To require Federal contractors and other recipients of Federal funds to participate in the E-Verify Program for employment eligibility verification, to permanently reauthorize the E-Verify Program, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employee Verification Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Department of Homeland Security estimates that 
        there were 11.5 million illegal immigrants in the United States 
        in 2011, a population with a traditionally high rate of labor 
        force participation. During this time, 13.7 million Americans 
        were unemployed.
            (2) Pursuant to Executive Order 12989, as amended by 
        Executive Order 13465, contractors and subcontractors that do 
        business with the Federal Government must use the E-Verify 
        Program to verify that their employees are authorized to work 
        in the United States. Additionally, all Federal employees must 
        be screened through the E-Verify Program.
            (3) The E-Verify Program is accurate, effective, and 
        currently in use by more than 350,000 employers. Ninety-eight 
        and three-tenths percent of employees are automatically 
        confirmed as work-authorized either instantly or within 24 
        hours, requiring no employee or employer action.
            (4) The United States Court of Appeals for the Fourth 
        Circuit decided in Chamber of Commerce v. Janet Napolitano that 
        entities that solicit and voluntarily enter into contracts or 
        agreements with the Federal Government can be subject to a 
        requirement for electronic verification of employment 
        eligibility.

SEC. 3. REQUIREMENT FOR FEDERAL CONTRACTORS AND OTHER RECIPIENTS OF 
              FEDERAL FUNDS TO PARTICIPATE IN E-VERIFY PROGRAM.

    (a) In General.--Section 402(e)(1) of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
is amended by adding at the end the following new subparagraphs:
                    ``(C) Federal contractors and subcontractors.--
                            ``(i) In general.--Any Federal contractor 
                        described in clause (ii), and any subcontractor 
                        described in clause (iii), shall elect, prior 
                        to receipt of any payment under the contract or 
                        subcontract, to participate in the E-Verify 
                        Program described in section 403(a) and shall 
                        comply with the terms and conditions of such 
                        election.
                            ``(ii) Federal contractors described.--A 
                        Federal contractor is described in this clause 
                        if the contractor--
                                    ``(I) employs individuals; and
                                    ``(II) has been awarded (and has 
                                not completed performance of) a 
                                contract by the Federal Government for 
                                the procurement of goods or services.
                            ``(iii) Subcontractors described.--A 
                        subcontractor is described in this clause if 
                        the subcontractor--
                                    ``(I) employs individuals; and
                                    ``(II) has been awarded (and has 
                                not completed performance of) a 
                                subcontract by a Federal contractor 
                                described in clause (ii).
                            ``(iv) Coverage of workforce.--In 
                        implementing this subparagraph, the Secretary 
                        of Homeland Security shall ensure that the E-
                        Verify Program is applied to--
                                    ``(I) all persons hired during the 
                                contract term by the contractor to 
                                perform employment duties within the 
                                United States;
                                    ``(II) all employees assigned by 
                                the contractor to perform work within 
                                the United States on the contract; and
                                    ``(III) in the case of a 
                                subcontractor, all employees of the 
                                subcontractor who are directly engaged 
                                in performing work under the contract.
                            ``(v) Exceptions to contracts covered.--For 
                        purposes of clause (ii)(II), a contract by the 
                        Federal Government for the procurement of goods 
                        or services does not include any of the 
                        following contracts:
                                    ``(I) A contract in an amount less 
                                than the simplified acquisition 
                                threshold.
                                    ``(II) A contract that is for the 
                                procurement of only commercially 
                                available off-the-shelf items (or minor 
                                modifications to such items) and 
                                related services.
                                    ``(III) A contract with a term of 
                                less than 120 days.
                                    ``(IV) A contract under which all 
                                work is performed outside the United 
                                States.
                    ``(D) Recipients of grants, loans, and other 
                federal benefits.--
                            ``(i) In general.--Any recipient of a 
                        Federal benefit described in clause (ii) shall 
                        elect, prior to receipt of the benefit, to 
                        participate in the E-Verify Program described 
                        in section 403(a) and shall comply with the 
                        terms and conditions of such election.
                            ``(ii) Recipient of federal funds 
                        described.--A recipient of a Federal benefit is 
                        described in this clause if the recipient--
                                    ``(I) employs individuals; and
                                    ``(II) has received (and not 
                                completed the term of) a grant, loan, 
                                loan guarantee, or cooperative 
                                agreement from the Federal Government.
                            ``(iii) Coverage of workforce.--In 
                        implementing this subparagraph, the Secretary 
                        of Homeland Security shall ensure that the E-
                        Verify Program is applied to--
                                    ``(I) all persons hired during the 
                                term of the grant, loan, loan 
                                guarantee, or cooperative agreement by 
                                the recipient of the Federal benefit to 
                                perform employment duties within the 
                                United States; and
                                    ``(II) all employees assigned by 
                                the recipient of the Federal benefit to 
                                perform work within the United States 
                                under the project or activity funded by 
                                the grant, loan, loan guarantee, or 
                                cooperative agreement.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to contracts, grants, loans, loan guarantees, or cooperative 
agreements entered into, awarded, renewed, or extended, as the case may 
be, on or after the expiration of the 60-day period beginning on the 
date of the enactment of this Act.

SEC. 4. PERMANENT REAUTHORIZATION OF E-VERIFY.

    (a) In General.--Section 401 of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended--
            (1) in subsection (a), by striking ``pilot'';
            (2) in subsection (b)--
                    (A) by striking ``the pilot programs'' and 
                inserting ``the programs required under this 
                subtitle''; and
                    (B) by striking ``Unless the Congress otherwise 
                provides, the Secretary of Homeland Security shall 
                terminate a pilot program on September 30, 2012.''; and
            (3) in subsection (d)--
                    (A) by redesignating paragraphs (1), (2), (3), (4), 
                (5), (6), and (7) as paragraphs (4), (1), (5), (2), 
                (3), (7), and (6), respectively; and
                    (B) by amending paragraph (4), as redesignated, to 
                read as follows:
            ``(4) Program.--The term `program' means any of the 3 
        programs provided for under this subtitle.''.
    (b) Conforming Amendments.--Subtitle A of title IV of division C of 
the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note) is amended--
            (1) in section 402, by striking ``pilot'' each place such 
        term appears; and
            (2) in section 403(a)(2)--
                    (A) in subparagraph (A), by amending clause (i) to 
                read as follows:
                            ``(i) A document referred to in section 
                        274A(b)(1)(B)(ii) of the Immigration and 
                        Nationality Act (8 U.S.C. 1324a(b)(1)(B)(ii)) 
                        shall be designated by the Secretary of 
                        Homeland Security as suitable for the purpose 
                        of identification in a program provided for 
                        under this subtitle.''; and
                    (B) in subparagraph (B), by striking ``pilot''.

Summary: Employee Verification Act - Amends the the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 to require federal contractors and subcontractors to participate in the E-Verify Program. Exempts specified federal procurement contracts from E-Verify coverage. Directs the Secretary of Homeland Security (DHS) to ensure that E-Verify is applied to: (1) all persons hired during the term of the grant, loan, loan guarantee, or cooperative agreement by the recipient of the federal benefit to perform employment duties within the United States. And (2) all employees assigned by the recipient of the federal benefit to perform work within the United States under the project or activity funded by the grant, loan, loan guarantee, or cooperative agreement. Makes E-Verify permanent.