with respect to any employment after the 
end of such time period.’’. 
SEC. 6. PREEMPTION AND STATES’ RIGHTS. 
Section 274A(h)(2) of the Immigration and Nation-
ality Act (8 U.S.C. 1324a(h)(2)) is amended to read as fol-
lows: 
‘‘(2) PREEMPTION.— 
‘‘(A) SINGLE, NATIONAL POLICY.—The pro-
visions of this section preempt any State or local 
law, ordinance, policy, or rule, including any 
criminal or civil fine or penalty structure, inso-
far as they may now or hereafter relate to the 
hiring, 
continued 
employment, 
or 
status 
verification for employment eligibility purposes, 
of unauthorized aliens. 
‘‘(B) STATE
ENFORCEMENT
OF
FEDERAL 
LAW.— 
‘‘(i) BUSINESS
LICENSING.—A State, 
locality, municipality, or political subdivi-
sion may exercise its authority over busi-
ness licensing and similar laws as a pen-
alty for failure to use the verification sys-
tem described in subsection (d) to verify em-
ployment eligibility when and as required 
under subsection (b). 
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‘‘(ii) GENERAL RULES.—A State, at its 
own cost, may enforce the provisions of this 
section, but only insofar as such State fol-
lows the Federal regulations implementing 
this section, applies the Federal penalty 
structure set out in this section, and com-
plies with all Federal rules and guidance 
concerning implementation of this section. 
Such State may collect any fines assessed 
under this section. An employer may not be 
subject to enforcement, including audit and 
investigation, by both a Federal agency and 
a State for the same violation under this 
section. Whichever entity, the Federal agen-
cy or the State, is first to initiate the en-
forcement action, has the right of first re-
fusal to proceed with the enforcement ac-
tion. The Secretary must provide copies of 
all guidance, training, and field instruc-
tions provided to Federal officials imple-
menting the provisions of this section to 
each State.’’. 
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SEC. 7. REPEAL. 
(a) IN GENERAL.—Subtitle A of title IV of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 
1996 (8 U.S.C. 1324a note) is repealed. 
(b) REFERENCES.—Any reference in any Federal law, 
Executive order, rule, regulation, or delegation of authority, 
or any document of, or pertaining to, the Department of 
Homeland Security, Department of Justice, or the Social 
Security Administration, to the employment eligibility con-
firmation system established under section 404 of the Illegal 
Immigration Reform and Immigrant Responsibility Act of 
1996 (8 U.S.C. 1324a note) is deemed to refer to the employ-
ment eligibility confirmation system established under sec-
tion 274A(d) of the Immigration and Nationality Act, as 
amended by section 3 of this Act. 
(c) EFFECTIVE DATE.—This section shall take effect 
on the date that is 36 months after the date of the enactment 
of this Act. 
(d) CLERICAL AMENDMENT.—The table of sections, in 
section 1(d) of the Illegal Immigration Reform and Immi-
grant Responsibility Act of 1996, is amended by striking 
the items relating to subtitle A of title IV. 
SEC. 8. PENALTIES. 
Section 274A of the Immigration and Nationality Act 
(8 U.S.C. 1324a) is amended— 
(1) in subsection (e)(1)— 
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(A) by striking ‘‘Attorney General’’ each 
place such term appears and inserting ‘‘Sec-
retary of Homeland Security’’; and 
(B) in subparagraph (D), by striking 
‘‘Service’’ and inserting ‘‘Department of Home-
land Security’’; 
(2) in subsection (e)(4)— 
(A) in subparagraph (A), in the matter be-
fore clause (i), by inserting ‘‘, subject to para-
graph (10),’’ 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 $2,500 and not 
more than $5,000’’; 
(C) in subparagraph (A)(ii), by striking 
‘‘not less than $2,000 and not more than $5,000’’ 
and inserting ‘‘not less than $5,000 and not 
more than $10,000’’; 
(D) in subparagraph (A)(iii), by striking 
‘‘not less than $3,000 and not more than 
$10,000’’ and inserting ‘‘not less than $10,000 
and not more than $25,000’’; and 
(E) by moving the margin of the continu-
ation text following subparagraph (B) two ems 
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to the left and by amending subparagraph (B) to 
read as follows: 
‘‘(B) may require the person or entity to 
take such other remedial action as is appro-
priate.’’; 
(3) in subsection (e)(5)— 
(A) in the paragraph heading, strike ‘‘PA-
PERWORK’’; 
(B) by inserting ‘‘, subject to paragraphs 
(10) through (12),’’ after ‘‘in an amount’’; 
(C) by striking ‘‘$100’’ and inserting 
‘‘$1,000’’; 
(D) by striking ‘‘$1,000’’ and inserting 
‘‘$25,000’’; and 
(E) by adding at the end the following: 
‘‘Failure by a person or entity to utilize the em-
ployment eligibility verification system as re-
quired by law, or providing information to the 
system that the person or entity knows or reason-
ably believes to be false, shall be treated as a vio-
lation of subsection (a)(1)(A).’’; 
(4) by adding at the end of subsection (e) the fol-
lowing: 
‘‘(10) EXEMPTION
FROM
PENALTY
FOR
GOOD 
FAITH VIOLATION.—In the case of imposition of a 
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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 re-
ferral by person or entity and in the case of imposi-
tion of a civil penalty under paragraph (5) for a vio-
lation of subsection (a)(1)(B) for hiring or recruit-
ment or referral by a person or entity, the penalty 
otherwise imposed may be waived or reduced if the vi-
olator establishes that the violator acted in good faith. 
