```

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2028 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2028

To amend the Social Security Act to prevent unauthorized earnings from 
 being credited toward benefits under title II of such Act and to make 
improvements in provisions governing totalization agreements, to amend 
  the Social Security Act and the Immigration and Nationality Act to 
  prevent unauthorized employment, and to improve coordination of the 
            provisions of such Acts, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 22, 2009

   Mr. Sam Johnson of Texas (for himself, Ms. Giffords, Mr. Brady of 
 Texas, Mr. Moore of Kansas, Mr. Ryan of Wisconsin, and Mr. Mitchell) 
 introduced the following bill; which was referred to the Committee on 
   the Judiciary, and in addition to the Committees on Education and 
   Labor, Rules, and Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To amend the Social Security Act to prevent unauthorized earnings from 
 being credited toward benefits under title II of such Act and to make 
improvements in provisions governing totalization agreements, to amend 
  the Social Security Act and the Immigration and Nationality Act to 
  prevent unauthorized employment, and to improve coordination of the 
            provisions of such Acts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``New Employee Verification Act of 
2009''.

              TITLE I--ELECTRONIC EMPLOYMENT VERIFICATION

               Subtitle A--Implementation of New Systems

SEC. 101. EXTENSTION OF BASIC PILOT UNTIL NEW SYSTEMS OPERATING.

    Section 401(b) of the Illegal Immigration Reform and Immigrant 
Responsibility Act of 1996 (8 U.S.C. 1324a note) is amended--
            (1) by striking ``11-year period'' and inserting ``16-year 
        period''; and
            (2) by striking the period at the end and inserting the 
        following: ``, except that this subtitle is repealed effective 
        on the date that is 36 months after the date of the enactment 
        of the New Employee Verification Act of 2009.''.

SEC. 102. AMENDMENTS TO IMMIGRATION LAWS TO IMPROVE EMPLOYMENT 
              AUTHORIZATION VERIFICATION.

    (a) In General.--
            (1) Change in employment eligibility verification 
        process.--Section 274A of the Immigration and Nationality Act 
        (8 U.S.C. 1324a) is amended--
                    (A) in subsection (a)(1)(B)--
                            (i) in clause (i), by striking ``subsection 
                        (b)'' and inserting ``(b), (c), or (d)''; and
                            (ii) in clause (ii), by striking 
                        ``subsection (b).'' and inserting ``subsection 
                        (b), (c), or (d).''; and
                    (B) in subsection (b), in the matter preceding 
                paragraph (1), by striking ``United States,'' and 
                inserting ``United States who is subject to compliance 
                with this subsection,''.
            (2) Verification via eevs and seevs systems.--Subsections 
        (c) and (d) of section 274A of the Immigration and Nationality 
        Act (8 U.S.C. 1324a) are amended to read as follows:
    ``(c) Electronic Employment Verification System.--
            ``(1) Enrollment.--
                    ``(A) In general.--Every person or other entity 
                subject to subsection (a)(1)(B), and that is not in 
                compliance with such subsection by reason of compliance 
                with subsection (d), shall participate in the 
                Electronic Employment Verification System established 
                under section 235(a) of the Social Security Act (the 
                `EEVS') on a schedule established in accordance with 
                section 235(a)(4) of the Social Security Act with 
                respect to all hiring, recruitment, and referral 
                described in subsection (a)(1)(B) occurring after the 
                earlier of the date on which the entity--
                            ``(i) is required to register under this 
                        paragraph; or
                            ``(ii) voluntarily registers.
                    ``(B) Voluntary participation.--The Secretary of 
                Homeland Security, in consultation with the 
                Commissioner of Social Security, may permit any person 
                or other entity subject to subsection (a)(1)(B), and 
                that is not yet required to participate in the EEVS 
                under section 235(a)(4) of the Social Security Act to 
                participate in the EEVS on a voluntary basis.
                    ``(C) Expedited participation.--The Secretary of 
                Homeland Security, on a case-by-case or classwide 
                basis, may require any person or other entity subject 
                to subsection (a)(1)(B), and that is not yet required 
                to participate in the EEVS under section 235(a)(4) of 
                the Social Security Act, to participate in the EEVS 
                (or, alternatively, the Secure Employment Eligibility 
                Verification System established under section 235(b) of 
                the Social Security Act (the `SEEVS')) on an expedited 
                basis if the Secretary designates such person or entity 
                as--
                            ``(i) employing individuals having access 
                        to locations or information that have a direct 
                        impact on the security of the United States; or
                            ``(ii) having engaged in material 
                        violations of this section.
                    ``(D) Requirement to notify.--The Secretary of 
                Homeland Security shall notify persons or entities 
                required to register not less than 60 days prior to the 
                effective date of such requirement through publication 
                in the Federal Register regarding the requirement for 
                participation in the EEVS under subparagraphs (A) and 
                (C)(i) and by mail regarding the requirement for 
                participation in the EEVS under subparagraph (C)(ii). 
                Such notice shall include the training materials 
                described in section 235(a)(5) of the Social Security 
                Act.
                    ``(E) Registration.--A person or other entity shall 
                register to participate in the EEVS or the SEEVS in the 
                manner prescribed by the Commissioner of Social 
                Security prior to the date the person or entity is 
                required or permitted to submit information with 
                respect to an individual under this subsection.
                    ``(F) Consequence of failure to participate.--If a 
                person or other entity is required or has elected to 
                participate in the EEVS or the SEEVS and fails to 
                comply with the requirements thereof, such failure--
                            ``(i) shall be treated as a violation of 
                        subsection (a)(1)(B) punishable under 
                        subsection (e)(5); and
                            ``(ii) shall create a rebuttable 
                        presumption that the person or other entity has 
                        violated subsection (a)(1)(A), except that such 
                        presumption shall not apply to a prosecution 
                        under subsection (f)(1).
                    ``(G) Protection from liability.--No person or 
                other entity that participates in the EEVS or the SEEVS 
                shall be liable under any law for any employment-
                related action taken with respect to an individual in 
                reliance on information provided by the EEVS or the 
                SEEVS (as applicable) in connection with such 
                participation, if such action is taken in accordance 
                with the requirements of this subsection, section 235 
                of the Social Security Act, and applicable regulations 
                prescribed thereunder.
                    ``(H) Exclusive means of verification.--If a person 
                or other entity is required or has elected to 
                participate in the EEVS, subsections (b) and (d) shall 
                not apply to the person or other entity.
            ``(2) Obtaining documents for eevs.--
                    ``(A) Information required.--A person or other 
                entity registered to participate in the EEVS shall, 
                with respect to the hiring, or recruiting or referring 
                for a fee, any individual for employment in the United 
                States, obtain from the individual--
                            ``(i) the individual's name and date of 
                        birth;
                            ``(ii) the individual's social security 
                        account number; and
                            ``(iii) in the case of an individual who 
                        does not claim to be a national of the United 
                        States, such alien identification or 
                        authorization number as the Secretary shall 
                        require.
                    ``(B) Documents required.--The person or entity 
                shall require that the individual produce one of the 
                following documents consistent with the status claimed 
                by the individual and bearing identifying information 
                consistent with that obtained from the individual:
                            ``(i) In the case of an individual who is a 
                        national of the United States--
                                    ``(I) a United States passport; or
                                    ``(II) a driver's license or 
                                identity card, issued by a State, the 
                                Commonwealth of the Northern Mariana 
                                Islands, or an outlying possession of 
                                the United States, that contains a 
                                photograph of the individual, other 
                                identifying information (including the 
                                individual's name, date of birth, 
                                gender, and address) and security 
                                features to make the license or card 
                                resistant to tampering, counterfeiting, 
                                and fraudulent use.
                            ``(ii) In the case of an alien lawfully 
                        admitted for permanent residence in the United 
                        States, a permanent resident card, as specified 
                        by the Secretary, that contains a photograph of 
                        the individual, other identifying information 
                        (including name, date of birth, gender, and 
                        address), and contains security features to 
                        make the document resistant to tampering, 
                        counterfeiting, and fraudulent use.
                            ``(iii) In the case of an alien who is 
                        authorized under the Immigration and 
                        Nationality Act or by the Secretary of Homeland 
                        Security to be employed in the United States, 
                        an employment authorization card, issued by the 
                        Secretary that contains a photograph of the 
                        individual, other identifying information 
                        (including name, date of birth, gender, and 
                        address), and security features to make the 
                        document resistant to tampering, 
                        counterfeiting, and fraudulent use.
                            ``(iv) In the case of an individual who is 
                        unable to obtain a document described in clause 
                        (i), (ii), or (iii), a document designated by 
                        the Secretary that contains a photograph of the 
                        individual, other identifying information 
                        (including name, date of birth, gender, and 
                        address) and security features to make the 
                        document resistant to tampering, 
                        counterfeiting, and fraudulent use.
                    ``(C) Unacceptable documents.--If the Secretary 
                finds that a document or class of documents described 
                in clause (ii) is not reliable to establish identity or 
                is being used fraudulently to an unacceptable degree, 
                the Secretary shall prohibit, or impose conditions, on 
                the use of such documents or class of documents for 
                purposes of this subsection. The Secretary shall 
                publish notice of any findings under this clause in the 
                Federal Register.
            ``(3) Attestation.--A person or other entity registered to 
        participate in the EEVS shall attest, under penalty of perjury 
        using an electronic signature or code approved by the 
        Commissioner of Social Security through an internet or 
        telephonic connection prescribed by the Commissioner, that 
        registrant has obtained the information required by paragraph 
        (2)(A) and examined a consistent document required by paragraph 
        (2)(B).
            ``(4) Consequences of certain eevs determinations.--
                    ``(A) Mandatory dismissal if no contest of initial 
                disapproval.--If an individual does not contest the 
                initial disapproval notice described in section 
                235(a)(3)(C)(ii) of the Social Security Act by the end 
                of the 10-day period beginning on the date on which the 
                notice is received from the employer, the disapproval 
                shall become final, and the employer shall, within 3 
                business days after the end of such 10-day period, 
                terminate the employment, recruitment, or referral of 
                the individual by the employer.
                    ``(B) Mandatory dismissal if disapproval notice 
                issued after contest.--In any case in which a 
                disapproval notice described in section 235(a)(3)(C)(v) 
                of the Social Security Act is issued, the employer 
                shall, within 3 business days after receipt of such 
                notice, terminate the employment, recruitment, or 
                referral of the individual who is the subject of the 
                notice.
                    ``(C) Rule on dismissal.--An employer shall not 
                terminate an employee until receiving a final 
                disapproval notice, unless there is good cause for 
                dismissal for a reason other than the failure to obtain 
                approval of employment eligibility.
