeland Security may waive the
application of any provision of section 212(a) not listed in
subparagraph (B) on behalf of an individual alien for
humanitarian purposes, to ensure family unity, or when such
waiver is otherwise in the public interest; and
``(D) nothing in this paragraph shall be construed as
affecting the authority of the Secretary of Homeland Security
to waive the provisions of section 212(a).
``(2) Waiver fine.--An alien who is granted a waiver under
subparagraph (1) shall pay a $1,500 fine upon approval of the
alien's visa application.
``(3) Applicability of other provisions.--Sections 240B(d)
and 241(a)(5) shall not apply to an alien who initially seeks
admission as a nonimmigrant under section
101(a)(15)(H)(v)(a).
``(4) Renewal of authorized admission and subsequent
admissions.--An alien seeking renewal of authorized admission
or subsequent admission as a nonimmigrant under section
101(a)(15)(H)(v)(a) shall establish that the alien is not
inadmissible under section 212(a).
``(d) Period of Authorized Admission.--
``(1) Initial period.--The initial period of authorized
admission as a nonimmigrant described in section
101(a)(15)(H)(v)(a) shall be 3 years.
``(2) Renewals.--The alien may seek an extension of the
period described in paragraph (1) for 1 additional 3-year
period.
``(3) Loss of employment.--
``(A) In general.--Subject to subsection (c), the period of
authorized admission of a nonimmigrant alien under section
101(a)(15)(H)(v)(a) shall terminate if the nonimmigrant is
unemployed for 45 or more consecutive days.
``(B) Return to foreign residence.--Any alien whose period
of authorized admission terminates under subparagraph (A)
shall be required to return to the country of the alien's
nationality or last residence.
``(C) Period of visa validity.--Any alien, whose period of
authorized admission terminates under subparagraph (A), who
returns to the country of the alien's nationality or last
residence under subparagraph (B), may reenter the United
States on the basis of the same visa to work for an employer,
if the alien has complied with the requirements of subsection
(b)(1).
``(4) Visits outside united states.--
``(A) In general.--Under regulations established by the
Secretary of Homeland Security, a nonimmigrant alien under
section 101(a)(15)(H)(v)(a)--
``(i) may travel outside of the United States; and
``(ii) may be readmitted without having to obtain a new
visa if the period of authorized admission has not expired.
``(B) Effect on period of authorized admission.--Time spent
outside the United States under subparagraph (A) shall not
extend the period of authorized admission in the United
States.
``(e) Portability.--A nonimmigrant alien described in this
section, who was previously issued a visa or otherwise
provided nonimmigrant status under section
101(a)(15)(H)(v)(a), may accept new employment with a
subsequent employer.
``(f) Waiver of Rights Prohibited.--A nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) may not be required
to waive any rights or protections under the Secure America
and Orderly Immigration Act.
``(g) Change of Address.--An alien having nonimmigrant
status described in section 101(a)(15)(H)(v)(a) shall comply
by either electronic or paper notification with the change of
address reporting requirements under section 265.
``(h) Bar to Future Visas for Violations.--
``(1) In general.--Any alien having the nonimmigrant status
described in section 101(a)(15)(H)(v)(a) shall not be
eligible to renew such nonimmigrant status if the alien
willfully violates any material term or condition of such
status.
``(2) Waiver.--The alien may apply for a waiver of the
application of subparagraph (A) for technical violations,
inadvertent errors, or violations for which the alien was not
at fault.
``(i) Collection of Fees.--All fees collected under this
section shall be deposited in the Treasury in accordance with
section 286(w).''.
(b) Conforming Amendment Regarding Presumption of
Nonimmigrant Status.--Section 214(b) of the Immigration and
Nationality Act (8 U.S.C. 1184(b)) is amended by inserting
``(H)(v)(a),'' after ``(H)(i),''.
(c) Clerical Amendment.--The table of contents for the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by inserting after the item relating to section 218
the following:

``Sec. 218A. Admission of temporary H-5A workers.''.

SEC. 1303. EMPLOYER OBLIGATIONS.

Employers employing a nonimmigrant described in section
101(a)(15)(H)(v)(a) of the Immigration and Nationality Act,
as added by section 1301, shall comply with all applicable
Federal, State, and local laws, including--
(1) laws affecting migrant and seasonal agricultural
workers; and
(2) the requirements under section 274E of such Act, as
added by section 1402.

SEC. 1304. PROTECTION FOR WORKERS.

Section 218A of the Immigration and Nationality Act, as
added by section 1302, is amended by adding at the end the
following:
``(h) Application of Labor and Other Laws.--
``(1) Definitions.--As used in this subsection and in
subsections (i) through (k):
``(A) Employ; employee; employer.--The terms `employ',
`employee', and `employer' have the meanings given such terms
in section 3 of the Fair Labor Standards Act of 1938 (29
U.S.C. 203).
``(B) Foreign labor contractor.--The term `foreign labor
contractor' means any person who for any compensation or
other valuable consideration paid or promised to be paid,
performs any foreign labor contracting activity.
``(C) Foreign labor contracting activity.--The term
`foreign labor contracting activity' means recruiting,
soliciting, hiring, employing, or furnishing, an individual
who resides outside of the United States for employment in
the United States as a nonimmigrant alien described in
section 101(a)(15)(H)(v)(a).
``(2) Coverage.--Notwithstanding any other provision of
law--
``(A) a nonimmigrant alien described in section
101(a)(15)(H)(v)(a) is prohibited from being treated as an
independent contractor; and
``(B) no person may treat a nonimmigrant alien described in
section 101(a)(15)(H)(v)(a) as an independent contractor.
``(3) Applicability of laws.--A nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) shall not be denied
any right or any remedy under Federal, State, or local labor
or employment law that would be applicable to a United States
worker employed in a similar position with the employer
because of the alien's status as a nonimmigrant worker.
``(4) Tax responsibilities.--With respect to each employed
nonimmigrant alien described in section 101(a)(15)(H)(v)(a),
an employer shall comply with all applicable Federal, State,
and local tax and revenue laws.
``(5) Nondiscrimination in employment.--An employer shall
provide nonimmigrants issued a visa under this section with
the same wages, benefits, and working conditions that are
provided by the employer to United States workers similarly
employed in the same occupation and the same place of
employment.
``(6) No replacement of striking employees.--An employer
may not hire a nonimmigrant alien described in section
101(a)(15)(H)(v)(a) as a replacement worker if there is a
strike or lockout in the course of a labor dispute in the
occupational classification at the place of employment.
``(7) Waiver of rights prohibited.--A nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) may not be required
to waive any rights or protections under the Secure America
and Orderly Immigration Act. Nothing under this provision
shall be construed to affect the interpretation of other
laws.
``(8) No threatening of employees.--It shall be a violation
of this section for an employer who has filed a petition
under section 203(b) to threaten the alien beneficiary of
such a petition with withdrawal of the application, or to
withdraw such a petition in retaliation for the beneficiary's
exercise of a right protected by the Secure America and
Orderly Immigration Act.
``(9) Whistleblower protection.--It shall be unlawful for
an employer or a labor contractor of a nonimmigrant alien
described in section 101(a)(15)(H)(v)(a) to intimidate,
threaten, restrain, coerce, retaliate, discharge, or in any
other manner, discriminate against an employee or former
employee because the employee or former employee--
``(A) discloses information to the employer or any other
person that the employee or former employee reasonably
believes demonstrates a violation of Secure America and
Orderly Immigration Act.
``(B) cooperates or seeks to cooperate in an investigation
or other proceeding concerning compliance with the
requirements of the Secure America and Orderly Immigration
Act.
``(i) Labor Recruiters.--
``(1) In general.--Each employer that engages in foreign
labor contracting activity and each foreign labor contractor
shall ascertain and disclose to each such worker who is
recruited for employment the following information at the
time of the worker's recruitment:
``(A) The place of employment.

[[Page S1109]]

``(B) The compensation for the employment.
``(C) A description of employment activities.
``(D) The period of employment.
``(E) Any other employee benefit to be provided and any
costs to be charged for each benefit.
``(F) Any travel or transportation expenses to be assessed.
``(G) The existence of any labor organizing effort, strike,
lockout, or other labor dispute at the place of employment.
``(H) The existence of any arrangement with any owner,
employer, foreign contractor, or its agent where such person
receives a commission from the provision of items or services
to workers.
``(I) The extent to which workers will be compensated
through workers' compensation, private insurance, or
otherwise for injuries or death, including work related
injuries and death, during the period of employment and, if
so, the name of the State workers' compensation insurance
carrier or the name of the policyholder of the private
insurance, the name and the telephone number of each person
who must be notified of an injury or death, and the time
period within which such notice must be given.
``(J) Any education or training to be provided or required,
including the nature and cost of such training, who will pay
such costs, and whether the training is a condition of
employment, continued employment, or future employment.
``(K) A statement, in a form specified by the Secretary of
Labor, describing the protections of this Act for workers
recruited abroad.
``(2) False or misleading information.--No foreign labor
contractor or employer who engages in foreign labor
contracting activity shall knowingly provide material false
or misleading information to any worker concerning any matter
required to be disclosed in paragraph (1).
``(3) Languages.--The information required to be disclosed
under paragraph (1) shall be provided in writing in English
or, as necessary and reasonable, in the language of the
worker being recruited. The Department of Labor shall make
forms available in English, Spanish, and other languages, as
necessary, which may be used in providing workers with
information required under this section.
``(4) Fees.--A person conducting a foreign labor
contracting activity shall not assess any fee to a worker for
such foreign labor contracting activity.
``(5) Terms.--No employer or foreign labor contractor
shall, without justification, violate the terms of any
agreement made by that contractor or employer regarding
employment under this program.
``(6) Travel costs.--If the foreign labor contractor or
employer charges the employee for transportation such
transportation costs shall be reasonable.
``(7) Other worker protections.--
``(A) Notification.--Every 2 years, each employer shall
notify the Secretary of Labor of the identity of any foreign
labor contractor engaged by the employer in any foreign labor
contractor activity for or on behalf of the employer.
``(B) Registration of foreign labor contractors.--
``(i) In general.--No person shall engage in foreign labor
recruiting activity unless such person has a certificate of
registration from the Secretary of Labor specifying the
activities that such person is authorized to perform. An
employer who retains the services of a foreign labor
contractor shall only use those foreign labor contractors who
are registered under this subparagraph.
``(ii) Issuance.--The Secretary shall promulgate
regulations to establish an efficient electronic process for
the investigation and approval of an application for a
certificate of registration of foreign labor contractors not
later than 14 days after such application is filed. Such
process shall include requirements under paragraphs (1), (4),
and (5) of section 1812 of title 29, United States Code, an
expeditious means to update registrations and renew
certificates and any other requirements the Secretary may
prescribe.
``(iii) Term.--Unless suspended or revoked, a certificate
under this subparagraph shall be valid for 2 years.
``(iv) Refusal to issue; revocation; suspension.--In
accordance with regulations promulgated by the Secretary of
Labor, the Secretary may refuse to issue or renew, or may
suspend or revoke, a certificate of registration under this
subparagraph. The justification for such refusal, suspension,
or revocation may include the following:

``(I) The application or holder of the certification has
knowingly made a material misrepresentation in the
application for such certificate.
``(II) The applicant for or holder of the certification is
not the real party in interest in the application or
certificate of registration and the real party in interest is
a person who has been refused issuance or renewal of a
certificate, has had a certificate suspended or revoked, or
does not qualify for a certificate under this paragraph.
``(III) The applicant for or holder of the certification
has failed to comply with the Secure America and Orderly
Immigration Act.

``(C) Remedy for violations.--An employer engaging in
foreign labor contracting activity and a foreign labor
contractor that violates the provisions of this subsection
shall be subject to remedies for foreign labor contractor
violations under subsections (j) and (k). If a foreign labor
contractor acting as an agent of an employer violates any
provision of this subsection, the employer shall also be
subject to remedies under subsections (j) and (k). An
employer that violates a provision of this subsection
relating to employer obligations shall be subject to remedies
under this subsections (j) and (k).
``(D) Employer notification.--An employer shall notify the
Secretary of Labor any time the employer becomes aware of a
violation of this subsection by a foreign labor recruiter.
``(E) Written agreements.--No foreign labor contractor
shall violate the terms of any written agreements made with
an employer relating to any contracting activity or worker
protection under this subsection.
``(F) Bonding requirement.--The Secretary of Labor may
require a foreign labor contractor under this subsection to
post a bond in an amount sufficient to ensure the protection
of individuals recruited by the foreign labor contractor. The
Secretary may consider the extent to which the foreign labor
contractor has sufficient ties to the United States to
adequately enforce this subsection.
``(j) Enforcement.--
``(1) In general.--The Secretary of Labor shall prescribe
regulations for the receipt, investigation, and disposition
of complaints by an aggrieved person respecting a violation
of this section.
``(2) Definition.--As used in this subsection, an
`aggrieved person' is a person adversely affected by the
alleged violation, including--
``(A) a worker whose job, wages, or working conditions are
adversely affected by the violation; and
``(B) a representative for workers whose jobs, wages, or
working conditions are adversely affected by the violation
who brings a complaint on behalf of such worker.
``(3) Filing deadline.--No investigation or hearing shall
be conducted on a complaint concerning a violation under this
section unless the complaint was filed not later than 12
months after the date of such violation.
``(4) Reasonable cause.--The Secretary of Labor shall
conduct an investigation under this subsection if there is
reasonable cause to believe that a violation of this section
has occurred. The process established under this subsection
shall provide that, not later than 30 days after a complaint
is filed, the Secretary shall determine if there is
reasonable cause to find such a violation.
``(5) Notice and hearing.--
``(A) In general.--Not later than 60 days after the
Secretary of Labor makes a determination of reasonable cause
under paragraph (4), the Secretary shall issue a notice to
the interested parties and offer an opportunity for a hearing
on the complaint, in accordance with section 556 of title 5,
United States Code.
``(B) Complaint.--If the Secretary of Labor, after
receiving a complaint under this subsection, does not offer
the aggrieved party or organization an opportunity for a
hearing under subparagraph (A), the Secretary shall notify
the aggrieved party or organization of such determination and
the aggrieved party or organization may seek a hearing on the
complaint in accordance with such section 556.
``(C) Hearing deadline.--Not later than 60 days after the
date of a hearing under this paragraph, the Secretary of
Labor shall make a finding on the matter in accordance with
paragraph (6).
``(6) Attorneys' fees.--A complainant who prevails with
respect to a claim under this subsection shall be entitled to
an award of reasonable attorneys' fees and costs.
``(7) Power of the secretary.--The Secretary may bring an
action in any court of competent jurisdiction--
``(A) to seek remedial action, including injunctive relief;
``(B) to recover the damages described in subsection (k);
or
``(C) to ensure compliance with terms and conditions
described in subsection (i).
``(8) Solicitor of labor.--Except as provided in section
518(a) of title 28, United States Code, the Solicitor of
Labor may appear for and represent the Secretary of Labor in
any civil litigation brought under this subsection. All such
litigation shall be subject to the direction and control of
the Attorney General.
``(9) Procedures in addition to other rights of
employees.--The rights and remedies provided to workers under
this section are in addition to, and not in lieu of, any
other contractual or statutory rights and remedies of the
workers, and are not intended to alter or affect such rights
and remedies.
``(k) Penalties.--
``(1) In general.--If, after notice and an opportunity for
a hearing, the Secretary of Labor finds a violation of
subsection (h) or (i), the Secretary may impose
administrative remedies and penalties, including--
``(A) back wages;
``(B) fringe benefits; and
``(C) civil monetary penalties.
``(2) Civil penalties.--The Secretary of Labor may impose,
as a civil penalty--
``(A) for a violation of subsection (h)--
``(i) a fine in an amount not to exceed $2,000 per
violation per affected worker;
``(ii) if the violation was willful violation, a fine in an
amount not to exceed $5,000 per violation per affected
worker;
``(iii) if the violation was willful and if in the course
of such violation a United States

[[Page S1110]]

worker was harmed, a fine in an amount not to exceed $25,000
per violation per affected worker; and
``(B) for a violation of subsection (i)--
``(i) a fine in an amount not less than $500 and not more
than $4,000 per violation per affected worker;
``(ii) if the violation was willful, a fine in an amount
not less than $2,000 and not more than $5,000 per violation
per affected worker; and
``(iii) if the violation was willful and if in the course
of such violation a United States worker was harmed, a fine
in an amount not less than $6,000 and not more than $35,000
per violation per affected worker.
``(3) Use of civil penalties.--All penalties collected
under this subsection shall be deposited in the Treasury in
accordance with section 286(w).
``(4) Criminal penalties.--If a willful and knowing
violation of subsection (i) causes extreme physical or
financial harm to an individual, the person in violation of
such subsection may be imprisoned for not more than 6 months,
fined not more than $35,000 fine, or both.''.

SEC. 1305. MARKET-BASED NUMERICAL LIMITATIONS.

Section 214(g) of the Immigration and Nationality Act (8
U.S.C. 1184(g)) is amended--
(1) in paragraph (1)--
(A) by striking ``(beginning with fiscal year 1992)'';
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(C) under section 101(a)(15)(H)(v)(a), may not exceed--
``(i) 400,000 for the first fiscal year in which the
program is implemented;
``(ii) in any subsequent fiscal year--

``(I) if the total number of visas allocated for that
fiscal year are allotted within the first quarter of that
fiscal year, then an additional 20 percent of the allocated
number shall be made available immediately and the allocated
amount for the following fiscal year shall increase by 20
percent of the original allocated amount in the prior fiscal
year;
``(II) if the total number of visas allocated for that
fiscal year are allotted within the second quarter of that
fiscal year, then an additional 15 percent of the allocated
number shall be made available immediately and the allocated
amount for the following fiscal year shall increase by 15
percent of the original allocated amount in the prior fiscal
year;
``(III) if the total number of visas allocated for that
fiscal year are allotted within the third quarter of that
fiscal year, then an additional 10 percent of the allocated
number shall be made available immediately and the allocated
amount for the following fiscal year shall increase by 10
percent of the original allocated amount in the prior fiscal
year;

``(IV) if the total number of visas allocated for that
fiscal year are allotted within the last quarter of that
fiscal year, then the allocated amount for the following
fiscal year shall increase by 10 percent of the original
allocated amount in the prior fiscal year; and
``(V) with the exception of the first subsequent fiscal
year to the fiscal year in which the program is implemented,
if fewer visas were allotted the previous fiscal year than
the number of visas allocated for that year and the reason
was not due to processing delays or delays in promulgating
regulations, then the allocated amount for the following
fiscal year shall decrease by 10 percent of the allocated
amount in the prior fiscal year.''; and

(2) by adding at the end the following:
``(9)(A) Of the total number of visas allocated for each
fiscal year under paragraph (1)(C)--
``(i) 50,000 visas shall be allocated to qualifying
counties; and
``(ii) any of the visas allocated under clause (i) that are
not issued by June 30 of such fiscal year, may be made
available to any qualified applicant.
``(B) In this paragraph, the term `qualifying county' means
any county that--
``(i) that is outside a metropolitan statistical area; and
``(ii) during the 20-year-period ending on the last day of
the calendar year preceding the date of enactment of the
Secure America and Orderly Immigration Act, experienced a net
out-migration of inhabitants from the county of at least 10
percent of the population of the county at the beginning of
such period.
``(10) In allocating visas under this subsection, the
Secretary of State may take any additional measures necessary
to deter illegal immigration.''.

SEC. 1306. ADJUSTMENT TO LAWFUL PERMANENT RESIDENT STATUS.

Section 245 of the Immigration and Nationality Act (8
U.S.C. 1255) is amended by adding at the end the following:
``(n)(1) For purposes of adjustment of status under
subsection (a), employment-based immigrant visas shall be
made available to an alien having nonimmigrant status
described in section 101(a)(15)(H)(v)(a) upon the filing of a
petition for such a visa--
``(A) by the alien's employer; or
``(B) by the alien, if the alien has maintained such
nonimmigrant status in the United States for a cumulative
total of 4 years.
``(2) An alien having nonimmigrant status described in
section 101(a)(15)(H)(v)(a) may not apply for adjustment of
status under this section unless the alien--
``(A) is physically present in the United States; and
``(B) the alien establishes that the alien--
``(i) meets the requirements of section 312; or
``(ii) is satisfactorily pursuing a course of study to
achieve such an understanding of English and knowledge and
understanding of the history and government of the United
States.
``(3) An alien who demonstrates that the alien meets the
requirements of section 312 may be considered to have
satisfied the requirements of that section for purposes of
becoming naturalized as a citizen of the United States under
title III.
``(4) Filing a petition under paragraph (1) on behalf of an
alien or otherwise seeking permanent residence in the United
States for such alien shall not constitute evidence of the
alien's ineligibility for nonimmigrant status under section
101(a)(15)(H)(v)(a).
``(5) The limitation under section 302(d) regarding the
period of authorized stay shall not apply to any alien having
nonimmigrant status under section 101(a)(15)(H)(v)(a) if--
``(A) a labor certification petition filed under section
203(b) on behalf of such alien is pending; or
``(B) an immigrant visa petition filed under section 204(b)
on behalf of such alien is pending.
``(6) The Secretary of Homeland Security shall extend the
stay of an alien who qualifies for an exemption under
paragraph (5) in 1-year increments until a final decision is
made on the alien's lawful permanent residence.
``(7) Nothing in this subsection shall be construed to
prevent an alien having nonimmigrant status described in
section 101(a)(15)(H)(v)(a) from filing an application for
adjustment of status under this section in accordance with
any other provision of law.''.

SEC. 1307. ESSENTIAL WORKER VISA PROGRAM TASK FORCE.

(a) Establishment of Task Force.--
(1) In general.--There is established a task force to be
known as the Essential Worker Visa Program Task Force
(referred to in this section as the ``Task Force'').
(2) Purposes.--The purposes of the Task Force are--
(A) to study the Essential Worker Visa Program (referred to
in this section as the ``Program'') established under this
title; and
(B) to make recommendations to Congress with respect to
such program.
(3) Membership.--The Task Force shall be composed of 10
members, of whom--
(A) 1 shall be appointed by the President and shall serve
as chairman of the Task Force;
(B) 1 shall be appointed by the leader of the Democratic
Party in the Senate, in consultation with the leader of the
Democratic Party in the House of Representatives, and shall
serve as vice chairman of the Task Force;
(C) 2 shall be appointed by the majority leader of the
Senate;
(D) 2 shall be appointed by the minority leader of the
Senate;
(E) 2 shall be appointed by the Speaker of the House of
Representatives; and
(F) 2 shall be appointed by the minority leader of the
House of Representatives.
(4) Qualifications.--
(A) In general.--Members of the Task Force shall be--
(i) individuals with expertise in economics, demography,
labor, business, or immigration or other pertinent
qualifications or experience; and
(ii) representative of a broad cross-section of
perspectives within the United States, including the public
and private sectors and academia;
(B) Political affiliation.--Not more than 5 members of the
Task Force may be members of the same political party.
(C) Nongovernmental appointees.--An individual appointed to
the Task Force may not be an officer or employee of the
Federal Government or of any State or local government.
(5) Deadline for appointment.--All members of the Task
Force shall be appointed not later than 6 months after the
Program has been implemented.
(6) Vacancies.--Any vacancy in the Task Force shall not
affect its powers, but shall be filled in the same manner in
which the original appointment was made.
(7) Meetings.--
(A) Initial meeting.--The Task Force shall meet and begin
the operations of the Task Force as soon as practicable.
(B) Subsequent meetings.--After its initial meeting, the
Task Force shall meet upon the call of the chairman or a
majority of its members.
(8) Quorum.--Six members of the Task Force shall constitute
a quorum.
(b) Duties.--The Task Force shall examine and make
recommendations regarding the Program, including
recommendations regarding--
(1) the development and implementation of the Program;
(2) the criteria for the admission of temporary workers
under the Program;
(3) the formula for determining the yearly numerical
limitations of the Program;
(4) the impact of the Program on immigration;
(5) the impact of the Program on the United States
workforce and United States businesses; and
(6) any other matters regarding the Program that the Task
Force considers appropriate.

