To amend the Immigration and Nationality Act to improve enforcement of restrictions on employment in the United States of unauthorized aliens and to reimburse State and local governments for costs associated with serving illegal aliens.

Summary: Unlawful Employers Accountability and Illegal Alien State Reimbursement Act of 2007 - Amends the Immigration and Nationality Act to revise (based upon the number of employees) and increase civil money penalties for employers who knowingly hire, recruit, refer, or continue to employ illegal aliens in the United States. Makes employers liable for federal, state, and local costs associated with such aliens' removal.

Considers each subdivision as a separate employer in the case of an employer composed of distinct, physically separate subdivisions each of which provides separately for hiring, recruiting, or referring and which is not under the control of another subdivision.

Denies specified agricultural assistance for up to five years for an agricultural employer, association, or farm labor contractor in violation of such employment provisions.

Eliminates good faith defense provisions.

Directs the Secretary of Homeland Security to maintain a website of employers determined to have been in violation of such provisions within the preceding five years.

Makes repeat employer violators or employers subject to criminal penalties for such violations ineligible for federal contracts for five years.

Directs the Secretary to establish in the Treasury the Illegal Alien State Reimbursement Fund to reimburse eligible states (including the District of Columbia, the Commonwealth of Puerto Rico, American Samoa, Guam, and the United States Virgin Islands) for payments to local educational agencies, public health care providers, and law enforcement agencies for costs associated with serving aliens unlawfully present in the United States.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Unlawful Employers Accountability 
and Illegal Alien State Reimbursement Act of 2007''.

SEC. 2. COMPLIANCE WITH RESPECT TO THE UNLAWFUL EMPLOYMENT OF ALIENS.

    (a) Civil Penalty.--Paragraph (4) of subsection (e) of section 274A 
of the Immigration and Nationality Act (8 U.S.C. 1324a) is amended to 
read as follows:
            ``(4) Cease and desist order with civil money penalty for 
        hiring, recruiting, and referral violations.--
                    ``(A) In general.--With respect to a violation by 
                any person or other entity of subsection (a)(1)(A) or 
                (a)(2), the Secretary of Homeland Security shall 
                require such person or such entity to cease and desist 
                from such violations and to pay a civil penalty in the 
                amount specified in subparagraph (B).
                    ``(B) Amount of civil penalty.--
                            ``(i) Schedule of penalties based on the 
                        number of unauthorized aliens.--For each 
                        occurrence of a violation of subsection 
                        (a)(1)(A) or (a)(2) with respect to the alien 
                        referred to in such subsection, the civil 
                        penalty shall be the following:
                                    ``(I) For a violation with respect 
                                to one unauthorized alien, $5,000.
                                    ``(II) For a violation with respect 
                                to greater than or equal to 2 such 
                                aliens but less than or equal to 10 
                                such aliens, $5,000 for each such 
                                alien.
                                    ``(III) For a violation with 
                                respect to greater than or equal to 11 
                                such aliens but less than or equal to 
                                25 such aliens, $15,000 for each such 
                                alien.
                                    ``(IV) For a violation with respect 
                                to greater than or equal to 26 such 
                                aliens but less than or equal to 50 
                                such aliens, $25,000 for each such 
                                alien.
                                    ``(V) For a violation with respect 
                                to greater than or equal to 51 such 
                                aliens but less than or equal to 75 
                                such aliens, $35,000 for each such 
                                alien.
                                    ``(VI) For a violation with respect 
                                to greater than 75 such aliens, $50,000 
                                for each such alien.
                            ``(ii) Additional amounts for costs of 
                        removal.--In the event of the removal of an 
                        alien from the United States based on findings 
                        developed in connection with the assessment or 
                        collection of a penalty under this paragraph, 
                        the costs incurred by the Federal Government, 
                        cooperating State and local governments, and 
                        State and local law enforcement agencies in 
                        connection with such removal shall be added to 
                        the amount of the penalty specified under 
                        clause (i).
                    ``(C) Distinct, physically separate subdivisions.--
                In applying this subsection in the case of a person or 
                other entity composed of distinct, physically separate 
                subdivisions each of which provides separately for the 
                hiring, recruiting, or referring for employment, 
                without reference to the practices of, and not under 
                the control of or common control with, another 
                subdivision, each such subdivision shall be considered 
                a separate person or other entity.''.
    (b) Denial of Agricultural Assistance for Violators.--Section 274A 
of such Act (8 U.S.C. 1324a) is further amended by adding at the end 
the following new subsection:
    ``(i) Denial of Agricultural Assistance for Violators.--In the case 
of a violation of subsection (a)(1)(A) or (a)(2) by an agricultural 
association, agricultural employer, or farm labor contractor (as 
defined in section 3 of the Migrant and Seasonal Agricultural Worker 
Protection Act (29 U.S.C. 1802)), such association, employer, or 
contractor shall be ineligible for agricultural assistance described in 
paragraphs (1), (2), and (3) of section 1211(a) of the Food Security 
Act of 1985 (16 U.S.C. 3811(a)) for a period not to exceed 5 years.''.
    (c) Good Faith Defense.--
            (1) In general.--Section 274A of the Immigration and 
        Nationality Act (8 U.S.C. 1324a) is further amended--
                    (A) by striking subsection (a)(3); and
                    (B) by striking subsection (b)(6).
            (2) Conforming amendments.--Section 274A of such Act (8 
        U.S.C. 1324a) is further amended--
                    (A) in subsection (a)(5), by striking ``paragraphs 
                (1)(B) and (3)'' and inserting ``paragraph (1)(B)''; 
                and
                    (B) in subsection (b)--
                            (i) in the matter preceding paragraph (1), 
                        by striking ``paragraphs (1)(B) and (3)'' and 
                        inserting ``paragraph (1)(B)''; and
                            (ii) by striking paragraph (6).
    (d) Disclosure Requirements.--
            (1) In general.--The Secretary of Homeland Security shall 
        establish, maintain, and regularly update a publicly accessible 
        website that contains a list of persons or other entities that 
        the Secretary has determined to have been in violation of 
        subsection (a)(1)(A) or (a)(2) of section 274A of the 
        Immigration and Nationality Act (8 U.S.C. 1324a) in the 
        preceding 5 years.
            (2) Contents of website.--Such website shall contain, with 
        respect to each such person or entity, the following 
        information:
                    (A) The name, address, and telephone number of the 
                person or entity.
                    (B) The names of the owners, chief executive 
                officers, or other similar officers of the person or 
                entity.
                    (C) The number of unauthorized aliens (as defined 
                in section 274A(h)(3) of such Act (8 U.S.C. 
                1324a(h)(3))) found to be employed by the person or 
                entity.
                    (D) The aggregate dollar amount that the person or 
                entity has received in the preceding 5 years under any 
                Federal contract.
    (e) Effective Date.--The amendments made by subsections (a), (b), 
and (c) shall take effect 30 days after the date of the enactment of 
this Act and shall apply to violations occurring on or after such 
effective date.