            ``(5) Presumption of violation.--If a person or other 
        entity registered to participate in the EEVS continues, in 
        violation of this subparagraph, to employ, recruit, or refer an 
        individual, a rebuttable presumption is created that the 
        registrant has violated subsections (a)(1)(A) and (a)(2) of 
        this section, except that such presumption shall not apply to a 
        prosecution under subsection (f)(1) of this section.
    ``(d) Secure Employment Eligibility Verification System.--
            ``(1) In general.--Beginning with the first day of 
        operation of the SEEVS a person or other entity subject to 
        subsection (a)(1)(B) of this section may elect to comply with 
        such subsection by participating in the SEEVS. Such 
        participation shall be in lieu of participation in the EEVS 
        established under section 235(a) of the Social Security Act. 
        Such participation shall be subject to the requirements of 
        section 235(b) of such Act and the regulations issued under 
        such section.
            ``(2) Requirement to notify.--The Secretary of Homeland 
        Security shall notify persons or entities subject to subsection 
        (a)(1)(B) about the opportunity to participate in the SEEVS not 
        less than 60 days prior to the first day of operation of the 
        system.
            ``(3) Presumption.--Participation in SEEVS by an employer 
        that follows the required procedures of the system shall create 
        a presumption that the employer has not violated the 
        requirements of this Act with respect to its hiring decisions, 
        which presumption shall only be overcome by clear and 
        convincing evidence of willful noncompliance resulting in the 
        hiring of an unauthorized employee.
            ``(4) Exclusive means of verification.--If a person or 
        other entity is required or has elected to participate in the 
        SEEVS, subsections (b) and (c) shall not apply to the person or 
        other entity.
            ``(5) Compliance with eevs requirements upon termination of 
        election.--If a person or other entity terminates its election 
        to participate in the SEEVS, the person or entity shall be 
        subject to compliance with subsection (c) with respect to all 
        employment actions beginning on the date of such 
        termination.''.
    (b) Enhancement of Federal Preemption Standards.--Section 
274A(h)(2) of the Immigration and Nationality Act (8 U.S.C. 
1324a(h)(2)) is amended to read as follows:
            ``(2) Preemption; no national identification card.--
                    ``(A) Preemption.--The provisions of this section 
                preempt any provision of any law of any State or 
                political subdivision thereof or any contract entered 
                into by any State or political subdivision thereof 
                which--
                            ``(i) imposes civil or criminal sanctions 
                        upon employers for actions governed by the Act;
                            ``(ii) requires, authorizes or permits a 
                        system of verification of the immigration 
                        status of employees or employment applicants;
                            ``(iii) requires, authorizes, or permits 
                        the use of a federally mandated employment 
                        verification system for any purpose other than 
                        that required by Federal law, including 
                        verifying status of renters, determining 
                        eligibility for receipt of benefits, enrollment 
                        in school, obtaining or retaining a business or 
                        other license provided by the unit of 
                        government, or conducting a background check; 
                        or
                            ``(iv) requires or prohibits the use of an 
                        immigration status employment verification 
                        system for any purpose, except as required by 
                        Federal law, including without limitation, such 
                        purposes as--
                                    ``(I) a condition of receiving a 
                                government contract;
                                    ``(II) a condition of receiving a 
                                business license; or
                                    ``(III) the basis of assessing a 
                                penalty.
                    ``(B) No authorization of national identification 
                card.--Nothing in this section shall be construed to 
                authorize, directly or indirectly, the issuance or use 
                of national identification cards or the establishment 
                of a national identification card.''.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Homeland Security such sums as may be 
necessary to carry out the amendments made by this section.

SEC. 103. AMENDMENTS TO SOCIAL SECURITY ACT TO IMPROVE EMPLOYMENT 
              AUTHORIZATION VERIFICATION.

    (a) Amendment to Title II.--
            (1) In general.--Title II of the Social Security Act (42 
        U.S.C. 401 et seq.) is amended by adding at the end the 
        following new section:

                  ``electronic employment verification

    ``Sec. 235.  (a) Electronic Employment Verification System.--
            ``(1) In general.--The Commissioner of Social Security, in 
        cooperation and consultation with the Secretary of Health and 
        Human Services, Secretary of Homeland Security, the States, and 
        the Advisory Panel created in subsection (c) of this section, 
        shall establish an Electronic Employment Verification System 
        (the `EEVS') using the employer data entry infrastructure of 
        the National Directory of New Hires (established pursuant to 
        section 453(i)). The EEVS--
                    ``(A) shall, as is appropriate and effective, 
                utilize elements of the employment eligibility 
                confirmation system infrastructure established under 
                section 404 of the Illegal Immigration Reform and 
                Immigrant Responsibility Act of 1996 (Public Law 104-
                208; 110 Stat. 3009-664);
                    ``(B) shall be accessible over the Internet and a 
                toll-free telephone line maintained by the 
                Commissioner; and
                    ``(C) shall have the capacity to determine 
                whether--
                            ``(i) identifying information with respect 
                        to an individual, submitted by the subject 
                        employer, is consistent with the information 
                        maintained by the Commissioner (with respect to 
                        both citizens and nationals of the United 
                        States) and by the Secretary of Homeland 
                        Security (solely with respect to aliens); and
                            ``(ii) the individual is a citizen or 
                        national or is not an unauthorized alien (as 
                        defined in section 274A(h)(3) of the 
                        Immigration and Nationality Act (8 U.S.C. 
                        1324a(h)(3))) with respect to the employment.
            ``(2) Subject employer.--For purposes of this section, the 
        term `subject employer' means, in connection with any 
        individual, an employer (within the meaning of section 
        453A(a)(2)(B)(i)) of such individual and includes any person 
        who recruits or refers for employment such individual for a 
        fee.
            ``(3) Verification of employment authorization.--
                    ``(A) In general.--The Commissioner shall, through 
                the EEVS--
                            ``(i) respond to each inquiry regarding an 
                        individual's identifying information and 
                        eligibility for employment in the United States 
                        for the subject employer, as recorded in the 
                        information maintained by the Commissioner or 
                        the Secretary of Homeland Security as 
                        appropriate, and include in the response the 
                        time period (which may be unlimited) for which 
                        the individual is authorized to be employed in 
                        the United States by such employer, as so 
                        recorded; and
                            ``(ii) maintain a record of each such 
                        inquiry and the information provided in 
                        response to such inquiry.
                    ``(B) Submission to system.--
                            ``(i) In general.--A subject employer shall 
                        submit an inquiry through the EEVS to seek 
                        confirmation of an individual's identifying 
                        information and eligibility for employment in 
                        the United States--
                                    ``(I) in the case of hiring subject 
                                to clause (i) of section 274A(a)(1)(B) 
                                of the Immigration and Nationality Act 
                                (8 U.S.C. 1324a(a)(1)(B)), during the 
                                period beginning on the date of hire 
                                and ending at the end of the third 
                                business day after the employee has 
                                reported for duty; and
                                    ``(II) in the case of recruitment 
                                or referral for a fee subject to clause 
                                (ii) of such section, not later than 
                                the first day of such recruitment or 
                                referral.
                            ``(ii) Required information.--Such inquiry 
                        shall include--
                                    ``(I) the individual's name and 
                                date of birth;
                                    ``(II) the individual's social 
                                security account number;
                                    ``(III) in the case of an 
                                individual who does not claim to be a 
                                national of the United States, such 
                                alien identification or authorization 
                                number as the Secretary shall require.
                    ``(C) EEVS screening of employment eligibility.--
                            ``(i) In general.--As soon as possible, but 
                        not later than 3 business days after a subject 
                        employer submits an inquiry to the EEVS 
                        regarding an individual, the EEVS shall provide 
                        to the subject employer, through the EEVS, 
                        approval or initial disapproval of the 
                        employment of the individual in the United 
                        States.
                            ``(ii) Initial disapproval.--If a subject 
                        employer receives an initial disapproval from 
                        the system for an individual, the subject 
                        employer shall notify such individual of the 
                        issuance of such disapproval in writing, on the 
                        form described in paragraph (5)(E), not later 
                        than 3 business days after receiving such 
                        notice. Such individual shall acknowledge 
                        receipt of such notice in writing on a form 
                        prescribed by the Commissioner. The 
                        Commissioner shall provide the individual an 
                        opportunity to contest the initial disapproval, 
                        and the notification of the individual by the 
                        subject employer shall include a description of 
                        the individual's right to contest such 
                        disapproval.
                            ``(iii) Contest.--If the individual 
                        contests the initial disapproval, the 
                        individual shall submit appropriate information 
                        to contest such notice under the procedures 
                        established by the Commissioner, in 
                        consultation with the Secretary of Homeland 
                        Security, not later than 10 business days after 
                        receiving the notice from the subject employer.
                            ``(iv) No contest.--If the individual does 
                        not contest the initial disapproval notice by 
                        the end of the 10-day period beginning on the 
                        date on which the notice is received from the 
                        subject employer, the disapproval shall become 
                        final, and the subject employer shall record on 
                        the system the appropriate code, in accordance 
                        with regulations of the Commissioner, to 
                        indicate the individual did not contest the 
                        initial disapproval. An individual's failure to 
                        contest an initial disapproval shall not be 
                        considered an admission of any fact with 
                        respect to any violation of this title, the 
                        Immigration and Nationality Act, or any other 
                        provision of law.
                            ``(v) Approval or disapproval.--The 
                        Commissioner, in consultation with the 
                        Secretary of Homeland Security, shall ensure 
                        prompt resolution of the individual's contest 
                        of the initial disapproval and issue either an 
                        approval or disapproval notice to the subject 
                        employer through the EEVS not later than 10 
                        business days after the date on which the 
                        individual contests their initial disapproval.
                    ``(D) Administrative review of disapprovals.--
                            ``(i) In general.--An individual who is 
                        terminated from employment pursuant to 
                        subparagraph (B) or (C) of section 274A(c)(4) 
                        of the Immigration and Nationality Act may, not 
                        later than 30 business days after the date of 
                        such termination, file an appeal of the 
                        disapproval notice resulting in such 
                        termination.
                            ``(ii) Procedures.--The Commissioner and 
                        the Secretary of Homeland Security shall 
                        jointly develop procedures to review appeals 
                        filed under clause (i) and--
                                    ``(I) with respect to disapprovals 
                                based on information maintained by the 
                                Commissioner, the appeal shall be filed 
                                with the Commissioner and the 
                                Commissioner shall make the final 
                                determinations; and
                                    ``(II) with respect to disapprovals 
                                based on information maintained by the 
                                Secretary of Homeland Security, the 
                                appeal shall be filed with the 
                                Secretary of Homeland Security and the 
                                Secretary shall make the final 
                                determinations on such appeals and 
                                provide certification of such final 
                                determinations to the Commissioner.