[[Page S1111]]

(c) Information and Assistance From Federal Agencies.--
(1) Information from federal agencies.--The Task Force may
seek directly from any Federal department or agency such
information, including suggestions, estimates, and
statistics, as the Task Force considers necessary to carry
out the provisions of this section. Upon request of the Task
Force, the head of such department or agency shall furnish
such information to the Task Force.
(2) Assistance from federal agencies.--The Administrator of
General Services shall, on a reimbursable base, provide the
Task Force with administrative support and other services for
the performance of the Task Force's functions. The
departments and agencies of the United States may provide the
Task Force with such services, funds, facilities, staff, and
other support services as they determine advisable and as
authorized by law.
(d) Reports.--
(1) Initial report.--Not later than 2 years after the
Program has been implemented, the Task Force shall submit a
report to Congress, the Secretary of State, the Secretary of
Labor, and the Secretary of Homeland Security that contains--
(A) findings with respect to the duties of the Task Force;
(B) recommendations for improving the Program; and
(C) suggestions for legislative or administrative action to
implement the Task Force recommendations.
(2) Final report.--Not later than 4 years after the
submission of the initial report under paragraph (1), the
Task Force shall submit a final report to Congress, the
Secretary of State, the Secretary of Labor, and the Secretary
of Homeland Security that contains additional findings,
recommendations, and suggestions, as described in paragraph
(1).

SEC. 1308. WILLING WORKER-WILLING EMPLOYER ELECTRONIC JOB
REGISTRY.

(a) Establishment.--The Secretary of Labor shall direct the
coordination and modification of the national system of
public labor exchange services (commonly known as ``America's
Job Bank'') in existence on the date of enactment of this Act
to provide information on essential worker employment
opportunities available to United States workers and
nonimmigrant workers under section 101(a)(15)(H)(v)(a) of the
Immigration and Nationality Act, as added by this Act.
(b) Recruitment of United States Workers.--Before the
completion of evidence of employment for a potential
nonimmigrant worker under section 101(a)(15)(H)(v)(a) of the
Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(v)(a), an employer shall attest that the
employer has posted in the Job Registry for not less than 30
days in order to recruit United States workers. An employer
shall maintain records for not less than 1 year demonstrating
why United States workers who applied were not hired.
(c) Oversight and Maintenance of Records.--The Secretary of
Labor shall maintain electronic job registry records, as
established by regulation, for the purpose of audit or
investigation.
(d) Access to Job Registry.--
(1) Circulation in interstate employment service system.--
The Secretary of Labor shall ensure that job opportunities
advertised on the electronic job registry established under
this section are accessible by the State workforce agencies,
which may further disseminate job opportunity information to
other interested parties.
(2) Internet.--The Secretary of Labor shall ensure that the
Internet-based electronic job registry established or
approved under this section may be accessed by workers,
employers, labor organizations, and other interested parties.

SEC. 1309. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to the Secretary of
State such sums as may be necessary to carry out this title
and the amendments made by this title for the period
beginning on the date of enactment of this Act and ending on
the last day of the sixth fiscal year beginning after the
effective date of the regulations promulgated by the
Secretary to implement this title.

TITLE IV--ENFORCEMENT

SEC. 1401. DOCUMENT AND VISA REQUIREMENTS.

(a) In General.--Section 221(a) of the Immigration and
Nationality Act (8 U.S.C. 1201(a)) is amended by adding at
the end the following:
``(3) Visas and Immigration Related Document
Requirements.--
``(A) Visas issued by the Secretary of State and
immigration related documents issued by the Secretary of
State or the Secretary of Homeland Security shall comply with
authentication and biometric standards recognized by domestic
and international standards organizations.
``(B) Such visas and documents shall--
``(i) be machine-readable and tamper-resistant;
``(ii) use biometric identifiers that are consistent with
the requirements of section 303 of the Enhanced Border
Security and Visa Entry Reform Act of 2002 (8 U.S.C. 1732),
and represent the benefits and status set forth in such
section;
``(iii) comply with the biometric and document identifying
standards established by the International Civil Aviation
Organization; and
``(iv) be compatible with the United States Visitor and
Immigrant Status Indicator Technology and the employment
verification system established under section 274E.
``(C) The information contained on the visas or immigration
related documents described in subparagraph (B) shall
include--
``(i) the alien's name, date and place of birth, alien
registration or visa number, and, if applicable, social
security number;
``(ii) the alien's citizenship and immigration status in
the United States; and
``(iii) the date that such alien's authorization to work in
the United States expires, if appropriate.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on the date that is 6 months after the date
of enactment of this Act.

SEC. 1402. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

(a) In General.--Chapter 8 of title II of the Immigration
and Nationality Act (8 U.S.C. 1321 et seq.) is amended by
inserting after section 274D the following:

``EMPLOYMENT ELIGIBILITY

``Sec. 274E.  (a) Employment Eligibility Confirmation
System.--
``(1) In general.--The Commissioner of Social Security, in
consultation and coordination with the Secretary of Homeland
Security, shall establish an Employment Eligibility
Confirmation System (referred to in this section as the
`System') through which the Commissioner responds to
inquiries made by employers who have hired individuals
concerning each individual's identity and employment
authorization.
``(2) Maintenance of records.--The Commissioner shall
electronically maintain records by which compliance under the
System may be verified.
``(3) Objectives of the system.--The System shall--
``(A) facilitate the eventual transition for all businesses
from the employer verification system established in section
274A with the System;
``(B) utilize, as a central feature of the System, machine-
readable documents that contain encrypted electronic
information to verify employment eligibility; and
``(C) provide for the evidence of employment required under
section 218A.
``(4) Initial response.--The System shall provide--
``(A) confirmation or a tentative nonconfirmation of an
individual's identity and employment eligibility not later
than 1 working day after the initial inquiry; and
``(B) an appropriate code indicating such confirmation or
tentative nonconfirmation.
``(5) Secondary verification process in case of tentative
nonconfirmation.--
``(A) Establishment.--For cases of tentative
nonconfirmation, the Commissioner of Social Security, in
consultation and coordination with the Secretary of Homeland
Security, shall establish a secondary verification process.
The employer shall make the secondary verification inquiry
not later than 10 days after receiving a tentative
nonconfirmation.
``(B) Discrepancies.--If an employee chooses to contest a
secondary nonconfirmation, the employer shall provide the
employee with a referral letter and instruct the employee to
visit an office of the Department of Homeland Security or the
Social Security Administration to resolve the discrepancy not
later than 10 working days after the receipt of such referral
letter in order to obtain confirmation.
``(C) Failure to contest.--An individual's failure to
contest a confirmation shall not constitute knowledge (as
defined in section 274a.1(l) of title 8, Code of Federal
Regulations.
``(6) Design and operation of system.--The System shall be
designed, implemented, and operated--
``(A) to maximize its reliability and ease of use
consistent with protecting the privacy and security of the
underlying information through technical and physical
safeguards;
``(B) to allow employers to verify that a newly hired
individual is authorized to be employed;
``(C) to permit individuals to--
``(i) view their own records in order to ensure the
accuracy of such records; and
``(ii) contact the appropriate agency to correct any errors
through an expedited process established by the Commissioner
of Social Security, in consultation and coordination with the
Secretary of Homeland Security; and
``(D) to prevent discrimination based on national origin or
citizenship status under section 274B.
``(7) Unlawful uses of system.--It shall be an unlawful
immigration-related employment practice--
``(A) for employers or other third parties to use the
System selectively or without authorization;
``(B) to use the System prior to an offer of employment;
``(C) to use the System to exclude certain individuals from
consideration for employment as a result of a perceived
likelihood that additional verification will be required,
beyond what is required for most job applicants;
``(D) to use the System to deny certain employment
benefits, otherwise interfere with the labor rights of
employees, or any other unlawful employment practice; or
``(E) to take adverse action against any person, including
terminating or suspending an employee who has received a
tentative nonconfirmation.

[[Page S1112]]

``(b) Employment Eligibility Database.--
``(1) Requirement.--The Commissioner of Social Security, in
consultation and coordination with the Secretary of Homeland
Security and other appropriate agencies, shall design,
implement, and maintain an Employment Eligibility Database
(referred to in this section as the `Database') as described
in this subsection.
``(2) Data.--The Database shall include, for each
individual who is not a citizen or national of the United
States, but is authorized or seeking authorization to be
employed in the United States, the individual's--
``(A) country of origin;
``(B) immigration status;
``(C) employment eligibility;
``(D) occupation;
``(E) metropolitan statistical area of employment;
``(F) annual compensation paid;
``(G) period of employment eligibility;
``(H) employment commencement date; and
``(I) employment termination date.
``(3) Reverification of employment eligibility.--The
Commissioner of Social Security shall prescribe, by
regulation, a system to annually reverify the employment
eligibility of each individual described in this section--
``(A) by utilizing the machine-readable documents described
in section 221(a)(3); or
``(B) if machine-readable documents are not available, by
telephonic or electronic communication.
``(4) Confidentiality.--
``(A) Access to database.--No officer or employee of any
agency or department of the United States, other than
individuals responsible for the verification of employment
eligibility or for the evaluation of the employment
verification program at the Social Security Administration,
the Department of Homeland Security, and the Department of
Labor, may have access to any information contained in the
Database.
``(B) Protection from unauthorized disclosure.--Information
in the Database shall be adequately protected against
unauthorized disclosure for other purposes, as provided in
regulations established by the Commissioner of Social
Security, in consultation with the Secretary of Homeland
Security and the Secretary of Labor.
``(5) Authorization of appropriations.--There are
authorized to be appropriated such sums as may be necessary
to design, implement, and maintain the Database.
``(c) Gradual Implementation.--The Commissioner of Social
Security, in coordination with the Secretary of Homeland
Security and the Secretary of Labor shall develop a plan to
phase all workers into the Database and phase out the
employer verification system established in section 274A over
a period of time that the Commissioner determines to be
appropriate.
``(d) Employer Responsibilities.--Each employer shall--
``(1) notify employees and prospective employees of the use
of the System and that the System may be used for immigration
enforcement purposes;
``(2) verify the identification and employment
authorization status for newly hired individuals described in
section 101(a)(15)(H)(v)(a) not later than 3 days after the
date of hire;
``(3) use--
``(A) a machine-readable document described in subsection
(a)(3)(B); or
``(B) the telephonic or electronic system to access the
Database;
``(4) provide, for each employer hired, the occupation,
metropolitan statistical area of employment, and annual
compensation paid;
``(5) retain the code received indicating confirmation or
nonconfirmation, for use in investigations described in
section 212(n)(2); and
``(6) provide a copy of the employment verification receipt
to such employees.
``(e) Good-Faith Compliance.--
``(1) Affirmative defense.--A person or entity that
establishes good faith compliance with the requirements of
this section with respect to the employment of an individual
in the United States has established an affirmative defense
that the person or entity has not violated this section.
``(2) Limitation.--Paragraph (1) shall not apply if a
person or entity engages in an unlawful immigration-related
employment practice described in subsection (a)(7).''.
(b) Interim Directive.--Before the implementation of the
Employment Eligibility Confirmation System (referred to in
this section as the ``System'') established under section
274E of the Immigration and Nationality Act, as added by
subsection (a), the Commissioner of Social Security, in
coordination with the Secretary of Homeland Security, shall,
to the maximum extent practicable, implement an interim
system to confirm employment eligibility that is consistent
with the provisions of such section.
(c) Reports.--
(1) In general.--Not later than 3 months after the last day
of the second year and of the third year that the System is
in effect, the Comptroller General of the United States shall
submit to the Committee on the Judiciary of the Senate and
the Committee on the Judiciary of the House of
Representatives a report on the System.
(2) Contents.--Each report submitted under paragraph (1)
shall include--
(A) an assessment of the impact of the System on the
employment of unauthorized workers;
(B) an assessment of the accuracy of the Employment
Eligibility Database maintained by the Department of Homeland
Security and Social Security Administration databases, and
timeliness and accuracy of responses from the Department of
Homeland Security and the Social Security Administration to
employers;
(C) an assessment of the privacy, confidentiality, and
system security of the System;
(D) assess whether the System is being implemented in a
nondiscriminatory manner; and
(E) include recommendations on whether or not the System
should be modified.

SEC. 1403. IMPROVED ENTRY AND EXIT DATA SYSTEM.

Section 110 of the Illegal Immigration Reform and Immigrant
Responsibility Act of 1996 (8 U.S.C. 1365a) is amended--
(1) by striking ``Attorney General'' each place it appears
and inserting ``Secretary of Homeland Security'';
(2) in subsection (b)--
(A) in paragraph (1)(C), by striking ``Justice'' and
inserting ``Homeland Security'';
(B) in paragraph (4), by striking ``and'' at the end;
(C) in paragraph (5), by striking the period at the end and
inserting ``; and''; and
(D) by adding at the end the following:
``(6) collects the biometric machine-readable information
from an alien's visa or immigration-related document
described in section 221(a)(3) of the Immigration and
Nationality Act (8 U.S.C. 1201(a)(3) at the time an alien
arrives in the United States and at the time an alien departs
from the United States to determine if such alien is
entering, or is present in, the United States unlawfully.'';
and
(3) in subsection (f)(1), by striking ``Departments of
Justice and State'' and inserting ``Department of Homeland
Security and the Department of State''.

SEC. 1404. DEPARTMENT OF LABOR INVESTIGATIVE AUTHORITIES.

Section 212(n)(2) of the Immigration and Nationality Act (8
U.S.C. 1182(n)(2)) is amended--
(1) by redesignating subparagraph (H) as subparagraph (J);
and
(2) by inserting after subparagraph (G) the following:
``(H)(i) The Secretary of Labor may initiate an
investigation of any employer that employs nonimmigrants
described in section 101(a)(15)(H)(v)(a) if the Secretary, or
the Secretary's designee--
``(I) certifies that reasonable cause exists to believe
that the employer is out of compliance with the Secure
America and Orderly Immigration Act or section 274E; and
``(II) approves the commencement of the investigation.
``(ii) In determining whether reasonable cause exists to
initiate an investigation under this section, the Secretary
shall--
``(I) monitor the Willing Worker-Willing Employer
Electronic Job Registry;
``(II) monitor the Employment Eligibility Confirmation
System, taking into consideration whether--
``(aa) an employer's submissions to the System generate a
high volume of tentative nonconfirmation responses relative
to other comparable employers;
``(bb) an employer rarely or never screens hired
individuals;
``(cc) individuals employed by an employer rarely or never
pursue a secondary verification process as established in
section 274E; or
``(dd) any other indicators of illicit, inappropriate or
discriminatory use of the System, especially those described
in section 274E(a)(6)(D), exist; and
``(III) consider any additional evidence that the Secretary
determines appropriate.
``(iii) Absent other evidence of noncompliance, an
investigation under this subparagraph should not be initiated
for lack of completeness or obvious inaccuracies by the
employer in complying with section 101(a)(15)(H)(v)(a).''.

SEC. 1405. PROTECTION OF EMPLOYMENT RIGHTS.

The Secretary and the Secretary of Homeland Security shall
establish a process under which a nonimmigrant worker
described in clause (ii)(b) or (v)(a) of section
101(a)(15)(H) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(H)) who files a nonfrivolous complaint
regarding a violation of this section and is otherwise
eligible to remain and work in the United States may be
allowed to seek other appropriate employment in the United
States with an employer for a period not to exceed the
maximum period of stay authorized for that nonimmigrant
classification.

SEC. 1406. INCREASED FINES FOR PROHIBITED BEHAVIOR.

Section 274B(g)(2)(B)(iv) of the Immigration and
Nationality Act (8 U.S.C. 1324b(g)(2)(B)(iv)) is amended--
(1) in subclause (I), by striking ``not less than $250 and
not more than $2,000'' and inserting ``not less than $500 and
not more than $4,000'';
(2) in subclause (II), by striking ``not less than $2,000
and not more than $5,000'' and inserting ``not less than
$4,000 and not more than $10,000''; and
(3) in subclause (III), by striking ``not less than $3,000
and not more than $10,000'' and inserting ``not less than
$6,000 and not more than $20,000''.

[[Page S1113]]

TITLE V--PROMOTING CIRCULAR MIGRATION PATTERNS

SEC. 1501. LABOR MIGRATION FACILITATION PROGRAMS.

(a) Authority for Program.--
(1) In general.--The Secretary of State is authorized to
enter into an agreement to establish and administer a labor
migration facilitation program jointly with the appropriate
official of a foreign government whose citizens participate
in the temporary worker program authorized under section
101(a)(15)(H)(v)(a) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(H)(v)(a)).
(2) Priority.--In establishing programs under subsection
(a), the Secretary of State shall place a priority on
establishing such programs with foreign governments that have
a large number of nationals working as temporary workers in
the United States under such section 101(a)(15)(H)(v)(a). The
Secretary shall enter into such agreements not later than 3
months after the date of enactment of this Act or as soon
thereafter as is practicable.
(3) Elements of program.--A program established under
paragraph (1) may provide for--
(A) the Secretary of State, in conjunction with the
Secretary of Homeland Security and the Secretary of Labor, to
confer with a foreign government--
(i) to establish and implement a program to assist
temporary workers from such a country to obtain nonimmigrant
status under such section 101(a)(15)(H)(v)(a);
(ii) to establish programs to create economic incentives
for aliens to return to their home country;
(B) the foreign government to monitor the participation of
its nationals in such a temporary worker program, including
departure from and return to a foreign country;
(C) the foreign government to develop and promote a
reintegration program available to such individuals upon
their return from the United States;
(D) the foreign government to promote or facilitate travel
of such individuals between the country of origin and the
United States; and
(E) any other matters that the foreign government and
United States find appropriate to enable such individuals to
maintain strong ties to their country of origin.

SEC. 1502. BILATERAL EFFORTS WITH MEXICO TO REDUCE MIGRATION
PRESSURES AND COSTS.

(a) Findings.--Congress makes the following findings:
(1) Migration from Mexico to the United States is directly
linked to the degree of economic opportunity and the standard
of living in Mexico.
(2) Mexico comprises a prime source of migration to the
United States.
(3) Remittances from Mexican citizens working in the United
States reached a record high of nearly $17,000,000,000 in
2004.
(4) Migration patterns may be reduced from Mexico to the
United States by addressing the degree of economic
opportunity available to Mexican citizens.
(5) Many Mexican assets are held extra-legally and cannot
be readily used as collateral for loans.
(6) A majority of Mexican businesses are small or medium
size with limited access to financial capital.
(7) These factors constitute a major impediment to broad-
based economic growth in Mexico.
(8) Approximately 20 percent of Mexico's population works
in agriculture, with the majority of this population working
on small farms and few on large commercial enterprises.
(9) The Partnership for Prosperity is a bilateral
initiative launched jointly by the President of the United
States and the President of Mexico in 2001, which aims to
boost the social and economic standards of Mexican citizens,
particularly in regions where economic growth has lagged and
emigration has increased.
(10) The Presidents of Mexico and the United States and the
Prime Minister of Canada, at their trilateral summit on March
23, 2005, agreed to promote economic growth, competitiveness,
and quality of life in the agreement on Security and
Prosperity Partnership of North America.
(b) Sense of Congress Regarding Partnership for
Prosperity.--It is the sense of Congress that the United
States and Mexico should accelerate the implementation of the
Partnership for Prosperity to help generate economic growth
and improve the standard of living in Mexico, which will lead
to reduced migration, by--
(1) increasing access for poor and under served populations
in Mexico to the financial services sector, including credit
unions;
(2) assisting Mexican efforts to formalize its extra-legal
sector, including the issuance of formal land titles, to
enable Mexican citizens to use their assets to procure
capital;
(3) facilitating Mexican efforts to establish an effective
rural lending system for small- and medium-sized farmers that
will--
(A) provide long term credit to borrowers;
(B) develop a viable network of regional and local
intermediary lending institutions; and
(C) extend financing for alternative rural economic
activities beyond direct agricultural production;
(4) expanding efforts to reduce the transaction costs of
remittance flows in order to increase the pool of savings
available to help finance domestic investment in Mexico;
(5) encouraging Mexican corporations to adopt
internationally recognized corporate governance practices,
including anti-corruption and transparency principles;
(6) enhancing Mexican efforts to strengthen governance at
all levels, including efforts to improve transparency and
accountability, and to eliminate corruption, which is the
single biggest obstacle to development;
(7) assisting the Government of Mexico in implementing all
provisions of the Inter-American Convention Against
Corruption (ratified by Mexico on May 27, 1997) and urging
the Government of Mexico to participate fully in the
Convention's formal implementation monitoring mechanism;
(8) helping the Government of Mexico to strengthen
education and training opportunities throughout the country,
with a particular emphasis on improving rural education; and
(9) encouraging the Government of Mexico to create
incentives for persons who have migrated to the United States
to return to Mexico.
(c) Sense of Congress Regarding Bilateral Partnership on
Health Care.--It is the sense of Congress that the Government
of the United States and the Government of Mexico should
enter into a partnership to examine uncompensated and
burdensome health care costs incurred by the United States
due to legal and illegal immigration, including--
(1) increasing health care access for poor and under served
populations in Mexico;
(2) assisting Mexico in increasing its emergency and trauma
health care facilities along the border, with emphasis on
expanding prenatal care in the United States-Mexico border
region;
(3) facilitating the return of stable, incapacitated
workers temporarily employed in the United States to Mexico
in order to receive extended, long-term care in their home
country; and
(4) helping the Government of Mexico to establish a program
with the private sector to cover the health care needs of
Mexican nationals temporarily employed in the United States.

TITLE VI--FAMILY UNITY AND BACKLOG REDUCTION

SEC. 1601. ELIMINATION OF EXISTING BACKLOGS.

