I 
111TH CONGRESS 
1ST SESSION H. R. 1096 
To create an electronic employment eligibility verification system to ensure 
that all workers in the United States are legally able to work, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 13, 2009 
Mr. MARSHALL (for himself, Mr. DEFAZIO, Mr. BARTLETT, Mr. BARROW, and 
Mr. TAYLOR) introduced the following bill; which was referred to the 
Committee on the Judiciary, and in addition to the Committees on Ways 
and Means and Education and Labor, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To create an electronic employment eligibility verification 
system to ensure that all workers in the United States 
are legally able to work, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Electronic Employ-
ment Eligibility Verification and Illegal Immigration Con-
trol Act’’. 
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SEC. 2. EMPLOYMENT ELIGIBILITY VERIFICATION SYSTEM. 
(a) IN GENERAL.—Section 274A(b) of the Immigra-
tion and Nationality Act (8 U.S.C. 1324a(b)) is amended 
by adding at the end the following: 
‘‘(7) EMPLOYMENT ELIGIBILITY VERIFICATION 
SYSTEM.— 
‘‘(A) IN
GENERAL.—The Secretary of 
Homeland Security shall establish and admin-
ister a verification system through which the 
Secretary (or a designee of the Secretary)— 
‘‘(i) responds to inquiries made by 
persons at any time through a toll-free 
telephone line and other toll-free electronic 
media concerning an individual’s identity 
and whether the individual is authorized to 
be employed; and 
‘‘(ii) maintains records of the inquir-
ies that were made, of verifications pro-
vided (or not provided), and of the codes 
provided to inquirers as evidence of their 
compliance with their obligations under 
this section. 
‘‘(B) DESIGN
AND
OPERATION
OF
SYS-
TEM.—The verification system shall be designed 
and operated— 
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‘‘(i) to maximize its reliability and 
ease of use by persons and other entities 
consistent with insulating and protecting 
the privacy and security of the underlying 
information; 
‘‘(ii) to respond to all inquiries made 
by such persons and entities on whether 
individuals are authorized to be employed 
and to register all times when such inquir-
ies are not received; 
‘‘(iii) with appropriate administrative, 
technical, and physical safeguards to pre-
vent unauthorized disclosure of personal 
information; and 
‘‘(iv) to have reasonable safeguards 
against the system’s resulting in unlawful 
discriminatory practices based on national 
origin or citizenship status, including— 
‘‘(I) the selective or unauthorized 
use of the system to verify eligibility; 
‘‘(II) the use of the system prior 
to an offer of employment; or 
‘‘(III) the exclusion of certain in-
dividuals from consideration for em-
ployment as a result of a perceived 
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likelihood that additional verification 
will be required, beyond what is re-
quired for most job applicants. 
‘‘(C) RESPONSIBILITIES OF THE COMMIS-
SIONER OF SOCIAL SECURITY.—As part of the 
verification system, the Commissioner of Social 
Security, in consultation with the Secretary of 
Homeland Security (and any designee of the 
Secretary selected to establish and administer 
the verification system), shall establish a reli-
able, secure method, which, within the time pe-
riods specified under subparagraphs (B) and 
(C) of paragraph (3), compares the name and 
Social Security account number provided in an 
inquiry against such information maintained by 
the Commissioner in order to validate (or not 
validate) the information provided regarding an 
individual whose identity and employment eligi-
bility must be confirmed, the correspondence of 
the name and number, and whether the indi-
vidual has presented a Social Security account 
number that is not valid for employment. The 
Commissioner shall not disclose or release So-
cial Security information (other than such 
verification or nonverification) except as pro-
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vided for in this section or section 205(c)(2)(I) 
of the Social Security Act. 
‘‘(D) RESPONSIBILITIES
OF
THE
SEC-
RETARY OF HOMELAND SECURITY.— 
‘‘(i) As part of the verification system, 
the Secretary of Homeland Security (in 
consultation with any designee of the Sec-
retary selected to establish and administer 
the verification system), shall establish a 
reliable, secure method, which, within the 
time periods specified under subparagraphs 
(B) and (C) of paragraph (3), compares 
the name and alien identification or au-
thorization number which are provided in 
an inquiry against such information main-
tained by the Secretary in order to validate 
(or not validate) the information provided, 
the correspondence of the name and num-
ber, and whether the alien is authorized to 
be employed in the United States. 
‘‘(ii) When a single employer has sub-
mitted to the verification system pursuant 
to subparagraphs (B) and (C) of para-
graph (3) the identical Social Security ac-
count number in more than one instance, 
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or when multiple employers have submitted 
to the verification system pursuant to such 
paragraph the identical Social Security ac-
count number, in a manner which indicates 
the possible fraudulent use of that number, 
the Secretary of Homeland Security shall 
conduct an investigation, within the time 
periods specified in such subparagraphs, in 
order to ensure that no fraudulent use of 
a Social Security account number has 
taken place. If the Secretary has selected 
a designee to establish and administer the 
verification system, the designee shall no-
tify the Secretary when a single employer 
has submitted to the verification system 
pursuant to such subparagraphs the iden-
tical Social Security account number in 
more than one instance, or when multiple 
employers 
have 
submitted 
to 
the 
verification system pursuant to such para-
graph the identical Social Security account 
number, in a manner which indicates the 
possible fraudulent use of that number. 