                            ``(iii) Review for errors.--If a final 
                        determination on an appeal filed under clause 
                        (i) results in approval of an individual's 
                        eligibility to work in the United States, the 
                        Commissioner (in the case of a final 
                        determination under clause (ii)(I)) or the 
                        Secretary of Homeland Security (in the case of 
                        a final determination under clause (ii)(II)) 
                        shall determine if the final disapproval notice 
                        issued for the individual was the result of an 
                        act or omission that was the responsibility of 
                        the individual or from another cause.
                            ``(iv) Compensation for errors.--
                                    ``(I) In general.--In any case in 
                                which the Commissioner makes a 
                                determination under this subparagraph 
                                that the disapproval notice issued for 
                                an individual was caused by a 
                                negligent, reckless, willful, or 
                                malicious act of the Government and was 
                                not caused by an act or omission that 
                                was the responsibility of the 
                                individual, or the Secretary of 
                                Homeland Security provides to the 
                                Commissioner certification of such a 
                                determination pursuant to clause 
                                (ii)(II), the Commissioner shall 
                                certify to the Treasury the amount of 
                                the lost wages and the Secretary of the 
                                Treasury shall compensate the 
                                individual for such lost wages from the 
                                general fund of the Treasury.
                                    ``(II) Calculation of lost wages.--
                                Lost wages shall be calculated based on 
                                the wage rate and work schedule that 
                                prevailed prior to termination. The 
                                individual shall be compensated for 
                                wages lost beginning on the first 
                                scheduled work day after employment was 
                                terminated and ending 180 days after 
                                completion of the administrative review 
                                process described in this paragraph or 
                                the day after the individual is 
                                reinstated or obtains employment 
                                elsewhere, whichever occurs first.
                                    ``(III) Limitation on 
                                compensation.--For purposes of 
                                determining an individual's 
                                compensation for the loss of 
                                employment, such compensation shall be 
                                reduced by any compensation earned from 
                                any employment during such period and 
                                shall not include any period in which 
                                the individual was ineligible for 
                                employment in the United States.
                    ``(E) Judicial review of disapprovals.--
                            ``(i) In general.--An individual described 
                        in subparagraph (D)(i) may obtain judicial 
                        review of a final determination under 
                        subparagraph (D) by a civil action commenced 
                        not later than 30 days after the date of such 
                        determination.
                            ``(ii) Jurisdiction.--A civil action for 
                        such judicial review shall be brought in the 
                        district court of the United States for the 
                        judicial district in which the plaintiff 
                        resides, or has a principal place of business, 
                        or, if the plaintiff does not reside or have a 
                        principal place of business within any such 
                        judicial district, in the District Court of the 
                        United States for the District of Columbia.
                            ``(iii) Answer.--A certified copy of the 
                        administrative record compiled during the 
                        administrative review under subparagraph (D), 
                        including the evidence received during such 
                        review, shall be filed in such civil action. 
                        The court shall have power to enter, upon the 
                        pleadings and administrative record, a judgment 
                        affirming, modifying or reversing such 
                        administrative decision, with or without 
                        remanding the matter for further proceedings.
                            ``(iv) Compensation for error.--In cases in 
                        which such judicial review results in a 
                        determination that compensation for lost wages 
                        is due, such compensation shall be computed and 
                        paid in accordance with subparagraph (D)(iv).
            ``(4) Implementation of the eevs.--
                    ``(A) In general.--The Commissioner shall establish 
                a schedule for implementation of the EEVS that is 
                designed to assure that the capacity of all aspects of 
                the EEVS, including the equipment and personnel 
                required to complete reviews of contested initial 
                disapprovals and corrections of erroneous records, 
                within the time limits established by subparagraphs (C) 
                and (D) of paragraph (3).
                    ``(B) Priorities.--The schedule established 
                pursuant to subparagraph (A) shall be established based 
                on the priority of maximizing the deterrent effect on 
                illegal migration and unauthorized employment on the 
                most expeditious basis possible.
                    ``(C) Basic pilot participants.--The schedule 
                established pursuant to subparagraph (A) shall assure 
                that all participants in the basic pilot program for 
                employment eligibility verification described in 
                section 403(a) of the Illegal Immigration Reform and 
                Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 
                note) are registered in the EEVS as soon as feasible 
                after the date of the enactment of the New Employee 
                Verification Act of 2009.
                    ``(D) All others.--Every person that is a subject 
                employer with respect to one or more individuals as of 
                the date of enactment of the New Employee Verification 
                Act of 2009 shall be required to register in the EEVS, 
                or be compliant under subsection (b) of this section, 
                not later than 36 months after such date.
            ``(5) Standards for operation.--
                    ``(A) Policies and procedures.--The Commissioner, 
                the Secretary of Homeland Security, and the Secretary 
                of Health and Human Services shall establish procedures 
                for collecting, updating, removing, and adding data to 
                the EEVS to ensure the accuracy and integrity of the 
                data and to limit access to the data to authorized 
                personnel.
                    ``(B) Public education.--Not later than 6 months 
                before the first registration date, the Commissioner, 
                in cooperation with the Secretary of Health and Human 
                Services, the Secretary of Homeland Security, and the 
                States, shall develop a public education campaign 
                regarding the obligations imposed by this section, as 
                well as instructional materials provided without cost 
                to the public regarding how to use the EEVS.
                    ``(C) Registrant training.--Not later than 6 months 
                before the first registration date, the Commissioner, 
                in cooperation with the Secretary of Homeland Security, 
                the Secretary of Health and Human Services, and the 
                States, shall institute a comprehensive program of 
                outreach and training for employers regarding the 
                operation and benefits of using the verification 
                systems described in this section and informing them of 
                ongoing assistance resources for the implementation and 
                use of such systems.
                    ``(D) EEVS design and technology standards.--The 
                Commissioner and the Secretary of Homeland Security 
                shall ensure the following with respect to the 
                development and operation of the EEVS:
                            ``(i) The development and implementation of 
                        the system in accordance with technology 
                        standards that are sufficiently comprehensive 
                        and robust to verify the employment eligibility 
                        of all persons applying for employment in the 
                        United States at all times.
                            ``(ii) The dependable operation of a cross-
                        agency, cross-platform electronic system that 
                        is a cost-effective, efficient, fully 
                        integrated means to share identifying 
                        information, immigration information, and 
                        Social Security information necessary to 
                        confirm the employment eligibility of all 
                        persons seeking employment.
                            ``(iii) The real-time data entry of 
                        employment eligibility with respect to all 
                        individuals that is accomplished on a 
                        contemporaneous basis with the establishment or 
                        change of immigration, citizenship, work 
                        authorization, or identifying information 
                        maintained by the Commissioner, such that this 
                        information is immediately available to be 
                        accessed through the EEVS.
                            ``(iv) The operation of EEVS on a fully 
                        electronic basis that shall not require the 
                        creation or maintenance of paper records or 
                        electronic copies of documents other than a log 
                        of inquiries and responses for those employers 
                        that employ telephonic access to the system.
                            ``(v) The accessibility to all employers 
                        via the Internet and telephone through a system 
                        that permits a subject employer to utilize any 
                        appropriate technology to access the EEVS, 
                        including technology that is maintained or 
                        operated by the private sector vendors.
                            ``(vi) The provision of an expeditious 
                        method exists for correcting errors regarding 
                        immigration, citizenship, work authorization, 
                        and identifying information maintained by the 
                        Commissioner, or any other relevant data in a 
                        timely and effective manner, for determining 
                        the source of data to ascertain its accuracy 
                        and correcting procedures known to lead to 
                        errors in such data.
                            ``(vii) The enforcement of strict 
                        limitations on agency and contractor personnel 
                        authorized to input data into the EEVS, and 
                        identify classes of prejudicial information 
                        requiring authorization of supervisory 
                        personnel before entry into the System.
                            ``(viii) The operation of a centralized 
                        system through which individuals who have been 
                        notified of ineligibility for employment or 
                        benefits based on their immigration, 
                        citizenship, work authorization, or identifying 
                        information maintained by the Commissioner can 
                        seek to correct erroneous or inaccurate 
                        information within specific time schedules for 
                        reviewing data correction requests, rendering 
                        decisions on such requests, and implementing 
                        appropriate corrective action in a timely 
                        manner.
                            ``(ix) The provision of a 24-hour Internet 
                        and telephonic help-desk available to respond 
                        to questions about the use of the system as 
                        well as to resolve questions about employment 
                        status.
                            ``(x) The Commissioner and the Secretary of 
                        Homeland Security shall conduct a study of the 
                        feasibility of a mechanism to update all Social 
                        Security records on a continuous basis with 
                        immigration and work authorization status to 
                        permit the Commissioner to respond to employer 
                        inquiries pursuant to subparagraph (C) without 
                        the necessity of accessing of other data bases. 
                        Study findings shall be provided to the 
                        Committees of jurisdiction in the Congress not 
                        later than one year after the date of the 
                        enactment of this section.
                    ``(E) Notices to employees.--The Commissioner, in 
                consultation with the Secretary of Homeland Security, 
                shall develop a written form for employers to provide 
                to individuals for whom they receive an initial 
                disapproval and disapproval notices that shall 
                include--
                            ``(i) in the case of an initial 
                        disapproval--
                                    ``(I) the right to contest such 
                                initial disapproval; and
                                    ``(II) contact information for 
                                initiating such contest, including the 
                                appropriate agency to contact and the 
                                procedures to follow in doing so; and
                            ``(ii) in the case of a disapproval, the 
                        right to appeal the disapproval, including the 
                        appropriate agency to contact and the 
                        procedures to follow in doing so.
                    ``(F) Additional responsibilities of commissioner 
                in support of the eevs.--The Commissioner shall 
                establish--
                            ``(i) a reliable, secure method for 
                        determining, through the EEVS--
                                    ``(I) whether the name, date of 
                                birth, and social security account 
                                number of an individual provided in an 
                                inquiry made to the EEVS by an employer 
                                is consistent with such information 
                                maintained by the Commissioner;
                                    ``(II) the citizenship status 
                                associated with such name and social 
                                security account number, according to 
                                the records maintained by the 
                                Commissioner;
                                    ``(III) whether the name and number 
                                belongs to an individual who is 
                                deceased or a child, according to the 
                                records maintained by the Commissioner;
                                    ``(IV) whether the name belongs to 
                                an individual whose record has a fraud 
                                indicator; and
                                    ``(V) whether the name and number 
                                is blocked in accordance with paragraph 
                                (7); and
                            ``(ii) in consultation with the Secretary 
                        of Homeland Security, a reliable, secure method 
                        for an individual to verify such individual's 
                        own eligibility for employment in the United 
                        States.
