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[House Report 107-310]
[From the U.S. Government Publishing Office]

107th Congress                                            Rept. 107-310
                        HOUSE OF REPRESENTATIVES
 1st Session                                                     Part 1

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                   BASIC PILOT EXTENSION ACT OF 2001

                                _______
                                

 November 30, 2001.--Committed to the Committee of the Whole House on 
            the state of the Union and ordered to be printed

                                _______
                                

 Mr. Sensenbrenner, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3030]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 3030) to extend the ``Basic Pilot'' employment 
verification system, and for other purposes, having considered 
the same, reports favorably thereon with amendments and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendments...................................................     1
Purpose and Summary..............................................     2
Background and Need for the Legislation..........................     2
Hearings.........................................................     5
Committee Consideration..........................................     5
Vote of the Committee............................................     5
Committee Oversight Findings.....................................     5
Performance Goals and Objectives.................................     5
New Budget Authority and Tax Expenditures........................     6
Congressional Budget Office Cost Estimate........................     6
Constitutional Authority Statement...............................     7
Section-by-Section Analysis and Discussion.......................     7
Changes in Existing Law Made by the Bill, as Reported............     8
Committee Jurisdiction Letters...................................     9
Markup Transcript................................................    10

    The amendments (stated in terms of the page and line 
numbers of the introduced bill) are as follows:

    Page 1, line 8, strike ``1966 (division C of Public Law 
104-208 (Sept. 30, 1996), 110 Stat. 3009-656)'' and insert 
``1996 (8 U.S.C. 1324a note)''.

    Page 2, beginning on line 1, strike ``in lieu thereof''.

    Page 2, line 4, strike ``amendments'' and insert 
``amendment''.

    Page 2, line 5, insert ``the'' before ``enactment''.

    Amend the title so as to read:

      A bill to extend the basic pilot program for employment 
eligibility verification, and for other purposes.

                          Purpose and Summary

    H.R. 3030 extends for 2 years the operation of the pilot 
programs for employment eligibility verification that were 
instituted by the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996.

                Background and Need for the Legislation

                             I. Background

    The Immigration Reform and Control Act of 1986 (``IRCA'') 
made it unlawful for employers to knowingly hire or employ 
aliens not eligible to work and required employers to check the 
identity and work eligibility documents of all new 
employees.\1\ If the documents provided by an employee 
reasonably appear on their face to be genuine, the employer has 
met its document review obligation. Certain documents, such as 
passports and resident alien cards, establish both identity and 
work eligibility. Others, such as most Social Security cards, 
establish work eligibility. Others, such as drivers' licenses, 
establish identity.
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    \1\ See, generally, section 274A of the Immigration and Nationality 
Act.
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    If a new hire produces the required documents, the employer 
is not required to solicit the production of additional 
documents and the employee is not required to produce 
additional documents. In fact, an employer's request for more 
or different documents than are required, or refusal to honor 
documents that reasonably appear to be genuine, shall be 
treated as an unfair immigration-related employment practice if 
made for the purpose or with the intent of discriminating 
against an individual because of such individual's national 
origin or citizenship status.\2\
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    \2\ See, generally, section 274B of the INA.
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    The easy availability of counterfeit documents has made a 
mockery of IRCA. Fake documents are produced by the millions 
and can be obtained cheaply.\3\ Thus, the IRCA system both 
benefits unscrupulous employers who do not mind hiring illegal 
aliens but want to show that they have met legal requirements 
and harms employers who don't want to hire illegal aliens but 
have no choice but to accept documents they know have a good 
likelihood of being counterfeit.
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    \3\ See, i.e., verification of Eligibility for Employment and 
Benefits: Hearing Before the Subcomm. on Immigration and Claims of the 
House Comm. on the Judiciary, 104th Cong., 1st Sess. (March 30, 1995).
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                      II. The Basic Pilot Program

    In response to the deficiencies of IRCA, title IV of the 
Illegal Immigration Reform and Immigrant Responsibility Act of 
1996 (``IIRIRA'') instituted three employment eligibility 
confirmation pilot programs for volunteer employers that were 
to last for 4 years. The ``basic pilot program'' was 
implemented first, and expires in November 2001. Under the 
basic pilot, the proffered Social Security numbers and alien 
identification numbers of new hires would be checked against 
Social Security Administration and Immigration and 
Naturalization Service (``INS'') records in order to weed out 
documents containing counterfeit numbers and real numbers used 
by multiple individuals and thus to ensure that new hires are 
genuinely eligible to work. The pilot is available to employers 
having locations in California, Florida, Illinois, Nebraska, 
New York and Texas. Approximately 1,758 employers are currently 
participating in the pilot.
    The pilot works as follows: \4\
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    \4\ See, generally, sections 403(a) and 404 of IIRIRA.