The designee shall also provide the Sec-
retary with all pertinent information, in-
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cluding the name and address of the em-
ployer or employers who submitted the rel-
evant Social Security account number, the 
relevant Social Security account number 
submitted by the employer or employers, 
and the relevant name and date of birth of 
the employee submitted by the employer or 
employers. 
‘‘(iii) The Secretary in consultation 
with the Commissioner of Social Security, 
shall establish procedures to permit an in-
dividual who contests a tentative or final 
nonverification notice, or seeks to verify 
the individual’s own employment, to con-
tact the appropriate agency and, in a time-
ly manner, correct or update the informa-
tion used by the system. 
‘‘(iv) The Secretary shall prescribe a 
system to register employer participation 
prior to the date the employer is required 
or permitted to submit information with 
respect to an employee. 
‘‘(E) 
UPDATING
INFORMATION.—The 
Commissioner of Social Security and the Sec-
retary of Homeland Security shall update their 
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information in a manner that promotes the 
maximum accuracy and shall provide a process 
for the prompt correction of erroneous informa-
tion, including instances in which it is brought 
to their attention in the secondary verification 
process described in paragraph (3)(C). 
‘‘(F) FEDERAL TORT CLAIMS ACT.—If an 
individual alleges that the individual would not 
have been dismissed from a job but for an error 
of the verification mechanism, the individual 
may seek compensation only through the mech-
anism of the Federal Tort Claims Act, and in-
junctive relief to correct such error. No class 
action may be brought under this subpara-
graph. 
‘‘(G) PROTECTION
FROM
LIABILITY
FOR 
ACTIONS TAKEN ON THE BASIS OF INFORMA-
TION.—No person or entity shall be civilly or 
criminally liable for any action taken in good 
faith reliance on information provided through 
the employment eligibility verification mecha-
nism established under this paragraph.’’. 
(b) REPEAL OF PROVISION RELATING TO EVALUA-
TIONS AND CHANGES IN EMPLOYMENT VERIFICATION.— 
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Section 274A(d) of such Act (8 U.S.C. 1324a(d)) is re-
pealed. 
SEC. 3. EMPLOYMENT ELIGIBILITY VERIFICATION PROC-
ESS. 
Section 274A of the Immigration and Nationality Act 
(8 U.S.C. 1324a) is amended— 
(1) in subsection (a)(3), by inserting ‘‘(A)’’ 
after ‘‘DEFENSE.—’’, and by adding at the end the 
following: 
‘‘(B) FAILURE
TO
SEEK
AND
OBTAIN 
VERIFICATION.—In the case of a person or enti-
ty in the United States that hires, or continues 
to employ, an individual, or recruits or refers 
an individual for employment, the following re-
quirements apply: 
‘‘(i) 
FAILURE
TO
SEEK 
VERIFICATION.— 
‘‘(I) IN GENERAL.—If the person 
or entity has not made an inquiry, 
under 
the 
mechanism 
established 
under 
subsection 
(b)(7), 
seeking 
verification of the identity and work 
eligibility of the individual, by not 
later than the end of 3 working days 
(as specified by the Secretary of 
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Homeland Security) after the date of 
the hiring, the date specified in sub-
section (b)(8)(B) for previously hired 
individuals, or before the recruiting or 
referring 
commences, 
the 
defense 
under subparagraph (A) shall not be 
considered to apply with respect to 
any employment, except as provided in 
subclause (II). 
‘‘(II) SPECIAL RULE FOR FAIL-
URE OF VERIFICATION MECHANISM.— 
If such a person or entity in good 
faith attempts to make an inquiry in 
order to qualify for the defense under 
subparagraph (A) and the verification 
mechanism has registered that not all 
inquiries were responded to during the 
relevant time, the person or entity can 
make an inquiry until the end of the 
first subsequent working day in which 
the verification mechanism registers 
no nonresponses and qualify for such 
defense. 
‘‘(ii) 
FAILURE
TO
OBTAIN 
VERIFICATION.—If the person or entity 
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has made the inquiry described in clause 
(i)(I) but has not received an appropriate 
verification of such identity and work eligi-
bility under such mechanism within the 
time period specified under subsection 
(b)(7)(B) after the time the verification in-
quiry was received, the defense under sub-
paragraph (A) shall not be considered to 
apply with respect to any employment after 
the end of such time period.’’; 
(2) by amending subparagraph (A) of sub-
section (b)(1) to read as follows: 
‘‘(A) IN GENERAL.—The person or entity 
must attest, under penalty of perjury and on a 
form designated or established by the Secretary 
by regulation, that it has verified that the indi-
vidual is not an unauthorized alien by— 
‘‘(i) obtaining from the individual the 
individual’s Social Security account num-
ber and recording the number on the form 
(if the individual claims to have been 
issued such a number), and, if the indi-
vidual does not attest to United States citi-
zenship under paragraph (2), obtaining 
such identification or authorization number 
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established by the Department of Home-
land Security for the alien as the Secretary 
of Homeland Security may specify, and re-
cording such number on the form; and 
‘‘(ii)(I) examining a document de-
scribed in subparagraph (B); or 
‘‘(II) examining a document described 
in subparagraph (C) and a document de-
scribed in subparagraph (D). 
