201 
acceptable by the Secretary, and make it avail-
able for inspection by officers of the Depart-
ment of Homeland Security, the Department of 
Justice, or the Department of Labor during the 
period beginning on the date the verification is 
completed and ending on the later of— 
‘‘(i) the date that is 3 years after the 
date of hire; or 
‘‘(ii) the date that is 1 year after the 
date on which the individual’s employment 
is terminated. 
‘‘(B) COPYING OF DOCUMENTATION PER-
MITTED.—Notwithstanding any other provision 
of law, a person or entity may copy a document 
presented by an individual pursuant to this sec-
tion and may retain the copy, but only for the 
purpose of complying with the requirements of 
this section. 
‘‘(c) REVERIFICATION OF PREVIOUSLY HIRED INDI-
VIDUALS.— 
‘‘(1) MANDATORY
REVERIFICATION.—In the 
case of a person or entity that uses the System for 
the hiring, recruiting, or referring for a fee an indi-
vidual for employment in the United States, the per-
son or entity shall submit an inquiry using the Sys-
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202 
tem to verify the identity and employment authoriza-
tion of— 
‘‘(A) an individual with a limited period of 
employment authorization, within 3 business 
days before the date on which such employment 
authorization expires; and 
‘‘(B) an individual, not later than 10 days 
after receiving a notification from the Secretary 
requiring the verification of such individual pur-
suant to subsection (a)(4)(C). 
‘‘(2) 
REVERIFICATION
PROCEDURES.—The 
verification procedures under subsection (b) shall 
apply to reverifications under this subsection, except 
that employers shall— 
‘‘(A) use a form designated by the Sec-
retary for purposes of this paragraph; and 
‘‘(B) retain the form in paper, microfiche, 
microfilm, electronic, or other format deemed 
acceptable by the Secretary, and make it avail-
able for inspection by officers of the Depart-
ment of Homeland Security, the Department of 
Justice, or the Department of Labor during the 
period beginning on the date the reverification 
commences and ending on the later of— 
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203 
‘‘(i) the date that is 3 years after the 
date of reverification; or 
‘‘(ii) the date that is 1 year after the 
date on which the individual’s employment 
is terminated. 
‘‘(3) LIMITATION ON REVERIFICATION.—Except 
as provided in paragraph (1), a person or entity may 
not otherwise reverify the identity and employment 
authorization of a current employee, including an 
employee continuing in employment. 
‘‘(d) GOOD FAITH COMPLIANCE.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, a person or entity that uses 
the System is considered to have complied with the 
requirements of this section notwithstanding a tech-
nical failure of the System, or other technical or pro-
cedural failure to meet such requirement if there 
was a good faith attempt to comply with the require-
ment. 
‘‘(2) EXCEPTION
FOR
FAILURE
TO
CORRECT 
AFTER NOTICE.—Paragraph (1) shall not apply if— 
‘‘(A) the failure is not de minimis; 
‘‘(B) the Secretary has provided notice to 
the person or entity of the failure, including an 
explanation as to why it is not de minimis; 
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204 
‘‘(C) the person or entity has been pro-
vided a period of not less than 30 days (begin-
ning after the date of the notice) to correct the 
failure; and 
‘‘(D) the person or entity has not corrected 
the failure voluntarily within such period. 
‘‘(3) EXCEPTION FOR PATTERN OR PRACTICE 
VIOLATORS.—Paragraph (1) shall not apply to a 
person or entity that has engaged or is engaging in 
a pattern or practice of violations of paragraph 
(1)(A) or (2) of section 274A(a). 
‘‘(4) DEFENSE.—In the case of a person or en-
tity that uses the System for the hiring, recruiting, 
or referring for a fee an individual for employment 
in the United States, the person or entity shall not 
be liable to a job applicant, an employee, the Federal 
Government, or a State or local government, under 
Federal, State, or local criminal or civil law, for any 
employment-related action taken with respect to an 
employee in good-faith reliance on information pro-
vided by the System. Such person or entity shall be 
deemed to have established compliance with its obli-
gations under this section, absent a showing by the 
Secretary, by clear and convincing evidence, that the 
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205 
employer had knowledge that an employee is an un-
authorized alien. 