(a) Family-Sponsored Immigrants.--Section 201(c) of the
Immigration and Nationality Act (8 U.S.C. 1151(c)) is amended
to read as follows:
``(c) Worldwide Level of Family-Sponsored Immigrants.--The
worldwide level of family-sponsored immigrants under this
subsection for a fiscal year is equal to the sum of--
``(1) 480,000;
``(2) the difference between the maximum number of visas
authorized to be issued under this subsection during the
previous fiscal year and the number of visas issued during
the previous fiscal year; and
``(3) the difference between--
``(A) the maximum number of visas authorized to be issued
under this subsection during fiscal years 2001 through 2005
minus the number of visas issued under this subsection during
those years; and
``(B) the number of visas described in subparagraph (A)
that were issued after fiscal year 2005.''.
(b) Employment-Based Immigrants.--Section 201(d) of the
Immigration and Nationality Act (8 U.S.C. 1151(d)) is amended
to read as follows:
``(d) Worldwide Level of Employment-Based Immigrants.--The
worldwide level of employment-based immigrants under this
subsection for a fiscal year is equal to the sum of--
``(1) 290,000;
``(2) the difference between the maximum number of visas
authorized to be issued under this subsection during the
previous fiscal year and the number of visas issued during
the previous fiscal year; and
``(3) the difference between--
``(A) the maximum number of visas authorized to be issued
under this subsection during fiscal years 2001 through 2005
and the number of visa numbers issued under this subsection
during those years; and
``(B) the number of visas described in subparagraph (A)
that were issued after fiscal year 2005.''.

SEC. 1602. COUNTRY LIMITS.

Section 202(a) of the Immigration and Nationality Act (8
U.S.C. 1152(a)) is amended--
(1) in paragraph (2)--
(A) by striking ``, (4), and (5)'' and inserting ``and
(4)''; and
(B) by striking ``7 percent (in the case of a single
foreign state) or 2 percent'' and inserting ``10 percent (in
the case of a single foreign state) or 5 percent''; and
(2) by striking paragraph (5).

SEC. 1603. ALLOCATION OF IMMIGRANT VISAS.

(a) Preference Allocation for Family-Sponsored
Immigrants.--Section 203(a) of the Immigration and
Nationality Act (8 U.S.C. 1153(a)) is amended to read as
follows:
``(a) Preference Allocations for Family-Sponsored
Immigrants.--Aliens subject to the worldwide level specified
in section 201(c) for family-sponsored immigrants shall be
allocated visas as follows:
``(1) Unmarried sons and daughters of citizens.--Qualified
immigrants who are the unmarried sons or daughters of
citizens of the United States shall be allocated visas in a
quantity not to exceed 10 percent of such worldwide level
plus any visas not required for the class specified in
paragraph (4).
``(2) Spouses and unmarried sons and daughters of permanent
resident

[[Page S1114]]

aliens.--Visas in a quantity not to exceed 50 percent of such
worldwide level plus any visas not required for the class
specified in paragraph (1) shall be allocated to qualified
immigrants--
``(A) who are the spouses or children of an alien lawfully
admitted for permanent residence, which visas shall
constitute not less than 77 percent of the visas allocated
under this paragraph; or
``(B) who are the unmarried sons or daughters of an alien
lawfully admitted for permanent residence.
``(3) Married sons and daughters of citizens.--Qualified
immigrants who are the married sons and daughters of citizens
of the United States shall be allocated visas in a quantity
not to exceed 10 percent of such worldwide level plus any
visas not required for the classes specified in paragraphs
(1) and (2).
``(4) Brothers and sisters of citizens.--Qualified
immigrants who are the brothers or sisters of citizens of the
United States who are at least 21 years of age shall be
allocated visas in a quantity not to exceed 30 percent of the
worldwide level plus any visas not required for the classes
specified in paragraphs (1) through (3).''.
(b) Preference Allocation for Employment-Based
Immigrants.--Section 203(b) of the Immigration and
Nationality Act (8 U.S.C. 1153(b)) is amended--
(1) in paragraph (1), by striking ``28.6 percent'' and
inserting ``20 percent'';
(2) in paragraph (2)(A), by striking ``28.6 percent'' and
inserting ``20 percent'';
(3) in paragraph (3)(A)--
(A) by striking ``28.6 percent'' and inserting ``35
percent''; and
(B) by striking clause (iii);
(4) by striking paragraph (4);
(5) by redesignating paragraph (5) as paragraph (4);
(6) in paragraph (4)(A), as redesignated, by striking ``7.1
percent'' and inserting ``5 percent'';
(7) by inserting after paragraph (4), as redesignated, the
following:
``(5) Other workers.--Visas shall be made available, in a
number not to exceed 30 percent of such worldwide level, plus
any visa numbers not required for the classes specified in
paragraphs (1) through (4), to qualified immigrants who are
capable, at the time of petitioning for classification under
this paragraph, of performing unskilled labor that is not of
a temporary or seasonal nature, for which qualified workers
are determined to be unavailable in the United States, or to
nonimmigrants under section 101(a)(15)(H)(v)(a).''; and
(8) by striking paragraph (6).
(c) Conforming Amendments.--
(1) Definition of special immigrant.--Section 101(a)(27)(M)
of the Immigration and Nationality Act (8 U.S.C.
1101(a)(27)(M)) is amended by striking ``subject to the
numerical limitations of section 203(b)(4),''.
(2) Repeal of temporary reduction in workers' visas.--
Section 203(e) of the Nicaraguan Adjustment and Central
American Relief Act (8 U.S.C. 1153 note) is repealed.

SEC. 1604. RELIEF FOR CHILDREN AND WIDOWS.

(a) In General.--Section 201(b)(2)(A)(i) of the Immigration
and Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)) is amended by
striking ``spouses, and parents of a citizen of the United
States'' and inserting ``(and their children who are
accompanying or following to join them), the spouses (and
their children who are accompanying or following to join
them), and the parents of a citizen of the United States (and
their children who are accompanying or following to join
them)''.
(b) Petition.--Section 204(a)(1)(A)(ii) of the Immigration
and Nationality Act (8 U.S.C. 1154 (a)(1)(A)(ii) is amended
by inserting ``or an alien child or alien parent described in
the third sentence of section 201(b)(2)(A)(i)'' after
``section 201(b)(2)(A)(i)''.
(c) Adjustment of Status.--Section 245 of the Immigration
and Nationality Act (8 U.S.C. 1255) is amended by adding at
the end the following:
``(n) Applications for Adjustment of Status by Surviving
Spouses, Children, and Parents.--
``(1) In general.--Notwithstanding subsections (a) and (c)
(except subsection (c)(6)), any alien described in paragraph
(2) who applied for adjustment of status prior to the death
of the qualifying relative, may have such application
adjudicated as if such death had not occurred.
``(2) Alien described.--An alien described in this
paragraph is an alien who--
``(A) is an immediate relative (as defined in section
201(b)(2)(A)(i));
``(B) is a family-sponsored immigrant (as described in
subsection (a) or (d) of section 203);
``(C) is a derivative beneficiary of an employment-based
immigrant under section 203(b), as described in section
203(d); or
``(D) is a derivative beneficiary of a diversity immigrant
(as described in section 203(c)).''.
(d) Transition Period.--Notwithstanding a denial of an
application for adjustment of status not more than 2 years
before the date of enactment of this Act, in the case of an
alien whose qualifying relative died before the date of
enactment of this Act, such application may be renewed by the
alien through a motion to reopen, without fee, filed not
later than 1 year after the date of enactment of this Act.

SEC. 1605. AMENDING THE AFFIDAVIT OF SUPPORT REQUIREMENTS.

Section 213A of the Immigration and Nationality Act (8
U.S.C. 1183a) is amended--
(1) in subsection (a)(1)(A), by striking ``125'' and
inserting ``100''; and
(2) in subsection (f), by striking ``125'' each place it
appears and inserting ``100''.

SEC. 1606. DISCRETIONARY AUTHORITY.

Section 212(i) of the Immigration and Nationality Act (8
U.S.C. 1182(i)) is amended--
(1) by redesignating paragraph (2) as paragraph (3); and
(2) by inserting after paragraph (1) the following:
``(2)(A) The Secretary of Homeland Security may waive the
application of subsection (a)(6)(C)--
``(i) in the case of an immigrant who is the spouse,
parent, son, or daughter of a United States citizen or of an
alien lawfully admitted for permanent residence, if the
Secretary of Homeland Security determines that the refusal of
admission to the United States of such immigrant alien would
result in extreme hardship to the citizen or lawfully
resident spouse, child, son, daughter, or parent of such an
alien; or
``(ii) in the case of an alien granted classification under
clause (iii) or (iv) of section 204(a)(1)(A) or clause (ii)
or (iii) of section 204(a)(1)(B), the alien demonstrates
extreme hardship to the alien or the alien's parent or child
if, such parent or child is a United States citizen, a lawful
permanent resident, or a qualified alien.
``(B) An alien who is granted a waiver under subparagraph
(A) shall pay a $2,000 fine.''.

SEC. 1607. FAMILY UNITY.

Section 212(a)(9) of the Immigration and Nationality Act (8
U.S.C. 1182(a)(9)) is amended--
(1) in subparagraph (B)(iii)(I), by striking ``18'' and
inserting ``21''; and
(2) in subparagraph (C)(ii)--
(A) by redesignating subclauses (1) and (2) as subclauses
(I) and (II); and
(B) in subclause (II), as redesignated, by redesignating
items (A), (B), (C), and (D) as items (aa), (bb), (cc), and
(dd); and
(3) by adding at the end the following:
``(D) Waiver.--
``(i) In general.--The Secretary may waive the application
of subparagraphs (B) and (C) for an alien who is a
beneficiary of a petition filed under sections 201 and 203 if
such petition was filed on or before the date of introduction
of Secure America and Orderly Immigration Act.
``(ii) Fine.--An alien who is granted a waiver under clause
(i) shall pay a $2,000 fine.''.

TITLE VII--H-5B NONIMMIGRANTS

SEC. 1701. H-5B NONIMMIGRANTS.

(a) In General.--Chapter 5 of title II of the Immigration
and Nationality Act (8 U.S.C. 1255 et seq.) is amended by
adding after section 250 the following:

``H-5B NONIMMIGRANTS

``Sec. 250A.  (a) In General.--The Secretary of Homeland
Security shall adjust the status of an alien to that of a
nonimmigrant under section 101(a)(15)(H)(v)(b) if the alien--
``(1) submits an application for such adjustment; and
``(2) meets the requirements of this section.
``(b) Presence in the United States.--The alien shall
establish that the alien--
``(1) was present in the United States before the date on
which the Secure America and Orderly Immigration Act was
introduced, and has been continuously in the United States
since such date; and
``(2) was not legally present in the United States on the
date on which the Secure America and Orderly Immigration Act
was introduced under any classification set forth in section
101(a)(15).
``(c) Spouses and Children.--Notwithstanding any other
provision of law, the Secretary of Homeland Security shall,
if the person is otherwise eligible under subsection (b)--
``(1) adjust the status to that of a nonimmigrant under
section 101(a)(15)(H)(v)(b) for, or provide a nonimmigrant
visa to, the spouse or child of an alien who is provided
nonimmigrant status under section 101(a)(15)(H)(v)(b); or
``(2) adjust the status to that of a nonimmigrant under
section 101(a)(15)(H)(v)(b) for an alien who, before the date
on which the Secure America and Orderly Immigration Act was
introduced in Congress, was the spouse or child of an alien
who is provided nonimmigrant status under section
101(a)(15)(H)(v)(b), or is eligible for such status, if--
``(A) the termination of the qualifying relationship was
connected to domestic violence; and
``(B) the spouse or child has been battered or subjected to
extreme cruelty by the spouse or parent alien who is provided
nonimmigrant status under section 101(a)(15)(H)(v)(b).
``(d) Other Criteria.--
``(1) In general.--An alien may be granted nonimmigrant
status under section 101(a)(15)(H)(v)(b), or granted status
as the spouse or child of an alien eligible for such status
under subsection (c), if the alien establishes that the
alien--
``(A) is not inadmissible to the United States under
section 212(a), except as provided in paragraph (2); or
``(B) has not ordered, incited, assisted, or otherwise
participated in the persecution of any person on account of
race, religion, nationality, membership in a particular
social group, or political opinion.

[[Page S1115]]

``(2) Grounds of inadmissibility.--In determining an
alien's admissibility under paragraph (1)(A)--
``(A) paragraphs (5), (6)(A), (6)(B), (6)(C), (6)(F),
(6)(G), (7), (9), and (10)(B) of section 212(a) shall not
apply for conduct that occurred before the date on which the
Secure America and Orderly Immigration Act was introduced;
``(B) the Secretary of Homeland Security may not waive--
``(i) subparagraph (A), (B), (C), (E), (G), (H), or (I) of
section 212(a)(2) (relating to criminals);
``(ii) section 212(a)(3) (relating to security and related
grounds); or
``(iii) subparagraph (A) or (C) of section 212(a)(10)
(relating to polygamists and child abductors);
``(C) for conduct that occurred before the date on which
the Secure America and Orderly Immigration Act was
introduced, the Secretary of Homeland Security may waive the
application of any provision of section 212(a) not listed in
subparagraph (B) on behalf of an individual alien for
humanitarian purposes, to ensure family unity, or when such
waiver is otherwise in the public interest; and
``(D) nothing in this paragraph shall be construed as
affecting the authority of the Secretary of Homeland Security
other than under this paragraph to waive the provisions of
section 212(a).
``(3) Applicability of other provisions.--Sections 240B(d)
and 241(a)(5) shall not apply to an alien who is applying for
adjustment of status in accordance with this title for
conduct that occurred before the date on which the Secure
America and Orderly Immigration Act was introduced.
``(e) Employment.--
``(1) In general.--The Secretary of Homeland Security may
not adjust the status of an alien to that of a nonimmigrant
under section 101(a)(15)(H)(v)(b) unless the alien
establishes that the alien--
``(A) was employed in the United States, whether full time,
part time, seasonally, or self-employed, before the date on
which the Secure America and Orderly Immigration Act was
introduced; and
``(B) has been employed in the United States since that
date.
``(2) Evidence of employment.--
``(A) Conclusive documents.--An alien may conclusively
establish employment status in compliance with paragraph (1)
by submitting to the Secretary of Homeland Security records
demonstrating such employment maintained by--
``(i) the Social Security Administration, Internal Revenue
Service, or by any other Federal, State, or local government
agency;
``(ii) an employer; or
``(iii) a labor union, day labor center, or an organization
that assists workers in matters related to employment.
``(B) Other documents.--An alien who is unable to submit a
document described in clauses (i) through (iii) of
subparagraph (A) may satisfy the requirement in paragraph (1)
by submitting to the Secretary at least 2 other types of
reliable documents that provide evidence of employment,
including--
``(i) bank records;
``(ii) business records;
``(iii) sworn affidavits from nonrelatives who have direct
knowledge of the alien's work; or
``(iv) remittance records.
``(3) Intent of congress.--It is the intent of Congress
that the requirement in this subsection be interpreted and
implemented in a manner that recognizes and takes into
account the difficulties encountered by aliens in obtaining
evidence of employment due to the undocumented status of the
alien.
``(4) Burden of proof.--An alien described in paragraph (1)
who is applying for adjustment of status under this section
has the burden of proving by a preponderance of the evidence
that the alien has satisfied the requirements of this
subsection. An alien may meet such burden of proof by
producing sufficient evidence to demonstrate such employment
as a matter of reasonable inference.
``(f) Special Rules for Minors and Individuals Who Entered
as Minors.--The employment requirements under this section
shall not apply to any alien under 21 years of age.
``(g) Education Permitted.--An alien may satisfy the
employment requirements under this section, in whole or in
part, by full-time attendance at--
``(1) an institution of higher education (as defined in
section 101 of the Higher Education Act of 1965 (20 U.S.C.
1001)); or
``(2) a secondary school (as defined in section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801)).
``(h) Security and Law Enforcement Background Checks.--
``(1) Submission of fingerprints.--An alien may not be
granted nonimmigrant status under section
101(a)(15)(H)(v)(b), or granted status as the spouse or child
of an alien eligible for such status under subsection (c),
unless the alien submits fingerprints in accordance with
procedures established by the Secretary of Homeland Security.
``(2) Background checks.--The Secretary of Homeland
Security shall utilize fingerprints and other data provided
by the alien to conduct a background check of such alien
relating to criminal, national security, or other law
enforcement actions that would render the alien ineligible
for adjustment of status as described in this section.
``(3) Expeditious processing.--The background checks
required under paragraph (2) shall be conducted as
expeditiously as possible.
``(i) Period of Authorized Stay and Application Fee and
Fine.--
``(1) Period of authorized stay.--
``(A) In general.--The period of authorized stay for a
nonimmigrant described in section 101(a)(15)(H)(v)(b) shall
be 6 years.
``(B) Limitation.--The Secretary of Homeland Security may
not authorize a change from such nonimmigrant classification
to any other immigrant or nonimmigrant classification until
the termination of the 6-year period described in
subparagraph (A). The Secretary may only extend such period
to accommodate the processing of an application for
adjustment of status under section 245B.
``(2) Application fee.--The Secretary of Homeland Security
shall impose a fee for filing an application for adjustment
of status under this section. Such fee shall be sufficient to
cover the administrative and other expenses incurred in
connection with the review of such applications.
``(3) Fines.--
``(A) In general.--In addition to the fee required under
paragraph (2), the Secretary of Homeland Security may accept
an application for adjustment of status under this section
only if the alien pays a $1,000 fine.
``(B) Exception.--Fines paid under this paragraph shall not
be required from an alien under the age of 21.
``(4) Collection of fees and fines.--All fees and fines
collected under this section shall be deposited in the
Treasury in accordance with section 286(w).
``(j) Treatment of Applicants.--
``(1) In general.--An alien who files an application under
this section, including the alien's spouse or child--
``(A) shall be granted employment authorization pending
final adjudication of the alien's application for adjustment
of status;
``(B) shall be granted permission to travel abroad;
``(C) may not be detained, determined inadmissible or
deportable, or removed pending final adjudication of the
alien's application for adjustment of status, unless the
alien, through conduct or criminal conviction, becomes
ineligible for such adjustment of status; and
``(D) may not be considered an unauthorized alien (as
defined in section 274A(h)(3)) until employment authorization
under subparagraph (A) is denied.
``(2) Before application period.--If an alien is
apprehended after the date of enactment of this section, but
before the promulgation of regulations pursuant to this
section, and the alien can establish prima facie eligibility
as a nonimmigrant under section 101(a)(15)(H)(v)(b), the
Secretary of Homeland Security shall provide the alien with a
reasonable opportunity, after promulgation of regulations, to
file an application for adjustment.
``(3) During certain proceedings.--Notwithstanding any
provision of this Act, an alien who is in removal proceedings
shall have an opportunity to apply for adjustment of status
under this title unless a final administrative determination
has been made.
``(4) Relationships of application to certain orders.--An
alien who is present in the United States and has been
ordered excluded, deported, removed, or ordered to depart
voluntarily from the United States under any provision of
this Act may, notwithstanding such order, apply for
adjustment of status in accordance with this section. Such an
alien shall not be required to file a separate motion to
reopen, reconsider, or vacate the exclusion, deportation,
removal, or voluntary departure order. If the Secretary of
Homeland Security grants the application, the Secretary shall
cancel such order. If the Secretary of Homeland Security
renders a final administrative decision to deny the
application, such order shall be effective and enforceable to
the same extent as if the application had not been made.
``(k) Administrative and Judicial Review.--
``(1) Administrative review.--
``(A) Single level of administrative appellate review.--The
Secretary of Homeland Security shall establish an appellate
authority within the United States Citizenship and
Immigration Services to provide for a single level of
administrative appellate review of a determination respecting
an application for adjustment of status under this section.
``(B) Standard for review.--Administrative appellate review
referred to in subparagraph (A) shall be based solely upon
the administrative record established at the time of the
determination on the application and upon the presentation of
additional or newly discovered evidence during the time of
the pending appeal.
``(2) Judicial review.--
``(A) In general.--There shall be judicial review in the
Federal courts of appeal of the denial of an application for
adjustment of status under this section. Notwithstanding any
other provision of law, the standard for review of such a
denial shall be governed by subparagraph (B).
``(B) Standard for judicial review.--Judicial review of a
denial of an application under this section shall be based
solely upon the administrative record established at the time
of the review. The findings of fact and other determinations
contained in the record shall be conclusive unless the
applicant can

[[Page S1116]]

establish abuse of discretion or that the findings are
directly contrary to clear and convincing facts contained in
the record, considered as a whole.
``(C) Jurisdiction of courts.--
``(i) In general.--Notwithstanding any other provision of
law, the district courts of the United States shall have
jurisdiction over any cause or claim arising from a pattern
or practice of the Secretary of Homeland Security in the
operation or implementation of this section that is
arbitrary, capricious, or otherwise contrary to law, and may
order any appropriate relief.
``(ii) Remedies.--A district court may order any
appropriate relief under clause (i) if the court determines
that resolution of such cause or claim will serve judicial
and administrative efficiency or that a remedy would
otherwise not be reasonably available or practicable.
``(3) Stay of removal.--Aliens seeking administrative or
judicial review under this subsection shall not be removed
from the United States until a final decision is rendered
establishing ineligibility under this section.
``(l) Confidentiality of Information.--
``(1) In general.--Except as otherwise provided in this
subsection, no Federal agency or bureau, nor any officer,
employee, or agent of such agency or bureau, may--
``(A) use the information furnished by the applicant
pursuant to an application filed under this section for any
purpose other than to make a determination on the
application;
``(B) make any publication through which the information
furnished by any particular applicant can be identified; or
``(C) permit anyone other than the sworn officers and
employees of such agency or bureau to examine individual
applications.
``(2) Required disclosures.--The Secretary of Homeland
Security shall provide the information furnished pursuant to
an application filed under this section, and any other
information derived from such furnished information, to a
duly recognized law enforcement entity in connection with a
criminal investigation or prosecution or a national security
investigation or prosecution, in each instance about an
individual suspect or group of suspects, when such
information is requested in writing by such entity.
``(3) Criminal penalty.--Any person who knowingly uses,
publishes, or permits information to be examined in violation
of this subsection shall be fined not more than $10,000.
``(m) Penalties for False Statements in Applications.--
``(1) Criminal penalty.--
``(A) Violation.--It shall be unlawful for any person--
``(i) to file or assist in filing an application for
adjustment of status under this section and knowingly and
willfully falsify, misrepresent, conceal, or cover up a
material fact or make any false, fictitious, or fraudulent
statements or representations, or make or use any false
writing or document knowing the same to contain any false,
fictitious, or fraudulent statement or entry; or
``(ii) to create or supply a false writing or document for
use in making such an application.
``(B) Penalty.--Any person who violates subparagraph (A)
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).
``(3) Exception.--Notwithstanding paragraphs (1) and (2),
any alien or other entity (including an employer or union)
that submits an employment record that contains incorrect
data that the alien used in order to obtain such employment
before the date on which the Secure America and Orderly
Immigration Act is introduced, shall not, on that ground, be
determined to have violated this section.''.
(b) Clerical Amendment.--The table of contents for the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by inserting after the item relating to section 250
the following:

``Sec. 250A. H-5B nonimmigrants.''.

SEC. 1702. ADJUSTMENT OF STATUS FOR H-5B NONIMMIGRANTS.