A person or entity has complied with the 
requirement of this paragraph with respect 
to examination of a document if the docu-
ment reasonably appears on its face to be 
genuine, reasonably appears to pertain to 
the individual whose identity and work eli-
gibility is being verified, and, if the docu-
ment bears an expiration date, that expira-
tion date has not elapsed. If an individual 
provides a document (or combination of 
documents) that reasonably appears on its 
face to be genuine, reasonably appears to 
pertain to the individual whose identity 
and work eligibility is being verified, and is 
sufficient to meet the first sentence of this 
paragraph, nothing in this paragraph shall 
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be construed as requiring the person or en-
tity to solicit the production of any other 
document or as requiring the individual to 
produce another document.’’; 
(3) in subsection (b)(1)(D)— 
(A) in clause (i), by striking ‘‘or such other 
personal identification information relating to 
the individual as the Attorney General finds, by 
regulation, sufficient for purposes of this sec-
tion’’; and 
(B) in clause (ii), by inserting before the 
period ‘‘and that contains a photograph of the 
individual’’; 
(4) in subsection (b)(2), by adding at the end 
the following: ‘‘The individual must also provide that 
individual’s Social Security account number (if the 
individual claims to have been issued such a num-
ber), and, if the individual does not attest to United 
States citizenship under this paragraph, such identi-
fication or authorization number established by the 
Department of Homeland Security for the alien as 
the Secretary may specify.’’; and 
(5) by amending paragraph (3) of subsection 
(b) to read as follows: 
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‘‘(3) RETENTION OF VERIFICATION FORM AND 
VERIFICATION.— 
‘‘(A) IN
GENERAL.—After completion of 
such form in accordance with paragraphs (1) 
and (2), the person or entity must— 
‘‘(i) retain a paper, microfiche, micro-
film, or electronic version of the form and 
make it available for inspection by officers 
of the Department of Homeland Security, 
the Special Counsel for Immigration-Re-
lated Unfair Employment Practices, or the 
Department of Labor during a period be-
ginning on the date of the hiring, recruit-
ing, or referral of the individual or the 
date of the completion of verification of a 
previously hired individual and ending— 
‘‘(I) in the case of the recruiting 
or referral of an individual, 3 years 
after the date of the recruiting or re-
ferral; 
‘‘(II) in the case of the hiring of 
an individual, the later of— 
‘‘(aa) 3 years after the date 
of such hiring; or 
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‘‘(bb) 1 year after the date 
the individual’s employment is 
terminated; and 
‘‘(III) 
in 
the 
case 
of 
the 
verification of a previously hired indi-
vidual, the later of— 
‘‘(aa) 3 years after the date 
of the completion of verification; 
or 
‘‘(bb) 1 year after the date 
the individual’s employment is 
terminated; 
‘‘(ii) make an inquiry, as provided in 
paragraph (7), using the verification sys-
tem to seek verification of the identity and 
employment eligibility of an individual, by 
not later than the end of 3 working days 
(as specified by the Secretary of Homeland 
Security) after the date of the hiring or in 
the case of previously hired individuals, the 
date specified in paragraph (8)(B), or be-
fore the recruiting or referring commences; 
and 
‘‘(iii) not commence recruitment or re-
ferral of the individual until the person or 
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entity receives verification under clause (i) 
or (ii) of subparagraph (D). 
‘‘(B) INITIAL RESPONSE.—The verification 
system shall provide verification or a tentative 
nonverification of an individual’s identity and 
employment eligibility within 3 working days of 
the initial inquiry. If providing verification or 
tentative nonverification, the verification system 
shall provide an appropriate code indicating 
such verification or such nonverification. 
‘‘(C) SECONDARY VERIFICATION PROCESS 
IN CASE OF TENTATIVE NONVERIFICATION.—In 
cases of tentative nonverification, the Secretary 
shall specify, in consultation with the Commis-
sioner of Social Security, an available secondary 
verification process to confirm the validity of in-
formation provided and to provide a final 
verification or nonverification within 10 working 
days 
after 
the 
date 
of 
the 
tentative 
nonverification. When final verification or 
nonverification is provided, the verification sys-
tem shall provide an appropriate code indicating 
such verification or nonverification. 
‘‘(D) 
VERIFICATION
OR 
NONVERIFICATION.— 
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‘‘(i) VERIFICATION UPON INITIAL IN-
QUIRY.—If 
an 
employer 
receives 
a 
verification notice under subparagraph (B) 
for an individual, the employer shall 
record, as described in subparagraph 
(A)(i), the appropriate code provided in 
such notice. 