‘‘(e) LIMITATIONS.— 
‘‘(1) NO
NATIONAL
IDENTIFICATION
CARD.— 
Nothing in this section shall be construed to author-
ize, directly or indirectly, the issuance or use of na-
tional identification cards or the establishment of a 
national identification card. 
‘‘(2) USE OF RECORDS.—Notwithstanding any 
other provision of law, nothing in this section shall 
be construed to permit or allow any department, bu-
reau, or other agency of the United States Govern-
ment to utilize any information, database, or other 
records assembled under this section for any purpose 
other than the verification of identity and employ-
ment authorization of an individual or to ensure the 
secure, appropriate, and nondiscriminatory use of 
the System. 
‘‘(f) PENALTIES.— 
‘‘(1) IN GENERAL.—Except as provided in this 
subsection, the provisions of subsections (e) through 
(g) of section 274A shall apply with respect to com-
pliance with the provisions of this section and pen-
alties for noncompliance for persons or entitles that 
use the System. 
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206 
‘‘(2) CEASE AND DESIST ORDER WITH CIVIL 
MONEY PENALTIES FOR HIRING, RECRUITING, AND 
REFERRAL VIOLATIONS.—Notwithstanding the civil 
money penalties set forth in section 274A(e)(4), with 
respect to a violation of paragraph (1)(A) or (2) of 
section 274A(a) by a person or entity that has hired, 
recruited, or referred for a fee, an individual for em-
ployment in the United States, a cease and desist 
order— 
‘‘(A) shall require the person or entity to 
pay a civil penalty in an amount, subject to 
subsection (d), of— 
‘‘(i) not less than $2,500 and not 
more than $5,000 for each unauthorized 
alien with respect to whom a violation of 
either such subsection occurred; 
‘‘(ii) not less than $5,000 and not 
more than $10,000 for each such alien in 
the case of a person or entity previously 
subject to one order under this paragraph; 
or 
‘‘(iii) not less than $10,000 and not 
more than $25,000 for each such alien in 
the case of a person or entity previously 
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207 
subject to more than one order under this 
paragraph; and 
‘‘(B) may require the person or entity to 
take such other remedial action as appropriate. 
‘‘(3) ORDER FOR CIVIL MONEY PENALTY FOR 
VIOLATIONS.—With respect to a violation of section 
274A(a)(1)(B), the order under this paragraph shall 
require the person or entity to pay a civil penalty in 
an amount, subject to paragraphs (4), (5), and (6), 
of not less than $1,000 and not more than $25,000 
for each individual with respect to whom such viola-
tion occurred. Failure by a person or entity to utilize 
the System as required by law or providing informa-
tion to the System that the person or entity knows 
or reasonably believes to be false, shall be treated as 
a violation of section 274A(a)(1)(A). 
‘‘(4) EXEMPTION
FROM
PENALTY
FOR
GOOD 
FAITH VIOLATION.— 
‘‘(A) IN
GENERAL.—A person or entity 
that uses the System is presumed to have acted 
with knowledge for purposes of paragraphs 
(1)(A) and (2) of section 274A(a) if the person 
or entity fails to make an inquiry to verify the 
identity and employment authorization of the 
individual through the System. 
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208 
‘‘(B) GOOD
FAITH
EXEMPTION.—In the 
case of imposition of a civil penalty under para-
graph (2)(A) with respect to a violation of para-
graph (1)(A) or (2) of section 274A(a) for hir-
ing or continuation of employment or recruit-
ment or referral by a person or entity, and in 
the case of imposition of a civil penalty under 
paragraph (3) for a violation of section 
274A(a)(1)(B) for hiring or recruitment or re-
ferral by a person or entity, the penalty other-
wise imposed may be waived or reduced if the 
person or entity establishes that the person or 
entity acted in good faith. 
‘‘(5) MITIGATION ELEMENTS.—For purposes of 
paragraphs (2)(A) and (3), when assessing the level 
of civil money penalties, in addition to the good faith 
of the person or entity being charged, due consider-
ation shall be given to the size of the business, the 
seriousness of the violation, whether or not the indi-
vidual was an unauthorized alien, and the history of 
previous violations. 
