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— 
‘‘(I) a final verification notice or 
final nonverification notice is issued 
through the system; or 
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‘‘(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 
States for a temporary period, during 
such period. 
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‘‘(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 
the individual. Such employer shall provide 
to the Secretary any information relating 
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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 
under clause (i) results in verification of 
an individual’s eligibility to work in the 
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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. 
‘‘(II) CALCULATION
OF
LOST 
WAGES.—Lost wages shall be cal-
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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 
established under section 8 and shall not 
be provided from appropriated funds. 
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‘‘(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-
dicial review, the Secretary shall file a cer-
tified copy of the administrative record 
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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 
employment was terminated and end-
ing 180 days after completion of the 
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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-
tem, and in no case shall the data be 
other than— 
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‘‘(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 
described in clause (i) shall be guilty 
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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. 
‘‘(iii) 
EXCEPTIONS.—Nothing 
in 
clauses (i) or (ii) may be construed to limit 
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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 ‘‘on September 30, 2012’’ 
and inserting ‘‘2 years after the enactment of the Elec-
tronic Employment Eligibility Verification and Illegal Im-
migration 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-
directly, with the intent of obtaining employment in 
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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 Secretary of Homeland Secu-
rity shall create and maintain a publicly available and ac-
cessible online database of contracting and subcontracting 
individuals or entities which discloses the number of em-
ployment eligibility violations and employment eligibility 
verification rejections each contracting or subcontracting 
individual or entity has received. The database shall also 
disclose the total number of verification attempts each 
contracting or subcontracting individual or entity has 
made. 
(b) AUDIT.—The Secretary 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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SEC. 10. REPORT ON SOCIAL SECURITY CARD-BASED EM-
PLOYMENT ELIGIBILITY VERIFICATION. 
(a) REPORT.— 
(1) IN
GENERAL.—Not later than 9 months 
after the date of the enactment of this Act, the 
Commissioner of Social Security, in consultation 
with the Secretary of Treasury, the Secretary of 
Homeland Security, and the Attorney General, shall 
submit a report to the Congress that includes an 
evaluation of the following requirements and 
changes: 
(A) A requirement that Social Security 
cards that are made of a durable plastic or 
similar material and that include an encrypted, 
machine-readable electronic identification strip 
and a digital photograph of the individual to 
whom the card is issued, be issued to each indi-
vidual (whether or not a United States citizen) 
who— 
(i) is authorized to be employed in the 
United States; 
(ii) is seeking employment in the 
United States; and 
(iii) files an application for such card, 
whether as a replacement of an existing 
Social Security card or as a card issued in 
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connection with the issuance of a new So-
cial Security account number. 
(B) The creation of a unified database to 
be maintained by the Department of Homeland 
Security and comprised of data from the Social 
Security Administration and the Department of 
Homeland Security specifying the work author-
ization of individuals (including both United 
States citizens and noncitizens) for the purpose 
of 
conducting 
employment 
eligibility 
verification. 
(C) A requirement that all employers verify 
the employment eligibility of all new hires using 
the Social Security cards described in subpara-
graph (A) and a phone, electronic card-reading, 
or other mechanism to seek verification of em-
ployment eligibility through the use of the uni-
fied database described in subparagraph (B). 
(2) ITEMS INCLUDED IN REPORT.—The report 
under paragraph (1) shall include an evaluation of 
each of the following: 
(A) Projected cost, including the cost to 
the Federal Government, State and local gov-
ernments, and the private sector. 
(B) Administrability. 
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(C) Potential effects on— 
(i) employers; 
(ii) employees, including employees 
who are United States citizens as well as 
those that are not citizens; 
(iii) tax revenue; and 
(iv) privacy. 
(D) The extent to which employer and em-
ployee compliance with immigration laws would 
be expected to improve. 
(E) Any other relevant information. 
(3) ALTERNATIVES.—The report under para-
graph (1) also shall examine any alternatives to 
achieve the same goals as the requirements and 
changes described in paragraph (1) but that involve 
lesser cost, lesser burden on those affected, or great-
er ease of administration. 
(b) INSPECTOR GENERAL REVIEW.—Not later than 
3 months after the report is submitted under subsection 
(a), the Inspector General of the Social Security Adminis-
tration, in consultation with the Inspectors General of the 
Department of Treasury, the Department of Homeland 
Security, and the Department of Justice, shall send to the 
Congress an evaluation of such report. 
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(c) CONGRESSIONAL CONSIDERATION.—Upon receipt 
of the Inspector General’s evaluation of the Commissioner 
of Social Security’s report, the Congress shall consider leg-
islation enacting a plan that best meets both the objectives 
outlined in this section as well as ease and feasibility of 
implementation based on the reports presented by the 
Commissioner of Social Security and the Inspector Gen-
eral. 
SEC. 11. EFFECTIVE DATE. 
This Act and the amendments made by this Act shall 
take effect on the date of enactment of this Act, except 
that the requirements of persons and entities to comply 
with the employment eligibility verification process shall 
take effect on the date that is 2 years after such date. 
SEC. 12. LIMITATION ON VERIFICATION RESPONSIBILITIES 
OF COMMISSIONER OF SOCIAL SECURITY. 
The Commissioner of Social Security is authorized to 
perform activities with respect to carrying out the Com-
missioner’s responsibilities in this Act or the amendments 
made by this Act, but only to the extent (except for the 
purpose of carrying out section 8) the Secretary of Home-
land Security has provided, in advance, funds to cover the 
Commissioner’s full costs in carrying out such responsibil-
ities. In no case shall funds from the Federal Old-Age and 
Survivors Insurance Trust Fund or the Federal Disability 
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Insurance Trust Fund be used to carry out such respon-
sibilities. 
SEC. 13. REPORT ON IMPACT ON CONTRACTING AND SUB-
CONTRACTING INDIVIDUALS AND ENTITIES. 
Not later than 12 months after the date of the enact-
ment of this Act, the Secretary of Homeland Security shall 
submit a report to the Congress that determines whether 
the described employment eligibility verification system 
permits contracting individuals and entities to determine 
the eligibility of subcontracting individuals or entities 
without unduly burdening contractors and without freeing 
subcontracting individuals or entities to break employment 
laws. 
SEC. 
14. 
REPORT 
ON 
EMPLOYMENT 
ELIGIBILITY 
VERIFICATION SYSTEM. 
Not later than 1 year after the implementation of the 
employment eligibility verification system established 
under this Act, and 1 year thereafter, the Secretary of 
Homeland Security shall submit to the Congress a report 
on the progress and problems associated with implementa-
tion of the system, including information relating to the 
most efficient use of the system by small businesses. 
Æ 
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