SEC. 3. DEBARMENT FROM GOVERNMENT CONTRACTS FOR EMPLOYERS OF 
              UNAUTHORIZED ALIENS.

    (a) In General.--Section 274A of the Immigration and Nationality 
Act (8 U.S.C. 1324a), as amended by section 2(b), is amended by adding 
at the end the following new subsection:
    ``(j) Government Contracts.--If a person or other entity is 
determined by the Secretary of Homeland Security to be a repeat 
violator of this section, or is subject to criminal penalties under 
subsection (f)(1), the person or other entity shall be debarred from 
the receipt of Federal contracts (and subcontracts entered into (at any 
tier) under such contracts) for a period of 5 years.''.
    (b) Effective Date.--Section 274A(j) of the Immigration and 
Nationality Act (8 U.S.C. 1324a(j)), as added by subsection (a), shall 
apply with respect to contracts and subcontracts entered into after the 
expiration of the 90-day period beginning on the date of enactment of 
this Act.

SEC. 4. REIMBURSING STATE AND LOCAL GOVERNMENTS FOR COSTS OF SERVING 
              ILLEGAL ALIENS.

    (a) Making Payments to States.--
            (1) In general.--Not later than 30 days following the end 
        of the fiscal year, the Secretary shall make a payment to each 
        eligible State in an amount equal to the amount credited as of 
        the end of the fiscal year to the account of the State within 
        the Illegal Alien State Reimbursement Fund as described in 
        paragraph (2).
            (2) Establishment and operation of illegal alien state 
        reimbursement fund.--
                    (A) Establishment of fund.--The Secretary shall 
                establish a designated fund in the Treasury of the 
                United States to be known as the ``Illegal Alien State 
                Reimbursement Fund'' (in this section referred to as 
                the ``Fund'').
                    (B) State accounts.--The Secretary shall create a 
                separate account within the Fund for each State that is 
                an eligible State during the fiscal year.
                    (C) Allocation method.--If any amount is received 
                from an employer of an unauthorized alien for a 
                violation of section 274A(a) of the Immigration and 
                Nationality Act (8 U.S.C. 1324a(a)) and if the 
                violation occurred in an eligible State, the Secretary 
                shall credit the account of that eligible State using 
                the following formula:
                            (i) If the violation occurs in a single 
                        eligible State, the Secretary shall credit the 
                        account of that eligible State with an amount 
                        equal to 75% of the amount received.
                            (ii) If the violation occurs in multiple 
                        eligible States, the Secretary shall divide the 
                        amount described in clause (i) by the number of 
                        eligible States where the violation occurred 
                        and shall credit the account of each eligible 
                        State with an equal share.
    (b) Requirements for Use and Redistribution of Payments.--
            (1) Use of payments specified.--A payment received under 
        this section shall be used solely for payments to local 
        educational agencies (as defined in section 9101(26) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801(26))), public health care providers, and law enforcement 
        agencies for the purpose of assisting State and local 
        governments with meeting the costs associated with serving 
        aliens who are unlawfully present in the United States.
            (2) Redistribution of payment to counties and units of 
        local government.--An eligible State shall redistribute 66 
        percent of the payment received under this section, within 60 
        days of receipt by the State, to appropriate counties and units 
        of local government in accordance with a system that the State 
        shall develop that provides for opportunities for input from 
        all counties and units of local government in the state and 
        that targets the areas of greatest need in accordance with the 
        purpose described in paragraph (1), based on objective 
        criteria.
    (c) Definitions.--For the purposes of this section, the following 
definitions apply:
            (1) Eligible state.--The term ``eligible State'' means a 
        State that agrees--
                    (A) to use the payment received under this section 
                for the uses specified in subsection (b)(1);
                    (B) to redistribute the payment received under this 
                section to counties and units of local government in 
                accordance with subsection (b)(2);
                    (C) to require that any county or unit of local 
                government to whom a payment is redistributed shall use 
                the payment for the uses specified in subsection 
                (b)(1); and
                    (D) to submit information and assurances at such 
                time and in such form as the Secretary may require.
            (2) State.--The term ``State'' includes each State, the 
        District of Columbia, the Commonwealth of Puerto Rico, American 
        Samoa, Guam, and the United States Virgin Islands.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
    (d) Effective Date.--This section shall take effect at the 
beginning of the next fiscal year following the date of enactment of 
this Act.