‘‘(6) 
CRIMINAL
PENALTY.—Notwithstanding 
section 274A(f)(1) and the provisions of any other 
Federal law relating to fine levels, any person or en-
tity that is required to comply with the provisions of 
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209 
this section and that engages in a pattern or prac-
tice of violations of paragraph (1) or (2) of section 
274A(a), shall be fined not more than $5,000 for 
each unauthorized alien with respect to whom such 
a violation occurs, imprisoned for not more than 18 
months, or both. 
‘‘(7) ELECTRONIC
VERIFICATION
COMPENSA-
TION
ACCOUNT.—Civil money penalties collected 
under this subsection shall be deposited in the Elec-
tronic Verification Compensation Account for the 
purpose of compensating individuals for lost wages 
as a result of a final nonconfirmation issued by the 
System that was based on government error or omis-
sion, as set forth in subsection (b)(4)(F)(ii)(IV). 
‘‘(8) DEBARMENT.— 
‘‘(A) IN GENERAL.—If a person or entity 
is determined by the Secretary to be a repeat 
violator of paragraph (1)(A) or (2) of section 
274A(a) or is convicted of a crime under sec-
tion 274A, such person or entity may be consid-
ered for debarment from the receipt of Federal 
contracts, grants, or cooperative agreements in 
accordance with the debarment standards and 
pursuant to the debarment procedures set forth 
in the Federal Acquisition Regulation. 
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210 
‘‘(B) NO
CONTRACT, 
GRANT, 
AGREE-
MENT.—If the Secretary or the Attorney Gen-
eral wishes to have a person or entity consid-
ered for debarment in accordance with this 
paragraph, and such a person or entity does not 
hold a Federal contract, grant or cooperative 
agreement, the Secretary or Attorney General 
shall refer the matter to the Administrator of 
General Services to determine whether to list 
the person or entity on the List of Parties Ex-
cluded from Federal Procurement, and if so, for 
what duration and under what scope. 
‘‘(C) CONTRACT, GRANT, AGREEMENT.—If 
the Secretary or the Attorney General wishes to 
have a person or entity considered for debar-
ment in accordance with this paragraph, and 
such person or entity holds a Federal contract, 
grant, or cooperative agreement, the Secretary 
or Attorney General shall advise all agencies or 
departments holding a contract, grant, or coop-
erative agreement with the person or entity of 
the Government’s interest in having the person 
or entity considered for debarment, and after 
soliciting and considering the views of all such 
agencies and departments, the Secretary or At-
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211 
torney General may refer the matter to the ap-
propriate lead agency to determine whether to 
list the person or entity on the List of Parties 
Excluded from Federal Procurement, and if so, 
for what duration and under what scope. 
‘‘(D) REVIEW.—Any decision to debar a 
person or entity in accordance with this sub-
section shall be reviewable pursuant to part 9.4 
of the Federal Acquisition Regulation. 
‘‘(9) PREEMPTION.—The provisions of this sec-
tion preempt any State or local law, ordinance, pol-
icy, or rule, including any criminal or civil fine or 
penalty structure, relating to the hiring, continued 
employment, or status verification for employment 
eligibility purposes, of unauthorized aliens, except 
that a State, locality, municipality, or political sub-
division may exercise its authority over business li-
censing and similar laws as a penalty for failure to 
use the System as required under this section. 
