```

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1040 Introduced in Senate (IS)]

<DOC>

115th CONGRESS
  1st Session
                                S. 1040

  To amend the Immigration and Nationality Act to provide for a State-
     sponsored nonimmigrant pilot program, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 4, 2017

Mr. Johnson (for himself and Mr. McCain) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
  To amend the Immigration and Nationality Act to provide for a State-
     sponsored nonimmigrant pilot program, 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 ``State Sponsored Visa Pilot Program 
Act of 2017''.

SEC. 2. STATE-SPONSORED NONIMMIGRANT PROGRAM.

    Section 101(a)(15) of the Immigration and Nationality Act (8 U.S.C. 
1101(a)(15)) is amended--
            (1) in subparagraph (U)(iii), by striking the ``or'' at the 
        end;
            (2) in subparagraph (V), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(W)(i) an alien who is sponsored by a State and 
                who is coming temporarily to the United States to 
                reside in the State to perform services, provide 
                capital investment, direct the operations of an 
                enterprise, or otherwise contribute to the economic 
                development agenda of the State in a manner determined 
                by the State; and
                    ``(ii) the alien spouse and minor children of any 
                alien described in clause (i).''.

SEC. 3. ADMISSION OF STATE-SPONSORED NONIMMIGRANTS.

    (a) Requirements for State-Sponsored Nonimmigrants.--Section 214 of 
the Immigration and Nationality Act (8 U.S.C. 1184) is amended--
            (1) in subsection (h), by striking ``(H)(i)(b) or (c), (L), 
        or (V)'' and inserting ``(H)(i)(b), (H)(i)(c), (L), (V), or 
        (W)''; and
            (2) by adding at the end the following:
    ``(s) Requirements Applicable to State-Sponsored Nonimmigrant 
Visas.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Reside.--The term `reside' means to live and 
                establish a residence in a State for a consecutive 
                period of more than 14 days (not including any period 
                after the approval of the resident's petition for 
                immigrant status).
                    ``(B) Secretary.--Except as otherwise specifically 
                provided in this subsection, the term `Secretary' means 
                the Secretary of Homeland Security.
                    ``(C) State.--Notwithstanding section 101(a)(36), 
                the term `State' means a State of the United States and 
                the District of Columbia.
                    ``(D) State-sponsored nonimmigrant.--The term 
                `State-sponsored nonimmigrant' means an alien who has 
                been sponsored by a State for admission under section 
                101(a)(15)(W).
                    ``(E) State-sponsored nonimmigrant program.--The 
                term `State-sponsored nonimmigrant program' means a 
                nonimmigrant program to regulate the employment, 
                investment, and residence of State-sponsored 
                nonimmigrants.
                    ``(F) State-sponsored nonimmigrant status.--The 
                term `State-sponsored nonimmigrant status' means status 
                granted to an alien admitted as a nonimmigrant pursuant 
                to section 101(a)(15)(W).
            ``(2) State-sponsored nonimmigrant program.--Any State may 
        submit an application to the Secretary to participate in the 
        State-sponsored nonimmigrant program by sponsoring aliens for 
        admission to the United States.
            ``(3) State-sponsored nonimmigrant program approval.--The 
        Secretary shall approve any application submitted by a State 
        (or compact of States) under paragraph (2) for a State-
        sponsored nonimmigrant program that--
                    ``(A) was approved by the legislature of the State;
                    ``(B) regulates, in a manner determined by the 
                State, the employment and residence of State-sponsored 
                nonimmigrants;
                    ``(C) implements procedures, in a manner determined 
                by the Secretary, to inform the Secretary of the 
                failure of a nonimmigrant to comply with the terms of 
                State-sponsored nonimmigrant status when the State is 
                made aware of such failure;
                    ``(D) allows, in a manner determined by the State, 
                a State-sponsored nonimmigrant who has been admitted to 
                seek employment with an employer other than the 
                employer with which the nonimmigrant was initially 
                employed; and
                    ``(E) implements procedures, in a manner determined 
                by the Secretary, to annually inform the Secretary of 
                the address and employment of all State-sponsored 
                nonimmigrants residing in the State.
            ``(4) State petition.--
                    ``(A) In general.--A State that participates in the 
                State-sponsored nonimmigrant program shall submit a 
                petition in such form and containing such information 
                as the Secretary shall specify to sponsor an alien 
                under this subsection.