                    ``(G) Annual report and certification.--Not later 
                than 24 months after the date of the enactment of the 
                New Employee Verification Act of 2009, and annually 
                thereafter, the Commissioner, in cooperation with the 
                Secretary of Homeland Security, shall submit to the 
                Congress a report that includes--
                            ``(i) a certified determination of the 
                        percentage of inquiries to the EEVS and SEEVS 
                        that result in a final approval or disapproval 
                        notice, within the applicable period described 
                        in paragraph (3)(C), that are not overturned in 
                        a subsequent appeal, and if that percentage is 
                        less than 99 percent of the cases, the steps 
                        being taken to bring the percentage to 99 
                        percent or higher within specified time frames; 
                        and
                            ``(ii) an assessment of the privacy and 
                        security of the EEVS and SEEVS.
                    ``(H) Enumeration.--The Commissioner shall seek to 
                assign social security account numbers to all aliens 
                who are authorized to work in the United States, at the 
                time of entry to the United States or at the time of 
                acquisition of work authorized status in accordance 
                with section 205(c)(2)(B)(i)(I) by employing 
                enumeration procedures administered jointly by the 
                Commissioner, the Secretary of State, and the Secretary 
                of Homeland Security.
            ``(6) Limitation on collection and use of data.--
                    ``(A) Collection.--
                            ``(i) In general.--The EEVS shall collect 
                        and maintain only the minimum data necessary to 
                        facilitate the successful operation of the 
                        EEVS, and in no case shall the data be other 
                        than information necessary--
                                    ``(I) to register subject 
                                employers;
                                    ``(II) to initiate and respond to 
                                inquiries or contests;
                                    ``(III) to establish and enforce 
                                compliance with paragraphs (3) and (4); 
                                or
                                    ``(IV) to detect and prevent 
                                employment related identity fraud.
                            ``(ii) Penalties.--Any officer, employee, 
                        or contractor who willfully and knowingly 
                        collects and maintains data in the EEVS other 
                        than data described in clause (i) shall be, for 
                        each such violation, guilty of a misdemeanor 
                        and, upon conviction, fined as provided in 
                        title 18, United States Code, imprisoned for 
                        not more than 1 year, or both.
                    ``(B) Use.--Whoever willfully and knowingly 
                accesses, discloses, or uses any information obtained 
                or maintained by the EEVS--
                            ``(i) for the purpose of committing 
                        identity fraud, or assisting another person in 
                        committing identity fraud, as defined in 
                        section 1028 of title 18, United States Code;
                            ``(ii) for the purpose of unlawfully 
                        obtaining employment in the United States or 
                        unlawfully obtaining employment in the United 
                        States for any other person; or
                            ``(iii) for any purpose other than as 
                        provided for under any provision of law,
                shall be guilty of a felony and upon conviction shall 
                be fined under title 18, United States Code, or be 
                imprisoned for not more than 5 years, or both.
                    ``(C) Exceptions.--Nothing in subparagraph (A) or 
                (B) may be construed to limit the collection, 
                maintenance, or use of data by the Commissioner of 
                Internal Revenue or the Commissioner of Social Security 
                as provided by law.
            ``(7) Right to block use of number.--The Commissioner shall 
        establish secure procedures under which an individual who has 
        been assigned a social security account number may block the 
        use of such number under the EEVS and may remove any such 
        block. Such procedures shall ensure the authentication of the 
        identity of such individual.
    ``(b) Secure Employment Eligibility Verification System.--
            ``(1) In general.--Not later than 18 months after the date 
        of the enactment of the New Employee Verification Act of 2009, 
        the Commissioner shall, after consultation with the Secretary 
        of Homeland Security, the Director of the National Institute of 
        Standards and Technology, and the Employment Verification 
        Advisory Panel established under paragraph (5), establish by 
        regulation a Secure Employment Eligibility Verification System 
        (referred to in this subsection as the `SEEVS'). The purpose of 
        the SEEVS shall be to provide for identity authentication and 
        employment eligibility verification with respect to enrolled 
        new employees which shall be available to subject employers who 
        elect to participate in the SEEVS in lieu of the EEVS. Any 
        subject employer may cancel the employer's participation in the 
        SEEVS after one year after electing to participate without 
        prejudice to future participation.
            ``(2) Minimum requirements.--In accordance with the 
        regulations prescribed by the Commissioner pursuant to 
        paragraph (1)--
                    ``(A) Identity authentication and employment 
                eligibility verification by enrollment providers.--The 
                SEEVS shall utilize the services of private sector 
                entities (hereinafter in this subsection referred to as 
                `enrollment providers'), with appropriate expertise, 
                which shall be subject to initial and periodic 
                certification by the Commissioner, to provide--
                            ``(i) enrollment under the SEEVS of new 
                        employees by means of identity authentication 
                        in a manner that provides a high level of 
                        certainty as to their true identities, using 
                        immigration and identifying information 
                        maintained by the Social Security 
                        Administration and the Department of Homeland 
                        Security, review of identity documents, and 
                        background screening verification techniques 
                        using publicly available information;
                            ``(ii) protection of the authenticated 
                        information through biometric technology; and
                            ``(iii) verification of employment 
                        eligibility of such new employees.
                    ``(B) Database management.--The SEEVS shall provide 
                for databases of identifying information which may be 
                retained by the enrollment providers. Databases 
                controlled by the Commissioner and Secretary of 
                Homeland Security shall be maintained in a manner to 
                capture new entries and new status information in a 
                timely manner and to interact with the private 
                enrollment databases to keep employment authorization 
                status and identifying information current on a daily 
                basis. The information maintained in such databases 
                shall be subject to the requirements established 
                pursuant to paragraph (5), except that--
                            ``(i) use of the data shall be limited to 
                        obtaining employment eligibility verification 
                        only, unless the new employee consents to use 
                        the data for other purposes, as provided in 
                        regulations prescribed by the Commissioner, and
                            ``(ii) other identifying traits of the new 
                        employees shall be stored through an encoding 
                        process that keeps their accurate names, dates 
                        of birth, social security numbers, and 
                        immigration identification numbers (if any) 
                        separate, except during electronic 
                        verification.
                    ``(C) Accessibility to employers.--Availability of 
                data maintained in the SEEVS shall be managed so that 
                any subject employer who participates in the SEEVS can 
                obtain verification with respect to any new employee 
                enrolled with any enrollment provider serving in the 
                SEEVS.
                    ``(D) Limitations relating to biometric data.--Any 
                biometric data maintained in the SEEVS relating to any 
                new employee shall be--
                            ``(i) encrypted and segregated from 
                        identifying information relating to the new 
                        employee, and
                            ``(ii) maintained and linked to identifying 
                        information relating to the new employee only 
                        by consent of the new employee for the purpose 
                        of verifying employment eligibility or approved 
                        correction processes or for other purposes 
                        specifically authorized by the employee as 
                        provided in regulations prescribed by the 
                        Commissioner.
                    ``(E) Accuracy of association of data with enrolled 
                new employees.--The enrollment process under the SEEVS 
                shall be managed, in the case of each new employee 
                enrolled in the SEEVS, so as to result in the accurate 
                association of data consisting of name, date of birth, 
                Social Security number, and immigration identification 
                number (if any) with the established identity of the 
                new employee.
                    ``(F) Limitations on accessibility of 
                information.--Data stored in SEEVS relating to any 
                enrolled new employee shall not be accessible to any 
                person other than those operating the SEEVS and for the 
                sole purpose of identity authentication and employment 
                eligibility verification in connection with the new 
                employee, except--
                            ``(i) by the written consent of the new 
                        employee given specifically for each instance 
                        or category of disclosure for any other purpose 
                        as provided in regulations prescribed by the 
                        Commissioner, or
                            ``(ii) in response to a warrant issued by a 
                        judicial authority of competent jurisdiction in 
                        a criminal proceeding.
                    ``(G) Public education.--The Commissioner shall 
                conduct a program of ongoing, comprehensive public 
                education campaign relating to the SEEVS.
            ``(3) Employer responsibilities.--Under the regulations 
        prescribed by the Commissioner pursuant to paragraph (1)--
                    ``(A) Use limited to enrolled new employees.--Use 
                of the SEEVS by subject employers participating in the 
                SEEVS shall be limited to use in connection with the 
                hiring of new employees occurring after their 
                enrollment in the SEEVS.
                    ``(B) Use for limited period.--Use of the SEEVS by 
                any subject employer participating in the SEEVS in 
                connection with any new employee may occur only during 
                the period beginning on the date of hire and ending at 
                the end of the third business day after the employee 
                has reported for duty. Use of the SEEVS with respect to 
                recruitment or referral for a fee may occur only until 
                the first day of such recruitment or referral.
                    ``(C) Responsibility of employers to enroll new 
                employees.--In connection with the hiring by any 
                subject employer of a new employee who has not been 
                previously enrolled in the SEEVS, enrollment of the new 
                employee shall occur only upon application by the 
                subject employer submitted to an enrollment provider, 
                together with payment of any costs associated with the 
                enrollment.
                    ``(D) Limitations on selective use.--No subject 
                employer may use the SEEVS selectively to verify any 
                class, level, or category of new employees. Nothing in 
                this subparagraph shall be construed to preclude 
                subject employers from utilizing the SEEVS in 
                connection with hiring at selected employment locations 
                without implementing such usage at all locations of the 
                employer.
            ``(4) Employee protections.--Under regulations prescribed 
        by the Commissioner pursuant to paragraph (1)--
                    ``(A) Access for employees to correct and update 
                information.--Employees enrolled in the SEEVS shall be 
                provided access to the SEEVS to verify information 
                relating to their employment authorization and readily 
                available processes to correct and update their 
                enrollment information and information relating to 
                employment authorization.
                    ``(B) Same rights and protections as those provided 
                under the eevs.--Employees shall be provided the same 
                rights and protections in connection with responses to 
                inquiries under the SEEVS relating to identity 
                authentication or employment eligibility verification 
                as are afforded under subsection (a).
                    ``(C) Right to cancel enrollment.--Each employee 
                enrolled in the SEEVS shall have the right to cancel 
                such employee's enrollment at any time after the 
                identity authentication and employment eligibility 
                verification processes are completed by the subject 
                employer described in paragraph (3)(C). Such 
                cancellation shall remove from the SEEVS all 
                identifying information and biometrics in connection 
                with such employee without prejudice to future 
                enrollments.
            ``(5) Maintenance of security and confidentiality of 
        information.--
                    ``(A) In general.--Every person who is a subject 
                employer participating in the SEEVS or an officer or 
                contractor of such a subject employer and who has 
                access to any information obtained at any time from the 
                Social Security Administration shall maintain the 
                security and confidentiality of such information. No 
                such person may disclose any file, record, report, 
                paper, or other item containing information so obtained 
                at any time by any such person from the Commissioner of 
                Social Security or from any officer or employee of the 
                Social Security Administration except as the 
                Commissioner of Social Security may by regulations 
                prescribe or as otherwise provided by Federal law.