‘‘(g) UNFAIR IMMIGRATION-RELATED EMPLOYMENT 
PRACTICES AND THE SYSTEM.— 
‘‘(1) IN GENERAL.—In addition to the prohibi-
tions on discrimination set forth in section 274B, it 
is an unfair immigration-related employment prac-
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212 
tice for a person or entity, in the course of utilizing 
the System— 
‘‘(A) to use the System for screening an 
applicant prior to the date of hire; 
‘‘(B) to terminate the employment of an 
individual or take any adverse employment ac-
tion with respect to that individual due to a 
tentative nonconfirmation issued by the System; 
‘‘(C) to use the System to screen any indi-
vidual for any purpose other than confirmation 
of identity and employment authorization as 
provided in this section; 
‘‘(D) to use the System to verify the iden-
tity and employment authorization of a current 
employee, including an employee continuing in 
employment, other than reverification author-
ized under subsection (c); 
‘‘(E) to use the System to discriminate 
based on national origin or citizenship status; 
‘‘(F) to willfully fail to provide an indi-
vidual with any notice required under this title; 
‘‘(G) to require an individual to make an 
inquiry under the self-verification procedures 
described in subsection (a)(4)(B) or to provide 
the results of such an inquiry as a condition of 
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213 
employment, or hiring, recruiting, or referring; 
or 
‘‘(H) to terminate the employment of an 
individual or take any adverse employment ac-
tion with respect to that individual based upon 
the need to verify the identity and employment 
authorization of the individual as required by 
subsection (b). 
‘‘(2) PREEMPLOYMENT SCREENING AND BACK-
GROUND
CHECK.—Nothing in paragraph (1)(A) 
shall be construed to preclude a preemployment 
screening or background check that is required or 
permitted under any other provision of law. 
‘‘(3) CIVIL MONEY PENALTIES FOR DISCRIMINA-
TORY
CONDUCT.—Notwithstanding 
section 
274B(g)(2)(B)(iv), the penalties that may be im-
posed by an administrative law judge with respect to 
a finding that a person or entity has engaged in an 
unfair immigration-related employment practice de-
scribed in paragraph (1) are— 
‘‘(A) not less than $1,000 and not more 
than $4,000 for each individual discriminated 
against; 
‘‘(B) in the case of a person or entity pre-
viously subject to a single order under this 
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214 
paragraph, not less than $4,000 and not more 
than $10,000 for each individual discriminated 
against; and 
‘‘(C) in the case of a person or entity pre-
viously subject to more than one order under 
this paragraph, not less than $6,000 and not 
more than $20,000 for each individual discrimi-
nated against. 
‘‘(4) ELECTRONIC
VERIFICATION
COMPENSA-
TION
ACCOUNT.—Civil money penalties collected 
under this subsection shall be deposited in the Elec-
tronic Verification Compensation Account for the 
purpose of compensating individuals for lost wages 
as a result of a final nonconfirmation issued by the 
System that was based on government error or omis-
sion, as set forth in subsection (b)(4)(F)(ii)(IV). 
‘‘(h) CLARIFICATION.—All rights and remedies pro-
vided under any Federal, State, or local law relating to 
workplace rights, including but not limited to back pay, 
are available to an employee despite— 
‘‘(1) the employee’s status as an unauthorized 
alien during or after the period of employment; or 
‘‘(2) the employer’s or employee’s failure to 
comply with the requirements of this section. 
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215 
‘‘(i) DEFINITION.—In this section, the term ‘date of 
hire’ means the date on which employment for pay or 
other remuneration commences.’’. 
(b) CONFORMING AMENDMENT.—The table of con-
tents for the Immigration and Nationality Act is amended 
by inserting after the item relating to section 274D the 
following: 
‘‘Sec. 274E. Requirements for the electronic verification of employment eligi-
bility.’’. 
SEC. 302. MANDATORY ELECTRONIC VERIFICATION FOR 
THE AGRICULTURAL INDUSTRY. 
(a) IN GENERAL.—The requirements for the elec-
tronic verification of identity and employment authoriza-
tion described in section 274E of the Immigration and Na-
tionality Act, as inserted by section 301 of this Act, shall 
apply to a person or entity hiring, recruiting, or referring 
for a fee an individual for agricultural employment in the 
United States in accordance with the effective dates set 
forth in subsection (b). 
(b) EFFECTIVE DATES.— 
(1) HIRING.—Subsection (a) shall apply to a 
person or entity hiring an individual for agricultural 
employment in the United States as follows: 
(A) With respect to employers having 500 
or more employees in the United States on the 
date of the enactment of this Act, on the date 
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216 
that is 6 months after completion of the appli-
cation period described in section 101(c). 
(B) With respect to employers having 100 
or more employees in the United States (but 
less than 500 such employees) on the date of 
the enactment of this Act, on the date that is 
9 months after completion of the application pe-
riod described in section 101(c). 