         As under current law, once an applicant has 
        accepted a job offer, he or she will present certain 
        documents to the employer. The employer must examine 
        the documents to determine whether they reasonably 
        appear on their face to be genuine and complete an I-9 
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        form attesting to this examination.

         The employer will have 3 days from the date 
        of hire to make an inquiry by phone or other electronic 
        means to the confirmation office established to run the 
        mechanism. If the new hire claims to be a citizen, the 
        employer will transmit his or her name and Social 
        Security number. If the new hire claims to be a non-
        citizen, the employer will transmit his or her name, 
        INS-issued number, and Social Security number.

         The confirmation office will compare the name 
        and Social Security number provided against information 
        contained in Social Security Administration records and 
        will compare the name and INS-issued number provided 
        against information contained in INS records.

         If in checking the records, the confirmation 
        office ascertains that the new hire is eligible to 
        work, the operator will within 3 days so inform the 
        employer and provide a confirmation number.

         If the confirmation office cannot confirm the 
        work eligibility of the new hire, it will within 3 days 
        so inform the employer of a tentative nonconfirmation 
        and provide a tentative nonconfirmation number.

         If the new hire wishes to contest a tentative 
        nonconfirmation, secondary verification will be 
        undertaken. Secondary verification is an expedited 
        procedure set up to confirm the validity of information 
        contained in the government records and provided by the 
        new hire. Under this process, the new hire will 
        typically contact or visit the Social Security 
        Administration and/or the INS to see why the government 
        records disagree with the information he or she has 
        provided. If the new hire requests secondary 
        verification, he or she cannot be fired on the basis of 
        the tentative nonconfirmation.

         If the discrepency can be reconciled within 
        10 days, then confirmation of work eligibility and a 
        confirmation number will be given to the employer by 
        the end of this period.

         If the discrepency cannot be reconciled 
        within 10 days, final denial of confirmation and a 
        final nonconfirmation number will be given by the end 
        of this period. The employer then has two options:

                The employer can dismiss the new hire as being 
                ineligible to work in the United States.

                The employer can continue to employ the new 
                hire. The employer must notify the Attorney 
                General of this decision. If action is brought 
                by the government, the employer has the burden 
                of proof in showing the new hire is eligible to 
                work. If the employer fails to so prove, the 
                employer will be deemed to have knowingly hired 
                an illegal alien.

    The SSA and the INS agree as part of the pilot to safeguard 
the information provided to them by employers and to limit 
access to the information as appropriate by law. An employer 
must agree not to use the pilot for pre-employment screening of 
job applicants or for support of any unlawful employment 
practice, not to verify selectively, and to ensure that the 
information it receives from the government is used only to 
confirm employment eligibility and is not otherwise 
disseminated.
    Operation of the basic pilot program commenced in November 
1997 and expires in November 2001.
    Section 405 of IIRIRA required that the INS provide a 
report to this Committee and the Senate Judiciary Committee on 
the operations of the pilot programs within 3 months after the 
end of the third and fourth years in which the programs are in 
effect. The reports were to assess the benefits of the pilot 
programs to employers and the degree to which they assist in 
the enforcement of the rules regarding the employment of aliens 
and to include recommendations on whether or not the pilot 
programs should be continued or modified.
    The INS has not complied with section 405. The agency 
provided Congress with no report after the third year of 
operation of the basic pilot program and there is no assurance 
that one will be provided within the time limit specified after 
the fourth year of operation. The INS's failure to provide 
reports as required by law is unfortunately a frequent failing 
of the agency. It can only be hoped that once the immigration 
functions of the Justice Department are restructured and the 
INS disbanded will such negligence and/or malfeasance be a 
thing of the past.
    In any event, this Committee must now decide upon 
reauthorization of the basic pilot program in absence of agency 
reports on the program. The Committee has received word from 
businesses and trade associations in the meat packing and 
processing industry that the basic pilot program has been a 
great success and that they favor a 2-year extension of the 
program. They stated in a letter to the Committee that:

        While the program does not provide 100% deterrence of 
        persons seeking unauthorized employment, it is far 
        superior to the current practice. . . .

        . . .