                    ``(B) Approval.--A visa may not be granted to an 
                alien described in subparagraph (A) until the Secretary 
                approves a petition submitted pursuant to subparagraph 
                (A). Such approval does not, of itself, establish that 
                the alien is a nonimmigrant.
                    ``(C) Fee.--A State that submits a petition under 
                subparagraph (A) shall pay a fee in amount determined 
                by the Secretary to cover the cost of the adjudication 
                of the application.
            ``(5) State-sponsored nonimmigrants.--The Secretary of 
        State shall approve a nonimmigrant visa for an alien and the 
        Secretary of Homeland Security shall admit the alien to the 
        United States as a State-sponsored nonimmigrant or grant State-
        sponsored nonimmigrant status to the alien if the alien--
                    ``(A) is otherwise admissible under this Act;
                    ``(B) has not been convicted of a felony, any crime 
                of violence (as defined in section 16 of title 18, 
                United States Code), or any crime of reckless driving 
                or of driving while intoxicated or under the influence 
                of alcohol or of prohibited substances;
                    ``(C) is petitioned for by a State that 
                participates in the State-sponsored nonimmigrant 
                program approved by the Secretary under paragraph (3);
                    ``(D) has not previously violated any term or 
                condition of State-sponsored nonimmigrant status; and
                    ``(E) has paid any bond that the State may require 
                under paragraph (13).
            ``(6) Period of authorized status.--
                    ``(A) In general.--The period of authorized status 
                for a State-sponsored nonimmigrant shall be a period 
                determined by the State, but may not exceed 3 years.
                    ``(B) Renewal.--
                            ``(i) Location.--Subject to clause (ii), 
                        the period of authorized status under 
                        subparagraph (A) shall be renewable inside or 
                        outside of the United States.
                            ``(ii) Condition.--Renewals under clause 
                        (i) may be granted only if--
                                    ``(I) the sponsoring State requests 
                                such renewal; and
                                    ``(II) the State-sponsored 
                                nonimmigrant has resided continuously 
                                in such sponsoring State, or States 
                                subject to an interstate compact (not 
                                including any period of residence after 
                                the approval of a petition for 
                                immigrant status of which the alien is 
                                a beneficiary).
                    ``(C) Termination.--The Secretary shall terminate 
                the period of authorized status if--
                            ``(i) the State-sponsored nonimmigrant 
                        resides or works outside of the State, or 
                        States subject to an interstate compact under 
                        paragraph (7), that sponsored the alien;
                            ``(ii) the State-sponsored nonimmigrant 
                        fails to follow all rules and regulations 
                        required by the State, as determined by the 
                        State (following any appeals process the State 
                        may create); or
                            ``(iii) the State that sponsored the 
                        nonimmigrant requests that the status of the 
                        nonimmigrant be terminated (following any 
                        appeals process the State may create) unless 
                        another State sponsors the nonimmigrant.
                    ``(D) Employment authorization.--
                            ``(i) In general.--All aliens admitted as 
                        State-sponsored nonimmigrants under section 
                        101(a)(15)(W)--
                                    ``(I) shall be authorized for 
                                employment for purposes of section 
                                274A; and
                                    ``(II) shall be issued appropriate 
                                documentation evidencing such 
                                authorization.
                            ``(ii) State regulation.--Notwithstanding 
                        clause (i), the employment of State-sponsored 
                        nonimmigrants may be regulated in a manner 
                        determined by each State that participates in 
                        the State-sponsored nonimmigrant program.
            ``(7) State compacts.--
                    ``(A) In general.--States may enter into interstate 
                compacts for the joint implementation or administration 
                of the State-sponsored nonimmigrant program in such 
                States.
                    ``(B) Consideration.--A State-sponsored 
                nonimmigrant shall be considered to be sponsored by a 
                State if the State-sponsored nonimmigrant is sponsored 
                by any State subject to an interstate compact under 
                subparagraph (A) and resides in any such State.
            ``(8) Appeals.--
                    ``(A) Federal appeals.--The denial of an 
                application by a State to be a State-sponsored 
                nonimmigrant or the request to terminate the period of 
                authorized status by a State--
                            ``(i) is not reviewable by any Federal 
                        department, agency, or court; and
                            ``(ii) may not be grounds for an appeal of 
                        a termination of a visa or status for a State-
                        sponsored nonimmigrant.