(a) In General.--Chapter 5 of title II of the Immigration
and Nationality Act (8 U.S.C. 1255 et seq.) is amended by
inserting after section 245A the following:

``ADJUSTMENT OF STATUS OF FORMER H-5B NONIMMIGRANT TO THAT OF PERSON
ADMITTED FOR LAWFUL PERMANENT RESIDENCE

``Sec. 245B.  (a) Requirements.--The Secretary shall adjust
the status of an alien from nonimmigrant status under section
101(a)(15)(H)(v)(b) to that of an alien lawfully admitted for
permanent residence under this section if the alien satisfies
the following requirements:
``(1) Completion of employment or education requirement.--
The alien establishes that the alien has been employed in the
United States, either full time, part time, seasonally, or
self-employed, or has met the education requirements of
subsection (f) or (g) of section 250A during the period
required by section 250A(e).
``(2) Rulemaking.--The Secretary shall establish
regulations for the timely filing and processing of
applications for adjustment of status for nonimmigrants under
section 101(a)(15)(H)(v)(b).
``(3) Application and fee.--The alien who applies for
adjustment of status under this section shall pay the
following:
``(A) Application fee.--An alien who files an application
under section 245B of the Immigration and Nationality Act,
shall pay an application fee, set by the Secretary.
``(B) Additional fine.--Before the adjudication of an
application for adjustment of status filed under this
section, an alien who is at least 21 years of age shall pay a
fine of $1,000.
``(4) Admissible under immigration laws.--The alien
establishes that the alien is not inadmissible under section
212(a), except for any provision of that section that is not
applicable or waived under section 250A(d)(2).
``(5) Medical examination.--The alien shall undergo, at the
alien's expense, an appropriate medical examination
(including a determination of immunization status) that
conforms to generally accepted professional standards of
medical practice.
``(6) Payment of income taxes.--
``(A) In general.--Not later than the date on which status
is adjusted under this section, the alien shall establish the
payment of all Federal income taxes owed for employment
during the period of employment required by section 250A(e)
by establishing that--
``(i) no such tax liability exists;
``(ii) all outstanding liabilities have been met; or
``(iii) the alien has entered into an agreement for payment
of all outstanding liabilities with the Internal Revenue
Service.
``(B) IRS cooperation.--The Commissioner of Internal
Revenue shall provide documentation to an alien upon request
to establish the payment of all income taxes required by this
paragraph.
``(7) Basic citizenship skills.--
``(A) In general.--Except as provided in subparagraph (B),
the alien shall establish that the alien--
``(i) meets the requirements of section 312; or
``(ii) is satisfactorily pursuing a course of study to
achieve such an understanding of English and knowledge and
understanding of the history and government of the United
States.
``(B) Relation to naturalization examination.--An alien who
demonstrates that the alien meets the requirements of section
312 may be considered to have satisfied the requirements of
that section for purposes of becoming naturalized as a
citizen of the United States under title III.
``(8) Security and law enforcement background checks.--The
Secretary shall conduct a security and law enforcement
background check in accordance with procedures described in
section 250A(h).
``(9) Military selective service.--The alien shall
establish that if the alien is within the age period required
under the Military Selective Service Act (50 U.S.C. App. 451
et seq.), that such alien has registered under that Act.
``(b) Treatment of Spouses and Children.--
``(1) Adjustment of status.--Notwithstanding any other
provision of law, the Secretary of Homeland Security shall--
``(A) adjust the status to that of a lawful permanent
resident under this section, or provide an immigrant visa to
the spouse or child of an alien who adjusts status to that of
a permanent resident under this section; or
``(B) adjust the status to that of a lawful permanent
resident under this section for an alien who was the spouse
or child of an alien who adjusts status or is eligible to
adjust status to that of a permanent resident under section
245B in accordance with subsection (a), if--
``(i) the termination of the qualifying relationship was
connected to domestic violence; and
``(ii) the spouse or child has been battered or subjected
to extreme cruelty by the spouse or parent who adjusts status
to that of a permanent resident under this section.
``(2) Application of other law.--In acting on applications
filed under this subsection with respect to aliens who have
been battered or subjected to extreme cruelty, the Secretary
of Homeland Security shall apply the provisions of section
204(a)(1)(J) and the protections, prohibitions, and penalties
under section 384 of the Illegal Immigration Reform and
Immigrant Responsibility Act of 1996 (8 U.S.C. 1367).
``(c) Judicial Review; Confidentiality; Penalties.--
Subsections (n), (o), and (p) of section 250A shall apply to
this section.''.
(b) Clerical Amendment.--The table of contents for the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.) is
amended by inserting after the item relating to section 245A
the following:

``Sec. 245B. Adjustment of status of former H-5B nonimmigrant to that
of person admitted for lawful permanent residence.''.

SEC. 1703. ALIENS NOT SUBJECT TO DIRECT NUMERICAL
LIMITATIONS.

Section 201(b)(1) of the Immigration and Nationality Act (8
U.S.C. 1151(b)(1)) is amended--
(1) in subparagraph (A), by striking ``subparagraph (A) or
(B) of''; and
(2) by adding at the end the following:
``(F) Aliens whose status is adjusted from the status
described in section 101(a)(15)(H)(v)(b).''.

[[Page S1117]]

SEC. 1704. EMPLOYER PROTECTIONS.

(a) Immigration Status of Alien.--Employers of aliens
applying for adjustment of status under section 245B or 250A
of the Immigration and Nationality Act, as added by this
title, shall not be subject to civil and criminal tax
liability relating directly to the employment of such alien
prior to such alien receiving employment authorization under
this title.
(b) Provision of Employment Records.--Employers that
provide unauthorized aliens with copies of employment records
or other evidence of employment pursuant to an application
for adjustment of status under section 245B or 250A of the
Immigration and Nationality Act or any other application or
petition pursuant to any other immigration law, shall not be
subject to civil and criminal liability under section 274A of
such Act for employing such unauthorized aliens.
(c) Applicability of Other Law.--Nothing in this section
may be used to shield an employer from liability under
section 274B of the Immigration and Nationality Act (8 U.S.C.
1324b) or any other labor or employment law.

SEC. 1705. AUTHORIZATION OF APPROPRIATIONS.

(a) In General.--There are authorized to be appropriated to
the Secretary of Homeland Security such sums as may be
necessary to carry out this title and the amendments made by
this title.
(b) Availability of Funds.--Funds appropriated pursuant
subsection (a) shall remain available until expended.
(c) Sense of Congress.--It is the sense of Congress that
funds authorized to be appropriated under subsection (a)
should be directly appropriated so as to facilitate the
orderly and timely commencement of the processing of
applications filed under sections 245B and 250A of the
Immigration and Nationality Act, as added by this Act.

TITLE VIII--PROTECTION AGAINST IMMIGRATION FRAUD

SEC. 1801. RIGHT TO QUALIFIED REPRESENTATION.

Section 292 of the Immigration and Nationality Act (8
U.S.C. 1362) is amended to read as follows:

``RIGHT TO QUALIFIED REPRESENTATION IN IMMIGRATION MATTERS

``Sec. 292.  (a) Authorized Representatives in Immigration
Matters.--Only the following individuals are authorized to
represent an individual in an immigration matter before any
Federal agency or entity:
``(1) An attorney.
``(2) A law student who is enrolled in an accredited law
school, or a graduate of an accredited law school who is not
admitted to the bar, if--
``(A) the law student or graduate is appearing at the
request of the individual to be represented;
``(B) in the case of a law student, the law student has
filed a statement that the law student is participating,
under the direct supervision of a faculty member, attorney,
or accredited representative, in a legal aid program or
clinic conducted by a law school or nonprofit organization,
and that the law student is appearing without direct or
indirect remuneration from the individual the law student
represents;
``(C) in the case of a graduate, the graduate has filed a
statement that the graduate is appearing under the
supervision of an attorney or accredited representative and
that the graduate is appearing without direct or indirect
remuneration from the individual the graduate represents; and
``(D) the law student's or graduate's appearance is--
``(i) permitted by the official before whom the law student
or graduate wishes to appear; and
``(ii) accompanied by the supervising faculty member,
attorney, or accredited representative, to the extent
required by such official.
``(3) Any reputable individual, if--
``(A) the individual is appearing on an individual case
basis, at the request of the individual to be represented;
``(B) the individual is appearing without direct or
indirect remuneration and the individual files a written
declaration to that effect, except as described in
subparagraph (D);
``(C) the individual has a pre-existing relationship or
connection with the individual entitled to representation,
such as a relative, neighbor, clergyman, business associate,
or personal friend, except that this requirement may be
waived, as a matter of administrative discretion, in cases
where adequate representation would not otherwise be
available; and
``(D) if making a personal appearance on behalf of another
individual, the appearance is permitted by the official
before whom the individual wishes to appear, except that such
permission shall not be granted with respect to any
individual who regularly engages in immigration and
naturalization practice or preparation, or holds himself or
herself out to the public as qualified to do so.
``(4) An individual representing a recognized organization
(as described in subsection (f)) who has been approved to
serve as an accredited representative by the Board of
Immigration Appeals under subsection (f)(2).
``(5) An accredited official, in the United States, of the
government to which an alien owes allegiance, if the official
appears solely in his or her official capacity and with the
consent of the person to be represented.
``(6) An individual who is licensed to practice law and is
in good standing in a court of general jurisdiction of the
country in which the individual resides and who is engaged in
such practice, if the person represents persons only in
matters outside the United States and that the official
before whom such person wishes to appear allows such
representation, as a matter of discretion.
``(7) An attorney, or an organization represented by an
attorney, may appear, on a case-by-case basis, as amicus
curiae, if the Board of Immigration Appeals grants such
permission and the public interest will be served by such
appearance.
``(b) Former Employees.--No individual previously employed
by the Department of Justice, Department of State, Department
of Labor, or Department of Homeland Security may be permitted
to act as an authorized representative under this section, if
such authorization would violate any other applicable
provision of Federal law or regulation. In addition, any
application for such authorization must disclose any prior
employment by or contract with such agencies for services of
any nature.
``(c) Advertising.--Only an attorney or an individual
approved under subsection (f)(2) as an accredited
representative may advertise or otherwise hold themselves out
as being able to provide representation in an immigration
matter. This provision shall in no way be deemed to diminish
any Federal or State law to regulate, control, or enforce
laws regarding such advertisement, solicitation, or offer of
representation.
``(d) Removal Proceedings.--In any proceeding for the
removal of an individual from the United States and in any
appeal proceedings from such proceeding, the individual shall
have the privilege, as the individual shall choose, of being
represented (at no expense to the Government) by an
individual described in subsection (a). Representation by an
individual other than a person described in subsection (a)
may cause the representative to be subject to civil penalties
or such other penalties as may be applicable.
``(e) Benefits Filings.--In any filing or submission for an
immigration related benefit or a determination related to the
immigration status of an individual made to the Department of
Homeland Security, the Department of Labor, or the Department
of State, the individual shall have the privilege, as the
individual shall choose, of being represented (at no expense
to the Government) by an individual described in subsection
(a). Representation by an individual other than an individual
described in subsection (a) is cause for the representative
to be subject to civil or criminal penalties, as may be
applicable.
``(f) Recognized Organizations and Accredited
Representatives.--
``(1) Recognized organizations.--
``(A) In general.--The Board of Immigration Appeals may
determine that a person is a recognized organization if such
person--
``(i) is a nonprofit religious, charitable, social service,
or similar organization established in the United States
that--

``(I) is recognized by the Board of Immigration Appeals;
and
``(II) is authorized to designate a representative to
appear in an immigration matter before the Department of
Homeland Security or the Executive Office for Immigration
Review of the Department of Justice; and

``(ii) demonstrates to the Board that such person--

``(I) makes only nominal charges and assesses no excessive
membership dues for individuals given assistance; and
``(II) has at its disposal adequate knowledge, information,
and experience.

``(B) Bonding.--The Board, in its discretion, may impose a
bond requirement on new organizations seeking recognition.
``(C) Reporting obligations.--Recognized organizations
shall promptly notify the Board when the organization no
longer meets the requirements for recognition or when an
accredited representative employed by the recognized
organization ceases to be employed by the recognized
organization.
``(2) Accredited representatives.--The Board of Immigration
Appeals shall approve any qualified individual designated by
a recognized organization to serve as an accredited
representative. Such individual must be employed by the
recognized organization and must meet all requirements set
forth in this section and in the accompanying regulations to
be authorized to represent individuals in an immigration
matter. Accredited representatives, through their recognized
organizations, must certify their continuing eligibility for
accreditation every 3 years with the Board of Immigration
Appeals. Accredited representatives who fail to comply with
these requirements shall not have authority to represent
persons in an immigration matter for the recognized
organization.
``(g) Prohibited Acts.--An individual, other than an
individual authorized to represent an individual under this
section, may not--
``(1) directly or indirectly provide or offer
representation regarding an immigration matter for
compensation or contribution;
``(2) advertise or solicit representation in an immigration
matter;
``(3) retain any compensation provided for a prohibited act
described in paragraph (1) or (2), regardless of whether any
petition, application, or other document was filed with any
government agency or entity and regardless of whether a
petition, application, or other document was prepared or
represented to have been prepared by such individual;
``(4) represent directly or indirectly that the individual
is an attorney or supervised

[[Page S1118]]

by or affiliated with an attorney, when such representation
is false; or
``(5) violate any applicable civil or criminal statute or
regulation of a State regarding the provision of
representation by providing or offering to provide
immigration or immigration-related assistance referenced in
this subsection.
``(h) Civil Enforcement.--
``(1) In general.--Any person, or any entity acting for the
interests of itself, its members, or the general public
(including a Federal law enforcement official or agency or
law enforcement official or agency of any State or political
subdivision of a State), that has reason to believe that any
person is being or has been injured by reason of a violation
of subsection (g) may commence a civil action in any court of
competent jurisdiction.
``(2) Remedies.--
``(A) Damages.--In any civil action brought under this
subsection, if the court finds that the defendant has
violated subsection (g), it shall award actual damages, plus
the greater of--
``(i) an amount treble the amount of actual damages; or
``(ii) $1,000 per violation.
``(B) Injunctive relief.--The court may award appropriate
injunctive relief, including temporary, preliminary, or
permanent injunctive relief, and restitution. Injunctive
relief may include, where appropriate, an order temporarily
or permanently enjoining the defendant from providing any
service to any person in any immigration matter. The court
may make such orders or judgments, including the appointment
of a receiver, as may be necessary to prevent the commission
of any act described in subsection (g).
``(C) Attorney's fees.--The court shall also grant a
prevailing plaintiff reasonable attorney's fees and costs,
including expert witness fees.
``(D) Civil penalties.--The court may also assess a civil
penalty not exceeding $50,000 for a first violation, and not
exceeding $100,000 for subsequent violations.
``(E) Cumulative remedies.--Unless otherwise expressly
provided, the remedies or penalties provided under this
paragraph are cumulative to each other and to the remedies or
penalties available under all other Federal laws or laws of
the jurisdiction where the violation occurred.
``(3) Nonpreemption.--Nothing in this subsection shall be
construed to preempt any other private right of action or any
right of action pursuant to the laws of any jurisdiction.
``(4) Discovery.--Information obtained through discovery in
a civil action under this subsection shall not be used in any
criminal action. Upon the request of any party to a civil
action under this subsection, any part of the court file that
makes reference to information discovered in a civil action
under this subsection may be sealed.
``(i) Nonpreemption of More Protective State and Local
Laws.--The provisions of this section supersede laws,
regulations, and municipal ordinances of any State only to
the extent such laws, regulations, and municipal ordinances
impede the application of any provision of this section. Any
State or political subdivision of a State may impose
requirements supplementing those imposed by this section.
``(j) Definitions.--As used in this section--
``(1) the term `attorney' means a person who--
``(A) is a member in good standing of the bar of the
highest court of a State; and
``(B) is not under any order of any court suspending,
enjoining, restraining, disbarring, or otherwise restricting
such person in the practice of law;
``(2) the term `compensation' means money, property, labor,
promise of payment, or any other consideration provided
directly or indirectly to an individual
``(3) the term `immigration matter' means any proceeding,
filing, or action affecting the immigration or citizenship
status of any person, which arises under any immigration or
nationality law, Executive order, Presidential proclamation,
or action of any Federal agency;
``(4) the term `representation', when used with respect to
the representation of a person, includes--
``(A) the appearance, either in person or through the
preparation or filing of any brief or other document, paper,
application, or petition on behalf of another person or
client, before any Federal agency or officer; and
``(B) the study of the facts of a case and the applicable
laws, coupled with the giving of advice and auxiliary
activities, including the incidental preparation of papers;
and
``(5) the term `State' includes a State or an outlying
possession of the United States.''.

SEC. 1802. PROTECTION OF WITNESS TESTIMONY.

(a) Definition.--Section 101(a)(15)(U)(i) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(i)) is
amended--
(1) by inserting in subclause (I) after the phrase ``clause
(iii)'' the following: ``or has suffered substantial
financial, physical, or mental harm as the result of a
prohibited act described in section 292;''
(2) by inserting in subclause (II) after the phrase
``clause (iii)'' the following: ``or section 292'';
(3) by inserting in subclause (III) after the phrase
``clause (iii)'' the following: ``or section 292''; and
(4) by inserting in subclause (IV) after the phrase
``clause (iii)'' the following: ``or section 292''.
(b) Admission of Nonimmigrants.--Section 214(p) of the
Immigration and Nationality Act of (8 U.S.C. 1184(p)) is
amended--
(1) in paragraph (1), by inserting ``or section 274E''
after ``section 101(a)(15)(U)(iii)'' each place it appears;
and
(2) in paragraph (2)(A), by striking ``10,000'' and
inserting ``15,000''.

TITLE IX--CIVICS INTEGRATION

SEC. 1901. FUNDING FOR THE OFFICE OF CITIZENSHIP.

(a) Authorization.--The Secretary of Homeland Security,
acting through the Director of the Bureau of Citizenship and
Immigration Services, is authorized to establish the United
States Citizenship Foundation (referred to in this section as
the ``Foundation''), an organization duly incorporated in the
District of Columbia, exclusively for charitable and
educational purposes to support the functions of the Office
of Citizenship (as described in section 451(f)(2) of the
Homeland Security Act of 2002 (6 U.S.C. 271(f)(2)).
(b) Gifts.--
(1) To foundation.--The Foundation may solicit, accept, and
make gifts of money and other property in accordance with
section 501(c)(3) of the Internal Revenue Code of 1986.
(2) From foundation.--The Office of Citizenship may accept
gifts from the Foundation to support the functions of the
Office.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
the mission of the Office of Citizenship.

SEC. 1902. CIVICS INTEGRATION GRANT PROGRAM.

(a) In General.--The Secretary of Homeland Security shall
establish a competitive grant program to fund--
(1) efforts by entities certified by the Office of
Citizenship to provide civics and English as a second
language courses; or
(2) other activities approved by the Secretary to promote
civics and English as a second language.
(b) Acceptance of Gifts.--The Secretary may accept and use
gifts from the United States Citizenship Foundation for
grants under this section.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section.

TITLE X--PROMOTING ACCESS TO HEALTH CARE

SEC. 2001. FEDERAL REIMBURSEMENT OF EMERGENCY HEALTH SERVICES
FURNISHED TO UNDOCUMENTED ALIENS.

Section 1011 of the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003 (42 U.S.C. 1395dd
note) is amended--
(1) by striking ``2008'' and inserting ``2011''; and
(2) in subsection (c)(5), by adding at the end the
following:
``(D) Nonimmigrants described in section 101(a)(15)(H)(v)
of the Immigration and Nationality Act (8 U.S.C.
1101(a)(15)(H)(v)''.

SEC. 2002. PROHIBITION AGAINST OFFSET OF CERTAIN MEDICARE AND
MEDICAID PAYMENTS.

Payments made under section 1011 of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003
(42 U.S.C. 1395dd note)--
(1) shall not be considered ``third party coverage'' for
the purposes of section 1923 of the Social Security Act (42
U.S.C. 1396r-4); and
(2) shall not impact payments made under such section of
the Social Security Act.

SEC. 2003. PROHIBITION AGAINST DISCRIMINATION AGAINST ALIENS
ON THE BASIS OF EMPLOYMENT IN HOSPITAL-BASED
VERSUS NONHOSPITAL-BASED SITES.

Section 214(l)(1)(C) of the Immigrant and Nationality Act
(8 U.S.C. 1184(l)(1)(C) is amended--
(1) in clause (i), by striking ``and'' at the end; and
(2) by adding at the end the following:
``(iii) such interested Federal agency or interested State
agency, in determining which aliens will be eligible for such
waivers, does not utilize selection criteria, other than as
described in this subsection, that discriminate on the basis
of the alien's employment in a hospital-based versus
nonhospital-based facility or organization; and''.

SEC. 2004. BINATIONAL PUBLIC HEALTH INFRASTRUCTURE AND HEALTH
INSURANCE.

(a) Study.--
(1) In general.--The Secretary of Health and Human Services
shall contract with the Institute of Medicine of the National
Academies (referred to in this section as the ``Institute'')
to study binational public health infrastructure and health
insurance efforts.
(2) Input.--In conducting the study under paragraph (1),
the Institute shall solicit input from border health experts
and health insurance companies.
(b) Report.--
(1) In general.--Not later than 1 year after the date on
which the Secretary of Health and Human Services enters into
a contract under subsection (a), the Institute shall submit a
report concerning the study conducted under subsection (a) to
the Secretary of Health and Human Services and the
appropriate committees of Congress.
(2) Contents.--The report submitted under paragraph (1)
shall include the recommendations of the Institute on ways to
expand or improve binational public health infrastructure and
health insurance efforts.

[[Page S1119]]

TITLE XI--MISCELLANEOUS

SEC. 2101. SUBMISSION TO CONGRESS OF INFORMATION REGARDING H-
5A NONIMMIGRANTS.

(a) Ensuring Accurate Count.--The Secretary of State and
the Secretary of Homeland Security shall maintain an accurate
count of the number of aliens subject to the numerical
limitations under section 214(g)(1)(C) of the Immigration and
Nationality Act (8 U.S.C. 1184(g)(1)(C)) who are issued visas
or otherwise provided nonimmigrant status.
(b) Provision of Information.--
(1) Quarterly notification.--Beginning with the first
fiscal year after regulations are promulgated to implement
this Act, the Secretary of State and the Secretary of
Homeland Security shall submit quarterly reports to the
Committee on the Judiciary of the Senate and the Committee on
the Judiciary of the House of Representatives containing the
numbers of aliens who were issued visas or otherwise provided
nonimmigrant status under section 101(a)(15)(H)(v)(a) of the
Immigrant and Nationality Act (8 U.S.C. 1101(a)(15)(H)(v)(a))
during the preceding 3-month period.
(2) Annual submission.--Beginning with the first fiscal
year after regulations are promulgated to implement this Act,
the Secretary of Homeland Security shall submit annual
reports to the Committee on the Judiciary of the Senate and
the Committee on the Judiciary of the House of
Representatives, containing information on the countries of
origin and occupations of, geographic area of employment in
the United States, and compensation paid to, aliens who were
issued visas or otherwise provided nonimmigrant status under
such section 101(a)(15)(H)(v)(a). The Secretary shall compile
such reports based on the data reported by employers to the
Employment Eligibility Confirmation System established in
section 402.