                    ``(B) Penalty for disclosure in violation of 
                subparagraph (A).--Any person described in subparagraph 
                (A) who violates subparagraph (A) shall be guilty of a 
                felony and, upon conviction thereof, shall be punished 
                by a fine not exceeding $10,000 for each occurrence of 
                a violation, or by imprisonment not exceeding 5 years, 
                or both.
                    ``(C) Penalty for knowing disclosure of fraudulent 
                information.--Any person who willfully and knowingly 
                accesses, discloses, or uses any information which such 
                person purports to be information obtained as described 
                in subparagraph (A) knowing such information to be 
                false shall be guilty of a felony and, upon conviction 
                thereof, shall be punished by a fine not exceeding 
                $10,000 for each occurrence of a violation, or by 
                imprisonment not exceeding 5 years, or both.
                    ``(D) Restitution.--
                            ``(i) In general.--Any Federal court, when 
                        sentencing a defendant convicted of an offense 
                        under this paragraph, may order, in addition to 
                        or in lieu of any other penalty authorized by 
                        law, that the defendant make restitution to the 
                        victims of such offense specified in clause 
                        (ii). Sections 3612, 3663, and 3664 of title 
                        18, United States Code, shall apply with 
                        respect to the issuance and enforcement of 
                        orders of restitution to victims of such 
                        offense under this subparagraph. If the court 
                        does not order restitution, or orders only 
                        partial restitution, under this subsection, the 
                        court shall state on the record the reasons 
                        therefor.
                            ``(ii) Victims specified.--The victims 
                        specified in this clause are the following:
                                    ``(I) Any individual who suffers a 
                                financial loss as a result of the 
                                disclosure described in subparagraph 
                                (B) or (C).
                                    ``(II) The Commissioner of Social 
                                Security, to the extent that the 
                                disclosure described in subparagraph 
                                (B) or (C) results in the inappropriate 
                                payment of a benefit by the 
                                Commissioner.
                            ``(iii) Deposit in the trust funds of 
                        amounts paid as restitution to the 
                        commissioner.--Funds paid to the Commissioner 
                        as restitution pursuant to a court order under 
                        this subparagraph shall be deposited in the 
                        Federal Old-Age and Survivors Insurance Trust 
                        Fund or the Federal Disability Insurance Trust 
                        Fund, as appropriate.
    ``(c) Creation of Employment Verification Advisory Panel.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of the New Employee Verification Act of 2009, 
        the Commissioner shall establish an Employment Verification 
        Advisory Panel (hereinafter in this subsection referred to as 
        the `Advisory Panel').
            ``(2) Membership.--The Advisory Panel should consist of 
        members appointed by the Commissioner, after consulting with 
        the Secretary of Homeland Secretary, the Secretary of the 
        Treasury, the Director of National Institutes of Standards and 
        Technology, and other appropriate Federal agencies. Such 
        members should include representatives from appropriate Federal 
        agencies and private sector representatives of affected 
        industries and groups, including immigration policy, human 
        resource, employer and employee organizations, experts in 
        fields including database security, biometrics, and privacy.
            ``(3) Functions.--The Advisory Panel shall advise the 
        Commissioner and the Secretary of Homeland Security on the 
        implementation and deployment of the verification systems 
        established under this section, including--
                    ``(A) the best means of promoting efficiency, 
                responsiveness, accuracy, public education, user 
                support, interoperability, and cost-effectiveness of 
                the systems established under this section;
                    ``(B) best practices and procedures in order to 
                protect the privacy and identities of individuals 
                enrolled in the systems established under this section;
                    ``(C) standards of database accuracy, error rates, 
                privacy, and measurable compliance that should be met 
                before implementation begins and before each additional 
                phase of implementation; and
                    ``(D) the best means by which data obtained through 
                the EEVS and the SEEVS may be used to timely improve 
                the accuracy of databases maintained by the 
                Commissioner and the Secretary of Homeland Security.
            ``(4) Termination.--The Advisory Panel shall terminate 5 
        years after the date of the enactment of this Act.''.
            (2) Authorization of appropriations and limitation of 
        responsibilities.--
                    (A) Authorization.--There are authorized to be 
                appropriated to the Commissioner of Social Security 
                such sums as may be necessary to carry out the 
                amendments made by this section.
                    (B) Limitation.--The Commissioner of Social 
                Security may carry out the Commissioner's 
                responsibilities under the amendment made by paragraph 
                (1) only to the extent that funds are appropriated in 
                advance to cover the Commissioner's full costs in 
                carrying out such responsibilities. In no case shall 
                funds from the Federal Old-Age and Survivors Insurance 
                Trust Fund or the Federal Disability Insurance Trust 
                Fund be used to carry out such responsibilities.
    (b) Amendments Relating to Provision of Information by Employers to 
the State Directory of New Hires.--Section 453A(b) of the Social 
Security Act (42 U.S.C. 653a(b)) is amended--
            (1) in paragraph (1)(A), by striking ``and social security 
        number of the employee'' and inserting ``date of birth, and 
        social security number (or such alien identification or 
        authorization number as the Secretary of Homeland Security 
        shall require) of the employee, the date the employee first 
        reported for duty''; and
            (2) in paragraph (2), by striking ``--'' and all that 
        follows and inserting ``not later than the 3rd business day 
        after the employee first reported for duty.''.

SEC. 104. ANTIDISCRIMINATION PROTECTIONS.

    (a) Application of Prohibition of Discrimination to Verification 
System.--Section 274B(a) of the Immigration and Nationality Act (8 
U.S.C. 1324b(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, the verification of the individual's work 
                authorization through the Electronic Employment 
                Verification System described in section 235(a) of the 
                Social Security Act or the Secure Employment 
                Eligibility Verification System described in section 
                235(b) of such Act,'' after ``the individual for 
                employment''; and
                    (B) in subparagraph (B), by striking ``in the case 
                of a protected individual (as defined in paragraph 
                (3)),''; and
            (2) by amending paragraph (3) to read as follows:
            ``(3) Antidiscrimination requirements of the electronic 
        employment verification system and the secure employment 
        eligibility verification system.--
                    ``(A) In general.--It is an unfair immigration-
                related employment practice for a person or other 
                entity, in the course of participating in the 
                Electronic Employment Verification System described in 
                section 235(a) of the Social Security Act or the Secure 
                Employment Eligibility Verification System described in 
                section 235(b) of such Act--
                            ``(i) to terminate or undertake any adverse 
                        employment action due to an initial disapproval 
                        or disapproval unless authorized or required 
                        under such sections;
                            ``(ii) to use the verification system for 
                        screening of an applicant prior to an offer of 
                        employment;
                            ``(iii) except as described in subsections 
                        (a)(3)(C) and (b)(4)(A) of section 235 of such 
                        Act, to use the verification system for a 
                        current employee after the first day of 
                        employment, or for the re-verification of an 
                        employee after the employee has satisfied the 
                        process described in subsection (a) or (b) of 
                        section 235 of such Act; or
                            ``(iv) to require an individual to make an 
                        inquiry under the self-verification procedures 
                        established under section 235(b)(5)(A) of such 
                        Act.
                    ``(B) Preemployment screening and background 
                check.--Nothing in subparagraph (A) shall be construed 
                to preclude a preemployment screening or background 
                check that is required or permitted under any other 
                provision of law.
                    ``(C) Re-verification.--A person or other entity, 
                in the course of participating in the Electronic 
                Employment Verification System described in section 
                235(a) of the Social Security Act, shall not repeat the 
                verification process established by such section 
                unless--
                            ``(i) the previously approved period of 
                        employment provided by the system has expired, 
                        or
                            ``(ii) if such person or other entity is 
                        the most recent such person or other entity in 
                        connection with the employee, the Commissioner 
                        of Social Security, in cooperation with the 
                        Secretary of Homeland Security, has provided 
                        specific notice to re-verify the employee based 
                        on specific information about the employee's 
                        authorization to be employed by such person or 
                        entity.''.
    (b) Increase in Civil Money Penalties.--Section 274B(g)(2)(B)(iv) 
of such Act (8 U.S.C. 1324b(g)(2)(B)(iv)) is amended--
            (1) in subclause (I), by striking ``$250 and not more than 
        $2,000'' and inserting ``$1,000 and not more than $4,000'';
            (2) in subclause (II), by striking ``$2,000 and not more 
        than $5,000'' and inserting ``$4,000 and not more than 
        $10,000'';
            (3) in subclause (III), by striking ``$3,000 and not more 
        than $10,000'' and inserting ``$6,000 and not more than 
        $20,000''; and
            (4) in subclause (IV), by striking ``$100 and not more than 
        $1,000'' and inserting ``$500 and not more than $5,000''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply to 
violations occurring on or after such date.

SEC. 105. PENALTIES.

    Section 274A of the Immigration and Nationality Act (8 U.S.C. 
1324a) is amended--
            (1) in subsection (e)(4)--
                    (A) in subparagraph (A), in the matter before 
                clause (i), by inserting ``, subject to paragraphs (10) 
                through (12),'' after ``in an amount'';
                    (B) in subparagraph (A)(i), by striking ``not less 
                than $250 and not more than $2,000'' and inserting 
                ``not less than $5,000 and not more than $7,500'';
                    (C) in subparagraph (A)(ii), by striking ``not less 
                than $2,000 and not more than $5,000'' and inserting 
                ``not less than $10,000 and not more than $15,000'';
                    (D) in subparagraph (A)(iii), by striking ``not 
                less than $3,000 and not more than $10,000'' and 
                inserting ``not less than $25,000 and not more than 
                $40,000''; and
                    (E) by amending subparagraph (B) to read as 
                follows:
                    ``(B) may require the person or entity to take such 
                other remedial action as is appropriate.'';
            (2) in subsection (e)(5)--
                    (A) by inserting ``, subject to paragraphs (10) 
                through (12),'' after ``in an amount'';
                    (B) by striking ``$100'' and inserting ``$1,000'';
                    (C) by striking ``$1,000'' and inserting 
                ``$25,000'';
                    (D) by striking ``the size of the business of the 
                employer being charged, the good faith of the 
                employer'' and inserting ``the good faith of the 
                employer being charged''; and
                    (E) by adding at the end the following sentence: 
                ``Failure by a person or entity to utilize the 
                employment eligibility verification system as required 
                by law, or providing information to the system that the 
                person or entity knows or reasonably believes to be 
                false, shall be treated as a violation of subsection 
                (a)(1)(A).'';
            (3) by adding at the end of subsection (e) the following 
        new paragraphs:
            ``(10) Mitigation of civil money penalties for smaller 
        employers.--In the case of imposition of a civil penalty under 
        paragraph (4)(A) with respect to a violation of subsection 
        (a)(1)(A) or (a)(2) for hiring or continuation of employment by 
        an employer and in the case of imposition of a civil penalty 
        under paragraph (5) for a violation of subsection (a)(1)(B) for 
        hiring by an employer, the dollar amounts otherwise specified 
        in the respective paragraph shall be reduced as follows:
                    ``(A) In the case of an employer with an average of 
                fewer than 26 full-time equivalent employees (as 
                defined by the Secretary of Homeland Security), the 
                amounts shall be reduced by 60 percent.
