‘‘(I) the fact that a discrepancy has been
indicated regarding the employee; and
‘‘(II) the nature of the discrepancy;
‘‘(ii) the Secretary may not, pursuant to this
subsection, notify the employer of the nature of the
discrepancy;
‘‘(iii) an employer notified of the discrepancy
under subparagraph (A)(ii) shall notify the employee
that a discrepancy has been indicated within 14 days
after the employer receives the notification;
‘‘(iv) the employee shall contact an office of the
Social Security Administration within 14 days after
being notified of the discrepancy under clause (iii);
‘‘(v) the Secretary shall notify the employee of
the nature of the discrepancy, upon a written re-
quest by the employee or a request made by the em-
ployee in person at an office of the Social Security
Administration;
‘‘(vi) the Secretary shall notify the employee,
the current employer of the employee, and the Com-
missioner of Immigration and Naturalization, in
writing, of the resolution or confirmation of the dis-
crepancy, within 30 days after the employee contacts
the Social Security Administration under clause (iv);
‘‘(vii) the current employer of the employee
shall reverify the social security account number
through the program established under this para-
graph within 10 days after the Secretary notifies the
employer, under clause (vi), that the discrepancy has
been resolved; and
‘‘(viii) unless the Secretary notifies the em-
ployer, under clause (vi), that the discrepancy has
been confirmed, the employer may not take any ac-
tion to penalize the employee based on the discrep-
ancy.
‘‘(E)(i) The Secretary may not charge a fee to any
employer or employee in connection with the utilization of
the program established under this paragraph.
‘‘(ii) No employer may charge a fee to—
‘‘(I) an employee of the employer in connection
with the utilization of the program; or
‘‘(II) a job applicant in connection with, or an-
ticipation of, utilization of the program.
‘‘(2) The Secretary may by regulation exempt any
employer from the obligation to use the program estab-
lished under paragraph (1) regarding any employee whose
employment with the employer includes only the perform-
ance of services described in subparagraph (B) or (C) of
section 209(a)(6) for remuneration described in such sub-
paragraph.
‘‘(3)(A) Failure by an employer to comply with para-
graph (1) of this subsection shall be considered to be a
violation of section 274A(a)(1)(A) of the Immigration and
Naturalization Act (8 U.S.C. 1324a(a)(1)(A)), for pur-
poses of section 274A(e) of such Act, as modified by sub-
paragraph (B).
‘‘(B) For purposes of subparagraph (A), section
274A(e) of the Immigration and Naturalization Act (8
U.S.C. 1324a(e)) shall be applied by substituting the term
‘employee’ for the term ‘unauthorized alien’ in clause (i)
of section 274A(e)(4)(A) of such Act, and for the term
‘alien’ in clauses (ii) and (iii) of such section.
‘‘(4)(A) Any person or business who knowingly and
willfully requests or obtains any record, or information,
from or under the program established under paragraph
(1) under false pretenses shall be guilty of an infraction
and shall be subject to a fine as provided in title 18,
United States Code.
‘‘(B) The penalties described in section 552a(i) of
title 5, United States Code, shall not apply to an activity
that is subject to a penalty under subparagraph (A).
‘‘(5) For purposes of this subsection:
‘‘(A) The term ‘American employer’ has the
meaning given the term in section 210(e), as such
section may from time to time be amended, except
that the terms ‘State’ and ‘United States’ within
such section shall have the meaning given the term
‘United States’ in subparagraph (D) of this para-
graph.
‘‘(B) The term ‘employee’ has the meaning
given the term in section 210(j), as such section may
from time to time be amended, and does not include
a job applicant.
‘‘(C) The term ‘new employee’ means an em-
ployee who commences an employment more than 10
years after the date of the enactment of the Social
Security Account Number Anti-Fraud Act.
‘‘(D) The term ‘United States’ has the meaning
given the term in section 101(38) of the Immigra-
tion and Nationality Act, as such section may from
time to time be amended.’’.
SEC. 4. IMPLEMENTATION OF SOCIAL SECURITY ACCOUNT
NUMBER ANTI-FRAUD PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Not later than
180 days after the date of the enactment of this Act, the
Secretary shall implement the Social Security Account
Number Anti-Fraud Program on a partial and interim
basis, as provided in this section.
(b) INITIAL PERIOD.—The Secretary shall make the
Social Security Account Number Anti-Fraud Program
available for the 18-month period beginning 180 days
after the date of the enactment of this Act to each em-
ployer that participates in Phase II of the Telephone Ver-
ification System administered by the Immigration and
Naturalization Service. If fewer than 200 of the employers
agree to participate in the program, the Secretary may
make the program available to additional employers in the
States of California, Florida, Illinois, New York, and
Texas until the program is available to 200 employers.
(c) REPORT
ON INITIAL IMPLEMENTATION.—Not
later than 15 months after the beginning of the 18-month
period described in subsection (b), the Secretary shall sub-
mit to the Congress a report that contains—
(1) an evaluation of the effectiveness of the So-
cial Security Account Number Anti-Fraud Program
as the program is implemented under subsections (a)
and (b) of this section; and
(2) a description of any cooperation between the
Social Security Administration and the Immigration
and Naturalization Service regarding the program.
(d) 5-YEAR EXPANSION.—
(1) REQUIREMENT REGARDING NEW EMPLOY-
EES.—
(A) IN GENERAL.—Not later than 5 years
after the expiration of the 18-month period de-
scribed in subsection (b), each employer in the
States of California, Florida, Illinois, New
York, and Texas shall use the Social Security
Account Number Anti-Fraud Program to verify,
within 30 days after the commencement of the
employment of the employee, the social security
account number of each new employee of the
employer.
(B) EXCEPTION.—Paragraph (1) shall not
be construed to require an employer to verify
the social security account number of an em-
ployee if, under regulations issued under section
205(u)(2) of the Social Security Act (as added
by this Act), the employer is not required to
verify the social security account number of the
employee.
(2) AVAILABILITY REGARDING OTHER EMPLOY-
EES.—Not later than 5 years after the expiration of
the 18-month period described in subsection (b), the
Secretary shall make the Social Security Account
Number Anti-Fraud Program available to each em-
ployer in the States of California, Florida, Illinois,
New York, and Texas.
(e) DEFINITIONS.—For purposes of this section:
(1) The term ‘‘employee’’ has the meaning
given the term in section 210(j) of the Social Secu-
rity Act (42 U.S.C. 410(j)), as such section may
from time to time be amended, and does not include
a job applicant.
(2) The term ‘‘new employee’’ means an em-
ployee who commences an employment more than 5
years after the expiration of the 18-month period de-
scribed in subsection (b).
(3) The term ‘‘Social Security Account Number
Anti-Fraud Program’’ means the program estab-
lished under subsection (u) of section 205 of the So-
cial Security Act (as added by this Act), but does
not include paragraph (1)(A)(i)(I) or (3) of such
subsection.
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