SEC. 2102. H-5 NONIMMIGRANT PETITIONER ACCOUNT.

Section 286 of the Immigration and Nationality Act (8
U.S.C. 1356) is amended by adding at the end the following:
``(w)(1) There is established in the general fund of the
Treasury of the United States an account, which shall be
known as the `H-5 Nonimmigrant Petitioner Account'.
``(2) There shall be deposited as offsetting receipts into
the H-5 Nonimmigrant Petitioners Account--
``(A) all fees collected under section 218A; and
``(B) all fines collected under section 212(n)(2)(I).
``(3) Of the fees and fines deposited into the H-5
Nonimmigrant Petitioner Account--
``(A) 53 percent shall remain available to the Secretary of
Homeland Security for efforts related to the adjudication and
implementation of the H-5 visa programs described in sections
221(a) and 250A and any other efforts necessary to carry out
the provisions of the Secure America and Orderly Immigration
Act and the amendments made by such Act, of which the
Secretary shall allocate--
``(i) 10 percent shall remain available to the Secretary of
Homeland Security for the border security efforts described
in title I of the Secure America and Orderly Immigration Act.
``(ii) not more than 1 percent to promote public awareness
of the H-5 visa program, to protect migrants from fraud, and
to combat the unauthorized practice of law described in title
III of the Secure America and Orderly Immigration Act;
``(iii) not more than 1 percent to the Office of
Citizenship to promote civics integration activities
described in section 901 of the Secure America and Orderly
Immigration Act; and
``(iv) 2 percent for the Civics Integration Grant Program
under section 902 of the Secure America and Orderly
Immigration Act.
``(B) 15 percent shall remain available to the Secretary of
Labor for the enforcement of labor standards in those
geographic and occupational areas in which H-5A visa holders
are likely to be employed and for other enforcement efforts
under the Secure America and Orderly Immigration Act;
``(C) 15 percent shall remain available to the Commissioner
of Social Security for the creation and maintenance of the
Employment Eligibility Confirmation System described in
section 402 of the Secure America and Orderly Immigration
Act;
``(D) 15 percent shall remain available to the Secretary of
State to carry out any necessary provisions of the Secure
America and Orderly Immigration Act; and
``(E) 2 percent shall remain available to the Secretary of
Health and Human Services for the reimbursement of hospitals
serving individuals working under programs established in
this Act.''.

SEC. 2103. ANTI-DISCRIMINATION PROTECTIONS.

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; or
``(v) granted the status of nonimmigrant under section
101(a)(15)(H)(v).''.

SEC. 2104. WOMEN AND CHILDREN AT RISK OF HARM.

(a) Certain Children and Women at Risk of Harm.--Section
101(a)(27) of the Immigration and Nationality Act (8 U.S.C.
1101(a)(27)) is amended--
(1) in subparagraph (L), by inserting a semicolon at the
end;
(2) in subparagraph (M), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(N) subject to subsection (j), an immigrant who is not
present in the United States--
``(i) who is--

``(I) referred to a consular, immigration, or other
designated official by a United States Government agency, an
international organization, or recognized nongovernmental
entity designated by the Secretary of State for purposes of
such referrals; and
``(II) determined by such official to be a minor under 18
years of age (as determined under subsection (j)(5))--

``(aa) for whom no parent or legal guardian is able to
provide adequate care;
``(bb) who faces a credible fear of harm related to his or
her age;
``(cc) who lacks adequate protection from such harm; and
``(dd) for whom it has been determined to be in his or her
best interests to be admitted to the United States; or
``(ii) who is--

``(I) referred to a consular or immigration official by a
United States Government agency, an international
organization or recognized nongovernmental entity designated
by the Secretary of State for purposes of such referrals; and
``(II) determined by such official to be a female who has--

``(aa) a credible fear of harm related to her sex; and
``(bb) a lack of adequate protection from such harm.''.
(b) Statutory Construction.--Section 101 of the Immigration
and Nationality Act (8 U.S.C. 1101) is amended by adding at
the end the following:
``(j)(1) No natural parent or prior adoptive parent of any
alien provided special immigrant status under subsection
(a)(27)(N)(i) shall thereafter, by virtue of such parentage,
be accorded any right, privilege, or status under this Act.
``(2)(A) No alien who qualifies for a special immigrant
visa under subsection (a)(27)(N)(ii) may apply for derivative
status or petition for any spouse who is represented by the
alien as missing, deceased, or the source of harm at the time
of the alien's application and admission. The Secretary of
Homeland Security may waive this requirement for an alien who
demonstrates that the alien's representations regarding the
spouse were bona fide.
``(B) An alien who qualifies for a special immigrant visa
under subsection (a)(27)(N) may apply for derivative status
or petition for any sibling under the age of 18 years or
children under the age of 18 years of any such alien, if
accompanying or following to join the alien. For purposes of
this subparagraph, a determination of age shall be made using
the age of the alien on the date the petition is filed with
the Department of Homeland Security.
``(3) An alien who qualifies for a special immigrant visa
under subsection (a)(27)(N) shall be treated in the same
manner as a refugee solely for purposes of section 412.
``(4) The provisions of paragraphs (4), (5), and (7)(A) of
section 212(a) shall not be applicable to any alien seeking
admission to the United States under subsection (a)(27)(N),
and the Secretary of Homeland Security may waive any other
provision of such section (other than paragraph (2)(C) or
subparagraph (A), (B), (C), or (E) of paragraph (3)) with
respect to such an alien for humanitarian purposes, to assure
family unity, or when it is otherwise in the public interest.
Any such waiver by the Secretary of Homeland Security shall
be in writing and shall be granted only on an individual
basis following an investigation. The Secretary of Homeland
Security shall provide for the annual reporting to Congress
of the number of waivers granted under this paragraph in the
previous fiscal year and a summary of the reasons for
granting such waivers.
``(5) For purposes of subsection (a)(27)(N)(i)(II), a
determination of age shall be made using the age of the alien
on the date on which the alien was referred to the consular,
immigration, or other designated official.
``(6) The Secretary of Homeland Security shall waive any
application fee for a special immigrant visa for an alien
described in section 101(a)(27)(N).''.
(c) Allocation of Special Immigrant Visas.--Section
203(b)(4) of the Immigration Nationality Act (8 U.S.C.
1153(b)(4)) is amended by striking ``(A) or (B) thereof'' and
inserting ``(A), (B), or (N) of such section''.
(d) Expedited Process.--Not later than 45 days after the
date of referral to a consular, immigration, or other
designated official as described in section 101(a)(27)(N) of
the Immigration and Nationality Act, as added by subsection
(a), special immigrant status shall be adjudicated and, if
granted, the alien shall be--
(1) paroled to the United States pursuant to section
212(d)(5) of that Act (8 U.S.C. 1182(d)(5)); and
(2) allowed to apply for adjustment of status to permanent
residence under section 245 of that Act (8 U.S.C. 1255) not
later than 1 year after the alien's arrival in the United
States.

[[Page S1120]]

(e) Requirement Prior to Entry Into the Untied States.--
(1) Database search.--An alien may not be admitted to the
United States under this section or an amendment made by this
section until the Secretary of Homeland Security has ensured
that a search of each database maintained by an agency or
department of the United States has been conducted to
determine whether such alien is ineligible to be admitted to
the Untied States on criminal, security, or related grounds.
(2) Cooperation and schedule.--The Secretary of Homeland
Security and the head of each appropriate agency or
department of the United States shall work cooperatively to
ensure that each database search required by paragraph (1) is
completed not later than 45 days after the date on which an
alien files a petition seeking a special immigration visa
under section 101(a)(27)(N) of the Immigration and
Nationality Act, as added by subsection (a).
(f) Requirement After Entry Into the United States.--
(1) Requirement to submit fingerprints.--
(A) In general.--Not later than 30 days after the date that
an alien enters the United States under this section or an
amendment made by this section, the alien shall be
fingerprinted and submit to the Secretary of Homeland
Security such fingerprints and any other personal biometric
data required by the Secretary.
(B) Other requirements.--The Secretary of Homeland Security
may prescribe regulations that permit fingerprints submitted
by an alien under section 262 of the Immigration and
Nationality Act (8 U.S.C. 1302) or any other provision of law
to satisfy the requirement to submit fingerprints under
subparagraph (A).
(2) Database search.--The Secretary of Homeland Security
shall ensure that a search of each database that contains
fingerprints that is maintained by an agency or department of
the United States be conducted to determine whether such
alien is ineligible for an adjustment of status under any
provision of the Immigration and Nationality Act (8 U.S.C.
1101 et seq.) on criminal, security, or related grounds.
(3) Cooperation and schedule.--The Secretary of Homeland
Security and the head of each appropriate agency or
department of the United States shall work cooperatively to
ensure that each database search required under paragraph (2)
is completed not later than 180 days after the date on which
the alien enters the United States.
(4) Administrative and judicial review.--
(A) Administrative review.--An alien who is admitted to the
United States under this section or an amendment made by this
section who is determined to be ineligible for an adjustment
of status pursuant to section 212 of the Immigration and
Nationality Act (8 U.S.C. 1182) may appeal such a
determination through the Administrative Appeals Office of
the Bureau of Citizenship and Immigration Services of the
Department of Homeland Security. The Secretary of Homeland
Security shall ensure that a determination on such appeal is
made not later than 60 days after the date on which the
appeal is filed.
(B) Judicial review.--Nothing in this section, or in an
amendment made by this section, may preclude application of
section 242(a)(2)(B) of the Immigration and Nationality Act
(8 U.S.C. 1252(a)(2)(B)).
(g) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary of Homeland
Security shall report to the Committee on the Judiciary of
the Senate and the Committee on the Judiciary of the House of
Representatives on the progress of the implementation of this
section and the amendments made by this section, including--
(1) data related to the implementation of this section and
the amendments made by this section;
(2) data regarding the number of placements of females and
children who faces a credible fear of harm as referred to in
section 101(a)(27)(N) of the Immigration and Nationality Act,
as added by subsection (a); and
(3) any other information that the Secretary of Homeland
Security determines to be appropriate.
(h) Authorization of Appropriations.--There are authorized
to be appropriated such sums as may be necessary to carry out
this section and the amendments made by this section.

SEC. 2105. EXPANSION OF S VISA.

(a) Expansion of S Visa Classification.--Section
101(a)(15)(S) of the Immigration and Nationality Act (8
U.S.C. 1101(a)(15)(S)) is amended--
(1) in clause (i)--
(A) by striking ``Attorney General'' each place that term
appears and inserting ``Secretary of Homeland Security''; and
(B) by striking ``or'' at the end; and
(2) in clause (ii)--
(A) by striking ``Attorney General'' and inserting
``Secretary of Homeland Security''; and
(B) by striking ``1956,'' and all that follows through
``the alien;'' and inserting the following: ``1956; or
``(iii) who the Secretary of Homeland Security and the
Secretary of State, in consultation with the Director of
Central Intelligence, jointly determine--
``(I) is in possession of critical reliable information
concerning the activities of governments or organizations, or
their agents, representatives, or officials, with respect to
weapons of mass destruction and related delivery systems, if
such governments or organizations are at risk of developing,
selling, or transferring such weapons or related delivery
systems; and
``(II) is willing to supply or has supplied, fully and in
good faith, information described in subclause (I) to
appropriate persons within the United States Government;

and, if the Secretary of Homeland Security (or with respect
to clause (ii), the Secretary of State and the Secretary of
Homeland Security jointly) considers it to be appropriate,
the spouse, married and unmarried sons and daughters, and
parents of an alien described in clause (i), (ii), or (iii)
if accompanying, or following to join, the alien;''.
(b) Numerical Limitation.--Section 214(k)(1) of the
Immigration and Nationality Act (8 U.S.C. 1184(k)(1)) is
amended to read as follows:
``(1) The number of aliens who may be provided a visa as
nonimmigrants under section 101(a)(15)(S) in any fiscal year
may not exceed 3,500.''.

SEC. 2106. VOLUNTEERS.

It is not a violation of clauses (ii), (iii), or (iv) of
subparagraph (A) for a religious denomination described in
section 101(a)(27)(C)(i) or an affiliated religious
organization described in section 101(a)(27)(C)(ii)(III), or
their agents or officers, to encourage, invite, call, allow,
or enable an alien, who is already present in the United
States in violation of law to carry on the violation
described in section 101(a)(27)(C)(ii)(I), as a volunteer who
is not compensated as an employee, notwithstanding the
provision of room, board, travel, and other basic living
expenses.
______

SA 182. Mrs. HUTCHISON (for herself, Mr. Cornyn, and Mr. Voinovich)
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. __. MODIFICATIONS TO THE SPECIAL FUNDING RULES OF THE
PENSION PROTECTION ACT OF 2006.

(a) Modification of the Interest Rate for the Special
Funding Rules of the Pension Protection Act of 2006.--
(1) Interest rate.--Section 402 (a)(2) of the Pension
Protection Act of 2006 is amended by inserting ``and by
using, in determining the funding target for each of the 10
plan years during such period, an interest rate of 8.25
percent (rather than the segment rates calculated on the
basis of the corporate bond yield curve)'' after ``such plan
year''.
(2) Effective date.--The amendment made by this subsection
shall take effect as if included in the provisions of the
Pension Protection Act of 2006 to which such amendment
relates.
(b) Technical Amendments.--
(1) In general.--Section 402 of the Pension Protection Act
of 2006 is amended--
(A) in subsection (d)(1), by adding at the end the
following new subparagraph:
``(D) Special rule for plans years not beginning on 1st day
of month.--For purposes of applying subparagraph (A), a plan
year beginning during the 4-day period immediately preceding
2006 or 2007 shall be treated as beginning in 2006 or 2007,
as the case may be.'', and
(B) in subsection (i)(1), by striking ``December 28, 2007''
and inserting ``January 1, 2008''.
(2) Effective date.--The amendments made by this subsection
shall take effect as if included in the provisions of the
Pension Protection Act of 2006 to which such amendments
relate. If an employer filed an election under section 402 of
the Pension Protection Act of 2006 before January 1, 2007,
the employer may, during the 60-day beginning on the date of
the enactment of this Act, modify the election to reflect the
amendments made by this subsection.

______

SA 183. Mrs. HUTCHISON (for herself, Mr. Cornyn, and Mr. Voinovich)
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 THE INTEREST RATE FOR THE SPECIAL
FUNDING RULES OF THE PENSION PROTECTION ACT OF
2006.

(a) Interest Rate.--Section 402 (a)(2) of the Pension
Protection Act of 2006 is amended by inserting ``and by
using, in determining the funding target for each of the 10
plan years during such period, an interest rate of 8.25
percent (rather than the segment rates calculated on the
basis of the corporate bond yield curve)'' after ``such plan
year''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the provisions of the
Pension Protection Act of 2006 to which such amendment
relates.

[[Page S1121]]

______

SA 184. Mrs. HUTCHISON (for herself, Mr. Cornyn, Mr. Voinovich, and
Mr. Brown) 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. __. TECHNICAL AMENDMENTS TO THE SPECIAL FUNDING RULES OF
THE PENSION PROTECTION ACT OF 2006.

(a) Technical Amendments.--Section 402 of the Pension
Protection Act of 2006 is amended--
(1) in subsection (d)(1), by adding at the end the
following new subparagraph:
``(D) Special rule for plans years not beginning on 1st day
of month.--For purposes of applying subparagraph (A), a plan
year beginning during the 4-day period immediately preceding
2006 or 2007 shall be treated as beginning in 2006 or 2007,
as the case may be.'', and
(2) in subsection (i)(1), by striking ``December 28, 2007''
and inserting ``January 1, 2008''.
(b) Effective Date.--The amendments made by this section
shall take effect as if included in the provisions of the
Pension Protection Act of 2006 to which such amendments
relate. If an employer filed an election under section 402 of
the Pension Protection Act of 2006 before January 1, 2007,
the employer may, during the 60-day beginning on the date of
the enactment of this Act, modify the election to reflect the
amendments made by this section.

______

SA 185. Mr. CHAMBLISS 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:

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, 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 186. Mr. CHAMBLISS 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, 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 187. Mr. KERRY (for himself, Ms. Snowe, Mr. Sununu, Ms. Landrieu,
and Mr. Lieberman) submitted an amendment intended to be proposed to
amendment SA 112 submitted by Mr. Sununu to the 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:

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

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

(a) In General.--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 has received
funding under subsection (b) or (l).
``(3) Application and approval criteria.--
``(A) Criteria.--Subject to subparagraph (B), the
Administrator shall develop and publish criteria for the
consideration and approval of applications by nonprofit
organizations under this subsection.
``(B) Contents.--Except as otherwise provided in this
subsection, the conditions for participation in the grant
program under this subsection shall be the same as the
conditions for participation in the program under subsection
(l), as in effect on the date of enactment of this Act.
``(C) 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 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 or subsection (l) priority
over first-time applications under subsection (b).
``(5) Renewal.--
``(A) In general.--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.
``(B) Unlimited renewals.--There shall be no limitation on
the number of times a grant may be renewed under subparagraph
(A).
``(n) Privacy Requirements.--
``(1) In general.--A women's business center may not
disclose the name, address, or telephone number of any
individual or small business concern receiving assistance
under this section without the consent of such individual or
small business concern, unless--
``(A) the Administrator is ordered to make such a
disclosure by a court in any civil or criminal enforcement
action initiated by a Federal or State agency; or
``(B) the Administrator considers such a disclosure to be
necessary for the purpose of conducting a financial audit of
a women's business center, but a disclosure under this
subparagraph shall be limited to the information necessary
for such audit.
``(2) Administration use of information.--This subsection
shall not--
``(A) restrict Administration access to program activity
data; or
``(B) prevent the Administration from using client
information (other than the information described in
subparagraph (A)) to conduct client surveys.
``(3) Regulations.--The Administrator shall issue
regulations to establish standards for requiring disclosures
during a financial audit under paragraph (1)(B).''.
(b) Repeal.--Section 29(l) of the Small Business Act (15
U.S.C. 656(l)) is repealed effective October 1 of the first
full fiscal year after the date of enactment of this Act.
(c) Transitional Rule.--Notwithstanding any other provision
of law, a grant or cooperative agreement that was awarded
under subsection (l) of section 29 of the Small Business Act
(15 U.S.C. 656), on or before the day before the date
described in subsection (b) of this section, shall remain in
full force and effect under the terms, and for the duration,
of such grant or agreement.
______

SA 188. Mr. OBAMA 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:

On page 15, line 3, strike ``2001.''.'' and insert ``2001,
or
``(iii) receiving services for the homeless (as defined in
section 103(a) of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11302(a)) through the Department of Veterans
Affairs, the Department of Housing and Urban Development, or
grant recipients of either at anytime during the 12-month
period ending on the hiring date.''.
______

SA 189. Mr. SESSIONS submitted an amendment intended to be proposed
to amendment SA 141 submitted by Mr. Sessions 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:

On page 3, line 21, insert ``not'' after ``and''.
______

SA 190. Mr. SESSIONS submitted an amendment intended to be proposed
to amendment SA 142 submitted by Mr. Sessions and intended to be
proposed

[[Page S1122]]

to the 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:

On page 3, line 21, insert ``not'' after ``and''.
______

SA 191. Ms. COLLINS (for herself and Mr. Warner) 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. ___. EXPANSION OF ABOVE-THE-LINE DEDUCTION FOR CERTAIN
EXPENSES OF ELEMENTARY AND SECONDARY SCHOOL
TEACHERS.

(a) In General.--Subparagraph (D) of section 62(a)(2)
(relating to certain trade and business deductions of
employees) is amended to read as follows:
``(D) Certain expenses of elementary and secondary school
teachers.--The deductions allowed by section 162 which
consist of expenses, not in excess of $400, paid or incurred
by an eligible educator--
``(i) by reason of the participation of the educator in
professional development courses related to the curriculum
and academic subjects in which the educator provides
instruction or to the students for which the educator
provides instruction, and
``(ii) in connection with books, supplies (other than
nonathletic supplies for courses of instruction in health or
physical education), computer equipment (including related
software and services) and other equipment, and supplementary
materials used by the eligible educator in the classroom.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2006.

______

SA 192. Ms. LANDRIEU 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:

On page 15, after line 24, insert the following:

SEC. 205. EXTENSION OF WORK OPPORTUNITY TAX CREDIT FOR
HURRICANE KATRINA EMPLOYEES HIRED BY SMALL
BUSINESSES.

(a) In General.--Section 201(b)(1) of the Katrina Emergency
Tax Relief Act of 2005 (Public Law 109-73) is amended by
striking ``who is hired during the 2-year period'' and all
that follows and inserting ``who--
``(A) is hired during the 2-year period beginning on such
date for a position the principal place of employment which
is located in the core disaster area, or
``(B) is hired--
``(i) during the 3-year period beginning on such date for a
position the principal place of employment which is located
in the core disaster area, and
``(ii) by an employer who has no more than 100 employees on
the date such individual is hired, and''.
(b) Effective Date.--The amendment made by this section
take effect as if included in section 201 of the Katrina
Emergency Tax Relief Act of 2005.

______

SA 193. Ms. LANDRIEU 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:

On page 4, between lines 8 and 9, insert the following:

SEC. 202. EXTENSION OF INCREASED EXPENSING FOR QUALIFIED
SECTION 179 GULF OPPORTUNITY ZONE PROPERTY.

Paragraph (2) of section 1400N(e) (relating to qualified
section 179 Gulf Opportunity Zone property) is amended--
(1) by striking ``this subsection, the term'' and inserting
``this subsection--
``(A) In general.--The term'', and
(2) by adding at the end the following new subparagraph:
``(B) Extension for certain property.--In the case of
property substantially all of the use of which is in one or
more specified portions of the GO Zone (as defined by
subsection (d)(6)), such term shall include section 179
property (as so defined) which is described in subsection
(d)(2), determined--
``(i) without regard to subsection (d)(6), and
``(ii) by substituting `2008' for `2007' in subparagraph
(A)(v) thereof.''.

______

SA 194. Ms. LANDRIEU 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. __. REDUCTION IN INCOME TAX WITHHOLDING DEPOSITS TO
REFLECT FICA PAYROLL TAX CREDIT FOR CERTAIN
EMPLOYERS LOCATED IN SPECIFIED PORTIONS OF THE
GO ZONE DURING 2007.

(a) General Rule.--In the case of any applicable calendar
quarter--
(1) the aggregate amount of required income tax deposits of
an eligible employer for the calendar quarter following the
applicable calendar quarter shall be reduced by the payroll
tax credit equivalent amount for the applicable calendar
quarter, and
(2) the amount of any deduction allowable to the eligible
employer under chapter 1 of the Internal Revenue Code of 1986
for taxes paid under section 3111 of such Code with respect
to employment during the applicable calendar quarter shall be
reduced by such payroll tax credit equivalent amount.