                    ``(B) State appeals.--At the sole discretion of the 
                State and in a manner determined by the State, a State 
                that participates in the State-sponsored nonimmigrant 
                program may create a process for a State-sponsored 
                nonimmigrant or an alien that has applied for 
                participation in the State-sponsored nonimmigrant 
                program in the State to appeal an adjudication of an 
                application by the State or determination by the State 
                that the State-sponsored nonimmigrant violated the 
                terms or conditions that were created by the State for 
                the participation of the alien in the State-sponsored 
                nonimmigrant program in the State.
            ``(9) Waiver of rights prohibited.--
                    ``(A) In general.--Except as provided in 
                subparagraph (C), a State-sponsored nonimmigrant may 
                not be required to waive any substantive rights or 
                protections under this Act.
                    ``(B) Construction.--Nothing under this paragraph 
                may be construed to affect the interpretation of any 
                other law.
                    ``(C) Exception.--Notwithstanding subparagraph (A) 
                or any other provision of law, an alien may not be 
                provided State-sponsored nonimmigrant status unless the 
                alien has waived any right--
                            ``(i) to review or appeal under this Act of 
                        an immigration officer's determination as to 
                        the admissibility of the alien at the port of 
                        entry into the United States; or
                            ``(ii) to contest or appeal, other than on 
                        the basis of an application for asylum, any 
                        action for removal of the alien.
            ``(10) Tax responsibilities.--An employer shall comply with 
        all applicable Federal, State, and local tax laws with respect 
        to each State-sponsored nonimmigrant employed by the employer.
            ``(11) Labor and tax laws.--State-sponsored nonimmigrants 
        shall be subject to all Federal, State, and local laws 
        regarding taxation, employment, or hiring of persons in the 
        State.
            ``(12) Federal public benefits.--
                    ``(A) In general.--State-sponsored nonimmigrants--
                            ``(i) are not entitled to the premium 
                        assistance tax credit authorized under section 
                        36B of the Internal Revenue Code of 1986;
                            ``(ii) shall be subject to the rules 
                        applicable to individuals who are not lawfully 
                        present set forth in subsection (e) of such 
                        section; and
                            ``(iii)(I) shall not be allowed any credit 
                        under section 24 or 32 of the Internal Revenue 
                        Code of 1986; and
                            ``(II) in the case of a joint return, no 
                        credit shall be allowed under either such 
                        section if both spouses are State-sponsored 
                        nonimmigrants.
                    ``(B) Employer fee.--For purposes of subsections 
                (a)(2) and (b)(1)(B) of 4980H of the Internal Revenue 
                Code of 1986, a State-sponsored nonimmigrant shall be 
                treated as a full-time employee certified as having 
                enrolled in a qualified health plan with respect to 
                which an applicable premium tax credit or cost-sharing 
                reduction is allowed or paid with respect to the 
                employee.
                    ``(C) Other benefits.--Notwithstanding any other 
                provision of law, a State-sponsored nonimmigrant shall 
                not be eligible for--
                            ``(i) any assistance or benefits provided 
                        under a State program funded under the 
                        temporary assistance for needy families program 
                        under part A of title IV of the Social Security 
                        Act (42 U.S.C. 601 et seq.);
                            ``(ii) any medical assistance provided 
                        under a State Medicaid plan under title XIX of 
                        the Social Security Act (42 U.S.C. 1396 et 
                        seq.) or under a waiver of such plan, other 
                        than emergency medical assistance provided 
                        under paragraphs (2) and (3) of section 
                        1903(v), and any child health assistance 
                        provided under a State child health plan under 
                        title XXI of the Social Security Act (42 U.S.C. 
                        1397aa et seq.) or under a waiver of such plan;
                            ``(iii) any benefits or assistance provided 
                        under the supplemental nutrition assistance 
                        program established under the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
                            ``(iv) supplemental security income 
                        benefits provided under title XVI of the Social 
                        Security Act (42 U.S.C. 1381);
                            ``(v) Federal Pell Grants under section 401 
                        of the Higher Education Act of 1965 (20 U.S.C. 
                        1070a);
                            ``(vi) housing vouchers under section 8 of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437f);
                            ``(vii) Federal old-age, survivors, and 
                        disability insurance benefits under title II of 
                        the Social Security Act (42 U.S.C. 401 et 
                        seq.);
                            ``(viii) health insurance benefits for the 
                        aged and disabled under the Medicare Program 
                        established under title XVIII of the Social 
                        Security Act (42 U.S.C. 1395 et seq.); or
                            ``(ix) assistance or benefits provided 
                        under the program of block grants to States for 
                        social services under subtitle A of title XX of 
                        the Social Security Act (42 U.S.C. 1397 et 
                        seq.).