                    ``(B) In the case of an employer with an average of 
                at least 26, but fewer than 101, full-time equivalent 
                employees (as so defined), the amounts shall be reduced 
                by 40 percent.
                    ``(C) In the case of an employer with an average of 
                at least 101, but fewer than 251, full-time equivalent 
                employees (as so defined), the amounts shall be reduced 
                by 20 percent.
        The last sentence of paragraph (4) shall apply under this 
        paragraph in the same manner as it applies under such 
        paragraph.
            ``(11) Exemption from penalty for initial good faith 
        violation.--In the case of imposition of a civil penalty under 
        paragraph (4)(A) with respect to a violation of subsection 
        (a)(1)(A) or (a)(2) for hiring or continuation of employment or 
        recruitment or referral by person or entity and in the case of 
        imposition of a civil penalty under paragraph (5) for a 
        violation of subsection (a)(1)(B) for hiring or recruitment or 
        referral by a person or entity, the penalty otherwise imposed 
        shall be waived if the violator establishes that it was the 
        first such violation of such provision by the violator and the 
        violator acted in good faith.
            ``(12) Safe harbor for contractors.--A person or other 
        entity shall not be liable for a penalty under paragraph (4)(A) 
        with respect to the violation of subsection (a)(1)(A), 
        (a)(1)(B), or (a)(2) with respect to the hiring or continuation 
        of employment of an unauthorized alien by a subcontractor of 
        that person or entity unless the person or entity knew that the 
        subcontractor hired or continued to employ such alien in 
        violation of such subsection.'';
            (4) by amending paragraph (1) of subsection (f) to read as 
        follows:
            ``(1) Criminal penalty.--Any person or entity which engages 
        in a pattern or practice of violations of subsection (a)(1) or 
        (2) shall be fined not more than $50,000 for each unauthorized 
        alien with respect to which such a violation occurs, imprisoned 
        for not less than one year, or both, notwithstanding the 
        provisions of any other Federal law relating to fine levels.''; 
        and
            (5) in subsection (f)(2), by striking ``Attorney General'' 
        each place it appears and inserting ``Secretary of Homeland 
        Security''.

SEC. 106. ANNUAL GAO STUDY AND REPORT.

    (a) Requirement.--The Comptroller General of the United States 
shall conduct an annual study of the Employment Eligibility 
Verification System described in section 235(a) of the Social Security 
Act as added by this Act (hereinafter in the Act referred to as the 
``EEVS'') and the Secure Employment Eligibility Verification System 
described in section 235(b) of such Act as added by this Act 
(hereinafter in the Act referred to as the ``SEEVS'').
    (b) Purpose.--The study shall evaluate the accuracy, efficiency, 
integrity, and impact of the EEVS and the SEEVS.
    (c) Report.--Not later than the date that is 15 months after the 
date of the enactment of this Act, and annually thereafter, ending once 
the System has been fully implemented for 5 years, the Comptroller 
General shall submit to the Congress a report containing the findings 
of the study carried out under this section. Each such report shall 
include, at a minimum, the following:
            (1) An assessment of the EEVS and SEEVS performance with 
        respect to the rate at which individuals who are eligible for 
        employment in the United States are correctly approved within 
        the time periods specified in section 235(a)(3)(B) of the 
        Social Security Act.
            (2) An assessment of the privacy and security of the EEVS 
        and the SEEVS and its effects on identity fraud or the misuse 
        of personal data.
            (3) An assessment of the effects of the EEVS and SEEVS on 
        the employment of unauthorized aliens (as defined in section 
        274A(h)(3) of the Immigration and Nationality Act).
            (4) An assessment of the effects of the EEVS and the SEEVS, 
        including the effects of initial disapprovals on unfair 
        immigration-related employment practices, and employment 
        discrimination based on national origin or citizenship status.
            (5) An assessment of the effects of the EEVS and SEEVS on 
        employers.
            (6) An assessment of whether the Secretary and the 
        Commissioner of Social Security have adequate resources to 
        carry out the duties and responsibilities set forth in section 
        235 of the Social Security Act.

SEC. 107. DISCLOSURE TO THE SECRETARY OF HOMELAND SECURITY OF 
              INFORMATION IN THE NATIONAL DIRECTORY OF NEW HIRES ABOUT 
              EMPLOYERS WITH THE GREATEST NUMBER OR PERCENTAGE OF 
              EMPLOYEES WITH MISMATCHED SOCIAL SECURITY INFORMATION.

    (a) In General.--Section 453(j) of the Social Security Act (42 
U.S.C. 653(j)) is amended by adding at the end the following:
            ``(11) Disclosure to secretary of homeland security of 
        information about employers with the greatest number or 
        percentage of employees with mismatched social security 
        information.--
                    ``(A) Disclosure requirement.--
                            ``(i) In general.--Within 4 months after 
                        the Secretary receives from the Secretary of 
                        Homeland Security, in accordance with clause 
                        (ii) of this subparagraph, a written request 
                        for the information described in subparagraph 
                        (B), the Secretary shall disclose the 
                        information to the Secretary of Homeland 
                        Security, based on the information available on 
                        new hires for the 12 months preceding 
                        compilation of information in response to the 
                        request.
                            ``(ii) Sunset.--A request is received in 
                        accordance with this clause if the request is 
                        received in the 3-year period that begins with 
                        the date of the enactment of this paragraph.
                    ``(B) Information to be disclosed.--The information 
                described in this subparagraph is the following:
                            ``(i) Top 1,000 employers with greatest 
                        number of employees with mismatched social 
                        security information.--The name, taxpayer 
                        identification number, and address of each 
                        employer who is among the 1,000 employers 
                        ranked highest under subparagraph (C)(i), and 
                        the total number of mismatches with respect to 
                        the employees of each such employer. If there 
                        is more than 1 employer so ranked 1,000th, then 
                        such information with respect to all employers 
                        so ranked shall be included.
                            ``(ii) Top 1,000 employers with greatest 
                        percentage of employees with mismatched social 
                        security information.--The name, taxpayer 
                        identification number, and address of each 
                        employer who is among the 1,000 employers 
                        ranked highest under subparagraph (C)(ii), the 
                        total number of mismatches with respect to the 
                        employees of each such employer, and the total 
                        percentage of the employees of each such 
                        employer with respect to whom there is a 
                        mismatch. If there is more than 1 employer so 
                        ranked 1,000th, then such information with 
                        respect to all employers so ranked shall be 
                        included.
                            ``(iii) Top 500 employers with greatest 
                        number of employees with same reported social 
                        security numbers.--The name, taxpayer 
                        identification number, and address of each 
                        employer who is among the 500 employers ranked 
                        highest under subparagraph (C)(iii), and the 
                        total number of employees of each such employer 
                        who have the same social security account 
                        number as another employee of the employer. If 
                        there is more than 1 employer so ranked 500th, 
                        then such information with respect to all 
                        employers so ranked shall be included.
                    ``(C) Rankings of employers.--
                            ``(i) Ranking by number of mismatched 
                        employees.--The Secretary shall assign a rank 
                        to each employer with respect to whom there is 
                        new hire information which has been submitted 
                        to the National Directory of New Hires, based 
                        on the number of employees of the employer with 
                        respect to whom there is a mismatch, as 
                        described in clause (iv). The Secretary shall 
                        assign a rank of 1 to the employer with the 
                        greatest number of such employees, and a lower 
                        rank to employers with lesser numbers of such 
                        employees. The Secretary shall assign the same 
                        rank to employers with the same number of such 
                        employees.
                            ``(ii) Ranking by percentage of mismatched 
                        employees.--The Secretary shall assign a rank 
                        to each employer with respect to whom there is 
                        new hire information which has been submitted 
                        to the National Directory of New Hires, based 
                        on the percentage of employees of the employer 
                        with respect to whom there is a mismatch, as 
                        described in clause (iv). The Secretary shall 
                        assign a rank of 1 to the employer with the 
                        greatest percentage of such employees, and a 
                        lower rank to employers with lesser percentages 
                        of such employees. The Secretary shall assign 
                        the same rank to employers with the same 
                        percentage of such employees.
                            ``(iii) Ranking by number of employees with 
                        same social security account number.--The 
                        Secretary shall assign a rank to each employer 
                        with respect to whom there is new hire 
                        information which has been submitted to the 
                        National Directory of New Hires, based on the 
                        number of employees of the employer whose 
                        social security account number reported to the 
                        National Directory of New Hires is the same as 
                        the social security account number of another 
                        employee of the employer, so reported. The 
                        Secretary shall assign a rank of 1 to the 
                        employer with the greatest number of such 
                        employees, and a lower rank to employers with 
                        lesser numbers of such employees. The Secretary 
                        shall assign the same rank to employers with 
                        the same number of such employees.
                            ``(iv) Mismatches.--For purposes of this 
                        paragraph, there is a mismatch with respect to 
                        an employee if the Secretary determines that--
                                    ``(I) the social security account 
                                number of the employee, as reported to 
                                the National Directory of New Hires 
                                (taking into account possible 
                                correction by the Social Security 
                                Administration), is invalid; or
                                    ``(II) the name and social security 
                                account number of the employee, as so 
                                reported (taking into account such 
                                possible correction), do not match the 
                                name and social security account number 
                                of the employee in the records of the 
                                Social Security Administration.
                    ``(D) Limitation on use of disclosed information.--
                The Secretary of Homeland Security may use the 
                information disclosed pursuant to subparagraph (A) of 
                this paragraph only for the purpose of establishing and 
                enforcing compliance with the Immigration and 
                Nationality Act.
                    ``(E) Condition on disclosure.--The Secretary shall 
                make a disclosure in accordance with subparagraph (A) 
                only to the extent that the Secretary determines that 
                the disclosure would not interfere with the effective 
                operation of the program under this part.
                    ``(F) Reimbursement of hhs costs.--The Secretary of 
                Homeland Security shall reimburse the Secretary, in 
                accordance with subsection (k)(3), for the costs 
                incurred by the Secretary in making the disclosures 
                required by subparagraph (A) of this paragraph.''.
    (b) Conforming Amendment to IEVS.--
            (1) In general.--Section 1137(a)(3) of such Act (42 U.S.C. 