        Employers have embraced the additional tools granted by 
        Congress to confirm that new employees are legally 
        eligible to work. These pilot programs enhance the 
        current . . . employment verification process by 
        providing employers with greater assurances that they 
        are not hiring unauthorized aliens and by establishing 
        larger obstacles to aliens seeking to work illegally. 
        This result is accomplished without disruption or 
        inconvenience to U.S. citizens or aliens authorized to 
        work.\5\
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    \5\ See letter from the American Meat Institute, Cargill, Inc., 
ConAgra Foods, Inc., Farmland Industries, Inc., IBP, Inc., the National 
Chicken Council, the National Turkey Federation, Seaboard Corporation, 
Smithfield Foods, Inc., and Tyson Foods, to House Judiciary Committee 
Chairman F. James Sensenbrenner, Jr. (October 9, 2001).

    The Committee has received no adverse comment regarding the 
basic pilot program.

                             III. H.R. 3030

    In light of the continuing relevance of the original goals 
of the basic pilot program and the evidence of its successful 
operation, the Committee supports a 2-year extension. H.R. 3030 
provides such an extension.
    The Committee can only hope that when it is again called 
upon to consider the pilot program it will have in hand 
evaluation of the program's operation from the Justice 
Department.

                                Hearings

    No hearings were held on H.R. 3030.

                        Committee Consideration

    On November 1, 2001, the Subcommittee on Immigration and 
Claims met in open session and ordered favorably reported the 
bill H.R. 3030, by a voice vote, a quorum being present. On 
November 15, 2001, the Committee met in open session and 
ordered favorably reported the bill H.R. 3030 with amendment by 
a voice vote, a quorum being present.

                         Vote of the Committee

    There were no recorded votes on H.R. 3030.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee reports that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

                    Performance Goals and Objectives

    H.R. 3030 does not authorize funding. Therefore, clause 
3(c) of rule XIII of the Rules of the House of Representatives 
is inapplicable.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of House Rule XIII is inapplicable because 
this legislation does not provide new budgetary authority or 
increased tax expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 3030, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, November 29, 2001.
Hon. F. James Sensenbrenner, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3030, the Basic 
Pilot Extension Act of 2001.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz, who can be reached at 226-2860.
            Sincerely,
                                  Dan L. Crippen, Director.

Enclosure

cc:
        Honorable John Conyers, Jr.
        Ranking Member
H.R. 3030--Basic Pilot Extension Act of 2001.
    CBO estimates that implementing H.R. 3030 would cost about 
$1 million in each of fiscal years 2002 and 2003 and less than 
$500,000 annually over the 2004-2005 period, assuming the 
availability of appropriations. The bill would not affect 
direct spending or receipts, so pay-as-you-go procedures would 
not apply. H.R. 3030 would impose a private-sector mandate, as 
defined by the Unfunded Mandates Reform Act (UMRA), but CBO 
estimates that the direct cost of the mandate would fall well 
below the annual threshold established by UMRA ($113 million in 
2001, adjusted annually for inflation). The bill contains no 
intergovernmental mandates as defined in UMRA and would impose 
no costs on state, local, or tribal governments.
    The Illegal Immigration Reform and Immigrant Responsibility 
Act of 1996 directed the Immigration and Naturalization Service 
(INS) and the Social Security Administration (SSA) to establish 
three pilot programs, each lasting 4 years, to assist employers 
in confirming the eligibility of prospective employees to work 
in the United States. The programs provide employers with 
software, training, and access to INS and SSA databases to 
determine work eligibility. The major pilot program started in 
1997 and will end in 2001, while the two other programs began 
in 1999 and will terminate in 2003. H.R. 3030 would extend the 
length of each program by 2 years.
    According to the INS and the SSA, the agencies spend a 
total of about $1 million annually to operate the programs. 
Implementing H.R. 3030 would extend the major pilot program 
through the end of fiscal year 2003 and would extend the other 
two programs until the middle of fiscal year 2005. Based on 
information from the two agencies, CBO estimates that the bill 
would cost about $1 million annually in 2002 and 2003, and less 
than $500,000 annually in 2004 and 2005, all from appropriated 
funds.
    H.R. 3030 would impose a private-sector mandate by 
requiring certain employers to participate in the pilot 
programs. Participation in the programs is voluntary except for 
employers who have been found to have violated certain 
immigration laws. According to the INS, one company in Texas is 
required to participate in the pilot programs. Therefore, CBO 
estimates that the direct cost, if any, to comply with the 
mandate would be minimal and would fall well below the annual 
threshold established by UMRA ($113 million in 2001, adjusted 
annually for inflation).
    The CBO staff contacts for this estimate are Mark Grabowicz 
(for Federal costs), who can be reached at 226-2860, and Paige 
Piper/Bach (for impacts on the private sector), who can be 
reached at 226-2940. This estimate was approved by Robert A. 
Sunshine, Assistant Director for Budget Analysis.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8, clause 4 of the 
Constitution.