(C) With respect to employers having 20 
or more employees in the United States (but 
less than 100 such employees) on the date of 
the enactment of this Act, on the date that is 
12 months after completion of the application 
period described in section 101(c). 
(D) With respect to employers having one 
or more employees in the United States (but 
less than 20 such employees) on the date of the 
enactment of this Act, on the date that is 15 
months after completion of the application pe-
riod described in section 101(c). 
(2) RECRUITING AND REFERRING FOR A FEE.— 
Subsection (a) shall apply to a person or entity re-
cruiting or referring for a fee an individual for agri-
cultural employment in the United States on the 
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217 
date that is 12 months after completion of the appli-
cation period described in section 101(c). 
(3) TRANSITION
RULE.—Except as required 
under subtitle A of title IV of the Illegal Immigra-
tion Reform and Immigrant Responsibility Act of 
1996 (8 U.S.C. 1324a note) (as in effect on the day 
before the effective date described in section 
303(a)(4)), Executive Order No. 13465 (8 U.S.C. 
1324a note; relating to Government procurement), 
or any State law requiring persons or entities to use 
the E-Verify Program described in section 403(a) of 
the Illegal Immigration Reform and Immigrant Re-
sponsibility Act of 1996 (8 U.S.C. 1324a note) (as 
in effect on the day before the effective date de-
scribed in section 303(a)(4)), sections 274A and 
274B of the Immigration and Nationality Act (8 
U.S.C. 1324a and 1324b) shall apply to a person or 
entity hiring, recruiting, or referring an individual 
for employment in the United States until the appli-
cable effective date under this subsection. 
(4) E-VERIFY VOLUNTARY USERS AND OTHERS 
DESIRING
EARLY
COMPLIANCE.—Nothing in this 
subsection shall be construed to prohibit persons or 
entities, including persons or entities that have vol-
untarily elected to participate in the E-Verify Pro-
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218 
gram described in section 403(a) of the Illegal Im-
migration Reform and Immigrant Responsibility Act 
of 1996 (8 U.S.C. 1324a note) (as in effect on the 
day before the effective date described in section 
303(a)(4)), from seeking early compliance on a vol-
untary basis. 
(5) DELAYED
IMPLEMENTATION.—The Sec-
retary of Homeland Security, in consultation with 
the Secretary of Agriculture, may delay the effective 
dates described in paragraphs (1) and (2) for a pe-
riod not to exceed 180 days if the Secretary deter-
mines, based on the most recent report described in 
section 133 and other relevant data, that a signifi-
cant number of applications under section 101 re-
main pending. 
(c) RURAL ACCESS TO ASSISTANCE FOR TENTATIVE 
NONCONFIRMATION REVIEW PROCESS.— 
(1) IN GENERAL.—The Secretary of Homeland 
Security shall coordinate with the Secretary of Agri-
culture, in consultation with the Commissioner of 
Social Security, to create a process for individuals to 
seek assistance in contesting a tentative noncon-
firmation as described in section 274E(b)(4)(D) of 
the Immigration and Nationality Act, as inserted by 
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219 
section 301 of this Act, at local offices or service 
centers of the U.S. Department of Agriculture. 
(2) STAFFING
AND
RESOURCES.—The Sec-
retary of Homeland Security and the Secretary of 
Agriculture shall ensure that local offices and service 
centers of the U.S. Department of Agriculture are 
staffed appropriately and have the resources nec-
essary to provide information and support to individ-
uals seeking the assistance described in paragraph 
(1), including by facilitating communication between 
such individuals and the Department of Homeland 
Security or the Social Security Administration. 
(3) CLARIFICATION.—Nothing in this sub-
section shall be construed to delegate authority or 
transfer responsibility for reviewing and resolving 
tentative nonconfirmations from the Secretary of 
Homeland Security and the Commissioner of Social 
Security to the Secretary of Agriculture. 