                    ``(D) Employer payments.--An employer of a State-
                sponsored nonimmigrant shall pay into the general fund 
                of the Treasury an amount equivalent to the Federal tax 
                on the wages paid to the nonimmigrants that the 
                employer would be obligated to pay under chapters 21 
                and 23 of the Internal Revenue Code of 1986 had the 
                nonimmigrants been subject to such chapters, subject to 
                the same penalties as provided for failure to pay such 
                tax.
                    ``(E) Inclusion of nonimmigrants in save.--Not 
                later than 30 days after the date of the enactment of 
                the State Sponsored Visa Pilot Program Act of 2017, the 
                Secretary shall modify the Systematic Alien 
                Verification for Entitlements Program of the United 
                States Citizenship and Immigration Services to add any 
                status under section 101(a)(15)(W) as an alien category 
                that is ineligible for any benefit program listed in 
                subparagraph (C).
            ``(13) Bonds.--
                    ``(A) In general.--States may require State-
                sponsored nonimmigrants to pay a bond in an amount 
                determined by the State to incentivize voluntary 
                compliance with the terms and conditions of the State-
                sponsored nonimmigrant program.
                    ``(B) Study.--
                            ``(i) In general.--At the end of each 
                        fiscal year, the Inspector General of the 
                        Department of Homeland Security and the 
                        Comptroller General of the United States shall 
                        each independently submit a report to the 
                        congressional committees specified in clause 
                        (iii) that identifies, for each State that 
                        participates in the State-sponsored 
                        nonimmigrant program, the percentage of State-
                        sponsored nonimmigrants that have resided or 
                        worked illegally in a State other than the 
                        State that sponsored them (not including any 
                        State-sponsored nonimmigrants who are 
                        beneficiaries of approved immigration 
                        petitions).
                            ``(ii) Assignment.--A State-sponsored 
                        nonimmigrant who resides or works illegally in 
                        a State other than the State that sponsored 
                        them shall be assigned to the percentage of the 
                        State that initially sponsored the alien if the 
                        State participates in an interstate compact.
                            ``(iii) Congressional committees.--The 
                        congressional committees specified in this 
                        clause are--
                                    ``(I) the Committee on Homeland 
                                Security and Governmental Affairs of 
                                the Senate;
                                    ``(II) the Committee on the 
                                Judiciary of the Senate;
                                    ``(III) the Committee on Homeland 
                                Security of the House of 
                                Representatives; and
                                    ``(IV) the Committee on the 
                                Judiciary of the House of 
                                Representatives.
                    ``(C) Mandatory bonds.--
                            ``(i) In general.--During the first fiscal 
                        year following a determination under 
                        subparagraph (B) by the Comptroller General or 
                        the Inspector General of the Department of 
                        Homeland Security that more than 3 percent of 
                        the State-sponsored nonimmigrants sponsored by 
                        a State violated the terms and conditions of 
                        State-sponsored nonimmigrant status in the most 
                        recently completed fiscal year, the State shall 
                        require each State-sponsored nonimmigrant in 
                        the State, as a condition of participation in 
                        the State-sponsored nonimmigrant program, to 
                        post a bond equal to not less than $4,000.
                            ``(ii) Subsequent bonds.--The bond amount 
                        under clause (i) shall be raised by $1,000 
                        during each fiscal year following a subsequent 
                        determination under subparagraph (B) by the 
                        Comptroller General or the Inspector General of 
                        the Department of Homeland Security that more 
                        than 3 percent of the State-sponsored 
                        nonimmigrants sponsored by the State violated 
                        the terms and conditions of State-sponsored 
                        nonimmigrant status in the most recently 
                        completed fiscal year.
                            ``(iii) Inflation adjustment.--Effective 
                        for the first fiscal year that begins more than 
                        6 months after the date of the enactment of the 
                        State Sponsored Visa Pilot Program Act of 2017, 
                        and for each fiscal year thereafter, the 
                        amounts described in this subparagraph shall be 
                        increased by the percentage (if any) by which 
                        the Consumer Price Index for the month of June 
                        preceding the date on which such increase takes 
                        effect exceeds the Consumer Price Index for all 
                        urban consumers published by the Department of 
                        Labor for the same month of the preceding 
                        calendar year.