               Section-by-Section Analysis and Discussion

Section 1. Short Title.
    This Act may be cited as the ``Basic Pilot Extension Act of 
2001.''
Section 2. Extension of Programs.
    Section 2 amends section 401(b) of IIRIRA (8 U.S.C. sec. 
1324a note) to provide that unless the Congress provides 
otherwise, the Attorney General shall terminate a pilot program 
established by title IV of IIRIRA at the end of the 6-year 
period beginning on the first day the pilot program is in 
effect. This will apply not only to the basic pilot program 
(section 403(a) of IIRIRA) but also to the ``citizen 
attestation pilot program'' (section 403(b)) and the ``machine-
readable-document pilot program'' (section 403(c)). However, 
the citizen attestation pilot program began operation in June 
1999 and the machine-readable-document pilot program began in 
May 1999 and they are not about to expire.
Section 3. Effective Date.
    Section 3 provides that the amendment made by this Act 
shall take effect on the date of the enactment of the Act.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

      SECTION 401 OF THE ILLEGAL IMMIGRATION REFORM AND IMMIGRANT 
                       RESPONSIBILITY ACT OF 1996

SEC. 401. ESTABLISHMENT OF PROGRAMS.

    (a) * * *
    (b) Implementation Deadline; Termination.--The Attorney 
General shall implement the pilot programs in a manner that 
permits persons and other entities to have elections under 
section 402 of this division made and in effect no later than 1 
year after the date of the enactment of this Act. Unless the 
Congress otherwise provides, the Attorney General shall 
terminate a pilot program at the end of the [4-year] 6-year 
period beginning on the first day the pilot program is in 
effect.

           *       *       *       *       *       *       *

                     Committee Jurisdiction Letters

                           Markup Transcript

                            BUSINESS MEETING

                      THURSDAY, NOVEMBER 15, 2001

                  House of Representatives,
                                Committee on the Judiciary,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 10:10 a.m., in 
Room 2141, Rayburn House Office Building, Hon. F. James 
Sensenbrenner, Jr. (Chairman of the Committee) presiding.
    Chairman Sensenbrenner. The Committee will be in order.
    The next item on the agenda is the adoption of H.R. 3030 to 
extend the Basic Pilot employment verification system and for 
other purposes.
    The Chair recognizes the gentleman from Pennsylvania, Mr. 
Gekas, the Chairman of the Subcommittee on Immigration and 
Claims.
    Mr. Gekas. Thank you, Mr. Chairman.
    The Subcommittee on Immigration and Claims reports 
favorably the bill H.R. 3030 and moves its favorable 
recommendation to the full House.
    Chairman Sensenbrenner. Without objection, the bill H.R. 
3030 will be considered as read and open for amendment at any 
point.
    [The bill, H.R. 3030, follows:]
      
      

  