‘‘(11) AUTHORITY TO DEBAR EMPLOYERS FOR 
CERTAIN VIOLATIONS.— 
‘‘(A) IN GENERAL.—If a person or entity is 
determined by the Secretary of Homeland Secu-
rity to be a repeat violator of paragraph (1)(A) 
or (2) of subsection (a), or is convicted of a 
crime under this section, such person or entity 
may be considered for debarment from the re-
ceipt of Federal contracts, grants, or cooperative 
agreements in accordance with the debarment 
standards and pursuant to the debarment proce-
dures set forth in the Federal Acquisition Regu-
lation. 
‘‘(B) DOES NOT HAVE CONTRACT, GRANT, 
AGREEMENT.—If the Secretary of Homeland Se-
curity or the Attorney General wishes to have a 
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mine whether to list the person or entity on the 
List of Parties Excluded from Federal Procure-
ment, and if so, for what duration and under 
what scope. 
‘‘(D) REVIEW.—Any decision to debar a 
person or entity in accordance with this para-
graph shall be reviewable pursuant to part 9.4 of 
the Federal Acquisition Regulation. 
‘‘(12) OFFICE FOR STATE AND LOCAL GOVERN-
MENT COMPLAINTS.—The Secretary of Homeland Se-
curity shall establish an office— 
‘‘(A) to which State and local government 
agencies may submit information indicating po-
tential violations of subsection (a), (b), or (g)(1) 
that were generated in the normal course of law 
enforcement or the normal course of other official 
activities in the State or locality; 
‘‘(B) that is required to indicate to the com-
plaining State or local agency within 5 business 
days of the filing of such a complaint by identi-
fying whether the Secretary will further inves-
tigate the information provided; 
‘‘(C) that is required to investigate those 
complaints filed by State or local government 
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agencies that, on their face, have a substantial 
probability of validity; 
‘‘(D) that is required to notify the com-
plaining State or local agency of the results of 
any such investigation conducted; and 
‘‘(E) that is required to report to the Con-
gress annually the number of complaints received 
under this paragraph, the States and localities 
that filed such complaints, and the resolution of 
the complaints investigated by the Secretary.’’; 
and 
(5) 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 $5,000 for each unauthorized alien with respect 
to which such a violation occurs, imprisoned for not 
more than 18 months, or both, notwithstanding the 
provisions of any other Federal law relating to fine 
levels.’’. 
SEC. 9. FRAUD AND MISUSE OF DOCUMENTS. 
Section 1546(b) of title 18, United States Code, is 
amended— 
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(1) in paragraph (1), by striking ‘‘identification 
document,’’ and inserting ‘‘identification document or 
document meant to establish work authorization (in-
cluding the documents described in section 274A(b) of 
the Immigration and Nationality Act),’’; and 
(2) in paragraph (2), by striking ‘‘identification 
document’’ and inserting ‘‘identification document or 
document meant to establish work authorization (in-
cluding the documents described in section 274A(b) of 
the Immigration and Nationality Act),’’. 
SEC. 10. PROTECTION OF SOCIAL SECURITY ADMINISTRA-
TION PROGRAMS. 
(a) FUNDING UNDER AGREEMENT.—Effective for fis-
cal years beginning on or after October 1, 2013, the Com-
missioner 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 274A(d) of the Immigration and Na-
tionality Act (8 U.S.C. 1324a(d)), as amended by sec-
tion 3 of this Act, including (but not limited to)— 
(A) acquiring, installing, and maintaining 
technological equipment and systems necessary 
for the fulfillment of the responsibilities of the 
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Commissioner under such section 274A(d), 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 provided by the em-
ployment eligibility verification system estab-
lished under such section; 
(2) provide such funds annually in advance of 
the applicable quarter based on estimating method-
ology agreed to by the Commissioner and the Sec-
retary (except in such instances where the delayed en-
actment of an annual appropriation may preclude 
such quarterly payments); and 
(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 Admin-
istration 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, 2013, has not been 
reached as of October 1 of such fiscal year, the latest agree-
ment between the Commissioner and the Secretary of Home-
land Security providing for funding to cover the costs of 
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the responsibilities of the Commissioner under section 
274A(d) of the Immigration and Nationality Act (8 U.S.C. 
1324a(d)) 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 employment eligibility verification 
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 Appro-
priations of the House of Representatives and the Com-
mittee on Finance, the Committee on the Judiciary, and 
the Committee on Appropriations of the Senate of the fail-
ure 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 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 negotia-
tions between the Commissioner and the Secretary in order 
to reach such an agreement. 
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SEC. 11. FRAUD PREVENTION. 