                    ``(D) Reimbursement of bonds.--
                            ``(i) In general.--Bonds paid to a State 
                        under this paragraph shall be reimbursed to any 
                        State-sponsored nonimmigrant that has not 
                        worked or resided in a State other than the 
                        State that sponsored the nonimmigrant or 
                        otherwise resided in the United States without 
                        status under the immigration laws in accordance 
                        with this subparagraph.
                            ``(ii) Full reimbursement.--The full amount 
                        of the bond shall be reimbursed in full 
                        immediately after--
                                    ``(I)(aa) the alien applies to the 
                                Secretary of State (or the designee of 
                                such Secretary) at a United States 
                                embassy, consulate, or, if specified by 
                                the Secretary, other locations outside 
                                the United States; and
                                    ``(bb) in connection with the 
                                application, the State-sponsored 
                                nonimmigrant confirms his or her 
                                identity, or verifies his or her 
                                departure at such time from the United 
                                States pursuant to a biometric entry 
                                and exit data system;
                                    ``(II) an approved petition for 
                                lawful permanent residency is approved 
                                on behalf of the State-sponsored 
                                nonimmigrant; or
                                    ``(III) the State-sponsored 
                                nonimmigrant dies.
                            ``(iii) Payee.--
                                    ``(I) Death of nonimmigrant.--Upon 
                                the death of a State-sponsored 
                                nonimmigrant, payment shall be 
                                immediately paid to such State-
                                sponsored nonimmigrant's next of kin, 
                                as designated by such State-sponsored 
                                nonimmigrant on the application to be a 
                                State-sponsored nonimmigrant.
                                    ``(II) Bank account.--A State-
                                sponsored nonimmigrant may specify on 
                                the application to be a State-sponsored 
                                nonimmigrant a bank account to which 
                                such amount be sent after the 
                                satisfaction of a condition specified 
                                in clause (ii).
                            ``(iv) Denial of reimbursement.--Funds of a 
                        State-sponsored nonimmigrant held under this 
                        paragraph may not be denied by a State to the 
                        nonimmigrant unless the State demonstrates, by 
                        clear and convincing evidence, that the 
                        nonimmigrant knowingly violated a term or 
                        condition of State-sponsored nonimmigrant 
                        status--
                                    ``(I) by failing to depart the 
                                United States at the end of the period 
                                of authorized status; or
                                    ``(II) working or residing in a 
                                State that did not sponsor the 
                                nonimmigrant.
                            ``(v) Notice.--The Secretary of State, in 
                        conjunction with the Secretary of Homeland 
                        Security, shall inform the State that the 
                        State-sponsored nonimmigrant has complied with 
                        clause (i).
            ``(14) Penalties.--If a State-sponsored nonimmigrant works 
        or resides outside of the State, or any of the States under an 
        interstate compact that sponsored the nonimmigrant or fails to 
        comply with any term or condition of State-sponsored 
        nonimmigrant status, the Secretary shall--
                    ``(A) revoke the employment authorization of such 
                nonimmigrant; and
                    ``(B) initiate and expedited removal in accordance 
                with section 235.
            ``(15) State enforcement.--
                    ``(A) In general.--A State that participates in the 
                State-sponsored nonimmigrant program may enforce all 
                rules and regulations of the State-sponsored 
                nonimmigrant program in the State against employers to 
                the same extent as any other labor laws under State 
                law.
                    ``(B) Apprehension.--As a condition of 
                participation in the State-sponsored nonimmigrant 
                program, a State shall reimburse any other State and 
                any Federal agency that has apprehended and detained a 
                State-sponsored nonimmigrant sponsored by the State for 
                the full costs of apprehension, detention, or removal 
                of the nonimmigrant upon request of the apprehending 
                State or Federal agency.
                    ``(C) Process.--The Secretary shall establish a 
                process through which a State may seek reimbursement 
                under subparagraph (B).
            ``(16) Suspension of program approval.--The Secretary shall 
        suspend admissions under the State-sponsored nonimmigrant 
        program for any State that fails--
                    ``(A) to reimburse another State or a Federal 
                agency under paragraph (15)(B) not later than 1 year 
                after a final judgment against the State; or
                    ``(B) to reimburse, in accordance with paragraph 
                (13)(D), a State-sponsored nonimmigrant who--
                            ``(i) has departed the United States;
                            ``(ii) did not seek employment without 
                        authorization in a State that did not sponsor 
                        the nonimmigrant; and
                            ``(iii) did not otherwise reside in the 
                        United States without status under the 
                        immigration laws.