For purposes of the Internal Revenue Code of 1986, an
eligible employer shall be treated as having paid, and an
eligible employee shall be treated as having received, any
wages or compensation deducted and withheld but not deposited
by reason of paragraph (1).
(b) Carryovers of Unused Amounts.--If the payroll tax
credit equivalent amount for any applicable calendar quarter
exceeds the required income tax deposits for the following
calendar quarter--
(1) such excess shall be added to the payroll tax credit
equivalent amount for the next applicable calendar quarter,
and
(2) in the case of the last applicable calendar quarter,
such excess shall be used to reduce required income tax
deposits for any succeeding calendar quarter until such
excess is used.
(c) Payroll Tax Credit Equivalent Amount.--For purposes of
this section--
(1) In general.--The term ``payroll tax credit equivalent
amount'' means, with respect to any applicable calendar
quarter, an amount equal to 7.65 percent of the aggregate
amount of wages or compensation--
(A) paid or incurred by the eligible employer with respect
to employment of eligible employees during the applicable
calendar quarter, and
(B) subject to the tax imposed by section 3111 of the
Internal Revenue Code of 1986.
(2) Trade or business requirement.--A rule similar to the
rule of section 51(f) of such Code shall apply for purposes
of this section.
(3) Limitation on wages subject to credit.--For purposes of
this subsection, only wages and compensation of an eligible
employee in an applicable calendar quarter, when added to
such wages and compensation for any preceding applicable
calendar quarter, not exceeding $15,000 shall be taken into
account with respect to such employee.
(d) Eligible Employer; Eligible Employee.--For purposes of
this section--
(1) Eligible employer.--
(A) In general.--The term ``eligible employer'' means any
employer which conducts an active trade or business in any
specified portion of the GO Zone and employs not more than
100 full-time employees on the date of the enactment of this
Act.
(B) Specified portion of the go zone.--The term ``specified
portion of the GO Zone'' means any portion of the GO Zone (as
defined in section 1400M(1) of the Internal Revenue Code of
1986) which is in any county or parish which is identified by
the Secretary of the Treasury as being a county or parish in
which hurricanes occurring during 2005 damaged (in the
aggregate) more than 60 percent of the housing units in such
county or parish which were occupied (determined according to
the 2000 Census).
(2) Eligible employee.--The term ``eligible employee''
means with respect to an eligible employer an employee whose
principal place of employment with such eligible employer is
in a specified portion of the GO Zone. Such term shall not
include an employee described in section 401(c)(1)(A).
(e) Applicable Calendar Quarter.--For purposes of this
section, the term ``applicable calendar quarter'' means any
of the 4 calendar quarters beginning in 2007.
(f) Special Rules.--For purposes of this section--
(1) Required income tax deposits.--The term ``required
income tax deposits'' means deposits an eligible employer is
required to make under section 6302 of the Internal Revenue
Code of 1986 of taxes such employer is required to deduct and
withhold under section 3402 of such Code.
(2) Aggregation rules.--Rules similar to the rules of
subsections (a) and (b) of section 52 of the Internal Revenue
Code of 1986 shall apply.
(3) Employers not on quarterly system.--The Secretary of
the Treasury shall prescribe rules for the application of
this section in the case of an eligible employer whose
required income tax deposits are not made on a quarterly
basis.
(4) Adjustments for certain acquisitions, etc.--Under
regulations prescribed by the Secretary--
(A) Acquisitions.--If, after December 31, 2006, an employer
acquires the major portion of a trade or business of another
person (hereafter in this paragraph referred to as the
``predecessor'') or the major portion of a separate unit of a
trade or business of a predecessor, then, for purposes of
applying this section for any calendar quarter ending after
such acquisition, the amount of wages or compensation deemed
paid by the employer during periods before such acquisition
shall

[[Page S1123]]

be increased by so much of such wages or compensation paid by
the predecessor with respect to the acquired trade or
business as is attributable to the portion of such trade or
business acquired by the employer.
(B) Dispositions.--If, after December 31, 2006--
(i) an employer disposes of the major portion of any trade
or business of the employer or the major portion of a
separate unit of a trade or business of the employer in a
transaction to which paragraph (1) applies, and
(ii) the employer furnishes the acquiring person such
information as is necessary for the application of
subparagraph (A),

then, for purposes of applying this section for any calendar
quarter ending after such disposition, the amount of wages or
compensation deemed paid by the employer during periods
before such disposition shall be decreased by so much of such
wages as is attributable to such trade or business or
separate unit.
(5) Other rules.--
(A) Government employers.--This section shall not apply if
the employer is the Government of the United States, the
government of any State or political subdivision of the
State, or any agency or instrumentality of any such
government.
(B) Treatment of other entities.--Rules similar to the
rules of subsections (d) and (e) of section 52 of such Code
shall apply for purposes of this section.
______

SA 195. Mr. BURR (for himself, Mr. DeMint, 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; which was ordered to lie on the table; as follows:

At the end of section 102, add the following:
(c) Exception in the Case of Provision of Health
Benefits.--Notwithstanding the amendment made by subsection
(a), an employer to which such amendment applies shall have
the option to--
(1) increase the minimum wage paid to employees as required
under such amendment; or
(2) provide such employees with health care benefits that
are equal (in terms of the monetary amount expended by the
employer for such benefits) to the monetary amount by which
the minimum wage is to be increased pursuant to such
amendment.
______

SA 196. 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:

Strike section 102 of the amendment and insert the
following:

SEC. 102. MINIMUM WAGE FOR TERRITORIES AND POSSESSIONS.

(a) Minimum Wage for Territories and Possessions.--The Fair
Labor Standards Act of 1938 (29 U.S.C. 201 et seq.) is
amended--
(1) in section 6, by adding at the end the following:
``(h) Territories and Possessions.--
``(1) In general.--Subject to subsection (a)(2), each
employer of an employee employed in any territory or
possession of the United States shall pay to such employee,
in lieu of the rate or rates provided by subsection (a)(1) or
(b), not less than the rate calculated under subsection (b)
as of the day after the date that an increase in the minimum
wage rate under subsection (a)(1) takes effect.
``(2) Minimum wage rate.--The applicable rate described in
paragraph (1) shall be the greater of--
``(A) the minimum wage rate in effect in the territory or
possession in which the employee is employed on the date of
enactment of the Fair Minimum Wage Act of 2007; or
``(B) the product of--
``(i) the rate in effect under subsection (a)(1);
multiplied by
``(ii) the quotient of--

``(I) the average annual wage in the territory or
possession, as determined by the Social Security
Administration based on the W-2 forms furnished under section
6051 of the Internal Revenue Code of 1986 to individuals
employed in the territory or possession for the third prior
calendar year; divided by
``(II) the average annual wage in the United States (not
including the territories or possessions of the United
States, but including the District of Columbia), as
determined by the Social Security Administration based on the
W-2 forms furnished under section 6051 of the Internal
Revenue Code of 1986 to individuals employed in the United
States (as so defined) for the third prior calendar year.

``(3) Rule of construction.--Nothing in this subsection
shall be construed to prohibit any territory or possession of
the United States from establishing a minimum wage higher
than the minimum wage required under this subsection.''; and
(2) in section 13(f), by inserting ``the Northern Mariana
Islands,'' after ``Guam,''.
(b) Abolishing the Special Wage Board for American Samoa.--
The Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.)
is amended--
(1) by repealing sections 5, 8, and 10;
(2) in section 6(a)--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) and (5) as paragraphs
(3) and (4), respectively; and
(3) in section 13--
(A) by striking subsection (e); and
(B) by redesignating subsections (f) (as amended in
subsection (a)(2)) and (g) as subsections (e) and (f),
respectively.
(c) Conforming Amendments.--The Fair Labor Standards Act of
1938 (29 U.S.C. 201 et seq.) is amended--
(1) in section 6--
(A) in subsection (b), by striking ``(a)(5)'' and inserting
``(a)(4)''; and
(B) in paragraphs (1) and (2) of subsection (e), by
striking ``and (f)'' each place the term occurs and inserting
``and (e)'';
(2) in section 13(c)(1)(a), by striking ``6(a)(5)'' and
inserting ``6(a)(4)'';
(3) in section 14(b)(2), by striking ``6(a)(5)'' and
inserting ``6(a)(4)'';
(4) in section 16(d), by striking ``13(f)'' and inserting
``13(e)''; and
(5) in section 18(b), by striking ``13(f)'' and inserting
``13(e)''.
______

SA 197. 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:

Strike section 102 of the amendment and insert the
following:

SEC. 102. MINIMUM WAGE FOR TERRITORIES AND POSSESSIONS.

(a) In General.--Notwithstanding any provision of the Fair
Labor Standards Act of 1938 (29 U.S.C. 201 et seq.), section
6 of such Act shall apply to employees employed in each
territory or possession of the United States in the same
manner as such section applies to employees employed in the
several States of the United States, except that in lieu of
the rate or rates provided by subsection (a)(1) or (b) of
section 6 of such Act, the applicable rate for such employees
shall be the rate calculated under subsection (b) as of the
day after the date that an increase in the minimum wage rate
under such section 6(a)(1) takes effect.
(b) Minimum Wage Rate.--The applicable rate for employees
employed in each territory or possession of the United States
shall be the greater of--
(1) the minimum wage rate in effect in the territory or
possession on the date of enactment of this Act; or
(2) the product of--
(A) the rate in effect under section 6(a)(1) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)); multiplied
by
(B) the quotient of--
(i) the average annual wage in the territory or possession,
as determined by the Social Security Administration based on
the W-2 forms furnished under section 6051 of the Internal
Revenue Code of 1986 to individuals employed in the territory
or possession for the third prior calendar year; and
(ii) the average annual wage in the United States (not
including the territories or possessions of the United
States, but including the District of Columbia), as
determined by the Social Security Administration based on the
W-2 forms furnished under section 6051 of the Internal
Revenue Code of 1986 to individuals employed in the United
States (as so defined) for the third prior calendar year.
(c) Rule of Construction.--Nothing in this section shall be
construed to prohibit any territory or possession of the
United States from establishing a minimum wage higher than
the minimum wage required under this section.

______

SA 198. 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; which was ordered to lie on the
table; as follows:

At the appropriate place insert the following:

SEC. ___. DESIGNATION OF OVERPAYMENTS TO SUPPORT RESERVISTS
AND NATIONAL GUARD MEMBERS.

(a) Designation.--Subchapter A of chapter 61 is amended by
adding at the end the following new part:

``PART IX--DESIGNATION OF OVERPAYMENTS TO RESERVE INCOME REPLACEMENT
PROGRAM

``Sec. 6097. Designation.

``SEC. 6097. DESIGNATION.

``(a) In General.--In the case of an individual, with
respect to each taxpayer's return for the taxable year of the
tax imposed by chapter 1, such taxpayer may designate that a
specified portion (not less than $1) of any overpayment of
tax for such taxable year be paid over to the Reserve Income
Replacement Program (RIRP) under section 910 of title 37,
United States Code.
``(b) Manner and Time of Designation.--A designation under
subsection (a) may be made with respect to any taxable year
only at the time of filing the return of the tax imposed by
chapter 1 for such taxable year. Such designation shall be
made in such manner as the Secretary prescribes by
regulations except that such designation shall be

[[Page S1124]]

made either on the first page of the return or on the page
bearing the taxpayer's signature.
``(c) Overpayments Treated as Refunded.--For purposes of
this title, any portion of an overpayment of tax designated
under subsection (a) shall be treated as--
``(1) being refunded to the taxpayer as of the last date
prescribed for filing the return of tax imposed by chapter 1
(determined without regard to extensions) or, if later, the
date the return is filed, and
``(2) a contribution made by such taxpayer on such date to
the United States.''.
(b) Transfers to Reserve Income Replacement Program.--The
Secretary of the Treasury shall, from time to time, transfer
to the Reserve Income Replacement Program (RIRP) under
section 910 of title 37, United States Code, the amounts
designated under section 6097 of the Internal Revenue Code of
1986, under regulations jointly prescribed by the Secretary
of the Treasury and the Secretary of Defense.
(c) Clerical Amendment.--The table of parts for subchapter
A of chapter 61 is amended by adding at the end the following
new item:

``Part IX. Designation of Overpayments to Reserve Income Replacement
Program.''.

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

______

SA 199. Mr. VITTER 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:

TITLE __--SMALL BUSINESS HEALTH COVERAGE

SEC. _01. SHORT TITLE; PURPOSES.

(a) Short Title.--This title may be cited as the ``Health
Insurance Marketplace Modernization and Affordability Act of
2007''.
(b) Purposes.--It is the purpose of this Act to--
(1) make more affordable health insurance options available
to small businesses, working families, and all Americans;
(2) assure effective State regulatory protection of the
interests of health insurance consumers; and
(3) create a more efficient and affordable health insurance
marketplace through collaborative development of uniform
regulatory standards.

Subtitle A--Small Business Health Plans

SEC. _11. RULES GOVERNING SMALL BUSINESS 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 SMALL BUSINESS HEALTH PLANS

``SEC. 801. SMALL BUSINESS HEALTH PLANS.

``(a) In General.--For purposes of this part, the term
`small business health plan' means a fully insured 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 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;
``(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; and
``(4) does not condition membership on the basis of a
minimum group size.
Any sponsor consisting of an association of entities which
meet the requirements of paragraphs (1), (2), (3), and (4)
shall be deemed to be a sponsor described in this subsection.

``SEC. 802. CERTIFICATION OF SMALL BUSINESS HEALTH PLANS.

``(a) In General.--Not later than 6 months after the date
of enactment of this part, the applicable authority shall
prescribe by interim final rule a procedure under which the
applicable authority shall certify small business health
plans which apply for certification as meeting the
requirements of this part.
``(b) Requirements Applicable to Certified Plans.--A small
business 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).
``(c) Requirements for Continued Certification.--The
applicable authority may provide by regulation for continued
certification of small business health plans under this part.
Such regulation shall provide for the revocation of a
certification if the applicable authority finds that the
small business health plan involved is failing to comply with
the requirements of this part.
``(d) Expedited and Deemed Certification.--
``(1) In general.--If the Secretary fails to act on an
application for certification under this section within 90
days of receipt of such application, the applying small
business health plan shall be deemed certified until such
time as the Secretary may deny for cause the application for
certification.
``(2) Civil penalty.--The Secretary may assess a civil
penalty against the board of trustees and plan sponsor
(jointly and severally) of a small business health plan that
is deemed certified under paragraph (1) of up to $500,000 in
the event the Secretary determines that the application for
certification of such small business health plan was
willfully or with gross negligence incomplete or inaccurate.

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

``(a) Sponsor.--The requirements of this subsection are met
with respect to a small business 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 a small business health
plan if the following requirements are met:
``(1) Fiscal control.--The plan is operated, pursuant to a
plan document, by a board of trustees which pursuant to a
trust agreement 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 a small business health plan which is in existence on the
date of the enactment of the Health Insurance Marketplace
Modernization and Affordability Act of 2006.
``(B) Sole authority.--The board has sole authority under
the plan to approve applications for participation in the
plan and to contract with insurers.
``(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 a small business
health plan if, under the terms of the plan--

[[Page S1125]]

``(1) each participating employer must be--
``(A) a member of the sponsor;
``(B) the sponsor; or
``(C) an affiliated member of the sponsor, 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 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 dependents of individuals described in
subparagraph (A).
``(b) Individual Market Unaffected.--The requirements of
this subsection are met with respect to a small business
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.
``(c) Prohibition of Discrimination Against Employers and
Employees Eligible to Participate.--The requirements of this
subsection are met with respect to a small business 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) information regarding all coverage options available
under the plan is made readily available to any employer
eligible to participate; 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 a small business health plan if the following
requirements are met:
``(1) Contents of governing instruments.--
``(A) In general.--The instruments governing the plan
include a written instrument, meeting the requirements of an
instrument required under section 402(a)(1), which--
``(i) 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)); and
``(ii) provides that the sponsor of the plan is to serve as
plan sponsor (referred to in section 3(16)(B)).
``(B) Description of material provisions.--The terms of the
health insurance coverage (including the terms of any
individual certificates that may be offered to individuals in
connection with such coverage) describe the material benefit
and rating, and other provisions set forth in this section
and such material provisions are included in the summary plan
description.
``(2) Contribution rates must be nondiscriminatory.--
``(A) In general.--The contribution rates for any
participating small employer shall not vary on the basis of
any health status-related factor in relation to employees of
such employer or their beneficiaries and shall not vary on
the basis of the type of business or industry in which such
employer is engaged.
``(B) Effect of title.--Nothing in this title or any other
provision of law shall be construed to preclude a health
insurance issuer offering health insurance coverage in
connection with a small business health plan, and at the
request of such small business health plan, from--
``(i) setting contribution rates for the small business
health plan based on the claims experience of the plan so
long as any variation in such rates complies with the
requirements of clause (ii), except that small business
health plans shall not be subject to paragraphs (1)(A) and
(3) of section 2911(b) of the Public Health Service Act; or
``(ii) varying contribution rates for participating
employers in a small business health plan in a State to the
extent that such rates could vary using the same methodology
employed in such State for regulating small group premium
rates, subject to the terms of part I of subtitle A of title
XXIX of the Public Health Service Act (relating to rating
requirements), as added by title II of the Health Insurance
Marketplace Modernization and Affordability Act of 2006.
``(3) Exceptions regarding self-employed and large
employers.--
``(A) Self employed.--
``(i) In general.--Small business health plans with
participating employers who are self-employed individuals
(and their dependents) shall enroll such self-employed
participating employers in accordance with rating rules that
do not violate the rating rules for self-employed individuals
in the State in which such self-employed participating
employers are located.
``(ii) Guarantee issue.--Small business health plans with
participating employers who are self-employed individuals
(and their dependents) may decline to guarantee issue to such
participating employers in States in which guarantee issue is
not otherwise required for the self-employed in that State.
``(B) Large employers.--Small business health plans with
participating employers that are larger than small employers
(as defined in section 808(a)(10)) shall enroll such large
participating employers in accordance with rating rules that
do not violate the rating rules for large employers in the
State in which such large participating employers are
located.
``(4) 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 Small Business Health Plans to Design
Benefit Options.--Nothing in this part or any provision of
State law (as defined in section 514(c)(1)) shall be
construed to preclude a small business health plan or a
health insurance issuer offering health insurance coverage in
connection with a small business health plan from exercising
its sole discretion in selecting the specific benefits and
services consisting of medical care to be included as
benefits under such plan or coverage, except that such
benefits and services must meet the terms and specifications
of part II of subtitle A of title XXIX of the Public Health
Service Act (relating to lower cost plans), as added by title
II of the Health Insurance Marketplace Modernization and
Affordability Act of 2006.
``(c) Domicile and Non-Domicile States.--
``(1) Domicile state.--Coverage shall be issued to a small
business health plan in the State in which the sponsor's
principal place of business is located.
``(2) Non-domicile states.--With respect to a State (other
than the domicile State) in which participating employers of
a small business health plan are located but in which the
insurer of the small business health plan in the domicile
State is not yet licensed, the following shall apply:
``(A) Temporary preemption.--If, upon the expiration of the
90-day period following the submission of a licensure
application by such insurer (that includes a certified copy
of an approved licensure application as submitted by such
insurer in the domicile State) to such State, such State has
not approved or denied such application, such State's health
insurance licensure laws shall be temporarily preempted and
the insurer shall be permitted to operate in such State,
subject to the following terms:
``(i) Application of non-domicile state law.--Except with
respect to licensure and with respect to the terms of
subtitle A of title XXIX of the Public Health Service Act
(relating to rating and benefits as added by the Health
Insurance Marketplace Modernization and Affordability Act of
2006), the laws and authority of the non-domicile State shall
remain in full force and effect.
``(ii) Revocation of preemption.--The preemption of a non-
domicile State's health insurance licensure laws pursuant to
this subparagraph, shall be terminated upon the occurrence of
either of the following:

``(I) Approval or denial of application.--The approval of
denial of an insurer's licensure application, following the
laws and regulations of the non-domicile State with respect
to licensure.
``(II) Determination of material violation.--A
determination by a non-domicile State that an insurer
operating in a non-domicile State pursuant to the preemption
provided for in this subparagraph is in material violation of
the insurance laws (other than licensure and with respect to
the terms of subtitle A of title XXIX of the Public Health
Service Act (relating to rating and benefits added by the
Health Insurance Marketplace Modernization and Affordability
Act of 2006)) of such State.

``(B) No prohibition on promotion.--Nothing in this
paragraph shall be construed to prohibit a small business
health plan or an insurer from promoting coverage prior to
the expiration of the 90-day period provided for in
subparagraph (A), except that no enrollment or collection of
contributions shall occur before the expiration of such 90-
day period.
``(C) Licensure.--Except with respect to the application of
the temporary preemption provision of this paragraph, nothing
in this part shall be construed to limit the requirement that
insurers issuing coverage to small business health plans
shall be licensed in each State in which the small business
health plans operate.
``(D) Servicing by licensed insurers.--Notwithstanding
subparagraph (C), the requirements of this subsection may
also be satisfied if the participating employers of a small
business health plan are serviced by a licensed insurer in
that State, even where such insurer is not the insurer of
such small business health plan in the State in which such
small business health plan is domiciled.

``SEC. 806. REQUIREMENTS FOR APPLICATION AND RELATED
REQUIREMENTS.

``(a) Filing Fee.--Under the procedure prescribed pursuant
to section 802(a), a small

[[Page S1126]]

business 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 small business 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, health insurance issuer, and
contract administrators and other service providers.
``(c) Filing Notice of Certification With States.--A
certification granted under this part to a small business
health plan shall not be effective unless written notice of
such certification is filed with the applicable State
authority of each State in which the small business health
plans operate.
``(d) Notice of Material Changes.--In the case of any small
business 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.

``SEC. 807. NOTICE REQUIREMENTS FOR VOLUNTARY TERMINATION.

``A small business 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. 808. DEFINITIONS AND RULES OF CONSTRUCTION.