‘‘(ii) 
TENTATIVE 
NONVERIFICATION.—If an employer re-
ceives a tentative nonverification notice 
under subparagraph (B) for an individual, 
the employer shall inform such individual 
of the issuance of such notice in writing, 
on a form prescribed by the Secretary not 
later than 3 days after receiving such no-
tice. Such individual shall acknowledge re-
ceipt of such notice in writing as described 
in paragraph (1)(A). If the individual re-
fuses to acknowledge receipt of notice, the 
individual’s employment must be termi-
nated immediately. 
‘‘(iii) NO CONTEST.—If the individual 
does 
not 
contest 
the 
tentative 
nonverification notice within 10 days of re-
ceiving notice from the individual’s em-
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ployer, the notice shall become final and 
the employer shall record, as described in 
subparagraph (A)(i), the appropriate code 
provided through the system to indicate 
the individual did not contest the tentative 
nonverification. An individual’s failure to 
contest a tentative nonverification shall not 
be considered an admission of guilt with 
respect to any violation of this Act or any 
other provision of law. 
‘‘(iv) CONTEST.—If the individual 
contests the tentative nonverification no-
tice, the individual shall submit appro-
priate information to contest such notice 
under the procedures established in sub-
paragraph (E) not later than 10 days after 
receiving the notice from the individual’s 
employer. 
‘‘(v) EFFECTIVE
PERIOD
OF
TEN-
TATIVE
NONVERIFICATION
NOTICE.—A 
tentative nonverification notice shall re-
main in effect until such notice becomes 
final under clause (iii), or the earlier of— 
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‘‘(I) a final verification notice or 
final nonverification notice is issued 
through the system; or 
‘‘(II) 10 working days after the 
individual 
contests 
a 
tentative 
nonverification under clause (iv). 
‘‘(vi) ADDITIONAL
AUTHORITY.—The 
Secretary shall have the authority to issue 
a final verification notice for an individual. 
In such a case, the Secretary shall deter-
mine the individual’s eligibility for employ-
ment in the United States and record the 
results of such determination in the system 
within 12 months. 
‘‘(vii) EFFECTIVE PERIOD OF FINAL 
NOTICE.—A final verification notice issued 
under this paragraph for an individual 
shall remain in effect— 
‘‘(I) during any continuous pe-
riod of employment of such individual 
by such employer, unless the Sec-
retary determines the final verification 
was the result of identity fraud; or 
‘‘(II) in the case of an alien au-
thorized to be employed in the United 
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States for a temporary period, during 
such period. 
‘‘(viii) 
PROHIBITION
ON
TERMI-
NATION.—An employer may not terminate 
the employment of an individual based on 
a tentative nonverification notice until such 
notice becomes final under clause (iii), an 
individual refuses to acknowledge receipt of 
tentative nonverification under clause (ii), 
or a final nonverification notice is issued 
for the individual by the System. Nothing 
in this clause shall prohibit the termination 
of employment for any other reason other 
than such tentative nonverification. 
‘‘(ix) RECORDING OF CONTEST RESO-
LUTION.—The employer shall record the 
appropriate code that is provided through 
the system to indicate a final verification 
notice or final nonverification notice as de-
scribed in paragraph (1)(A). 
‘‘(x) 
CONSEQUENCES
OF 
NONVERIFICATION.—If the employer has 
received a final nonverification regarding 
an individual, the employer shall terminate 
the employment, recruitment, or referral of 
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the individual. Such employer shall provide 
to the Secretary any information relating 
to the individual that the Secretary deter-
mines would assist the Secretary in enforc-
ing or administering the immigration laws. 
If the employer continues to employ, re-
cruit or refer the individual after receiving 
final nonverification, a rebuttable presump-
tion is created that the employer has vio-
lated subsections (a)(1)(A) and (a)(2). 
Such presumption may not apply to a 
prosecution under subsection (f)(1). 
‘‘(E) ADMINISTRATIVE REVIEW.— 
‘‘(i) IN GENERAL.—An individual who 
is terminated from employment as a result 
of a final nonverification notice may, not 
later than 60 days after the date of such 
termination, file an appeal of such notice. 
‘‘(ii) PROCEDURES.—The Secretary 
and Commissioner of Social Security shall 
develop procedures to review appeals filed 
under clause (i) and to make final deter-
minations on such appeals. 
‘‘(iii) REVIEW
FOR
ERRORS.—If a 
final determination on an appeal filed 
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under clause (i) results in verification of 
an individual’s eligibility to work in the 
United States, the administrative review 
process shall require the Secretary to de-
termine if the final nonverification notice 
issued for the individual was the result 
of— 
‘‘(I) an error or negligence on the 
part of an employee or official oper-
ating or responsible for the System; 
‘‘(II) the decision rules, proc-
esses, or procedures utilized by the 
system; or 
‘‘(III) erroneous system informa-
tion that was not the result of acts or 
omissions of the individual. 
‘‘(iv) COMPENSATION FOR ERROR.— 
‘‘(I) IN
GENERAL.—If the Sec-
retary makes a determination under 
clause 
(iii) 
that 
the 
final 
nonverification notice issued for an in-
dividual was not caused by an act or 
omission of the individual, the Sec-
retary shall compensate the individual 
for lost wages. 