            ``(17) Fees.--
                    ``(A) Federal fees.--A State shall pay a fee to the 
                Secretary for each year in which the State participates 
                in the State-sponsored nonimmigrant program in an 
                amount determined by the Secretary to be necessary to 
                cover the Federal costs of overseeing the State-
                sponsored nonimmigrant program in the State.
                    ``(B) State fees.--Nothing in this subsection may 
                be construed to limit or regulate fees required by the 
                State for State-sponsored nonimmigrants or employers of 
                State-sponsored nonimmigrants.
            ``(18) Numerical limitations.--
                    ``(A) In general.--The total number of aliens who 
                may be issued visas or otherwise provided State-
                sponsored nonimmigrant status under this subsection 
                during any fiscal year may not exceed the total number 
                of visas computed under subparagraph (B).
                    ``(B) Distribution.--Subject to subparagraphs (C), 
                (D), and (E), the number of State-sponsored 
                nonimmigrant visas made available in a fiscal year to a 
                State that participates in the State-sponsored 
                nonimmigrant program shall be the sum of--
                            ``(i) 5,000;
                            ``(ii) the sum of the amounts computed 
                        under subparagraphs (C) and (D) in the prior 
                        year; and
                            ``(iii) the percentage of the total 
                        population in all States participating in the 
                        State-sponsored nonimmigrant program 
                        represented by the population of that State 
                        multiplied by the sum of--
                                    ``(I) 245,000;
                                    ``(II) the number of 
                                nonparticipating States multiplied by 
                                5,000; and
                                    ``(III) the total number of visas 
                                available in the previous fiscal year 
                                that were revoked or not used.
                    ``(C) Economic growth.--The amounts computed under 
                subparagraphs (A) and (B) for the prior fiscal year 
                shall be adjusted annually in proportion to the 
                percentage increase or decrease in the Gross Domestic 
                Product of the United States in the prior year, as 
                determined by the Bureau of Economic Analysis of the 
                Department of Commerce.
                    ``(D) Compliance.--
                            ``(i) Increases.--The number of State-
                        sponsored nonimmigrant visas made available to 
                        a State under subparagraph (C) shall be 
                        increased by 10 percent over the prior fiscal 
                        year in each fiscal year immediately following 
                        a fiscal year in which less than 3 percent of 
                        the State-sponsored nonimmigrants sponsored by 
                        the State violated the terms and conditions of 
                        State-sponsored nonimmigrant status, as 
                        determined by the Inspector General of the 
                        Department of Homeland Security or the 
                        Comptroller General of the United States in the 
                        reports required under paragraph (13)(B).
                            ``(ii) Decreases.--The number of State-
                        sponsored nonimmigrant visas made available to 
                        a State under subparagraph (C) shall be 
                        decreased by 50 percent in each fiscal year 
                        immediately following a fiscal year in which 
                        more than 3 percent of the State-sponsored 
                        nonimmigrants sponsored by the State complied 
                        with the terms and conditions of State-
                        sponsored nonimmigrant status, as determined by 
                        the Inspector General of the Department of 
                        Homeland Security or the Comptroller General of 
                        the United States in the reports required under 
                        paragraph (13)(B).
                            ``(iii) Suspension.--State-sponsored 
                        nonimmigrant visas shall not be made available 
                        for a State during the 5-year period following 
                        four consecutive fiscal years in which more 
                        than 3 percent of the State-sponsored 
                        nonimmigrants sponsored by the State violated 
                        the terms and conditions of State-sponsored 
                        nonimmigrant status, as determined by the 
                        Inspector General of the Department of Homeland 
                        Security or the Comptroller General of the 
                        United States in the reports required under 
                        paragraph (13)(B).
                    ``(E) Principal aliens.--
                            ``(i) In general.--The numerical 
                        limitations under this paragraph shall apply 
                        only to principal aliens being admitted to the 
                        United States from abroad and not to aliens 
                        accompanying or following to join the principal 
                        alien under section 101(a)(15)(W)(ii) or aliens 
                        previously admitted.