``(a) Definitions.--For purposes of this part--
``(1) 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, or
``(B) in the case of a sponsor with members which consist
of associations, a person who is a member or employee of any
such association and elects an affiliated status with the
sponsor.
``(2) Applicable authority.--The term `applicable
authority' means the Secretary of Labor, except that, in
connection with any exercise of the Secretary's authority
with respect to which the Secretary is required under section
506(d) to consult with a State, such term means the
Secretary, in consultation with such State.
``(3) 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.
``(4) Group health plan.--The term `group health plan' has
the meaning provided in section 733(a)(1) (after applying
subsection (b) of this section).
``(5) Health insurance coverage.--The term `health
insurance coverage' has the meaning provided in section
733(b)(1), except that such term shall not include excepted
benefits (as defined in section 733(c)).
``(6) Health insurance issuer.--The term `health insurance
issuer' has the meaning provided in section 733(b)(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) Medical care.--The term `medical care' has the
meaning provided in section 733(a)(2).
``(9) Participating employer.--The term `participating
employer' means, in connection with a small business 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.
``(10) Small employer.--The term `small employer' means, in
connection with a group health plan with respect to a plan
year, a small employer as defined in section 2791(e)(4).
``(11) Trade association and professional association.--The
terms `trade association' and `professional association' mean
an entity that meets the requirements of section 1.501(c)(6)-
1 of title 26, Code of Federal Regulations (as in effect on
the date of enactment of this Act).
``(b) Rule of Construction.--For purposes of determining
whether a plan, fund, or program is an employee welfare
benefit plan which is a small business 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--
``(1) 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
``(2) 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.
``(c) Renewal.--Notwithstanding any provision of law to the
contrary, a participating employer in a small business health
plan shall not be deemed to be a plan sponsor in applying
requirements relating to coverage renewal.
``(d) Health Savings Accounts.--Nothing in this part shall
be construed to inhibit the development of health savings
accounts pursuant to section 223 of the Internal Revenue Code
of 1986.''.
(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 a small
business 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 a health
insurance issuer from offering health insurance coverage in
connection with a small business health plan which is
certified under part 8.
``(2) In any case in which health insurance coverage of any
policy type is offered under a small business 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 establish
rating and benefit requirements that would otherwise apply to
such coverage, provided the requirements of subtitle A of
title XXIX of the Public Health Service Act (as added by
title II of the Health Insurance Marketplace Modernization
and Affordability Act of 2006) (concerning health plan rating
and benefits) are met.''.
(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 a small business health plan under part 8.''.

[[Page S1127]]

(d) Savings Clause.--Section 731(c) of such Act is amended
by inserting ``or part 8'' after ``this part''.
(e) 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 Small Business Health Plans

``801. Small business health plans.
``802. Certification of small business health plans.
``803. Requirements relating to sponsors and boards of trustees.
``804. Participation and coverage requirements.
``805. Other requirements relating to plan documents, contribution
rates, and benefit options.
``806. Requirements for application and related requirements.
``807. Notice requirements for voluntary termination.
``808. Definitions and rules of construction.''.

SEC. _12. 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 Small
Business Health Plans.--
``(1) Agreements with states.--The Secretary shall consult
with the State recognized under paragraph (2) with respect to
a small business 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 small business
health plans under part 8 in accordance with regulations of
the Secretary applicable to certification under part 8.
``(2) Recognition of domicile state.--In carrying out
paragraph (1), the Secretary shall ensure that only one State
will be recognized, with respect to any particular small
business health plan, as the State with which consultation is
required. In carrying out this paragraph such State shall be
the domicile State, as defined in section 805(c).''.

SEC. _13. EFFECTIVE DATE AND TRANSITIONAL AND OTHER RULES.

(a) Effective Date.--The amendments made by this subtitle
shall take effect 12 months 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 subtitle within 6 months 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
808(a)(2) 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
trustees 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 or at such time that the arrangement provides
coverage to participants and beneficiaries in any State other
than the States in which coverage is provided on such date of
enactment.
(2) Definitions.--For purposes of this subsection, the
terms ``group health plan'', ``medical care'', and
``participating employer'' shall have the meanings provided
in section 808 of the Employee Retirement Income Security Act
of 1974, except that the reference in paragraph (7) of such
section to an ``small business health plan'' shall be deemed
a reference to an arrangement referred to in this subsection.

Subtitle B--Market Relief

SEC. _021. MARKET RELIEF.

The Public Health Service Act (42 U.S.C. 201 et seq.) is
amended by adding at the end the following:

``TITLE XXIX--HEALTH CARE INSURANCE MARKETPLACE MODERNIZATION

``SEC. 2901. GENERAL INSURANCE DEFINITIONS.

``In this title, the terms `health insurance coverage',
`health insurance issuer', `group health plan', and
`individual health insurance' shall have the meanings given
such terms in section 2791.

``Subtitle A--Market Relief

``PART I--RATING REQUIREMENTS

``SEC. 2911. DEFINITIONS.

``(a) General Definitions.--In this part:
``(1) Adopting state.--The term `adopting State' means a
State that, with respect to the small group market, has
enacted either the Model Small Group Rating Rules or, if
applicable to such State, the Transitional Model Small Group
Rating Rules, each in their entirety and as the exclusive
laws of the State that relate to rating in the small group
insurance market.
``(2) 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
insurance laws of such State.
``(3) Base premium rate.--The term `base premium rate'
means, for each class of business with respect to a rating
period, the lowest premium rate charged or that could have
been charged under a rating system for that class of business
by the small employer carrier to small employers with similar
case characteristics for health benefit plans with the same
or similar coverage
``(4) Eligible insurer.--The term `eligible insurer' means
a health insurance issuer that is licensed in a State and
that--
``(A) notifies the Secretary, not later than 30 days prior
to the offering of coverage described in this subparagraph,
that the issuer intends to offer health insurance coverage
consistent with the Model Small Group Rating Rules or, as
applicable, transitional small group rating rules in a State;
``(B) notifies the insurance department of a nonadopting
State (or other State agency), not later than 30 days prior
to the offering of coverage described in this subparagraph,
that the issuer intends to offer small group health insurance
coverage in that State consistent with the Model Small Group
Rating Rules, and provides with such notice a copy of any
insurance policy that it intends to offer in the State, its
most recent annual and quarterly financial reports, and any
other information required to be filed with the insurance
department of the State (or other State agency); and
``(C) includes in the terms of the health insurance
coverage offered in nonadopting States (including in the
terms of any individual certificates that may be offered to
individuals in connection with such group health coverage)
and filed with the State pursuant to subparagraph (B), a
description in the insurer's contract of the Model Small
Group Rating Rules and an affirmation that such Rules are
included in the terms of such contract.
``(5) Health insurance coverage.--The term `health
insurance coverage' means any coverage issued in the small
group health insurance market, except that such term shall
not include excepted benefits (as defined in section
2791(c)).
``(6) Index rate.--The term `index rate' means for each
class of business with respect to the rating period for small
employers with similar case characteristics, the arithmetic
average of the applicable base premium rate and the
corresponding highest premium rate.
``(7)  Model small group rating rules.--The term ` Model
Small Group Rating Rules' means the rules set forth in
subsection (b).
``(8) Nonadopting state.--The term `nonadopting State'
means a State that is not an adopting State.
``(9) Small group insurance market.--The term `small group
insurance market' shall have the meaning given the term
`small group market' in section 2791(e)(5).
``(10) State law.--The term `State law' means all laws,
decisions, rules, regulations, or other State actions
(including actions by a State agency) having the effect of
law, of any State.
``(b) Definition Relating to Model Small Group Rating
Rules.--The term `Model Small Group Rating Rules' means
adapted rating rules drawn from the Adopted Small Employer
Health Insurance Availability Model Act of 1993 of the
National Association of Insurance Commissioners consisting of
the following:
``(1) Premium rates.--Premium rates for health benefit
plans to which this title applies shall be subject to the
following provisions relating to premiums:
``(A) Index rate.--The index rate for a rating period for
any class of business shall not exceed the index rate for any
other class of business by more than 20 percent.
``(B) Class of businesses.--With respect to a class of
business, the premium rates charged during a rating period to
small employers with similar case characteristics for the
same or similar coverage or the rates that could be charged
to such employers under the rating system for that class of
business, shall not vary from the index rate by more than 25
percent of the index rate under subparagraph (A).
``(C) Increases for new rating periods.--The percentage
increase in the premium rate charged to a small employer for
a new rating

[[Page S1128]]

period may not exceed the sum of the following:
``(i) The percentage change in the new business premium
rate measured from the first day of the prior rating period
to the first day of the new rating period. In the case of a
health benefit plan into which the small employer carrier is
no longer enrolling new small employers, the small employer
carrier shall use the percentage change in the base premium
rate, except that such change shall not exceed, on a
percentage basis, the change in the new business premium rate
for the most similar health benefit plan into which the small
employer carrier is actively enrolling new small employers.
``(ii) Any adjustment, not to exceed 15 percent annually
and adjusted pro rata for rating periods of less then 1 year,
due to the claim experience, health status or duration of
coverage of the employees or dependents of the small employer
as determined from the small employer carrier's rate manual
for the class of business involved.
``(iii) Any adjustment due to change in coverage or change
in the case characteristics of the small employer as
determined from the small employer carrier's rate manual for
the class of business.
``(D) Uniform application of adjustments.--Adjustments in
premium rates for claim experience, health status, or
duration of coverage shall not be charged to individual
employees or dependents. Any such adjustment shall be applied
uniformly to the rates charged for all employees and
dependents of the small employer.
``(E) Use of industry as a case characteristic.--A small
employer carrier may utilize industry as a case
characteristic in establishing premium rates, so long as the
highest rate factor associated with any industry
classification does not exceed the lowest rate factor
associated with any industry classification by more than 15
percent.
``(F) Consistent application of factors.--Small employer
carriers shall apply rating factors, including case
characteristics, consistently with respect to all small
employers in a class of business. Rating factors shall
produce premiums for identical groups which differ only by
the amounts attributable to plan design and do not reflect
differences due to the nature of the groups assumed to select
particular health benefit plans.
``(G) Treatment of plans as having same rating period.--A
small employer carrier shall treat all health benefit plans
issued or renewed in the same calendar month as having the
same rating period.
``(H) Restricted network provisions.--For purposes of this
subsection, a health benefit plan that contains a restricted
network provision shall not be considered similar coverage to
a health benefit plan that does not contain a similar
provision if the restriction of benefits to network providers
results in substantial differences in claims costs.
``(I) Prohibition on use of certain case characteristics.--
The small employer carrier shall not use case characteristics
other than age, gender, industry, geographic area, family
composition, group size, and participation in wellness
programs without prior approval of the applicable State
authority.
``(J) Require compliance.--Premium rates for small business
health benefit plans shall comply with the requirements of
this subsection notwithstanding any assessments paid or
payable by a small employer carrier as required by a State's
small employer carrier reinsurance program.
``(2) Establishment of separate class of business.--Subject
to paragraph (3), a small employer carrier may establish a
separate class of business only to reflect substantial
differences in expected claims experience or administrative
costs related to the following:
``(A) The small employer carrier uses more than one type of
system for the marketing and sale of health benefit plans to
small employers.
``(B) The small employer carrier has acquired a class of
business from another small employer carrier.
``(C) The small employer carrier provides coverage to one
or more association groups that meet the requirements of this
title.
``(3) Limitation.--A small employer carrier may establish
up to 9 separate classes of business under paragraph (2),
excluding those classes of business related to association
groups under this title.
``(4) Additional groupings.--The applicable State authority
may approve the establishment of additional distinct
groupings by small employer carriers upon the submission of
an application to the applicable State authority and a
finding by the applicable State authority that such action
would enhance the efficiency and fairness of the small
employer insurance marketplace.
``(5) Limitation on transfers.--A small employer carrier
shall not transfer a small employer involuntarily into or out
of a class of business. A small employer carrier shall not
offer to transfer a small employer into or out of a class of
business unless such offer is made to transfer all small
employers in the class of business without regard to case
characteristics, claim experience, health status or duration
of coverage since issue.
``(6) Suspension of the rules.--The applicable State
authority may suspend, for a specified period, the
application of paragraph (1) to the premium rates applicable
to one or more small employers included within a class of
business of a small employer carrier for one or more rating
periods upon a filing by the small employer carrier and a
finding by the applicable State authority either that the
suspension is reasonable when considering the financial
condition of the small employer carrier or that the
suspension would enhance the efficiency and fairness of the
marketplace for small employer health insurance.

``SEC. 2912. RATING RULES.

``(a) Implementation of Model Small Group Rating Rules.--
Not later than 6 months after the enactment of this title,
the Secretary shall promulgate regulations implementing the
Model Small Group Rating Rules pursuant to section 2911(b).
``(b) Transitional Model Small Group Rating Rules.--
``(1) In general.--Not later than 6 months after the date
of enactment of this title and to the extent necessary to
provide for a graduated transition to the Model Small Group
Rating Rules, the Secretary, in consultation with the NAIC,
shall promulgate Transitional Model Small Group Rating Rules
in accordance with this subsection, which shall be applicable
with respect to certain non-adopting States for a period of
not to exceed 5 years from the date of the promulgation of
the Model Small Group Rating Rules pursuant to subsection
(a). After the expiration of such 5-year period, the
transitional model small group rating rules shall expire, and
the Model Small Group Rating Rules shall then apply with
respect to all non-adopting States pursuant to the provisions
of this part.
``(2) Premium variation during transition.--
``(A) Transition states.--During the transition period
described in paragraph (1), small group health insurance
coverage offered in a non-adopting State that had in place
premium rating band requirements or premium limits that
varied by less than 12.5 percent from the index rate within a
class of business on the date of enactment of this title,
shall not be subject to the premium variation provision of
section 2911(b)(1) of the Model Small Group Rating Rules and
shall instead be subject to the Transitional Model Small
Group Rating Rules as promulgated by the Secretary pursuant
to paragraph (1).
``(B) Non-transition states.--During the transition period
described in paragraph (1), and thereafter, small group
health insurance coverage offered in a non-adopting State
that had in place premium rating band requirements or premium
limits that varied by more than 12.5 percent from the index
rate within a class of business on the date of enactment of
this title, shall not be subject to the Transitional Model
Small Group Rating Rules as promulgated by the Secretary
pursuant to paragraph (1), and instead shall be subject to
the Model Small Group Rating Rules effective beginning with
the first plan year or calendar year following the
promulgation of such Rules, at the election of the eligible
insurer.
``(3) Transitioning of old business.--In developing the
transitional model small group rating rules under paragraph
(1), the Secretary shall, after consultation with the
National Association of Insurance Commissioners and
representatives of insurers operating in the small group
health insurance market, promulgate special transition
standards and timelines with respect to independent rating
classes for old and new business, to the extent reasonably
necessary to protect health insurance consumers and to ensure
a stable and fair transition for old and new market entrants.
``(4) Other transitional authority.--In developing the
Transitional Model Small Group Rating Rules under paragraph
(1), the Secretary shall provide for the application of the
Transitional Model Small Group Rating Rules in transition
States as the Secretary may determine necessary for a an
effective transition.
``(c) Market Re-Entry.--
``(1) In general.--Notwithstanding any other provision of
law, a health insurance issuer that has voluntarily withdrawn
from providing coverage in the small group market prior to
the date of enactment of the Health Insurance Marketplace
Modernization and Affordability Act of 2006 shall not be
excluded from re-entering such market on a date that is more
than 180 days after such date of enactment.
``(2) Termination.--The provision of this subsection shall
terminate on the date that is 24 months after the date of
enactment of the Health Insurance Marketplace Modernization
and Affordability Act of 2006.

``SEC. 2913. APPLICATION AND PREEMPTION.

``(a) Superseding of State Law.--
``(1) In general.--This part shall supersede any and all
State laws of a non-adopting State insofar as such State laws
(whether enacted prior to or after the date of enactment of
this subtitle) relate to rating in the small group insurance
market as applied to an eligible insurer, or small group
health insurance coverage issued by an eligible insurer,
including with respect to coverage issued to a small employer
through a small business health plan, in a State.
``(2) Nonadopting states.--This part shall supersede any
and all State laws of a nonadopting State insofar as such
State laws (whether enacted prior to or after the date of
enactment of this subtitle)--
``(A) prohibit an eligible insurer from offering,
marketing, or implementing small group health insurance
coverage consistent with the Model Small Group Rating Rules
or transitional model small group rating rules; or

[[Page S1129]]

``(B) have the effect of retaliating against or otherwise
punishing in any respect an eligible insurer for offering,
marketing, or implementing small group health insurance
coverage consistent with the Model Small Group Rating Rules
or transitional model small group rating rules.
``(b) Savings Clause and Construction.--
``(1) Nonapplication to adopting states.--Subsection (a)
shall not apply with respect to adopting states.
``(2) Nonapplication to certain insurers.--Subsection (a)
shall not apply with respect to insurers that do not qualify
as eligible insurers that offer small group health insurance
coverage in a nonadopting State.
``(3) Nonapplication where obtaining relief under state
law.--Subsection (a)(1) shall not supercede any State law in
a nonadopting State to the extent necessary to permit
individuals or the insurance department of the State (or
other State agency) to obtain relief under State law to
require an eligible insurer to comply with the Model Small
Group Rating Rules or transitional model small group rating
rules.
``(4) No effect on preemption.--In no case shall this part
be construed to limit or affect in any manner the preemptive
scope of sections 502 and 514 of the Employee Retirement
Income Security Act of 1974. In no case shall this part be
construed to create any cause of action under Federal or
State law or enlarge or affect any remedy available under the
Employee Retirement Income Security Act of 1974
``(c) Effective Date.--This section shall apply, at the
election of the eligible insurer, beginning in the first plan
year or the first calendar year following the issuance of the
final rules by the Secretary under the Model Small Group
Rating Rules or, as applicable, the Transitional Model Small
Group Rating Rules, but in no event earlier than the date
that is 12 months after the date of enactment of this title.

``SEC. 2914. CIVIL ACTIONS AND JURISDICTION.

``(a) In General.--The courts of the United States shall
have exclusive jurisdiction over civil actions involving the
interpretation of this part.
``(b) Actions.--An eligible insurer may bring an action in
the district courts of the United States for injunctive or
other equitable relief against any officials or agents of a
nonadopting State in connection with any conduct or action,
or proposed conduct or action, by such officials or agents
which violates, or which would if undertaken violate, section
2913.
``(c) Direct Filing in Court of Appeals.--At the election
of the eligible insurer, an action may be brought under
subsection (b) directly in the United States Court of Appeals
for the circuit in which the nonadopting State is located by
the filing of a petition for review in such Court.
``(d) Expedited Review.--
``(1) District court.--In the case of an action brought in
a district court of the United States under subsection (b),
such court shall complete such action, including the issuance
of a judgment, prior to the end of the 120-day period
beginning on the date on which such action is filed, unless
all parties to such proceeding agree to an extension of such
period.
``(2) Court of appeals.--In the case of an action brought
directly in a United States Court of Appeal under subsection
(c), or in the case of an appeal of an action brought in a
district court under subsection (b), such Court shall
complete all action on the petition, including the issuance
of a judgment, prior to the end of the 60-day period
beginning on the date on which such petition is filed with
the Court, unless all parties to such proceeding agree to an
extension of such period.
``(e) Standard of Review.--A court in an action filed under
this section, shall render a judgment based on a review of
the merits of all questions presented in such action and
shall not defer to any conduct or action, or proposed conduct
or action, of a nonadopting State.

``SEC. 2915. ONGOING REVIEW.

``Not later than 5 years after the date on which the Model
Small Group Rating Rules are issued under this part, and
every 5 years thereafter, the Secretary, in consultation with
the National Association of Insurance Commissioners, shall
prepare and submit to the appropriate committees of Congress
a report that assesses the effect of the Model Small Group
Rating Rules on access, cost, and market functioning in the
small group market. Such report may, if the Secretary, in
consultation with the National Association of Insurance
Commissioners, determines such is appropriate for improving
access, costs, and market functioning, contain legislative
proposals for recommended modification to such Model Small
Group Rating Rules.

``PART II--AFFORDABLE PLANS

``SEC. 2921. DEFINITIONS.

``In this part:
``(1) Adopting state.--The term `adopting State' means a
State that has enacted a law providing that small group and
large group health insurers in such State may offer and sell
products in accordance with the List of Required Benefits and
the Terms of Application as provided for in section 2922(b).
``(2) Eligible insurer.--The term `eligible insurer' means
a health insurance issuer that is licensed in a nonadopting
State and that--
``(A) notifies the Secretary, not later than 30 days prior
to the offering of coverage described in this subparagraph,
that the issuer intends to offer health insurance coverage
consistent with the List of Required Benefits and Terms of
Application in a nonadopting State;
``(B) notifies the insurance department of a nonadopting
State (or other applicable State agency), not later than 30
days prior to the offering of coverage described in this
subparagraph, that the issuer intends to offer health
insurance coverage in that State consistent with the List of
Required Benefits and Terms of Application, and provides with
such notice a copy of any insurance policy that it intends to
offer in the State, its most recent annual and quarterly
financial reports, and any other information required to be
filed with the insurance department of the State (or other
State agency) by the Secretary in regulations; and
``(C) includes in the terms of the health insurance
coverage offered in nonadopting States (including in the
terms of any individual certificates that may be offered to
individuals in connection with such group health coverage)
and filed with the State pursuant to subparagraph (B), a
description in the insurer's contract of the List of Required
Benefits and a description of the Terms of Application,
including a description of the benefits to be provided, and
that adherence to such standards is included as a term of
such contract.
``(3) Health insurance coverage.--The term `health
insurance coverage' means any coverage issued in the small
group or large group health insurance markets, including with
respect to small business health plans, except that such term
shall not include excepted benefits (as defined in section
2791(c)).
``(4) List of required benefits.--The term `List of
Required Benefits' means the List issued under section
2922(a).
``(5) Nonadopting state.--The term `nonadopting State'
means a State that is not an adopting State.
``(6) State law.--The term `State law' means all laws,
decisions, rules, regulations, or other State actions
(including actions by a State agency) having the effect of
law, of any State.
``(7) State provider freedom of choice law.--The term
`State provider freedom of choice law' means a State law
requiring that a health insurance issuer, with respect to
health insurance coverage, not discriminate with respect to
participation, reimbursement, or indemnification as to any
provider who is acting within the scope of the provider's
license or certification under applicable State law.
``(8) Terms of application.--The term `Terms of
Application' means terms provided under section 2922(a).

``SEC. 2922. OFFERING AFFORDABLE PLANS.