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‘‘(II) CALCULATION
OF
LOST 
WAGES.—Lost wages shall be cal-
culated based on the wage rate and 
work schedule that prevailed prior to 
termination. The individual shall be 
compensated for wages lost beginning 
on the first scheduled work day after 
employment was terminated and end-
ing 180 days after completion of the 
administrative 
review 
process 
de-
scribed in this paragraph or the day 
after the individual is reinstated or 
obtains employment elsewhere, which-
ever occurs first. 
‘‘(v) 
LIMITATION
ON
COMPENSA-
TION.—For purposes of determining an in-
dividual’s compensation for the loss of em-
ployment, such compensation shall not in-
clude any period in which the individual 
was ineligible for employment in the 
United States. 
‘‘(vi) SOURCE OF FUNDS.—Compensa-
tion or reimbursement provided under this 
paragraph shall be provided from the Em-
ployment Verification Compensation Fund 
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established under section 8 and shall not 
be provided from appropriated funds. 
‘‘(F) JUDICIAL REVIEW.— 
‘‘(i) IN
GENERAL.—After the Sec-
retary makes a final determination on an 
appeal filed by an individual under the ad-
ministrative review process described in 
subparagraph (E), the individual may ob-
tain judicial review of such determination 
by a civil action commenced not later than 
60 days after the date of such decision, or 
such further time as the Secretary may 
allow. 
‘‘(ii) JURISDICTION.—A civil action 
for such judicial review shall be brought in 
the district court of the United States for 
the judicial district in which the plaintiff 
resides, or has a principal place of busi-
ness, or, if the plaintiff does not reside or 
have a principal place of business within 
any such judicial district, in the District 
Court of the United States for the District 
of Columbia. 
‘‘(iii) ANSWER.—As part of the Sec-
retary’s answer to a complaint for such ju-
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dicial review, the Secretary shall file a cer-
tified copy of the administrative record 
compiled during the administrative review 
under subparagraph (E), including the evi-
dence upon which the findings and decision 
complained of are based. The court shall 
have power to enter, upon the pleadings 
and transcript of the record, a judgment 
affirming or reversing the result of that 
administrative review, with or without re-
manding the cause for a rehearing. 
‘‘(iv) COMPENSATION FOR ERROR.— 
‘‘(I) IN GENERAL.—In cases in 
which such judicial review reverses the 
final determination of the Secretary 
made under subparagraph (E), the 
court shall compensate the individual 
for lost wages. 
‘‘(II) CALCULATION
OF
LOST 
WAGES.—Lost wages shall be cal-
culated based on the wage rate and 
work scheduled that prevailed prior to 
termination. The individual shall be 
compensated for wages lost beginning 
on the first scheduled work day after 
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employment was terminated and end-
ing 180 days after completion of the 
judicial review described in this para-
graph or the day after the individual 
is reinstated or obtains employment 
elsewhere, whichever occurs first. 
‘‘(G) 
LIMITATION
ON
USE
OF
THE 
VERIFICATION SYSTEM AND ANY RELATED SYS-
TEMS.—Notwithstanding any other provision of 
law, nothing in this paragraph shall be con-
strued to permit or allow any department, bu-
reau, or other agency of the United States Gov-
ernment to utilize any information, database, or 
other records assembled under this paragraph 
for any other purpose other than as provided 
for. 
‘‘(H) LIMITATION
ON
COLLECTION
AND 
USE OF DATA.— 
‘‘(i) LIMITATION ON COLLECTION OF 
DATA.— 
‘‘(I) IN GENERAL.—The System 
shall collect and maintain only the 
minimum data necessary to facilitate 
the successful operation of the Sys-
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tem, and in no case shall the data be 
other than— 
‘‘(aa) information necessary 
to register employers under para-
graph (7)(D)(iv); 
‘‘(bb) information necessary 
to initiate and respond to inquir-
ies or contests under subpara-
graph (E); 
‘‘(cc) information necessary 
to establish and enforce compli-
ance with paragraph (7)(D)(iv) 
and subparagraph (E); 
‘‘(dd) information necessary 
to detect and prevent employ-
ment related identity fraud; and 
‘‘(ee) such other information 
the Secretary determines is nec-
essary, subject to a 180 day no-
tice and comment period in the 
Federal Register. 
‘‘(II) PENALTIES.—Any officer, 
employee, or contractor who willfully 
and knowingly collects and maintains 
data in the system other than data 
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described in clause (i) shall be guilty 
of a misdemeanor and fined not more 
than $1,000 for each violation. 
‘‘(ii) LIMITATION ON USE OF DATA.— 
Whoever willfully and knowingly accesses, 
discloses, or uses any information obtained 
or maintained by the system— 
‘‘(I) for the purpose of commit-
ting identity fraud, or assisting an-
other person in committing identity 
fraud, as defined in section 1028 of 
title 18, United States Code; 
‘‘(II) for the purpose of unlaw-
fully obtaining employment in the 
United States or unlawfully obtaining 
employment in the United States for 
any other person; or 
‘‘(III) for any purpose other than 
as provided for under any provision of 
law; 
shall be guilty of a felony and upon convic-
tion shall be fined under title 18, United 
States Code, or imprisoned for not less 
than 5 years, or both. 