                            ``(ii) State exclusion.--The Secretary may 
                        not grant a visa or status to an alien who is 
                        not the principal alien sponsored by a State if 
                        the State request that no such aliens be 
                        admitted.
            ``(19) Admissibility determination.--
                    ``(A) In general.--At the request of a State that 
                participates in the State-based nonimmigrant program, 
                the Secretary shall waive the grounds of 
                inadmissibility under subparagraphs (A), (B), (C), and 
                (G) of section 212(a)(6), paragraphs (7) and (9) of 
                section 212(a), and sections 240B(d)(1)(B) and 
                241(a)(5) and the grounds of deportability under 
                subparagraphs (A) through (D) of section 237(a)(1) and 
                section 237(a)(3) on behalf of an alien described in 
                subparagraph (B).
                    ``(B) Aliens described.--An alien described in this 
                subsection is an alien who--
                            ``(i) was physically present in the United 
                        States on December 31, 2016;
                            ``(ii) is sponsored by a State under the 
                        State-based nonimmigrant program;
                            ``(iii) otherwise meets the requirements of 
                        State-based nonimmigrant status under paragraph 
                        (4); and
                            ``(iv) fulfills the requirements under 
                        paragraph (20).
                    ``(C) Savings provision.--Nothing in this paragraph 
                may be construed to exempt an alien described in 
                subparagraph (B) or the State from the numerical 
                limitation under paragraph (18).
            ``(20) Requirements.--
                    ``(A) Application.--An alien may apply to the 
                Secretary for a waiver of inadmissibility or 
                deportability under paragraph (19) concurrently with an 
                application for a visa or status under section 
                101(a)(15)(W).
                    ``(B) Evidence of presence or employment.--
                            ``(i) Conclusive documents.--An alien may 
                        conclusively demonstrate presence in the United 
                        States in compliance with paragraph (19)(B)(i) 
                        by submitting records demonstrating such 
                        presence that have been maintained by the 
                        Social Security Administration, the Internal 
                        Revenue Service, or any other Federal, State, 
                        or local government agency or educational 
                        institution.
                            ``(ii) Other documents.--An alien who is 
                        unable to submit a document described in 
                        subparagraph (A) may satisfy the requirements 
                        under this section by submitting at least three 
                        other types of reliable documents that provide 
                        evidence of presence, employment or study in 
                        the United States, including--
                                    ``(I) bank or remittance records;
                                    ``(II) business or employer 
                                records;
                                    ``(III) records of any organization 
                                that assists workers in employment;
                                    ``(IV) education records; and
                                    ``(V) deeds, mortgages, or 
                                contracts to which the alien has been a 
                                party.
                    ``(C) Fees.--
                            ``(i) In general.--An alien submitting an 
                        application under subparagraph (A) shall pay a 
                        fee in an amount determined by the Secretary to 
                        be necessary to cover the cost of adjudicating 
                        the application and reviewing the application 
                        for fraud.
                            ``(ii) Penalty.--In addition to the fee 
                        under clause (i), an alien seeking a waiver 
                        under paragraph (19) shall pay a penalty of not 
                        less than $1,000, which shall be deposited into 
                        the Treasury of the United States after the 
                        approval of the application under subparagraph 
                        (A).
                    ``(D) Criminal penalty.--
                            ``(i) Violation.--It shall be unlawful for 
                        any person to knowingly--
                                    ``(I) file, or assist in filing, an 
                                application under this paragraph if 
                                such application--
                                            ``(aa) falsifies, 
                                        misrepresents, conceals, or 
                                        covers up a material fact;
                                            ``(bb) makes any false, 
                                        fictitious, or fraudulent 
                                        statements or representations; 
                                        or
                                            ``(cc) makes or uses any 
                                        false writing or document 
                                        knowing the same to contain any 
                                        false, fictitious, or 
                                        fraudulent statement or entry; 
                                        or
                                    ``(II) create or supply a false 
                                writing or document for use in making 
                                such an application.
                            ``(ii) Penalty.--Any person who violates 
                        clause (i) shall be fined in accordance with 
                        title 18, United States Code, imprisoned not 
                        more than 5 years, or both.
                            ``(iii) Inadmissibility.--An alien who is 
                        convicted of violating clause (i) shall be 
                        considered to be inadmissible to the United 
                        States on the grounds described in section 
                        212(a)(6)(C)(i) and subject to immediate 
                        removal from the United States.