(d) DOCUMENT ESTABLISHING EMPLOYMENT AU-
THORIZATION AND IDENTITY.—In accordance with section 
274E(b)(3)(A)(vii) of the Immigration and Nationality 
Act, as inserted by section 301 of this Act, and not later 
than 12 months after the completion of the application 
period described in section 101(c) of this Act, the Sec-
retary of Homeland Security shall recognize documentary 
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220 
evidence of certified agricultural worker status described 
in section 102(a)(2) of this Act as valid proof of employ-
ment authorization and identity for purposes of section 
274E(b)(3)(A) of the Immigration and Nationality Act, 
as inserted by section 301 of this Act. 
(e) AGRICULTURAL EMPLOYMENT.—For purposes of 
this section, the term ‘‘agricultural employment’’ means 
agricultural labor or services, as defined by section 
101(a)(15)(H)(ii) of the Immigration and Nationality Act 
(8 U.S.C. 1101(a)(15)(H)(ii)), as amended by this Act. 
SEC. 303. COORDINATION WITH E-VERIFY PROGRAM. 
(a) REPEAL.— 
(1) IN GENERAL.—Subtitle A of title IV of the 
Illegal Immigration Reform and Immigrant Respon-
sibility Act of 1996 (8 U.S.C. 1324a note) is re-
pealed. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions, in section 1(d) of the Illegal Immigration Re-
form and Immigrant Responsibility Act of 1996, is 
amended by striking the items relating to subtitle A 
of title IV. 
(3) REFERENCES.—Any reference in any Fed-
eral, State, or local law, Executive order, rule, regu-
lation, or delegation of authority, or any document 
of, or pertaining to, the Department of Homeland 
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221 
Security, Department of Justice, or the Social Secu-
rity Administration, to the E-Verify Program de-
scribed in section 403(a) of the Illegal Immigration 
Reform and Immigrant Responsibility Act of 1996 
(8 U.S.C. 1324a note), or to the employment eligi-
bility confirmation system established under section 
404 of the Illegal Immigration Reform and Immi-
grant Responsibility Act of 1996 (8 U.S.C. 1324a 
note), is deemed to refer to the employment eligi-
bility confirmation system established under section 
274E of the Immigration and Nationality Act, as in-
serted by section 301 of this Act. 
(4) EFFECTIVE
DATE.—This subsection, and 
the amendments made by this subsection, shall take 
effect on the date that is 30 days after the date on 
which final rules are published under section 309(a). 
(b) FORMER E-VERIFY MANDATORY USERS, IN-
CLUDING FEDERAL CONTRACTORS.—Beginning on the ef-
fective date in subsection (a)(4), the Secretary of Home-
land Security shall require employers required to partici-
pate in the E-Verify Program described in section 403(a) 
of the Illegal Immigration Reform and Immigrant Respon-
sibility Act of 1996 (8 U.S.C. 1324a note) by reason of 
any Federal, State, or local law, Executive order, rule, reg-
ulation, or delegation of authority, including employers re-
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222 
quired to participate in such program by reason of Federal 
acquisition laws (and regulations promulgated under those 
laws, including the Federal Acquisition Regulation), to 
comply with the requirements of section 274E of the Im-
migration and Nationality Act, as inserted by section 301 
of this Act (and any additional requirements of such Fed-
eral acquisition laws and regulation) in lieu of any require-
ment to participate in the E-Verify Program. 
(c) FORMER E-VERIFY VOLUNTARY USERS.—Begin-
ning on the effective date in subsection (a)(4), the Sec-
retary of Homeland Security shall provide for the vol-
untary compliance with the requirements of section 274E 
of the Immigration and Nationality Act, as inserted by 
section 301 of this Act, by employers voluntarily electing 
to participate in the E-Verify Program described in sec-
tion 403(a) of the Illegal Immigration Reform and Immi-
grant Responsibility Act of 1996 (8 U.S.C. 1324a note) 
before such date. 
SEC. 304. FRAUD AND MISUSE OF DOCUMENTS. 
Section 1546(b) of title 18, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘identification 
document,’’ and inserting ‘‘identification document 
or document meant to establish employment author-
ization,’’; 
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223 
(2) in paragraph (2), by striking ‘‘identification 
document’’ and inserting ‘‘identification document or 
document meant to establish employment authoriza-
tion,’’; and 
(3) in the matter following paragraph (3) by in-
serting 
‘‘or 
section 
274E(b)’’ 
after 
‘‘section 
274A(b)’’. 