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‘‘(iii) 
EXCEPTIONS.—Nothing 
in 
clauses (i) or (ii) may be construed to limit 
the collection, maintenance, or use of data 
by the Commissioner of Internal Revenue 
or the Commissioner of Social Security as 
provided by law.’’. 
SEC. 
4. 
EXPANSION 
OF 
EMPLOYMENT 
ELIGIBILITY 
VERIFICATION 
SYSTEM 
TO 
PREVIOUSLY 
HIRED INDIVIDUALS AND RECRUITING AND 
REFERRING. 
(a) APPLICATION
TO
RECRUITING
AND
REFER-
RING.—Section 274A of the Immigration and Nationality 
Act (8 U.S.C. 1324a) is amended— 
(1) in subsection (a)(1)(A), by striking ‘‘for a 
fee’’; 
(2) in subsection (a)(1), by amending subpara-
graph (B) to read as follows: 
‘‘(B) to hire, continue to employ, or to re-
cruit or refer for employment in the United 
States an individual without complying with the 
requirements of subsection (b).’’; 
(3) in subsection (a)(2), by striking ‘‘after hir-
ing an alien for employment in accordance with 
paragraph (1),’’ and inserting ‘‘after complying with 
paragraph (1),’’; and 
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(4) in subsection (a)(3), as amended by section 
3, is further amended by striking ‘‘hiring,’’ and in-
serting ‘‘hiring, employing,’’ each place it appears. 
(b) EMPLOYMENT ELIGIBILITY VERIFICATION FOR 
PREVIOUSLY HIRED INDIVIDUALS.—Section 274A(b) of 
such Act (8 U.S.C. 1324a(b)), as amended by section 2(a), 
is further amended by adding at the end the following: 
‘‘(8) 
USE
OF
EMPLOYMENT
ELIGIBILITY 
VERIFICATION SYSTEM FOR PREVIOUSLY HIRED IN-
DIVIDUALS.— 
‘‘(A) ON A VOLUNTARY BASIS.—Beginning 
on the date that is 2 years after the date of the 
enactment of the Electronic Employment Eligi-
bility Verification and Illegal Immigration Con-
trol Act and until the date specified in subpara-
graph (B)(iii), a person or entity may make an 
inquiry, as provided in paragraph (7), using the 
verification system to seek verification of the 
identity and employment eligibility of any indi-
vidual employed by the person or entity, as long 
as it is done on a nondiscriminatory basis. 
‘‘(B) ON A MANDATORY BASIS.— 
‘‘(i) A person or entity described in 
clause (ii) must make an inquiry as pro-
vided 
in 
paragraph 
(7), 
using 
the 
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verification system to seek verification of 
the identity and employment eligibility of 
all individuals employed by the person or 
entity who have not been previously subject 
to an inquiry by the person or entity by 
the date 3 years after the date of enact-
ment of the Electronic Employment Eligi-
bility Verification and Illegal Immigration 
Control Act. 
‘‘(ii) A person or entity is described in 
this clause if it is a Federal, State, or local 
governmental body (including the Armed 
Forces of the United States), or if it em-
ploys individuals working in a location that 
is a Federal, State, or local government 
building, a military base, a nuclear energy 
site, a weapon site, an airport, or that con-
tains critical infrastructure (as defined in 
section 1016(e) of the Critical Infrastruc-
ture Protection Act of 2001 (42 U.S.C. 
5195c(e))), but only to the extent of such 
individuals. 
‘‘(iii) All persons and entities other 
than those described in clause (ii) must 
make an inquiry, as provided in paragraph 
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(7), using the verification system to seek 
verification of the identity and employment 
eligibility of all individuals employed by the 
person or entity who have not been pre-
viously subject to an inquiry by the person 
or entity by the date 6 years after the date 
of enactment of the Electronic Employ-
ment Eligibility Verification and Illegal 
Immigration Control Act.’’. 
SEC. 5. BASIC PILOT PROGRAM. 
Section 401(b) of the Illegal Immigration Reform and 
Immigrant Responsibility Act of 1996 (8 U.S.C. 1324a 
note) is amended by striking ‘‘at the end of the 11-year 
period beginning on the first day the pilot program is in 
effect’’ and inserting ‘‘2 years after the enactment of the 
Electronic Employment Eligibility Verification and Illegal 
Immigration Control Act’’. 
SEC. 6. HIRING HALLS. 