    Ms. Jackson Lee. Mr. Chairman?
    Chairman Sensenbrenner. The Chair recognizes the gentleman 
from Pennsylvania to strike the last word.
    Mr. Gekas. I thank the Chair.
    The Chair in its introductory remarks alluded to the fact 
that this is a program that is already in place and working 
very handsomely. The purpose of this legislation here today is 
to extend the validity of that program beyond its expiration 
date of November 30, 2001.
    In 1986, we made it illegal for employers to knowingly hire 
people who are aliens ineligible to work in the United States. 
We decided as a Congress to crack down on that. And then we 
imposed on employers stringent rules on what documentation they 
should accept follow and what inquiries they should conduct, et 
cetera, and pretty soon it became a mess on both sides of the 
application desk, the employer and the employee.
    What the Pilot Program did 5 years ago was to simplify the 
process and put the employer under the onus of checking the 
Social Security and INS numbers of the prospective employee. 
And the law would allow the employer to rely on that, thus 
everybody could go merrily on his way in the employer-employee 
relationship.
    The pilot program has worked. It is supported by countless 
organizations, who have found it feasible and workable.
    And I ask the Members to support the extension of this 
program.
    Chairman Sensenbrenner. The gentlewoman from Texas, Ms. 
Jackson Lee.
    Ms. Jackson Lee. I thank the gentleman and the Chairman and 
the Chairman of the Subcommittee.
    I join in supporting the extension of this pilot program, 
acknowledging in the backdrop of all of our minds September 
11th.
    This will be helpful to employers around the country, but 
in particular to areas where there is a large number of 
immigrants. This will protect the immigrants with legal 
documentation, and it will protect employers as well.
    And so I look to this as a fair bill that addresses the 
posture that I think we would like to be in, in this country, 
which is a respect for immigration and for laws.
    This should complement, ultimately, legislation and a 
reassessment our vocational visa and student visa program, 
which will allow us to be more accurate in who obtains those 
visas and, as well, be able to ascertain the right utilization 
of them.
    In particular, I would just add the necessity of having to 
determine whether someone is coming to be trained as an airline 
pilot for good reasons or negative reasons. That has nothing to 
do with this particular legislation but certainly ties into 
individuals who are documented but, as well, documented and 
using visas for the right reason.
    So I support this legislation because I think it helps the 
basic policies of immigration law. And that is to help create a 
pathway for access to legalization and to applaud those who 
have legal standing.
    I yield back.
    [The statement of Ms. Jackson Lee follows:]
       Prepared Statement of the Honorable Sheila Jackson Lee, a 
           Representative in Congress From the State of Texas
    Thank you Mr. Chairman. I am gratified to be here today to vote on 
a bill that will improve the employment verification process. As you 
know, the Congress is exploring new ways, methods, and techniques to 
ensure the security and integrity of the way in which we admit and 
track aliens who apply for non-immigrant visas. We do live in dangerous 
times. This bill is extending a pilot program that would improve and 
ensure integrity in the employment verification process.
    This bill, introduced by Congressman Tom Latham extends the Basic 
Pilot employment verification program under expedited procedures. The 
Basic employment verification system is a program that many companies 
use to ensure that new companies are legal. This program is a voluntary 
electronic employment verification system, which allow employers to 
verify I-9 documents. Companies with facilities in any of the ``pilot'' 
states may use the verification program throughout all of their 
facilities, including states outside the program. Approximately 2,000 
employers are presently using the Basic Pilot Program.
    In Title IV of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996, Congress authorized the Immigration and 
Naturalization Service to conduct voluntary pilot programs that allow 
these participating employers to access by computer certain 
governmental databases for purposes of new employment verification. 
This program allows employers signing a memorandum of understanding 
(MOU) with the INS to query an INS-Social Security Administration (SSA) 
data base regarding the work-authorization status of new employment 
applicants, instead of simply recording and retaining the numbers of 
documents that such applicants chose to submit. The Basic Pilot Program 
provides greater ease of verification for employers and employees and 
greater deterrence of the use of fraudulent INS and SSA documents.
    Industries such as meat packing and food processing have stated an 
interest in cooperating with the INS to maximize its ability to ensure 
its interest in cooperating with the INS to maximize its ability to 
ensure its workforce is authorized. Many believe that while the program 
does not provide 100% deterrence of persons seeking unauthorized 
employment, it is far superior to the current practice of recording in 
I-9 forms the numbers of documents physically presented by new 
employees.
    I will support this legislation because it is needed because 
Section 401(b) of the 1996 Act states that ``the . . . Attorney General 
shall terminate a pilot program at the end of the 4-year period 
beginning on the first day the pilot program is in effect.'' H.R. 3030 
extends the life of the program by two years, from four years to six 
years. This pilot program enhances the current I-9 form employment 
verification process by providing employers with greater assurances 
that they are not hiring unauthorized aliens and by establishing larger 
obstacles to aliens seeking to work illegally.
    I support this legislation.

    Chairman Sensenbrenner. Are there amendments?
    Hearing none, the Chair notes the presence of a reporting 
quorum. The question occurs on the motion to report the bill 
H.R. 3030 favorably.
    Those in favor will say aye.
    Opposed, no.
    The ayes appear to have it. The ayes have it. The motion to 
report favorably is agreed to.
    Without objection, the Chairman is authorized to move to go 
to conference pursuant to House rules. Without objection, the 
staff is directed to make any technical and conforming changes. 
And all Members will be given 2 days as provided by House rules 
in which to submit additional dissenting, supplemental, or 
minority views.
    [Intervening business.]
    The Chair thanks the Members for their indulgence and 
support. This concludes the business on the notice, and the 
Committee is adjourned.
    [Whereupon, at 11:06 a.m., the Committee was adjourned.]

                                  
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