SEC. 305. TECHNICAL AND CONFORMING AMENDMENTS. 
(a) UNLAWFUL EMPLOYMENT OF ALIENS.—Section 
274A of the Immigration and Nationality Act (8 U.S.C. 
1324a) is amended— 
(1) in paragraph (1)(B)(ii) of subsection (a), by 
striking ‘‘subsection (b).’’ and inserting ‘‘section 
274B.’’; and 
(2) in the matter preceding paragraph (1) of 
subsection (b), by striking ‘‘The requirements re-
ferred’’ and inserting ‘‘Except as provided in section 
274E, the requirements referred’’. 
(b) UNFAIR IMMIGRATION-RELATED EMPLOYMENT 
PRACTICES.—Section 274B(a)(1) of the Immigration and 
Nationality Act (8 U.S.C. 1324b(a)(1)) is amended in the 
matter preceding subparagraph (A) by inserting ‘‘includ-
ing misuse of the verification system as described in sec-
tion 274E(g)’’ after ‘‘referral for a fee,’’. 
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224 
SEC. 306. PROTECTION OF SOCIAL SECURITY ADMINISTRA-
TION PROGRAMS. 
(a) FUNDING UNDER AGREEMENT.—Effective for 
fiscal years beginning on or after October 1, 2025, the 
Commissioner and the Secretary shall ensure that an 
agreement is in place which shall— 
(1) provide funds to the Commissioner for the 
full costs of the responsibilities of the Commissioner 
with respect to employment eligibility verification, 
including under this title and the amendments made 
by this title, and including— 
(A) acquiring, installing, and maintaining 
technological equipment and systems necessary 
for the fulfillment of such responsibilities, but 
only that portion of such costs that are attrib-
utable exclusively to such responsibilities; and 
(B) responding to individuals who contest 
a tentative nonconfirmation or administratively 
appeal a final nonconfirmation provided with 
respect to employment eligibility verification; 
(2) provide such funds annually in advance of 
the applicable quarter based on an estimating meth-
odology agreed to by the Commissioner and the Sec-
retary (except in such instances where the delayed 
enactment of an annual appropriation may preclude 
such quarterly payments); and 
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(3) require an annual accounting and reconcili-
ation of the actual costs incurred and the funds pro-
vided under the agreement, which shall be reviewed 
by the Inspectors General of the Social Security Ad-
ministration and the Department of Homeland Secu-
rity. 
(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, 2025, has not 
been reached as of October 1 of such fiscal year, the latest 
agreement described in such subsection shall be deemed 
in effect on an interim basis for such fiscal year until such 
time as an agreement required under subsection (a) is sub-
sequently reached, except that the terms of such interim 
agreement shall be modified to adjust for inflation and any 
increase or decrease in the volume of requests under the 
employment eligibility verification system. In any case in 
which an interim agreement applies for any fiscal year 
under this subsection, the Commissioner and the Sec-
retary 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 Com-
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mittee 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 re-
quired under subsection (a) has been reached for such fis-
cal 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 Sec-
retary in order to reach such an agreement. 
SEC. 307. REPORT ON THE IMPLEMENTATION OF THE 
ELECTRONIC 
EMPLOYMENT 
VERIFICATION 
SYSTEM. 
Not later than 24 months after the date on which 
final rules are published under section 309(a), and annu-
ally thereafter, the Secretary shall submit to Congress a 
report that includes the following: 
(1) An assessment of the accuracy rates of the 
responses of the electronic employment verification 
system established under section 274E of the Immi-
gration and Nationality Act, as inserted by section 
301 of this Act (referred to in this section as the 
‘‘System’’), including tentative and final noncon-
firmation notices issued to employment-authorized 
individuals and confirmation notices issued to indi-
viduals who are not employment authorized. 
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(2) An assessment of any challenges faced by 
persons or entities (including small employers) in 
utilizing the System. 
(3) An assessment of any challenges faced by 
employment-authorized individuals who are issued 
tentative or final nonconfirmation notices. 