Section 274A(h) of the Immigration and Nationality 
Act (8 U.S.C. 1324a(h)) is amended by adding at the end 
the following: 
‘‘(4) RECRUITMENT AND REFERRAL.—As used 
in this section, the term ‘refer’ means the act of 
sending or directing a person or transmitting docu-
mentation or information to another, directly or in-
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directly, with the intent of obtaining employment in 
the United States for such person. Generally, only 
persons or entities referring for remuneration 
(whether on a retainer or contingency basis) are in-
cluded in the definition. However, labor service agen-
cies, whether public, private, for-profit, or nonprofit, 
that refer, dispatch, or otherwise facilitate the hiring 
of workers for any period of time by a third party 
are included in the definition whether or not they re-
ceive remuneration. As used in this section the term 
‘recruit’ means the act of soliciting a person, directly 
or indirectly, and referring the person to another 
with the intent of obtaining employment for that 
person. Generally, only persons or entities recruiting 
for remunerations (whether on a retainer or contin-
gency basis) are included in the definition. However, 
labor service agencies, whether public, private, for- 
profit, or nonprofit that refer, dispatch, or otherwise 
facilitate the hiring of workers for any period of 
time by a third party are included in the definition 
whether or not they receive remuneration.’’. 
SEC. 7. PENALTIES. 
Section 274A of the Immigration and Nationality Act 
(8 U.S.C. 1324a) is amended— 
(1) in subsection (e)(4)— 
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(A) in subparagraph (A), in the matter be-
fore clause (i), by inserting ‘‘, subject to para-
graphs (10) through (12),’’ after ‘‘in an 
amount’’; 
(B) in subparagraph (A)(i), by striking 
‘‘not less than $250 and not more than 
$2,000’’ and inserting ‘‘not less than $5,000 
and not more than $15,000’’; 
(C) in subparagraph (A)(ii), by striking 
‘‘not less than $2,000 and not more than 
$5,000’’ and inserting ‘‘not less than $10,000 
and not more than $15,000’’; 
(D) in subparagraph (A)(iii), by striking 
‘‘not less than $3,000 and not more than 
$10,000’’ and inserting ‘‘not less than $25,000 
and not more than $40,000’’; and 
(E) by amending subparagraph (B) to read 
as follows: 
‘‘(B) may require the person or entity to 
take such other remedial action as is appro-
priate.’’; 
(2) in subsection (e)(5)— 
(A) by inserting ‘‘, subject to paragraphs 
(10) through (12),’’ after ‘‘in an amount’’; 
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(B) by striking ‘‘$100’’ and inserting 
‘‘$1,000’’; 
(C) by striking ‘‘$1,000’’ and inserting 
‘‘$25,000’’; 
(D) by striking ‘‘the size of the business of 
the employer being charged, the good faith of 
the employer’’ and inserting ‘‘the good faith of 
the employer being charged’’; and 
(E) by adding at the end the following sen-
tence: ‘‘Failure by a person or entity to utilize 
the employment eligibility verification system as 
required by law, or providing information to the 
system that the person or entity knows or rea-
sonably believes to be false, shall be treated as 
a violation of subsection (a)(1)(A).’’; 
(3) by adding at the end of subsection (e) the 
following new paragraphs: 
‘‘(10) MITIGATION OF CIVIL MONEY PENALTIES 
FOR SMALLER EMPLOYERS.—In the case of imposi-
tion of a civil penalty under paragraph (4)(A) with 
respect to a violation of subsection (a)(1)(A) or 
(a)(2) for hiring or continuation of employment by 
an employer and in the case of imposition of a civil 
penalty under paragraph (5) for a violation of sub-
section (a)(1)(B) for hiring by an employer, the dol-
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lar amounts otherwise specified in the respective 
paragraph shall be reduced as follows: 
‘‘(A) In the case of an employer with an 
average of fewer than 26 full-time equivalent 
employees (as defined by the Secretary of 
Homeland Security), the amounts shall be re-
duced by 60 percent. 
‘‘(B) In the case of an employer with an 
average of at least 26, but fewer than 101, full- 
time equivalent employees (as so defined), the 
amounts shall be reduced by 40 percent. 
‘‘(C) In the case of an employer with an 
average of at least 101, but fewer than 251, 
full-time equivalent employees (as so defined), 
the amounts shall be reduced by 20 percent. 
The last sentence of paragraph (4) shall apply under 
this paragraph in the same manner as it applies 
under such paragraph. 
‘‘(11) EXEMPTION FROM PENALTY FOR INITIAL 
GOOD FAITH VIOLATION.—In the case of imposition 
of a civil penalty under paragraph (4)(A) with re-
spect to a violation of subsection (a)(1)(A) or (a)(2) 
for hiring or continuation of employment or recruit-
ment or referral by person or entity and in the case 
of imposition of a civil penalty under paragraph (5) 
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for a violation of subsection (a)(1)(B) for hiring or 
recruitment or referral by a person or entity, the 
penalty otherwise imposed shall be waived if the vio-
lator establishes that it was the first such violation 
of such provision by the violator and the violator 
acted in good faith. 