        1320b-7(a)(3)) is amended by inserting ``(including the full 
        name and social security account number of, and the aggregate 
        wages paid to, each employee during the reporting period, and 
        the name, address, and Federal employer identification number 
        of each employer reporting wages)'' after ``quarterly wage 
        reports''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect 180 days after the date of the enactment of 
        this Act.

                   Subtitle B--Transition Provisions

SEC. 111. PROTECTION OF SOCIAL SECURITY ADMINISTRATION PROGRAMS.

    (a) Funding Under Agreement.--Effective for fiscal years beginning 
on or after October 1, 2009, the Commissioner of Social Security and 
the Secretary of Homeland Security shall enter into and maintain an 
agreement which shall--
            (1) provide funds to the Commissioner for the full costs of 
        the responsibilities of the Commissioner under section 404 of 
        the Illegal Immigration Reform and Immigrant Responsibility Act 
        of 1996 (8 U.S.C. 1324a note), including (but not limited to)--
                    (A) acquiring, installing, and maintaining 
                technological equipment and systems necessary for the 
                fulfillment of the responsibilities of the Commissioner 
                under such section 404, but only that portion of such 
                costs that are attributable exclusively to such 
                responsibilities; and
                    (B) responding to individuals who contest a 
                tentative nonconfirmation provided by the basic pilot 
                confirmation system established under such section;
            (2) provide such funds quarterly in advance of the 
        applicable quarter based on estimating methodology agreed to by 
        the Commissioner and the Secretary (except in such instances 
        where the delayed enactment of an annual appropriation may 
        preclude such quarterly payments); and
            (3) require an annual accounting and reconciliation of the 
        actual costs incurred and the funds provided under the 
        agreement, which shall be reviewed by the Office of Inspector 
        General of the Social Security Administration and the 
        Department of Homeland Security.
    (b) Continuation of Employment Verification in Absence of Timely 
Agreement.--In any case in which the agreement required under 
subsection (a) for any fiscal year beginning on or after October 1, 
2009, has not been reached as of October 1 of such fiscal year, the 
latest agreement between the Commissioner and the Secretary of Homeland 
Security providing for funding to cover the costs of the 
responsibilities of the Commissioner under section 404 of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C. 
1324a note) shall be deemed in effect on an interim basis for such 
fiscal year until such time as an agreement required under subsection 
(a) is subsequently reached, except that the terms of such interim 
agreement shall be modified by the Director of the Office of Management 
and Budget to adjust for inflation and any increase or decrease in the 
volume of requests under the basic pilot confirmation system. In any 
case in which an interim agreement applies for any fiscal year under 
this subsection, the Commissioner and the Secretary shall, not later 
than October 1 of such fiscal year, notify the Committee on Ways and 
Means, the Committee on the Judiciary, and the Committee on 
Appropriations of the House of Representatives and the Committee on 
Finance, the Committee on the Judiciary, and the Committee on 
Appropriations of the Senate of the failure to reach the agreement 
required under subsection (a) for such fiscal year. Until such time as 
the agreement required under subsection (a) has been reached for such 
fiscal year, the Commissioner and the Secretary shall, not later than 
the end of each 90-day period after October 1 of such fiscal year, 
notify such Committees of the status of negotiations between the 
Commissioner and the Secretary in order to reach such an agreement.

SEC. 112. GAO STUDY OF BASIC PILOT CONFIRMATION SYSTEM.

    (a) In General.--As soon as practicable after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study regarding erroneous tentative nonconfirmations 
under the basic pilot confirmation system established under section 
404(a) of the Illegal Immigration Reform and Immigrant Responsibility 
Act of 1996 (8 U.S.C. 1324a note). The results of the study shall be 
taken into account in the implementation of the amendments made by 
subtitle A.
    (b) Matters To Be Studied.--In the study required under subsection 
(a), the Comptroller General shall determine and analyze--
            (1) the causes of erroneous tentative nonconfirmations 
        under the basic pilot confirmation system;
            (2) the processes by which such erroneous tentative 
        nonconfirmations are remedied; and
            (3) the effect of such erroneous tentative nonconfirmations 
        on individuals, employers, and Federal agencies.
    (c) Report.--Not later than 2 years after the date of the enactment 
of this Act, the Comptroller General shall submit the results of the 
study required under subsection (a) to the Committee on Ways and Means 
and the Committee on the Judiciary of the House of Representatives and 
the Committee on Finance and the Committee on the Judiciary of the 
Senate.

SEC. 113. GAO STUDY OF EFFECTS OF BASIC PILOT PROGRAM ON SMALL 
              ENTITIES.

    (a) In General.--Not later than 2 years after the date of the 
enactment of this Act, the Comptroller General of the United States 
shall submit to the Committees on the Judiciary of the United States 
House of Representatives and the Senate a report containing the 
Comptroller General's analysis of the effects of the basic pilot 
program described in section 403(a) of the Illegal Immigration Reform 
and Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a note) on small 
entities (as defined in section 601 of title 5, United States Code). 
The analysis shall be taken into account in the implementation of the 
amendments made by subtitle A. The report shall detail--
            (1) the costs of compliance with such program on small 
        entities;
            (2) a description and an estimate of the number of small 
        entities enrolled and participating in such program or an 
        explanation of why no such estimate is available;
            (3) the projected reporting, recordkeeping and other 
        compliance requirements of such program on small entities;
            (4) factors that impact small entities' enrollment and 
        participation in such program, including access to appropriate 
        technology, geography, entity size, and class of entity; and
            (5) the steps, if any, the Secretary of Homeland Security 
        has taken to minimize the economic impact of participating in 
        such program on small entities.
    (b) Direct and Indirect Effects.--The report shall cover, and treat 
separately, direct effects (such as wages, time, and fees spent on 
compliance) and indirect effects (such as the effect on cash flow, 
sales, and competitiveness).
    (c) Specific Contents.--The report shall provide specific and 
separate details with respect to--
            (1) small businesses (as defined in section 601 of title 5, 
        United States Code) with fewer than 50 employees; and
            (2) small entities operating in States that have mandated 
        use of the basic pilot program.

                        TITLE II--OASDI BENEFITS

SEC. 201. DENIAL OF CREDIT TOWARD BENEFITS FOR EARNINGS FROM 
              UNAUTHORIZED WORK.

    (a) In General.--Section 214 of the Social Security Act (42 U.S.C. 
414) is amended by adding at the end the following:
    ``(d)(1) No quarters of coverage shall be credited for purposes of 
this section or section 223(a)(1)(A) for any calender year in the case 
of any individual if--
            ``(A) on the last day of such year, such individual is not 
        a citizen or national of the United States, and
            ``(B) the Secretary of Homeland Security determines, 
        pursuant to paragraph (2), that such individual was not 
        authorized to be employed in the United States during any 
        portion of such calender year.
    ``(2)(A) The Secretary of Homeland Security shall enter into an 
agreement with the Commissioner to provide, in a form and manner 
specified by the Commissioner, such information as the Commissioner 
determines necessary to carry out the limitations on crediting quarters 
of coverage for years under paragraph (1).
    ``(B) For the purpose of carrying out the Secretary's duties under 
subparagraph (A), the Secretary of Homeland Security shall, in 
consultation with the Commissioner, develop and maintain the following 
information:
            ``(i) The name, social security account number, and date of 
        birth of each individual who is authorized by the Secretary of 
        Homeland Security or the Secretary of State to be employed in 
        the United States.
            ``(ii) The date on which each such authorization is 
        granted.
            ``(iii) The date on which each such authorization is 
        revoked or terminated.
            ``(iv) The date of naturalization for each individual who 
        becomes a naturalized citizen of the United States.
    ``(C) The information provided to the Commissioner under 
subparagraph (A) relating to years in which an individual was not 
authorized to be employed in the United States during any portion of a 
year shall be the final determination of the Secretary of Homeland 
Security after an opportunity for review or appeal under procedures 
which shall be established by the Secretary of Homeland Security and 
shall not be reviewable by the Commissioner.
    ``(3) Paragraph (1) shall not apply with respect to an individual 
who was assigned a social security account number prior to the date of 
the enactment of the New Employee Verification Act of 2009.''.
    (b) Disregard of Earnings for Years for Which No Quarter of 
Coverage May Be Credited.--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, there shall not be counted any annual wages or 
        self-employment income for any year for which no quarter of 
        coverage may be credited to such individual as a result of the 
        application of section 214(d)(1).''.
    (c) Transmission of Information From Commissioner to Secretary.--
Section 205(c)(2) of such Act (42 U.S.C. 405(c)(2)) is amended by 
adding at the end the following new subparagraph:
    ``(I) The Commissioner and the Secretary of Homeland Security shall 
enter into an agreement to establish a system to transmit to the 
Secretary of Homeland Security any social security account number 
assigned to an individual after the date of the enactment of the New 
Employee Verification Act of 2009, and other identifying information 
relating to such individual, in any case in which such individual is 
not a citizen or national of the United States at the time of the 
assignment of such number to such individual. The Secretary of Homeland 
Security shall incorporate such number and other identifying 
information into all records of the Department of Homeland Security 
maintained with respect to such individual.''.
    (d) Effective Dates.--
            (1) Section 214(d)(1) of the Social Security Act (added by 
        subsection (a)) shall be effective with respect to quarters of 
        coverage credited for calendar years commencing after the date 
        on which the Secretary of Homeland Security and the 
        Commissioner certify, by publication in the Federal Register, 
        that the system for developing and maintaining information 
        pursuant to section 214(d)(2)(B) of the Social Security Act 
        (added by subsection (a)) is operational.
            (2) The Commissioner of Social Security and the Secretary 
        of Homeland Security shall enter into the agreement described 
        in section 205(c)(2) of the Social Security Act (added by 
        subsection (c)) not later than 180 days after the date of the 
        enactment of this Act.

SEC. 202. IMPROVEMENTS IN PROVISIONS GOVERNING TOTALIZATION AGREEMENTS.