(4) An assessment of the incidence of unfair 
immigration-related employment practices, as de-
scribed in section 274E(g) of the Immigration and 
Nationality Act, as inserted by section 301 of this 
Act, related to the use of the System. 
(5) An assessment of the photo matching and 
other identity authentication tools, as described in 
section 274E(a)(4) of the Immigration and Nation-
ality Act, as inserted by section 301 of this Act, in-
cluding— 
(A) an assessment of the accuracy rates of 
such tools; 
(B) an assessment of the effectiveness of 
such tools at preventing identity fraud and 
other misuse of identifying information; 
(C) an assessment of any challenges faced 
by persons, entities, or individuals utilizing such 
tools; and 
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(D) an assessment of operation and main-
tenance costs associated with such tools. 
(6) A summary of the activities and findings of 
the U.S. Citizenship and Immigrations Services E- 
Verify Monitoring and Compliance Branch, or any 
successor office, including— 
(A) the number, types and outcomes of au-
dits, investigations, and other compliance activi-
ties initiated by the Branch in the previous 
year; 
(B) the capacity of the Branch to detect 
and prevent violations of section 274E(g) of the 
Immigration and Nationality Act, as inserted by 
this Act; and 
(C) an assessment of the degree to which 
persons and entities misuse the System, includ-
ing— 
(i) use of the System before an indi-
vidual’s date of hire; 
(ii) failure to provide required notifi-
cations to individuals; 
(iii) use of the System to interfere 
with or otherwise impede individuals’ as-
sertions of their rights under other laws; 
and 
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(iv) use of the System for unauthor-
ized purposes; and 
(7) An assessment of the impact of implementa-
tion of the System in the agricultural industry and 
the use of the verification system in agricultural in-
dustry hiring and business practices. 
SEC. 308. MODERNIZING AND STREAMLINING THE EMPLOY-
MENT ELIGIBILITY VERIFICATION PROCESS. 
Not later than 12 months after the date of the enact-
ment of this Act, the Secretary, in consultation with the 
Commissioner, shall submit to Congress a plan to mod-
ernize 
and 
streamline 
the 
employment 
eligibility 
verification process that shall include— 
(1) procedures to allow persons and entities to 
verify the identity and employment authorization of 
newly hired individuals where the in-person, physical 
examination of identity and employment authoriza-
tion documents is not practicable; 
(2) a proposal to create a simplified employ-
ment verification process that allows employers that 
utilize the employment eligibility verification system 
established under section 274E of the Immigration 
and Nationality Act, as inserted by section 301 of 
this Act, to verify the identity and employment au-
thorization of individuals without also having to 
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complete and retain Form I–9, Employment Eligi-
bility Verification, or any subsequent replacement 
form; and 
(3) any other proposal that the Secretary deter-
mines would simplify the employment eligibility 
verification process without compromising the integ-
rity or security of the system. 
SEC. 309. RULEMAKING AND PAPERWORK REDUCTION ACT. 
(a) IN GENERAL.—Not later than 180 days prior to 
the end of the application period defined in section 101(c) 
of this Act, the Secretary shall publish in the Federal Reg-
ister proposed rules implementing this title and the 
amendments made by this title. The Secretary shall final-
ize such rules not later than 180 days after the date of 
publication. 
(b) PAPERWORK REDUCTION ACT.— 
(1) IN
GENERAL.—The requirements under 
chapter 35 of title 44, United States Code, (com-
monly known as the ‘‘Paperwork Reduction Act’’) 
shall apply to any action to implement this title or 
the amendments made by this title. 
(2) ELECTRONIC FORMS.—All forms designated 
or established by the Secretary that are necessary to 
implement this title and the amendments made by 
this title shall be made available in paper and elec-
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tronic formats, and shall be designed in such a man-
ner to facilitate electronic completion, storage, and 
transmittal. 
(3) LIMITATION ON USE OF FORMS.—All forms 
designated or established by the Secretary that are 
necessary to implement this title, and the amend-
ments made by this title, and any information con-
tained in or appended to such forms, may not be 
used for purposes other than for enforcement of this 
Act and any other provision of Federal criminal law. 
Æ 
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