‘‘(12) SAFE
HARBOR
FOR
CONTRACTORS.—A 
person or other entity shall be liable for a penalty 
under paragraph (4)(A) with respect to the violation 
of subsection (a)(1)(A), (a)(1)(B), or (a)(2) with re-
spect to the hiring or continuation of employment of 
an unauthorized alien by a subcontractor of that 
person or entity unless the person or entity verifies 
through the employment eligibility verification sys-
tem that all subcontractor employees and entities 
participating in the subcontracted employment are 
eligible for employment prior to beginning employ-
ment for the contracting person or entity. A con-
tracting person or entity shall not be required to 
verify a subcontractor if the contracting person or 
entity has previously verified the employment eligi-
bility of that subcontractor. A contracting person or 
entity shall not be required to verify the employment 
eligibility of a subcontractor employee if the person 
or entity has previously verified the subcontractor 
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employee as a result of the subcontractor employee’s 
previous employment on behalf of the person or enti-
ty as an employee of the subcontractor.’’; 
(4) by amending paragraph (1) of subsection (f) 
to read as follows: 
‘‘(1) CRIMINAL PENALTY.—Any person or enti-
ty which engages in a pattern or practice of viola-
tions of subsection (a)(1) or (2) shall be fined not 
more than $50,000 for each unauthorized alien with 
respect to which such a violation occurs, imprisoned 
for not less than 1 year, or both, notwithstanding 
the provisions of any other Federal law relating to 
fine levels.’’; 
(5) in subsection (f)(2), by striking ‘‘Attorney 
General’’ each place it appears and inserting ‘‘Sec-
retary of Homeland Security’’; 
(6) by redesignating subsection (h) as sub-
section (j); 
(7) by inserting after subsection (g) the fol-
lowing: 
‘‘(h) PROHIBITION
ON AWARD
OF GOVERNMENT 
CONTRACTS, GRANTS AND AGREEMENTS.— 
‘‘(1) 
EMPLOYERS
WITH
NO
CONTRACTS, 
GRANTS, OR AGREEMENTS.— 
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‘‘(A) IN GENERAL.—If an employer who 
does not hold a Federal contract, grant, or co-
operative agreement is determined by the Sec-
retary to be a repeat violator of this section or 
is convicted of a crime under this section, the 
employer shall be debarred from the receipt of 
a Federal contract, grant, or cooperative agree-
ment for a period of 5 years. The Secretary or 
the Attorney General shall advise the Adminis-
trator of General Services of such a debarment, 
and the Administrator of General Services shall 
list the employer on the List of Parties Ex-
cluded from Federal Procurement and Non-
procurement Programs for a period of 5 years. 
‘‘(B) WAIVER.—The Administrator of Gen-
eral Services, in consultation with the Secretary 
and the Attorney General, may waive operation 
of this subsection or may limit the duration or 
scope of the debarment. 
‘‘(2) EMPLOYERS
WITH
CONTRACTS, GRANTS, 
OR AGREEMENTS.—An employer who holds a Fed-
eral contract, grant, or cooperative agreement and is 
determined by the Secretary to be a repeat violator 
of this section or is convicted of a crime under this 
section, shall be debarred from the receipt of new 
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Federal contracts, grants, or cooperative agreements 
for a period of 5 years. 
‘‘(i) PENALTY FOR FALSE ATTESTATION BY EM-
PLOYEE.—An individual who falsely represents that the 
individual is eligible for employment in the United States 
in an attestation required by this shall, for each such viola-
tion, be subject to a fine of not less than $5,000, a term 
of imprisonment not to exceed 3 years, or both.’’; and 
(8) by inserting after subsection (j) (as so re-
designated) the following: 
‘‘(k) SPECIAL
CRIMINAL
PENALTIES
FOR
SUB-
CONTRACTORS
AND LABOR BROKERS.—Any person or 
subcontracting entity which engages in a pattern or prac-
tice of violations of subsection (a)(1)(A) or (a)(2) shall 
be fined not less than $100,000 for each unauthorized 
alien with respect to whom such a violation occurs, impris-
oned for not less than 5 years for the entire pattern or 
practice, or both, notwithstanding the provisions of any 
other law relating to fine levels.’’. 
SEC. 8. COMPENSATION FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury a separate account to be known as the ‘‘Employ-
ment Verification Compensation Fund’’ (in this section re-
ferred to as the ‘‘Fund’’). 
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(b) TRANSFERS TO THE FUND.—There shall be de-
posited in the Fund all fines and penalties collected under 
section 274A of the Immigration and Nationality Act (8 
U.S.C. 1324a). 
(c) EXPENDITURES.—Subject to appropriations Acts, 
amounts in the Fund shall be available for compensation 
pursuant to subparagraphs (E) and (F) of section 
274A(b)(3) of the Immigration and Nationality Act (8 
U.S.C. 1324a(b)(3)), as amended by section 3 of this Act. 
SEC. 9. CONTRACTOR DATABASE AND AUDITS. 
(a) DATABASE.—The Department of Homeland Se-
curity shall create and maintain a publicly available and 
accessible online database of contracting and subcon-
tracting individuals or entities which discloses the number 
of employment eligibility violations and employment eligi-
bility verification rejections each contracting or subcon-
tracting individual or entity has received. The database 
shall also disclose the total number of verification at-
tempts each contracting or subcontracting individual or 
entity has made. 
(b) AUDIT.—The Department of Homeland Security 
shall audit and investigate any contracting or subcon-
tracting individual or entity which has a 10% or greater 
employment verification rejection rate. 
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