    (a) Additional Information Required in Document Transmitting 
Totalization Agreements to the Congress.--
            (1) In general.--Section 233(e)(1) of the Social Security 
        Act (42 U.S.C. 433(e)(1)) is amended to read as follows:
    ``(e)(1) Any agreement to establish a totalization arrangement 
entered into pursuant to this section (and any such agreement to amend 
a totalization arrangement) shall be transmitted by the President to 
each House of the Congress together with a report by the President in 
support of such agreement. The President's report shall include the 
following:
            ``(A) an identification and assessment by the Commissioner 
        of Social Security of the major risks associated with entering 
        into such an agreement with such other country, including an 
        assessment of--
                    ``(i) the integrity of such other country's data 
                and records on births, deaths, marriages, divorces, 
                earnings, and other information affecting eligibility 
                for benefits or benefit amounts, and
                    ``(ii) the potential for fraudulent receipt of 
                benefits under this title and how any such potential 
                fraud would be mitigated;
            ``(B) the number of individuals who are United States 
        citizens estimated by the Chief Actuary of the Social Security 
        Administration to be affected by the agreement;
            ``(C) the number of individuals who are not United States 
        citizens estimated by the Chief Actuary to be affected by the 
        agreement;
            ``(D) the Chief Actuary's estimate of any resulting 
        reduction in liability for taxes or contributions and increases 
        in benefit payments, under the social security system 
        established by this title and the social security system of 
        such other country, of--
                    ``(i) individuals who are United States citizens 
                and their employers, and
                    ``(ii) individuals who are not United States 
                citizens and their employers;
            ``(E) the Chief Actuary's estimate 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; and
            ``(F) an analysis by the Chief Actuary of the sensitivity 
        of the estimates of the Chief Actuary to alternative 
        assumptions with respect to economic and demographic 
        variables.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to agreements, establishing 
        totalization arrangements pursuant to section 233 of the Social 
        Security Act, which are transmitted to the Congress on or after 
        the date of the enactment of this Act.
    (b) Approval of Totalization Agreements by Joint Resolution.--
            (1) In general.--Section 233(e) of such Act (42 U.S.C. 
        433(e)) is amended by striking paragraph (2) and inserting the 
        following new paragraphs:
    ``(2)(A) Except as provided in paragraph (4) or (5), the agreement 
transmitted to the Congress pursuant to paragraph (1) may enter into 
force according to its terms or upon the expiration of the period of 60 
calendar days following the date of its transmittal to each House of 
the Congress (excluding Saturdays, Sundays, holidays, and days on which 
either House of Congress is not in session), whichever is later.
    ``(B) 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 the Congress pursuant to paragraph (1), 
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.
    ``(3)(A) Any document setting forth an agreement entered into under 
this section and transmitted to each House of the Congress pursuant to 
paragraph (1) shall set forth a determination of the Chief Actuary of 
the Social Security Administration as to whether there is expected, 
over the 75-year period following the date of the entry into force of 
the agreement, a net reduction in any positive actuarial balance for 
such period of the social security system established by this title (or 
a net increase in any negative actuarial balance for such period for 
such system) attributable to the operation of such agreement equal to 
at least 0.005 percent of the present value of taxable payroll for such 
period.
    ``(B) For purposes of this paragraph--
            ``(i) The term `actuarial balance' means, with respect to a 
        period, the difference between the adjusted summarized income 
        rate over such period and the adjusted summarized cost rate 
        over such period.
            ``(ii) The term `taxable payroll' means, for a period, the 
        total wages (as defined in section 209) to be paid, and self-
        employment income (as defined in section 211(b)) to be derived, 
        during such period.
            ``(iii) The term `adjusted summarized income rate' means, 
        over a period, the ratio (expressed as a percentage) of the sum 
        of the trust fund balance at the beginning of the period plus 
        the present value of the total income from taxes during such 
        period, to the present value of the taxable payroll for such 
        period.
            ``(iv) The term `adjusted summarized cost rate' means, over 
        a period, the ratio (expressed as a percentage) of the sum of 
        the present value of the cost during such period plus the 
        present value of the targeted trust fund balance, to the 
        present value of the taxable payroll for the years for such 
        period.
            ``(v) The term `trust fund balance' means the combined 
        balance of the Federal Old-Age and Survivors Insurance Trust 
        Fund and the Federal Disability Insurance Trust Fund 
        (hereinafter in this subparagraph referred to as the `Trust 
        Funds').
            ``(vi) The term `income from taxes' means, during a period, 
        the amounts deposited in the Trust Funds as appropriations 
        during the period based on taxes under chapters 2 and 21 and 
        section 86 of the Internal Revenue Code of 1986.
            ``(vii) The term `cost' means, during a period, 
        disbursements from the Trust Funds during such period, 
        including scheduled benefit payments, special monthly payments 
        to certain uninsured persons who have 3 or more quarters of 
        coverage (and whose payments are therefore not reimbursable 
        from the general fund of the Treasury), administrative 
        expenses, net transfers from the Trust Funds to the Railroad 
        Retirement program under financial-interchange provisions, and 
        payments for vocational rehabilitation services for disabled 
        beneficiaries, and excluding special monthly payments to 
        certain uninsured persons whose payments are reimbursable from 
        the general fund of the Treasury, and transfers under the 
        interfund borrowing provisions of section 201(l).
            ``(viii) The term `target trust fund balance' means the 
        trust fund balance, as of the end of the 75-year period 
        described in subparagraph (A), necessary to support an OASDI 
        trust fund ratio (as defined in section 201(l)(3)(B)(iii)) of 
        100 percent for the year following the last year of such 
        period.
    ``(C) In making determinations under this paragraph, the Chief 
Actuary shall employ the intermediate assumptions of the Board of 
Trustees of the Federal Old-Age and Survivors Insurance Trust Fund and 
the Federal Disability Insurance Trust Fund in its most recent annual 
report issued pursuant to section 201.
    ``(4) An agreement entered into under this section shall not enter 
into force if there is enacted into law, during the period of 60 
calendar days specified in paragraph (2)(A), a bill or joint resolution 
disapproving such agreement.
    ``(5) In any case in which the determination of the Chief Actuary 
described in subparagraph (A) of paragraph (3) in connection with an 
agreement entered into under this section is that, with respect to the 
75-year period described in such subparagraph, there is expected a net 
reduction, in the actuarial balance for such period of the social 
security system established by this title, which--
            ``(A) is attributable to the operation of such agreement, 
        and
            ``(B) is equal to at least 0.005 percent of the present 
        value of taxable payroll for such period,
such agreement shall not enter into force unless, during the period of 
60 calendar days specified in paragraph (2)(A), there is enacted into 
law a bill or joint resolution approving such agreement.
    ``(6)(A) The provisions of this paragraph are enacted by the 
Congress--
            ``(i) as an exercise of the rulemaking power of the House 
        of Representatives and the Senate, respectively, and as such 
        they are deemed a part of the rules of each House, 
        respectively, but applicable only with respect to the procedure 
        to be followed in that House in the case of disapproval 
        resolutions and approval resolutions, and they supersede other 
        rules only to the extent that they are inconsistent therewith; 
        and
            ``(ii) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner and to 
        the same extent as in the case of any other rule of that House.
    ``(B) During the period of 60 calendar days specified in paragraph 
(2)(A), it shall be in order as a matter of highest privilege in each 
House of the Congress to consider a bill or joint resolution described 
in paragraph (4) or (5) providing solely for the disapproval or 
approval of an agreement entered into under this section, if offered by 
the majority leader or minority leader of such House (or a designee).
    ``(C) For purposes of consideration of a bill or joint resolution 
described in paragraph (4) or (5) providing solely for approval or 
disapproval of an agreement under this section, the agreement shall not 
be subject to amendment after the transmittal to each House of the 
Congress pursuant to paragraph (1).''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply with respect to agreements, establishing 
        totalization arrangements pursuant to section 233 of the Social 
        Security Act, which are transmitted to the Congress on or after 
        the date of the enactment of this Act.
            (3) Special rule.--Notwithstanding subsection (e) of 
        section 233 of the Social Security Act (as in effect prior to 
        the amendments made by this section), any agreement entered 
        into pursuant to such section 233, establishing totalization 
        arrangements between the social security system established by 
        title II of such Act and the social security system of another 
        country, which--
                    (A) was signed by the Commissioner of Social 
                Security in June 2004, and
                    (B) was transmitted to the Congress pursuant to 
                such subsection (e) on or after September 1, 2007, and 
                before the date of the enactment of this Act,
        shall be deemed not to have entered into force as of the date 
        of the enactment of this Act and shall be deemed to enter into 
        force after such date only as provided in section 233(e) of 
        such Act (as amended by this section) as if such agreement had 
        been transmitted to the Congress on the date on which the 
        President transmits to the Congress on or after such date, 
        pursuant to section 233(e)(1) of such Act (as amended by this 
        section), a report in support of such agreement meeting the 
        requirements of such section 233(e)(1) (as so amended).
    (c) Biennial Reports to the Congress Regarding Ongoing Operation of 
Totalization Agreements.--
            (1) In general.--Section 233 of such Act (42 U.S.C. 433) is 
        amended by adding at the end the following new subsection:

                      ``Biennial Oversight Reports

    ``(f) The Commissioner of Social Security shall submit biennially 
to the Committee on Ways and Means of the House of Representatives and 
the Committee on Finance of the Senate a report evaluating the 
operation, during the preceding 2-year period covered by the report, of 
each agreement entered into pursuant to this section. Such report shall 
include--
            ``(1) if the report is submitted during the 10-year period 
        following the date on which the agreement enters into force, 
        the change in benefit costs under the social security system 
        established by this title which is attributable to the 
        agreement, as estimated as of the date of the report, and the 
        change in contributions under such system which is attributable 
        to such agreement, as so estimated,
            ``(2) information relating to actual, or perceived 
        potential, fraudulent receipt of benefits attributable to the 
        operation of the agreement under the social security system 
        established by this title,
            ``(3) information relating to perceived problems with the 
        integrity of the other country's data and records used in 
        determining eligibility for benefits or benefit amounts, and
            ``(4) if the report is submitted during the 10-year period 
        following the date on which the agreement enters into force, 
        information relating to demographic or other trends that may 
        cause future deviations from the original estimates of costs to 
        each social security system which are attributable to the 
        agreement.''.
            (2) Initial report.--The Commissioner of Social Security 
        shall submit the initial report pursuant to section 233(f) of 
        the Social Security Act (added by this subsection) not later 
        than December 31, 2009.

SEC. 203. SUSPENSION OF BENEFITS FOR INDIVIDUALS REMOVED FROM THE 
              UNITED STATES.

    (a) In General.--Section 202(n)(1) of the Social Security Act (42 
U.S.C. 402(n)(1)) is amended--
            (1) in subparagraph (A), by striking ``, on the basis of 
        his wages and self-employment income,'';
            (2) in subparagraph (B), by striking ``and'' at the end;
            (3) in subparagraph (C), by striking the period and 
        inserting ``, and''; and
            (4) by adding at the end the following new subparagraph:
            ``(D) no lump sum death payment shall be made to such 
        individual after the Commissioner of Social Security is 
        notified by the Attorney General or the Secretary of Homeland 
        Security that such individual has been so removed.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to any individual with respect to whose removal from the United 
States the Commissioner of Social Security receives notification from 
the Attorney General or the Secretary of Homeland Security after the 
twelfth month that begins after the date of the enactment of this Act.
                                 <all>
```