(a) BLOCKING MISUSED SOCIAL SECURITY ACCOUNT 
NUMBERS.—The Secretary of Homeland Security, in con-
sultation with the Commissioner of Social Security, shall 
establish a program in which social security account num-
bers that have been identified to be subject to unusual mul-
tiple use in the employment eligibility verification system 
established under section 274A(d) of the Immigration and 
Nationality Act (8 U.S.C. 1324a(d)), as amended by section 
3 of this Act, or that are otherwise suspected or determined 
to have been compromised by identity fraud or other misuse, 
shall be blocked from use for such system purposes unless 
the individual using such number is able to establish, 
through secure and fair additional security procedures, that 
the individual is the legitimate holder of the number. 
(b) ALLOWING SUSPENSION OF USE OF CERTAIN SO-
CIAL SECURITY ACCOUNT NUMBERS.—The Secretary of 
Homeland Security, in consultation with the Commissioner 
of Social Security, shall establish a program which shall 
provide a reliable, secure method by which victims of iden-
tity fraud and other individuals may suspend or limit the 
use of their social security account number or other identi-
fying information for purposes of the employment eligibility 
verification system established under section 274A(d) of the 
Immigration and Nationality Act (8 U.S.C. 1324a(d)), as 
amended by section 3 of this Act. The Secretary may imple-
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ment the program on a limited pilot program basis before 
making it fully available to all individuals. 
(c) ALLOWING PARENTS TO PREVENT THEFT
OF 
THEIR CHILD’S IDENTITY.—The Secretary of Homeland 
Security, in consultation with the Commissioner of Social 
Security, shall establish a program which shall provide a 
reliable, secure method by which parents or legal guardians 
may suspend or limit the use of the social security account 
number or other identifying information of a minor under 
their care for the purposes of the employment eligibility 
verification system established under 274A(d) of the Immi-
gration and Nationality Act (8 U.S.C. 1324a(d)), as 
amended by section 3 of this Act. The Secretary may imple-
ment the program on a limited pilot program basis before 
making it fully available to all individuals. 
SEC. 12. USE OF EMPLOYMENT ELIGIBILITY VERIFICATION 
PHOTO TOOL. 
An employer who uses the photo matching tool used 
as part of the E-Verify System shall match the photo tool 
photograph to both the photograph on the identity or em-
ployment eligibility document provided by the employee 
and to the face of the employee submitting the document 
for employment verification purposes. 
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SEC. 13. IDENTITY AUTHENTICATION EMPLOYMENT ELIGI-
BILITY VERIFICATION PILOT PROGRAMS. 
Not later than 48 months after the date of the enact-
ment of this Act, the Secretary of Homeland Security, after 
consultation with the Commissioner of Social Security and 
the Director of the National Institute of Standards and 
Technology, shall establish by regulation not less than 2 
Identity 
Authentication 
Employment 
Eligibility 
Verification pilot programs, each using a separate and dis-
tinct technology (the ‘‘Authentication Pilots’’). The purpose 
of the Authentication Pilots 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 either of 
the Authentication Pilots. Any subject employer may cancel 
the employer’s participation in the Authentication Pilot 
after one year after electing to participate without prejudice 
to future participation. The Secretary shall report to the 
Committee on the Judiciary of the House of Representatives 
and the Committee on the Judiciary of the Senate the Sec-
retary’s findings on the Authentication Pilots, including the 
authentication technologies chosen, not later than 12 
months after commencement of the Authentication Pilots. 
SEC. 14. INSPECTOR GENERAL AUDITS. 
(a) IN GENERAL.—Not later than 1 year after the date 
of the enactment of this Act, the Inspector General of the 
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Social Security Administration shall complete audits of the 
following categories in order to uncover evidence of individ-
uals who are not authorized to work in the United States: 
(1) Workers who dispute wages reported on their 
social security account number when they believe 
someone else has used such number and name to re-
port wages. 
(2) Children’s social security account numbers 
used for work purposes. 
(3) Employers whose workers present significant 
numbers of mismatched social security account num-
bers or names for wage reporting. 
(b) SUBMISSION.—The Inspector General of the Social 
Security Administration shall submit the audits completed 
under subsection (a) to the Committee on Ways and Means 
of the House of Representative and the Committee on Fi-
nance of the Senate for review of the evidence of individuals 
who are not authorized to work in the United States. The 
Chairmen of those Committees shall then determine infor-
mation to be shared with the Secretary of Homeland Secu-
rity so that such Secretary can investigate the unauthorized 
employment demonstrated by such evidence. 
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Union Calendar No. 508 
113TH CONGRESS 
2D SESSION 
H. R. 1772 
[Report No. 113–677, Part I] 
A BILL 
To amend the Immigration and Nationality Act to 
make mandatory and permanent requirements 
relating to use of an electronic employment eligi-
bility verification system, and for other purposes. 
DECEMBER 16, 2014 
Reported from the Committee on the Judiciary with an 
amendment 
DECEMBER 16, 2014 
The Committees on Ways and Means and Education and 
the Workforce discharged; committed to the Committee 
of the Whole House on the State of the Union and or-
dered to be printed 
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