``(a) List of Required Benefits.--Not later than 3 months
after the date of enactment of this title, the Secretary, in
consultation with the National Association of Insurance
Commissioners, shall issue by interim final rule a list (to
be known as the `List of Required Benefits') of covered
benefits, services, or categories of providers that are
required to be provided by health insurance issuers, in each
of the small group and large group markets, in at least 26
States as a result of the application of State covered
benefit, service, and category of provider mandate laws. With
respect to plans sold to or through small business health
plans, the List of Required Benefits applicable to the small
group market shall apply.
``(b) Terms of Application.--
``(1) State with mandates.--With respect to a State that
has a covered benefit, service, or category of provider
mandate in effect that is covered under the List of Required
Benefits under subsection (a), such State mandate shall,
subject to paragraph (3) (concerning uniform application),
apply to a coverage plan or plan in, as applicable, the small
group or large group market or through a small business
health plan in such State.
``(2) States without mandates.--With respect to a State
that does not have a covered benefit, service, or category of
provider mandate in effect that is covered under the List of
Required Benefits under subsection (a), such mandate shall
not apply, as applicable, to a coverage plan or plan in the
small group or large group market or through a small business
health plan in such State.
``(3) Uniform application of laws.--
``(A) In general.--With respect to a State described in
paragraph (1), in applying a covered benefit, service, or
category of provider mandate that is on the List of Required
Benefits under subsection (a) the State shall permit a
coverage plan or plan offered in the small group or large
group market or through a small business health plan in such
State to apply such benefit, service, or category of provider
coverage in a manner consistent with the manner in which such
coverage is applied under one of the three most heavily
subscribed national health plans offered under the Federal
Employee Health Benefits Program under chapter 89 of title 5,
United States Code (as determined by the Secretary in
consultation with the Director of the Office of Personnel
Management), and consistent with the Publication of Benefit
Applications under subsection (c). In the event a covered
benefit, service, or category of provider appearing in the
List of Required Benefits is not offered in one of the three
most heavily subscribed national health plans offered under
the Federal Employees Health Benefits Program, such covered
benefit, service, or category of provider requirement shall
be applied in a manner consistent with the manner in which
such coverage is

[[Page S1130]]

offered in the remaining most heavily subscribed plan of the
remaining Federal Employees Health Benefits Program plans, as
determined by the Secretary, in consultation with the
Director of the Office of Personnel Management.
``(B) Exception regarding state provider freedom of choice
laws.--Notwithstanding subparagraph (A), in the event a
category of provider mandate is included in the List of
Covered Benefits, any State Provider Freedom of Choice Law
(as defined in section 2921(7)) that is in effect in any
State in which such category of provider mandate is in effect
shall not be preempted, with respect to that category of
provider, by this part.
``(c) Publication of Benefits Applications.--Not later than
3 months after the date of enactment of this title, and on
the first day of every calendar year thereafter, the
Secretary, in consultation with the Director of the Office of
Personnel Management, shall publish in the Federal Register a
description of such covered benefits, services, and
categories of providers covered in that calendar year by each
of the three most heavily subscribed nationally available
Federal Employee Health Benefits Plan options which are also
included on the List of Required Benefits.
``(d) Effective Dates.--
``(1) Small business health plans.--With respect to health
insurance provided to participating employers of small
business health plans, the requirements of this part
(concerning lower cost plans) shall apply beginning on the
date that is 12 months after the date of enactment of this
title.
``(2) Non-association coverage.--With respect to health
insurance provided to groups or individuals other than
participating employers of small business health plans, the
requirements of this part shall apply beginning on the date
that is 15 months after the date of enactment of this title.
``(e) Updating of List of Required Benefits.--Not later
than 2 years after the date on which the list of required
benefits is issued under subsection (a), and every 2 years
thereafter, the Secretary, in consultation with the National
Association of Insurance Commissioners, shall update the list
based on changes in the laws and regulations of the States.
The Secretary shall issue the updated list by regulation, and
such updated list shall be effective upon the first plan year
following the issuance of such regulation.

``SEC. 2923. APPLICATION AND PREEMPTION.

``(a) Superceding of State Law.--
``(1) In general.--This part shall supersede any and all
State laws insofar as such laws relate to mandates relating
to covered benefits, services, or categories of provider in
the health insurance market as applied to an eligible
insurer, or health insurance coverage issued by an eligible
insurer, including with respect to coverage issued to a small
business health plan, in a nonadopting State.
``(2) Nonadopting states.--This part shall supersede any
and all State laws of a nonadopting State (whether enacted
prior to or after the date of enactment of this title)
insofar as such laws--
``(A) prohibit an eligible insurer from offering,
marketing, or implementing health insurance coverage
consistent with the Benefit Choice Standards, as provided for
in section 2922(a); or
``(B) have the effect of retaliating against or otherwise
punishing in any respect an eligible insurer for offering,
marketing, or implementing health insurance coverage
consistent with the Benefit Choice Standards.
``(b) Savings Clause and Construction.--
``(1) Nonapplication to adopting states.--Subsection (a)
shall not apply with respect to adopting States.
``(2) Nonapplication to certain insurers.--Subsection (a)
shall not apply with respect to insurers that do not qualify
as eligible insurers who offer health insurance coverage in a
nonadopting State.
``(3) Nonapplication where obtaining relief under state
law.--Subsection (a)(1) shall not supercede any State law of
a nonadopting State to the extent necessary to permit
individuals or the insurance department of the State (or
other State agency) to obtain relief under State law to
require an eligible insurer to comply with the Benefit Choice
Standards.
``(4) No effect on preemption.--In no case shall this part
be construed to limit or affect in any manner the preemptive
scope of sections 502 and 514 of the Employee Retirement
Income Security Act of 1974. In no case shall this part be
construed to create any cause of action under Federal or
State law or enlarge or affect any remedy available under the
Employee Retirement Income Security Act of 1974

``SEC. 2924. CIVIL ACTIONS AND JURISDICTION.

``(a) In General.--The courts of the United States shall
have exclusive jurisdiction over civil actions involving the
interpretation of this part.
``(b) Actions.--An eligible insurer may bring an action in
the district courts of the United States for injunctive or
other equitable relief against any officials or agents of a
nonadopting State in connection with any conduct or action,
or proposed conduct or action, by such officials or agents
which violates, or which would if undertaken violate, section
2923.
``(c) Direct Filing in Court of Appeals.--At the election
of the eligible insurer, an action may be brought under
subsection (b) directly in the United States Court of Appeals
for the circuit in which the nonadopting State is located by
the filing of a petition for review in such Court.
``(d) Expedited Review.--
``(1) District court.--In the case of an action brought in
a district court of the United States under subsection (b),
such court shall complete such action, including the issuance
of a judgment, prior to the end of the 120-day period
beginning on the date on which such action is filed, unless
all parties to such proceeding agree to an extension of such
period.
``(2) Court of appeals.--In the case of an action brought
directly in a United States Court of Appeal under subsection
(c), or in the case of an appeal of an action brought in a
district court under subsection (b), such Court shall
complete all action on the petition, including the issuance
of a judgment, prior to the end of the 60-day period
beginning on the date on which such petition is filed with
the Court, unless all parties to such proceeding agree to an
extension of such period.
``(e) Standard of Review.--A court in an action filed under
this section, shall render a judgment based on a review of
the merits of all questions presented in such action and
shall not defer to any conduct or action, or proposed conduct
or action, of a nonadopting State.

``SEC. 2925. RULES OF CONSTRUCTION.

``(a) In General.--Notwithstanding any other provision of
Federal or State law, a health insurance issuer in an
adopting State or an eligible insurer in a non-adopting State
may amend its existing policies to be consistent with the
terms of this subtitle (concerning rating and benefits).
``(b) Health Savings Accounts.--Nothing in this subtitle
shall be construed to inhibit the development of health
savings accounts pursuant to section 223 of the Internal
Revenue Code of 1986.''.

Subtitle C--Harmonization of Health Insurance Standards

SEC. _31. HEALTH INSURANCE STANDARDS HARMONIZATION.

Title XXIX of the Public Health Service Act (as added by
section _21) is amended by adding at the end the following:

``Subtitle B--Standards Harmonization

``SEC. 2931. DEFINITIONS.

``In this subtitle:
``(1) Adopting state.--The term `adopting State' means a
State that has enacted the harmonized standards adopted under
this subtitle in their entirety and as the exclusive laws of
the State that relate to the harmonized standards.
``(2) Eligible insurer.--The term `eligible insurer' means
a health insurance issuer that is licensed in a nonadopting
State and that--
``(A) notifies the Secretary, not later than 30 days prior
to the offering of coverage described in this subparagraph,
that the issuer intends to offer health insurance coverage
consistent with the harmonized standards in a nonadopting
State;
``(B) notifies the insurance department of a nonadopting
State (or other State agency), not later than 30 days prior
to the offering of coverage described in this subparagraph,
that the issuer intends to offer health insurance coverage in
that State consistent with the harmonized standards published
pursuant to section 2932(d), and provides with such notice a
copy of any insurance policy that it intends to offer in the
State, its most recent annual and quarterly financial
reports, and any other information required to be filed with
the insurance department of the State (or other State agency)
by the Secretary in regulations; and
``(C) includes in the terms of the health insurance
coverage offered in nonadopting States (including in the
terms of any individual certificates that may be offered to
individuals in connection with such health coverage) and
filed with the State pursuant to subparagraph (B), a
description of the harmonized standards published pursuant to
section 2932(g)(2) and an affirmation that such standards are
a term of the contract.
``(3) Harmonized standards.--The term `harmonized
standards' means the standards certified by the Secretary
under section 2932(d).
``(4) Health insurance coverage.--The term `health
insurance coverage' means any coverage issued in the health
insurance market, except that such term shall not include
excepted benefits (as defined in section 2791(c).
``(5) Nonadopting state.--The term `nonadopting State'
means a State that fails to enact, within 18 months of the
date on which the Secretary certifies the harmonized
standards under this subtitle, the harmonized standards in
their entirety and as the exclusive laws of the State that
relate to the harmonized standards.
``(6) State law.--The term `State law' means all laws,
decisions, rules, regulations, or other State actions
(including actions by a State agency) having the effect of
law, of any State.

``SEC. 2932. HARMONIZED STANDARDS.

``(a) Board.--
``(1) Establishment.--Not later than 3 months after the
date of enactment of this title, the Secretary, in
consultation with the NAIC, shall establish the Health
Insurance Consensus Standards Board (referred to in this
subtitle as the `Board') to develop recommendations that
harmonize inconsistent State health insurance laws in
accordance with the procedures described in subsection (b).
``(2) Composition.--

[[Page S1131]]

``(A) In general.--The Board shall be composed of the
following voting members to be appointed by the Secretary
after considering the recommendations of professional
organizations representing the entities and constituencies
described in this paragraph:
``(i) Four State insurance commissioners as recommended by
the National Association of Insurance Commissioners, of which
2 shall be Democrats and 2 shall be Republicans, and of which
one shall be designated as the chairperson and one shall be
designated as the vice chairperson.
``(ii) Four representatives of State government, two of
which shall be governors of States and two of which shall be
State legislators, and two of which shall be Democrats and
two of which shall be Republicans.
``(iii) Four representatives of health insurers, of which
one shall represent insurers that offer coverage in the small
group market, one shall represent insurers that offer
coverage in the large group market, one shall represent
insurers that offer coverage in the individual market, and
one shall represent carriers operating in a regional market.
``(iv) Two representatives of insurance agents and brokers.
``(v) Two independent representatives of the American
Academy of Actuaries who have familiarity with the actuarial
methods applicable to health insurance.
``(B) Ex officio member.--A representative of the Secretary
shall serve as an ex officio member of the Board.
``(3) Advisory panel.--The Secretary shall establish an
advisory panel to provide advice to the Board, and shall
appoint its members after considering the recommendations of
professional organizations representing the entities and
constituencies identified in this paragraph:
``(A) Two representatives of small business health plans.
``(B) Two representatives of employers, of which one shall
represent small employers and one shall represent large
employers.
``(C) Two representatives of consumer organizations.
``(D) Two representatives of health care providers.
``(4) Qualifications.--The membership of the Board shall
include individuals with national recognition for their
expertise in health finance and economics, actuarial science,
health plans, providers of health services, and other related
fields, who provide a mix of different professionals, broad
geographic representation, and a balance between urban and
rural representatives.
``(5) Ethical disclosure.--The Secretary shall establish a
system for public disclosure by members of the Board of
financial and other potential conflicts of interest relating
to such members. Members of the Board shall be treated as
employees of Congress for purposes of applying title I of the
Ethics in Government Act of 1978 (Public Law 95-521).
``(6) Director and staff.--Subject to such review as the
Secretary deems necessary to assure the efficient
administration of the Board, the chair and vice-chair of the
Board may--
``(A) employ and fix the compensation of an Executive
Director (subject to the approval of the Comptroller General)
and such other personnel as may be necessary to carry out its
duties (without regard to the provisions of title 5, United
States Code, governing appointments in the competitive
service);
``(B) seek such assistance and support as may be required
in the performance of its duties from appropriate Federal
departments and agencies;
``(C) enter into contracts or make other arrangements, as
may be necessary for the conduct of the work of the Board
(without regard to section 3709 of the Revised Statutes (41
U.S.C. 5));
``(D) make advance, progress, and other payments which
relate to the work of the Board;
``(E) provide transportation and subsistence for persons
serving without compensation; and
``(F) prescribe such rules as it deems necessary with
respect to the internal organization and operation of the
Board.
``(7) Terms.--The members of the Board shall serve for the
duration of the Board. Vacancies in the Board shall be filled
as needed in a manner consistent with the composition
described in paragraph (2).
``(b) Development of Harmonized Standards.--
``(1) In general.--In accordance with the process described
in subsection (c), the Board shall identify and recommend
nationally harmonized standards for each of the following
process categories:
``(A) Form filing and rate filing.--Form and rate filing
standards shall be established which promote speed to market
and include the following defined areas for States that
require such filings:
``(i) Procedures for form and rate filing pursuant to a
streamlined administrative filing process.
``(ii) Timeframes for filings to be reviewed by a State if
review is required before they are deemed approved.
``(iii) Timeframes for an eligible insurer to respond to
State requests following its review.
``(iv) A process for an eligible insurer to self-certify.
``(v) State development of form and rate filing templates
that include only non-preempted State law and Federal law
requirements for eligible insurers with timely updates.
``(vi) Procedures for the resubmission of forms and rates.
``(vii) Disapproval rationale of a form or rate filing
based on material omissions or violations of non-preempted
State law or Federal law with violations cited and explained.
``(viii) For States that may require a hearing, a rationale
for hearings based on violations of non-preempted State law
or insurer requests.
``(B) Market conduct review.--Market conduct review
standards shall be developed which provide for the following:
``(i) Mandatory participation in national databases.
``(ii) The confidentiality of examination materials.
``(iii) The identification of the State agency with primary
responsibility for examinations.
``(iv) Consultation and verification of complaint data with
the eligible insurer prior to State actions.
``(v) Consistency of reporting requirements with the
recordkeeping and administrative practices of the eligible
insurer.
``(vi) Examinations that seek to correct material errors
and harmful business practices rather than infrequent errors.
``(vii) Transparency and publishing of the State's
examination standards.
``(viii) Coordination of market conduct analysis.
``(ix) Coordination and nonduplication between State
examinations of the same eligible insurer.
``(x) Rationale and protocols to be met before a full
examination is conducted.
``(xi) Requirements on examiners prior to beginning
examinations such as budget planning and work plans.
``(xii) Consideration of methods to limit examiners' fees
such as caps, competitive bidding, or other alternatives.
``(xiii) Reasonable fines and penalties for material errors
and harmful business practices.
``(C) Prompt payment of claims.--The Board shall establish
prompt payment standards for eligible insurers based on
standards similar to those applicable to the Social Security
Act as set forth in section 1842(c)(2) of such Act (42 U.S.C.
1395u(c)(2)). Such prompt payment standards shall be
consistent with the timing and notice requirements of the
claims procedure rules to be specified under subparagraph
(D), and shall include appropriate exceptions such as for
fraud, nonpayment of premiums, or late submission of claims.
``(D) Internal review.--The Board shall establish standards
for claims procedures for eligible insurers that are
consistent with the requirements relating to initial claims
for benefits and appeals of claims for benefits under the
Employee Retirement Income Security Act of 1974 as set forth
in section 503 of such Act (29 U.S.C. 1133) and the
regulations thereunder.
``(2) Recommendations.--The Board shall recommend
harmonized standards for each element of the categories
described in subparagraph (A) through (D) of paragraph (1)
within each such market. Notwithstanding the previous
sentence, the Board shall not recommend any harmonized
standards that disrupt, expand, or duplicate the benefit,
service, or provider mandate standards provided in the
Benefit Choice Standards pursuant to section 2922(a).
``(c) Process for Identifying Harmonized Standards.--
``(1) In general.--The Board shall develop recommendations
to harmonize inconsistent State insurance laws with respect
to each of the process categories described in subparagraphs
(A) through (D) of subsection (b)(1).
``(2) Requirements.--In adopting standards under this
section, the Board shall consider the following:
``(A) Any model acts or regulations of the National
Association of Insurance Commissioners in each of the process
categories described in subparagraphs (A) through (D) of
subsection (b)(1).
``(B) Substantially similar standards followed by a
plurality of States, as reflected in existing State laws,
relating to the specific process categories described in
subparagraphs (A) through (D) of subsection (b)(1).
``(C) Any Federal law requirement related to specific
process categories described in subparagraphs (A) through (D)
of subsection (b)(1).
``(D) In the case of the adoption of any standard that
differs substantially from those referred to in subparagraphs
(A), (B), or (C), the Board shall provide evidence to the
Secretary that such standard is necessary to protect health
insurance consumers or promote speed to market or
administrative efficiency.
``(E) The criteria specified in clauses (i) through (iii)
of subsection (d)(2)(B).
``(d) Recommendations and Certification by Secretary.--
``(1) Recommendations.--Not later than 18 months after the
date on which all members of the Board are selected under
subsection (a), the Board shall recommend to the Secretary
the certification of the harmonized standards identified
pursuant to subsection (c).
``(2) Certification.--
``(A) In general.--Not later than 120 days after receipt of
the Board's recommendations under paragraph (1), the
Secretary shall certify the recommended harmonized standards
as provided for in subparagraph

[[Page S1132]]

(B), and issue such standards in the form of an interim final
regulation.
``(B) Certification process.--The Secretary shall establish
a process for certifying the recommended harmonized standard,
by category, as recommended by the Board under this section.
Such process shall--
``(i) ensure that the certified standards for a particular
process area achieve regulatory harmonization with respect to
health plans on a national basis;
``(ii) ensure that the approved standards are the minimum
necessary, with regard to substance and quantity of
requirements, to protect health insurance consumers and
maintain a competitive regulatory environment; and
``(iii) ensure that the approved standards will not limit
the range of group health plan designs and insurance
products, such as catastrophic coverage only plans, health
savings accounts, and health maintenance organizations, that
might otherwise be available to consumers.
``(3) Effective date.--The standards certified by the
Secretary under paragraph (2) shall be effective on the date
that is 18 months after the date on which the Secretary
certifies the harmonized standards.
``(e) Termination.--The Board shall terminate and be
dissolved after making the recommendations to the Secretary
pursuant to subsection (d)(1).
``(f) Ongoing Review.--Not earlier than 3 years after the
termination of the Board under subsection (e), and not
earlier than every 3 years thereafter, the Secretary, in
consultation with the National Association of Insurance
Commissioners and the entities and constituencies represented
on the Board and the Advisory Panel, shall prepare and submit
to the appropriate committees of Congress a report that
assesses the effect of the harmonized standards on access,
cost, and health insurance market functioning. The Secretary
may, based on such report and applying the process
established for certification under subsection (d)(2)(B), in
consultation with the National Association of Insurance
Commissioners and the entities and constituencies represented
on the Board and the Advisory Panel, update the harmonized
standards through notice and comment rulemaking.
``(g) Publication.--
``(1) Listing.--The Secretary shall maintain an up to date
listing of all harmonized standards certified under this
section on the Internet website of the Department of Health
and Human Services.
``(2) Sample contract language.--The Secretary shall
publish on the Internet website of the Department of Health
and Human Services sample contract language that incorporates
the harmonized standards certified under this section, which
may be used by insurers seeking to qualify as an eligible
insurer. The types of harmonized standards that shall be
included in sample contract language are the standards that
are relevant to the contractual bargain between the insurer
and insured.
``(h) State Adoption and Enforcement.--Not later than 18
months after the certification by the Secretary of harmonized
standards under this section, the States may adopt such
harmonized standards (and become an adopting State) and, in
which case, shall enforce the harmonized standards pursuant
to State law.

``SEC. 2933. APPLICATION AND PREEMPTION.

``(a) Superceding of State Law.--
``(1) In general.--The harmonized standards certified under
this subtitle shall supersede any and all State laws of a
non-adopting State insofar as such State laws relate to the
areas of harmonized standards as applied to an eligible
insurer, or health insurance coverage issued by a eligible
insurer, including with respect to coverage issued to a small
business health plan, in a nonadopting State.
``(2) Nonadopting states.--This subtitle shall supersede
any and all State laws of a nonadopting State (whether
enacted prior to or after the date of enactment of this
title) insofar as they may--
``(A) prohibit an eligible insurer from offering,
marketing, or implementing health insurance coverage
consistent with the harmonized standards; or
``(B) have the effect of retaliating against or otherwise
punishing in any respect an eligible insurer for offering,
marketing, or implementing health insurance coverage
consistent with the harmonized standards under this subtitle.
``(b) Savings Clause and Construction.--
``(1) Nonapplication to adopting states.--Subsection (a)
shall not apply with respect to adopting States.
``(2) Nonapplication to certain insurers.--Subsection (a)
shall not apply with respect to insurers that do not qualify
as eligible insurers who offer health insurance coverage in a
nonadopting State.
``(3) Nonapplication where obtaining relief under state
law.--Subsection (a)(1) shall not supercede any State law of
a nonadopting State to the extent necessary to permit
individuals or the insurance department of the State (or
other State agency) to obtain relief under State law to
require an eligible insurer to comply with the harmonized
standards under this subtitle.
``(4) No effect on preemption.--In no case shall this
subtitle be construed to limit or affect in any manner the
preemptive scope of sections 502 and 514 of the Employee
Retirement Income Security Act of 1974. In no case shall this
subtitle be construed to create any cause of action under
Federal or State law or enlarge or affect any remedy
available under the Employee Retirement Income Security Act
of 1974.
``(c) Effective Date.--This section shall apply beginning
on the date that is 18 months after the date on harmonized
standards are certified by the Secretary under this subtitle.

``SEC. 2934. CIVIL ACTIONS AND JURISDICTION.

``(a) In General.--The district courts of the United States
shall have exclusive jurisdiction over civil actions
involving the interpretation of this subtitle.
``(b) Actions.--An eligible insurer may bring an action in
the district courts of the United States for injunctive or
other equitable relief against any officials or agents of a
nonadopting State in connection with any conduct or action,
or proposed conduct or action, by such officials or agents
which violates, or which would if undertaken violate, section
2933.
``(c) Direct Filing in Court of Appeals.--At the election
of the eligible insurer, an action may be brought under
subsection (b) directly in the United States Court of Appeals
for the circuit in which the nonadopting State is located by
the filing of a petition for review in such Court.
``(d) Expedited Review.--
``(1) District court.--In the case of an action brought in
a district court of the United States under subsection (b),
such court shall complete such action, including the issuance
of a judgment, prior to the end of the 120-day period
beginning on the date on which such action is filed, unless
all parties to such proceeding agree to an extension of such
period.
``(2) Court of appeals.--In the case of an action brought
directly in a United States Court of Appeal under subsection
(c), or in the case of an appeal of an action brought in a
district court under subsection (b), such Court shall
complete all action on the petition, including the issuance
of a judgment, prior to the end of the 60-day period
beginning on the date on which such petition is filed with
the Court, unless all parties to such proceeding agree to an
extension of such period.
``(e) Standard of Review.--A court in an action filed under
this section, shall render a judgment based on a review of
the merits of all questions presented in such action and
shall not defer to any conduct or action, or proposed conduct
or action, of a nonadopting State.

``SEC. 2935. AUTHORIZATION OF APPROPRIATIONS; RULE OF
CONSTRUCTION.

``(a) Authorization of Appropriations.--There are
authorized to be appropriated such sums as may be necessary
to carry out this subtitle.
``(b) Health Savings Accounts.--Nothing in this subtitle
shall be construed to inhibit the development of health
savings accounts pursuant to section 223 of the Internal
Revenue Code of 1986.''.

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