                    ``(E) Fraud prevention program.--The Secretary and 
                the Attorney General shall jointly develop an 
                administrative program to prevent fraud with respect to 
                applications submitted under this paragraph that 
                provides for--
                            ``(i) fraud prevention training for 
                        administrative adjudicators;
                            ``(ii) the regular audit of pending and 
                        approved applications for examples and patterns 
                        of fraud or abuse;
                            ``(iii) the receipt and evaluation of 
                        reports of fraud or abuse;
                            ``(iv) the identification of deficiencies 
                        in administrative practice or procedure that 
                        encourage fraud or abuse;
                            ``(v) the remedy of any identified 
                        deficiencies; and
                            ``(vi) the referral of cases of identified 
                        or suspected fraud or other misconduct for 
                        investigation.
                    ``(F) Ineligible aliens.--
                            ``(i) Removal authorized.--Except as 
                        provided in clause (ii), if the Secretary makes 
                        a final determination to deny an application 
                        under this section, the Secretary shall place 
                        the applicant in removal proceedings to which 
                        the alien would otherwise be subject.
                            ``(ii) Aliens with prior orders.--If the 
                        final determination to deny an application 
                        concerns an alien with an existing order of 
                        exclusion, deportation, removal, or voluntary 
                        departure from the United States, such order 
                        shall be enforced to the same extent as if the 
                        application had not been made.
                    ``(G) Employment records.--Copies of employment 
                records or other evidence of employment provided by an 
                alien or by an alien's employer in support of an 
                alien's application under this subsection may not be 
                used in a civil or criminal prosecution or 
                investigation of that employer under section 247A or 
                the tax laws of the United States for the prior 
                unlawful employment of that alien, regardless of the 
                adjudication of such application or reconsideration by 
                the Secretary of such alien's prima facie eligibility 
                determination. Employers that provide unauthorized 
                aliens with copies of employment records or other 
                evidence of employment pursuant to an application under 
                this title shall not be subject to civil and criminal 
                liability pursuant to such section 274A for employing 
                such unauthorized aliens. The protections for employers 
                and aliens shall not apply if the aliens or employers 
                submit employment records that are deemed to be 
                fraudulent.
                    ``(H) Construction.--Nothing in this subsection may 
                be construed to limit the authority of the State to 
                require additional monetary penalties, other evidence 
                of physical presence, or any other requirement for 
                aliens described in paragraph (19)(B) to participate in 
                the State-based nonimmigrant program in such State.''.
    (b) Judicial Review.--Section 242(a)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1252(a)(2)) is amended by adding at the end 
the following:
                    ``(E) Judicial review of certain eligibility 
                determinations.--If an alien's application under 
                section 214(s)(20) is denied or revoked, judicial 
                review shall be instituted in the United States 
                District Court for the District of Columbia and shall 
                be limited to determinations of the constitutionality 
                of section 214(s), or any regulations implemented 
                pursuant to such section.''.
    (c) Nonimmigrants With Approved Immigrant Petitions.--Section 245 
of the Immigration and Nationality Act (8 U.S.C. 1255) is amended--
            (1) in subsection (a)--
                    (A) by striking ``if (1) the alien'' and inserting 
                the following: ``if--
            ``(1) the alien'';
                    (B) by striking ``adjustment, (2) the alien'' and 
                inserting the following: ``adjustment;
            ``(2) the alien'';
                    (C) by striking ``residence, and (3) an immigrant 
                visa'' and inserting the following: ``residence; and
            ``(3) an immigrant visa''; and
                    (D) in paragraph (3), by striking ``him at the time 
                his application is filed'' and inserting ``the alien at 
                the time the alien's application is adjudicated''; and
            (2) by adding at the end the following:
    ``(n) Adjustment of Status Application After an Approved Immigrant 
Petition.--
            ``(1) Application.--An alien who has an approved immigrant 
        petition may file an adjustment of status application under 
        subsection (a), which shall remain pending until a visa number 
        becomes available.
            ``(2) Status.--An alien who has properly filed an 
        adjustment of status application under subsection (a) shall, 
        throughout the pendency of such application--
                    ``(A) have a lawful status and be considered 
                lawfully present for purposes of section 212; and
                    ``(B) following a biometric background check, be 
                eligible for employment and travel authorization 
                incident to such status.''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall take effect on the first day 
of the first fiscal year that begins after the date of the enactment of 
this Act.
                                 <all>
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